# EDGAR Filing Document

**Accession Number:** 0001921865
**File Stem:** 0001193125-26-232658
**Filing Date:** 2026-5
**Character Count:** 1128678
**Document Hash:** bfe5ad273452d1ad1038ad1d90b9e0a4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-232658.hdr.sgml**: 20260520

**ACCESSION NUMBER**: 0001193125-26-232658

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 164

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260520

**DATE AS OF CHANGE**: 20260520

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ASP Isotopes Inc.
- **CENTRAL INDEX KEY:** 0001921865
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS CHEMICAL PRODUCTS [2890]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 872618235
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41555
- **FILM NUMBER:** 261004384

**BUSINESS ADDRESS:**
- **STREET 1:** 2200 ROSS AVENUE, SUITE 4575E
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201
- **BUSINESS PHONE:** 202-756-2245

**MAIL ADDRESS:**
- **STREET 1:** 2200 ROSS AVENUE, SUITE 4575E
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75201

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **March 31,** 2026

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from __________________ to __________________**

**Commission File Number:** 001-41555

---

| |
|:---|
| ASP Isotopes Inc. |
| **(Exact Name of Registrant as Specified in its Charter)** |

---

<u>Delaware</u>   <u>87-2618235</u> <br> (State or other jurisdiction ofincorporation or organization) (I.R.S. EmployerIdentification No.)

---

| | |
|:---|:---|
| 2200 Ross Avenue <br>Suite 4575E<br>Dallas**,** TX | 75201 |
| (Address of principal executive offices) | (Zip Code) |

---

**Registrant's telephone number, including area code: <u>(</u>**214**<u>)</u>** 432-8219

**<u>Not Applicable</u>**

(Former name, former address and former fiscal year, if changed since last report)

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.01per share | ASPI | The Nasdaq Stock Market LLC |

---

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

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

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

---

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

---

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

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

As of May 20, 2026, the registrant had 125,903,447 shares of common stock, $0.01 par value per share, outstanding.

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **PART I.** | [<u>FINANCIAL INFORMATION</u>](#part_i) | 5 |
| Item 1. | [<u>Financial Statements (Unaudited)</u>](#item1_financial_statements) | 5 |
|  | [<u>Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025</u>](#balance_sheets) | 5 |
|  | [<u>Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Month Periods ended March 31, 2026 and 2025</u>](#comp_loss) | 6 |
|  | [<u>Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Month Periods ended March 31, 2026 and 2025</u>](#equity) | 7 |
|  | [<u>Condensed Consolidated Statements of Cash Flows for the Three Month Periods ended March 31, 2026 and 2025</u>](#cash_flow) | 8 |
|  | [<u>Notes to Unaudited Condensed Consolidated Financial Statements</u>](#notes_unaudited_condensed_consolidated_f) | 10 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | 36 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_and_qualitative) | 46 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_and_procedures) | 46 |
| **PART II.** | [<u>OTHER INFORMATION</u>](#part_ii) | 47 |
| Item 1. | [<u>Legal Proceedings</u>](#item_1) | 47 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a) | 47 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2) | 47 |
| Item 3. | [<u>Defaults Upon Senior Securities</u>](#item_3) | 47 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4) | 47 |
| Item 5. | [<u>Other Information</u>](#item_5) | 47 |
| Item 6. | [<u>Exhibits</u>](#item_6) | 48 |
| [<u>Signatures</u>](#signature) | [<u>Signatures</u>](#signature) | 50 |

---

------

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as "may," "should," "would," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described in the section titled "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to achieve or sustain positive cash flows from operations or profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to complete the construction of, commission and successfully operate isotope enrichment plants and Phase 2 of the Virginia Gas Project in a cost-effective manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to meet, and to continue to meet, applicable regulatory requirements for the use of the isotopes we may produce using the ASP technology or the QE technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain regulatory approvals for the enrichment of uranium and the production and distribution of other isotopes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to comply on an ongoing basis with the numerous regulatory requirements applicable to the ASP technology, the QE technology and our enrichment facilities in South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to execute on various projects and strategic initiatives with potential customers and partners, including our initiative to commence enrichment of uranium in South Africa and to complete development of Phase 2 of the Virginia Gas Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success or profitability of our future offtake arrangements with respect to various isotopes that we may produce using ASP technology or the QE technology or with respect to helium or liquified natural gas ("LNG") we may produce at the Virginia Gas Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a failure of demand for various isotopes that we may produce using ASP technology or the QE technology or for helium or LNG we produce at the Virginia Gas Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our future capital requirements and sources and uses of cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain funding for our operations and future growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the extensive costs, time and uncertainty associated with new technology development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to implement and maintain effective internal controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•developments and projections relating to our competitors and industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability to recognize the anticipated benefits of acquisitions and investments, including our acquisition of Renergen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•problems with the performance of the ASP technology or the QE technology in the enrichment of isotopes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our dependence on a limited number of third-party suppliers for certain components and our inability to obtain third-party providers or contractors to conduct our operations, including with respect to the development of Phase 2 of the Virginia Gas Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to adapt to changing technology and diagnostic landscapes, such as the emergence of new diagnostic scanners or tracers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expected dependence on a limited number of key customers for isotopes that we may produce using ASP technology or the QE technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to protect our intellectual property and the risk of claims asserting that we have infringed on the intellectual property of others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to compete effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the current economic environment, including any future economic downturn, the impact of inflation or tariffs, disruptions in financial credit and other disruptions resulting from geo-political events such as the Russian invasion of Ukraine, conflicts in the Middle East, including the United States-Israel-Iran war, and trade tensions between the U.S. and China;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fluctuations in the market price and demand for LNG, helium and other natural gases and the drivers of such fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our international operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our credit counterparty risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in applicable laws or regulations, including alteration, suspension or cancellation of our Exploration Rights and Production Right in South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to manage commodity risks;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the highly speculative nature of Renergen's exploration projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to adequately protect our technology infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to hire or retain skilled employees and the loss of any of our key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•operational risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs and other risks associated with being a reporting company and being subject to the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to complete the listing of Quantum Leap Energy as a standalone public company within the anticipated timeframe or at all; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other factors that are described in "Risk Factors," on page 47.

These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those set forth in Part I, Item 1A - "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 (as amended), and other reports that we filed with the SEC. Any forward-looking statement in this Quarterly Report on Form 10-Q reflects our current view with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, industry, and future growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

This Quarterly Report on Form 10-Q also contains estimates, projections, and other information concerning our industry, our business, and the potential markets for certain isotopes and for helium and LNG, including data regarding the estimated size of those respective markets, their respective projected growth rates, and, in the case of our isotope enrichment platform, the incidence of certain medical conditions. Information that is based on estimates, forecasts, projections, or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained these industry, business, market, and other data from reports, research surveys, studies, and similar data prepared by third parties, industry, medical and general publications, government data, and similar sources. In some cases, we do not expressly refer to the sources from which these data are derived.

**Note Regarding Company References**

Unless the context otherwise requires, references to the "Company," "our Company," "ASPI," "we," "us" and "our" refer to ASP Isotopes Inc. and its direct and indirect subsidiaries; references to "ASP Isotopes" refer to ASP Isotopes Inc. and not to any of its subsidiaries; references to "QLE" refer to Quantum Leap Energy, LLC; references to "Renergen" refer to Renergen Limited, a public corporation incorporated in 2014 and existing under the South African Companies Act 71 of 2008, as amended, together with its subsidiaries unless the context dictates otherwise; references to "Tetra4" refer to Tetra4 Proprietary Limited; references to "Skyline" refer to Skyline Builders Group Holding Limited, together with its subsidiaries. The terms "dollar," "USD" or "$" refer to U.S. dollars, and the terms "R," "ZAR" or "rand" refer to the South African rand.

**Trademarks**

All trademarks, service marks, and trade names included in this Quarterly Report on Form 10-Q are the property of their respective owners. Solely for convenience, the trademarks and trade names in this report may be referred to without the® and™ symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto.

------

**PART I-FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**ASP Isotopes Inc.**

**Condensed Consolidated Balance Sheets (unaudited)**

**(in thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025 \*** |
| **Assets** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $207346 | $279572 |
| Short-term investments | 83170 | 47745 |
| Restricted cash | 2766 |  |
| Accounts receivable | 2393 | 1078 |
| Inventories | 1369 | 1098 |
| Note receivable |  | 32005 |
| Deferred offering costs | 2964 | 1782 |
| Prepaid expenses and other current assets | 8732 | 4949 |
| Current assets of discontinued operations |  | 31690 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 308740 | 399919 |
| Property and equipment, net | 91795 | 33291 |
| Natural gas properties | 130222 |  |
| Operating lease right-of-use assets, net | 2868 | 1464 |
| Deferred tax assets | 72 |  |
| Intangible assets | 675 | 409 |
| Goodwill | 6394 | 5177 |
| Lease receivable - noncurrent | 3908 | 426 |
| Restricted cash | 1632 |  |
| Equity method investments | 24855 |  |
| Other investments | 15580 | 5580 |
| Other noncurrent assets | 928 | 866 |
| Noncurrent assets of discontinued operations |  | 50888 |
| **Total assets** | $**587669** | $**498020** |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $6868 | $3814 |
| Accrued expenses | 7897 | 4414 |
| Debt - current | 53265 | 584 |
| Finance lease liabilities – current | 165 | 167 |
| Operating lease liabilities – current | 789 | 544 |
| Deferred revenue | 882 | 882 |
| Other current liabilities | 501 | 501 |
| Current liabilities of discontinued operations |  | 21790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 70367 | 32696 |
| Deferred tax liabilities | 5980 |  |
| Convertible notes payable, at fair value | 199891 | 199323 |
| Debt - noncurrent | 5060 | 1471 |
| Finance lease liabilities – noncurrent | 413 | 471 |
| Operating lease liabilities – noncurrent | 2254 | 1059 |
| Deferred revenue - noncurrent | 820 |  |
| Other noncurrent liabilities | 3867 |  |
| Noncurrent liabilities of discontinued operations |  | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 288652 | 235122 |
| Commitments and contingencies (Note 11) |  |  |
| **Stockholders' equity** |  |  |
| Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued<br> and outstanding as of March 31, 2026 and December 31, 2025 |  |  |
| Common stock, $0.01 par value; 500,000,000 shares authorized, 125,947,771 shares issued and 125,903,447 shares outstanding as of March 31, 2026 and 111,677,771 shares issued and outstanding as of December 31, 2025 | 1259 | 1117 |
| Treasury stock at cost |  |  |
| Additional paid-in capital | 528924 | 431757 |
| Accumulated deficit | (238523) | (231265) |
| Accumulated other comprehensive (loss) income | (2659) | 2542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity attributed to ASP Isotopes Inc. stockholders | 289001 | 204151 |
| Noncontrolling interests in consolidated subsidiaries | 10016 | 58747 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 299017 | 262898 |
| **Total liabilities and stockholders' equity** | $**587669** | $**498020** |

---

\* Reclassified to reflect discontinued operations presentation.

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**ASP Isotopes Inc.**

**Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)**

**(in thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Product revenue | $3980 | $1102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Collaboration revenue | 200 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 4180 | 1102 |
| Cost of revenue | 2514 | 775 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 1666 | 327 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 5263 | 1530 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 21291 | 6749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 26554 | 8279 |
| **Loss from operations** | (24888) | (7952) |
| **Other (expense) income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange transaction loss | (3725) | (61) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of share liability |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes payable | (568) | (957) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of equity investments | 1126 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 3047 | 513 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1729) | (87) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (1849) | (580) |
| Loss before income tax benefit | (26737) | (8532) |
| Income tax benefit | 31 | 71 |
| Net loss from continuing operations | (26706) | (8461) |
| Income from discontinued operations, net of taxes | 19585 |  |
| Net loss | (7121) | (8461) |
| Less: Net loss attributable to noncontrolling interests | (243) | (15) |
| **Net loss attributable to ASP Isotopes Inc. shareholders** | $**(6878)** | $**(8446)** |
| **Net (loss) income per share, basic and diluted** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**(0.22)** | $**(0.12)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $**0.16** | $**—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Attributable to ASP Isotopes Inc. shareholders | $**(0.06)** | $**(0.12)** |
| **Weighted average shares of common stock outstanding,<br> basic and diluted** | **121000699** | **69484200** |
| **Comprehensive loss:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss before allocation to noncontrolling interests | $(7121) | $(8461) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation | (6808) | 1171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification to earnings | 1496 |  |
| Total comprehensive loss before allocation to noncontrolling interests | (12433) | (7290) |
| Less: Comprehensive loss attributable to noncontrolling interests | (302) | (1) |
| **Total comprehensive loss** | $**(12131)** | $**(7289)** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**ASP Isotopes Inc.**

**Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited)**

**(in thousands, except share and per share amounts)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Treasury** | **Treasury** | **Additional <br>Paid-in** | **Accumulated<br>Other<br>Comprehensive** | **Accumulated** | **Noncontrolling** | **Total Stockholders'** |
|  | **Shares** | **Amount** | **Shares** | **Stock** | **Capital** | **(Loss) Income** | **Deficit** | **Interests** | **Equity** |
| **Balance as of December 31, 2025** | **111677771** | $**1117** | **—** | $**—** | $**431757** | $**2542** | $**(231265)** | $**58747** | $**262898** |
| Issuance of common stock to acquire Renergen | 14270000 | 142 |  |  | 92755 |  |  |  | 92897 |
| Forfeiture of restricted common stock | (44324) |  | 44324 |  |  |  |  |  |  |
| Stock-based compensation expense |  |  |  |  | 4412 |  |  |  | 4412 |
| Deconsolidation of subsidiary |  |  |  |  |  | (9) |  | (86774) | (86783) |
| Fair value of noncontrolling interest at acquisition of Numed |  |  |  |  |  |  |  | 597 | 597 |
| Fair value of noncontrolling interest at acquisition of Renergen |  |  |  |  |  |  |  | 7276 | 7276 |
| Distribution to noncontrolling interest of Renergen |  |  |  |  |  |  | (380) |  | (380) |
| Contributions from noncontrolling interest |  |  |  |  |  |  |  | 26960 | 26960 |
| Distribution to noncontrolling interest of VIE |  |  |  |  |  |  |  | (257) | (257) |
| Foreign currency translation |  |  |  |  |  | (6688) |  | 429 | (6259) |
| Reclassification to earnings |  |  |  |  |  | 1496 | (1496) |  |  |
| Net loss - continuing operations |  |  |  |  |  |  | (26463) | (243) | (26706) |
| Gain on deconsolidation |  |  |  |  |  |  | 20832 |  | 20832 |
| Net income - discontinued operations |  |  |  |  |  |  | 249 | 3281 | 3530 |
| **Balance as of March 31, 2026** | **125903447** | $**1259** | **44324** | $**—** | $**528924** | $**(2659)** | $**(238523)** | $**10016** | $**299017** |
| **Balance as of December 31, 2024** | **72068059** | $**721** | **—** | $**—** | $**105515** | $**(2164)** | $**(56173)** | $**3268** | 51167 |
| Stock-based compensation expense |  |  |  |  | 1890 |  |  |  | 1890 |
| Distribution to noncontrolling interest of VIE |  |  |  |  |  |  |  | (38) | (38) |
| Foreign currency translation |  |  |  |  |  | 1171 |  |  | 1171 |
| Net loss |  |  |  |  |  |  | (8446) | (15) | (8461) |
| **Balance as of March 31, 2025** | **72068059** | $**721** | **—** | $**—** | $**107405** | $**(993)** | $**(64619)** | $**3215** | $**45729** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**ASP Isotopes Inc.**

**Condensed Consolidated Statements of Cash Flows (unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| **Cash flows from Operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(7121) | $(8461) |
| **Adjustments to reconcile net loss to cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from discontinued operations | (249) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange transaction loss from intercompany | 3607 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3057 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on deconsolidation | (19336) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non cash interest expense on debt | 2541 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 4412 | 1890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued for non-cash consultant expense |  | 247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of share liability |  | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes payable | 568 | 957 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of equity investments | (1126) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in right-of-use lease asset | 3293 | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease income | (62) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes | (76) | (81) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities, net of acquisition amounts:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (800) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable from noncontrolling interest |  | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (208) | (273) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (739) | 1190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent assets | (89) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (162) | 1072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (1172) | 720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (3251) | (60) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (112) | (769) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 386 | - |
| **Net cash used in operating activities – continuing operations** | (16639) | (3170) |
| Cash used for operating activities – discontinued operations | (1121) |  |
| **Net cash used in operating activities** | (17760) | (3170) |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (6137) | (2309) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of short-term investments | (35425) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal collections from lease receivable | 159 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash advance paid for property and equipment |  | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of equity investments | (10000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash received for acquisition of business, net of cash paid | 4919 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash disposed of upon deconsolidation of subsidiary | (50699) |  |
| **Net cash used in investing activities – continuing operations** | (97183) | (2359) |
| **Net cash used in investing activities** | (97183) | (2359) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of deferred issuance costs | (267) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from collection of receivable from noncontrolling interest in VIE |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest in VIE | (257) | (38) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest of Renergen | (380) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of debt | 53 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of principal portion of debt | (1823) | (252) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of principal portion of finance leases | (44) | (10) |
| **Net cash used in financing activities – continuing operations** | (2718) | (225) |
| Cash provided by financing activities – discontinued operations | 45886 |  |
| **Net cash provided by (used in) financing activities** | 43168 | (225) |
| **Net change in cash, cash equivalents and restricted cash** | (71775) | (5754) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2044) | (170) |
| Cash, cash equivalents and restricted cash - beginning of period | 285563 | 61890 |
| **Cash, cash equivalents and restricted cash - end of period** | $**211744** | $**55966** |
| **Components of cash, cash equivalents, and restricted cash** |  |  |
| Cash and cash equivalents | $207346 | $55966 |
| Restricted cash | 4398 |  |
| Total cash, cash equivalents, and restricted cash | $**211744** | $**55966** |

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The accompanying notes are an integral part of these condensed consolidated financial statements.

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**ASP Isotopes Inc.**

**Condensed Consolidated Statements of Cash Flows (unaudited)**

**(in thousands)**

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| | | |
|:---|:---|:---|
| **Supplemental disclosures of non-cash investing and financing activities:** |  |  |
| Derecognition of asset as a result of sales-type lease | $1689 | $— |
| Unpaid financing fees | $915 | $— |
| Lease receivable | $1689 | $— |
| Purchase of property and equipment included in accounts payable | $1358 | $466 |
| Purchase of property and equipment with bank loans | $53 | $47080 |
| Right-of-use asset obtained in exchange for operating lease liability | $1673 | $— |
| Right-of-use asset obtained in exchange for finance lease liability | $341 | $— |
| Common stock issued in acquisition of Renergen | $92897 | $— |
| Contingent consideration for acquisition of Numed | $358 | $— |

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The accompanying notes are an integral part of these condensed consolidated financial statements.

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**ASP Isotopes Inc.**

**Notes to Unaudited Condensed Consolidated Financial Statements**

**1. Organization**

***Description of Business***

ASP Isotopes Inc. was incorporated in the state of Delaware on September 13, 2021 and has its headquarters in Dallas, Texas. ASP Isotopes Inc., its subsidiaries and ASP Rentals are collectively referred to as "the Company" throughout these consolidated financial statements.

The Company is an advanced materials company dedicated to the development of a differentiated isotope enrichment platform to strengthen global supply chain access to critical materials used in nuclear medicine, next-generation semiconductors, and nuclear energy. Our proprietary enrichment technologies, the Aerodynamic Separation Process ("ASP technology") and Quantum Enrichment technology ("QE technology"), are designed to enable the production of isotopes for a range of industrial and advanced technology applications. Our initial focus is on the production and commercialization of enriched Carbon-14 ("C-14"), Silicon-28 ("Si-28") and Ytterbium-176 ("Yb-176").

The Company commenced commercial production of enriched isotopes at both of its ASP enrichment facilities located in Pretoria, South Africa during the first half of 2025. However, we have not generated any revenue from the sale of our enriched isotopes as of March 31, 2026. The Company's first ASP enrichment facility is designed to enrich light isotopes, such as C-14 and C-12. The second ASP enrichment facility, which is substantially larger than the first, should have the potential to enrich kilogram quantities of relatively heavier isotopes, including but not limited to Si-28. Depending on the timing and the quality of the feedstock received from our customer, the Company is targeting initial commercial shipments of enriched C-14 in the third quarter of 2026. The Company is targeting initial commercial shipments of enriched Si-28 around mid-year 2026. The Company has also completed the commissioning phase of its third enrichment facility, a QE technology facility, which is the Company's first laser-based enrichment plant. The Company is targeting initial commercial shipments of Yb-176 in the third quarter of 2026.

In addition, the Company has started planning additional isotope enrichment plants both in South Africa and in other jurisdictions, including Iceland and the United States. The Company believes the C-14 it may produce using the ASP technology could be used in the development of new pharmaceuticals and agrochemicals. The Company believes the Si-28 we may produce using the ASP technology may be used to create advanced semiconductors and in quantum computing. The Company believes the Yb-176 it may produce using the QE technology may be used to create radiotherapeutics that treat various forms of oncology. The Company is considering the future development of the ASP technology for the separation of Zinc-68 and Xenon-129/136 for potential use in the healthcare end market, Germanium 70/72/74 for potential use in the semiconductor end market, and Chlorine -37 for potential use in the nuclear energy end market. The Company is also considering the future development of QE technology for the separation of Nickel-64, Gadolinium-160, Ytterbium-171, Lithium-6 and Lithium-7.

Quantum Leap Energy LLC ("QLE"), the Company's subsidiary, is currently pursuing an initiative to apply its enrichment technologies to the enrichment of Uranium-235 ("U-235") in South Africa. The Company believes that the U-235 QLE may produce has the potential to be commercialized as a nuclear fuel component for use in the new generation of high-assay low-enriched uranium ("HALEU")-fueled small modular reactors that are now under development for commercial and government uses. In furtherance of the Company's uranium enrichment initiative, in October 2024, the Company entered into a term sheet with TerraPower, LLC ("TerraPower") which contemplates the parties entering into definitive agreements pursuant to which TerraPower would provide funding for the construction of a HALEU production facility and agree to purchase all HALEU produced at the facility over a 10-year period after the planned completion of the facility in 2027. In addition, in November 2024, the Company entered into a memorandum of understanding with The South African Nuclear Energy Corporation ("Necsa"), a South African state-owned company responsible for undertaking and promoting research and development in the field of nuclear energy and radiation sciences, to collaborate on the research, development and ultimately the commercial production of advanced nuclear fuels. As part of the collaboration contemplated by the MOU with Necsa, QLE's South African subsidiary has entered into a Pre-Implementation Services Contract Agreement ("Services Contract") with Necsa, pursuant to which Necsa has agreed to provide to QLE's South African subsidiary certain facilities, infrastructure, utilities and services related to the siting, design, construction, commission and operation of an enrichment facility on the Necsa site in Pelindaba. See the section captioned "TerraPower" below (Note 13) for disclosures regarding certain definitive agreements entered into between TerraPower and us and/or the Company's subsidiaries, including a term loan subject to conditions to support construction of a new uranium enrichment facility at Pelindaba, South Africa and supply agreements for the future supply of HALEU to TerraPower, as a customer.

QLE acquired a controlling interest in Skyline in August 2025. Skyline is a holding company, and its operations are conducted through its wholly owned operating subsidiaries, Kin Chiu Engineering Limited and Kin Chiu Development Company Limited. Operations primarily consist of construction activities which include public civil engineering works, such as road and drainage works, in Hong Kong. Skyline mostly undertakes civil engineering works in the role as a subcontractor but is fully qualified to undertake such works in the capacity of a main contractor. QLE intends to pursue opportunities to acquire assets in the critical materials supply chain.

QLE entered into the Securities Exchange Agreement (the "Exchange Agreement") with a third party, effective as of March 29, 2026, which resulted in the deconsolidation of Skyline (Note 21). QLE retained approximately 8.6% percent of the outstanding Class A ordinary and preferred shares of Skyline immediately following deconsolidation.

The Company acquired Renergen in January 2026. Renergen is South Africa's leading onshore natural gas explorer and the first integrated producer of both liquid helium and LNG, both of which are produced from the natural gas reserve base that underpins Renergen's natural gas development project (the "Virginia Gas Project"). The Virginia Gas Project includes (i) the liquefaction of natural gas into LNG, (ii) the separation of helium from natural gas, and (iii) the further liquefaction of helium into 99.999% pure liquid helium. This liquefaction and separation takes place at Renergen's natural gas processing plant in the Free State Province of South Africa. The Company is targeting to start the liquefaction of helium process in the second half of 2026. Renergen's principal asset is its 94.5% equity ownership in Tetra4, which holds an onshore petroleum production right and is the entity developing and operating the Virginia Gas Project.

***Liquidity***

The Company has incurred net losses and negative cash flows from operating activities since its inception. The Company incurred net losses from continuing operations of $26.7 million and $8.5 million for the three months ended March 31, 2026 and 2025, respectively. The Company currently expects that its cash and cash equivalents of $207.3 million and short-term investments of

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$83.2 million as of March 31, 2026, will be sufficient to fund its operating expenses and capital requirements for more than 12 months from the date the financial statements are issued.

There can be no assurance that the Company will achieve or sustain positive cash flows from operations or profitability. The Company anticipates it will need to continue to raise capital through additional equity and/or debt financings and/or collaborative development agreements to fund its operations. However, such funding may not be available on a timely basis on terms acceptable to the Company, or at all. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may be required to scale back or discontinue the advancement of product candidates, reduce headcount, reorganize, merge with another entity, or cease operations.

**2. Basis of Presentation and Summary of Significant Accounting Policies**

***Unaudited Financial Information***

The Company's unaudited condensed consolidated financial statements included herein have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. In the Company's opinion, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the financial position and results of operations for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2025.

***Basis of Presentation and Use of Estimates***

The Company's condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of the Company's condensed consolidated financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and disclosure in the Company's condensed consolidated financial statements and accompanying notes. The most significant estimates in the Company's consolidated financial statements relate to stock-based compensation, fair value of convertible notes, equity and other investments, gas reserves, provisions for environmental rehabilitation, loss contingencies and the accounting for acquisitions, including goodwill. Although these estimates are based on the Company's knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions.

The Company has reclassified certain prior-year amounts to conform to the current-year's presentation. The accounting requirements for reporting the separation of Skyline as a discontinued operation were met when the deconsolidation was completed on March 29, 2026. Accordingly, the historical results of Skyline are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. Refer to Note 21, "Discontinued Operations," for additional information.

***Principles of consolidation***

The Company's condensed consolidated financial statements include the accounts of ASP Isotopes Inc., its wholly-owned subsidiaries, the 80% owned Enlightened Isotopes (PTY) Ltd ("Enlightened Isotopes"), the 60% owned Numed Diagnostics, LLC ("Numed"), the 51% owned PET Labs Pharmaceuticals Proprietary Limited ("PET Labs"), the 94.5% owned Tetra4, and the 42% owned VIE ASP Rentals Proprietary Limited ("ASP Rentals"). All intercompany balances and transactions have been eliminated in consolidation.

***Currency and currency translation***

The condensed consolidated financial statements are presented in U.S. dollars, the Company's reporting currency. The functional currency of ASP Isotopes Inc. and ASP Guernsey is the U.S. dollar. The functional currency of the Company's subsidiaries ASP South Africa, Quantum Leap Energy South Africa and Renergen is the South African Rand. The functional currency of the 80% owned Enlighted Isotopes, the 51% owned PET Labs and the 42% owned VIE ASP Rentals is the South African Rand. The functional currency of the previously consolidated Skyline Builders Group Holding Limited ("Skyline") is the Hong Kong Dollar. Adjustments that arise from exchange rate changes on transactions of each group entity denominated in a currency other than the functional currency are included in other income and expense in the consolidated statements of operations and comprehensive loss. Assets and liabilities of the entities with functional currency of South African Rand or Hong Kong Dollar are recorded in South African Rand or Hong Kong Dollar, respectively, and translated into the U.S. dollar reporting currency of the Company at the exchange rate on the balance sheet date. Revenue and expenses of the entities with functional currency of South African Rand or Hong Kong Dollar are recorded in South African Rand or Hong Kong Dollar, respectively, and translated into the U.S. dollar reporting currency of the Company at the average exchange rate prevailing during the reporting period. Resulting translation adjustments are recorded separately in stockholders' equity as a component of accumulated other comprehensive (loss) income.

***Concentration of Credit Risk and other Risks***

Cash balances are maintained at U.S. financial institutions and may exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit of $250,000 per depositor, per insured bank for each account ownership category. Although the Company currently believes that the financial institutions with whom it does business will be able to fulfill their commitments to the Company, there is no assurance that those institutions will be able to continue to do so. The Company has not experienced any credit losses associated with its balances in such accounts for the three months ended March 31, 2026 and 2025.

The Company's foreign subsidiaries held cash of approximately $4.9 million and $9.6 million as of March 31, 2026 and December 31, 2025, respectively, which is included in cash and cash equivalents on the condensed consolidated balance sheets. The Company's strategic plan does not require the repatriation of foreign cash in order to fund its operations in the U.S., and it is the Company's current intention to indefinitely reinvest its foreign cash outside of the U.S. If the Company were to repatriate foreign cash to the U.S., the Company would be required to accrue and pay U.S. taxes in accordance with applicable U.S. tax rules and regulations as a result of the repatriation.

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The Company is potentially subject to concentrations of credit risk in accounts receivable as the following customer balances exceed 10% of accounts receivable in the consolidated balance sheets as March 31, 2026 and December 31, 2025 (in thousands).

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of March 31, 2026** | **As of March 31, 2026** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Accounts Receivable** | **% of Total Accounts Receivable** | **Accounts Receivable** | **% of Total Accounts Receivable** |
| Customer A | $273 | 11% | $— |  |

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Although the Company is directly affected by the financial condition of its customers, management does not believe significant credit risks existed as of March 31, 2026. Generally, the Company does not require customer to post collateral or other securities to support our associated accounts receivable.

There was one customer in the Helium and LNG segment representing $0.6 million, or 15%, of the Company's consolidated revenues for the three months ended March 31, 2026. No customers represented over 10% of the Company's consolidated revenues for the three months ended March 31, 2025.

***Cash and Cash Equivalents***

The Company considers all highly liquid investments with original maturities at the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value and may include money market funds, U.S. Treasury and U.S. government-sponsored agency securities, corporate debt, commercial paper and certificates of deposit. The Company had cash equivalents totaling $200.1 million and $267.4 million as of March 31, 2026 and December 31, 2025, respectively.

***Short-term Investments***

The Company maintains its short-term investments in U.S. treasury and U.S. government-sponsored agency securities and has classified them as held-to-maturity at the time of purchase. Held-to-maturity purchases are those securities in which the Company has the ability and intent to hold until maturity. Held-to-maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity security using a straight-line method.

***Restricted Cash***

Restricted cash represents cash balances that are legally or contractually restricted as to withdrawal or use. Restricted cash is classified as current or noncurrent on the condensed consolidated balance sheet based on the nature and expected timing of the underlying restriction. Amounts classified as restricted cash are excluded from cash and cash equivalents and are disclosed separately on the balance sheet. As of March 31, 2026, the Company had current restricted cash of $1.6 million related to reserving six months of payments to fulfill obligations under the DFC Credit Facility (defined below) and $1.2 million related to reserving six months of payments to fulfill obligations under the IDC Loan (defined below). Refer note 9, "Debt," for additional information. As of March 31, 2026, the Company had noncurrent restricted cash of $1.1 million related to Renergen's obligation to manage the negative environmental impact associated with its operational activities and $0.5 million related to electricity payments and early termination guaranties with a public utility company.

***Fair Value of Financial Instruments***

Accounting guidance defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company's convertible notes payable (Note 9) is measured as a Level 3 fair value on a recurring basis.

***Equity Method and Other Investments***

The Company accounts for investments in entities over which it has significant influence, but not control, using the equity method of accounting in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures ("ASC 323"). Significant influence is generally presumed when the Company owns 20% to 50% of the voting interests in the investee, unless other factors indicate otherwise.

Under the equity method, the Company has elected to initially record the investment at fair value and subsequently adjusts the carrying amount to reflect its share of the investee's earnings or losses, which are recognized in the consolidated statements of income. Dividends received from equity method investees reduce the carrying amount of the investment. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Alternatively, the Company may elect to utilize the fair value option. The Company's equity method investments include the Company's investment in Skyline utilizing the fair value option.

The Company also holds investments in equity securities without readily determinable fair values. These investments are accounted for under the measurement alternative in accordance with ASC Topic 321, Investments - Equity Securities ("ASC 321"), which allows the Company to record the investments at cost, less impairments, plus or minus observable price changes in orderly transactions for the identical or similar investment. The Company's investments recorded at cost include IsoBio, Inc. ("IsoBio") and Opeongo, Inc. ("Opeongo").

If the Company determines that an impairment is other-than-temporary, it recognizes a loss equal to the difference between the

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investment's carrying amount and its fair value. Equity method investments and investments at cost are included in "Equity method investments" and "Other investments", respectively, on the consolidated balance sheet.

***Accounts Receivable***

Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for expected credit losses is estimated for those accounts receivable considered to be uncollectible based upon historical experience and management's evaluation of outstanding accounts receivable. The Company maintains an allowance for expected credit losses for accounts receivable, which is recorded as an offset to accounts receivable, and changes in such are classified as selling, general and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for expected credit losses, the Company considers historical collectability based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information and current market conditions. Bad debts are written off against the allowance when identified. As of March 31, 2026 and December 31, 2025 there was no allowance for expected credit losses.

***Prepaid Expenses and Other Current Assets***

Prepaid expenses and other current assets primarily consist of amounts paid in advance for goods and services that will be consumed within twelve months. These assets are recorded at historical cost and expensed in the period in which the related benefits are realized. Prepaid expenses and other current assets mainly compromised the prepayment for advertising, insurance, deposits, and advance payments to subcontractors. The Company reviews prepaid expenses and other current assets for impairment or non-recoverability at each reporting date.

***Inventories***

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in, first out inventory method. Inventory cost includes materials, labor, and applicable overhead incurred in bringing the inventories to their present location and condition. Net realizable value represents the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are primarily located in facilities in South Africa and are not pledged as collateral for any debt arrangements

The components of inventories as of March 31, 2026 and December 31, 2025 were as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Raw material | $650 | $484 |
| Work in process | 594 | 614 |
| Finished goods | 125 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventories | $1369 | $1098 |

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No significant write-downs to net realizable value or reversals of write-downs occurred in the three months ended March 31, 2026 and 2025.

***Property and Equipment***

Property and equipment include costs of assets constructed, purchased or leased under a finance lease, related delivery and installation costs and interest incurred on significant capital projects during their construction periods. Expenditures for renewals and betterments also are capitalized, but expenditures for normal repairs and maintenance are expensed as incurred. Costs associated with yearly planned major maintenance are generally deferred and amortized over 12 months or until the same major maintenance activities must be repeated, whichever is shorter. The cost and accumulated depreciation applicable to assets retired or sold are removed from the respective accounts, and gains or losses thereon are included in the statement of operations and comprehensive loss.

The Company assigns the useful lives of its property and equipment based upon its internal engineering estimates, which are reviewed periodically. The estimated useful lives of the Company's property and equipment range from 3 to 10 years, or the shorter of the useful life or remaining life of the lease for leasehold improvements. Depreciation for all assets other than Renergen's gas exploration and gas gathering assets is recorded using the straight-line method. Depreciation for Renergen's gas exploration and gas gathering assets is recorded using the units of production method.

Construction in progress (Note 6) is carried at cost and consists of specifically identifiable direct and indirect development and construction costs. While under construction, costs of the property are included in construction in progress until the property is placed in service, at which time costs are transferred to the appropriate property and equipment account, including, but not limited to, leasehold improvements or other such accounts.

***Business Combination and Asset Acquisitions*** 

The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs, which would meet the requirements of a business. If determined to be a business combination, the Company accounts for the transaction under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations ("ASC 805"), which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, and non-controlling interest in the acquiree based on the fair value estimates as of the date of acquisition. In accordance with ASC 805, the Company recognizes and measures goodwill as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets acquired.

The consideration for the Company's business acquisitions may include future payments that are contingent upon the occurrence of a particular event or events. The obligations for such contingent consideration payments are recorded at fair value on the acquisition

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date. The contingent consideration obligations are then evaluated each reporting period. Changes in the fair value of contingent consideration, other than changes due to payments, are recognized as a gain or loss and recorded within change in the fair value of deferred and contingent consideration liabilities in the consolidated statements of comprehensive loss.

If determined to be an asset acquisition, the Company accounts for the transaction under ASC 805-50, which requires the acquiring entity in an asset acquisition to recognize assets acquired and liabilities assumed based on the cost to the acquiring entity on a relative fair value basis, which includes transaction costs in addition to consideration given. No gain or loss is recognized as of the date of acquisition unless the fair value of non-cash assets given as consideration differs from the assets' carrying amounts on the acquiring entity's books. Consideration transferred that is non-cash will be measured based on either the cost (which shall be measured based on the fair value of the consideration given) or the fair value of the assets acquired and liabilities assumed, whichever is more reliably measurable. Goodwill is not recognized in an asset acquisition and any excess consideration transferred over the fair value of the net assets acquired is allocated to the identifiable assets based on relative fair values.

Contingent consideration payments in asset acquisitions are recognized when the contingency is resolved and the consideration is paid or becomes payable (unless the contingent consideration meets the definition of a derivative, in which case the amount becomes part of the basis in the asset acquired). Upon recognition of the contingent consideration payment, the amount is included in the cost of the acquired asset or group of assets.

***Goodwill and Identifiable Intangible Assets***

Goodwill represents the amount of consideration paid in excess of the fair value of net assets acquired as a result of the Company's business acquisitions accounted for using the acquisition method of accounting. Identifiable intangible assets recognized in conjunction with acquisitions are recorded at fair value. Significant unobservable inputs are used to determine the fair value of the identifiable intangible assets based on the income approach valuation model, whereby the present worth and anticipated future benefits of the identifiable intangible assets are discounted back to their net present value.

Goodwill and identifiable intangible assets with indefinite lives are not amortized and are subject to impairment testing at a reporting unit level on an annual basis or when a triggering event occurs that may indicate the carrying value of the goodwill or identifiable intangible assets are impaired. An entity is permitted to first assess qualitative factors to determine if a quantitative impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. The Company performs its annual test for goodwill or identifiable intangible assets as of October 31.

Identifiable intangible assets with definite lives are amortized over their estimated useful lives, ranging from 2 to 5 years. The Company's intangible assets include trademarks and customer-related intangible assets related to the East Coast Nuclear Pharmacy ("ECNP") and Numed acquisitions. The Company uses the straight-line method of amortization for identifiable intangible assets with definite lives.

***Natural Gas Producing Activities***

Effective January 6, 2026, the Company consolidates Renergen Limited and its subsidiaries, including Tetra4 Proprietary Limited, which holds South Africa's first onshore petroleum production right. The Company's natural gas producing activities are located entirely in South Africa (Free State Province). The Company follows the successful efforts method of accounting for its natural gas producing activities. Under this method, property acquisition costs and development costs are capitalized when incurred and depleted on a units-of-production basis over the remaining life of proved reserves and proved developed reserves, respectively. Unproved reserve assets and the related costs are transferred to proved reserve assets when proved reserves are found, or otherwise attributed to, the property.

The Company initially capitalizes exploratory well costs pending a determination whether proved reserves have been found. If proved reserves are found, costs remain capitalized; if no proved reserves are found or a well is uneconomic, costs are charged to expense. Other exploration costs, including geological and geophysical costs, are expensed as incurred. Costs to operate and maintain wells and field equipment are expensed as incurred.

Proved reserve assets and proved developed assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, in accordance with ASC 360, *Property, Plant and Equipment*. As of March 31, 2026, no impairment indicators were identified with respect to the Renergen's proved properties.

The Company performs periodic assessments of unproved properties for impairment and recognizes a loss at the time of impairment. In determining whether an unproved property is impaired, the Company considers numerous factors including, but not limited to, current development and exploration drilling plans, favorable or unfavorable exploration activity on adjacent lands, and in-house geologists' evaluation of the reservoir. As of March 31, 2026, no impairment indicators were identified with respect to the Renergen's unproved properties.

***Variable Interest Entities***

The Company accounts for the investments it makes in certain legal entities in which equity investors do not have (1) sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support, or (2) as a group, the holders of the equity investment at risk do not have either the power, through voting or similar rights, to direct the activities of the legal entity that most significantly impact the entity's economic performance, or (3) the obligation to absorb the expected losses of the legal entity or the right to receive expected residual returns of the legal entity. These certain legal entities are referred to as variable interest entities ("VIEs").

The Company would consolidate the results of any such entity in which it determined that it had a controlling financial interest. The Company would have a "controlling financial interest" in such an entity if the Company had both the power to direct the activities that most significantly affect the VIE's economic performance and the obligation to absorb the losses of, or right to receive benefits from, the VIE that could be potentially significant to the VIE. On a quarterly basis, the Company will reassess whether it has a controlling financial interest in any investments it has in these certain legal entities.

***Leases***

Leases are accounted for in accordance with ASC Topic 842, *Leases* ("ASC 842"). The Company enters into lease arrangements both as lessee and a lessor for office, laboratories and production facilities, vehicles and equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on specific facts and circumstances, the existence of an identified asset(s), if any, and the Company's control over the use of the identified asset(s), if applicable.

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*Lessee arrangements*

Operating lease liabilities and their corresponding right-of-use ("ROU") assets are recorded based on the present value of future lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company will utilize the incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment, and considering the region in which the ROU asset and liabilities are located.

The Company has elected to combine lease and non-lease components as a single component. Operating leases are recognized on the balance sheet as ROU lease assets, lease liabilities current and lease liabilities non-current. Fixed rents are included in the calculation of the lease balances, while variable costs paid for certain operating and pass-through costs are excluded. Lease expense is recognized over the expected term on a straight-line basis.

Finance leases are recognized on the balance sheet as property and equipment, finance lease liabilities current and finance lease liabilities non-current. Finance lease ROU assets and the related lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The finance lease ROU assets are amortized on a straight-line basis over the lease term with the related interest expense of the lease liability payment recognized over the lease term using the effective interest method.

*Lessor arrangements*

For leases where the Company retains ownership of the underlying asset, the Company classifies the lease as an operating lease. Lease revenue is recognized on a straight-line basis and the associated asset is depreciated.

When control of the underlying asset is transferred to the lessee, the Company classifies the lease as sales-type lease. The Company derecognizes the asset, recognizes a net investment in the lease, and recognizes selling profit and interest income over the lease term. This classification applies if certain criteria are met, including transfer of ownership, a purchase option, a lease term covering a major part of the asset's life, the present value of payments covering substantially all of the asset's fair value, or the asset being specialized.

For all other leases that do not meet the sales-type criteria and meet conditions related to the sum of payments/residual value covering substantially all of the asset's fair value and the lessor's likelihood of collecting payments, the Company classifies as direct financing leases. Similar to sales-type leases, the Company recognizes a net investment. Selling profit is recognized as interest income using the effective interest method.

***Impairment of Long-lived Assets***

Long-lived assets consist primarily of property and equipment. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset is not recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the assets. The Company did not recognize any impairment losses for the three months ended March 31, 2026 or 2025.

***Convertible Notes Payable***

Convertible notes payable are accounted for in accordance with ASC Topic 825, *Financial Instruments* ("ASC 825"). Upon issuance the Company has elected the fair value option to account for the convertible notes payable. Changes in fair value during the reporting period are recognized in other income (expense) in the consolidated statement of operations and comprehensive loss.

***Asset Retirement Obligations***

The Company accounts for legal obligations associated with the retirement of its natural gas properties in accordance with ASC 410-20, Asset Retirement and Environmental Obligations. An asset retirement obligation ("ARO") is recognized at fair value in the period in which it is incurred and when a reasonable estimate of fair value can be made. Upon initial recognition, the fair value of the ARO is capitalized as part of the carrying amount of the related long-lived asset (the "rehabilitation asset") and included in property and equipment, net, in the condensed consolidated balance sheets.

The ARO is measured at the present value of estimated future cash flows required to satisfy the retirement obligation, discounted at a credit-adjusted risk-free rate that reflects current market assessments of the time value of money and the risks specific to the liability. In subsequent periods, the liability is increased for the passage of time through accretion expense, which is recognized within cost of revenue. Revisions to the timing or amount of estimated future cash flows result in an adjustment to both the carrying amount of the ARO liability and the related rehabilitation asset.

The Company has production and exploration rights on land in South Africa. A rehabilitation obligation of ZAR 60.1 million ($3.5 million) has been recognized in other noncurrent liabilities with respect to the retirement of the Virginia Gas Project assets as of March 31, 2026. This obligation encompasses costs estimated to be incurred to address the following: disturbed infrastructure areas; existing production wells and all exploration wells; general surface rehabilitation; monitoring; and latent/residual environmental risk related to resealing wells.

The ARO was recognized at fair value on the acquisition date discounted at a pre-tax rate of 9.51% per annum, reflecting South African market conditions as of January 6, 2026. The capitalized ARO asset of $2.5 million (included in property and equipment, net) is depreciated on a basis consistent with the unit-of-production depletion of the underlying proved properties.

***Revenue Recognition***

The Company recognizes revenue in accordance with Accounting Standard Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to

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the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer.

The Company evaluates a transaction's performance obligations to determine if promised goods or services in a contract to transfer a distinct good or service to the customer and are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers whether the goods or services are integral or dependent to other goods or services in the contract. The Company determines the transaction price based on the agreed government rates for the promised goods in the contract. The consideration is recognized as revenue when control is transferred for the related goods.

The Company enters into revenue generating transactions with certain customers that include payment for delivery of nuclear medical doses from its radiopharmacies in South Africa and the U.S. for PET and SPECT scanning. Revenue from its radiopharmacies is recognized upon delivery.

In January 2026, the Company acquired Renergen (Note 14). Renergen explores, produces and sells LNG in South Africa. Revenue from the sale of LNG is recognized upon delivery to the specified destination agreed to in the contract.

When consideration is received from a customer prior to transferring goods or services to the customer under the terms of long-term LNG contracts, a token liability is recorded. The Company classifies these token liabilities within "Deferred revenue - noncurrent" on the Company's condensed consolidated balance sheets since they have no expiration date. Token contract liabilities are recognized as revenue after control of the goods and services is transferred to the customer and all revenue recognition criteria have been met. The token liability was $0.8 million as of March 31, 2026.

***Research and Development Costs***

Research and development costs consist primarily of fees paid to consultants, license fees and facilities costs. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received rather than when the payment is made. All research and development costs are expensed as incurred.

***Acquired in-process research and development***

The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, including transaction costs. In an asset acquisition, the cost allocated to acquire in-process research and development ("IPR&D") with no alternative future use is charged to expense at the acquisition date.

***Selling, General and Administrative Costs***

Selling, general and administrative expenses consist primarily of salaries and related benefits, including stock-based compensation expense, related to the Company's executive, finance, business development, legal, human resources and support functions. Other general and administrative expenses include professional fees for auditing, tax, consulting and patent-related services, rent and utilities and insurance.

***Stock-based Compensation Expense***

Stock-based compensation expense represents the cost of the grant date fair value of employee stock awards recognized over the requisite service period of the awards (usually the vesting period) on a straight-line basis. The Company estimates the fair value of each stock-based award on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions, such as the value of the underlying common stock, the risk-free interest rate, expected volatility, expected dividend yield, and expected life of the options. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur.

The Company also awards restricted stock to employees and directors. Restricted stock is generally subject to forfeiture if employment terminates prior to the completion of the vesting restrictions. The Company expenses the cost of the restricted stock, which is determined to be the fair market value of the shares of common stock underlying the restricted stock at the date of grant, ratably over the period during which the vesting restrictions lapse.

Stock-based compensation expense is classified in the condensed consolidated statements of operations and comprehensive loss in the same manner in which the award recipients' payroll costs are classified or in which the award recipients' service payments are classified.

***Income Taxes***

Deferred income tax assets and liabilities arise from temporary differences associated with differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company records the provision for income taxes for the activity from PET Labs, ECNP, Numed and Renergen's operations.

The Company follows the provisions of ASC Topic 740-10, *Uncertainty in Income Taxes* ("ASC 740-10"). The Company has not recognized a liability for any uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits and penalties in income tax expense.

The Company has identified the United States, South Africa and Guernsey as its major tax jurisdictions. Refer to Note 19 for further details.

***Comprehensive Loss***

Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company's comprehensive loss is comprised of net loss and the effect of currency translation adjustments.

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***Related Parties***

Parties, either an entity or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence, such as a family member or relative, shareholder, or a related corporation

***Recently Adopted Accounting Pronouncements***

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05") and is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted. ASU 2025-05 provides a practical expedient that allows entities to assume that conditions existing at the balance sheet date will remain unchanged over the remaining life of current accounts receivable and contract assets arising from revenue transactions under ASC 606. Additionally, entities other than public business entities that elect the practical expedient may also make an accounting policy election to consider subsequent collection activity occurring after the balance sheet date when estimating expected credit losses. The adoption of this standard did not have a material effect on the consolidated financial results.

***Recently Issued Accounting Pronouncements***

The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any recently issued pronouncements to have a material impact on its results of operations or financial position.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03") and is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. ASU 2024-03 requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The Company is still assessing the impact of adopting this standard.

In August 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans ("ASU 2024-08") and is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years with early adoption permitted. ASU 2025-08 clarifies the accounting for purchased loans under the current expected credit loss (CECL) model, including guidance on recognizing and measuring expected credit losses and presentation of related amounts. The Company is still assessing the impact of adopting this standard.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06") and is effective January 1, 2028 with early adoption permitted. ASU 2025-06 modernizes the accounting for internal use software costs and requires entities to start capitalizing eligible costs when (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. The Company is still assessing the impact of adopting this standard.

**3. Short-term Investments**

A summary of the Company's held-to-maturity investments as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
| U.S. Treasury securities - mature April 2026 | $48191 | $2 | $— | $48193 |
| U.S. Treasury securities - mature September 2026 | 34979 |  | (1) | 34978 |
| Total | $83170 | $2 | $(1) | $83171 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
| U.S. Treasury securities - mature April 2026 | $47745 | $32 | $— | $47777 |
| Total | $47745 | $32 | $— | $47777 |

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There is no allowance for credit losses in short-term investments as of March 31, 2026 and December 31, 2025.

**4. Fair Value Measurements**

The Company classified its U.S. Treasury securities (Note 3) within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs. The Company's convertible notes payable (Note 9) is measured as a Level 3 fair value on a recurring basis and was $199.9 million and $199.3 million as of March 31, 2026 and December 31, 2025, respectively.

The Company holds an equity investment in IsoBio. The Company previously measured the investment at cost because no observable price changes were identified. In October 2025, IsoBio completed a preferred stock financing with unrelated third-party investors. The transaction represented an observable price change for an identical or other similar equity security held by the Company. Accordingly, the Company remeasured the investment to fair value and recorded an unrealized gain of $0.6 million within Other income (expense). The resulting carrying value of the IsoBio investment is $5.6 million as of March 31, 2026 and December 31, 2025. Because the valuation incorporates significant unobservable inputs, the investment is classified as a Level 3 fair value measurement.

The Company holds an equity investment in Opeongo. The Company measured the investment at cost and no observable price changes were identified. The carrying value of the Opeongo investment is $10.0 million as of March 31, 2026. Because the valuation incorporates significant unobservable inputs, the investment is classified as a Level 3 fair value measurement.

The Company holds an equity investment in Skyline. The Company measured the investment under the equity method and recorded the investment at $23.8 million as a result of the deconsolidation of Skyline during the first quarter of 2026. The carrying

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amount was adjusted by $1.1 million for the three months ended March 31, 2026, resulting in a carrying amount of the Skyline investment of $24.9 million as of March 31, 2026. Because the valuation incorporates observable inputs, the investment is classified as a Level 1 fair value measurement.

There were no transfers among Level 1, Level 2 or Level 3 categories in the three months ended March 31, 2026. The carrying amounts of accounts payable, accrued expenses and debt are considered to be representative of their respective fair values because of the short-term nature of those instruments.

A summary of the assets and liabilities that are measured at fair value as of March 31, 2026 and December 31, 2025 is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Carrying Value** | **Quoted Price in Active Markets for Identical Assets (Level 1)** | **Significant Other Observable Inputs (Level 2)** | **Significant Unobservable Inputs (Level 3)** |
| **Assets:** |  |  |  |  |
| U.S. Treasury securities | $83170 | $— | $83170 | $— |
| Other investments (ASC 321) | 40435 | 24855 |  | 15580 |
| Total | $123605 | $24855 | $83170 | $15580 |
| **Liabilities:** |  |  |  |  |
| Convertible notes payable | 199891 |  |  | 199891 |
| Total | $199891 | $— | $— | $199891 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Carrying Value** | **Quoted Price in Active Markets for Identical Assets (Level 1)** | **Significant Other Observable Inputs (Level 2)** | **Significant Unobservable Inputs (Level 3)** |
| **Assets:** |  |  |  |  |
| U.S. Treasury securities | $47745 | $— | $47745 | $— |
| Other investments (ASC 321) | 5580 |  |  | 5580 |
| Total | $53325 | $— | $47745 | $5580 |
| **Liabilities:** |  |  |  |  |
| Convertible notes payable | 199323 |  |  | 199323 |
| Total | $199323 | $— | $— | $199323 |

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The following table provides a reconciliation of the Company's assets and liabilities measured as a Level 3 at fair value on a recurring basis using significant unobservable inputs (in thousands):

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| | |
|:---|:---|
|  | **Convertible <br>Notes Payable** |
| Balance as of December 31, 2024 | $33433 |
| Fair value at issuance | 42171 |
| Fair value adjustment | 123719 |
| Balance as of December 31, 2025 | 199323 |
| Fair value adjustment | 568 |
| Balance as of March 31, 2026 | $199891 |

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**5. Revenue and Segment Information**

In connection with the Company's acquisitions of 51% ownership of PET Labs in October 2023, 100% ownership of ECNP in October 2025 and 60% ownership of Numed in January 2026, the Company manufactures and sells nuclear medical doses for PET scanning in South Africa and the U.S. Beginning in the first quarter of 2026, primarily as a result of the acquisition of Renergen and the deconsolidation of Skyline, the Company has three operating segments: (i) nuclear fuels, (ii) specialist isotopes and related services, and (iii) helium and LNG. The Company's prior "construction services" segment is shown below as "discontinued operations."

The following table presents revenue from continuing operations disaggregated by geography based on the Company's locations (in thousands):

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| | | |
|:---|:---|:---|
|  | **Revenues** | **Revenues** |
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **Segment** | **2026** | **2025** |
| South Africa | $2648 | $1102 |
| United States | 1532 |  |
| Total Revenue | $4180 | $1102 |

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The following table presents changes in the Company's accounts receivable from continuing operations for the three months ended March 31, 2026 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Balance as of<br>December 31,<br>2025** | **Additions** <sup>(a)</sup> | **Deductions** | **Balance as of<br>March 31,<br>2026** |
| Accounts receivable | $1078 | $7355 | $(6040) | $2393 |

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(a)The Company assumed accounts receivable as part of the Numed and Renergen acquisitions totaling $0.2 million and $3.2 million, respectively (Note 14).

***Segment Information***

Beginning in 2024, primarily as a result of increased business activities of its subsidiary, Quantum Leap Energy LLC, the Company had two operating segments: (i) nuclear fuels, and (ii) specialist isotopes and related services. Beginning in August 2025, primarily as a result of the acquisition of Skyline, the Company had three operating segments: (i) nuclear fuels, (ii) specialist isotopes and related services, and (iii) construction services. In January 2026, the Company acquired Renergen, which is an integrated producer of both liquid helium and LNG, which comprises the helium and LNG segment. As mentioned above, in late March 2026, the Company entered into the Exchange Agreement and completed the deconsolidation of Skyline. The Company retained approximately 8.6% of the outstanding Class A ordinary and preferred shares of Skyline immediately following the separation. The accounting requirements for reporting the separation of Skyline as a discontinued operation were met when the separation was completed.

The specialist isotopes and related services segment is focused on research and development of technologies and methods used to separate high-value, low-volume isotopes (such as C-14, Molybdenum-100 ("Mo-100"), Si-28 and Yb-176) for highly specialized target end markets other than advanced nuclear fuels, including pharmaceuticals and agrochemicals, nuclear medical imaging and semiconductors, as well as services related to these isotopes, and this segment includes operations of PET Labs, Numed and ECNP.

The nuclear fuels segment is focused on research and development of technologies and methods used to produce high-assay low-enriched uranium (HALEU) and Lithium-6 for the advanced nuclear fuels target end market, and this segment includes operations of QLE.

The Helium and LNG segment is currently focused on the exploration, production and sale of LNG in South Africa, and this segment includes operations of Renergen.

The Company's chief operating decision maker ("CODM") is its chief executive officer. The segment revenue and segment net loss is regularly reviewed by the CODM in deciding how to allocate resources. The CODM regularly reviews any asset information by operating segment and, accordingly, asset information is reported on a segment basis.

The following table shows total assets by segment and a reconciliation to the condensed consolidated financial statements as of March 31, 2026 and December 31, 2025 (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| **Segment assets:** |  |  |
| Specialist isotopes and related services | $431494 | $321190 |
| Nuclear fuels | 90676 | 94252 |
| Helium and LNG | 65499 |  |
| Discontinued operations |  | 82578 |
| Total assets | $587669 | $498020 |

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Select information from the consolidated statements of operations and comprehensive loss as of the three months ended March 31, 2026 and 2025 is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Revenues** | **Revenues** | **Net Income (Loss) Before <br>Allocation to Noncontrolling Interest** | **Net Income (Loss) Before <br>Allocation to Noncontrolling Interest** |
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **Segment** | **2026** | **2025** | **2026** | **2025** |
| Specialist isotopes and related services | $3386 | $1102 | $(10590) | $(6367) |
| Nuclear fuels | 200 |  | (6113) | (2094) |
| Helium and LNG | 594 |  | (10003) |  |
|  | $4180 | $1102 | $(26706) | $(8461) |

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A reconciliation of total segment revenue to total consolidated revenue and of total segment gross profit and segment operating income to total consolidated income before income taxes, for the three months ended March 31, 2026 and 2025, is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Specialist isotopes and related services** | **Nuclear fuels** | **Helium and LNG** | **Total** |
| Sales from external customers | $3386 | $— | $594 | $3980 |
| Collaboration revenue |  | 200 |  | 200 |
| Less: cost of sales | (1694) |  | (820) | (2514) |
| Segment gross profit | 1692 | 200 | (226) | 1666 |
| Personnel expenses | 7587 | 3248 | 1131 | 11966 |
| Professional fees | 3482 | 2197 | 531 | 6210 |
| Other segment expenses | 5356 | 911 | 2111 | 8378 |
| Segment operating loss | (14733) | (6156) | (3999) | (24888) |
| Foreign exchange transaction loss | (38) | (43) | (3644) | (3725) |
| Change in fair value of investments | 1126 |  |  | 1126 |
| Change in fair value of convertible notes payable | 89 | (657) |  | (568) |
| Interest income (expense), net | 2085 | 744 | (1511) | 1318 |
| Loss before income tax benefit | $(11471) | $(6112) | $(9154) | $(26737) |

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Specialist isotopes and related services** | **Nuclear fuels** | **Total** |
| Sales from external customers | $1102 | $— | $1102 |
| Less: cost of sales | (775) |  | (775) |
| Segment gross profit | 327 |  | 327 |
| Personnel expenses | 3300 | 591 | 3891 |
| Professional fees | 1968 | 376 | 2344 |
| Other segment expenses | 1699 | 345 | 2044 |
| Segment operating loss | (6640) | (1312) | (7952) |
| Foreign exchange transaction loss | (61) |  | (61) |
| Change in fair value of share liability | 12 |  | 12 |
| Change in fair value of convertible notes payable |  | (957) | (957) |
| Interest income, net | 251 | 175 | 426 |
| Loss before income tax expense | $(6438) | $(2094) | $(8532) |

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**6. Property and Equipment**

Property and equipment as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Useful Lives <br>(Years)** | **March 31,<br>2026** | **December 31,<br>2025** |
| Construction in progress |  | $37702 | $4950 |
| Plant and office buildings | 5 - 20 | 94664 | 21291 |
| Land |  | 210 |  |
| Tools, machinery and equipment | 3 - 10 | 8543 | 7869 |
| Computer equipment | 3 - 4 | 621 | 332 |
| Vehicles | 5 | 2304 | 828 |
| Software | 5 | 626 | 613 |
| Office furniture | 5 - 10 | 1118 | 248 |
| Leasehold improvements | Lesser of estimated useful life or the remaining lease term | 192 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, at cost |  | 145980 | 36245 |
| Less accumulated depreciation |  | (54185) | (2954) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net |  | $91795 | $33291 |

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The Company has three isotope enrichment plants in Pretoria, South Africa: a C-14 plant, a multi-isotope plant and a laser isotope separation plant using QE technology. As of March 31, 2026 and December 31, 2025, costs incurred for the multi-isotope plant and the laser isotope separation plant were considered construction in progress because the work was not complete. In conjunction with the acquisition of Renergen, the Company has a helium and LNG Plant in the Free State, South Africa.

Depreciation expense was $2.9 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively. Depreciation expense included as part of inventory costs was $0.4 million for the three months ended March 31, 2026.

Natural gas properties at cost as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Proved reserves | $97871 | $— |
| Wells in process | 1789 |  |
| Developed Assets | 27600 |  |
| Rehabilitation Asset | 3659 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas properties, at cost | 130919 |  |
| Less accumulated depreciation, depletion and amortization | (697) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net capitalized costs | $130222 | $— |

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Natural gas properties are depleted using the unit-of-production method. Acquisition costs (proved reserves) are depleted over total proved reserves; development costs (developed assets) are depleted over proved developed reserves. The useful life of the rehabilitation asset is consistent with the units-of-production depletion of the underlying developed assets. Depletion expense attributable to natural gas properties was $51,000 for the period from January 6, 2026 through March 31, 2026 and is included within the cost of revenue line in the condensed consolidated statements of operations and comprehensive loss.

**7. Prepaid Expenses and Other Current Assets**

Prepaid expenses and other current assets as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Value-added tax refund receivable | $2197 | $763 |
| Insurance | 2914 | 1982 |
| Vendor advances and deposits | 1680 | 1305 |
| Other | 1941 | 899 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total prepaid expenses and other current assets | $8732 | $4949 |

---

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**8. Accrued Expenses**

Accrued expenses as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Salaries and other employee costs | $4340 | $2965 |
| Professional | 2328 | 1262 |
| Other | 1229 | 187 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total accrued expenses | $7897 | $4414 |

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**9. Debt** 

Debt consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| Promissory notes | $805 | $106 |
| Motor vehicle and equipment loans | 2065 | 1949 |
| Credit facility | 23966 |  |
| Secured term loans | 20856 |  |
| Unsecured term loans | 10633 |  |
| Total debt | 58325 | 2055 |
| less current portion of debt | (53265) | (584) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long term portion of debt | $5060 | $1471 |

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Credit facility and term loans contain a repayment on demand clause. Management believes the carrying values of debt outstanding approximates fair value based on the interest rates and scheduled maturities applicable to the outstanding borrowings.

*Promissory Note Payable*

In August 2025, the Company executed a promissory note payable with a finance company to fund a general liability insurance policy for $0.2 million. This note bears interest at an annual rate of 10.0% with twelve monthly payments beginning in August 2025. As of March 31, 2026 and December 31, 2025, this promissory note payable balance was $0.1 million.

The Company assumed a promissory note in connection with the acquisition of Renergen in January 2026 to fund a general liability insurance policy for approximately $1.1 million. This note bears interest at an annual rate of 9.6% with eleven monthly payments beginning in December 2025. As of March 31, 2026, this promissory note payable balance was $0.7 million.

*Motor Vehicle and Equipment Loans*

Periodically, the Company enters into loans to purchase motor vehicles and certain equipment. For the three months ended March 31, 2026, the Company entered into new loans totaling $0.1 million. These loans are secured by the underlying assets included in property and equipment. The loans have variable interest rates ranging from 9.25% to 11.25% and mature from September 2028 to February 2031. Minimum monthly payments total $55,000. For each of the three months ended March 31, 2026 and 2025, interest expense under the outstanding loans was $0.1 million. As of March 31, 2026 and December 31, 2025, motor vehicle and equipment loans totaled $2.1 million and $1.9 million, respectively.

*Credit Facilities*

Renergen's subsidiary Tetra4 entered into a $40.0 million finance agreement with the U.S. International Development Finance Corporation ("DFC"), as successor and assignee of the Overseas Private Investment Corporation ("DFC Credit Facility") on August 20, 2019 (as amended, the "Facility Agreement"). Drawdowns occurred between September 2019 and September 2021. Tetra4 is obligated to repay the loan in equal quarterly installments of $1.1 million on each payment date which began on August 2022 and will end on August 15, 2031. The drawdowns bear interest at rates ranging from 1.24% to 2.11% per annum. The DFC Credit Facility is secured by a pledge of Tetra4's assets, land and the restricted cash accounts disclosed in Note 2. For the period January 6, 2026 through March 31, 2026, interest expense under the DFC Credit Facility was $0.3 million. As of March 31, 2026, the outstanding principal amount of the DFC Credit Facility totaled $24.0 million.

*Secured Term Loans*

Renergen's subsidiary Tetra4 entered into a ZAR 160.7 million loan agreement (the "IDC Loan Agreement") with the Industrial Development Corporation of South Africa Limited ("IDC"), as lender, on December 20, 2021 ("IDC Loan"). A drawdown occurred in December 2021 and is repayable in 102 equal monthly payments which commenced in July 2023. The loan terms included a 12-month interest capitalization and an 18-month capital repayment moratorium. The loan accrues interest at the prime lending rate plus 3.5% and is secured by a pledge of Tetra4's assets, land and the restricted cash disclosed in Note 3. The following financial covenants apply to the IDC Loan: Tetra4 is required to maintain (a) a ratio of all interest bearing Debt to EBITDA of not more than 3.0 to 1; (b) a ratio of Current Assets to Current Liabilities of not less than 1 to 1; (c) a ratio of Cash Flow for the most recently completed four (4) consecutive full fiscal quarters, taken as a single accounting period, to Debt Service for the most recently completed four (4) consecutive full fiscal quarters, taken as a single accounting period, of not less than 1.30 to 1; (d) a ratio of Cash Flow for the most recently completed four (4) fiscal quarters, taken as a single accounting period, to Debt Service for the next succeeding four (4) consecutive full fiscal quarters of not less than 1.3 to 1; and (e) at all times, a Reserve Tail Ratio of not less than 25%.These financial covenants will be measured by Tetra4 on each Calculation Date. Additionally, at all times (f) Tetra4 is required to ensure that the DSRA is funded in an amount equal to, on any given date, a Rand amount equal to the aggregate amount of the sum of all payments of principal, interest and fees made or required to be made by Tetra4 under the IDC Loan Agreement for the immediately succeeding six-month period, to be used as a payment buffer for Tetra4's repayment obligations under and in terms of the IDC Loan Agreement. The IDC Loan Agreement contains negative covenants, which include that Tetra4 shall not make any shareholder dividend distribution, repay any shareholders' loans and/or pay any interest on shareholders' loans or make any payments whatsoever to its shareholders without the IDC's prior written consent if (i) Tetra4 is in breach of any term of the IDC Loan Agreement; or (ii) the making of such payment would result in a breach of any one or more of the financial ratios described above. As of March 31, 2026, Tetra4 was not in compliance with the covenants described in clauses (a)-(d) above which were scheduled to take effect on February 15, 2026 (the most recent Calculation Date). Tetra4 is actively

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engaged with IDC to amend the IDC Loan Agreement to defer the Calculation Date for covenant measurement to October 31, 2026. Although no assurance can be provided, the Company expects to receive a waiver from IDC in connection with the renegotiation of the applicable Calculation Date. The IDC Loan outstanding on March 31, 2026 amounted to ZAR 144.1 million ($8.4 million) and interest expense for the period January 6, 2026 through March 31, 2026 amounted to ZAR 4.8 million ($0.3 million). Qualifying interest attributable to assets under construction is capitalized. All capitalized terms used in this paragraph but not defined herein have the meaning ascribed to them in the IDC Loan Agreement.

Pursuant to a Secured Term Loan Facility Agreement, Renergen obtained a ZAR 155.0 million secured loan from Standard Bank of South Africa ("SBSA") on August 30, 2024. Such Secured Term Loan Facility Agreement was subsequently amended and restated on December 12, 2025 (as amended, the "SBSA Loan"). The drawdowns occurred between August 2024 and October 2024. The SBSA Loan accrues compounded interest at a rate linked to the three-month Johannesburg Interbank Average Rate plus a variable margin (21.725% as of March 31, 2026). The SBSA Loan was scheduled to mature on the repayment date of March 31, 2026. The Company is currently engaged with SBSA and is in the process of finalizing an amendment to the SBSA Loan to extend the repayment date to no earlier than May 31, 2026, or such later date as may be mutually agreed between the parties. Although no assurance can be provided, discussions are ongoing and the Company expects the amendment to be completed in the ordinary course. Until such amendment is executed, the existing terms of the SBSA Loan remain in effect. The SBSA Loan is secured by a third ranking pledge of Tetra4's assets and shares held by Renergen in Tetra4. In addition, NTIGT Investment Proprietary Limited ("NTIGT"), an affiliate of Mr. Nicholas Mitchell and Mr. Stefano Marani, has entered into cession and pledge agreement with SBSA, pursuant to which NTIGT has pledged and ceded as security, which remain in NTIGT's possession unless called, collectively 1,546,268 shares of ASP Isotopes common stock issued to Mr. Nicholas Michell and Mr. Stefano Marani in exchange for their shares of Renergern prior to the acquisition by ASP Isotopes, to and in favor of SBSA. The Molopo litigation discussed below and the need to procure the requisite equity injection by January 24, 2025 resulted in events of default with respect to the SBSA Loan. SBSA provided a waiver for both default events. To date, no further remedies have been requested by SBSA due to the progress achieved in securing funding for Renergen's LNG plant in the Free State, South Africa. The SBSA Loan outstanding on March 31, 2026 amounted to ZAR 213.4 million ($12.5 million) and interest expense for the period January 6, 2026 through March 31, 2026 amounted to ZAR 10.1 million ($0.6 million).

*Unsecured Term Loans*

Renergen entered into a $7.0 million unsecured convertible debenture subscription agreement ("Subscription Agreement") with AIRSOL, an Italian wholly-owned subsidiary of SOL S.p.A., on August 30, 2023. The Subscription Agreement provided for two tranches of funding: $3.0 million ("Tranche 1"), received on August 30, 2023, and $4.0 million ("Tranche 2"), received on March 18, 2024. The debentures include a contractual maturity date, initially set at February 28, 2025 and amended by agreement to August 31, 2025, subject to the terms of the Subscription Agreement (as amended) and the related Helium Sale and Purchase Agreement. The debentures accrue interest at 13% per annum, calculated and compounded semi-annually, with interest payable on February 28 and August 31 each year. The contractual maturity date has passed and the liability remains outstanding as a result of a dispute between the parties in respect of repayment, and arbitration proceedings have commenced and are currently ongoing. No additional amendments to the Subscription Agreement were made during the reporting period.. The carrying amount of the debentures outstanding at March 31, 2026 was $7.1 million.

Renergen's subsidiary Tetra4 entered into a ZAR 50.0 million loan agreement with Molopo on April 11, 2014. The loan term was for a period of 10 years and six months commencing on July 1, 2014 (repayable on August 31, 2024). During this period the loan was unsecured and is interest free. The loan was discounted on initial recognition and the unwinding of the discount applied on initial recognition was recognized in borrowing costs as imputed interest.

As the loan was not repaid on August 31, 2024 it now accrues interest at the prime lending rate plus 2% (12.25% on March 31, 2026). The loan can only be repaid when Tetra4 declares a dividend and utilizes a maximum of 36% of the distributable profits in order to pay the dividend. It is not expected that the loan or interest will be repaid in the next 12 months given the unavailability of distributable profits based on Tetra4's most recent forecasts. As such, the loan is classified as noncurrent. Interest expense was ZAR 1.6 million for the three months ended March 31, 2026 ($0.1 million). The Molopo loan outstanding on March 31, 2026 amounted to ZAR 60.5 million ($3.5 million).

In November 2024, Molopo initiated legal proceedings against Tetra4 in the High Court of South Africa, Gauteng Local Division, Johannesburg, by issuing a summons alleging a breach of contract when Renergen sold the 5.5% stake in Tetra4 to Mahlako Gas Energy Proprietary Limited ("MGE"). The claim pertains to a written loan agreement entered into between Molopo, as the lender, and Tetra4, as the borrower, in April 2014 (as described above). As a consequence, Molopo has purported to cancel the loan agreement, which cancellation is disputed by Tetra4 on the basis that the investment by MGE did not constitute a payment by Tetra4 to its parent in the sale. According to the Lead Times Bulletin for the High Court in Gauteng, the earliest available hearing date is estimated to be approximately December 2030, hence the loan continues to be classified as noncurrent.

Scheduled maturities of the Company's debt as of March 31, 2026 are as follows (in thousands):

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| | |
|:---|:---|
| 2026 (9 months) | $53052 |
| 2027 | 599 |
| 2028 | 618 |
| 2029 | 464 |
| 2030 | 46 |
| Thereafter | 3546 |
| Total notes payable | $58325 |
| Less debt - current | (53265) |
| Debt - noncurrent | $5060 |

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*Convertible Notes Payable*

In March 2024, QLE issued convertible notes payable ("March 2024 Convertible Notes") totaling $21.1 million and received aggregate cash of $20.6 million. One of the notes totaling $0.5 million was issued to the placement agent in lieu of cash issuance costs.

In June 2024, QLE issued additional convertible notes payable ("June 2024 Convertible Notes") totaling $5.5 million and received aggregate cash of $5.4 million. One of the notes totaling $0.1 million was issued to the placement agent in lieu of cash issuance costs Issuance costs paid in cash were negligible. The March 2024 Convertible Notes and the June 2024 Convertible Notes are collectively the "2024 Convertible Notes".

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The 2024 Convertible Notes were payable on demand in March 2029 and bear interest at an annual rate of 6% through March 7, 2025 and 8% thereafter. Upon a qualified financing event, the 2024 Convertible Notes convert into the shares issued in that qualified financing event at a price per share equal to 80% of the share price issued subject to a valuation cap. Upon a qualified transaction, the noteholders may elect to receive either 1.5x the principal and accrued interest balance in cash or convert into common shares.

The 2024 Convertible Notes were recorded on the consolidated balance sheet at their fair values. The fair value of the March 2024 Convertible Notes on the date of issuance was $21.1 million. The fair value of the June 2024 Convertible Notes on the date of issuance was $5.5 million. The fair value of the 2024 Convertible Notes as of March 31, 2025 was determined to be $34.4 million and the resultant change in fair value of $1.0 million was recorded in other income and expense in the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2025. In connection with the issuance of the 2025 Convertible Notes, QLE's outstanding 2024 Convertible Notes originally issued in March 2024 and June 2024 automatically converted into 2025 Convertible Notes with a fair value of $147.7 million.

In November 2025, QLE issued convertible notes payable ("2025 Convertible Notes") totaling $72.2 million and received aggregate cash of $69.6 million. The maturity date of the 2025 Convertible Notes is November 19, 2030. The 2025 Convertible Notes automatically convert into common shares upon QLE's closing of an IPO or other qualifying public transaction at 80% of the share price, taking into consideration a valuation cap. QLE received $10.0 million in gross proceeds from American Ventures LLC, Series IX Quantum Leap and $30.0 million in gross proceeds from ASP Isotopes, its parent. Issuance costs paid in cash totaling $2.6 million were expensed in selling, general and administrative costs in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2025.

The 2025 Convertible Notes are recorded on the consolidated balance sheet at their fair values. The fair value of the 2025 Convertible Notes as of March 31, 2026 and December 31, 2025 has been determined to be $199.9 million and $199.3 million, respectively. The resultant change in fair value of the 2025 Convertible Notes for the three months ended March 31, 2026 was $0.6 million, and has been recorded in other income and expense in the consolidated statement of operations and comprehensive loss. As of March 31, 2026, the total principal and accrued interest of the 2025 Convertible Notes is $226.2 million of which $6.4 million is from the interest.

The Company announced plans to list QLE as a standalone public company in the second half of 2025. The Company has also announced QLE and certain of its subsidiaries have entered into a loan agreement with TerraPower (the "TerraPower Loan Agreement"), a US nuclear innovation company, for a multiple advance term loan of up to $22.0 million related to financing support for the construction of a new uranium enrichment facility capable of producing HALEU in South Africa. Per the terms of the TerraPower Loan Agreement and subject to the satisfaction of various conditions precedent to each disbursement (including receiving all required licenses and permits to perform uranium enrichment in South Africa), the borrower could receive aggregate loan disbursements of $20.0 million.

*American Ventures Advisory Agreement* 

On October 28, 2025, QLE entered into an Advisory Agreement ("Advisory Agreement") with American Ventures LLC, a Delaware limited liability company ("American Ventures"). Under the Advisory Agreement, American Ventures will provide various services to the Company related to QLE and its present and future subsidiaries' business and operations and is considered a related party based on its 2025 Convertible Notes holdings.

In October 2025, pursuant to the Advisory Agreement, QLE issued RSUs representing a right to receive a number of units or shares of common equity of QLE equal to 4.0% of the common equity of QLE deemed outstanding as of the date of grant, treating as outstanding only (i) ASP Isotopes' membership interest in the Company and (ii) the shares or units of common equity issuable upon conversion of the 2024 Convertible Notes (or any securities issued upon conversion or exchange thereof). The total number of such RSUs cannot yet be calculated because the precise number of these units is based on a percentage of common equity deemed outstanding, which is contingent, in part, on the amount of securities issuable upon the conversion of certain of QLE's 2025 Convertible Notes that were issued upon conversion of certain 2024 Convertible Notes. Such RSUs will vest as follows: (x) 50% upon the completion of the listing event, provided that such listing event occurs within 24 months of October 28, 2025, and (y) 50% on the six-month anniversary of such listing event.

**10. Deferred Revenues**

In June 2023, the Company entered into a Supply Agreement with a customer for the delivery of Mo-100 and molybdenum-98 beginning in 2024. In conjunction with the Supply Agreement, the Company received $0.9 million in September 2023, as an advance towards future revenue. The Company has recorded $0.9 million as deferred revenue on the balance sheet as of March 31, 2026 and December 31, 2025.

The Company assumed a token liability in connection with the acquisition of Renergen in January 2026. Tokens with the value of $0.8 million were issued during 2023 and have no expiration date. When a token is redeemed, revenue relating to the transaction will be recognized at the original value at which the token was issued. The Company has recorded $0.8 million as deferred revenue - noncurrent on the balance sheet as of March 31, 2026.

**11. Commitments and Contingencies** 

***Commitments***

*Share Purchase Agreement relating to PET Labs*

On October 31, 2023, the Company entered into a Share Purchase Agreement with Nucleonics Imaging Proprietary Limited, a company incorporated in the Republic of South Africa (the "Seller"), relating to the purchase and sale of ordinary shares in the issued share capital of PET Labs. PET Labs is a South African radiopharmaceutical operations company, dedicated to nuclear medicine and the science of radiopharmaceutical production.

Under the Purchase Agreement, the Company agreed to purchase from the Seller 51 ordinary shares in the issued share capital of PET Labs (the "Initial Sale Shares") (representing 51% of the issued share capital of PET Labs) and has an option to purchase from the Seller the remaining 49 ordinary shares in the issued share capital of PET Labs (the "Option Shares") (representing the remaining 49% of the issued share capital of PET Labs). The Company agreed to pay to the Seller an aggregate of $2.0 million for the Initial Sale Shares, of which aggregate amount of $0.5 million was payable on the completion of the sale of the Initial Sale Shares and $1.5 million was payable on demand after one calendar year from the agreement date. In January 2024, the Company agreed to pay $0.3 million to the Seller. The Company paid an additional $0.7 million and $0.5 million in January 2025 and December 2025, respectively, resulting in the Initial Sale Shares being paid in full as of December 31, 2025. If the Company exercises its option to purchase the Option Shares

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(which option is exercisable from the agreement date until January 31, 2027, provided that the Initial Sale Shares have been paid for in full), the Company has agreed to pay $2.2 million for the Option Shares.

*PET Labs Global*

In August 2024, PET Labs Global entered into a three-year service agreement with Cayman Enterprise City and is licensed to operate from within the Cayman Islands' Special Economic Zone ("SEZ"). The service fee includes among other things the right to use certain office space and associated facilities within the SEZ. The Company has applied the guidance in ASC 842 and determined that this agreement is not a leasing arrangement. Management has determined that based on the nature of the combined services the expense should be recognized as incurred.

*Renergen Firm Intention Letter and Loan Agreement*

On March 31, 2025, the Company entered into an Exclusivity Agreement with Renergen, an entity in South Africa listed on the Johannesburg Stock Exchange ("JSE"), the Australian Stock Exchange and the A2X. On May 18, 2025, the Exclusivity Agreement was amended. Per the terms of the amended Exclusivity Agreement, the Company received the rights to negotiate the terms of the acquisition of Renergen during an exclusive negotiation period that ended on May 31, 2025. In April 2025, the Company paid an exclusivity fee of $10.0 million to Renergen.

As contemplated in the Exclusivity Agreement signed on March 31, 2025 and amended on May 18, 2025, the Company entered into a Firm Intention Letter with Renergen on May 19, 2025. The Firm Intention Letter sets the acquisition terms for the Company to purchase 100% of the outstanding shares of Renergen in exchange for shares of the Company. The completion of the acquisition was subject to several closing conditions including Renergen shareholder approval, which was obtained on July 10, 2025. The acquisition was consummated on January 6, 2026, and as a result, Renergen became a direct, wholly owned subsidiary of the Company, and the Renergen Ordinary Shares were delisted from the JSE, the Australian Securities Exchange and the A2X (Note 14).

In addition, the Company entered into a loan agreement with Renergen ("Renergen Loan") in which a total of $30.0 million was provided by the Company for the purpose of funding Renergen's operations. In conjunction with the Renergen Loan, the full amount of the previously paid exclusivity fee of $10.0 million was applied to the Renergen Loan. The remaining $20.0 million available under the Renergen Loan was paid by the Company to Renergen in June 2025. The Renergen Loan matured and repayment was due on September 30, 2025. The Renergen Loan bears interest at the South African Prime Rate, which was approximately 10.50% as of March 31, 2026. The Renergen Loan was amended to extend the repayment date to January 20, 2026 and amended again to establish the repayment date as sixty days after written demand by the Company. Pursuant to additional amendments, the aggregate principal amount available under the Renergen Loan was increased to USD 48,600,000.

*Certain Commitments to the South Africa Competition Commission*

In connection with the Company's acquisition of Renergen, the Company made certain commitments to the South Africa Competition Commission designed to address public interest concerns and promote historically disadvantaged persons ("HDP") and worker ownership. These commitments to the South Africa Competition Commission include: (1) a moratorium on retrenchments of workers at Renergen's operations for a period of two years from the merger closing date; and (2) a commitment to implement, within 12 months of the merger closing date, a trust for the benefit of qualifying workers employed by Renergen and certain HDP communities and people located within the production rights area of the Virginia Gas Project (the "HDP and Worker Trust"). Upon the effective implementation date of the HDP and Worker Trust, the HDP and Worker Trust is expected to hold an aggregate 5% of the issued shares in Tetra4 and Renergen is expected to hold 89.5% of the issued shares in Tetra4, subject to change in accordance with any capital raising activities of the Company, Renergen and/or Tetra4 following the merger closing date. In conjunction with the establishment of the HDP and Workers Trust, Tetra4 will issue an offsetting vendor financed loan to the HDP and Worker Trust. The HDP and Worker Trust will continue for the duration of the Production Right held by Tetra4, which will expire during 2042, unless extended.

***Contingencies***

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues liabilities for such matters when future expenditures are probable and such expenditures can be reasonably estimated.

On December 4, 2024, a purported stockholder of the Company filed a putative securities class action on behalf of purchasers of the Company's securities between October 30, 2024 through November 26, 2024 against ASP Isotopes Inc. and certain of its executive officers in the United States District Court for the Southern District of New York (Corredor v. ASP Isotopes Inc., et al., Case No. 1:24-cv-09253 (S.D.N.Y)) (the "Securities Class Action"). The Securities Class Action alleges that the Company, its chief executive officer and chief financial officer ("Defendants") made materially misleading or false statements or omissions regarding the Company's business and asserts purported claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and SEC Rule 10b-5 promulgated thereunder. The complaint seeks unspecified compensatory damages, attorney's fees and costs. On May 2, 2025, the Court appointed Mark Leone ("Leone") as lead plaintiff and directed the Clerk of court to amend the caption to substitute Leone for Alexander Corredor as plaintiff. On May 2, 2025, the Court also appointed lead counsel and set deadlines for filing an amended consolidated class action complaint and briefing schedules for a motion to dismiss, if any, and class certification. On May 27, 2025, Leone and two additional named plaintiffs ("Plaintiffs") filed the amended class action complaint ("Amended Complaint"), that asserts the same causes of action and seeks the same relief as the initial complaint and is based upon substantially similar factual allegations as the initial complaint. On June 27, 2025, Defendants filed a motion to dismiss the Amended Complaint. Also on June 27, 2025, Plaintiffs filed a motion for class certification. On December 4, 2025, the Court denied in part Defendants' motion to dismiss and granted Plaintiffs' motion for class certification. On April 3, 2026, following a mediation in which the parties reached an agreement-in-principle to resolve all claims in the Securities Class Action, subject to the Court's approval, the parties filed a Joint Stipulation agreeing to stay the Securities Class Action (the "Stipulation"). The Stipulation requires the parties to file a stipulation of settlement and for the Plaintiffs to file a motion for preliminary approval of the stipulation of settlement within 60 days of the Court's approval of the Stipulation. On April 6, 2026, the Court approved the Stipulation. The Company cannot be certain of the outcome of the Securities Class Action and, if decided adversely to us, our business and financial condition may be adversely affected.

On January 30, 2026, a purported stockholder of the Company filed a derivative action against certain members of the Company's board of directors in the United States District Court for the Northern District of Texas asserting claims for, among others, breach of fiduciary duty, violation of § 14(a) of the Exchange Act and a claim for contribution pursuant to § 21D thereof (Jenis v. Mann, et al., Case No. 3:26-cv-251 (N.D. Tex.)) (the "Jenis Action"). The Company is named as a Nominal Defendant. On March 2, 2026, a different purported stockholder of the Company filed a derivative action against certain members of the Company's board of directors in the United States District Court for the Southern District of New York asserting claims for, among others, breach of fiduciary duty, violations

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of §§ 14(a) and 20(a) of the Exchange Act, and a claim for contribution pursuant to § 21D thereof (Stewart v. Mann, et al., Case No. 1:26-cv-1712 (S.D.N.Y.)) (the "Stewart Action") (together with the Jenis Action, the "Derivative Actions")). The Company is named as a Nominal Defendant. The Derivative Actions arise out of similar allegations as those made in the Securities Class Action. The plaintiffs in the Derivative Actions seek unspecified damages, disgorgement of compensation, corporate governance reforms, fees, interests, and costs. The defendants have not yet responded to the complaints in the Derivative Actions. The Company cannot be certain of the outcome of the Derivative Actions and, if decided adversely to us, our business and financial condition may be adversely affected.

In November 2024, Molopo Energy Limited ("Molopo") initiated legal proceedings against Tetra4 in the High Court of South Africa, Gauteng Local Division, Johannesburg, by issuing a summons alleging breach of a written loan agreement concluded between Molopo, as lender, and Tetra4, as borrower, in April 2014 (the "Molopo Loan Action"). The Molopo Loan Action alleges that Renergen, Tetra4's parent company, breached a condition of the loan agreement when it sold a 5.5% stake in Tetra4 to Mahlako Gas Energy Proprietary Limited ("MGE"), and that such breach entitled Molopo to cancel the loan agreement. Tetra4 disputes the purported cancellation on the basis that the investment by MGE did not constitute a payment by Tetra4 to its parent within the meaning of the loan agreement and is vigorously defending the Molopo Loan Action. According to the Lead Times Bulletin for the High Court in Gauteng, the earliest available hearing date is estimated to be December 2030. The Company cannot be certain of the outcome of the Molopo Loan Action and, if decided adversely to us, our business and financial condition may be adversely affected.

In addition to the matters described above, from time to time, the Company may become subject to arbitration, litigation or claims arising in the ordinary course of business. The results of any current or future claims or proceedings cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and litigation costs, diversion of management resources, reputational harm and other factors.

**12. Leases** 

***Operating leases***

The Company is party to several facility leases in South Africa and the U.S. for office, manufacturing and laboratory space. Dr. Gerdus Kemp, an officer of PET Labs and an employee of ASP UK, is the sole owner of a leased office and production facility in Pretoria, South Africa. In 2026, the Company has expanded its facility leases in South Africa. In conjunction with the acquisition of Renergen in January 2026, the Company is recognizing additional operating leases for its office space in South Africa. A lease for production space in Pretoria, South Africa is being accounted for as a short-term lease effective with the acquisition of 51% of PET Labs.

Quantitative information regarding the Company's operating lease liabilities is as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Operating Lease Cost** |  |  |
| Operating lease cost | $369 | $168 |
| **Other Information** |  |  |
| Operating cash flows paid for amounts included in the<br> measurement of lease liabilities | $314 | $165 |
| Operating lease liabilities arising from obtaining right-of-<br> use assets | $1673 | $— |
| Weighted average remaining lease term (years) | 3.65 | 3.58 |
| Weighted average discount rate | 9.54% | 9.63% |

---

Future lease payments under noncancelable operating lease liabilities as of March 31, 2026 are as follows (in thousands):

---

| | |
|:---|:---|
|  | **Operating <br>Leases** |
| **Future Lease Payments** |  |
| 2026 (remaining nine months) | $777 |
| 2027 | 1094 |
| 2028 | 822 |
| 2029 | 520 |
| 2030 | 418 |
| Thereafter |  |
| Total lease payments | $3631 |
| Less: imputed interest | (588) |
| Total operating lease liabilities | $3043 |
| Less current portion | $(789) |
| Operating lease liability - noncurrent | $2254 |

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The Company records the expense from short-term leases as incurred. Lease expense from short-term leases was $33,696 and $31,595 for the three months ended March 31, 2026 and 2025, respectively.

***Financing leases***

The Company is party to several ongoing finance leases in South Africa for vehicles and equipment. Some of these finance leases include arrangements with variable interest rates indexed to the prime interest rate in South Africa. There was no variable interest expense for the three months ended March 31, 2026 and 2025. The Company elects to include finance lease right-of-use assets in property and equipment, net.

------

Quantitative information regarding the Company's finance lease liabilities is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Finance Lease Cost** |  |  |
| Interest on lease liabilities | $23 | $22 |
| **Other Information** |  |  |
| Operating cash flows paid for amounts included in the<br> measurement of finance lease liabilities | $44 | $30 |
| Amortization of right-of-use assets | $31 | $41 |
| Weighted average remaining lease term (years) | 3.4 | 4.2 |
| Weighted average discount rate | 13.2% | 13.0% |

---

Future lease payments under noncancelable finance lease liabilities are as follows as of March 31, 2026 (in thousands):

---

| | |
|:---|:---|
|  | **Finance <br>Leases** |
| **Future Lease Payments** |  |
| 2026 (remaining nine months) | $176 |
| 2027 | 228 |
| 2028 | 188 |
| 2029 | 73 |
| 2030 | 70 |
| Thereafter |  |
| Total lease payments | $735 |
| Less: imputed interest | (157) |
| Total lease liabilities | $578 |
| Less current portion | $(165) |
| Finance lease liability - noncurrent | $413 |

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***Lease receivable***

The Company leases certain equipment to customers under sales-type leases and records the leases within lease receivables on the Company's condensed consolidated balance sheets and records interest income in the Company's condensed consolidated statements of operations and comprehensive loss. The Company does not have significant variable lease payments or residual value guarantees associated with these leases. Credit risk is monitored regularly, and no allowance for credit losses was recorded as of the reporting date.

The Company's net investment in sales-type leases were comprised of the following (in thousands):

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| | |
|:---|:---|
|  | **March 31, 2026** |
| Total undiscounted cash flows | $8752 |
| Present value discount | (4401) |
| Net investment in sales-type leases | $4351 |
| Less current portion | $(443) |
| Net investment in sales-type leases - noncurrent | $3908 |

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Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable, as of March 31, 2026 are as follows (in thousands):

---

| | |
|:---|:---|
|  | **Sales-type<br>Leases** |
| **Future Lease Payments To Be Collected** |  |
| 2026 (remaining nine months) | $759 |
| 2027 | 1211 |
| 2028 | 1211 |
| 2029 | 1211 |
| 2030 | 1108 |
| Thereafter | 3252 |
| Total undiscounted cash flows | $8752 |

---

Interest income recognized from sales-type leases during the three months ended March 31, 2026 was $0.1 million. There was no interest income recognized from sales-type leases during the three months ended March 31, 2025.

**13. License and Collaboration Agreements**

***TerraPower, LLC*** 

*TerraPower Agreement* 

On April 4, 2024, the Company entered into an agreement with TerraPower LLC ("TerraPower") to develop a conceptual design, refined cost/schedule/financing, risk register, and term sheet for a HALEU facility (the "TerraPower R&D Agreement"). The TerraPower R&D Agreement may be terminated for (a) breach or default, (b) the Company's convenience or (c) TerraPower's convenience. TerraPower is obligated to make all payments for tasks completed by the Company per the statement of work in the TerraPower R&D Agreement totaling $2.0 million and these payments are nonrefundable. Neither party has any additional rights or obligations outside what is in the statement of work in the TerraPower R&D Agreement.

On October 18, 2024, the Company and TerraPower signed a term sheet (the "TerraPower Term Sheet") that provides for the execution of two definitive agreements: (1) an agreement pursuant to which TerraPower will provide funding for the Company's construction of a uranium enrichment facility capable of producing HALEU using the Company's proprietary aerodynamic separation process technology to be located in the Republic of South Africa and (2) an agreement pursuant to which the Company will deliver to TerraPower the full capacity of the enrichment facility.

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The Company accounts for the TerraPower R&D Agreement in accordance with ASC 808. The Company has concluded that other authoritative accounting literature does not apply directly to these payments from TerraPower, either directly or by analogy, including ASC 606 because TerraPower is not a customer. The Company has concluded that TerraPower is not a customer because TerraPower has not contracted with the Company to obtain goods or services that are an output of the Company's ordinary activities in exchange for consideration. The Company also has concluded that there is no other authoritative accounting literature that is appropriate to apply by analogy, and, accordingly, its accounting policy is to evaluate the income statement classification for presentation of amounts associated with each separate activity. As a result, the Company concludes that all portions of the net receivable from TerraPower are directly related to the conceptual design of the HALEU facility. Furthermore, the Company and TerraPower will jointly develop criteria for optimization of the HALEU facility's operations. TerraPower shares the risks and rewards of designing the HALEU facility since its successful completion will enable TerraPower to purchase output from the HALEU facility in the future.

For the three months ended March 31, 2026, $0.2 million of collaboration revenue was recognized in the condensed consolidated statements of operations and comprehensive loss.

*TerraPower Loan Agreement and HALEU Supply Agreements*

In May 2025, the Company entered into the TerraPower Loan Agreement, which provides conditional commitments from TerraPower to the Company through one of its wholly-owned U.S.-based subsidiaries ("Borrower") for a multiple advance term loan totaling $22.0 million for the purpose of partially funding the construction of a proposed new uranium enrichment facility in South Africa. The total loan amount is inclusive of a 10% original issue discount on each disbursement and carries a fixed interest rate of 10% per annum. Per the terms of the TerraPower Loan Agreement and subject to the satisfaction of various conditions precedent to disbursements (including receiving all required licenses and permits to perform uranium enrichment in South Africa), the Company will receive aggregate loan disbursements of $20.0 million. Such loan matures on May 16, 2032. Interest will begin accruing upon each milestone disbursement received by the Company and will be added to the principal balance until November 2027. Principal and interest payments will be made in 60 equal installments beginning in November 2027. The Company plans to request drawdowns on this loan beginning in the third quarter of 2026.

In addition to the Terra Power Loan Agreement, the Company and TerraPower have entered into two supply agreements for the HALEU expected to be produced at the Company's uranium enrichment facility. The initial core supply agreement is intended to support the supply of the required first fuel cores for the initial loading of TerraPower's Natrium project in Wyoming. The long-term supply agreement is a 10-year supply agreement of up to a total of 150 metric tons of HALEU, commencing in 2028 through end of 2037.

**14. Acquisitions** 

The Company accounts for business combinations in accordance with Business Combinations (Topic 805), which requires an acquirer to retrospectively adjust provisional amounts recognized in a business combination during the measurement period (which represents a period not to exceed one year from the date of the acquisition), in the reporting period in which the adjustment is determined, as well as present separately on the face of the income statement or as a disclosure in the notes to the consolidated financial statements, the portion of the amount recorded in current period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.

***PET Labs*** 

In October 2023, the Company completed the acquisition of PET Labs. The acquisition is intended to accelerate the distribution of the Company's pipeline.

Pursuant to the terms of the agreement, the Company acquired 51% of the common shares issued and outstanding for total purchase consideration of $2.0 million in cash of which $0.5 million was paid up front. In December 2025, January 2025 and January 2024, the Company made partial payments of $0.5 million, $0.7 million and $0.3 million, respectively, resulting in no balance remaining as of December 31, 2025.

In addition to the purchase consideration, the Company has an option to purchase the remaining 49% of the issued and outstanding shares for an agreed consideration totaling $2.2 million. No consideration or value relating to this option was recognized as it was not considered probable at the time of acquisition and as of March 31, 2026.

Dr. Gerdus Kemp is an officer of PET Labs and, effective November 1, 2023, an employee of ASP Guernsey. In addition, Dr. Kemp controls the remaining 49% ownership of PET Labs.

***East Coast Nuclear Pharmacy***

In October 2025, the Company completed the acquisition of ECNP. The acquisition is intended to supplement the distribution of the Company's pipeline. The acquisition of ECNP has been accounted for as a business combination in accordance with ASC 805.

Pursuant to the terms of the agreement, the Company acquired 100% of the issued and outstanding membership interests for total purchase consideration of $2.5 million of which $2.0 million was paid up front in cash and the remaining $0.5 million was deferred through the issuance of notes payable that are to be repaid by June 30, 2026. The balance of the notes payable as of each of March 31, 2026 and December 31, 2025 was $0.5 million.

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The following table summarizes the allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands):

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Fair value of business combination** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash consideration | $2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable to Sellers | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Identifiable assets acquired and liabilities assumed** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 550 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Identifiable intangible assets | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (79) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total identifiable assets acquired and liabilities assumed | 926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 1574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total purchase consideration | $2500 |

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Goodwill arising from the acquisition as of October 1, 2025 of $1.6 million was attributable mainly to buyer specific synergies expected to arise from the acquisition. No goodwill from this acquisition is deductible for income tax purposes. The Company considered the contractual value of accounts receivable to be the same as the fair value and the full amount was collected. The results of ECNP have been included in the consolidated financial statements from the date of the acquisition.

***One 30 Seven Inc. ("One 30 Seven") Acquisition***

In October 2025, QLE acquired substantially all of the assets, including an international patent application and its related rights, from One 30 Seven, a Canadian company engaged in the business of researching and developing decontamination solutions for nuclear waste, particularly radioactive waste from radioactive materials from nuclear power plants, radiopharmaceuticals, and military sources. QLE made an initial cash payment of $150,000 and issued 266,113 shares of the Company's common stock and accounted for the transaction as a purchase of assets. The Company may be required to make additional payments, in cash or shares of the Company's common stock, totaling $17.0 million upon completion of certain milestones. This contingent payment was not considered probable at the acquisition date and therefore no contingent consideration was recorded for the year ended December 31, 2025 or the three months ended March 31, 2026.

In connection with the acquisition of assets from One 30 Seven, QLE entered into a consulting agreement with B-Con Engineering Inc., led by inventor Brian Creber, to develop and validate the functional operation of a Creber Mini Unit at an estimated cost of $4.5 million over 18 months, followed by either a Midi or Maxi Unit at approximately $12.5 million to $13.0 million over another 18 months. QLE has agreed to fund the project through quarterly advances, with acceptance testing and monthly reporting to ensure milestones are met. In addition, QLE entered into a royalty agreement with One 30 Seven pursuant to which QLE agreed to pay a 6.0% royalty on net revenues from product sales or licensing for 15 years per product, starting from the first commercial sale. The royalty agreement will terminate if the commercialization of a Creber Unit is not achieved by the fourth anniversary of closing of the acquisition of assets from One 30 Seven.

The Company determined that the cost to acquire the One 30 Seven assets was $2.7 million, based on the cash paid of $150,000, fair value of the equity consideration issued of $2.6 million and direct costs of the acquisition of $7,000. The One 30 Seven acquisition was accounted for as an asset acquisition as One 30 Seven was not considered to be a business under ASC 805 or SEC Rule 11-01(d) as substantially all of the fair value of the non-monetary assets acquired was concentrated in a single identifiable asset. In the estimation of fair value of the asset purchase consideration, the Company used fair value attributable to the acquired IPR&D. Since One 30 Seven was in the development stage and no commercial production had commenced at the time of the acquisition, the cost attributable to the IPR&D was expensed in the Company's consolidated statements of operations and comprehensive loss for the year ended December 31, 2025, as the acquired IPR&D had no alternative future use.

***Numed Diagnostics, LLC***

In January 2026, the Company completed the acquisition of Numed Diagnostics, LLC ("Numed"). The acquisition is intended to supplement the distribution of the Company's pipeline. The acquisition of Numed has been accounted for as a business combination in accordance with ASC 805.

Pursuant to the terms of the agreement, the Company acquired 60% of the issued and outstanding membership interests for total purchase consideration of $0.8 million. In addition to the purchase consideration, the Company is obligated to purchase an additional 36% of Numed's membership interests for $0.5 million within two years and has an option to purchase the remaining 4% of the issued and outstanding membership interests for $50,000. Contingent consideration relating to this obligated purchase of $0.4 million was recognized at acquisition and as of March 31, 2026.

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The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands):

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Fair value of business combination** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash consideration | $813 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent Consideration | 358 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Identifiable assets acquired and liabilities assumed** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent assets | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Identifiable intangible assets | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (208) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total identifiable assets acquired and liabilities assumed | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 1331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | (597) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total purchase consideration | $1171 |

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Goodwill arising from the acquisition as of January 22, 2026 of $1.3 million was attributable mainly to buyer specific synergies expected to arise from the acquisition. No goodwill from this acquisition is deductible for income tax purposes. The Company considered the contractual value of accounts receivable to be the same as the fair value and the full amount was collected. The results of Numed have been included in the consolidated financial statements from the date of the acquisition.

***Renergen***

On January 6, 2026, the Company completed the acquisition of Renergen and acquired all of the issued Renergen ordinary shares from Renergen shareholders in exchange for shares of the Company's common stock at an exchange ratio of 0.09196 shares of Company common stock for each Renergen ordinary share (the "Consideration Shares") through the implementation of the Scheme, resulting in the issuance of an aggregate of 14,270,000 Consideration Shares. As a result of the transaction, Renergen became a direct, wholly owned subsidiary of ASP Isotopes.

In connection with the transaction, Renergen ordinary shares were delisted from the JSE and the Australian Securities Exchange (the "A2X"). The Company's common stock continues to be listed on The Nasdaq Capital Market and on the JSE.

In addition, the Company expects to appoint Stefano Marani, the Chief Executive Officer of Renergen, as the President, Electronics and Space of the Company, and Nick Mitchell, the Chief Operating Officer of Renergen, as the Co-Chief Operating Officer of the Company once the terms of their employment agreements are finalized.

The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands):

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Fair value of business combination** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity consideration | $92897 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash consideration | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Note receivable | 32119 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Identifiable assets acquired and liabilities assumed** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash - short term | 2789 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 3205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lessor Receivable | 2434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash - long term | 1650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 61573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas properties | 133412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use asset, net | 811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (4820) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities – current | (55) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – current | (195) |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | (58664) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (819) |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities – noncurrent | (204) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – noncurrent | (616) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities - long term | (3287) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | (6175) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total identifiable assets acquired and liabilities assumed | 132297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | (7276) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total purchase consideration | $125021 |

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The initial allocation of the purchase price was based upon a preliminary valuation, and accordingly, our estimates and assumptions are subject to change as we obtain additional information during the measurement period.

***Goodwill***

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that

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it is more likely than not that the carrying value of a reporting segment exceeds its fair value. No goodwill impairments were recognized for the years presented.

The carrying amount of goodwill by reporting segment as of March 31, 2026 and December 31, 2025 is as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31,<br>2025** |
| Specialist isotopes and related services | $6394 | $5177 |
| Total goodwill | $6394 | $5177 |

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The changes to the carrying value of goodwill, which is included in the isotopes and related services segment, is as follows:

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| | |
|:---|:---|
| **Description** | **Amount** |
| Balance as of December 31, 2025 | $5177 |
| Acquisition of Numed | 1331 |
| Translation adjustment | (114) |
| Balance as of March 31, 2026 | $6394 |

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***Intangible Assets***

Amortization expense was $33,000 for the three months ended March 31, 2026. There was no amortization expense related to identifiable intangible assets recorded for the three months ended March 31, 2025.

The changes to the carrying value of intangible assets, which is included in the construction services and specialist isotopes and related services segments, is as follows (in thousands):

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| | |
|:---|:---|
| **Description** | **Amount** |
| Balance as of December 31, 2024 | $— |
| Trademarks from ECNP acquisition | 430 |
| Amortization | (21) |
| Balance as of December 31, 2025 | $409 |
| Trademarks from Numed acquisition | 300 |
| Amortization | (34) |
| Balance as of March 31, 2026 | $675 |

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The following table outlines the estimated future amortization expense related to intangible assets held as of December 31, 2025 (in thousands):

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| | |
|:---|:---|
|  | **Amortization Expense** |
| **Year Ended December 31,** |  |
| 2026 | $121 |
| 2027 | 161 |
| 2028 | 161 |
| 2029 | 161 |
| 2030 | 71 |
| Thereafter |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $675 |

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**15. Equity Method and Other Investments**

***Investment in IsoBio, Inc.***

On July 28, 2025, the Company purchased 2,000,000 shares of IsoBio, Inc. ("IsoBio") Series Seed-1 Preferred Stock at $2.50 per share for a total aggregate purchase price of $5.0 million. IsoBio is a U.S.-based radiotherapeutic development company focused on developing a broad pipeline of mAb-based radioisotope therapeutics targeting both derisked and novel tumor antigens for patients in need of new cancer therapies.

As the owner of the Series Seed-1 Preferred Stock, the Company has the right to designate one board member. An officer and director of the Company was designated to fill that board seat. In addition, another board member of the Company is a board member, executive officer and shareholder of IsoBio.

The investment in IsoBio does not have a readily determinable fair value and is therefore measured at cost, adjusted for observable price changes and impairments, in accordance with ASC 321. As of March 31, 2026 and December 31, 2025, the carrying value of the investment was $5.6 million. This investment is included in "Other investments" on the consolidated balance sheet.

The Company monitors the investment for indicators of impairment and observable price changes on a quarterly basis. If indicators of impairment exist, the Company performs a qualitative assessment to determine whether the investment is impaired and adjusts the carrying value accordingly. Therefore, the Company has included this investment in the fair value hierarchy disclosure (Note 4). During the three months ended March 31, 2026, the Company did not identify any observable price changes or impairment indicators related to this investment.

***Skyline Investment***

In August 2025, QLE completed an acquisition of Skyline. QLE entered into a Stock Purchase Agreement to purchase all 1,995,000 of Skyline's Class B Ordinary Shares for the aggregate purchase price of $1.0 million ("Skyline Stock Agreement"). Additionally, QLE entered into a Securities Purchase Agreement to purchase (i) 454,794 Class A Ordinary Shares, (ii) a Prefunded Warrant to purchase 1,600,000 Class A Ordinary Shares at an exercise price of $0.0001 per share, (iii) a Class A Ordinary Share Purchase Warrant A to purchase up to 2,054,794 Class A Ordinary Shares at an exercise price of $0.60 per share , and (iv) a Class A Ordinary Share Purchase Warrant B to purchase 2,054,794 Class A Ordinary Shares at an exercise price of $0.65 per share, for the aggregate

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purchase price of $1.5 million ("Skyline Purchase Agreement").

Effective as of March 29, 2026, QLE, entered into the Exchange Agreement with a third party investor in which the parties agreed to exchange 1,995,000 Class B common shares owned by QLE for 1,995,000 Class A shares owned by the third party investor, on a one-for-one basis. This resulted in QLE's ownership in Skyline decreasing to under 10% and the Company now accounts for the investment as an equity method investment in accordance with ASC 323. As a result of entering into the Exchange Agreement, the Company deconsolidated the results of Skyline and recorded a gain on deconsolidation of $19.3 million. The Company's total investment in Skyline was $23.8 million on the date of the Exchange Agreement. As of March 31, 2026, the value of the Company's investment in Skyline was $24.9 million, resulting in a change in fair value of investment of $1.1 million, which is recorded in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

***Investment in Opeongo, Inc.***

On January 26, 2026, the Company purchased 4,356,918 shares of Opeongo, Inc. ("Opeongo") Series Seed-1 Preferred Stock at $2.2952 per share for a total aggregate purchase price of $10.0 million. Opeongo is a U.S.-based biotechnology company developing novel therapeutics using extracellular matrix-modulating modulation to target fibrosis, inflammation and cancer.

As the owner of the Series Seed-1 Preferred Stock, the Company has the right to designate one board member. An officer and director of the Company was designated to fill that board seat. In addition, another board member of the Company is a board member and shareholder of Opeongo.

The investment in Opeongo does not have a readily determinable fair value and is therefore measured at cost, adjusted for observable price changes and impairments, in accordance with ASC 321. As of March 31, 2026, the carrying value of the investment was $10.0 million. This investment is included in "Other investments" on the consolidated balance sheet.

The Company monitors the investment for indicators of impairment and observable price changes on a quarterly basis. If indicators of impairment exist, the Company performs a qualitative assessment to determine whether the investment is impaired and adjusts the carrying value accordingly. During the three months ended March 31, 2026, the Company did not identify any observable price changes or impairment indicators related to this investment.

**16. Stockholders' Equity**

***Preferred stock***

The Company has 10,000,000 shares of preferred stock authorized, of which no shares were issued and outstanding as of March 31, 2026 and December 31, 2025.

***Common stock***

The Company has 500,000,000 shares of common stock authorized, of which 125,903,447 and 111,677,771 shares were outstanding as of March 31, 2026 and December 31, 2025, respectively. Common stockholders are entitled to one vote for each share of outstanding common stock held at all meetings of stockholders and written actions in lieu of meetings. Common stockholders are entitled to receive dividends for each share of outstanding common stock, if and when declared by the Board. No dividends have been declared or paid by the Company through March 31, 2026.

In June 2025, the Company issued 7,518,797 shares of common stock at $6.65 per share resulting in net proceeds of approximately $46.8 million after deducting underwriting discounts, commissions and offering expenses.

In July 2025, the Company issued 7,500,000 shares of common stock at a public offering price of $8.00 per share resulting in net proceeds of approximately $56.3 million after deducting underwriting discounts, commissions and offering expenses.

In October 2025, the Company issued 17,167,380 shares of common stock at a public offering price of $12.25 per share resulting in net proceeds of approximately $199.3 million after deducting underwriting discounts, commissions and offering expenses.

Treasury shares are recorded at cost and include forfeited shares from the Company's stock compensation plans. There were 44,324 shares forfeited and transferred to treasury stock through March 31, 2026.

***Common Stock Warrants***

In May 2025, a warrant to purchase 1,294,778 shares of common stock was exercised and the Company received gross proceeds of approximately $4.9 million. In July and September 2025, cashless exercises of warrants to purchase 151,741 shares of common stock were executed, resulting in the issuance of 123,497 shares of common stock. As of March 31, 2026 and December 31, 2025, there were warrants to purchase shares of common stock outstanding of 69,778 and 69,778 shares, respectively.

**17. Stock Compensation Plan**

***Equity Incentive Plans***

In October 2021, the Company adopted the 2021 Stock Incentive Plan ("2021 Plan") that provided for the issuance of common stock to employees, nonemployee directors, and consultants. Recipients of incentive stock options are eligible to purchase shares of common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The 2021 Plan provided for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock awards and stock appreciation rights. The maximum contractual term of options granted under the 2021 Plan is ten years. The maximum number of shares initially available for issuance under the 2021 Plan was 6,000,000. No further options are available to be issued under the 2021 Plan.

In November 2022, the Company adopted the 2022 Equity Incentive Plan ("2022 Plan") that provides for the issuance of common stock to employees, nonemployee directors, and consultants. Recipients of incentive stock options are eligible to purchase shares of common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The 2022 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock awards and stock appreciation rights. The maximum contractual term of options granted under the 2022 Plan is ten years. The number of shares of the Company's common stock initially reserved for issuance under the 2022 Plan is equal to 5,000,000, subject to an annual increase, to be added on the first day of each fiscal year, beginning with the fiscal year ending December 31, 2023 and continuing until, and including, the fiscal year ending December 31, 2033, equal to the lesser of 5% of the number of shares of the Company's common stock outstanding on such date or an amount determined by the Company's board of directors. On January 1, 2026, the Company added 5,583,889 shares to the 2022 Plan. As of March 31, 2026, 5,892,090 shares remain available for future grant under the 2022 Plan.

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In June 2024, the Company adopted the 2024 Inducement Equity Incentive Plan ("2024 Plan"). The 2024 Plan will be used exclusively for the grant of equity awards to individuals who were not previously employees or directors of the Company, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with the Company, pursuant to Nasdaq Listing Rule 5635(c)(4). Recipients of stock options are eligible to purchase shares of common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The 2024 Plan provides for the grant of non-statutory stock options, restricted stock, restricted stock units, stock awards and stock appreciation rights. The maximum contractual term of options granted under the 2024 Plan is ten years. The number of shares of the Company's common stock initially reserved for issuance under the 2024 plan is equal to 2,500,000. As of March 31, 2026, 915,000 shares remain available for future grant under the 2024 Plan.

***2025 Inducement Equity Incentive Plan***

On July 16, 2025, upon recommendation of the Compensation Committee of the Company's Board, the Board approved and adopted the Company's 2025 Inducement Equity Incentive Plan (the "Inducement Equity Plan"), and subject to the adjustment provisions of the Inducement Equity Plan, reserved 2,000,000 shares of Common Stock for issuance of equity awards under the Inducement Equity Plan.

The Inducement Equity Plan was approved and adopted without stockholder approval pursuant to Nasdaq Listing Rule 5635(c)(4). The Inducement Equity Plan provides for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (consisting of performance shares or performance units) and other cash-based or stock-based awards (each, an "Inducement Award"). In addition, the Board also approved and adopted forms of Notice of Grant of Restricted Stock and Restricted Stock Agreement, and Notice of Grant of Stock Option and Stock Option Agreement for use with the Inducement Equity Plan. The terms and conditions of the Inducement Equity Plan are intended to comply with the Nasdaq inducement award rules.

In accordance with Nasdaq Listing Rule 5635(c)(4), the only persons eligible to receive grants of Inducement Awards are individuals who were not previously employees or directors of the Company (or following a bona fide period of non-employment), as an inducement material to the individuals' entry into employment with the Company. As of March 31, 2026, 2,000,000 shares remain available for future grant under the Inducement Equity Plan.

***QLE 2024 Equity Incentive Plan***

In March 2024, the Company adopted the QLE 2024 Equity Incentive Plan ("QLE 2024 Plan"). The QLE 2024 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock awards, performance awards and stock appreciation rights to employees, nonemployee directors, and consultants. The maximum contractual term of options granted under the QLE 2024 Plan is ten years and incentive stock options granted under the QLE 2024 Plan shall not exceed 50% of the maximum number of shares or units of common equity that may be issued under the QLE 2024 Plan. The maximum number of shares or units of QLE's common equity that may be issued under the QLE 2024 Plan is equal to 15% of the common equity deemed outstanding as of the effective date of the QLE 2024 Plan. As of March 31, 2026, no common equity deemed outstanding remain available for future grant under the QLE 2024 Plan.

In September 2025, QLE granted restricted stock units ("RSUs") totaling 11% of the common equity deemed outstanding to certain officers, employees and directors of QLE. The RSUs will vest subject to the occurrence of a Listing Event and, if applicable, an additional service-based vesting condition. A Listing Event shall mean the consummation of any of the following transactions by QLE, a corporate successor to QLE or a holding company established with respect to QLE's equity securities in connection with any of the following transactions (a "Public Issuer"): (i) a listing of common equity of QLE (or the common equity of such Public Issuer) through acquisition by or merger of such Public Issuer with a special purpose acquisition company or another entity listed on the NYSE or NASDAQ, (ii) a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act and in connection with such offering the common equity of QLE is listed for trading on the Nasdaq, the NYSE or another exchange or marketplace approved by the Board, or (iii) a direct listing of common equity of QLE (or the common equity securities of the Public Issuer) on the NYSE or Nasdaq.

Since the vesting of the RSUs is based on a liquidity event, no compensation cost will be recognized until the Performance Goal (Listing Event) is consummated. However, the fair value of the awards is calculated at the date of grant, which results in a total fair value of approximately $37.4 million.

***Stock Options***

The following table sets forth the activity for the Company's stock options during the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted-<br>Average<br>Exercise <br>Price<br>per Share** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term <br>(in Years)** | **Aggregate<br>Intrinsic<br>Value** |
| Outstanding as of December 31, 2025 | 808000 | $3.06 | 7.3 | $2020050 |
| Forfeited | (13165) | $6.16 |  |  |
| Outstanding as of March 31, 2026 | 794835 | $3.00 | 7.0 | $1459260 |
| Exercisable as of March 31, 2026 | 626543 | $2.16 | 6.3 | $1459260 |
| Vested or expected to vest as of March 31, 2026 | 794835 | $3.00 | 7.0 | $1459260 |

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No options were granted or exercised for the three months ended March 31, 2026.

The Company recorded stock-based compensation expense from options of $0.1 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was $0.6 million of unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements granted under the Plan.

***Stock Awards***

The Company recorded stock-based compensation expense from stock awards totaling $4.4 million and $1.7 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there is $16.9 million of unrecognized stock-based compensation expense related to the non-vested portion of restricted stock awards that is expected to be recognized over 2.0 years.

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The following table summarizes vesting of restricted common stock:

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| | | |
|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted<br>Average Grant<br>Date Fair <br>Value<br>Per Share** |
| Unvested as of December 31, 2025 | 4169955 | $5.68 |
| Vested | (495831) | $5.68 |
| Forfeited | (44324) | $6.16 |
| Unvested as of March 31, 2026 | 3629800 | $5.36 |

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***Stock-based Compensation Expense***

Stock-based compensation expense for all stock awards recognized in the accompanying consolidated statements of operations and comprehensive loss is as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Selling, general and administrative | $4162 | $1819 |
| Research and development | 250 | 71 |
| Total | $4412 | $1890 |

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**18. Net Loss Per Share**

The Company has reported losses since inception and has computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period, without consideration for potentially dilutive securities. The Company computes diluted net loss per share of Common Stock after giving consideration to all potentially dilutive shares of common stock, including options to purchase common stock and warrants to purchase common stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential shares of Common Stock have been anti-dilutive and basic and diluted loss per share were the same for all periods presented.

The following table sets forth the computation of basic and diluted net loss per share for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Numerator:** |  |  |
| Loss from continuing operations | $(26706) | $(8461) |
| Income from discontinued operations | 19585 |  |
| Less: Net (loss) income attributable to noncontrolling interests | (243) | (15) |
| Net loss attributable to ASP Isotopes Inc. shareholders | (6878) | (8446) |
| **Denominator:** |  |  |
| Weighted average common stock outstanding, basic and diluted | 121000699 | 69484200 |
| **Net (loss) income per share, basic and diluted:** |  |  |
| Continuing operations | (0.22) | (0.12) |
| Discontinued operations | 0.16 | - |
| Attributable to ASP Isotopes Inc. shareholders | (0.06) | (0.12) |

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The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive:

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| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
|  | **2026** | **2025** |
| Options to purchase common stock | 794835 | 2610166 |
| Restricted stock | 3629800 | 2357588 |
| Warrants to purchase common stock | 69778 | 1516297 |
| Total shares of common stock equivalents | 4494413 | 6484051 |

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**19. Income Taxes** 

The Company's effective tax rate for the three months ended March 31, 2026 and 2025 was -0.1% and 0.8%. The effective tax rate for the three months ended March 31, 2026 and 2025 varied from the federal statutory rate primarily due to losses in jurisdictions for which a valuation allowance is recorded.

The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more likely than not recognition threshold to be recognized. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest and penalties on the Company's balance sheets and has not recognized interest and/or penalties in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026. Uncertain tax positions are evaluated based upon the facts and circumstances that exist at each reporting period. Subsequent changes in judgment based upon new information may lead to changes in recognition, derecognition, and measurement. Adjustments may result, for example, upon resolution of an issue with the taxing authorities or expiration of a statute of limitations barring an assessment for an issue. As of March 31, 2026 and December 31, 2025, there were no uncertain tax positions.

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As of March 31, 2026, the Company did not recognize any interest and penalties associated with unrecognized tax benefits. Due to net operating losses incurred, tax years from inception remain open to examination by the Federal and State taxing jurisdictions to which the Company is subject. The Company is not currently under Internal Revenue Services (IRS), state or local tax examination.

Ownership changes, as defined in the Internal Revenue Code ("IRC"), may limit the amount of net operating loss carryforwards that can be utilized annually to offset future taxable income pursuant to IRC Section 382 or similar provisions. Subsequent ownership changes could further affect the limitation in future years. The Company has not completed a study to assess whether a change of control has occurred or whether there have been multiple changes of control since the Company's formation due to the significant complexity and cost associated with such study and because there could be additional changes in control in the future. As a result, the Company is not able to estimate the effect of the change in control, if any, on the Company's ability to utilize net operating loss and research and development credit carryforwards in the future.

**20. Related Party Transactions**

PET Labs has an operating lease for office and production space in Pretoria, South Africa with monthly payment of about $30,000 per month and a term set to expire in March 2056. The sole owner of the facility under the lease agreement is Dr. Gerdus Kemp, an officer of PET Labs and an employee of ASP UK.

**21. Discontinued Operations**

Effective as of March 29, 2026, the Company entered into the Exchange Agreement and completed the deconsolidation of Skyline. The Company retained approximately 8.6% percent of the outstanding Class A ordinary and preferred shares of Skyline immediately following the deconsolidation. The accounting requirements for reporting the separation of Skyline as a discontinued operation were met when the separation was completed. Accordingly, the historical results of Skyline have been presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. Prior to the separation, Skyline was reported within the construction services segment.

The following table presents the major categories of income from discontinued operations for the three months ended March 31, 2026 (in thousands):

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| | |
|:---|:---|
|  | **Three Months Ended** |
|  | **March 31, 2026** |
| Gross profit | $444 |
| Selling, general and administrative expenses | (2935) |
| Change in fair value of investments | 6162 |
| Other expenses, net | (124) |
| Income from discontinued operations before income taxes | 3547 |
| Income tax expense | (17) |
| Net loss before allocation to noncontrolling interests | 3530 |
| Less: Net income attributable to noncontrolling interests | 3281 |
| Income from discontinued operations | $249 |

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As the controlling interest of Skyline was not acquired until August 2025, no income was recognized from Skyline for the three months ended March 31, 2025.

The following table presents the major classes of assets and liabilities of discontinued operations as of December 31, 2025 (in thousands):

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| | |
|:---|:---|
|  | **December 31,<br>2025** |
| Cash and cash equivalents | $5991 |
| Accounts receivable | 16804 |
| Prepaid and other current assets | 8895 |
| Total current assets of discontinued operations | $31690 |
| Property, plant and equipment, net | 161 |
| Operating lease right-of-use lease assets | 48 |
| Intangibles | 1069 |
| Goodwill | 3393 |
| Equity investments | 1327 |
| Other investments | 40399 |
| Other noncurrent assets | 4491 |
| Total non-current assets of discontinued operations | 50888 |
| Total assets of discontinued operations | $82578 |
| Accounts payable | 1941 |
| Accrued expenses | 1809 |
| Notes payable - current | 12301 |
| Operating lease liabilities - current | 40 |
| Due to related parties | 4162 |
| Other current liabilities | 1537 |
| Total current liabilities of discontinued operations | 21790 |
| Deferred Tax Liabilities | 102 |
| Total non-current liabilities of discontinued operations | 102 |
| Total liabilities of discontinued operations | $21892 |

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The following table presents selected financial information related to cash flows from discontinued operations for the three months ended March 31, 2026 (in thousands):

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| | |
|:---|:---|
|  | **Three Months Ended** |
|  | **March 31, 2026** |
| Net cash used in operating activities | $(1121) |
| Net cash provided by financing activities | $45886 |

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The total net impact to stockholders' equity as a result of the separation was a reduction of $66.0 million, which has been reflected as a reduction of $86.8 million to noncontrolling interest and an increase to accumulated deficit and accumulated other comprehensive income/(loss) $19.3 million and $1.5 million, respectively, in the Condensed Consolidated Statement of Equity as of March 31, 2026. The Company retained 8.6% of the outstanding Class A ordinary and preferred shares of Skyline, which had a net book value of $23.8 million as of March 28, 2026, the separation date.

**22. Subsequent Events**

The Company has evaluated subsequent events through May 20, 2026, the date on which the accompanying condensed consolidated financial statements were issued and concluded that no subsequent events have occurred that require disclosure except as described below.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the consolidated financial statements and related notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC") on April 10, 2026 and Amendment No. 1 to our Annual Report on Form 10-K/A filed with the SEC on April 30, 2026 (as amended, the "Annual Report"), along with Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Annual Report. The Annual Report is accessible on the SEC's website at www.sec.gov and on our website at www.aspisotopes.com. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the section entitled "Risk Factors" in the Annual Report and the section entitled "Special Note Regarding Forward-Looking Statements" above, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. You should carefully read the section entitled "Risk Factors" in the Annual Report and the section entitled "Special Note Regarding Forward-Looking Statements" above to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements.*

**Overview**

We are an advanced materials company dedicated to the development of a differentiated isotope enrichment platform to strengthen global supply chain access to critical materials used in nuclear medicine, next-generation semiconductors, and nuclear energy. Our proprietary enrichment technologies, the Aerodynamic Separation Process ("ASP technology") and QE technology, are designed to enable the production of isotopes for a range of industrial and advanced technology applications. Our initial focus is on the production and commercialization of enriched Carbon-14 ("C-14"), Silicon-28 ("Si-28") and Ytterbium-176 ("Yb-176").

We commenced commercial production of enriched isotopes at both of its ASP enrichment facilities located in Pretoria, South Africa during the first half of 2025. However, we have not generated any revenue from the sale of our enriched isotopes as of March 31, 2026. Our first ASP enrichment facility is designed to enrich light isotopes, such as C-14 and C-12. The second ASP enrichment facility, which is substantially larger than the first, should have the potential to enrich kilogram quantities of relatively heavier isotopes, including but not limited to Si-28. Depending on the timing and the quality of the feedstock received from our customer, we are targeting initial commercial shipments of enriched C-14 in the third quarter of 2026. We are targeting initial commercial shipments of enriched Si-28 around mid-year 2026. We have also completed the commissioning phase of our third enrichment facility, a QE technology facility, which is our first laser-based enrichment plant. We are targeting initial commercial shipments of Yb-176 in the third quarter of 2026.

In addition, we have started planning additional isotope enrichment plants both in South Africa and in other jurisdictions, including Iceland and the United States. We believe the C-14 we may produce using the ASP technology could be used in the development of new pharmaceuticals and agrochemicals. We believe the Si-28 we may produce using the ASP technology may be used to create advanced semiconductors and in quantum computing. We believe the Yb-176 we may produce using the QE technology may be used to create radiotherapeutics that treat various forms of oncology. We are considering the future development of the ASP technology for the separation of Zinc-68 and Xenon-129/136 for potential use in the healthcare end market, Germanium 70/72/74 for potential use in the semiconductor end market, and Chlorine -37 for potential use in the nuclear energy end market. We are also considering the future development of QE technology for the separation of Nickel-64, Gadolinium-160, Ytterbium-171, Lithium-6 and Lithium-7.

QLE, our subsidiary, is currently pursuing an initiative to apply our enrichment technologies to the enrichment of Uranium-235 ("U-235") in South Africa. We believe that the U-235 QLE may produce has the potential to be commercialized as a nuclear fuel component for use in the new generation of high-assay low-enriched uranium ("HALEU")-fueled small modular reactors that are now under development for commercial and government uses. In furtherance of our uranium enrichment initiative in South Africa, we have entered into certain definitive agreements with TerraPower, LLC ("TerraPower"), including a term loan subject to conditions to support construction of a new uranium enrichment facility at Pelindaba, South Africa and supply agreements for the future supply of HALEU to TerraPower, as a customer. In addition, QLE's South African subsidiary has entered into a Pre-Implementation Services Contract Agreement ("Services Contract") with The South African Nuclear Energy Corporation ("Necsa"), a South African state-owned company responsible for undertaking and promoting research and development in the field of nuclear energy and radiation sciences, pursuant to which Necsa has agreed to provide to QLE's South African subsidiary certain facilities, infrastructure, utilities and services related to the siting, design, construction, commission and operation of an enrichment facility on the Necsa site in Pelindaba. In the period since our inception to date, we have not applied our enrichment technologies to the enrichment of U-235, nor received permission or regulatory approval to conduct testing of our enrichment technologies on U-235, except for the activities contemplated by the Services Contract with Necsa. Our expectation that QLE's initiative to apply our enrichment technologies to the enrichment of U-235 could be successful is based upon research conducted by certain of our scientists prior to joining the company, as well as the demonstrated effectiveness of QE technology on Yb-176.

We acquired Renergen in January 2026 and issued 14,270,000 Consideration Shares in connection with this acquisition. Renergen is South Africa's leading onshore natural gas explorer and the first integrated producer of both liquid helium and LNG, both of which are produced from the natural gas reserve base that underpins Renergen's Virginia Gas Project. The Virginia Gas Project includes (i) the liquefaction of natural gas into LNG, (ii) the separation of helium from natural gas, and (iii) the further liquefaction of helium into 99.999% pure liquid helium. This liquefaction and separation takes place at Renergen's Virginia Gas Plant. Renergen's principal asset is its 94.5% equity ownership in Tetra4, which holds an onshore petroleum production right and is the entity developing the Virginia Gas Project.

QLE entered into the Securities Exchange Agreement with a third party, effective as of March 29, 2026, which resulted in the deconsolidation of Skyline (Note 21). QLE retained approximately 8.6% percent of the outstanding Class A common and preferred shares of Skyline immediately following deconsolidation.

***Our Subsidiaries and Segments***

We operate principally through our subsidiaries. ASP Isotopes Guernsey Limited (the holding company for our subsidiaries in the Cayman Islands, South Africa, Iceland and the United Kingdom) is focused on the development and commercialization of high-value, low-volume isotopes for highly specialized end markets (such as C-14, Mo-100, and Si-28). ASP Isotopes UK Ltd is the owner of our technology.

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***QLE***. In September 2023, we formed QLE, which also has subsidiaries in the United Kingdom (Quantum Leap Energy Limited) and South Africa (Quantum Leap Energy (Pty) Limited), to focus on the development and commercialization of advanced nuclear fuels, such as HALEU and Lithium-6. QLE's direct wholly owned subsidiary QLE UK, has its operations in the United Kingdom. QLE UK's direct wholly owned subsidiary, QLE South Africa, has its operations in South Africa. QLE also formed QLE SPE Borrower, as a wholly owned subsidiary to act as a special purpose borrower for a loan transaction with TerraPower, a US nuclear innovation company. The QLE SPE Borrower has formed a subsidiary in South Africa to act as the project company for a proposed new uranium enrichment facility at Pelindaba, South Africa.

QLE's mission is to address perceived gaps in the nuclear fuel cycle, promote safe nuclear power, and enhance the sustainability of the nuclear fuel cycle for advanced nuclear reactors and fusion systems, as well as the existing nuclear fleet. We believe that many advanced nuclear reactors, including SMRs, will rely on fuels with higher uranium enrichment levels, specifically HALEU, which we intend to produce. QLE also intends to produce high-isotopic purity fuel feedstock, such as Lithium-6, for fusion reactors, and by extension, Lithium-7 for Light Water Reactor control. These fuels may enable greater efficiency, compact reactor footprints, and lengthened operational cycles between refueling. Given the flexible nature of our enrichment technology and integrated value chain approach, QLE also intends to make available LEU+ to the existing fleet of nuclear reactors currently running on LEU, thus enabling existing reactors to lengthen the time between refueling, cut costs and boost power output.

As previously announced, our board of directors intends to pursue the separation of our Nuclear Fuels business and Specialist Isotopes and Related Services business in two independent companies. The regulatory landscape and supply chain for nuclear fuel production differs significantly from that of medical isotopes, hence we and QLE have different business models and we believe that both companies would benefit if QLE is independently managed and financed. We plan to effect the separation through a listing of QLE in a transaction that results in QLE existing as a separate public company with shares listed on a U.S. national securities exchange and a portion of QLE's common equity being distributed to our stockholders as of a to-be-determined future record date. Although no assurance can be given, our goal is to list QLE on such exchange, subject to market conditions, obtaining applicable approvals and consents, and complying with applicable rules and regulations and public market trading and listing requirements. In November 2025, we announced that QLE had confidentially submitted a draft registration statement on Form S-1 to the SEC relating to the proposed initial public offering of QLE's Class A common stock. While we currently expect that a listing of QLE as a separate public company is the most likely separation transaction, our board of directors remains committed to maximizing shareholder value creation, and will continue to evaluate other options for separation to maximize shareholder value.

We entered into a number of agreements with QLE, including a License Agreement, pursuant to which QLE has licensed from us the rights to technologies and methods used to separate U-235 and Lithium-6 (including but not limited to the QE and ASP technologies) in exchange for a perpetual royalty in the amount of 10% of all future QLE revenues, and an EPC Services Framework Agreement, pursuant to which we will provide services for the engineering, procurement and construction of one or more turnkey U-235 and Lithium-6 enrichment facilities in locations to be identified by QLE and owned or leased by QLE, and commissioning, start-up and test services for each such facility, subject to the receipt of all applicable regulatory approvals, permits, licenses, authorizations, registrations, certificates, consents, orders, variances and similar rights.

***PET Labs***. We have a 51% ownership stake in PET Labs, a South African radiopharmaceutical operations company focused on the production of fluorinated radioisotopes and active pharmaceutical ingredients, through which we entered the downstream medical isotope production and distribution market. Under the terms of the Share Purchase Agreement pursuant to which we acquired the shares in PET Labs, we agreed to pay a total of $2.0 million for the shares in two installments, which has been paid in full as of December 2025. In addition, we have an option to purchase the remaining 49% of the outstanding equity in PET Labs, exercisable until January 31, 2027, for $2.2 million.

***East Coast Nuclear Pharmacy.*** In October 2025, we completed the acquisition of East Coast Nuclear Pharmacy ("ECNP"). Pursuant to the terms of the agreement, we acquired 100% of the issued and outstanding membership interests for total purchase consideration of $2.5 million of which $2.0 million was paid up front in cash and the remaining $0.5 million was deferred through the issuance of notes payable that are to be repaid by June 30, 2026.

***Numed Diagnostics, LLC ("Numed").*** In January 2026, the Company acquired 60% of the issued and outstanding membership interests of Numed for $0.8 million. Numed is an independent radiopharmacy dedicated to nuclear medicine and the science of radiopharmaceutical production. In addition to the purchase consideration, the Company has an option to purchase the remaining 40% of the issued and outstanding membership interests within two years following the closing for an agreed consideration totaling $0.5 million.

***Renergen Acquisition.*** On January 6, 2026, ASP Isotopes acquired all of the issued and outstanding Renergen ordinary shares from Renergen shareholders in exchange for shares of our common stock through the implementation of the Scheme in accordance with Sections 114 and 115 of the South African Companies Act, No. 71 of 2008, resulting in the issuance of an aggregate of 14,270,000 shares of our common stock. As a result of the transactions contemplated by the Scheme, the Renergen ordinary shares, which were publicly traded on the Johannesburg Stock Exchange (JSE: REN) and the Australian Securities Exchange (ASX:RLT), were delisted and Renergen became a wholly owned subsidiary of ASP Isotopes.

Renergen is South Africa's leading onshore natural gas explorer and the first integrated producer of both liquid helium and LNG, both of which are produced from the large natural gas reserve base that underpins Renergen's Virginia Gas Project. The Virginia Gas Project includes (i) the liquefaction of natural gas into LNG, (ii) the separation of helium from natural gas, and (iii) the further liquefaction of helium into 99.999% pure liquid helium. This liquefaction and separation takes place at Renergen's Virginia Gas Plant in the Free State Province of South Africa. Based on the drilled and flow-tested wells, Renergen's average helium concentration exceeds 3.0%, which is well above typical conventional natural gas reservoirs containing helium in small concentrations (less than 0.5%).

Renergen's principal asset is its 94.5% equity ownership in Tetra4, which holds South Africa's first and only onshore petroleum Production Right and is the entity developing the Virginia Gas Project. Phase 1 of the Virginia Gas Project has commenced commercial LNG operations. The Virginia Gas Project benefits from favorable supply and demand trends in both the LNG and liquid helium sectors. The LNG is and will continue to be sold domestically in South Africa into a market suffering energy and natural gas shortages, and we plan to sell helium directly to global customers at a time when the world is suffering helium supply shortages, which have been further exacerbated by the ongoing United States-Israel-Iran war. We believe that it was for these two reasons that the Virginia Gas Project was conditionally approved to be funded by the U.S. International Development Finance Corporation ("DFC") as part of the U.S.'s initiative

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to ensure new helium supply comes online as aerospace and the semiconductor industry increase helium requirements in the face of diminished supply, while increasing South Africa's domestic energy supply.

Helium is a vital and irreplaceable element in many modern industries because it is both chemically and electrically inert and, when in liquid form, is the coldest substance known to man at 3 degrees Kelvin (minus 454.3 degrees Fahrenheit). For these reasons, it can be used in the manufacture of semiconductors, to purge laboratory or manufacturing environments, act as a fuel propellant for other cryogenic fuels, and/or provide deep cryogenic cooling. It is commonly used in space exploration and rocketry, high-level physics experiments (e.g., particle accelerators, quantum mechanics), medical science within MRI devices, fiber optic cable production, commercial diving gas, specialized welding, coolant for nuclear power stations and lifting balloons.

We believe that Renergen's LNG supply can play an important role in reducing South Africa's relatively high carbon emissions by being the first, and currently the only, LNG supplier in the country. According to Energy Institute (2024), coal has a 69% share of national primary energy consumption, with gas only around 3.5%. As such, according to the World Bank, South Africa ranks as the fifth-worst carbon emissions country per kilogram per purchasing power parity of gross domestic product ("GDP"). This ranking is largely due to South Africa's high reliance on low-grade coal to provide electricity, supplemented by Sasol's use of coal to liquids technology. Sasol Limited is one of the country's largest energy suppliers and operator of the natural gas pipeline supplying gas from Mozambique into Johannesburg. LNG is a significantly lower carbon-emitting fuel than either of coal (by 50%) and diesel (25%), upon combustion. Therefore, the introduction of Renergen's LNG into South Africa's energy supply mix, including the possible direct substitution of Renergen's LNG for first diesel, and then potentially coal, may help reduce South Africa's overall carbon emissions intensity as the country moves towards its net zero carbon emissions targets by 2050.

***Investments in Early Stage Drug Development Companies***

***IsoBio***. On July 28, 2025, we purchased 2,000,000 shares of IsoBio Series Seed-1 Preferred Stock at $2.50 per share for a total aggregate purchase price of $5.0 million. IsoBio is a U.S.-based radiotherapeutic development company focused on developing a broad pipeline of mAb-based radioisotope therapeutics targeting both derisked and novel tumor antigens for patients in need of new cancer therapies. As the owner of the Series Seed-1 Preferred Stock, we have the right to designate one board member. An officer and director of ours was designated to fill that board seat. In addition, another board member of ours is a board member and executive officer of IsoBio.

***Opeongo***. On January 26, 2026, we purchased 4,356,918 shares of Opeongo Series Seed-1 Preferred Stock at $2.2952 per share for a total aggregate purchase price of $10.0 million. Opeongo is a biotechnology company developing novel therapeutics using extracellular matrix modulation to target fibrosis, inflammation, and cancer. Opeongo was co-founded by David Baram, Ph.D. who serves as Opeongo's Chief Executive Officer and director. As the owner of the Series Seed-1 Preferred Stock, we have the right to designate one board member. An officer and director of ours was designated to fill that board seat. In addition, another board member of ours is a board member and executive officer of Opeongo.

***Agreements with TerraPower LLC***

On April 4, 2024, we entered into the TerraPower Agreement with TerraPower to develop a conceptual design, refined cost/schedule/financing, risk register, and term sheet for a HALEU facility. The TerraPower Agreement may be terminated for (a) breach or default, (b) our convenience or (c) TerraPower's convenience. TerraPower is obligated to make all payments for milestones completed by us and these payments are nonrefundable.

On October 18, 2024, we signed the TerraPower Term Sheet that provides for the execution of two definitive agreements: (1) an agreement pursuant to which TerraPower will provide funding for our construction of a uranium enrichment facility capable of producing HALEU using our proprietary aerodynamic separation process technology to be located in the Republic of South Africa and (2) An agreement pursuant to which we will deliver to TerraPower the full capacity of the enrichment facility.

In May 2025, we entered into the TerraPower Loan Agreement, which provides conditional commitments from TerraPower to us through one of our wholly-owned U.S.-based subsidiaries for a multiple advance term loan totaling $22.0 million for the purpose of partially funding the construction of a proposed new uranium enrichment facility in South Africa. The total loan amount is inclusive of a 10% original issue discount on each disbursement and carries a fixed interest rate of 10% per annum. Per the terms of the TerraPower Loan Agreement and subject to the satisfaction of various conditions precedent to disbursements (including receiving all required licenses and permits to perform uranium enrichment in South Africa), we will receive aggregate loan disbursements of $20.0 million. Such loan matures on May 16, 2032. Interest will begin accruing upon each milestone disbursement we receive and will be added to the principal balance until November 2027. Principal and interest payments will be made in 60 equal installments beginning in November 2027. We plan to request drawdowns on this loan beginning in the third quarter of 2026.

In addition to the TerraPower Loan Agreement, in May 2025, we and TerraPower have entered into two supply agreements for the HALEU expected to be produced at our uranium enrichment facility. The initial core supply agreement is intended to support the supply of the required first fuel cores for the initial loading of TerraPower's Natrium project in Wyoming. The long-term supply agreement is a 10-year supply agreement of up to a total of 150 metric tons of HALEU, commencing in 2028 through end of 2037.

***Financings***

In June 2025, we issued 7,518,797 shares of common stock at $6.65 per share in a registered direct offering resulting in net proceeds of approximately $46.8 million after deducting underwriting discounts, commissions and offering expenses.

In July 2025, we issued 7,500,000 shares of common stock at $8.00 per share in a registered direct offering resulting in net proceeds of approximately $56.3 million after deducting underwriting discounts, commissions and offering expenses.

In October 2025, we issued 17,167,380 shares of common stock in a registered offering at the offering price of $12.25 per share, for net proceeds of approximately $199.3 million, after deducting underwriting discounts and commissions and estimated offering expenses.

On November 19, 2025, QLE received gross proceeds of $72.2 million through the issuance of convertible promissory notes with a stated interest rate of 8% (the "2025 Notes"). The maturity date of the 2025 Notes is November 19, 2030. The 2025 Notes automatically

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convert into common shares upon QLE's closing of an IPO or other qualifying public transaction at 80% of the share price taking into consideration a valuation cap. In connection with the issuance of the 2025 Notes, QLE's outstanding convertible promissory notes originally issued in March 2024 and June 2024 automatically converted into 2025 Notes with a value of $147.7 million. QLE received $10.0 million in gross proceeds from American Ventures LLC, Series IX Quantum Leap and $30.0 million in gross proceeds from ASP Isotopes, its parent.

On January 6, 2026, the Company issued 14,270,000 Consideration Shares in connection with the acquisition of Renergen.

On March 29, 2026, QLE, entered into an Exchange Agreement with a third party investor in which the parties agreed to exchange 1,995,000 Class B common shares owned by QLE for 1,995,000 Class A shares owned by the third party investor, on a one-for-one basis. This resulted in QLE's ownership in Skyline decreasing to under 10%.

**Other Contractual Obligations** 

We enter into contracts in the normal course of business for testing, manufacturing and other services and products for operating purposes. These contracts do not contain any minimum purchase commitments and are cancelable by us upon prior notice. For additional details regarding our contractual obligations, see Note 11 "Commitments and Contingencies" and Note 12 "Leases" to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

**Components of Results of Operations**

***Revenue***

Effective with the acquisition of 51% of PET Labs in the fourth quarter of 2023, we started recognizing revenue from the sale of nuclear medical doses for PET scanning. Beginning in the fourth quarter of 2025, we started recognizing revenue from the sale of nuclear medical doses for SPECT scanning. Effective with the acquisition of 100% of Renergen in the first quarter of 2026, we started recognizing revenue from the sale of LNG.

***Cost of Revenue***

Cost of revenue associated with the sale of nuclear medical doses for PET scanning and the sale of LNG consist of labor, processing costs, delivery and materials.

***Operating Expenses***

Our operating expenses consist of (i) research and development expenses and (ii) selling, general and administrative expenses.

***Research and Development***

Our research and development expenses consist primarily of direct and indirect costs incurred in connection with the development activities for our future isotopes.

Direct costs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•external research and development expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs related to designing the development processes of isotope production.

Indirect costs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•personnel-related costs, which include salaries, payroll taxes, employee benefits, and other employee-related costs, including stock-based compensation expense, for personnel engaged in research and development functions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•facilities and other various expenses.

Research and development expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received.

We expect that our research and development expenses will increase substantially for the foreseeable future as we continue the development of our future isotopes. We cannot determine with certainty the timing of initiation, the duration or the completion costs of development activities. Actual development timelines, the probability of success and development costs can differ materially from expectations.

We will need to raise substantial additional capital in the future. In addition, we cannot forecast which future isotopes may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

Our research and development expenses may vary significantly based on a variety of factors, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the scope, rate of progress, expense and results of our development activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the phase of development of our future isotopes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing, receipt, and terms of any approvals from applicable regulatory authorities including the FDA and foreign regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•significant and changing government regulation and regulatory guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the cost and timing of designing the development processes of isotope production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the extent to which we establish additional strategic collaborations or other arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of any business interruptions to our operations or to those of the third parties with whom we work.

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A change in the outcome of any of these variables with respect to the development of any of our future isotopes could significantly change the costs and timing associated with the development of that future isotope.

***Selling, General and Administrative***

Selling, general and administrative expenses consist primarily of personnel-related costs, which include salaries, payroll taxes, employee benefits, and other employee-related costs, including stock-based compensation expense, for personnel in executive, sales, finance and other administrative functions. Other significant costs include legal fees relating to corporate matters, professional fees for accounting and consulting services and facility-related costs.

We expect that our ongoing selling, general and administrative expenses will increase substantially for the foreseeable future to support our increased research and development activities and increased costs of operating as a public company and in building our internal resources. These increased costs will include increased expenses related to audit, legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums and investor and public relations costs associated with operating as a public company.

***Segment Information***

Beginning in 2024, primarily as a result of increased business activities of our subsidiary, QLE, we had two operating segments: (i) nuclear fuels, and (ii) specialist isotopes and related services. Beginning in August 2025, primarily as a result of the acquisition of Skyline, the Company had three operating segments: (i) nuclear fuels, (ii) specialist isotopes and related services, and (iii) construction services. Beginning in the first quarter of 2026, primarily as a result of the acquisition of Renergen and the deconsolidation of Skyline, we have three operating segments: (i) nuclear fuels, (ii) specialist isotopes and related services, and (iii) Helium and LNG. Our prior "construction services" segment is shown below as "discontinued operations" due to the deconsolidation of Skyline.

The specialist isotopes and related services segment is focused on research and development of technologies and methods used to separate high-value, low-volume isotopes (such as C-14, Mo-100 and Si-28) for highly specialized target end markets other than advanced nuclear fuels, including pharmaceuticals and agrochemicals, nuclear medical imaging and semiconductors, as well as services related to these isotopes, and this segment includes operations of PET Labs, Numed, and ECNP.

The nuclear fuels segment is focused on research and development of technologies and methods used to produce HALEU and Lithium-6 for the advanced nuclear fuels target end market, and this segment includes operations of QLE.

The Helium and LNG segment is focused on the exploration, production and sale of LNG in South Africa, and this segment includes operations of Renergen.

The financial information is regularly reviewed by the chief operating decision maker ("CODM") in deciding how to allocate resources. Our CODM is our chief executive officer. The CODM regularly reviews any asset information by operating segment and, accordingly, asset information is reported on a segment basis.

The following table shows total assets by segment and a reconciliation to the consolidated financial statements as of March 31, 2026 and December 31, 2025 (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| **Segment assets:** |  |  |
| Specialist isotopes and related services | $431494 | $321190 |
| Nuclear fuels | 90676 | 94252 |
| Helium and LNG | 65499 |  |
| Discontinued operations |  | 82578 |
| Total assets | $587669 | $498020 |

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Select information from the consolidated statements of operations and comprehensive loss as of the three months ended March 31, 2026 and 2025 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Revenues** | **Revenues** | **Net Loss Before Allocation to Noncontrolling Interest** | **Net Loss Before Allocation to Noncontrolling Interest** |
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **Segment** | **2026** | **2025** | **2026** | **2025** |
| Specialist isotopes and related services | $3386 | $1102 | $(10590) | $(6367) |
| Nuclear fuels | 200 |  | (6113) | (2094) |
| Helium and LNG | 594 |  | (10003) |  |
|  | $4180 | $1102 | $(26706) | $(8461) |

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**Results of Operations**

***Comparison of the Three Months Ended March 31, 2026 and 2025***

The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |  |
|  | **2026** | **2025** | **Change** |
| Revenue | $4180 | $1102 | $3078 |
| Cost of revenue | 2514 | 775 | 1739 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 1666 | 327 | 1339 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 5263 | 1530 | 3733 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 21291 | 6749 | 14542 |
| Total operating expenses | 26554 | 8279 | 18275 |
| Other (expense) income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange transaction loss | (3725) | (61) | (3664) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of share liability |  | 12 | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes payable | (568) | (957) | 389 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of investments | 1126 |  | 1126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 3047 | 513 | 2534 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1729) | (87) | (1642) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income |  |  |  |
| Total other (expense) income | (1849) | (580) | (1269) |
| Loss before income tax expense | $(26737) | $(8532) | $(18205) |

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***Revenue and Cost of Revenue***

We have recognized revenue of our radiopharmacies from the sale of nuclear medical doses for PET and SPECT scanning of $3.4 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively. With the acquisition of Renergen in January 2026, we recognized revenue from the sale of LNG of $0.6 million for the three months ended March 31, 2026. We also recognized $0.2 million in collaboration revenue from TerraPower for the three months ended March 31, 2026.

In addition, we have recognized the related cost of revenue of our radiopharmacies and Renergen for the same periods. The cost of revenue was $2.5 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively. The increase in cost of revenue of $1.7 million was primarily due to the acquisitions of ECNP and Numed of $0.8 million and the acquisition of Renergen of $0.8 million.

***Research and Development Expenses***

The following table summarizes our research and development expenses for the three months ended March 31, 2026 and 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |  |
|  | **2026** | **2025** | **Change** |
| Personnel-related costs | $2576 | $519 | $2057 |
| Manufacturing engineering | 91 | 190 | (99) |
| Consulting and professional | 1136 |  | 1136 |
| Facility and depreciation expenses | 1351 | 670 | 681 |
| Other expenses | 109 | 151 | (42) |
| Total research and development expenses | $5263 | $1530 | $3733 |

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Research and development expenses were $5.3 million for the three months ended March 31, 2026, compared to $1.5 million for the three months ended March 31, 2025. The overall increase of $3.7 million was primarily due to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in personnel-related costs of $2.1 million due to an increase in headcount and salaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in facility and depreciation expenses of $0.7 million due to an increase in space dedicated to development, noncapitalized expenses and repairs and maintenance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in contract services and consulting expenses of $1.1 million in order to optimize commercial production.

***Selling, General and Administrative Expenses***

Selling, general and administrative expenses were $21.3 million for the three months ended March 31, 2026, compared to $6.7 million for the three months ended March 31, 2025. The overall increase of $14.5 million was primarily due to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in personnel-related costs of $6.1 million primarily due to an increase in headcount and salaries and the acquisition of Renergen in January 2026 and ECNP in October 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in professional fees of $2.8 million primarily due to corporate development activity and the acquisition of Renergen in January 2026 and ECNP in October 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in facility and depreciation expenses of $2.1 million due to an increase in space dedicated to development, noncapitalized expenses and repairs and maintenance and the acquisition of Renergen in January 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in employee travel and related expenses of $0.3 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an increase in other general and administrative office expenses of $2.6 million, which includes expense from the acquisition of Renergen in January 2026 and ECNP in October 2025.

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***Other (Expense) Income***

Other expense for the three months ended March 31, 2026 was $1.8 million, which includes interest income of $3.0 million and income from a change in the fair value of our investments of $1.1 million, partially offset by an expense of $0.6 million due to change in fair value of the convertible notes payable, interest expense of $1.7 million and a foreign exchange transaction loss of $3.7 million.

Other expense for the three months ended March 31, 2025 was $0.6 million, which includes a $1.0 million change in fair value of the convertible notes payable issued in March and June 2024 and a foreign exchange transaction loss of $0.1 million, partially offset by interest income of $0.5 million.

**Non-GAAP Financial Information**

We use certain measures to assess the financial performance of our business, as well as to comply with the reporting requirements of the JSE. Certain of these measures are termed "non-GAAP measures" because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with GAAP, or are calculated using financial measures that are not calculated in accordance with GAAP. These non-GAAP measures include headline loss, and headline loss per common share.

An explanation of the relevance of the non-GAAP measure, a reconciliation of the non-GAAP measure to the most directly comparable measure calculated and presented in accordance with GAAP and a discussion of its limitations are set out below. We do not regard these non-GAAP measures as a substitute for, or superior to, the equivalent measure calculated and presented in accordance with GAAP or that calculated using financial measures that are calculated in accordance with GAAP and such measures may not be comparable to similarly titled measures used by other companies.

***Headline Loss per Share***

In connection with our secondary listing on the JSE, we are required to calculate and publicly disclose headline loss per share and diluted headline loss per share. Headline loss per share is calculated using net loss which has been determined in accordance with GAAP. Headline loss for the period represents the loss for the period attributable to our common stockholders adjusted for the remeasurements that are more closely aligned to the operating or trading results as set forth below, and headline loss per share represents headline loss divided by the weighted average number of shares of common stock outstanding.

The table below presents a reconciliation between net loss attributable to common stockholders to headline loss.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Net loss attributable to ASP Isotopes Inc. shareholders | $(6878) | $(8446) |
| Adjusted for: |  |  |
| Deemed dividend on inducement warrant for common stock |  |  |
| Change in fair value of share liability |  | (12) |
| Change in fair value of convertible notes payable | 568 | 957 |
| **Headline loss** | $**(6310)** | $**(7501)** |
| **Weighted average common shares outstanding on which the net loss attributable to ASP Isotopes Inc. shareholders per share and headline loss per share has been calculated - basic and diluted** | **121000699** | **69484200** |
| **Net loss per share, attributable to ASP Isotopes Inc. shareholders, basic and diluted** | $**(0.06)** | $**(0.12)** |
| **Headline loss per share, attributable to ASP Isotopes Inc. shareholders, basic and diluted** | $**(0.05)** | $**(0.11)** |

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The above disclosure was prepared for the purpose of complying with the reporting requirements of the JSE and includes certain non-GAAP measures, such as headline loss and headline loss per common share, and related reconciliations.

**Liquidity and Capital Resources**

***Sources of Liquidity***

We have incurred net losses and negative cash flows from operations since our inception, and we expect to continue to incur significant and increasing net losses for the foreseeable future. We have principally financed our operations to date through the issuance of our common stock, including our IPO, and the issuance of convertible notes payable.

As of March 31, 2026, we had cash and cash equivalents of $207.3 million and short-term investments of $83.2 million. We have not generated any revenue from the sale of our enriched isotopes, and our ability to generate product revenue from the sale of enriched isotopes sufficient to achieve profitability will depend on the successful development and eventual commercialization of one or more of our current or future enriched isotopes.

We recognize revenue from the sale of nuclear medical doses for PET and SPECT scanning in South Africa and the U.S. Our ability to generate product revenue from the sale of nuclear medical doses for PET and SPECT scanning sufficient to achieve profitability will depend on the successful expansion of production capabilities and commercialization of the results of that expansion. Effective with the acquisition of Renergen in January 2026, we also recognize revenue from the sale of helium and LNG. Our ability to generate revenue from the sale of helium and LNG sufficient to achieve profitability will depend on the successful expansion of production capabilities and commercialization of the results of that expansion. Renergen's outstanding debt funding may also materially affect our liquidity.

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***Future Funding Requirements***

Based on our current operating plan, we estimate that our existing cash and cash equivalents, proceeds from short-term investments, cash flow from operations, the IDC Loan, the SBSA Loan, the DFC Credit Facility and the conditionally approved senior secured debt facilities expected to be funded by the DFC and the Standard Bank of South Africa (as described below), will be sufficient to fund our operating expenses and capital expenditure requirements through at least the next 12 months from the date the financial statements are issued and beyond. However, our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of developing isotopes is costly, and the timing of progress and expenses in these development activities is uncertain.

Our future capital requirements will depend on many factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the type, number, scope, progress, expansions, results, costs and timing of, our development activities for our future isotopes, helium and LNG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the outcome, timing and costs of regulatory review of our future isotopes or for helium or LNG we produce during Phase 2 of the Virginia Gas Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs and timing of manufacturing for our future isotopes and of exploring for, developing or producing natural gas and helium;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our efforts to enhance operational systems and hire additional personnel to satisfy our obligations as a public company, including enhanced internal controls over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs associated with hiring additional personnel and consultants as our preclinical and clinical activities increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs and timing of establishing or securing sales and marketing and distribution capabilities, whether alone or with third parties, to commercialize future isotopes or with respect to LNG and helium we produce at the Virginia Gas Plant for which we may obtain regulatory approval, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of construction of Phase 2, which based on our latest cost estimate is expected to be approximately $1.16 billion (including borrowing costs and general corporate costs during construction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the price at which we sell our LNG and liquid helium;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•unforeseen plant disruptions, operational issues and the cost and availability of raw materials, including current supply chain issues, related to the Virginia Gas Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to achieve sufficient market acceptance, coverage and adequate reimbursement from third-party payors and adequate market share and revenue for any approved products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the terms and timing of establishing and maintaining collaborations, licenses and other similar arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of obtaining, expanding, maintaining and enforcing our patent and other intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs to list QLE as a separate public company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs associated with any products or technologies that we may in-license or acquire.

Developing and commercializing isotopes is a time-consuming, expensive and uncertain process that takes years to complete, and we may never achieve the necessary results required or obtain applicable regulatory approval for any isotopes or generate revenue from the sale of any future isotopes (assuming applicable regulatory approval is received). In addition, our future isotopes (assuming applicable regulatory approval is received) may not achieve commercial success. Our commercial revenues, if any, will be derived from sales of isotopes that we do not expect to be commercially available until at least the middle of 2026. If we receive permits and licenses to enrich U-235 (which in itself is highly uncertain), we do not expect U-235 to be commercially available for at least several years, if ever. As a result, we may need substantial additional financing to support our continuing operations and further the development of and commercialization of our future isotopes.

Expansion of the production and distribution of nuclear medical doses for PET scanning is a time-consuming, expensive and uncertain process that may take years to complete. As a result, we may need substantial additional financing to support our continuing operations and further the development of and commercialization of future nuclear medical doses for PET scanning.

Large amounts of capital are required to support the growth in our business and operations in South Africa, including to maintain and progress toward full commercial operation of Phase 1 of the Virginia Gas Project, and for the construction and development of Phase 2 of our Virginia Gas Project, and long-term production and processing requires both significant capital expenditure and ongoing maintenance expenditure. Our revenues related to the sale of helium and LNG may vary significantly from period to period as a result of changes in volumes of production sold and commodity prices. Natural gas prices have historically been volatile. Lower commodity prices may not only decrease our revenues, but also potentially the amount of natural gas that we can produce economically. We plan to add reserves through drilling. Our ability to add reserves through drilling projects is dependent on many factors, including our ability to borrow or raise capital and procure materials, services and personnel. Phase 2 of the Virginia Gas Project requires a significant amount of capital and is currently estimated to cost approximately $1.16 billion (including borrowing costs and general corporate costs during construction) based on our latest cost estimate, which could change based on inaccurate assumptions and changing economic and operating conditions. We anticipate funding this amount through debt, such as the up to $500 million of senior secured debt provided by the DFC, which has been conditionally approved, pursuant to the delineated application review process of the DFC. Additionally, the Standard Bank of South Africa has conditionally approved an additional $250 million of senior secured debt funding for Phase 2, which is anticipated to be funded substantially concurrently with the aforementioned DFC funding. As a result, we may need substantial additional financing to support our continuing operations, ramp up production of Phase 1, and further the development of Phase 2 and commercialization of the Virginia Gas Project.

Until such time as we can generate significant revenue from sales of our future isotopes, nuclear medical doses for PET and SPECT scanning and sales of helium and LNG, if ever, we expect to finance our cash needs through public or private equity or debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. Our ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting severely diminished liquidity and credit

------

availability, increased interest rates, inflationary pressures, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise funds through collaborations, or other similar arrangements with third parties, we may have to relinquish valuable rights to our future isotopes, future helium and LNG production and sales, future revenue streams or research programs or may have to grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market our future isotopes and helium and LNG production even if we would otherwise prefer to develop and market such isotopes, helium and LNG ourselves.

**Cash Flows**

The following table summarizes our sources and uses of cash for each of the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Net cash provided by (used in): |  |  |
| Operating activities<sup>(1)</sup> | $(17760) | $(3170) |
| Investing activities | (97183) | (2359) |
| Financing activities<sup>(2)</sup> | 43168 | (225) |
| Change in cash and cash equivalents | $(71775) | $(5754) |

---

(1) includes cash flows of discontinued operations of $1.1 million for the three months ended March 31, 2026.

(2) includes cash flows provided by discontinued operations of $45.9 million and cash flows used in continuing operations of $2.7 million for the three months ended March 31, 2026.

***Operating Activities*** 

Net cash used in operating activities was $17.8 million for the three months ended March 31, 2026, including $1.1 million from discontinued operations, for the three months ended March 31, 2026 and was primarily due to our net loss from continuing operations of $26.7 million, adjusted for a gain on deconsolidation of $19.3 million, a change in right-of-use assets primarily from the acquisition of Renergen in January 2026, stock-based compensation expense of $4.4 million, amortization of right-of-use asset of $3.3 million, depreciation and amortization expense of $3.1 million, change in fair values of investments of $1.1 million, change in fair values for the convertible notes payable of $0.6 million, noncash interest on the note receivable of $2.5 million and a $6.1 million change in our operating assets and liabilities.

Net cash used in operating activities was $3.2 million for the three months ended March 31, 2025, and was primarily due to our net loss of $8.5 million, adjusted for stock-based compensation expense of $1.9 million, amortization of right-of-use asset of $0.1 million, depreciation expense of $0.1 million, issuance of common stock to a consultant with a fair value of $0.2 million, change in fair values for the convertible notes payable of $1.0 million and a $2.0 million change in our operating assets and liabilities.

***Investing Activities***

Net cash used in investing activities was $97.2 million for the three months ended March 31, 2026 and was comprised of purchase of short-term investments of $35.4 million, purchase of Opeongo investment of $10.0 million, cash disposed of upon deconsolidation of Skyline of $50.7 million and the purchases of machinery and equipment, vehicles and construction in progress of $6.1 million, partially offset by cash provided by acquisitions of $4.9 million.

Net cash used in investing activities was $2.4 million for the three months ended March 31, 2025 and was comprised of the purchases of machinery and equipment, vehicles and construction in progress.

***Financing Activities***

Net cash provided by financing activities was $43.2 million for the three months ended March 31, 2026, including $45.9 million from discontinued operations, and was comprised primarily of $0.1 million in proceeds from the issuance of notes payable, partially offset by principal payments on debt, finance leases and bank loans of $1.8 million and distribution to noncontrolling interest in VIE of $0.3 million.

Net cash used in financing activities was $0.2 million for the three months ended March 31, 2025, and was comprised primarily of principal payments on debt, finance leases and bank loans of $0.3 million on the note payable related to a financed corporate insurance policy.

**Contractual Obligations and Commitments** 

*Leases*

We lease our main facility in Pretoria, South Africa under a lease with a base monthly rent payment of approximately $9,000 with a term expiring on December 31, 2030. We also lease additional space on a short term basis in Pretoria, South Africa under a lease with a base monthly rent payment of approximately $18,000 with a term that expired on February 28, 2026, and we are continuing to occupy that space under the monthly extensions. We also lease additional space in Pretoria, South Africa under leases with a base monthly rent payment of approximately (i) $2,000 with a term expiring on October 30, 2026 and (ii) $3,000 with a term expiring on May 31, 2028.

Renergen enters into lease agreements as a lessor whereby customers lease equipment and infrastructure required for the

delivery, storage, utilization and conversion of LNG to natural gas. Renergen operates in a facility in Sandton, South Africa under a lease with a base monthly rent payment of approximately $21,000 with a term that expires on May 31, 2029.

------

PET Labs Pharmaceuticals operates in a facility in Pretoria, South Africa under a lease with a base monthly rent payment of approximately $27,000 with a term expiring on January 31, 2056. PET Labs Pharmaceuticals also rents space at a local hospital in Pretoria, South Africa for which there was a lease with a base monthly rent payment of approximately $5,000 which expired on December 31, 2023 and operates based on monthly extensions.

*Promissory Note and Loans*

In August 2025, the Company executed a promissory note payable with a finance company to fund a general liability insurance policy for $0.2 million. The Company assumed a promissory note in connection with the acquisition of Renergen in January 2026 to fund a general liability insurance policy for approximately $1.1 million. Periodically, the Company enters into loans to purchase motor vehicles and certain equipment. For the three months ended March 31, 2026, the Company entered into new loans totaling $0.1 million. These loans are secured by the underlying assets included in property and equipment. Refer to Note 9 ("Debt") to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for information regarding interest rates and maturities, as well as information regarding Renergen's debt obligations and QLE's convertible notes.

*Renergen Contractual Obligations and Commitments*

As previously discussed, we acquired Renergen (and its indirect 94.5% equity ownership in Tetra4) in January 2026, which entities are subject to certain contractual obligations and commitments discussed further below. See Note 9 "Debt" for additional information.

*Certain Commitments to the South Africa Competition Commission*

In connection with our acquisition of Renergen, we made certain commitments to the South Africa Competition Commission designed to address public interest concerns and promote historically disadvantaged persons ("HDP") and worker ownership. These commitments to the South Africa Competition Commission include: (1) a moratorium on retrenchments of workers at Renergen's operations for a period of two years from the merger closing date; and (2) a commitment to implement, within 12 months of the merger closing date, a trust for the benefit of qualifying workers employed by Renergen and certain HDP communities and people located within the production rights area of the Virginia Gas Project (the "HDP and Worker Trust"). Upon the effective implementation date of the HDP and Worker Trust, the HDP and Worker Trust is expected to hold an aggregate 5% of the issued shares in Tetra4 and Renergen is expected to hold 89.5% of the issued shares in Tetra4, subject to change in accordance with any capital raising activities of the Company, Renergen and/or Tetra4 following the merger closing date. In conjunction with the establishment of the HDP and Workers Trust, Tetra4 will issue an offsetting vendor financed loan to the HDP and Worker Trust. The HDP and Worker Trust will continue for the duration of the Production Right held by Tetra4, which will expire during 2042, unless extended.

*Normal Course Operating Agreements*

In addition, we entered into contracts in the normal course of business with vendors for services and products for operating purposes. These contracts do not contain any minimum purchase commitments and generally provide for termination after a notice period and, therefore, are not considered long-term contractual obligations. Payments due upon cancellation consist only of payments for services provided and expenses incurred up to the date of cancellation.

**Off-balance Sheet Arrangements**

We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

**Critical Accounting Policies and Significant Judgments and Estimates**

See Note 2 to our condensed consolidated financial statements which discusses new accounting pronouncements.

------

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

We are a smaller reporting company as defined by Item 10 of Regulation S-K and are not required to provide the information otherwise required under this item.

**Item 4. Controls and Procedures.**

***Disclosure Controls and Procedures***

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, mean controls and other procedures of a company that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company on the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgement in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of March 31, 2026, our Chief Executive Officer and Chief Financial Officer concluded that, as a result of material weaknesses identified in connection with our evaluation of our internal control over financial reporting, as previously disclosed in our Annual Report on Form 10-K (as amended) for the year ended December 31, 2025, our disclosure controls and procedures were not effective as of March 31, 2026.

***Management's Plan for Remediation of the Material Weakness***

As previously described in Part II, Item 9A of our Annual Report, we began implementing a remediation plan to address the material weaknesses mentioned in such Annual Report. In order to remediate the material weaknesses, we expect to enhance our formal documentation over internal control procedures and management controls infrastructure to allow for more consistent execution of control procedures and hire additional accounting, and finance and information technology resources or consultants with public company experience. The material weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

Although we intend to complete the remediation process as promptly as possible, we cannot at this time estimate how long it will take to remediate the material weaknesses described in the Annual Report. We may discover additional material weaknesses that require additional time and resources to remediate, and we may decide to take additional measures to address the material weaknesses or modify the remediation steps described above.

***Changes in Internal Control***

Except for the activities taken related to the remediation of the material weaknesses described in the Annual Report, there has been no change in our internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

------

**PART II-OTHER INFORMATION**

**Item 1. Legal Proceedings.**

Except as described in Note 11 ("Commitments and Contingencies") to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q, we are not currently party to, and our property is not currently the subject of, any material pending legal matters or claims.

In addition, from time to time, we may become subject to arbitration, litigation or claims arising in the ordinary course of business. The results of any current or future claims or proceedings cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and litigation costs, diversion of management resources, reputational harm and other factors.

**Item 1A. Risk Factors.**

In addition to the information set forth in this Form 10-Q, including under the heading "Special Note Regarding Forward-Looking Statements," the risks and uncertainties which could adversely affect our business, financial condition, results of operations and future growth prospects that we believe are most important for you to consider are discussed in "Part I, Item 1A—Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on April 10, 2026 and as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on April 30, 2026 and other reports that we filed with the SEC. The risks described in our Annual Report on Form 10-K for the year ended December 31, 2025 (as amended) and such other reports that we filed with the SEC are not the only risks we face. Additional risks and uncertainties not presently known to us or that we presently deem less significant may also impair our business operations. There have been no material changes to our risk factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 (as amended).

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

None.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

None.

**Item 5. Other Information.**

*Rule 10b5-1 Trading Plans*

During the three months ended March 31, 2026, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of ours adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

------

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| [<u>3.1</u>](https://www.sec.gov/Archives/edgar/data/1921865/000121390022062997/fs12022a1ex3-3_aspisotope.htm) | [<u>Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.3 to the Form S-1/A filed on November 9, 2022 (File No. 333-267392)).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000121390022062997/fs12022a1ex3-3_aspisotope.htm) |
| [<u>3.2</u>](https://www.sec.gov/Archives/edgar/data/1921865/000147793224001964/aspi_ex32.htm) | [<u>Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K for the year ended December 31, 2023, filed on April 10, 2024).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000147793224001964/aspi_ex32.htm) |
| [<u>10.1\*</u>](aspi-ex10_1.htm) | [<u>First Addendum to the Term Loan Facility Agreement, between ASP Isotopes Inc., Renergen Limited and ASP Isotopes South Africa Proprietary Limited, dated January 15, 2026.</u>](aspi-ex10_1.htm) |
| [<u>10.2\*</u>](aspi-ex10_2.htm) | [<u>Second Addendum to the Term Loan Facility Agreement, between ASP Isotopes Inc., Renergen Limited and ASP Isotopes South Africa Proprietary Limited, dated February 26, 2026.</u>](aspi-ex10_2.htm) |
| [<u>10.3\*</u>](aspi-ex10_3.htm) | [<u>Third Addendum to the Term Loan Facility Agreement, between ASP Isotopes Inc., Renergen Limited and ASP Isotopes South Africa Proprietary Limited, dated April 16, 2026.</u>](aspi-ex10_3.htm) |
| [<u>10.4</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_40.htm) | [<u>Loan Agreement, between Industrial Development Corporation of South Africa Limited and Tetra4 Proprietary Limited, dated December 20, 2021 (incorporated by reference to Exhibit 10.40 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_40.htm) |
| [<u>10.5</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_41.htm) | [<u>Amendment, dated October 10, 2023, to Loan Agreement between Industrial Development Corporation of South Africa Limited and Tetra4 Proprietary Limited (incorporated by reference to Exhibit 10.41 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_41.htm) |
| [<u>10.6</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_42.htm) | [<u>Amendment, dated September 1, 2025, to Loan Agreement between Industrial Development Corporation of South Africa Limited Tetra4 Proprietary Limited (incorporated by reference to Exhibit 10.42 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_42.htm) |
| [<u>10.7</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_43.htm) | [<u>Finance Agreement, between U.S. International Development Finance Corporation, as successor in interest to Overseas Private Investment Corporation, and Tetra4 Proprietary Limited, dated August 20, 2019 (incorporated by reference to Exhibit 10.43 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_43.htm) |
| [<u>10.8</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_44.htm) | [<u>Amendment No. 1 to Finance Agreement, between United States International Development Finance Corporation and Tetra 4 Proprietary Limited, dated March 30, 2020 (incorporated by reference to Exhibit 10.44 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_44.htm) |
| [<u>10.9</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_45.htm) | [<u>Amendment No. 2 to Finance Agreement, between United States International Development Finance Corporation and Tetra4 Proprietary Limited, dated April 28, 2020 (incorporated by reference to Exhibit 10.45 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_45.htm) |
| [<u>10.10</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_46.htm) | [<u>Amendment No. 3 to the Finance Agreement, between United States International Development Finance Corporation and Tetra4 Proprietary Limited, dated February 27, 2021 (incorporated by reference to Exhibit 10.46 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_46.htm) |
| [<u>10.11</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_47.htm) | [<u>Amendment No. 4 to Finance Agreement, between United States International Development Finance Corporation and Tetra4 Proprietary Limited, dated August 24, 2021 (incorporated by reference to Exhibit 10.47 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_47.htm) |
| [<u>10.12</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_48.htm) | [<u>Amendment No. 5 to Finance Agreement, between United States International Development Finance Corporation and Tetra4 Proprietary Limited, dated December 16, 2021 (incorporated by reference to Exhibit 10.48 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_48.htm) |
| [<u>10.13\*#</u>](aspi-ex10_13.htm) | [<u>Consent and Waiver, dated January 12, 2024, in connection with the Finance Agreement between U.S. International Development Finance Corporation and Tetra4 Proprietary Limited.</u>](aspi-ex10_13.htm) |
| [<u>10.14\*#</u>](aspi-ex10_14.htm) | [<u>Consent and Waiver, dated March 12, 2024, in connection with the Finance Agreement between U.S. International Development Finance Corporation and Tetra4 Proprietary Limited.</u>](aspi-ex10_14.htm) |
| [<u>10.15\*#</u>](aspi-ex10_15.htm) | [<u>Consent and Waiver, dated August 30, 2024, in connection with the Finance Agreement between U.S. International Development Finance Corporation and Tetra4 Proprietary Limited.</u>](aspi-ex10_15.htm) |
| [<u>10.16\*#</u>](aspi-ex10_16.htm) | [<u>Consent and Waiver, dated December 9, 2024, in connection with the Finance Agreement between U.S. International Development Finance Corporation and Tetra4 in Proprietary Limited.</u>](aspi-ex10_16.htm) |
| [<u>10.17\*#</u>](aspi-ex10_17.htm) | [<u>Waiver, dated April 9, 2025, in connection with the Finance Agreement between U.S. International Development Finance Corporation and Tetra4 Proprietary Limited.</u>](aspi-ex10_17.htm) |
| [<u>10.18\*#</u>](aspi-ex10_18.htm) | [<u>Consent and Waiver, dated November 25, 2025, in connection with the Finance Agreement between U.S. International Development Finance Corporation and Tetra4 Proprietary Limited.</u>](aspi-ex10_18.htm) |
| [<u>10.19</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_49.htm) | [<u>Amended and Restated Secured Term Loan Facility Agreement between Renergen Limited and the Standard Bank of South Africa Limited, dated December 12, 2025 (incorporated by reference to Exhibit 10.49 to the Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 10, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1921865/000119312526151294/aspi-ex10_49.htm) |
| [<u>10.20\*</u>](aspi-ex10_20.htm) | [<u>Production Right granted by the Republic of South Africa to Molopo South Africa Exploration and Production Proprietary Limited on September 20, 2012.</u>](aspi-ex10_20.htm) |
| [<u>10.21\*</u>](aspi-ex10_21.htm) | [<u>Amendment/Variation of a Production Right granted by the Republic of South Africa to Tetra4 Proprietary Limited on September 17, 2021.</u>](aspi-ex10_21.htm) |
| [<u>10.2</u>](aspi-ex10_22.htm)[<u>2\*</u>](aspi-ex10_22.htm) | [<u>Amendment/Variation of a Production Right granted by the Republic of South Africa to Tetra4 Proprietary Limited on March 15, 2024.</u>](aspi-ex10_22.htm) |
| [<u>10.23\*</u>](aspi-ex10_23.htm) | [<u>Exploration Right granted by the Republic of South Africa to Highland Exploration and Production Proprietary Limited on May 8, 2007.</u>](aspi-ex10_23.htm) |
| [<u>10.24\*</u>](aspi-ex10_24.htm) | [<u>Exploration Right granted by the Republic of South Africa to Highland Exploration and Production Proprietary Limited on May 26, 2009.</u>](aspi-ex10_24.htm) |
| [<u>10.25\*#</u>](aspi-ex10_25.htm) | [<u>Liquified Natural Gas Supply Agreement between Tetra4 Proprietary Limited and Consol Glass Proprietary Limited, effective as of June 24, 2022.</u>](aspi-ex10_25.htm) |
| [<u>10.26</u>](aspi-ex10_26.htm)\* | [<u>Series Seed-1 Preferred Stock Purchase Agreement, between ASP Isotopes Inc. and Opeongo, Inc., dated January 26, 2026.</u>](aspi-ex10_26.htm) |
| [<u>10.27</u>](aspi-ex10_27.htm)\* | [<u>Investors' Rights Agreement, by and among Opeongo, Inc., ASP Isotopes Inc., and the Key Holders named therein, dated January 26, 2026.</u>](aspi-ex10_27.htm) |
| [<u>10.28</u>](aspi-ex10_28.htm)\* | [<u>Right of First Refusal and Co-Sale Agreement, by and among Opeongo, Inc., ASP Isotopes Inc.,and the Key Holders named therein, dated January 26, 2026.</u>](aspi-ex10_28.htm) |
| [<u>10.29</u>](aspi-ex10_29.htm)\* | [<u>Voting Agreement, by and among Opeongo, Inc., ASP Isotopes Inc., and the Key Holders named therein, dated January 26, 2026.</u>](aspi-ex10_29.htm) |
| [<u>31.1\*</u>](aspi-ex31_1.htm) | [<u>Certification of Principal Executive Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.</u>](aspi-ex31_1.htm) |

---

------

---

| | |
|:---|:---|
| [<u>31.2\*</u>](aspi-ex31_2.htm) | [<u>Certification of Principal Financial Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.</u>](aspi-ex31_2.htm) |
| [<u>32.1\*\*</u>](aspi-ex32_1.htm) | [<u>Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](aspi-ex32_1.htm) |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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\* Exhibits filed herewith.

\*\* Exhibits furnished herewith.

+ Management contract or compensatory plan or arrangement.

# Information in this exhibit has been omitted pursuant to Item 601 of Regulation S-K.

Certain instruments defining rights of holders of long-term debt of the company are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Upon request, the company agrees to furnish to the SEC copies of such instruments.

------

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | **ASP Isotopes Inc.** | **ASP Isotopes Inc.** |
| Date: May 20, 2026 | By:  | */s/ Paul E. Mann* |
|  |  | Paul E. Mann |
|  |  | Chief Executive Officer, Executive Chairman and Director |
|  |  | (Principal Executive Officer) |
| Date: May 20, 2026 | By: | */s/ Heather Kiessling* |
|  |  | Heather Kiessling |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer**)** |

---

------

## Exhibit 10.1

**Exhibit 10.1**

**FIRST ADDENDUM TO THE TERM LOAN FACILITY AGREEMENT**

Between

**ASP ISOTOPES INCORPORATED**

("ASPI")

and

**ASP ISOTOPES SOUTH AFRICA PROPRIETARY LIMITED**

("Lender")

and

**RENERGEN LIMITED**

("Borrower")

each hereinafter referred to individually as a Party and collectively as the Parties.

------

**Table of Contents**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** | **DEFINITIONS AND INTERPRETATION** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** | **INTRODUCTION** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** | **AMENDMENT** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** | **CONFLICT** | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** | **COUNTERPARTS** | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** | **GENERAL** | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** | **SIGNATURE** | **4** |

---

------

**WHEREBY** the Parties agree as follows:

**1.** **DEFINITIONS AND INTERPRETATION**

1.1Capitalised terms used but not defined in this First Addendum shall, unless otherwise stated, bear the meanings given to them in the Term Loan Facility Agreement (as defined below).

1.2For the purposes of interpretation, this First Addendum and the Term Loan Facility Agreement shall at all times be read together.

1.3In the Term Loan Facility Agreement and the First Addendum, the following words shall, unless otherwise stated or inconsistent with the context in which they appear, bear the following meanings and other words derived from the same origins as such words (that is, cognate words) shall bear corresponding meanings:

1.4**"Initial Signature Date"** means 19 May 2025;

1.5**"Term Loan Facility Agreement"** means the written term loan facility agreement, entered into between the Parties on the Initial Signature Date, as amended from time to time; and

1.6**"Signature Date"** means the date when this First Addendum is signed by the last Party in time to do so.

**2.** **INTRODUCTION**

2.1The Parties entered into the Term Loan Facility Agreement.

2.2Pursuant to the Term Loan Facility Agreement, the Lender agreed to make available to the Borrower a loan facility in the aggregate principal amount of USD 30,000,000 to support the Borrower's operational funding requirements, including those arising from delays in implementing its Phase 1 Virginia Gas Project.

2.3In light of the Borrower's ongoing funding requirements, the Parties now wish to amend the original Term Loan Facility Agreement to (i) increase the aggregate principal amount of the loan facility from USD 30,000,000 to USD 35,500,000, and (ii) extend the Final Repayment Date.

2.4This First Addendum records and formalises the agreed amendments to the Term Loan Facility Agreement.

**3.** **AMENDMENT**

3.1With effect from the Signature Date, the Parties hereby agree to amend the following clauses in the Term Loan Facility Agreement in accordance with clause 23.2 of the Term Loan Facility Agreement, as follows:

3.1.1Clause **3.1.18** is deleted and replaced with:

*"3.1.18* ***Facility Amount*** *means the ZAR equivalent of USD 35,500,000 (thirty-five million five hundred thousand United States Dollars), to be converted by the Lender on the date of any Advance based on the ZAR to United States Dollar conversion rate quoted by the Lender's South African bank on the relevant Advance Date;"*

------

3.1.2Clause **3.1.21** is deleted and replaced with:

*"3.1.21* ***Final Repayment Date*** *means the date falling 60 (sixty) days after written demand by the Lender to the Borrower, which demand may be made at any time in the Lender's sole discretion, provided that such demand shall be in writing and delivered in accordance with the notice provisions of this Agreement;"*

3.1.3Clause **10.2** is deleted and replaced with:

*"10.2 If the Lender has not delivered a written demand contemplated in the definition of Final Repayment Date, the Borrower shall be entitled, by written notice to the Lender delivered in accordance with the notice provisions of this Agreement, to elect to repay all of the Outstandings in full, in which event such repayment shall be made within 30 (thirty) Business Days after delivery of such notice."*

**4.** **CONFLICT**

4.1This First Addendum shall be supplemental to the Term Loan Facility Agreement.

4.2In the event of any conflict between the provisions of the Term Loan Facility Agreement and any of the provisions of this First Addendum, this First Addendum shall prevail.

**5.** **COUNTERPARTS**

This First Addendum may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same agreement as at the Signature Date.

**6.** **GENERAL**

6.1No contract varying, adding to, deleting from, or cancelling this First Addendum, and no waiver of any right under this First Addendum, shall be effective unless reduced to writing and signed by or on behalf of the Parties.

6.2This First Addendum contains the entire agreement between the Parties relating to the matters recorded herein, and no Party shall be bound by any undertakings, representations, warranties, promises or the like not recorded in this First Addendum.

**7.** **SIGNATURE**

Signed on behalf of the Parties set out below, each signatory warrants that he or she has due authority to do so.

*[SIGNATURE PAGE FOLLOWS]*

------

SIGNED at <u>Pretoria</u> on this the <u>15</u> day <u>January</u> of 2026.

---

| |
|:---|
| For and on behalf of |
| **THE LENDER** |
| /s/ Mangaliso Mithi |
| Signatory: Mangaliso Mithi |
| Capacity: Regional Finance Director |
| Who warrants his authority hereto |

---

SIGNED at <u>London</u> on this the <u>15</u> day <u>January</u> of 2026.

---

| |
|:---|
| For and on behalf of |
| **ASP ISOTOPES INCORPORATED** |
| /s/ Robert Ainscow |
| Signatory: Robert Ainscow |
| Capacity: COO |
| Who warrants his authority hereto |

---

SIGNED at <u>Sandton</u> on this the <u>15</u> day <u>January</u> of 2026.

---

| |
|:---|
| For and on behalf of |
| **THE BORROWER** |
| /s/ Nick Mitchell |
| Signatory: Nick Mitchell |
| Capacity: COO |
| Who warrants his authority hereto |

---

------

## Exhibit 10.2

**Exhibit 10.2**

**SECOND ADDENDUM TO THE TERM LOAN FACILITY AGREEMENT**

Between

**ASP ISOTOPES INCORPORATED**

("ASPI")

and

**ASP ISOTOPES SOUTH AFRICA PROPRIETARY LIMITED**

("Lender")

and

**RENERGEN LIMITED**

("Borrower")

each hereinafter referred to individually as a Party and collectively as the Parties.

------

**Table of Contents**

**Table of Contents**

**1.** **DEFINITIONS AND INTERPRETATION** **3** 

**2.** **INTRODUCTION** **3** 

**3.** **AMENDMENT** **3** 

**4.** **CONFLICT** **4** 

**5.** **COUNTERPARTS** **4** 

**6.** **GENERAL** **4** 

**7.** **SIGNATURE** **4** 

**2**

------

**WHEREBY** the Parties agree as follows -

**1.** **DEFINITIONS AND INTERPRETATION**

1.1Capitalised terms used but not defined in this Second Addendum shall, unless otherwise stated, bear the meanings given to them in the Term Loan Facility Agreement (as defined below).

1.2For the purposes of interpretation, this Second Addendum and the Term Loan Facility Agreement shall at all times be read together.

1.3In the Term Loan Facility Agreement and the Second Addendum, the following words shall, unless otherwise stated or inconsistent with the context in which they appear, bear the following meanings and other words derived from the same origins as such words (that is, cognate words) shall bear corresponding meanings:

1.4**"Initial Signature Date"** means 19 May 2025;

1.5**"Term Loan Facility Agreement"** means the written term loan facility agreement, entered into between the Parties on the Initial Signature Date, as amended from time to time; and

1.6**"Signature Date"** means the date when this Second Addendum is signed by the last Party in time to do so.

**2.** **INTRODUCTION**

2.1The Parties entered into a term loan facility agreement on 19 May 2025 (the **Original Agreement**).

2.2The Parties thereafter entered into a first addendum to the Original Agreement dated 15 January 2026 (the **First Addendum**), pursuant to which the aggregate facility amount and certain repayment provisions were amended.

2.3The Original Agreement, as amended by the First Addendum, is referred to in this Second Addendum as the "Term Loan Facility Agreement".

2.4In light of the Borrower's ongoing funding requirements, the Parties now wish to further amend the Term Loan Facility Agreement to increase the aggregate principal amount of the loan facility from USD 35,500,000 to USD 39,500,000.

2.5This Second Addendum records and formalises the agreed amendments to the Term Loan Facility Agreement.

**3.** **AMENDMENT**

3.1With effect from the Signature Date, the Parties hereby agree to amend the following clauses in the Term Loan Facility Agreement in accordance with clause 23.2 of the Term Loan Facility Agreement, as follows:

3.1.1Clause **3.1.18** is deleted and replaced with:

*"3.1.18* ***Facility Amount*** *means the ZAR equivalent of USD 39,500,000 (thirty-nine million five hundred thousand United States Dollars), to be converted by the Lender on the date of any Advance based on the ZAR to United States Dollar conversion rate quoted by the Lender's South African bank on the relevant Advance Date*;"

**3**

------

4.**CONFLICT**

4.1This Second Addendum shall be supplemental to the Term Loan Facility Agreement.

4.2In the event of any conflict between the provisions of the Term Loan Facility Agreement and any of the provisions of this Second Addendum, this Second Addendum shall prevail.

5.**COUNTERPARTS**

This Second Addendum may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same agreement as at the Signature Date.

6.**GENERAL**

6.1No contract varying, adding to, deleting from, or cancelling this Second Addendum, and no waiver of any right under this Second Addendum, shall be effective unless reduced to writing and signed by or on behalf of the Parties.

6.2This Second Addendum contains the entire agreement between the Parties relating to the matters recorded herein, and no Party shall be bound by any undertakings, representations, warranties, promises or the like not recorded in this Second Addendum.

7.**SIGNATURE**

Signed on behalf of the Parties set out below, each signatory warrants that he or she has due authority to do so.

*[SIGNATURE PAGE FOLLOWS]*

**4**

------

SIGNED at <u>Sandton</u> on this the <u>25</u> day <u>February</u> of 2026.

---

| | |
|:---|:---|
| For and on behalf of | For and on behalf of |
| **THE LENDER** | **THE LENDER** |
| /s/ Mangaliso Mithi | /s/ Mangaliso Mithi |
| Signatory: | Mangaliso Mithi |
| Capacity: | Regional Finance Director |
| Who warrants his authority hereto | Who warrants his authority hereto |

---

SIGNED at <u>Dallas</u> on this the <u>26th</u> day <u>February</u> of 2026.

---

| | |
|:---|:---|
| For and on behalf of | For and on behalf of |
| **ASP ISOTOPES INCORPORATED**<br>/s/ Robert Ainscow | **ASP ISOTOPES INCORPORATED**<br>/s/ Robert Ainscow |
| Signatory: | Robert Ainscow |
| Capacity: | COO |
| Who warrants his authority hereto | Who warrants his authority hereto |

---

SIGNED at <u>Sandton</u> on this the <u>25</u> day <u>February</u> of 2026.

---

| | |
|:---|:---|
| For and on behalf of | For and on behalf of |
| **THE BORROWER** | **THE BORROWER** |
| /s/ Nick Mitchell | /s/ Nick Mitchell |
| Signatory: | Nick Mitchell |
| Capacity: | COO |
| Who warrants his authority hereto | Who warrants his authority hereto |

---

**5**

------

## Exhibit 10.3

**Exhibit 10.3**

**THIRD ADDENDUM TO THE TERM LOAN FACILITY AGREEMENT**

Between

**ASP ISOTOPES INCORPORATED**

("ASPI")

and

**ASP ISOTOPES SOUTH AFRICA PROPRIETARY LIMITED**

("Lender")

and

**RENERGEN LIMITED**

("Borrower")

each hereinafter referred to individually as a Party and collectively as the Parties.

------

**Table of Contents**

**Table of Contents**

**1.** **DEFINITIONS AND INTERPRETATION** **3** 

**2.** **INTRODUCTION** **3** 

**3.** **AMENDMENT** **3** 

**4.** **CONFLICT** **4** 

**5.** **COUNTERPARTS** **4** 

**6.** **GENERAL** **4** 

**7.** **SIGNATURE** **4** 

------

**WHEREBY** the Parties agree as follows -

**1.** **DEFINITIONS AND INTERPRETATION**

1.1Capitalised terms used but not defined in this Third Addendum shall, unless otherwise stated, bear the meanings given to them in the Term Loan Facility Agreement (as defined below).

1.2For the purposes of interpretation, this Third Addendum and the Term Loan Facility Agreement shall at all times be read together.

1.3In the Term Loan Facility Agreement and the Third Addendum, the following words shall, unless otherwise stated or inconsistent with the context in which they appear, bear the following meanings and other words derived from the same origins as such words (that is, cognate words) shall bear corresponding meanings:

1.4**"Initial Signature Date"** means 19 May 2025;

1.5**"Term Loan Facility Agreement"** means the written term loan facility agreement, entered into between the Parties on the Initial Signature Date, as amended from time to time; and

1.6**"Signature Date"** means the date when this Third Addendum is signed by the last Party in time to do so.

**2.** **INTRODUCTION**

2.1The Parties entered into the Term Loan Facility Agreement.

2.2The Parties thereafter entered into a first addendum to the Term Loan Facility Agreement dated 15 January 2026 (the **First Addendum**), pursuant to which the aggregate facility amount and certain repayment provisions were amended.

2.3The Parties thereafter entered into a second addendum to the Term Loan Facility Agreement dated 26 February 2026 (the **Second Addendum**), pursuant to which the aggregate principal amount of the loan facility was increased to USD 39,500,000.

2.4Pursuant to the Borrower's ongoing funding requirements, the Parties now wish to further amend the Term Loan Facility Agreement to increase the aggregate principal amount of the loan facility from USD 39,500,000 to USD 48,600,000.

2.5This Third Addendum records and formalises the agreed amendments to the Term Loan Facility Agreement.

**3.** **AMENDMENT**

With effect from the Signature Date, the Parties hereby agree to amend clause 3.1.18 of the Term Loan Facility Agreement in accordance with clause 23.2 of the Term Loan Facility Agreement by deleting the reference to "USD 39,500,000" and replacing it with "USD 48,600,000".

------

**4.** **CONFLICT**

4.1This Third Addendum shall supplement the Term Loan Facility Agreement.

4.2In the event of any conflict between the provisions of the Term Loan Facility Agreement and any of the provisions of this Third Addendum, this Third Addendum shall prevail.

**5.** **COUNTERPARTS**

This Third Addendum may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same agreement as at the Signature Date.

**6.** **GENERAL**

6.1No contract varying, adding to, deleting from, or cancelling this Third Addendum, and no waiver of any right under this Third Addendum, shall be effective unless reduced to writing and signed by or on behalf of the Parties.

6.2This Third Addendum contains the entire agreement between the Parties relating to the matters recorded herein, and no Party shall be bound by any undertakings, representations, warranties, promises or the like not recorded in this Third Addendum.

**7.** **SIGNATURE**

Signed on behalf of the Parties set out below, each signatory warrants that he or she has due authority to do so.

*[SIGNATURE PAGE FOLLOWS]*

------

SIGNED at <u>Pretoria</u> on this the <u>15</u> day <u>April</u> of 2026.

---

| |
|:---|
| For and on behalf of |
| **THE LENDER** |
| <br>![img58448283_0.jpg](img58448283_0.jpg) |
| Signatory: |
| Capacity: |
| Who warrants his authority hereto |

---

SIGNED at <u>Oslo</u> on this the <u>15th</u> day <u>April</u> of 2026.

---

| |
|:---|
| For and on behalf of |
| **ASP ISOTOPES INCORPORATED** |
| <br>![img58448283_1.jpg](img58448283_1.jpg) |
| Signatory: |
| Capacity: |
| Who warrants his authority hereto |

---

SIGNED at <u>Sandton</u> on this the <u>16th</u> day <u>April</u> of 2026.

---

| |
|:---|
| For and on behalf of |
| **THE BORROWER** |
| <br>![img58448283_2.jpg](img58448283_2.jpg) |
| Signatory: |
| Capacity: |
| Who warrants his authority hereto |

---

------

## Exhibit 10.13

**Exhibit 10.13**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

## REQUEST FOR CONSENTS AND WAIVER
January 12, 2024

United States International Development Finance Corporation

110 New York Avenue, N.W.

Washington, D.C. 20527

United States of America

Attn.: Managing Director, Portfolio Management Division

Attn.: Courtney Piper

Email: notices@dfc.gov

## Re: Loan No. 9000083212 Tetra4 Helium Project – Request for Consent to Mahlako Subscription, Restricted Payment and Waiver of Restricted Payment Conditions
Ladies and Gentlemen,

1.**Introduction**

1.1We refer to the Finance Agreement dated August 20, 2019 between Tetra4 Proprietary Limited (the "**Borrower**") and the United States International Development Finance Corporation, an agency of the United States of America ("**DFC**") (the "**Finance Agreement**).

1.2Unless otherwise expressly defined in this letter, capitalized terms in this letter shall have the meanings given to them in the Finance Agreement.

2.**Background**

2.1Renergen Limited ("**Renergen**," and together with the Borrower, collectively the "**Borrower Parties**") entered into a Bridge Loan Facility Agreement (the "**Bridge Loan Agreement**") with Standard Bank of South Africa (acting through its Corporate and Investment Banking Division) ("**SBSA**") on or about June 29, 2023, pursuant to which SBSA made a ZAR 303 million bridge loan (the "**Bridge Loan**") to Renergen for the purpose of providing short-term bridge funding for the Borrower's operations in anticipation of the Borrower raising equity capital by way of a new share issue.

2.2The Borrower is in the process of negotiating the subscription by Mahlako Gas Energy Proprietary Limited ("**Mahlako**") for new ordinary shares representing up to 10% of the Borrower's share capital (the "**Mahlako Subscription**"). Upon successful completion of the Mahlako Subscription, the Borrower intends to distribute to Renergen a portion of the Mahlako Subscription proceeds in an amount not to exceed the amount sufficient to enable Renergen to prepay the Bridge Loan in full (the "**Bridge Loan Distribution**");

2.3Renergen will apply the proceeds of the Bridge Loan Distribution solely to prepay the Bridge Loan in full.

------

2.4Each Borrower Party agrees and acknowledges that each of the (i) Mahlako Subscription and (ii) the Bridge Loan Distribution require DFC's consent under the Finance Agreement.

2.5The Borrower undertakes to achieve Project Completion no later than February 15, 2024 (the "**Project Completion Longstop Date**") and requests that the Lender consent to such date (the "**Project Completion Date Extension**").

3.**[\*\*\*]**

4.**Representations and Undertakings and Amendment**

4.1The Borrower represents and warrants to DFC that no Default or Event of Default is continuing as of the date of this letter (other than the Settlement Agreement Default).

4.2The Borrower undertakes for the benefit of DFC to achieve Project Completion by March 30, 2024 and agrees that Section 6.02(c) of the Finance Agreement is hereby amended by deleting the words "use its best efforts to" and replacing "June 30, 2022" with "March 30, 2024".

4.3The Borrower undertakes to maintain compliance with the financial ratios included in paragraphs (a) and (b) of Section 6.10 (Financial Ratios; DSR Requirement) of the Finance Agreement at all times immediately following August 15, 2025. DFC and the Borrower agree that each of Section 6.10 (a) and (b) are hereby amended by replacing the words "the date falling eighteen months after Project Completion" with "August 15, 2025".

4.4The Borrower undertakes to (i) register the Servitude Security; and (ii) provide DFC with evidence of such registration with the appropriate Deeds Office in the Project Country by no later than April 15, 2024. DFC and the Borrower agree that Section 6.09 (f) is hereby amended by replacing the words "the Project Completion Date" with "April 15, 2024".

4.5DFC and the Borrower agree that Section 7.04 is hereby amended by replacing the words "18 months provided for after Project Completion" with "grace period through August 15, 2025, provided for therein"."

5.**General**

5.1THIS LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.

5.2For the avoidance of doubt, the Borrower confirms its undertakings pursuant to Section 8.03 (*Jurisdiction and Consent to Suit; Waivers*) of the Finance Agreement with respect to this letter.

5.3This letter may be signed in separate counterparts in .pdf, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

5.4This letter constitutes a Financing Document.

[*Signature pages follow*]

Mahlako Consent (2023)

------

Sincerely,

## TETRA4 PROPRIETARY LIMITED

---

| | | |
|:---|:---|:---|
| By: | /s/ Nicholas Michael Mitchell | /s/ Nicholas Michael Mitchell |
| Name: | Name: | Nicholas Michael Mitchell |
| Title: | Title: | Chief Operating Officer |

---

## RENERGEN LIMITED

---

| | | |
|:---|:---|:---|
| By: | /s/ Stefano Marani | /s/ Stefano Marani |
| Name: | Name: | Stefano Marani |
| Title: | Title: | Chief Executive Officer |

---

Mahlako Consent (2023)

------

By its signature hereto, DFC agrees to the Consents and the Waiver subject to the express terms and conditions contained in this letter.

**UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION**

---

| | | |
|:---|:---|:---|
| By: | /s/ Courtney Piper | /s/ Courtney Piper |
| Authorised Signatory | Authorised Signatory | Authorised Signatory |
| Name: | Name: | Courtney Piper |
| Title: | Title: | Director, Asset Management |
| Date: | Date: | 3 November 2023 |

---

Mahlako Consent (2023)

------

Sincerely,

## TETRA4 PROPRIETARY LIMITED

---

| | | |
|:---|:---|:---|
| By: | /s/ Nicholas Michael Mitchell | /s/ Nicholas Michael Mitchell |
| Name: | Name: | Nicholas Michael Mitchell |
| Title: | Title: | Chief Operating Officer |

---

## RENERGEN LIMITED

---

| | | |
|:---|:---|:---|
| By: | /s/ Stefano Marani | /s/ Stefano Marani |
| Name: | Name: | Stefano Marani |
| Title: | Title: | Chief Executive Officer |

---

Mahlako Consent (2023)

------

By its signature hereto, DFC agrees to the Consents and the Waiver subject to the express terms and conditions contained in this letter.

**UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION**

---

| | | |
|:---|:---|:---|
| By: | /s/ Courtney Piper | /s/ Courtney Piper |
| Authorised Signatory | Authorised Signatory | Authorised Signatory |
| Name: | Name: | Courtney Piper |
| Title: | Title: | Director, Asset Management |
| Date: | Date: | 3 November 2023 |

---

Mahlako Consent (2023)

------

## Exhibit 10.14

**Exhibit 10.14**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

EXECUTION VERSION

# REQUEST FOR CONSENT
March 12, 2024

United States International Development Finance Corporation

110 New York Avenue, N.W.

Washington, D.C. 20527

United States of America

Attn.: Managing Director, Portfolio Management Division

Attn.: Courtney Piper

Email: notices@dfc.gov

## Re: Loan No. 9000083212 Tetra4 Helium Project – Request for Consent to termination of the Balance of Plant Contract.
Ladies and Gentlemen,

1.**Introduction**

1.1.We refer to the Finance Agreement dated August 20, 2019 between Tetra4 Proprietary Limited (the "**Borrower**") and the United States International Development Finance Corporation, an agency of the United States of America ("**DFC**") (as amended, modified or supplemented from time to time, the "**Finance Agreement**") and the Funding and OPIC Guaranty Agreement dated as of August 20, 2019, among the Borrower, U.S. Bank National Association, as Paying Agent, R.W. Pressprich & Co, as Placement Agent, and DFC (the "**OPIC Funding Agreement**").

1.2.Unless otherwise expressly defined in this letter, capitalized terms in this letter shall have the meanings given to them in the Finance Agreement or the EPC Contract (as defined below).

2.[\*\*\*]

3.[\*\*\*]

4.**Representations and Warranties and Amendment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.The Borrower represents and warrants to DFC that:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)no Default or Event of Default is continuing as of the date of this letter other than any Event of Default arising in connection with the entry by the Borrower into the Settlement Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The factual statements made in this letter, including in Section 2, are true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.The Borrower undertakes for the benefit of DFC to achieve Project Completion by April 30, 2024 and agrees that Section 6.02(c) of the Finance Agreement is hereby amended by deleting "March 30, 2024" and replacing with "April 30, 2024."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.The Borrower undertakes to (i) register the Servitude Security; and (ii) provide DFC with evidence of such registration with the appropriate Deeds Office in the Project Country by no later than June 15, 2024. DFC and the Borrower agree that Section 6.09 (f) is hereby amended by deleting "April 15, 2024" and replacing it with the words "June 15, 2024."

5.**General**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.**THIS LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.For the avoidance of doubt, the Borrower confirms its undertakings pursuant to Section 8.03 (*Jurisdiction and Consent to Suit; Waivers*) of the Finance Agreement with respect to this letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.This letter may be signed in separate counterparts in .pdf, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4.This letter constitutes a Financing Document.

[*Signature pages follow*]

------

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| **TETRA4 PROPREITARY LIMITED** | **TETRA4 PROPREITARY LIMITED** |
| By: | /s/ Nick Mitchell |
| Name: Nick Mitchell | Name: Nick Mitchell |
| Title: Chief Operating Officer | Title: Chief Operating Officer |

---

------

By its signature hereto, the DFC agrees to the Consent and Waiver;

# U.S INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

---

| | |
|:---|:---|
| By: | /s/ Courtney Piper |
| Authorised Signatory  | Authorised Signatory  |
| Name: Courtney Piper | Name: Courtney Piper |
| Title: Director, Asset Management | Title: Director, Asset Management |
| Date: 12 March 2024 | Date: 12 March 2024 |

---

------

## Exhibit 10.15

**Exhibit 10.15**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

**REQUEST FOR WAIVER**

August 30, 2024

United States International Development Finance Corporation

110 New York Avenue, N.W.

Washington, D.C. 20527

United States of America

Attn.: Managing Director, Portfolio Management Division

Attn.: Courtney Piper

Email: notices@dfc.gov

**Re: Loan No. 9000083212 Tetra4 Helium Project – Request for certain Waivers and Consents**

Ladies and Gentlemen,

**1.** **Introduction**

1.1.1.We refer to the Finance Agreement dated August 20, 2019 between Tetra4 Proprietary Limited (the "Borrower") and the United States International Development Finance Corporation, an agency of the United States of America ("**DFC**") (as amended, modified or supplemented from time to time, the "**Finance Agreement**").

1.1.2.Unless otherwise expressly defined in this letter, capitalized terms in this letter shall have the meanings given to them in the Finance Agreement or the Supply Contract (as defined below).

**2.** **Background**

2.1.**Reversionary Cessions**

2.1.1.Renergen Limited ("**Renergen**," and together with the Borrower, collectively the "**Borrower Parties**") is planning to enter into a secured term loan facility (the "**SBSA Facility Agreement**") with Standard Bank of South Africa (acting through its Corporate and Investment Banking Division) ("**SBSA**"), pursuant to which SBSA will advance a secured term loan (the "**SBSA Loan**") to Renergen in an amount up to ZAR 155 million.

2.1.2.Under the terms of the SBSA Facility Agreement, Renergen will be required to grant a reversionary cession and pledge of all its shares in the Borrower to SBSA and procure the creation of a reversionary cession over all the Borrower's bank accounts in favor of SBSA (the "**Reversionary Cessions**"), in each case, as a condition precedent to the full disbursement of the SBSA Loan.

2.1.3.Each Borrower Party agrees and acknowledges that each of the Reversionary Cessions requires DFC's consent under the Finance Agreement.

Waiver and Consent (WSCE, Project Completion, et al)

Loan No. 9000083212 Tetra4 Helium Project

------

2.2.**[\*\*\*]**

2.3.**[\*\*\*]**

**3.** **[\*\*\*]**

**4.** **Representations and Warranties and Undertakings and Amendment.**

4.1.The Borrower Parties each represent and warrant to DFC that no Default or Event of Default is continuing as of the date of this letter (after taking into account the Waiver).

4.2.[\*\*\*]

4.3.[\*\*\*]

4.4.The Borrower undertakes for the benefit of DFC to achieve Project Completion by September 30, 2024 and agrees that Section 6.01(c) of the Finance Agreement is hereby amended by replacing "April 30, 2024" with "September 30, 2024". The Borrower and DFC each agree that, from the date that Borrower shall have delivered the Implementation Plan satisfactory to DFC in accordance with Section 4.3, the definition of Project Completion included in Section 1 of Schedule X to the Finance Agreement shall be amended and restated to read as follows:

""**Project Completion**" means the issuance of (i) the Taking-Over Certificate (as defined in the EPC Contract (Gas Gathering) by the Borrower pursuant to the EPC Contract (Gas Gathering) and (ii) a project completion report by the Independent Engineer to DFC in form and substance satisfactory to DFC."

4.5.The Borrower undertakes for the benefit of DFC to (i) register the Servitude Security; and (ii) provide DFC with evidence of such registration with the appropriate Deeds Office in the Project Country by no later than March 31, 2025. DFC and the Borrower agree that Section 6.09 (f) of the Finance Agreement is hereby amended by replacing the words "June 15, 2024" with "March 31, 2025".

4.6.[\*\*\*]

**5.** **General**

5.1.THIS LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.

5.2.For the avoidance of doubt, the Borrower confirms its undertakings pursuant to Section 8.03 (Jurisdiction and Consent to Suit; Waivers) of the Finance Agreement with respect to this letter.

5.3.This letter may be signed in separate counterparts in .pdf, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

5.4.This letter constitutes a Financing Document.

[*Signature pages follow*]

Waiver and Consent (WSCE, Project Completion, et al)

Loan No. 9000083212 Tetra4 Helium Project

------

Sincerely,

**TETRA4 PROPREITARY LIMITED**

---

| | |
|:---|:---|
| By: | /s/ Nick Mitchell |
| Name: | Nick Mitchell |
| Title: | Chief Operating Officer |

---

**RENERGEN LIMITED**

---

| | |
|:---|:---|
| By: | /s/ Stefano Marani |
| Name: | Stefano Marani |
| Title: | Chief Executive Officer |

---

Waiver and Consent (WSCE, Project Completion, et al)

Loan No. 9000083212 Tetra4 Helium Project

------

By its signature hereto, the DFC agrees to the Consent and Waiver;

**U.S INTERNATIONAL DEVELOPMENT FINANCE CORPORATION**

---

| | |
|:---|:---|
| By: | /s/ Courtney Piper |
| Authorised Signatory | Authorised Signatory |
| Name: | Courtney Piper |
| Title: | Director, Asset Management |
| Date: | August 27, 2024 |

---

Waiver and Consent (WSCE, Project Completion, et al)

Loan No. 9000083212 Tetra4 Helium Project

------

Exhibit 1

Forms of SBSA Facility and Reversionary Cessions

Waiver and Consent (WSCE, Project Completion, et al)

Loan No. 9000083212 Tetra4 Helium Project

------

## Exhibit 10.16

**Exhibits 10.16**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

# REQUEST FOR CONSENT AND WAIVER
December 9, 2024

United States International Development Finance Corporation

110 New York Avenue, N.W.

Washington, D.C. 20527

United States of America

Attn.: Managing Director, Portfolio Management Division

Attn.: Courtney Piper

Email: notices@dfc.gov

**Re: Loan No. 9000083212 Tetra4 Helium Project - Request for Consent and Waiver (Harbin Guarantee proceeds; DSR Shortfall and Project Completion)**

Ladies and Gentlemen,

**1.** **Introduction**

1.1.We refer to the Finance Agreement dated August 20, 2019 between Tetra4 Proprietary Limited (the **"Borrower'')** and the United States International Development Finance Corporation, an agency of the United States of America **("DFC")** (as amended, modified or supplemented from time to time, the **"Finance Agreement").**

1.2.Unless otherwise expressly defined in this letter, capitalized terms in this letter shall have the meanings given to them in the Finance Agreement.

**2.** **[\*\*\*]**

**3.** **[\*\*\*]**

**4.** **Representations and Warranties and Amendment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.The Borrower represents and warrants to DFC that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)no Default or Event of Default is continuing as of the date of this letter (after taking into account the waivers contained herein); 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)the factual statements made in this letter, including in Section 2, are true and correct.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.The Borrower undertakes for the benefit of DFC to achieve Project Completion by February 28, 2025 and agrees that Section 6.02(c) of the Finance Agreement is hereby amended by deleting "September 30, 2024" and replacing with "February 28, 2025"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.The Borrower acknowledges and agrees that (a) the granting of the consents and waivers under this letter is limited to the specific matters referred to expressly in this letter, (b) all other terms, covenants and provisions of the Finance Agreement or any other Financing Document shall remain in full force and effect; (c) except as explicitly provided in Clause 4.3 and Clause 4.4 above, no portion of this letter shall under any circumstance be deemed to be an amendment of any provision of the Finance Agreement or any other Financing Document; (d) the willingness of DFC to give the consents and grant the waivers included herein does not establish a course of dealing or otherwise obligate DFC to agree to any waiver of or consent in respect of similar or different provisions of the Finance Agreement or any other Financing Document, as the case may be, in the future; and (e) except as expressly provided in this letter, this letter does not constitute a waiver of any condition precedent, misrepresentation, breach of covenant, Default or Event of Default under the Finance Agreement or any other Financing Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.[\*\*\*]

**5.** **General**

5.1.**THIS LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.**

5.2.For the avoidance of doubt, the Borrower confirms its undertakings pursuant to Section 8.03 (*Jurisdiction and Consent to Suit; Waivers)* of the Finance Agreement with respect to this letter.

5.3.This letter may be signed in separate counterparts in .pdf, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

5.4.This letter constitutes a Financing Document.

*[Signature pages follow]*

------

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| TETRA4 PROPREITARY LIMITED | TETRA4 PROPREITARY LIMITED |
| By: | /s/ Nick Mitchell |
| Name: | Nick Mitchell |
| Title: | Chief Operating Officer |

---

------

By its signature hereto, the DFC agrees to the Consent and Waiver;

**U.S INTERNATIONAL DEVELOPMENT FINANCE CORPORATION**

---

| | |
|:---|:---|
| By: | /s/ Courtney Piper |
| Authorised Signatory | Authorised Signatory |
| Name: | Courtney Piper |
| Title: | Director, Asset Management |
| Date: | December 9, 2024 |

---

------

## Exhibit 10.17

**Exhibit 10.17**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

Execution Version

## Request for Waiver

## (DFC/9000083212)
This Waiver (this "***Waiver***") is made and entered into as of April 9 , 2025 by and between TETRA4 PROPRIETARY LIMITED, a limited liability company duly registered and validly existing under the laws of the Republic of South Africa (the "***Borrower***"), and UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION, an agency of the United States of America ("***DFC***"). Capitalized terms used herein and not otherwise defined herein (including in the recitals) shall have the respective meanings ascribed thereto in the Agreement (as hereinafter defined).

# RECITALS
WHEREAS, the Borrower and DFC entered into that certain Finance Agreement, dated as of August 20, 2019 (as the same may be amended, supplemented or otherwise modified from time to time, the "**Agreement**");

[\*\*\*]

WHEREAS, the Sponsor is in the process of raising additional capital for the purpose of making additional equity contributions to the Borrower in at least three instalments in an amount equal to $10,000,000 on or before April 30, 2025, an amount equal to $10,000,000 on or before May 31, 2025, and an amount equal to $10,000,000 on or before June 30, 2025 (or, in each case, the equivalent in South African Rand) (the "**Equity Contributions**") to fund (i) the expansion of the Project by drilling up to fourteen new wells and constructing the related gas gathering infrastructure and compressor station (collectively, the "**Project 1C Expansion**") [\*\*\*];

NOW, THEREFORE, in consideration of the premises and of the agreements and representations contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

# ARTICLE I

# WAIVERS

## [\*\*\*]

# ARTICLE II

# REPRESENTATIONS AND WARRANTIES; UNDERTAKINGS AND AMENDMENTS

## Section 2.1 [\*\*\*]

## Section 2.2 Undertakings and Amendments

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Borrower undertakes for the benefit of DFC to achieve Project Completion by January 31, 2026. DFC and the Borrower each agree that paragraph (c) of Section 6.01 (*Project Completion*) of the Finance Agreement is hereby amended to read as follows:

*"cause Project Completion to be achieved on or prior to January 31, 2026.".*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Borrower undertakes for the benefit of DFC to (i) register the Servitude Security; and (ii) provide DFC with evidence of such registration with the appropriate Deeds Office in the Project Country by no later than March 31, 2025. DFC and the Borrower each agree that Section 6.09 (f) of the Finance Agreement is hereby amended by replacing the words "March 31, 2025" with "January 31, 2026".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)DFC and the Borrower each agree that the definition of "Project Completion" in Schedule X to the Finance Agreement is hereby amended and restated in its entirety to read as follows:

*""****Project Completion****" means the issuance of (i) the Taking-Over Certificate (as defined in the EPC Contract (Gas Gathering) by the Borrower pursuant to the EPC Contract (Gas Gathering); (ii) a project completion report by the Independent Engineer to DFC in form and substance satisfactory to DFC (which report shall include confirmation by the Independent Engineer in form and substance satisfactory to DFC that the Project is able to recover sufficient helium and natural gas from the wells included in the Project to operate the Liquefaction Plant at name plate capacity equal to 50 tons of LNG and 350 kg of helium per day and has operated the Liquefaction Plant at such name plate capacity for a continuous period of time exceeding three months; and (iii) a Project completion certificate in form and substance acceptable to DFC (after consultation with the Independent Engineer)."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)DFC and the Borrower each agree that Schedule 3.01(d) of the Finance Agreement is hereby amended and restated in its entirety to read as set forth on <u>Schedule 1</u> to this Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Borrower shall cause the Sponsor to make the Equity Contributions in three instalments by April 30, 2025, May 31, 2025 and June 30, 2025, respectively, and agrees that the failure by the Sponsor to cause the Equity Contributions to be made to the Borrower by such dates shall constitute an Event of Default pursuant to Section 8.01(d) of the Finance Agreement.

# ARTICLE III

# MISCELLANEOUS

## Section 3.1 Limitation of Waiver
Except as expressly provided herein, this Waiver shall not limit or otherwise adversely affect DFC's rights under the Finance Agreement or any other Financing Document. DFC reserves the right to insist on strict compliance with the terms of the Finance Agreement, and the Borrower expressly acknowledges such reservation of rights. The grant of this Waiver will not, either alone or taken with other waivers of (or forbearance in connection with) any provision of any Finance

------

Document or Transaction Document, be deemed to create or be evidence of a course of conduct. Any future or additional waiver of any provision of any Financing Document or Transaction Document shall be effective only if set forth in a writing separate and distinct from this Waiver and executed by an authorized representative of DFC. Except as explicitly provided in Section 2.2 (*Undertakings and Amendments*) of this Waiver, no portion of this Waiver shall under any circumstance be deemed to be an amendment of any provision of the Finance Agreement or any other Financing Document. [\*\*\*]

## Section 3.2 Incorporation By Reference
Sections 8.03 (*Jurisdiction and Consent to Suit; Waivers*), 8.05 (*No Immunity*), 9.01 (*Notices*), 9.03 (*Governing Law*) to 9.13 (*Waiver of Litigation Payments*) of the Agreement are hereby incorporated herein by reference and shall apply to this Agreement, *mutatis mutandis*, as if they had been fully set forth herein.

## Section 3.3 Financing Document
This Waiver shall constitute a Financing Document.

[*Signature pages follow*]

------

IN WITNESS WHEREOF, each of the parties has caused this Waiver to be executed and delivered on its behalf by its authorized representative as of the date first above written.

---

| | | |
|:---|:---|:---|
| **TETRA4 PROPRIETARY LIMITED** | **TETRA4 PROPRIETARY LIMITED** | **TETRA4 PROPRIETARY LIMITED** |
| By: | /s/ Nick Mitchell | /s/ Nick Mitchell |
| Name: | Name: | Nick Mitchell |
| Title:  | Title:  | Chief Operating Officer |

---

Tetra4 Proprietary Limited – DFC Project Number / 9000083212

Waiver (April 2025) - Signature Page

------

---

| | | |
|:---|:---|:---|
| UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION | UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION | UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION |
| By: | /s/ Courtney Piper | /s/ Courtney Piper |
| Name: | Name: | Courtney Piper |
| Title:  | Title:  | Director, Asset Management |

---

Tetra4 Proprietary Limited – DFC Project Number / 9000083212

Waiver (April 2025) - Signature Page

------

**<u>SCHEDULE 1 TO THE WAIVER –</u>** 

**<u>AMENDED AND RESTATED SCHEDULE 3.01(D) TO THE FINANCE AGREEMENT</u>**

**<u>SCHEDULE 3.01(d)</u>**

**<u>CAPITALIZATION</u>**

Tetra4 Proprietary Limited – DFC Project Number / 9000083212

Waiver (April 2025) - Signature Page

------

## Exhibit 10.18

**Exhibit 10.18**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

***Execution Version***

# REQUEST FOR CONSENT AND WAIVER
November 25, 2025

United States International Development Finance Corporation

110 New York Avenue, N.W.

Washington, D.C. 20527

United States of America

Attn.: Managing Director, Portfolio Management Division

Attn.: Courtney Piper

Email: notices@dfc.gov

## Re: Loan No. 9000083212 Tetra4 Helium Project – Request for Consent, Waivers and Amendments to Finance Agreement (Change of Control, Fiscal Year, et al.)
Ladies and Gentlemen,

**1.** **Introduction**

&nbsp;&nbsp;&nbsp;&nbsp;1.1.We refer to the Finance Agreement dated August 20, 2019, between Tetra4 Proprietary Limited (the "**Borrower**") and the United States International Development Finance Corporation, an agency of the United States of America ("**DFC**") (as amended from time to time, the "**Finance Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;1.2.Unless expressly defined in this letter, capitalized terms used in this letter shall have the meanings given to them in the Finance Agreement.

2.[\*\*\*]

3.[\*\*\*]

**4.** **Representations, Undertaking and Amendment**

&nbsp;&nbsp;&nbsp;&nbsp;4.1.The Borrower represents and warrants to DFC that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)except as expressly waived hereby, no Default or Event of Default is continuing as of the date of this letter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the execution, delivery and performance of this letter by the Borrower (i) has been duly authorized by all necessary corporate action and (ii) will not violate any Applicable Law;

[*Signature Page to Request for Consent, Waivers and Amendments to Finance Agreement // Loan No. 9000083212*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)no consent of any Person is required in connection with the Borrower's execution, delivery or performance, or the validity or enforceability, of this letter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)upon the consummation of the Proposed Transaction, the Persons identified in Part II of Schedule 3.01(d) hold the indirect beneficial title to 100% of the limited liability company interests of the Borrower in the percentage amounts set forth next to their names in Part II of Schedule 3.01(d) (attached hereto as Annex I);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)upon consummation of the Proposed Transaction, there will be no ultimate beneficial owner indirectly holding 10% or more of the authorized and issued limited liability company interests of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)none of the Borrower, any Subsidiary, or, to the knowledge of the Borrower, any Person (including any Direct Owner) that holds or otherwise controls any ownership, voting, or economic interest the Borrower is a Foreign Entity of Concern; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)to the knowledge of the Borrower, none of ASPI, Renergen, or the Borrower has incurred, assumed, guaranteed, or is otherwise liable for Indebtedness owing to a Foreign Entity of Concern.

&nbsp;&nbsp;&nbsp;&nbsp;4.2.[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;4.3.[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;4.4.[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;4.5.The Borrower and DFC each agree that, upon the consummation of the Proposed Transaction, the defined term "Fiscal Year" in Schedule X of the Finance Agreement shall be deemed to be amended and restated in its entirety to read as in its entirety to read as follows:

"*"****Fiscal Year****" means, with respect to the Borrower, the period beginning on January 1 and ending on December 31, of each year.*"

&nbsp;&nbsp;&nbsp;&nbsp;4.6.The Borrower and DFC each agree to amend and restate Section 6.10(a) and Section 6.10(b) in its entirety to read follows: "

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a) The Borrower shall maintain at all times immediately following the date falling 18 months after the date of Project Completion: (i) a ratio of all interest bearing Debt to EBITDA of not more than 3.0 to 1; and (ii) a ratio of Current Assets to Current Liabilities of not less than 1 to 1; and the Borrower shall maintain at all times: (iii) a Reserve Tail Ratio of not less than 25%.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) The Borrower shall maintain at all times immediately following the date falling 18 months after the date of Project Completion: (i) a ratio of Cash Flow for the most recently completed four (4) consecutive full fiscal quarters, taken as a single accounting period, to Debt Service for the most recently completed four (4) consecutive full fiscal quarters, taken as a single accounting period, of not less than 1.30 to 1; and (ii) a ratio of Cash Flow for the most recently completed four (4) consecutive full fiscal quarters, taken as a single accounting period, to Debt Service* 

------

*for the next succeeding four (4) consecutive full fiscal quarters of not less than 1.3 to 1."*

&nbsp;&nbsp;&nbsp;&nbsp;4.7.The Borrower and DFC each agree to amend and restate the last sentence of Section 7.04 in its entirety to read as follows:

*"For the avoidance of doubt, the ratios in Section 6.10(a)(i), Section 6.10(a)(ii) and Section 6.10(b) shall also be met notwithstanding the 18 months provided for after Project Completion."*

&nbsp;&nbsp;&nbsp;&nbsp;4.8.The Borrower and DFC each agree that, upon the consummation of the Proposed Transaction, Schedule 3.01(d) of the Finance Agreement shall be deemed to be amended and restated in its entirety to read as set out on Annex I hereto.

&nbsp;&nbsp;&nbsp;&nbsp;4.9.The Borrower undertakes for the benefit of DFC to achieve Project Completion by October 31, 2026. DFC and the Borrower each agree that paragraph (c) of Section 6.01(Project Completion) of the Finance Agreement is hereby amended to read as follows:

"*cause Project Completion to be achieved on or prior to October 31, 2026.*"

&nbsp;&nbsp;&nbsp;&nbsp;4.10.For purposes of this Section 4:

"**Covered Nation**" means any country that is a "covered nation" as defined in 10 U.S.C. § 4872(f)(2), as amended.<sup>1</sup>

------

<sup>1</sup>As of September 2025, "covered nations" are defined as the Democratic People's Republic of North Korea, the People's Republic of China, the Russian Federation, and the Islamic Republic of Iran.

"**Foreign Entity of Concern**" means each Person that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)designated as a foreign terrorist organization by the Secretary of State under 8 U.S.C. § 1189;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)included on the Department of Treasury's list of Specially Designated Nationals and Blocked Persons ("SDN List"), or for which one or more individuals or entities included on the SDN List, individually or in the aggregate, directly or indirectly, hold at least fifty percent (50%) of the outstanding voting interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a Covered Nation; provided that, as used in this definition, "owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a Covered Nation" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the Person is a citizen of a Covered Nation and is not a citizen or lawful permanent resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the Person is organized under the laws of or has its principal place of business in a Covered Nation;

------

&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)twenty-five percent (25%) or more of the Person's outstanding voting interest, board seats, or equity interest is held or otherwise controlled directly or indirectly by the government of a Covered Nation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)twenty-five percent (25%) or more of the Person's outstanding voting interest, board seats, or equity interest is held or otherwise controlled directly or indirectly by any combination of Persons described in sub-sections (i)-(iii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)included on the Bureau of Industry and Security's Entity List (15 CFR part 744, supplement no. 4); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)included on the Department of the Treasury's list of Non-SDN Chinese Military-Industrial Complex Companies ("NS-CMIC List"), or for which one or more individuals or entities included on the NS-CMIC List, individually or in the aggregate, directly or indirectly, hold at least fifty percent (50%) of the outstanding voting interest.

**5.** **General**

&nbsp;&nbsp;&nbsp;&nbsp;**5.1.** **THIS LETTER AND ANY CLAIM, CONTROVERSY, DISPUTE, OR CAUSE OF ACTION (WHETHER IN CONTRACT, TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS LETTER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.**

&nbsp;&nbsp;&nbsp;&nbsp;5.2.Sections 8.03 (*Jurisdiction and Consent to Suit; Waivers*), 8.05 (*No Immunity*), 9.01 (*Notices*), 9.03 (*Governing Law*) to 9.13 (*Waiver of Litigation Payments*) of the Agreement are hereby incorporated herein by reference and shall apply to this Agreement, mutatis mutandis, as if they had been fully set forth herein. This letter may be signed in separate counterparts in .pdf, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;5.3.This letter constitutes a Financing Document.

[*Signature page to follow*]

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| | |
|:---|:---|
| Sincerely, | Sincerely, |
| TETRA4 PROPRIETARY LIMITED | TETRA4 PROPRIETARY LIMITED |
| By: | /s/ Nicholas Michael Mitchell |
| Name: | Nicholas Michael Mitchell |
| Title: | Chief Operating Officer |

---

[*Signature Page to Request for Consent, Waivers and Amendments to Finance Agreement // Loan No. 9000083212*]

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By its signature hereto, DFC agrees to the consents and waivers expressly requested in this letter subject to the express terms and conditions contained in this letter.

UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

---

| | | | |
|:---|:---|:---|:---|
| By: | /s/ C. Piper |  |  |
| Authorized Signatory | Authorized Signatory | Authorized Signatory | Authorized Signatory |
| Name: | C. Piper | Title: | Director, Asset Management |
| Date: | November 25, 2025 |  |  |

---

[*Signature Page to Request for Consent, Waivers and Amendments to Finance Agreement // Loan No. 9000083212*]

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ANNEX I

SCHEDULE 3.01(D)

CAPITALIZATION

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Annex II

FORM OF AUTHORIZED OFFICER CERTIFICATE FOR RENERGEN

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## Exhibit 10.20

**Exhibit 10.20**

*Production Right - Execution version*

![img172762844_0.jpg](img172762844_0.jpg)

**<u>PRODUCTION RIGHT</u>**

**Granted in terms of Section 84(1) of the Mineral and Petroleum Resources Development Act, 2002<br>(Act No. 28 of 2002)**

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*Production Right - Execution version*

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

---

| | | |
|:---|:---|:---|
| **Clause** | **Title** | **Page** |
|  | **Preamble** |  |
| &nbsp;&nbsp;**1.** | **Definitions and Interpretation** | **7** |
| &nbsp;&nbsp;**2.** | **Granting of the Production Right** | **12** |
| &nbsp;&nbsp;**3.** | **Production Area** | **12** |
| &nbsp;&nbsp;**4.** | **Exclusive Right to Apply for Separate Production Rights in Respect of Discoveries** | **12** |
| &nbsp;&nbsp;**5.** | **Rights and Obligations of the Holder** | **13** |
| &nbsp;&nbsp;**6.** | **Commencement, Duration and Renewal** | **14** |
| &nbsp;&nbsp;**7.** | **Royalties and Other Payments** | **14** |
| &nbsp;&nbsp;**8.** | **Technical Advisory Committee** | **14** |
| &nbsp;&nbsp;**9.** | **Cancellation or Suspension of the Production Right** | **16** |
| &nbsp;&nbsp;**10.** | **Voluntary Abandonment and Voluntary Relinquishment of the Production Area** | **16** |
| &nbsp;&nbsp;**11.** | **Rights to Minerals and Petroleum** | **17** |
| &nbsp;&nbsp;**12.** | **Examination of the Production Area** | **18** |
| &nbsp;&nbsp;**13.** | **Records and Samples** | **18** |
| &nbsp;&nbsp;**14.** | **Reports** | **19** |
| &nbsp;&nbsp;**15.** | **Production Work Programme and Annual Production Work Programme** | **19** |

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**16.** **Discoveries and Testing** **20** 

**17.** **Manner of Conducting Production Operations** **22** 

**18.** **Existing Data** **23** 

**19.** **Environmental Protection and Financial Provision** **23** 

**20.** **Social and Labour Matters** **23** 

**21.** **Financial Records and Audits** **25** 

**22.** **Indemnity and Insurance** **25** 

**23.** **Health and Safety** **26** 

**24.** **Confidentiality and Public Announcements** **26** 

**25.** **Cession and Sub-contracting** **28** 

**26.** **Law and Interpretation** **28** 

**27.** **Obligations of the Grantor** **29** 

**28.** **State Option** **29** 

**29.** **Vis Major** **30** 

**30.** **Amendments** **31** 

**31.** **Unitisation** **31** 

**32.** **Special Provisions Relating to Discoveries of Gas** **32** 

**33.** **Waiver or Lenience** **33** 

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*Production Right - Execution version*

**34.** **Dispute Resolution** **33** 

**35.** **Costs and Value Added Tax** **35** 

**36.** **Entire Agreement** **35** 

**37.** **Severability** **35** 

**38.**  ***Domicilia Citandi et Executandi*** **36** 

**39.** **Registration** **37** 

**40.** **Successors and Assigns** **37** 

**ANNEXURE INDEX**

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| | | |
|:---|:---|:---|
| **Annexure** | **Annexure Title** | **Page** |
| &nbsp;&nbsp;&nbsp;**A** | **Diagram of the Production Area** | **1** |
| &nbsp;&nbsp;&nbsp;**B** | **Production Work Programme** | **2** |
| &nbsp;&nbsp;&nbsp;**C** | **Environmental Management Programme** | **3** |
| &nbsp;&nbsp;&nbsp;**D** | **Social and Labour Plan** | **4** |
| &nbsp;&nbsp;&nbsp;**E** | **Schedule of Contributions to the Upstream Training Trust** | **5** |

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*Production Right - Execution version*

**<u>PRODUCTION RIGHT</u>**

**<u>GRANTED IN TERMS OF SECTION 84(1) OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT NO. 28 OF 2002, READ TOGETHER WITH REGULATION 35 PUBLISHED IN THE GOVERNMENT GAZETTE NO. 26275 ON 23 APRIL 2004, PROMULGATED IN TERMS OF SECTION 107 (1) OF THE ACT.</u>**

**LET IT HEREBY BE KNOWN THAT:**

**THE REPUBLIC OF SOUTH AFRICA**

is the custodian of the mineral and petroleum resources of the State (the 'Grantor').

**Susan Shabangu**

The Minister has by virtue of the provisions of Section 103 of the Act (as defined) delegated, inter alia, the power to grant production rights to

**Dr Thibedi Ramontja**

the Director-General of the Department of Mineral Resources (the 'Director-General').

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*Production Right - Execution version*

**Molopo South Africa Exploration and Production Proprietary Limited**

**(Registration No 2005/012157/07)**

(the 'Holder') has applied for a production right for petroleum in respect of the Production Area, an area as defined pursuant to Section 83 of the Act (as defined)

**LET IT THEREFORE BE KNOWN THAT:**

On this 20th day of September in the year **TWO THOUSAND AND TWELVE** (2012) before me,

**RONEL STRAUGHAN**

a Notary Public, duly sworn and admitted, residing and practicing at **CAPE TOWN,** (the 'Notary') and in the presence of the subscribing competent witnesses personally came and appeared,

**MTHOZAMI RICHARDSON XIPHU**

the Chief Executive Officer of the South African Agency for the Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited (hereinafter referred to as "the Agency"), Registration No. 1999/015715/07, he or she being duly authorised thereto by virtue of the Power of Attorney granted by the Director General of the Department of Mineral Resources at Pretoria on the 29<sup>th</sup> day of May 2012, which Power of Attorney has this day been exhibited to me, the Notary, and now remains filed of record in my Protocol, and

**PETER DEWDNEY PRICE**

he being duly authorised thereto under and by virtue of a Resolution of the Board of Directors of the Holder passed on the 5<sup>th</sup> day of November 2007, a certified copy of which Resolution has this day been exhibited to me, the Notary, and now remains filed on record in my Protocol with the minutes of the meeting at which such Resolution was passed.

**AND THE APPEARERS DECLARED THAT:**

The Holder currently holds or has held the Exploration Rights and has applied for a production right for petroleum in respect of the Production Area; and

The Grantor has decided to grant to the Holder this production right for petroleum in respect of the Production Area (as defined) on the terms and conditions set out below.

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**NOW, THEREFORE, THE GRANTOR HEREBY GRANTS TO THE HOLDER, AND THE HOLDER HEREBY ACCEPTS, THIS PRODUCTION RIGHT SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:**

1.**Definitions and Interpretation**

1.1.Unless the context indicates otherwise, any expression to which a meaning has been assigned in the Act shall bear, when used in this Production Right, the same meaning given thereto at the date upon which the Exploration Right was granted and apply *<u>mutatis mutandis</u>* hereto. In this Production Right the following words and expressions shall have the corresponding meanings assigned to them:

**'Act'** shall mean the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002);

**'Affiliate'** of a person shall mean another person which, directly or indirectly, owns, or is owned by, or is owned by a person which owns, that first-mentioned person; 'owns' and 'owned' in this definition means the beneficial ownership of 50 (fifty) percent or more of the voting shares or other voting securities of such person;

**'Agency'** shall mean the designated agency as defined in the Act, which, at the date upon which the Exploration Right was granted, was the South African Agency for Promotion of Petroleum Exploration and Exploitation (Soc) Limited, Registration No. 1999/015715/07, also known as Petroleum Agency SA;

**'Annual Production Work Programme'** shall mean the annual work programme for Production Operations, inclusive of the budget of estimated costs and expenses of carrying out the same, that the Holder prepares in accordance with Clause 15;

**'Applicable Laws'** shall mean the laws of the State;

**'Appraisal Operations'** shall mean any operation, study, activity, or matter, whether taking place within or outside of the State, to appraise and evaluate the extent and volume of petroleum within a Discovery made by the Holder in the Production Area and to determine whether such Discovery could be a Commercial Discovery, including, if and to the extent applicable, all production of petroleum necessary in connection with completion and testing of any appraisal well (including, if necessary, any long-term production test) and all plugging and abandonment of any appraisal well and the terms 'to appraise' or 'appraisal' shall be construed accordingly;

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**'Appraisal Programme'** shall mean the appraisal programme for Appraisal Operations that the Holder prepares in accordance with Clause 16;

**'Appraisal Report'** shall have the meaning ascribed to it in Clause 16.4;

**'Chief Executive Officer'** shall have the meaning ascribed to it in the preamble;

**'Claims'** shall have the meaning ascribed to it in Clause 22.2;

**'Commercial Discovery'** shall mean a Discovery by the Holder of petroleum in such quantities as the Holder believes will permit the economic development thereof, on its own or in combination with other existing Discoveries or as part of a unitised development;

**'Confidential Information'** shall have the meaning ascribed to it in Clause 24.1;

**'Day'** shall have the same meaning ascribed to it in the Act.

**'Discovery'** shall mean the discovery by the Holder of a geological feature within the Production Area that is determined by the Holder to be capable of producing petroleum;

**'Discovery Report'** shall have the meaning ascribed to it in Clause 16.1.3;

**'Divestment Participating Interest'** shall have the meaning ascribed to **it in** Clause 20.1.1;

**'Environmental Management Programme'** shall have the meaning ascribed to it in the Act, being the environmental management programme for the Production Area prepared by the Holder and approved by the Grantor, a copy of which is attached hereto at Annexure C, as amended from time to time;

**'Exploration Operations'** shall have the meaning ascribed to it in the Act, which for the purposes of this Production Right shall include Appraisal Operations;

**'Exploration Right'** shall mean the exploration rights in respect of petroleum and its by-products granted by the Grantor to the Holder, with reference numbers

---

| | | | |
|:---|:---|:---|:---|
| 30/5/2/3/2/86ER,; | 30/5/2/3/2/21ER; | 30/5/2/3/2/32ER; | 30/5/2/3/2/33ER; |
| 30/5/2/3/2/33ER; | 30/5/2/3/2/34ER; | 30/5/2/3/2/64ER; | 30/5/2/3/2/94E and  |
| 30/5/2/3/2/20ER. |  |  |  |

---

**'Gas Market Development Period'** shall have the meaning ascribed to it in Clause 6.2;

**'Final Reporting Period'** shall mean a period beginning on the day after the final complete Quarter of this Production Right and ending on the final day of the Initial Period or, where this Production Right has been renewed in terms of Section 85 of the Act, the final day of the final Renewal Period of this Production Right;

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**'First Reporting Period'** shall mean **a** period beginning on the Effective Date **and** ending on the first to occur of 30th June, 30th September, 31st December or 31st March thereafter;

**'Gas'** shall mean any petroleum which at normal temperature and pressure is in a gaseous phase existing in a natural condition in the earth's crust, regardless of the nature of the host rock, and includes any gas which has in any manner been returned to such natural condition, and includes condensate of such gas, but does not include gas obtained by destructive distillation or gas arising from a marsh or other surface deposit;

**'Gas Market Development Period'** shall have the meaning ascribed to it in Clause 32.1;

**'Good International Petroleum Industry Practices'** shall mean those good, sound and generally accepted prevailing standards, practices, considerations, and procedures that are applied by reasonable and prudent companies and operators in the international petroleum industry under conditions and circumstances similar to those experienced in the Production Area;

**'Government'** shall mean the government of the State;

**'Grantor'** shall have the meaning ascribed to it in the preamble;

**'Grantor Group'** shall mean, collectively, the Grantor, the Department of Mineral Resources (including the Minister) and the Agency (including the Chief Executive Officer), and the directors, officers, employees, agents, and representatives of each of the aforementioned;

**'HDP'** means historically disadvantaged person(s) as defined in the

**'Holder'** shall have the meaning ascribed to it in the preamble;

**'Holder Group'** shall mean, collectively, the Holder, the Holder's Affiliates, contractors and sub-contractors of the Holder and the Holder's Affiliates used in connection with Production Operations hereunder and the directors, officers, employees, agents and representatives of each of the aforementioned;

**'Initial Period'** shall mean a period 30 (thirty) years commencing from the Effective Date;

**'Legislative Changes'** shall have the meaning ascribed to it in Clause 27.1.3;

**'Minister'** shall have the meaning ascribed to it in the Act;**'Participating Interest'** shall mean the undivided share (expressed as a percentage) in all of the rights and obligations derived from this Production Right granted in respect of all or any part of the Production Area;

'**Party**' shall mean the Grantor or the Holder, as the case may be, and 'Parties' shall mean both of them;

**'Petroleum'** shall have the meaning ascribed to it in the Act;

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**'Petroleum Bearing Area'** shall have the meaning ascribed to it in Clause 31.1;

**'Production Area'** shall mean the area within the State described in Clause 3, excluding those portions relinquished or abandoned from time to time or severed there from in accordance herewith;

**'Production Operations'** shall **have** the meaning ascribed to it in the Act;

**'Production Right'** shall mean this production right in respect of petroleum and its by-products, granted in terms of Section 84(1) of the Act read together with Regulation 35 published in the Government Gazette on 23 April 2004 and promulgated in terms of Section 107 (1) of the Act;

**'Production Work Programme'** shall mean the production work programme attached hereto as Annexure B, as amended from time to time;

**'Prospective Buyer'** shall have the meaning ascribed to it in Clause 20.1.1;

**'Quarter'** shall mean a three-month period beginning on 1<sup>st</sup> January, 1<sup>st</sup> April, 1<sup>st</sup> July or 1<sup>st</sup> October of each Year;

**'Regulations'** shall mean the regulations promulgated in terms of Section 107(1) of the Act;

**'Renewal Period'** shall mean that period of time for which this Production Right is renewed in terms of Section 85 of the Act read together with Regulation 38;

**'Respondent'** shall have the meaning ascribed to it in Clause 34.6;

**'Royalty Legislation'** shall mean the Mineral and Petroleum Resources Royalty Act, 2008 (Act No. 28 of 2008) and the Mineral and Petroleum Resources Royalty (Administration) Act, 2008 (Act No. 29 of 2008) and other such legislation which may be promulgated by the State governing the payment of royalties to the State;

**'Samples'** shall mean physical samples of rock, fluid and other materials acquired by the Holder in the course of conducting Production Operations for the purpose of preserving and analysing such samples;

**'State'** shall mean the Republic of South Africa;

**'State Option'** shall have the meaning ascribed to it in Clause 28.1;

**'Social and Labour Plan"** shall mean the social and labour plan referred to in section 84(1)(i) of the Act read together with Regulation 46, that the holder prepares and which has been approved by the Grantor attached hereto as Annexure D

**'Technical Advisory Committee'** shall mean the committee established by the Parties in accordance with Clause 8.1;

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**'Technical Member'** shall have the meaning ascribed to it in Clause 34.5;

**'Unitisation Proposal'** shall have the meaning ascribed to it in Clause 31.1;

**'Upstream Training Trust'** shall mean the independent Upstream Training Trust registered under registration number IT 1289/98;

**'Vis Major Period'** shall have the meaning ascribed to it in Clause 29.3; and

**'Year'** shall mean the period of 12 (twelve) calendar months from the Effective date and each subsequent 12 (twelve) month period thereafter and the terms 'annual,' or 'annually' shall be construed accordingly.

1.2.**Interpretation in this Production Right**

1.2.1.Where the context so requires, in this Production Right:

1.2.1.1.words importing the masculine gender shall include the feminine and vice versa;

1.2.1.2.the words 'hereunder', 'herein', 'herewith', 'hereof' and words of similar import are references to this Production Right as a whole and not to any particular provision of this Production Right, unless expressly provided to the contrary; and

1.2.1.3.the words 'include' and 'including' shall mean to be inclusive without limiting the generality of the description preceding such term and are used in an illustrative sense and not a limiting sense.

1.2.2.Headings and sub-headings to Clauses and sub-clauses in this Production Right are inserted for convenience only and are not to be taken into consideration in the interpretation or construction of this Production Right.

1.2.3.References to any Clause or Annexure are to a Clause or Annexure (as the case may be) of this Production Right, unless expressly stated to the contrary.

1.2.4.This Production Right has been written in English and shall be interpreted and construed in accordance with the English language. All correspondence, communication and documents exchanged between the Grantor and the Holder in connection herewith, whether oral or written, shall be in the English language.

1.2.5.Except as otherwise provided herein, reference to any statute, statutory provision or regulation shall include a reference to that statute, statutory provision or regulation as amended, extended or re-enacted from time to time.

1.2.6.Unless the context otherwise requires, words denoting the singular include the plural and vice versa.

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1.2.7.Unless the context otherwise requires, references to persons shall include natural persons, bodies corporate, unincorporated associations and partnerships.

1.2.8.In the event of any conflict or inconsistency between the provision of this Production Right and the Act, the provisions of the Act shall govern. In the event of any conflict or inconsistency between the provisions of the Production Right and any Regulations, the Regulations shall govern.

1.2.9.In the event of any conflict between the provision of the main body of this Production Right and its Annexures the provisions of the main body and this Production Right shall govern.

2.**Granting of the Production Right**

2.1.Subject to the Act, the Regulations and the terms and conditions set forth herein, the Grantor hereby grants to the Holder and the Holder hereby accepts this Production Right.

2.2.As of the Effective Date, the Participating Interest of the Holder is 100 (one hundred) percent.

3.**Production Area**

The Production Area shall comprise the farms/Area set out on **Annexure "A"** hereto situated in the district/s of Ventersburg, Welkom, Odendaalsrus in the Free State Province measuring 187427, 2189 (one hundred and eighty seven thousand four hundred and twenty seven comma two one eight nine) hectares in extent.

4.**Exclusive Right to Apply for Separate Production Rights in Respect of Discoveries**

4.1.Subject to the provisions of Section 83 of the Act read together with Regulation 34, the Holder has the exclusive right to sever from this Production Right, apply for and be granted a separate production right in respect of each Commercial Discovery within the Production Area, provided that any such application for a separate production right has been applied for prior to the expiry date of this Production Right. Any production right granted to the Holder shall cover an area which is no less than the area fully covering each Commercial Discovery and in the event that a Commercial Discovery extends beyond the boundary of the Production Area into acreage over which no other person has an outstanding application for a production right, the Holder shall have the right to apply for a separate production right to include the full extent of the Commercial Discovery that falls outside the boundary of the Production Area.

4.2.Any area falling within the Production Area in respect of which a separate production right has been granted to the Holder shall, as from the date such separate production right comes into effect in accordance with the Act, be severed from and no longer form part of the Production Area in respect of this Production Right, whereupon this Production Right shall cease to apply in respect of such area.

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4.3.In the case of the severance referred to in Clause 4.2, the Holder shall, as soon as practicable after the separate production right comes into effect, submit the necessary amended map reflecting the new size and extent of the Production Area, and the necessary endorsements shall be reflected on the Grantor's records.

4.4.Where this Production Right provides for a separate production right to be granted to the Holder, such separate production right shall be granted in a form and on terms and conditions which are in all material respects, consistent with the Production Right,

5.**Rights and Obligations of the Holder**

5.1.Without derogating from the Holder's rights and obligations in terms of this Production Right and Sections 5 and 86 of the Act, the Holder shall have the:

5.1.1.right by itself or via any other member of the Holder Group to enter the Production Area, bring on to the Production Area any plant, machinery and equipment and build, construct and lay down any surface, underground or under sea infrastructure, both inside and outside the Production Area, which may be required for the purpose of conducting Production Operations;

5.1.2.sole and exclusive right to carry out Production Operations, explore for Petroleum and, if applicable, conduct Appraisal Operations, on or under the Production Area for its own account;

5.1.3.exclusive right to own, use, produce, remove, take in kind, lift, transport (via pipelines, tank ships or otherwise), export and dispose of any Petroleum, including by-products, found in the Production Area, whether within or outside of the State, at prices obtained by the Holder;

5.1.4.right to own and dispose of any and all facilities, materials, equipment, supplies and consumables purchased and/or leased by the Holder for the conduct of Production Operations; and

5.1.5.right to carry out any other activity incidental to Production Operations, which activity does not contravene the Act.

5.2.Without derogating from the Holder's other obligations in terms of this Production Right, the Holder shall:

5.2.1.conduct Production Operations in accordance with the Annual Production Work Programme and the Production Work Programme;

5.2.2.comply with the Social and Labour Plan;

5.2.3.comply with the Environmental Management Programme; and

5.2.4.pay all amounts due and payable to the Grantor in terms of the Act, the Regulations, this Production Right and Applicable Laws.

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6.**Commencement, Duration and Renewal**

6.1.This Production Right will commence on the Effective Date and, unless abandoned, cancelled, relinquished, suspended, terminated, extended or renewed in accordance herewith, will continue to be in force and effect until the end of the Initial Period.

6.2.In accordance with Section 86(2) of the Act, the Holder shall, within 1 (one) year from the Effective Date, or such extended period as the Minister may authorise, commence Production Operations in accordance with the Annual Production Work Programme; provided that, if the Holder has exercised its option under Clause 32.1 of the Exploration Right (the 'Gas Market Development Period'), then the Holder shall commence Production Operations within 1 (one) year of the expiry of the Exploration Right Gas Market Development Period.

6.3.Upon application by the Holder prior to the end of the Initial Period, or of any Renewal Period, this Production Right shall be renewed by the Minister in accordance with and subject to the provisions of Section 85 of the Act read together with Regulation 38.

7.**Royalties and Other Payments**

7.1.The Holder shall pay royalties to the State in accordance with the Royalty Legislation read with the Royalty Stability Agreement if entered into between Minister and the Holder.

7.2.All amounts due and payable by the Holder to the Grantor under this Production Right, which, for the avoidance of doubt, shall exclude the royalties payable in accordance with the Royalties Legislation, shall be paid into the Agency's nominated bank account, namely:

Bank Name: ABSA

Branch: Parow

Branch Code: 502110

Account name: Petroleum Agency SA

Account number: 405 103 0832

Account type: Current Account

or such other bank account as the Grantor may from time to time notify the Holder in writing, but in no event will such notice be less than 30 (thirty) days before the beginning of the applicable payment date.

8.**Technical Advisory Committee**

8.1.The Parties shall by notice to each other, within 30 (thirty) days from the Effective Date, establish a committee (herein referred to as the 'Technical Advisory Committee') by appointing and identifying in the said notice representatives as follows:

8.1.1.a chairman and one other person appointed by the Grantor; and

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8.1.2.two persons appointed by the Holder (one of which shall be a representative of the Operator).

8.2.The Grantor and the Holder may appoint by notice to each other a replacement representative or an alternate to act in place of their representative. When an alternate acts in the place of any representative he or she shall be deemed to have the powers and shall perform the duties of such representative.

8.3.Without prejudice to and without derogating from the rights and obligations of the Holder in terms of this Production Right, the Act and the Regulations, the functions of the Technical Advisory Committee are as follows:

8.3.1.to review the Annual Production Work Programme and the progress of all Production Operations, to monitor the implementation thereof and to provide the Holder with advice and recommendations with regard thereto;

8.3.2.to review any proposed amendments to the Annual Production Work Programme and/or the Production Work Programme and to provide the Holder with advice and recommendations with regard thereto;

8.3.3.to review any Appraisal Programme and to provide the Holder with advice and recommendations with regard thereto;

8.3.4.to review any proposed production work programme to be submitted in support of an application for a separate production right pursuant to Clause 4.1 and provide the Holder with advice and recommendations with regard thereto;

8.3.5.to review the accounting of expenditure and the maintenance of operating records and reports kept in connection with Production Operations and to provide the Holder with advice and recommendations with regard thereto; and

8.3.6.to offer advice to the Holder in order to promote the efficient carrying out of Production Operations.

8.4.The Technical Advisory Committee shall meet once annually within 15 (fifteen) days of the submission of the proposed Annual Production Work Programme pursuant to Clause 15.1. Otherwise, the Technical Advisory Committee shall meet as and when required by its members, in which case 30 (thirty) days' notice must be given by the Party requesting such meeting.

8.5.All meetings shall be held in Cape Town, South Africa or such other place as is unanimously agreed to by the members of the Technical Advisory Committee.

8.6.The Grantor shall propose for the Holder's consideration a meeting agenda. The aforesaid agenda and the copies of all the necessary documentation and presentation materials shall be exchanged between the Parties not less than 7 (seven) days prior to the meeting.

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8.7.Three representatives of the Technical Advisory Committee shall form a quorum, provided that at least one representative of the Grantor and one representative of the Operator are present.

8.8.Any member of the Technical Advisory Committee shall on no less than 7 (seven) days' notice to the other members of the Technical Advisory Committee prior to the meeting have the right to bring any expert or advisor to a meeting of the Technical Advisory Committee for the purpose of advising on any matter requiring the advice of an expert or advisor. The chairman of the meeting shall cause minutes of each meeting to be kept and circulated to the members of the Technical Advisory Committee within 30 (thirty) days of each meeting.

8.9.The proceedings and processes of the Technical Advisory Committee are without prejudice to the rights and obligations of the Grantor Group or the Holder Group.

8.10.Where a Party has assigned not less than 10% of its Participating Interest to a person other than the other Party, the membership of the Technical Advisory Committee shall, without reduction in the number of representatives of the Grantor and the Holder, be enlarged to include such assignee, who shall appoint and identify in writing to the Parties one representative who shall, subject to the provisions of this Clause 8, be entitled to participate in the proceedings and processes of the Technical Advisory Committee. The Grantor may in such circumstances enlarge its' membership of the Technical Advisory Committee to equal that of the Holder and any such assignee.

9.**Cancellation or Suspension of the Production Right**

9.1It is recorded that in terms of section 90 of the Act the Minister is empowered to cancel or suspend this Production Right in the circumstances set out in and in accordance with the provisions of Section 47 of the Act.

9.2Should this Production Right be cancelled or suspended in accordance with Section 90 of the Act, the Holder shall not be absolved from those obligations and liabilities that have accrued up to the date of such cancellation or suspension.

9.3Any cancellation or suspension of this Production Right by the Grantor shall be without prejudice to the Grantor's or the Holder's other rights under this Production Right or Applicable Laws.

10.**Voluntary Abandonment and Voluntary Relinquishment of the Production Area**

10.1Subject to Clause 10.5, the Holder may, at any time, upon giving the Grantor not less than 180 (one hundred and eighty) days' prior notice, abandon this Production Right by relinquishing the entire Production Area to the Grantor.

10.2If the Holder gives notice to abandon this Production Right in terms of Clause 10.1, the Holder shall following the date of such notice have the right to discontinue Production Operations and shall, subject to Section 43 of the Act, from such date have no further cost, liability or obligation in respect of Production

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Operations, including, for the avoidance of doubt, the Production Work Programme and the Annual Production Work Programme.

10.3Subject to Clause 10.5, the Holder may, at any time and from time to time, by giving the Grantor not less than 90 (ninety) days' prior notice, relinquish any portion of the Production Area. Such notice shall be accompanied by a map depicting the Production Area still covered by this Production Right.

10.4If the Holder gives notice to relinquish any portion of the Production Area in terms of Clause 10.3, the Holder shall following the date of such notice have the right to discontinue Production Operations in respect of that portion of the Production Area relinquished and shall, subject to Section 43 of the Act, from such date have no further cost, liability or obligation in respect of Production Operations in respect of that portion of the Production Area relinquished, including, for the avoidance of doubt, the Production Work Programme and the Annual Production Work Programme, which shall be modified accordingly.

10.5Any abandonment in terms of Clause 10.1 or relinquishment in terms of Clause 10.3 shall not absolve the Holder of any cost, liability or obligation incurred by the Holder in respect of this Production Right prior to the date of such abandonment or relinquishment.

10.6From the date that the Holder has abandoned this Production Right in terms of Clause 10.1 or has relinquished a portion of the Production Area in terms of Clause 10.3, the Grantor shall be entitled to grant to any other person any of the rights and permits referred to in the Act in respect of the Production Area so abandoned or relinquished, subject to Section 43 of the Act.

10.7From the date that the Holder has abandoned this Production Right in terms of Clause 10.1, the Holder shall within 6 (six) months furnish the Grantor with a copy of all the Acquired Data that has not been previously furnished to the Grantor. The Holder shall thereafter be entitled to freely use, distribute or dispose of such Acquired Data in respect of the Production Area so abandoned.

10.8From the date that the Holder has relinquished any portion of the Production Area in terms of Clause 10.3, the Holder shall within 6 (six) months furnish the Grantor with a copy of all of the Acquired Data that has not been previously furnished to the Grantor in respect of that portion of the Production Area so relinquished. The Holder shall thereafter be entitled to freely use, distribute or dispose of such Acquired Data.

10.9The Holder shall apply for a closure certificate in terms of Section 43 of the Act in respect of any abandonment or relinquishment in terms of this Clause 10.

11.**Rights to Minerals and Petroleum**

11.1Except as provided for herein in respect of Petroleum and its by-products, this Production Right confers no rights on the Holder in respect of any mineral (as defined in the Act) discovered in the Production Area. Should the Holder discover any mineral of potential value during Production Operations, the Holder shall, as soon as reasonably practicable after discovery of the same, report such discovery to the Grantor.

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11.2The Holder may thereafter, subject to any prior third party rights, apply for a reconnaissance permission, prospecting right or mining right in respect of such mineral.

12.**Examination of the Production Area**

The Minister or any person duly authorised by the Minister in accordance with Section 91 of the Act may, in accordance with Sections 91 and 92 of the Act, enter upon the Production Area and conduct routine inspections and exercise such related powers as are set out in the Act at all reasonable times and at their own risk and expense.

13.**Records and Samples**

13.1Without derogating from the Holder's responsibilities in terms of Section 88(1) of the Act read together with Regulation 37, the Holder shall keep current and accurate records of all Acquired Data acquired during Production Operations and such Acquired Data shall be kept in such form as is agreed between the Parties, acting reasonably.

13.2Samples shall be taken by the Holder in accordance with Applicable Laws, Good International Petroleum Industry Practices and the Grantor's reporting and sampling guidelines. The Holder shall, at its own cost, save, correctly label and, as soon as reasonably practicable after taking the same, deliver to the Grantor a representative portion of all Samples in such form as is agreed by the Parties, acting reasonably.

13.3Subject to Clause 13.5, the Grantor shall be entitled to inspect any Samples kept by the Holder at all reasonable times on reasonable notice.

13.4Prior to the Holder discarding any Samples, the Holder shall notify the Grantor. Should the Grantor require such Samples, the Holder shall, at its cost, deliver to the Grantor the Samples so requested in writing by the Grantor. Notwithstanding anything to the contrary in this Production Right or otherwise, if the Grantor does not respond within 30 (thirty) days of receipt of such notice from the Holder, the Holder is free to discard such Samples.

13.5The Holder may export Existing Data and Acquired Data (including Samples) for processing or laboratory examination or analysis by the Holder or by third parties or for storage outside of the State, provided that representative Samples (reasonably equivalent in quality) and copies of the Acquired Data (reasonably equivalent in quality) have first been delivered to the Grantor. In the case of Acquired Data or Samples which cannot be copied or sub-sampled prior to export (e.g. core), the Holder shall retain such Acquired Data or Samples, provided that the Grantor is informed that such Acquired Data or Samples cannot be copied or sub-sampled prior to the export thereof.

13.6Subject to Clause 13.5, the Holder shall deliver to the Grantor, at the Holder's expense, digital and, where appropriate, paper copies of all Acquired Data (other than Samples) as soon as reasonably practicable after such Acquired Data is acquired or prepared.

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14.**Reports**

14.1.The Holder shall keep the Grantor advised of all material developments taking place during the course of Production Operations and, to the extent the same have not already been supplied by the Holder pursuant to this Production Right or the Exploration Right, shall furnish the Grantor with such other further reports and information as the Grantor may reasonably require.

14.2.Without derogating from the generality of Clause 14.1 or the Holder's reporting obligations in terms of Section 88 of the Act, during the term of this Production Right the Holder shall within 21 (twenty one) days after the end of (a) the First Reporting Period, (b) each Quarter after the First Reporting Period and (c) the Final Reporting Period, and within 60 (sixty) days from the end of each completed Year, submit to the Grantor a written report reflecting, for the relevant period, the progress of Production Operations, including a summary of:

14.2.1.the numbers of local persons (classified by race and gender) and expatriate persons employed;

14.2.2.the work done and expenditure on Production Operations;

14.2.3.the site and depth of every well drilled or being drilled and the formations penetrated and particulars regarding any occurrence of Petroleum encountered;

14.2.4.a statement of compliance with the Environmental Management Programme; and

14.2.5.a statement of compliance with the Social and Labour Plan.

14.3.The Grantor and the Holder shall each own the Acquired Data in its possession and, after the termination, cancellation or abandonment of this Production Right or relinquishment of any portion of the Production Area, each Party may freely use, sell, distribute, trade, license or otherwise disclose or dispose of such data relating to the areas no longer included in the Production Area; provided, however, in the case of a separate production right granted pursuant to Clause 4.1, Acquired Data in respect of the area covered by such production right will be subject to the terms and conditions set forth in such production right.

14.4.None of the terms of this Production Right shall be construed as requiring the Holder to disclose any of its or its Affiliates' proprietary technology or proprietary technology that is licensed or otherwise acquired by the Holder or its Affiliates from third parties.

14.5.Within 6 (six) months, from the termination and/or cancellation of this Production Right, the Holder shall furnish the Grantor with a copy of all the Acquired Data not already in the possession of the Grantor.

15.**Production Work Programme and Annual Production Work Programme**

15.1Not later than 60 (sixty) days from the Effective Date, the Holder shall submit to the Grantor an Annual Production Work Programme for the remainder of the current Year. Thereafter, at least 90 (ninety) days

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prior to the commencement of each succeeding Year, the Holder shall submit to the Grantor its Annual Production Work Programme for such succeeding Year or part thereof, as the case may be.

15.2Each Annual Production Work Programme shall set forth the Production Operations to be carried out during the subject Year or part thereof, as the case may be. The Production Operations to be carried out under the Annual Production Work Programme shall be consistent with the Production Work Programme.

15.3Should the Holder have exercised its option under Clause 32.1 of the Exploration Right in respect of this Production Right, then the provisions of Clauses 15.1 and 15.2 shall not apply until such time as the Holder has given notice to the Grantor pursuant to Clause 32.2.1 of the Exploration Right; provided, however, if such notice is given less than 90 (ninety) days prior to the commencement of a Year, then the 90 (ninety) day period required by Clause 15.1 for submission of the Annual Production Work Programme for the succeeding Year shall be deemed to have been satisfied in respect of such Annual Production Work Programme.

15.4If the Holder gives notice to the Grantor pursuant to Clause 32.2.2 of the Exploration Right, then the provisions of Clauses 15.1 and 15.2 shall be of no further force or effect from the date of such notice and the Holder shall have no liability or obligation in respect thereof.

15.5Any approval of the Minister required pursuant to Section 102 of the Act in connection with any amendment to the Production Work Programme proposed from time to time by the Holder shall not be unreasonably withheld, conditioned or delayed.

16.**Discoveries and Testing**

16.1If from time to time during the course of Production Operations under this Production Right a Discovery is made by the Holder in the Production Area, the Holder shall:

16.1.1promptly notify the Grantor of the fact that a Discovery has been made;

16.1.2cause tests to be made on the Discovery within a reasonable period of time consistent with Good International Petroleum Industry Practices, in order to determine whether the Discovery is or could be a Commercial Discovery and worthy of appraisal. Prior to testing the Discovery, the Holder shall give notice to the Grantor of the tests the Holder intends to conduct and the Grantor shall have the right to witness such tests.

16.1.3within 60 (sixty) days (or such longer period as may be agreed between the Parties in writing) after having completed and received the results of the tests under Clause 16.1.3, furnish the Grantor with a copy of the test results report containing a summary of the Holder's interpretation of such tests (the 'Discovery Report')

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16.2All tests and measurements conducted by the Holder for the purpose of establishing the potential existence of a Commercial Discovery shall be carried out in accordance with Good International Petroleum Industry Practices.

16.3If the Holder considers, after providing the Grantor with the Discovery Report, that the Discovery could be a Commercial Discovery, then the Holder must take reasonable steps to appraise the Discovery and submit an Appraisal Programme to the Grantor for approval.

16.4Within 180 (one hundred and eighty) days from the date of completion of Appraisal Operations, or such further period as agreed between the Parties in writing, the Holder shall deliver to the Grantor (a) a full report containing particulars of the results of such Appraisal Operations, including particulars and preliminary estimates relating to the location and depth of Petroleum reservoirs, the composition of Petroleum, the estimated recoverable reserves of Petroleum, and the estimated daily production potential of Petroleum, and (b) a declaration by the Holder as to whether or not the Discovery is a Commercial Discovery (the 'Appraisal Report').

16.5If the Holder (a) considers, after providing the Grantor with the Discovery Report, that the Discovery is a Commercial Discovery, or (b) declares in the Appraisal Report that the Discovery is a Commercial Discovery, then the Holder may either (i) submit a proposal to amend the Production Work Programme to provide for the development of, production from and exploitation of, the Discovery; or (ii) apply for and be granted a separate production right in respect of the Discovery in accordance with Clause 4.

16.6If (i) the Holder submits a proposal to amend the Production Work Programme to provide for the development of, production from and exploitation of, the Discovery and (ii) Production Operations are significantly expanded (including by extension of the production area as contemplated in Clause 16.9) as a result of the Discovery, the holder shall make an application in terms of section 102 of the Act to amend the Production Work Programme, the Environmental Management Programme and Social and Labour Plan to take account of the Discovery and the Minister shall not unreasonably withhold, condition or delay approval of any such amended Production Work Programme, Environmental Management Programme and Social and Labour Plan.

16.7The Holder shall have the exclusive right to develop, produce and exploit any Discovery that is the subject of an amended Production Work Programme, which Discovery shall be deemed to be included in this Production Right, which shall apply *mutatis mutandis* thereto.

16.8Following any approval of the amended Production Work Programme, the next proposed Annual Production Work Programme shall be prepared according to the amended Production Work Programme.

16.9In the event that the Discovery extends beyond the Production Area into other area(s) which geologically form part of the same Petroleum reservoir within the State which are subject to permits or rights held entirely by the Holder or the Holder and any other party(ies) to this Production Right, then the Holder shall have the right to give notice to the Grantor of the same and shall include with such notice a map in similar format to Annexure A depicting the size and extent of the Production Area and the size and extent of the

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Discovery. Upon receipt by the Grantor of such notice and map, the Production Area shall be deemed to be enlarged to include the size and extent of the Discovery, the Holder shall present the original copy of this Production Right to the Grantor, complete with such map, for an endorsement reflecting such enlarged Production Area, the Grantor shall make such endorsement and shall make the same endorsement on its original copy of the Production Right and shall reflect the same on its records and the Production Area, as enlarged, shall for all purposes be deemed to be included in this Production Right, which shall apply mutatis mutandis thereto.

17.**Manner of Conducting Production Operations**

17.1Without derogating from the provisions of Applicable Laws and the Environmental Management Programme, the Holder shall:

17.1.1execute all Production Operations in a proper and workmanlike manner in accordance with Good International Petroleum Industry Practices and, without prejudice to the generality of the foregoing, the Holder shall take all reasonable and practical steps in order to prevent:

17.1.1.1the escape or waste of Petroleum discovered in the Production Area;

17.1.1.2damage to any Petroleum reservoir;

17.1.1.3the entrance of uncontrolled water through wells to any Petroleum reservoir;

17.1.1.4the escape of Petroleum into any waters or aquifer in the vicinity of the Production Area; and

17.1.1.5pollution of the terrestrial or marine environment;

17.1.2promptly inform the Grantor of the occurrence of any event described in Clauses 17.1.1.1 to 17.1.1.5 inclusive;

17.1.3take all actions required under the Environmental Management Programme and all Applicable Laws with respect to any of the incidents referred to Clauses 17.1.1.1 to 17.1.1.5 inclusive;

17.1.4upon the completion of any operation or activity within the Production Area, promptly notify the Grantor of any obstruction, including the location, nature and extent thereof, that remains in the Production Area;

17.1.5not flare any Petroleum, except in the case of flaring for safety reasons, without the Grantor's prior written approval, which approval shall not be unreasonably refused, conditioned or delayed; and

17.1.6promptly give notice to the Grantor of all Production Operations which may be reasonably expected to interfere with the rights of other users of the Production Area and take all reasonable steps to minimise interference with the rights of other users.

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18.**Existing Data**

18.1It is recorded that no Existing Data has been available to the Holder. Any data or information relating to the Production Area that the Grantor has available at the Effective Date independent of the Holder, or which the Grantor subsequently acquires independent of the Holder, will be made available for inspection, copying and use by the Holder. The Holder shall pay the Grantor for the reasonable and customary costs incurred in copying and preparing such data or information. Should such further data or information be provided to the Holder, such data and information shall be deemed to form part of the Existing Data and Annexure F will be amended accordingly.

18.2Upon terms and conditions to be agreed, the Grantor may assist the Holder in resolving technical problems relating to the Existing Data. Such assistance shall not include interpretation of the Existing Data.

18.3Ownership in all Existing Data vests in the Grantor. On expiry, cancellation, termination or abandonment of this Production Right, all Existing Data in the Holder's possession shall as soon as reasonably practicable, at the Holder's cost, be returned to the Grantor. Alternatively, the Holder shall submit to the Grantor a certificate to the effect that all such copies have been destroyed.

18.4While every effort has been made to verify the quality and accuracy of the Existing Data, the Grantor Group shall not be liable for any error or inaccuracy contained within the Existing Data or any damages of whatsoever nature suffered by the Holder arising from any such error or inaccuracy in the Existing Data.

19.**Environmental Protection and Financial Provision**

19.1.The Holder shall conduct all Production Operations in accordance with the Environmental Management Programme.

19.2.The Holder must annually assess its environmental liability in accordance with Section 41(3) of the Act and, if appropriate, increase-such financial provision to the satisfaction of the Minister.

20.**Social and Labour Matters**

20.1.The Grantor and the Holder are desirous of encouraging black investment and employment in the upstream sector of the oil and gas industry in the State. To this end:

20.1.1.the Holder shall, within 90 days from the effective date, offer to sell, at a fair market value, on terms to be agreed and approved by the Agency, up to 10% (ten percent) of its Participating Interest or in its equity (the 'Divestment Participating Interest') to either:

20.1.1.1.a suitable historically disadvantaged person ('HDP'); or

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20.1.1.2.where no HDP has been identified or the Agency has not approved the proposed offer because it does not advance the attainment of the object referred to in section 2(d) of the Act, any State Owned Company;

(with the HDP or State Owned Company, as the case may be, being referred to herein as the 'Prospective Buyer');

provided, however, that, notwithstanding the foregoing provisions of this Clause 20, if the Holder shall have divested part of its Participating Interest prior to offering to sell the Divestment Participating Interest to the Prospective Buyer pursuant to this Clause 20, then the Divestment Participating Interest shall be divided pro-rata among all of the holder(s) of a Participating Interest and the provisions of this Clause 20 shall apply pari passu with respect thereto; and further provided, always, that neither the Prospective Buyer nor any other person shall have any right pursuant to the provisions of this Clause 20 or Applicable Laws (irrespective of any change in Applicable Laws following the date of execution of the Exploration Right) to acquire more than a 10 (ten) percent Participating Interest;

20.1.2.the Holder shall require the Prospective Buyer to become a party to this Production Right upon execution of a written agreement in respect of the purchase by the Prospective Buyer of the Divestment Participating Interest;

20.1.3.the Holder shall employ South Africans having appropriate qualifications and experience (giving preference to historically disadvantaged persons), taking into account the Holder's operational requirements under this Production Right and provided, always, that the Holder may employ a person who has necessary qualifications and experience and who is not a South African if the required skills are not available in the South African labour market. Wages and salaries of the Holder's South African personnel will be determined in accordance with prevailing local labour market conditions;

20.1.4.in the normal course of the Holder's operations, the Holder shall subject to the conditions set out in Clause 20.1.3 give preference, in procuring for purposes of use in Production Operations, to the equipment, machinery, materials, instruments, supplies and accessories manufactured or produced by or otherwise available in the State (and particularly from historically disadvantaged persons) and which are competitive with those available outside the State in terms of price, quality, reliability and availability;

20.1.5.the Holder shall subject to the conditions in Clause 20.1.3 use contractors and/or sub-contractors who are South Africans (giving preference to historically disadvantaged persons) whose services and standards are competitive with those available outside the State in terms of price, quality, reliability, expertise and availability; and

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20.1.6.the Holder shall pay the amounts set out and specified in the attached Annexure E to the Upstream Training Trust, to be used by the Upstream Training Trust for the training, education, and obtaining of practical experience for historically disadvantaged persons and other South Africans in the manner determined by the trustees.

20.2.The Holder must, in consultation with the Grantor, make revisions to the Social and Labour Plan attached hereto as Annexure D in accordance with Regulation 46 to ensure compliance with section 2(d) and(f) of the Act.

20.3.The Holder must submit the revised Social and Labour Plan, prepared in accordance with Clause 20.2, 18 months from the effective date and the revised Social and Labour Plan will become effective upon approval of the Minister, but not before 24 months from the effective date.

20.4.Failure by the Holder to submit the revised Social and Labour Plan in accordance with Clauses 20.2 and 20.3 and to obtain the approval of the Minister for the revised Social and Labour Plan after 24 months from the effective date shall constitute breach of the terms and conditions of the right as contemplated by section 47(1) (b) of the Act.

21.**Financial Records and Audits**

21.1.The Holder shall keep in the State financial records and accounts of all transactions pertaining to this Production Right in accordance with generally accepted accounting principles applicable in the State.

21.2.Upon at least 30 (thirty) days' advance notice, the Grantor or its duly appointed representative may audit, at its own cost, any such financial records and accounts pertaining to this Production Right or copies thereof.

22.**Indemnity and Insurance**

22.1.The Holder shall for the duration of this Production Right conduct Production Operations in a manner that safeguards and protects persons from injury or death and prevents damage or destruction of property and the environment in accordance with Good International Petroleum Industry Practices.

22.2.The Holder hereby undertakes to defend, hold harmless and indemnify the Grantor Group from and against any and all claims, costs, charges, liabilities and expenses, including reasonable legal costs (hereinafter referred to as 'Claims'), that may be instituted against or suffered by any member of the Grantor Group as a result of injury or death to any person or damage or destruction to any property and/or the environment arising from the negligent and/or unlawful acts and/or omissions of the Holder Group.

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22.3.The Holder shall as soon as reasonably practicable after the Effective Date obtain and maintain sufficient insurance during the term of this Production Right to insure those risks related to Production Operations and support the indemnities given by the Holder under this Production Right which are customary to insure against in the international petroleum industry or in accordance with Good International Petroleum Industry Practices. The Holder, with the prior written approval of the Grantor, not to be unreasonably refused, conditioned or delayed, may implement a policy of self insurance in respect of certain risks related to Production Operations. Without derogating from the generality of the foregoing such insurance shall specifically provide for:

22.3.1.all risks in respect of any property or equipment used in connection with Production Operations;

22.3.2.pollution liability;

22.3.3.third-party liability and public liability;

22.3.4.removal of wrecks and cleaning-up operations pursuant to an accident in the course of or as a result of Production Operations; and

22.3.5.the Holder's liability to its contractors, employees, consultants and agents engaged in Production Operations.

23.**Health and Safety**

If any emergency or incident arising from Production Operations causes or has the potential to cause death and/or injury to persons or damage to and/or destruction of property and/or the environment, the Holder shall to the extent practicable in the circumstances consult with the responsible Government departments and take such action as may be prescribed under Applicable Laws or where not prescribed take such prudent and necessary action in accordance with Good International Petroleum Industry Practices.

24.**Confidentiality and Public Announcements**

24.1Except as otherwise provided under this Production Right, the Acquired Data and the Existing Data together with all programmes, tests, analyses, results, books, statements, records, returns, plans, information and correspondence between the Parties (hereinafter collectively referred to as 'Confidential Information') shall, subject to Section 88(2) of the Act, be treated as confidential by the Parties during the term of this Production Right and shall not be disclosed by either of the Parties to any person without the prior written consent of the other Party, such consent not to be unreasonably refused, conditioned or delayed, except in the following circumstances:

24.1.1where the Holder is required by law, regulation, decree, rule or order applicable to the Holder or its Affiliates to disclose such Confidential Information;

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24.1.2where the Holder discloses Confidential Information to any member of the Holder Group; provided that the Holder informs that member of the Holder Group of the confidential nature of information so disclosed;

24.1.3to the extent that such Confidential Information has to be produced at legal proceedings or because an order from a court of competent jurisdiction has compelled the production of such Confidential Information;

24.1.4where the Holder discloses Confidential Information to prospective or actual contractors, consultants, advisors and attorneys employed by any member of the Holder Group where disclosure of such Confidential Information is necessary to such person's services; provided that, prior to disclosure, the Holder informs such contractor, consultant, advisor and/or attorney of the confidential nature of the information so disclosed and takes reasonable steps to ensure the confidentiality thereof;

24.1.5where the Holder discloses Confidential Information to a bank or other financial institution to the extent appropriate to the Holder arranging for funding; provided that, prior to disclosure, such person provides the Holder with a written undertaking of confidentiality that is not less restrictive than the confidentiality restrictions set out in this Clause 24;

24.1.6to the extent that such Confidential Information must be disclosed pursuant to any rules or requirements of any recognised stock exchange on which the securities of any member of the Holder Group are or are to be traded;

24.1.7where the Holder discloses Confidential Information to a bona fide prospective purchaser or purchasers of all or part of the Holder or to whom the Holder's rights and obligations under this Production Right are proposed to be assigned;

24.1.8to the extent that any Confidential Information, through no fault of the Holder, has become or becomes part of the public domain;

24.1.9where the Holder discloses Confidential Information as part of an exchange with third parties for the geological, geophysical, geochemical or any other technical or scientific data, reports and information (either raw, processed or interpreted) pertaining to their Petroleum operations in respect of other acreage within the State and subject to the execution of suitable confidentiality arrangements. In this event the Grantor shall be apprised of the extent of the proposed exchange; or

24.1.10where the Holder discloses Confidential Information to its co-venturers pursuant to the terms of the Joint Operating Agreement.

24.2Except as may be required by laws, rules, regulations or decrees (including that of a stock exchange) applicable to the Holder or its Affiliates, the Holder shall make no public announcement with regard to this Production Right or any matter related thereto, unless the Holder has furnished the Grantor with a copy of the intended public announcement and the Grantor has given its prior written approval, which approval shall not unreasonably be withheld or delayed. If the Grantor desires to issue any press release, media

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statement, or interview on any Petroleum Discovery, estimated Petroleum reserves, and/or any well drilling operations, tests, and/or results relating to the Production Operations hereunder, the Grantor shall give written notice thereof to the Holder at least 3 (three) Business Days in advance to enable the Holder to comply with disclosure rules and requirements imposed on any Holder Party or its Affiliates by the laws, regulations or rules of the relevant countries in which such Holder Party is. incorporated or doing business or in which the securities of such Holder Party or its Affiliates are or are to be listed or traded.

24.3When a public announcement or statement becomes necessary or desirable because of impending danger to, or loss of, life, damage to property or pollution as a result of Production Operations, either Party is authorised to issue and make such announcement or statement without prior notice or prior approval of the other Party where such prior notice and approval is impractical. In such a case the Party making the announcement or statement shall promptly furnish the other Party with a copy of such announcement or statement.

25.**Cession and Sub-contracting**

25.1This Production Right may not be ceded, transferred, let, sub-let, assigned, alienated or otherwise disposed of without the written consent of the Minister in terms of Section 11 of the Act

25.2The Holder may from time to time appoint one or more contractors and/or sub-contractors to carry out any portion of the Annual Production Work Programme and/or Production Work Programme; provided that the Holder shall always remain liable to the Grantor for the compliance with and observance of its obligations in terms of this Production Right.

26.**Law and Interpretation**

26.1The Holder shall comply with all Applicable Laws.

26.2Without derogating from the provisions of Section 4 of the Act, this Right shall be governed, construed and interpreted in accordance with the laws of the State.

26.3The Grantor and the Holder are not partners, nor is it the intention of the Parties to create a partnership, and Production Operations to be carried out in terms of this Production Right are at the sole cost, risk and expense of the Holder and any person who acquires a Participating Interest hereunder, including, for the avoidance of doubt, the Divestment Participating Interest and the State Option.

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27.**Obligations of the Grantor**

27.1The Grantor undertakes to do and perform all acts and things which are or may be required to be done or performed to give full effect to this Production Right in accordance with its provisions and:

27.1.1shall ensure that the rights and obligations of the Holder under this Production Right will not be altered without the prior written consent of the Holder;

27.1.2the Grantor guarantees that the stability of the legal terms and the provisions of this Production Right, and any and all separate production rights arising from it, shall be maintained as such terms and provisions exist as of the date of execution of the Exploration Right for the duration of this Production Right and any and all separate production rights arising from it;

27.1.3if, at any time or from time to time after the date of execution of the Exploration Right, there is any change or changes enacted or prescribed to any national or local legislation, regulations, policies, practices, directives or the like ('Legislative Changes'), which in any way materially limit (directly or indirectly), or adversely affect (directly or indirectly) any rights granted to the Holder under this Production Right and/or any and all separate production rights arising from it, or obligations assumed by the Holder under this Production Right and/or any and all separate production rights arising from it and/or the contractual equilibrium of this Production Right and/or any and all separate production rights arising from it, then the Holder may notify the Grantor of the same, whereupon the Parties shall consult with each other and conduct negotiations in good faith and shall, for such purpose, attend at least one meeting with each other, with a view to agreeing upon and implementing an arrangement to take account of the Legislative Changes and to modify as appropriate this Production Right and/or any and all separate production rights arising from it to restore the contractual equilibrium thereof for the remaining duration of this Production Right and/or any and all separate production rights arising from it;

27.1.4if the Parties cannot reach agreement pursuant to the provisions of Clause 27.1.3 within 90 (ninety) days of the notice referred to in Clause 27.1.1, then either Party shall be entitled to refer the matter to arbitration, in relation to which arbitration the provisions of Clause 34, shall have effect; and

27.1.5terms relating to Income Tax and royalty stability will be established through contracts between the Holder and the Minister of Finance of the State as provided for in the Income Tax Act, 1962 (Act No. 58 of 1962) and Royalty Legislation.

28.**State Option**

28.1Subject always to the obligations of the Grantor contained in Clause 27, the State has an option, exercisable within 90 (ninety) days from the approval by the Agency of the offer by the holder to sell a participating interest to a suitable HDP or any State Owned Company pursuant to the provisions of Clause 20.1.1 or, if the Holder has exercised its option with respect to the Gas Market Development Period, within 90 (ninety) days from the expiry of the Gas Market Development Period , to acquire up to 10 (ten) percent

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of the Holder's Participating Interest in this Production Right ('State Option'). The Holder must furnish the Grantor with all relevant and material information to enable the State to decide whether to acquire 10 (ten) percent of the Holder's Participating interest in this Production Right.

28.2Should the State elect to exercise the State Option it must notify the Holder, within 90 (ninety) days from the approval by the Agency of the offer by the holder to sell a participating interest to a suitable HDP or any State Owned Company pursuant to the provisions of Clause 20.1.1 or, if the Holder has exercised its option with respect to the Exploration Right Gas Market Development Period, within 90 (ninety) days from the expiry of the Exploration Right Gas Market Development Period:

28.2.1that it has elected to exercise the State Option; and

28.2.2the Participating Interest, up to 10 (ten) percent, that it elects to acquire.

28.3Upon the exercise of the State Option, the State will become a party to the joint operating agreement relating to the Production Area. The terms and conditions contained in the joint operating agreement shall not limit the State in the exercise of any of its rights and obligations as the Grantor hereunder. The rights and obligations of the State under the terms of the Joint Operating Agreement shall be separate from, and without prejudice to, its rights and obligations as the Grantor hereunder.

28.4The State shall pay its Participating Interest share of all costs and expenses related to any approved Production Work Programme and/or any approved Annual Production Work Programme; provided, however, that the State, or any assignee of all or part of the State's Participating Interest, shall not be liable for any costs and expenses relating to any Exploration Operations conducted within the Production Area prior to the Effective Date.

28.5If the State does not exercise the State Option within the 90 (ninety) day periods provided for in Clause 28.1, the State Option shall lapse and be of no further effect.

28.6Notwithstanding the foregoing provisions of this Clause 28, if the Holder shall have divested part of its Participating Interest prior to the exercise by the Grantor of the State Option, then the percentage Participating Interest to be acquired by the Grantor under the State Option shall be divided pro-rata among all of the holder(s) of a Participating Interest and the foregoing provisions of this Clause 28 shall apply pari passu with respect thereto; provided, always, that the Grantor shall have no right pursuant to the State Option to acquire more than a 10% (ten percent) Participating Interest.

29.**Vis Major**

29.1.Any act, cause, thing or event outside the control of the Holder, including acts of God, war, insurrection, civil commotion, blockade, strikes, flood, storm, lightning, fire, earthquake or loss of electricity for a sustained period, which prevents the Holder from fulfilling its obligations or enjoying its rights under this Production Right, shall be regarded as vis major and any failure on the part of the Holder to fulfil its obligations as a consequence of vis major shall not constitute a breach hereof.

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29.2.Financial inability, ordinary hardship and inconvenience on the part of the Holder, howsoever caused or arising, shall not be regarded as vis major.

29.3.If the Holder by reason of vis major as contemplated in Clause 29.1 is prevented from fulfilling its obligations or enjoying its rights under this Production Right, the Holder shall promptly notify the Grantor thereof and the Holder shall take all reasonable steps to investigate and remove the cause thereof. During the period of time such vis major continues (the 'Vis Major Period'), the Holder's obligation to perform Production Operations will be suspended. The Holder shall promptly notify the Grantor as soon as such Vis Major Period ends and the Holder shall as soon as is reasonably practicable thereafter resume Production Operations.

29.4.Upon the Holder notifying the Grantor of the end of the Vis Major Period, the period of suspension contemplated in Clause 29.3 shall come to an end. The Holder's notice referred to in the third sentence of Clause 29.3 shall state the length of the Vis Major Period, which shall be calculated from the date that the Holder first notified the Grantor of such vis major until the date that such vis major has ended. The duration of this Production Right shall be extended, *pari passu,* by an amount equivalent to the Vis Major Period.

29.5.In the event of the amendment of the duration of this Production Right envisaged in Clause 29.4, the Holder shall present the original copy of this Production Right to the Grantor who shall make an endorsement reflecting such amendment of the duration of this Production Right and the Grantor shall make the same endorsement on its copy.

30.**Amendments**

Any amendment or variation to this Production Right shall be agreed in writing between the Parties and submitted to the Minister for consent pursuant to Section 102 of the Act. Only once the Minister has consented to the amendment or variation will such amendment or variation be effective.

31.**Unitisation**

31.1.In the event that a Commercial Discovery within the Production Area forms part of a Petroleum reservoir to which third party exploration or production rights exist within the State (the 'Petroleum Bearing Area'), then the Grantor may by notice require the Holder to prepare a proposal for the unitisation of the Petroleum Bearing Area (the 'Unitisation Proposal'). The Grantor shall require the holder(s) of the adjacent exploration or production areas forming part of the Petroleum Bearing Area to provide the Holder with all such technical information and data as the Holder may reasonably require in order to assist in the preparation of the Unitisation Proposal. The Unitisation Proposal shall be submitted to the Grantor within the period specified in the said notice, which shall not be less than 180 (one hundred and eighty) days, or such longer period as the Parties, acting reasonably, may agree in writing.

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31.2.The Unitisation Proposal shall be prepared in accordance with Good International Petroleum Industry Practices and shall be objectively practical, fair and equitable to all holders of interests in the Petroleum Bearing Area.

31.3.If the Unitisation Proposal is not submitted within the period specified or agreed in Clause 31.1, or if the Unitisation Proposal submitted is not acceptable to the Grantor because it is not objectively practical, fair and equitable to all parties concerned, then the Grantor may appoint a committee of independent experts to prepare the Unitisation Proposal in accordance with Good International Petroleum Industry Practices.

31.4.The committee so appointed shall, after having given full consideration to any representations made by the Holder, submit a Unitisation Proposal to the Grantor, copied to the Holder, as soon as is practicable after being appointed.

31.5.The Grantor may, if satisfied that the Unitisation Proposal submitted by the Holder pursuant to Clause 31.11 or the independent committee pursuant to Clause 31.4 is objectively practical, fair and equitable to all parties concerned, confirm such proposal, and it shall be binding upon the Holder.

31.6.If the Holder fails to carry out any provision of the Unitisation Proposal the Minister may by notice giving reasons for the intention to suspend or cancel the PR and affording the Holder an opportunity to show why such action should not be considered require the Holder to do so within a reasonable period and if the Holder fails to comply with such notice the Minister may, in terms of Section 90 of the Act, suspend or cancel this Production Right in respect of that part of the Production Area which falls within the Petroleum Bearing Area.

32.**Special Provisions Relating to Discoveries of Gas**

32.1.If the Holder makes a Discovery, the economic development of which the Holder believes can only be accomplished if Gas produced as the primary or secondary product is sold commercially, then the Holder shall have the option, exercisable upon notice to the Grantor at the time that the Holder submits a proposal to amend the Production Work Programme or makes an application to the Grantor for a separate production right in respect of such Discovery pursuant to Clause 16.5, to have the Holder's obligations under the amended Production Work Programme or the proposed production work programme submitted in support of the application for a separate production right suspended for a period of up to 5 (five) years (hereinafter referred to as the 'Gas Market Development Period') commencing from the date on which the proposal to amend the Production Work Programme is approved or the separate production right applied for pursuant to Clause 16.5 becomes effective, as the case may be, during which period the Holder shall conduct studies to determine whether the Gas can be commercially produced. In such circumstances, the Production Work Programme in respect of such Discovery shall be deemed to be provisional and the Holder shall not be required to submit an Annual Production Work Programme in respect of such Discovery during the Gas Market Development Period.

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32.2.Not less than 90 (ninety) days prior to the expiry of the Gas Market Development Period, the Holder shall notify the Grantor either that:

32.2.1.the Gas can be commercially developed and produced, in which case the Holder shall proceed with implementation of the amended Production Work Programme or the proposed production work programme, as the case may be, duly amended if necessary; or

32.2.2.the Gas can be commercially developed and produced, in which case the Holder shall proceed with implementation of the amended Production Work Programme or the proposed production work programme, as the case may be, duly amended if necessary; or the Gas cannot be commercially developed and produced, in which case the Holder shall be deemed to have abandoned any relevant separate production right with effect from the expiry date of the Gas Market Development Period, the amended Production Work Programme or the proposed production work programme, as the case may be, shall no longer be of any effect, the Holder shall have no liability or obligation in respect thereof and the Holder shall continue Production Operations in accordance with the Production Work Programme.

32.3.The grant of any extension to the Gas Market Development Period shall be at the sole discretion of the Grantor, which discretion shall be exercised reasonably.

33.**Waiver or Lenience**

Any failure by either the Grantor or the Holder to exercise any of the rights that they have, whether in terms of this Production Right, the Act or the Regulations, or any lenience granted by them in terms thereof shall not constitute a waiver of such rights or a variation to the terms and conditions of this Production Right.

34.**Dispute Resolution**

34.1Should any difference or dispute arise between the Parties to this Production Right concerning;

34.1.1the conclusion, interpretation, application and execution of this Right;

34.1.2the authority of any signatory to the Right to conclude the Right on behalf of the party that he or she purports to represent;

34.1.3any alleged breach or repudiation of the Right;

34.1.4whether the Right is void or voidable at the instance of any party;

34.1.5any rectification of the Right, and/or;

34.1.6any other matter arising from this Right, (each, a "Dispute"), then either Party shall be entitled to deliver to the other a written notice recording the existence and, in brief, the nature of the Dispute ("the Dispute Notice"). The Dispute shall be deemed to have arisen on the date when a Dispute

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Notice is delivered to either Party. The Parties shall make every reasonable effort to resolve the Dispute on its merits by negotiation in good faith and shall, for that purpose, attend at least one meeting with each other. Such negotiations shall take place within 21 (twenty one) days of the Dispute arising, unless the Parties otherwise agree in writing, and shall endure for no longer than 7 (seven) days from the date of commencement thereof or such extended period as the Parties may agree in writing.

34.2If the Parties are unable to resolve the Dispute despite compliance with Clause 34.1, then the Dispute may at the instance of either Party be referred to and fully, finally and exclusively settled by arbitration, in terms of the provisions hereof.

34.3The proceedings, records and the award of the arbitration shall be in the English language. The venue for and seat of the arbitration shall be Cape Town, Republic of South Africa or such other place in the Republic of South Africa as may be agreed between the Parties. The Parties hereby waive irrevocably their right to institute any form of appeal, review or recourse to any court of competent jurisdiction insofar as such waiver may be validly made.

34.4Notwithstanding the referral of such Dispute to arbitration, the Parties shall, to the extent possible, proceed with the carrying out of their respective obligations under this Production Right, unless such obligations are directly in dispute: Provided that the foregoing undertaking shall be without prejudice to other rights and remedies available to either Party at law or in equity.

34.5The provisions of this Clause 34 shall survive the termination of this Production Right.

34.6.The arbitration shall commence by a written notice ("the Arbitration Notice") to that effect delivered by the Party demanding the arbitration ("the Plaintiff') to the other ("the Respondent"). No Arbitration Notice shall be delivered after the lapse of 90 (ninety) days after the terminations of any negotiations set out in Clause 34.1 above. Any Dispute, if not resolved and not thereafter made subject to arbitration, may at any time be raised again, commencing with the procedure set out in Clause 34.1 above. In the Arbitration Notice, the Plaintiff shall set out;

34.6.1.a short summary of the nature of the Dispute;

34.6.2.the relief claimed by the Plaintiff;

34.6.3.the identity and curriculum vitae of an independent arbitrator proposed by the Plaintiff.

34.7.Within 21 (twenty one) days after delivery of the Arbitration Notice, the Respondent shall deliver a written reply to the Plaintiff setting out the identity and particulars of an independent arbitrator proposed by it. If the Respondent shall not deliver such reply, the Plaintiff shall nevertheless be entitled to proceed with the arbitration as set out herein.

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34.8.There shall be 3 (three) arbitrators, appointed as set out herein, and all decisions, rulings and/or awards of the arbitrators shall be by majority decision amongst them. No person who has any pecuniary or any other interest, directly or indirectly, in either of the Parties, shall serve as arbitrator.

34.9.The third arbitrator (or the second and third arbitrators if the Respondent shall not have delivered a reply as provided for in Clause 34.7), shall be appointed by the Secretariat of the ICC International Court of Arbitration (or its successor in title).

34.10.The arbitrators shall determine the practical measures necessary to conduct the arbitration and shall issue directives in that regard to the Parties and/or their representatives, from time to time, as may be required. The arbitrators shall be entitled to award costs against any party on any scale as otherwise provided for in the Rules of the High Court of the Republic of South Africa and shall, in the case of any disagreement between the Parties about the amount of such costs, be entitled to retain the services of an independent legal costs consultant to determine the amount of any such costs. The costs, fees and charges of the arbitrators shall be borne by the Parties in equal proportion and shall be payable by them on presentation of invoices in that regard. Any order as to costs which may be made by the arbitrators shall operate as between the Parties only and shall not affect their obligation to the arbitrators as set out herein.

34.11.Save as set out above and as may be otherwise agreed between the parties, the proceedings shall be conducted subject to and in accordance with the rules of the Arbitration Foundation of Southern Africa ("AFSA").

35.**Costs and Value Added Tax**

35.1.All taxes, levies, stamp duties, transfer costs, transfer duties and registration costs arising directly or indirectly out of or related to the Holder's Participating Interest shall be for the account of and promptly paid by the Holder.

35.2.All amounts due and payable by the Holder in terms of this Production Right, the Act and the Regulations are exclusive of statutory value added tax. Where applicable, statutory value added tax at the prevailing rate in accordance with the Value Added Tax Act 1991 (Act No. 89 of 1991) shall be added to all relevant amounts due and payable by the Holder.

36.**Entire Agreement**

Subject to the Act and the Regulations, this Production Right and the Annexures attached hereto (those Annexures being and forming an integral part of this Production Right) and the Fiscal Stability Agreement contain the entire and sole agreement between the Parties and supersedes all prior negotiations, representations, understandings, agreements and communications of whatsoever nature between the Parties with respect to such Production Area, whether oral or written, express or implied.

37.**Severability**

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Any provision within this Production Right which is not enforceable or which contravenes Applicable Laws shall be severed from this Production Right and be of no force or effect without prejudice to the other provisions of this Production Right which shall remain in force and effect.

38.**Domicilia Citandi et Executandi**

38.1.All notices, requests and reports provided for herein shall be in writing and shall be delivered either by hand to an authorised representative of the receiving Party, or sent by courier or telefax to the addresses below in the State; provided that if given by telefax a copy thereof shall then be sent immediately by prepaid registered mail:

**If to the Grantor:**

<u>Minister of Mineral Resources</u>

---

| | |
|:---|:---|
| Physical address: | Postal address: |
| Trevenna Campus | Private Bag X59 |
| Building 2C | ARCADIA |
| Cnr Meintje & Schoeman Street | 0007 |
| SUNNYSIDE |  |
| Tel number: +27 (0)12 444 3000 | Fax number: +27 (0)12 444 3145 |

---

And copy to the Agency:

<u>South African Agency for the Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited</u>

<u>Attention:</u> *<u>Chief Executive Officer</u>*

---

| | |
|:---|:---|
| Physical address: | Postal address: |
| Tygerspoort Building | PC Box 5111 |
| 7 Mispel Street | TYGERVALLEY |
| BELLVILLE 7530 | 7536 |
| Western Cape |  |
| Tel number: +27 (0)21 938 3500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fax number: +27 (0)21 938 3520 |

---

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**If to the Holder:**

---

| | |
|:---|:---|
| Physical address: | Postal address: |
| &nbsp;&nbsp;1<sup>st</sup> Floor, Block C, 65 Central Street | &nbsp;&nbsp;PostNet SOUTH 126 |
| &nbsp;&nbsp;Houghton | &nbsp;&nbsp;Box 92418 |
| &nbsp;&nbsp;2198 | &nbsp;&nbsp;Norwood |
|  | &nbsp;&nbsp;2117 |

---

Tel number: +27 11 483 0677 Fax number: +27 11 483 2686

38.2.Each Party and the Agency may change its address to a different address in the State on at least 15 (fifteen) days' prior notice.

38.3.All notices, requests and reports sent by prepaid registered post shall be deemed received by addressee within 5 (five) days of dispatch and all notices, requests and reports sent by telefax during ordinary business hours shall be deemed to have been received within 12 (twelve) hours of transmission or if transmitted outside ordinary business hours, then on the next Business Day. Those delivered by hand or sent by courier shall be deemed to have been received at the time of actual delivery.

38.4.Each Party also chooses the physical address specified above as its *domicilium citandi et executandi* for all purposes arising under this Production Right, including service of process.

38.5.The Holder shall within 7 (seven) days of the Effective Date give notice to the Grantor of the authorised representative with whom the Grantor may deal concerning this Production Right. Such representative shall continue to represent the Holder until the Holder notifies the Grantor of a change of representative.

38.6.The Chief Executive Officer is hereby appointed as the authorised representative of the Grantor for all matters relating to this Production Right.

39.**Registration**

The Holder must lodge this Production Right for registration at the Mining and Petroleum Titles Registration Office within 30 (thirty) days from the Effective Date and, in the event of each renewal of this Production Right, within 30 (thirty) days of such renewal.

40.**Successors and Assigns**

This Production Right shall inure to the benefit of and be binding upon the permitted successors and assigns of the Parties.

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Thus done and signed at Bellville on the 20thday of September in the year 2012 in the presence of the undersigned witnesses:

---

| | |
|:---|:---|
| **AS WITNESS:** |  |
| ![img172762844_1.jpg](img172762844_1.jpg) |  |
|  | ![img172762844_2.jpg](img172762844_2.jpg) |
| **AS WITNESS:** |  |
| ![img172762844_3.jpg](img172762844_3.jpg) |  |
|  | ![img172762844_4.jpg](img172762844_4.jpg) |
|  | For and on behalf of the **<u>Holder</u>** |
|  | **Quod Attestor** |
|  | ![img172762844_5.jpg](img172762844_5.jpg) |

---

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**Annexure A**

**Diagram of the Production Area**

Page 1 of 5

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**Annexure B**

Production Work Programme

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**Annexure C**

**Environmental Management Programme**

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**Annexure D**

**Social and Labour Plan**

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**Annexure E**

**Schedule of Contributions to the Upstream Training Trust**

Page 5 of 5

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## Exhibit 10.21

**Exhibit 10.21**

**12/4/07PR**

![img173686365_0.jpg](img173686365_0.jpg)

**AMENDMENT/VARIATION OF A PRODUCTION RIGHT**

**Granted in terms of section 102 of the Mineral and Petroleum Resources Act, 2002**

**(Act No. 28 of 2002)**

------

**12/4/07PR**

**Protocol No:** 9/2021

**<u>NOTARIAL DEED OF AMENDMENT/VARIATION OF A PRODUCTION RIGHT</u>**

**<u>GRANTED IN TERMS OF SECTION 102 OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT,</u> <u>28 OF 2002</u>**

**<u>BE IT HEREBY MADE KNOWN:</u>**

That on this **17**<sup>th</sup> day of **September** in the year **2021,** before me, **Tetyana Lobachova,** Notary Public, duly sworn and admitted, residing and practising in the **Republic of South Africa** in the **Western Cape** Province of South Africa, and in the presence of the undersigned witnesses, personally came and appeared:

**PHINDILE MASANGANE,**

the Chief Executive Officer and in her capacity and the duly authorised representative of the South African Agency for Promotion of Petroleum Exploration and Exploitation SOC Limited (hereinafter referred to as the **"Agency"**)**;** (Registration number: 1999/015715/30), she being duly authorised thereto under and by virtue of a Power of Attorney granted by the Director-General of the Department of Mineral Resources and Energy at **Pretoria** on the **10th** day of **June** in the year **2021**, in terms of the powers delegated by the Minister of Mineral Resources and Energy (**"**the **Grantor"**) in terms of section 103(1) of the Mineral and Petroleum Resources Development Act 28 of 2002 (**"the Act"**), which Power of Attorney has this day been exhibited to me, the Notary, and now remains filed of record in my Protocol; and

**Will Fritz**

in his capacity as the company's Legal Counsel, and as such, the duly authorised representative of **Tetra4 Proprietary Limited,** Identification/Registration number:

**2005/012157/07**

(hereinafter together with his/her/its successors in title and assigns referred to as **"the Holder"**)**,** the said representative being duly authorised thereto under and by virtue of a Power of Attorney/resolution of directors of the Holder, signed or passed at Johannesburg on the **25**<sup>th</sup> day of **August** in the year **2021,** which power of attorney or certified copy of the resolution has this day been exhibited to me, the notary,

------

**12/4/07PR**

and remain filed on record in my protocol with the minutes hereof.

**THE GRANTOR AND THE HOLDER DECLARED THAT:**

---

| | |
|:---|:---|
| **WHEREAS** | The State is the custodian of the nation's mineral and petroleum resources in terms of section 3 of the Act; |
| **AND WHEREAS** | in terms of clause 30 of the Production Right, the terms of the right may not be amended/varied without the written consent of the Grantor in terms of section 102 of the Act; |
| **AND WHEREAS** | the Holder has applied for the substitution of the Social and Labour Plan which forms part of the Production Right; |
| **AND WHEREAS** | the Grantor has granted consent for the amendment/variation to the Holder in terms of section 102 of the Act. |

---

**NOW THEREFORE THESE PRESENTS WITNESS:**

The Grantor hereby grants the variation/amendment of the Production Right executed on the **20**<sup>th</sup> day of **September** in the year **2012** under Protocol Number **263/2012,** registered in the Mineral and Petroleum Titles Registration Office under MPT Number **15/2013,** in respect of:

**Certain:** farms/areas set out in Annexure A to the Production Right

**Situated:** in the magisterial districts of Ventersburg, Welkom, Odendaalsrus, in the Province of Free State

**Measuring:** 187427, 2189 (one hundred and eighty-seven thousand four hundred and twenty-seven comma two one eight nine) hectares in extent

**Is hereby amended/varied by the:**

**(1)**Substitution of the Social and Labour Plan which is attached as annexure D to the Production Right with the Social and Labour Plan attached hereto as Annexure **"A",** which substituted Social and Labour Plan will be reckoned for a further period of five years from the date of notarial execution of this notarial deed of amendment/variation.

------

**12/4/07PR**

Thus done and signed at Cape Town on the **17**<sup>th</sup> day of **September** in the year **2021** in the presence of the undersigned witnesses.

![img173686365_1.jpg](img173686365_1.jpg)

![img173686365_2.jpg](img173686365_2.jpg)

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## Exhibit 10.22

**Exhibit 10.22**

**12/4/07PR**

![img174609886_0.jpg](img174609886_0.jpg)

**AMENDMENT/VARIATION OF A PRODUCTION RIGHT**

**Granted in terms of section 102 of the Mineral and Petroleum Resources Act, 2002**

**(Act No. 28 of 2002)**

------

**12/4/07PR**

**Protocol No: <u>75</u>** /2024

**<u>NOTARIAL DEED OF AMENDMENT/VARIATION OF A PRODUCTION RIGHT</u>**

**<u>GRANTED IN TERMS OF SECTION 102 OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 28 OF 2002</u>**

**<u>BE IT HEREBY MADE KNOWN:</u>**

That on this **15**<sup>th</sup> day of **March** in the year **2024,** before me, **ROBYN AMY GESWINDT,** Notary Public, duly sworn and admitted, residing and practising in the **Republic of South Africa** in the **Gauteng** Province of South Africa, and in the presence of the undersigned witnesses, personally came and appeared:

**DR TSHEPO MOKOKA**

the acting Chief Executive Officer and in his capacity and the duly authorised representative of the South African Agency for Promotion of Petroleum Exploration and Exploitation SOC Limited (hereinafter referred to as the **"Agency"**); (Registration number: 1999/015715/30), he being duly authorised thereto under and by virtue of a Power of Attorney granted by the Director-General of the Department of Mineral Resources and Energy at **Pretoria** on the **26**<sup>th</sup> day of **January** in the year **2024** in terms of the powers delegated by the Minister of Mineral Resources and Energy **("Grantor")** in terms of section 103(1) of the Mineral and Petroleum Resources Development Act 28 of 2002 **("the Act"),** which Power of Attorney has this day been exhibited to me, the Notary, and now remains filed of record in my Protocol; and

**WILL FRITZ**

in his capacity as the company's Legal Counsel, and as such, the duly authorised representative of **Tetra4 Proprietary Limited,** Identification/Registration number:

**2005/012157/07**

(hereinafter together with his/her/its successors in title and assigns referred to as **"the Holder"**), the said representative being duly authorised thereto under and by virtue of a resolution of directors of the Holder, signed or passed at Johannesburg on the **21**<sup>st</sup> day of **February** in the year **2024** which certified copy of the resolution has this day been exhibited to me, the notary, and remain filed on record in my protocol with the minutes hereof.

------

**12/4/07PR**

**THE GRANTOR AND THE HOLDER DECLARED THAT:**

---

| | |
|:---|:---|
| **WHEREAS** | &nbsp;&nbsp;The State is the custodian of the nation's mineral and petroleum resources in terms of section 3 of the Act; |
| **AND WHEREAS** | &nbsp;&nbsp;in terms of clause 30 of the Production Right, the terms of the right may not be amended/varied without the written consent of the Grantor in terms of section 102 of the Act; |
| **AND WHEREAS** | &nbsp;&nbsp;clause 5.1.3 of the Production Right confers upon the Holder the exclusive right to "*own, use, produce, remove, take in kind, lift, transport (via pipelines, tanks, ships or otherwise), export and dispose of any petroleum, including by-products found in the Production Area whether within or outside of the State at prices obtained by the Holder*"*;* |
| **AND WHERES** | &nbsp;&nbsp;neither the Act nor the Production Right define or specify what "*by-products*" of petroleum are; |
| **AND WHERES** | &nbsp;&nbsp;the Holder commissioned a technical study to provide a scientifically proven natural process that led to the formation of "*Helium*"*.* This study supports the: (i) accepted argument on the nature and processes that lead to the occurrence of "*Helium*"*;*<br> (ii) fact that "*Helium*" on earth is mainly found in association with natural gas; and (iii) notion of "*Helium*" being classified as a by-product of petroleum and natural gas since it can only be separated from natural gas through the application of cryogenic technology at the surface of the earth and is produced as secondary product to natural gas for which the Production Right has been granted; |
| **AND WHERES** | &nbsp;&nbsp;the Holder has applied to amend the Production right by including "*Helium*" as a by-product of petroleum/natural gas under clause 5.1.3 of the Production Right; and |
| **AND WHERES** | &nbsp;&nbsp;the Grantor has granted consent for the amendment/variation to the Holder in terms of section 102 of the Act. A copy of the Consent letter is attached hereto as Annexure A. |

---

**NOW THEREFORE THESE PRESENTS WITNESS:**

The Grantor hereby grants the variation/amendment of the Production Right executed on the **20**<sup>th</sup> day of **September** in the year **2012** under Protocol Number **263/2012,** registered in the Mineral and Petroleum Titles Registration Office under MPT Number **15/2013,** in respect of:

**Certain:** farms/areas set out in Annexure A to the Production Right

------

**12/4/07PR**

**Situated:** in the magisterial districts of Ventersburg, Welkom, Odendaalsrus, in the Province of Free State

**Measuring:** 187427, 2189 (one hundred and eighty-seven thousand four hundred and twenty-seven comma two one eight nine) hectares in extent

## Is hereby amended/varied by the:
**(1)**Inclusion of "*Helium*" as a by-product of petroleum/natural gas under clause 5.1.3 of the Production Right, so as to amend clause 5.1.3 of the Production Right to read as follows:

"*Without derogating from the Holder's rights and obligations in terms of this Production Right and Sections* 5 *and 86 of the Act, the Holder shall have the: exclusive right to own, use, produce, remove, take in kind, lift, transport (via pipelines, tank ships or otherwise), export and dispose of any Petroleum, including by-products (including but not limited to Helium), found in the Production Area, whether within or outside of the State, at prices obtained by the Holder*"*.*

Thus done and signed at **Sandton** on the **15**<sup>th</sup> day of **March** in the year **2024** in the presence of the undersigned witnesses.

# AS WITNESS:

---

| | |
|:---|:---|
| ![img174609886_1.jpg](img174609886_1.jpg) | ![img174609886_2.jpg](img174609886_2.jpg) |
|  | **For and on behalf of the <u>Grantor</u>** |

---

---

| | |
|:---|:---|
|  | ![img174609886_3.jpg](img174609886_3.jpg) |
|  | ![img174609886_3.jpg](img174609886_3.jpg) |
| AS WITNESS: | ![img174609886_3.jpg](img174609886_3.jpg) |
| ![img174609886_4.jpg](img174609886_4.jpg) | ![img174609886_3.jpg](img174609886_3.jpg) |

---

------

**12/4/07PR**

![img174609886_5.jpg](img174609886_5.jpg)

------

## Exhibit 10.23

**Exhibit 10.23**

**D0005**

*Exploration Right- Petroleum Agency SA-2007*

![img175533407_0.jpg](img175533407_0.jpg)

**<u>EXPLORATION righ</u>t**

**<u>(Ref no 30/5/2/3/2/32 ER)</u>**

**Granted in terms of section 80 of the Mineral and Petroleum Resources Development Act, 2002<br>(Act No. 28 of 2002)**

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*Exploration Right Text- Petroleum Agency SA-2007*

30/5/2/3/2/32ER

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

---

| | | |
|:---|:---|:---|
| **Clause** | **Title** | **Page** |
|  | &nbsp;&nbsp;**Preamble** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** | &nbsp;&nbsp;**Definitions and Interpretations** | &nbsp;&nbsp;**06-10** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** | &nbsp;&nbsp;**Granting of the Right** | &nbsp;&nbsp;**10** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** | &nbsp;&nbsp;**Exploration Area** | &nbsp;&nbsp;**11** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** | &nbsp;&nbsp;**Exclusive Right to Apply for a Production Right in respect of Discoveries** | &nbsp;&nbsp;**11** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** | &nbsp;&nbsp;**Rights and Obligations of the Holder** | &nbsp;&nbsp;**11** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** | &nbsp;&nbsp;**Commencement, Duration and Renewal** | &nbsp;&nbsp;**12** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** | &nbsp;&nbsp;**Exploration Fees** | &nbsp;&nbsp;**12** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** | &nbsp;&nbsp;**Technical Advisory Committee** | &nbsp;&nbsp;**12** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** | &nbsp;&nbsp;**Cancellation or Suspension of the Exploration Right** | &nbsp;&nbsp;**14** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** | &nbsp;&nbsp;**Relinquishment and Voluntary Abandonment of the Exploration Area** | &nbsp;&nbsp;**14** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** | &nbsp;&nbsp;**Rights to Minerals and Petroleum** | &nbsp;&nbsp;**15** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** | &nbsp;&nbsp;**Examination of the Exploration Area** | &nbsp;&nbsp;**15** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** | &nbsp;&nbsp;**Records and Samples** | &nbsp;&nbsp;**16** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** | &nbsp;&nbsp;**Reports** | &nbsp;&nbsp;**16** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** | &nbsp;&nbsp;**Annual Exploration Work Programme and Budget** | &nbsp;&nbsp;**17** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** | &nbsp;&nbsp;**Discoveries and Testing** | &nbsp;&nbsp;**18** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** | &nbsp;&nbsp;**Manner of Conducting Exploration Operations** | &nbsp;&nbsp;**21** |

---

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** | &nbsp;&nbsp;**Existing Data** | &nbsp;&nbsp;**22** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** | &nbsp;&nbsp;**Environmental Protection and Financial Provision** | &nbsp;&nbsp;**22** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.** | &nbsp;&nbsp;**Social and Labour Matters** | &nbsp;&nbsp;**23** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.** | &nbsp;&nbsp;**Tax** | &nbsp;&nbsp;**23** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.** | &nbsp;&nbsp;**Financial Records and Audits** | &nbsp;&nbsp;**24** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.** | &nbsp;&nbsp;**Customs Duties** | &nbsp;&nbsp;**24** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.** | &nbsp;&nbsp;**Exchange Control** | &nbsp;&nbsp;**24** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.** | &nbsp;&nbsp;**Indemnity and Insurance** | &nbsp;&nbsp;**24** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.** | &nbsp;&nbsp;**Health and Safety** | &nbsp;&nbsp;**25** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.** | &nbsp;&nbsp;**Confidentiality and Public Announcements** | &nbsp;&nbsp;**25** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.** | &nbsp;&nbsp;**Cession and Sub-contracting** | &nbsp;&nbsp;**27** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.** | &nbsp;&nbsp;**Law and Interpretation** | &nbsp;&nbsp;**27** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.** | &nbsp;&nbsp;**Obligations of the Grantor** | &nbsp;&nbsp;**28** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.** | &nbsp;&nbsp;**State Option** | &nbsp;&nbsp;**28** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.** | &nbsp;&nbsp;**Vis Major** | &nbsp;&nbsp;**28** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.** | &nbsp;&nbsp;**Amendments** | &nbsp;&nbsp;**29** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**34.** | &nbsp;&nbsp;**Unitisation** | &nbsp;&nbsp;**29** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**35.** | &nbsp;&nbsp;**Special Provisions Relating to Gas Discovery** | &nbsp;&nbsp;**30** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.** | &nbsp;&nbsp;**Waiver or Lenience** | &nbsp;&nbsp;**31** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**37.** | &nbsp;&nbsp;**Dispute Resolution** | &nbsp;&nbsp;**31** |

---

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**38.** | &nbsp;&nbsp;**Costs and Value Added Tax** | &nbsp;&nbsp;**31** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**39.** | &nbsp;&nbsp;**Entire agreement** | &nbsp;&nbsp;**32** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**40.** | &nbsp;&nbsp;**Severability** | &nbsp;&nbsp;**32** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.** | &nbsp;&nbsp;***Domicilia Citandi et Executandi*** | &nbsp;&nbsp;**32** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**42.** | &nbsp;&nbsp;**Registration** | &nbsp;&nbsp;**34** |

---

**ANNEXURE INDEX**

---

| | | |
|:---|:---|:---|
| **Annexure** | **Annexure Tite** | **Pages** |
| &nbsp;&nbsp;**A** | &nbsp;&nbsp;**Sketch Plan for the Exploration Area** | &nbsp;&nbsp;**40** |
| &nbsp;&nbsp;**B** | &nbsp;&nbsp;**Exploration Work Programme [Inclusive of the Minimum Work Obligations** | &nbsp;&nbsp;**41** |
| &nbsp;&nbsp;**C** | &nbsp;&nbsp;**Relinquishment Schedule** | &nbsp;&nbsp;**42** |
| &nbsp;&nbsp;**D** | &nbsp;&nbsp;**Schedule of Contributions to the Upstream Training Trust** | &nbsp;&nbsp;**43** |
| &nbsp;&nbsp;**E** | &nbsp;&nbsp;**A List of Available Data Made Available to the Holder** | &nbsp;&nbsp;**44** |
| &nbsp;&nbsp;**F** | &nbsp;&nbsp;**Environmental Management Programme** | &nbsp;&nbsp;**45** |

---

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*Exploration Right Text- Petroleum Agency SA-2007*

30/5/2/3/2/32ER

---

| | | | |
|:---|:---|:---|:---|
| **PROTOCOL NO** | 1367 | / | 2007 |

---

**<u>EXPLORATION RIGHT</u>**

**<u>GRANTED IN TERMS OF SECTION 80 OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, NO. 28 OF 2002 READ TOGETHER WITH REGULATION 29 PUBLISHED IN THE GOVERNMENT GAZETTE NO. 26275 ON 23 APRIL 2004, PROMULGATED IN TERMS OF SECTION 107 OF THE ACT</u>**

**LET IT HEREBY BE KNOWN:**

That on this **8th** day of **May** in the year **2007** before me **Hendrik Malherbe Oosthuizen** a Notary Public, duly sworn and admitted, residing and practicing at **Cape Town** in the **Western Cape** Province, Republic of South Africa, and in the presence of the subscribing competent witnesses personally came and appeared:

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*Exploration Right Text- Petroleum Agency SA-2007*

30/5/2/3/2/32ER

**Mthozami Richardson Xiphu**

the Chief Executive of the South African Agency for Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited, (hereinafter referred to as the Agency), Registration No. 1999/05715/07, he or she being duly authorised thereto by virtue of the Power of Attorney granted by the Director General of the Department of Minerals and Energy at Pretoria on the **7**<sup>th</sup> of **March 2007** which Power of Attorney has this day been exhibited to me, the Notary, and now a certified copy o which remains filed of record in my Protocol, and herein representing:

***Buyelwa Patience Sonjica***

the Minister of Minerals and Energy (hereinafter together with his or her successors in title referred to as the "Minister"), he or she being duly authorised by virtue of the provisions of Sections 3(2)(a) and 103 of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) and as such in his or her capacity representing:

**THE REPUBLIC OF SOUTH AFRICA**

(hereinafter referred to as **"the Grantor")** of the one part, and

**Highland Exploration and Production (Pty) Ltd** 

**(Registration number: 2005/012157/07)**

herein represented by <u>JOHN ZET&MAN STEPHEN P MITCHELL</u> or she being duly authorised thereto under and by virtue of a Resolution of Board of Directors of the Holder passed at <u>JOHANNESBURG</u> on the <u>7</u><sup>th</sup> day of <u>MAY 2007</u> a certified copy of which Resolution has this day been exhibited to me, the Notary, and now remains filed of record in my Protocol with the Minutes thereof.

(hereinafter together with its successors in title and assigns referred to as the **"Holder"),**

all jointly hereinafter referred to as **"the Parties".**

**AND THE APPEARERS DECLARED THAT:**

---

| | |
|:---|:---|
| WHEREAS | The State, as Grantor is the custodian of the mineral and petroleum resources of the Republic of South Africa; |
| AND WHEREAS | The Holder has applied for an Exploration Right in respect of the Exploration Area); |
| AND WHEREAS | The Grantor has decided to grant to the Holder this Exploration Right on the terms and conditions set out below. |

---

**NOW, THEREFORE, THE GRANTOR HEREBY GRANTS TO THE HOLDER, AND THE HOLDER HEREBY ACCEPTS, THIS EXPLORATION RIGHT SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:**

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*Exploration Right Text- Petroleum Agency SA-2007*

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**1.** **Definitions and Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.Unless the context indicates otherwise, any expression to which a meaning has been assigned in the Act shall bear, when used in this Exploration Right, the same meaning and apply *<u>mutatis mutandis</u>* hereto. In this Exploration Right the following words and expressions shall have the corresponding meanings assigned to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.** **'Act'** shall mean the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.3.** **'Affiliate'** shall mean another person which, directly or indirectly, owns, or is owned by, or is owned by a person which owns, that first-mentioned person; 'owns' and 'owned' in this definition means the beneficial ownership of 50 % (fifty percent) or more of the voting shares or other securities of such person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.4.** **'Agency'** shall mean the designated agency as defined in the Act; which currently is the South African Agency for Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited, also known as Petroleum Agency SA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.5.** **'Annual Exploration Work Programme'** shall mean the annual work programme for Exploration Operations, inclusive of the estimated budget of costs and expenses of carrying out the same, that the Holder prepares and is approved by the Grantor in accordance with Clause 15;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.6.** **'Applicable Laws'** shall mean the laws of the Republic of South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.7.** **'Appraisal Operations'** shall mean any operation, study, activity, or matter, whether taking place within or outside of the Republic of South Africa, to appraise and evaluate the extent and volume of petroleum within a Discovery made by the Holder in the Exploration Area and to determine whether such Discovery could be a Commercial Discovery, including, if and to the extent applicable, all production of petroleum necessary in connection with completion and testing of any appraisal well (including, if necessary, any long-term production test) and all plugging and abandonment of any appraisal well. The terms 'to Appraise' or 'Appraisal' shall be construed accordingly;

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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;**1.1.8.** **'Appraisal Programme'** shall mean the appraisal programme for Appraisal Operations, inclusive of the estimated budget of costs and expenses of carrying out the same, that the Holder prepares and is approved by the Grantor in accordance with Clause 16.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.9.** **'Commercial Discovery'** shall mean a Discovery of petroleum within the Exploration Area in such quantities as will permit the economic development thereof, on its own or in combination with other existing Discoveries or as part of a unitised development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.10.** **'Days'** shall have the meaning ascribed to it in the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.11.** **'Development Plan'** shall mean the development plan for the Exploration Area, as amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.12.** **'Development Plan Supplement'** shall mean a plan for the further development and production of any additional Commercial Discoveries within the Exploration Area, as amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.13.** **'Discovery'** shall mean the discovery by the Holder of a geological feature within the Exploration Area that is determined by the Holder in accordance with Good International Petroleum Industry Practices to be capable of producing petroleum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.14.** **'Effective Date'** shall mean the date on which the Environmental Management Programme as contemplated by Section 39 of the Act is approved by the Minister. In the case of an old order right, the effective date shall be the date on which the old order right is converted into a new order Exploration Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.15.** **'Environmental Management Programme'** shall have the meaning ascribed to it in the Act, being the environmental management programme for the Exploration Area, as amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.16.** **'Existing Data'** shall mean all technical information and data provided to the Holder by the Grantor, receipt of which has been acknowledged by the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.17.** **'Exploration Area'** shall mean the area within the Republic of South Africa described in Clause 3, excluding those portions relinquished or abandoned from time to time in accordance herewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.18.** **'Exploration Operations'** shall have the meaning ascribed to it in the Act which for purposes of this Exploration Right shall include Appraisal Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.19.** **'Exploration Work Programme'** shall mean the work programme attached hereto as **Annexure B,** the Annual Exploration Work Programme and any Appraisal Programme, as it may be amended from time to time, that the Holder prepares and is approved by the Grantor;

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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;**1.1.20.** **'First Renewal Period'** shall mean the first renewal of this Exploration Right granted in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.21.** **'Gas'** shall mean any hydrocarbon which at a temperature of 21 (twenty one) degrees Celsius and a pressure of 1 (one) atmosphere, is in a gaseous phase existing in a natural condition in the earth's crust, regardless of the nature of the host rock, and includes any gas which has in any manner been returned to such natural condition, and includes condensate of such gas, but does not include hydrocarbon gas obtained by destructive distillation or gas arising from a marsh or other surface deposit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.22.** **'Good International Petroleum Industry Practices'** shall mean those good, sound and generally accepted prevailing standards, practices, considerations, and procedures that are applied by reasonable and prudent companies and operators in the international petroleum industry under conditions and circumstances similar to those experienced in the Exploration Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.23.** **'Government'** shall mean the government of the Republic of South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.24.** **'Grantor'** shall have the meaning attributed thereto in the description of the Parties above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.25.** **'Grantor Group'** shall mean collectively, the Department of Minerals and Energy (including the Minister), and the Agency (including the Chief Executive Officer), the directors, officers, employees, agents, representatives and invitees of each of the aforementioned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.26.** **'Holder'** shall have the meaning ascribed to it in the preamble and shall include each Holder Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.27.** **'Holder Group'** shall mean, collectively, the Holder, each Holder Party, contractors (of any tier) of the Holder used in connection with Exploration Operations hereunder and directors, officers, employees, agents, representatives, and invitees of each of the aforementioned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.28.** **'Holder Party'** shall mean each Holder and each successor in title;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.29.** **'Income Tax Act'** shall mean the Income Tax Act, 1962 (Act No. 58 of 1962);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.30.** **'Initial Period'** shall mean a period of 36 (thirty six) months commencing from the Effective 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;**1.1.31.** **'Minimum Work Obligation'** shall mean the minimum work to be conducted by the Grantee in respect of each Sub-period (as defined below) and as specified in the attached **Annexure B;**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.32.** **'Operator'** shall mean the Holder Party nominated to conduct the operations in terms of a joint agreement between the Holder Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.33.** **'Participating Interest'** shall mean a Holder Party's undivided share (expressed as a percentage) in all of the rights and obligations of the Holder derived from this Exploration Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.34.** **'Quarter'** means a three-month period of a year beginning on 1<sup>st</sup> January, 1<sup>st</sup> April, 1<sup>st</sup>July or 1<sup>st</sup> October of any year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.35.** **'Regulations'** shall mean the Regulations promulgated in terms of Section 107 of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.36.** **'Renewal Period'** shall mean that period of time for which this Exploration Right is renewed in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.37.** **'Required Data'** shall mean, collectively, all the Acquired Data in their final form generated or recorded and preserved by the Holder in the course of conducting Exploration Operations pursuant to (a) the requirements of the Applicable Laws or (b) a reasonable request by the Grantor or (c) the Agency's published reporting standards manual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.38.** **'Royalty Legislation'** shall mean the legislation to be promulgated by the State governing the payment of royalties on minerals and petroleum to the State;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.39.** **'Samples'** shall mean physical samples of rock, fluid and other materials acquired by the Holder in the course of conducting Exploration Operations for the purpose of preserving and analysing such samples;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.40.** **'Second Renewal Period'** shall mean the second renewal of this Exploration Right granted in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.41.** **'State'** shall mean the Republic of South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.42.** **'Sub-period'** shall mean the First Renewal Period and/or the Second Renewal Period and/or the Third Renewal Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.43.** **'Third Renewal Period'** shall mean the third renewal of this Exploration Right granted in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.44.** **'Upstream Training Trust'** shall mean the independent Upstream Training Trust registered under registration number IT 1289/98; 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;**1.1.45.** **'Year'** shall mean the period of 12 (twelve) calendar months from the Effective Date and each subsequent 12 (twelve) month period thereafter. The terms 'Yearly,' 'Annual,' or 'Annually' shall be construed accordingly.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.** **Interpretation in this Exploration Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1.Where the context so requires, in this Exploration Right the words:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2.1.importing the masculine gender shall include the feminine and vice versa,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2.2.'hereunder,' 'herein,' 'hereof' and words of similar import are references to this Exploration Right as a whole and not to any particular provision of this Exploration Right, unless expressly provided to the contrary, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2.3.'include' and 'including' shall mean to be inclusive without limiting the generality of the description preceding such term and are used in an illustrative sense and not a limiting sense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2.Headings and sub-headings to clauses and sub-clauses are inserted for convenience only and are not to be taken into consideration in the interpretation or construction of this Exploration Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3.References to any Clause or Annexure are to a Clause or Annexure (as the case may be) unless expressly stated to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4.This Exploration Right has been written in English and shall be interpreted and construed in accordance with the English language. All correspondence, communication and documents exchanged between the Grantor and the Holder in connection herewith, whether oral or written, shall be in the English language.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5.Reference to any statute, statutory provision or regulation shall include a reference to that statute, statutory provision or regulation as amended, extended or re-enacted 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;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6.In the event of any conflict or inconsistency between the provisions of this Exploration Right and the Act, the provisions of the Act shall govern. In the event of any conflict or inconsistency between the provisions of this Exploration Right and any Regulations, the provisions of the Regulations shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7.In the event of any conflict between the provisions of the main body of this Exploration Right and its Annexures the provisions of the main body of this Exploration Right shall govern.

**2.** **Granting of the Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.Subject to the Act, the Regulations and the terms and conditions set forth herein, the Grantor hereby grants to the Holder and the Holder hereby accepts this Exploration Right.

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**3.** **Exploration Area**

The Exploration Area shall consist of approximately **45005,64 ha** square kilometres (or hectares), located in the **Kroonstad, Henneman, Welkom and Virginia Magisterial Districts,** bounded by connecting lines (unless the context indicates otherwise) joining the points defined by the co-ordinates on the Sketch Plan attached hereto and marked **Annexure A.**

**4.** **Exclusive Right to Apply for a Production Right in Respect of Discoveries**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.Subject to the provisions of Section 83 of the Act read together with Regulation 34, the Holder has the exclusive right to apply for and be granted a production right in respect of each Commercial Discovery within the Exploration Area: Provided that any such application for a Production Right has been lodged prior to the expiry date of this Exploration Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.Any area falling within the Exploration Area in respect of which a production right has been granted to the Holder shall, as from the date of the grant of such production right, be severed from and no longer form part of the Exploration Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.In the case of the severance referred to in 4.2 above, the Holder shall, simultaneous with the granting and or issuing of the new Production Right, submit the necessary amended sketch plan reflecting the new size and extent of the Exploration Area, and the necessary endorsements shall be reflected on the Grantor's records.

**5.** **Rights and Obligations of the Holder**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.Without derogating from the Holder's rights and obligations in terms of this Exploration Right and Section 5 of the Act, the Holder shall have the right to own and dispose of any and all facilities, materials, equipment, supplies and consumables purchased and/or leased by the Holder for the conduct of Exploration Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.Without derogating from the Holder's other obligations in terms of this Exploration Right, the Holder shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1.diligently conduct Exploration Operations in accordance with the Exploration Work Programme;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2.comply with the Environmental Management Programme; 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;5.2.3.pay all amounts due and payable to the Grantor in terms of the Act, the Regulations, this Exploration Right and the Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.Although the Grantor undertakes to make a reasonable attempt to resolve disputes, the Holder acknowledges that the Grantor cannot guarantee that the Holder will at all times be in a position to exercise within the Exploration Area the rights granted in terms of this Exploration Right, and that in

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certain instances conflicts may arise with other rights holders and or interested and affected parties within or around the Exploration Area. The Grantor shall not be liable for any claims, liabilities, costs and expenses incurred by the Holder should the Holder not be able to exercise any of the rights granted in terms of this Exploration Right due to a conflict with other rights holders and or interested and affected parties within or around the Exploration Area.

**6.** **Commencement, Duration and Renewal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.This Exploration Right will commence on the Effective Date and, unless abandoned, cancelled, relinquished, suspended, terminated, extended or renewed in accordance herewith, will continue to be in force and effect for the Initial Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.In line with section 82 (2) of the Act the Holder shall, within 90 (ninety) days from the, Effective Date or such extended period as the Minister may authorise, commence Exploration Operations in accordance with the Exploration Work Programme.

**7.** **Exploration Fees**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.The Holder shall pay in terms Section 82(2)(e) of the Act read together with Regulation 76 the prescribed exploration fees to the Agency as from the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.All amounts due and payable by the Holder in terms of this Exploration Right shall be paid into the Agency's nominated Bank account, namely **ABSA Bank, Account number: 4051030832, Parow, Branch code: 502110** or such other bank account as the Grantor may from time to time notify the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.Should the Holder fail to pay any amount due and payable hereunder on the due date, the Holder shall be in *mora debitoris* and shall be liable for and pay interest on such late payment at the rate prescribed in terms of Section 80 of the Public Finance Management Act, 1999 (Act No. 1 of 1999). Interest on outstanding amounts shall be calculated from the due date for payment hereunder to the date of actual payment.

**8.** **Technical Advisory Committee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.The parties shall by written notice to each other, within 30 (thirty) days from the Effective Date establish a committee (herein referred to as the Technical Advisory Committee) which shall consist of the following members:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.a chairman and one other person appointed by the Grantor; 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;8.1.2.two persons appointed by the Holder (one of which shall be a representative of the Operator).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.The membership of the Technical Advisory Committee may be enlarged to include one member for each Holder Party. The Grantor may in such instances enlarge its membership of the Technical Advisory Committee to equal that of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.The Grantor and each Holder Party may appoint by written notice to each other, alternate members to act in the place of their representatives. When an alternate member acts in the place of any member he or she shall be deemed to have the powers and shall perform the duties of such member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.Without prejudice to and without derogating from the rights and obligations of the Holder in terms of this Exploration Right, the Act and the Regulations the functions of the Technical Advisory Committee are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1.to review the progress of all Exploration Operations, to monitor the implementation thereof and to provide the Holder with advice and recommendations with regard 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;8.4.2.to review any proposed amendments to the approved Annual Exploration Work Programme submitted by the Holder to the Grantor in terms of Clause 15, to monitor the implementation thereof, and to provide the Holder with advice and recommendations with regard 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;8.4.3.to review any Appraisal Programme submitted by the Holder to the Grantor in terms of Clause 16, to monitor the implementation thereof, and to provide the Holder with advice and recommendations with regard 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;8.4.4.to review any proposed Development Plan and provide the Holder with advice and recommendations with regard 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;8.4.5.to review the accounting of expenditure and the maintenance of operating records and reports kept in connection with Exploration Operations, to monitor the implementation thereof, and to provide the Holder with advice and recommendations with regard thereto; 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;8.4.6.to offer advice to the Holder in order to promote the efficient carrying out of Exploration Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.The Technical Advisory Committee shall meet as and when required but not less than once annually unless otherwise agreed between the members in which case, a 30 (thirty) days notice must be given by the Party requesting such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.All meetings shall be held in Cape Town, South Africa or such other place as unanimously agreed to by the members of the Technical Advisory Committee. Except in respect of meetings of the Technical Advisory Committee held in Cape Town, the Holder shall be responsible for all costs and expenses related to attendance by the Grantor and its representatives at such meetings.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.The Grantor shall propose for the Holder's in-put, an Agenda for the meeting which Agenda takes into consideration *inter alia* the holder's work programme obligations. The aforesaid Agenda and the copies of all the necessary documentation and presentation materials shall be exchanged between the parties not less than 7 (seven) days prior to the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8.Three members of the Technical Advisory Committee shall form a quorum: Provided that at least one representative of the Grantor, and one representative the Operator are present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9.Any member of the Technical Advisory Committee shall have the right to bring any expert or advisor to a meeting of the Technical Advisory Committee for the purpose of advising on any matter requiring an expert's advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10.The proceedings and processes of the Technical Advisory Committee are without prejudice to the rights and obligations of the Grantor or and the Grantor Group.

**9.** **Cancellation or Suspension of the Exploration Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.It is recorded that in terms of Section 90 of the Act, the Minister is empowered to cancel or suspend this Exploration Right in the circumstances set out in and in accordance with the provisions of Section 47 of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.Should this Exploration Right be cancelled or suspended in accordance with Section 90 of the Act, the Holder shall not be absolved from those obligations and liabilities that have accrued up to the date of such cancellation or suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.Any cancellation or suspension of this Exploration Right by the Grantor shall be without prejudice to the Grantor's other rights under this Exploration Right or the Applicable Laws and the Grantor reserves the right to claim damages, claim specific performance or claim any other alternative relief.

**10.** **Relinquishment and Voluntary Abandonment of the Exploration Area**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.The Holder shall relinquish portions of the Exploration Area as set out in and in accordance with the attached **Annexure C.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.Subject to Clause 10.4, the Holder may, upon giving the Grantor not less than 180 (one hundred and eighty) days prior written notice, abandon this Exploration Right by relinquishing the entire Exploration Area to the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.Subject to Clause 10.4, the Holder may by giving the Grantor not less than 90 (ninety) days prior written notice relinquish any portion of the Exploration Area. Any portion of the Exploration Area relinquished by the Holder shall comply with the requirements set out in Annexure C and shall be accompanied by a sketch plan depicting the area remaining or still covered by the exploration right.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.Any relinquishment in terms of Clauses 10.1 and 10.3 or abandonment in terms of Clause 10.2 shall not absolve the Holder of any cost, liability, obligation or expense incurred by the Holder in respect of this Exploration Right prior to the date of such abandonment or relinquishment and the Holder shall remain liable therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.From the date that the Holder has abandoned this Exploration Right or has relinquished a portion or portions of the Exploration Area, the Grantor shall be entitled to grant to any other person any of the rights and permits referred to in the Act in, on, or under the portion or portions so abandoned or relinquished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.Upon abandonment of this Exploration Right, the Holder shall within 3 (three) months furnish the Grantor with a copy of all the Required Data that has not been previously furnished to the Grantor, and all copies of the Existing Data or a certificate to the effect that all such copies have been destroyed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.Upon relinquishment of any portion of the Exploration Area, the Holder shall within 3 (three) months furnish the Grantor with a copy of all the Required Data that has not been previously furnished to the Grantor in respect of those portions of the Exploration Area that have been so relinquished. The Holder shall thereafter be entitled to freely use, distribute or dispose of such Required Data in respect of the Exploration Area so abandoned or relinquished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8.Prior to abandonment of this Exploration Right or any relinquishment, the Holder shall apply for a closure certificate in terms of Section 43 of the Act.

**11.** **Rights to Minerals and Petroleum**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.Except as provided for herein in respect of petroleum, this Exploration Right confers no rights to the Grantor in respect of any mineral (as defined in the Act) discovered in the Exploration Area. Should the Holder discover any mineral during Exploration Operations, the Holder shall forthwith report such discovery to the Grantor who shall assume the ownership of the said discovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.The Holder may thereafter, subject to any prior third party rights, apply for the right to explore, prospect for, produce and/or mine such mineral.

**12.** **Examination of the Exploration Area**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.It is recorded that in terms of Sections 91 and 92 of the Act, the Minister or any person duly authorised by the Minister may enter upon the Exploration Area and conduct routine inspections and exercise such related powers as set out in the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.Upon request by the Grantor, in the event of Exploration Operations being conducted offshore, the Holder shall provide free transportation during normal business hours between the Holder's onshore base and the offshore facilities as well as free accommodation on the offshore facilities to the Minister or any person duly authorised by him or her.

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**13.** **Records and Samples**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.Without derogating from the Holder's responsibilities in terms of Section 88 of the Act read together with the Regulations, the Holder shall keep current and accurate records of all Acquired Data acquired during the Exploration Operations. Such Acquired Data shall be kept in such form as is reasonably required and approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.Samples shall be taken by the Holder at regular intervals in accordance with the Applicable Laws and Good International Petroleum Industry Practices. The Holder shall, at its own cost, save and correctly label a representative portion of all Samples in such form as reasonably required and approved by the Grantor. A portion of Samples of any petroleum or other minerals of potential value recovered by the Holder during Exploration Operations shall be forwarded promptly to the Grantor at the Holder's expense. All Samples acquired by the Holder for its own purpose shall be made available for inspection by the Grantor at all reasonable times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.Prior to the Holder discarding any Samples, the Holder shall obtain the Grantor's written consent. Should the Grantor require such Samples, the Holder shall, at its cost, deliver to the Grantor the Samples so requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.The Holder may export Existing Data, Acquired Data and Samples for processing or laboratory examination or analysis by the Holder or by third parties or for storage outside of the Republic of South Africa: Provided that representative Samples (equivalent in quality) and copies of the Acquired Data (equivalent in quality) have first been delivered to the Grantor and: Provided further that the Grantor's prior written approval has been obtained by the Holder. Such approval shall not unreasonably be withheld or refused by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5.The Holder shall deliver to the Grantor, at the Holder's expense, digital and where appropriate, paper copies of all Acquired Data and representative Samples as soon as they are acquired or prepared. In this respect the Holder shall adhere to the Grantor's guidelines with regard to the form, substance and format for preparing and storing the Acquired Data and Samples.

**14.** **Reports**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.The Holder shall keep the Grantor advised of all material developments taking place during the course of Exploration Operations and shall furnish the Grantor with Required Data and such other reports and information as the Grantor may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.Without derogating from the generality of Clause 14.1 or the Holder's reporting obligations in terms of Section 88 of the Act, within 30 (thirty) days from the end of each Quarter and within 60 (sixty) days from the end of each Year, the Holder shall submit to the Grantor a written report reflecting, for the relevant Quarter or Year, respectively, the progress of Exploration Operations, including the summary of:

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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;14.2.1.the numbers of local persons (classified by race and gender) and expatriate persons employed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2.the work done and expenditure on Exploration Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3.the site and depth of every well drilled or being drilled and the formations penetrated and particulars regarding any occurrence of petroleum and/or any mineral of potential value encountered; 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;14.2.4.a statement of compliance with the Environmental Management Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3.The Grantor and Holder shall each own the Required Data in its possession, whether original or a copy, and after the termination, cancellation or abandonment of this Exploration Right or relinquishment of any portion of the Exploration Area, each Party may freely use, sell, distribute, trade, license or otherwise disclose or dispose of such data relating to the areas no longer included in the Exploration Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4.None of the terms of this Exploration Right shall be construed as requiring the Holder to disclose any of its or its Affiliates' proprietary technology licensed by the Holder or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.Within 3 (three) months from the termination and/or cancellation and/or abandonment of this Exploration Right, the Holder shall furnish the Grantor with a copy of all the Acquired Data not already in the possession of the Grantor and shall return all the Existing Data to the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.The Holder shall provide copies of all hydrographic information and data obtained by the Holder during marine Exploration Operations undertaken during this Exploration Right to the Grantor and to a representative of the Hydrographic Office of the Department of Defence designated in writing by the Agency.

**15.** **Annual Exploration Work Programme and Budget**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.Not later than 60 (sixty) days from the Effective Date, the Holder shall submit and present to the Grantor for approval an Annual Exploration Work Programme for the current Year. Thereafter, at least 90 (ninety) days prior to the commencement of each succeeding Year, the Holder shall submit and present to the Grantor for review and approval its proposed Annual Exploration Work Programme for the next Year or part thereof, as the case may be, in accordance with this Clause and such approval shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.The proposed Annual Exploration Work Programme shall set forth the Exploration Operations, inclusive of the Minimum Work Obligations, to be carried out during the next Year or part thereof, as the case may be, together with a budget of the expected cost thereof. The Annual Exploration Work Programme shall be consistent with and be part and parcel of the Exploration Work Programme attached hereto as **Annexure B.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.Within 30 (thirty) days from receipt of the proposed Annual Exploration Work Programme, the Grantor shall either, notify the Holder in writing of its approval of the proposed Annual Exploration Work Programme or, reject the same and propose amendments thereto specifying the reasons for such amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4.Should the Grantor fail to respond with regard to the proposed Annual Exploration Work Programme within 30 (thirty) days from its receipt thereof, the proposed Annual Exploration Work Programme shall be deemed approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5.The Grantor may, within 10 (ten) days from its receipt of the proposed Annual Exploration Work Programme, request the Holder to supply such further information relating to the proposed Annual Exploration Work Programme as may be reasonably required by the Grantor for its review and approval thereof. The Holder, to the extent reasonably possible and practical, shall comply in writing with such request within 10 (ten) days from the date of receipt of such request from the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6.If the Grantor proposes any amendments to the proposed Annual Exploration Work Programme as described above, the Parties shall meet within 15 (fifteen) days from the date on which the proposed amendments are notified to the Holder to discuss the proposed amendments. The proposed amendments to the Annual Exploration Work Programme shall be consistent with the Exploration Work Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.Following review and consideration of any amendments proposed by the Grantor, the Holder shall within 15 (fifteen) days from the meeting required in terms of Clause 15.6 re-submit to the Grantor for approval a revised Annual Exploration Work Programme, and shall give effect to all amendments to the proposed Annual Exploration Work Programme reasonably requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8.Should any amendments to the Exploration Work Programme be required, such shall be subject to the provisions of Section 102 of the Act which requires the approval of the Minister.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9.Any dispute which cannot be resolved between the Parties with regard to the Annual Exploration Work Programme shall be resolved in accordance with Clause 37.

**16.** **Discoveries and Testing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.If a Discovery is made by the Holder in the Exploration Area, the Holder shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1.promptly inform the Grantor by written notice of the fact that such Discovery has been made;

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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;16.1.2.cause tests to be made on such Discovery within a reasonable period of time consistent with Good International Petroleum Industry Practices in order to determine whether such Discovery is or could be a Commercial Discovery and is worthy of appraisal. Prior to testing each Discovery, the Holder shall give written notice to the Grantor of the tests the Holder intends to conduct and the Grantor shall have the right to witness such tests. If such tests are being conducted offshore, then the Holder shall, free of charge, provide access, transportation to and from the offshore facilities, including reasonable accommodation facilities on the installation, for not more than 4 (four) of the Grantor's representatives who will witness the tests; 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;16.1.3.within 60 (sixty) days from having completed and received the results of tests under Clause 16.1.2, furnish the Grantor with a copy of the test results report containing a summary of the Holder's interpretation of such tests and Holder's conclusion as to whether or not such Discovery could be a Commercial Discovery and is worthy of appraisal (the 'Discovery Report').

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2.All tests and measurements conducted by the Holder for the purpose of establishing the potential existence of a Commercial Discovery shall be carried out in accordance with Good International Petroleum Industry Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3.If the Holder considers, after providing the Grantor with the Discovery Report that the Discovery could be commercial, then the Holder shall forthwith take such reasonable steps to appraise the Discovery and submit a proposed Appraisal Programme to the Grantor for its approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.Within 30 (thirty) days from receipt of the proposed Appraisal Programme, the Grantor shall either notify the Holder in writing of its approval of the proposed Appraisal Programme or reject the same and propose amendments thereto specifying the reasons for such amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.Should the Grantor fail to respond to the proposed Appraisal Programme within 30 (thirty) days from its receipt thereof, the proposed Appraisal Programme shall be deemed approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6.The Grantor may, within 10 (ten) days from its receipt of the proposed Appraisal Programme, request the Holder to supply such further information relating to the proposed Appraisal Programme as may be reasonably required by the Grantor for its review and approval thereof. The Holder, to the extent reasonably possible and practical, shall comply in writing with such request within 10 (ten) days from the date of receipt of such request from the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7.If the Grantor proposes any amendments to the proposed Appraisal Programme as described above, the Parties shall meet within 15 (fifteen) days from the date on which the proposed amendments are notified to the Holder to discuss the proposed amendments. The proposed amendments to the Appraisal Programme shall be consistent with the objectives of appraising the discovery.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8.Following review and consideration of any amendments proposed by the Grantor, the Holder shall within 15 (fifteen) days from the meeting required in terms of Clause 16.7, re-submit to the Grantor for approval a revised Appraisal Programme to give effect to all amendments to the proposed Appraisal Programme reasonably requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9.Any dispute which cannot be resolved between the Parties with regard to the Appraisal Programme shall be resolved between the Parties in accordance with Clause 37.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10.In the event that operational imperatives (including the immediate availability of a seismic vessel or drilling rig) require such approval to the Appraisal Programme in a shorter timeframe than specified in Clauses 16.4 to 16.8, then the Parties shall use all of their reasonable commercial efforts to complete the approval process in accordance with the aforesaid procedures within a shorter timeframe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11.Within 180 (one hundred eighty) days from the completion of such Appraisal Operations, or such further period as agreed between the Parties in writing, the Holder shall deliver to the Grantor (a) a full report containing particulars of the results of such Appraisal Operations, including particulars and preliminary estimates relating to the location and depth of petroleum bearing structures, the composition of petroleum, the estimated recoverable reserves of petroleum, and the estimated daily production potential of petroleum, (b) a declaration by the Holder as to whether or not the Discovery is a Commercial Discovery, and (c) an election by the Holder as to whether or not the Holder intends to develop such Discovery (the 'Appraisal Report').

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12.If the Holder notifies the Grantor in the Appraisal Report that the Discovery is a Commercial Discovery, then within180 (one hundred eighty) days from the date of receipt of the Appraisal Report by the Grantor, the Holder shall submit a proposed Development Plan for such Discovery to the Grantor for its approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13.Within 60 (sixty) days from receipt of the proposed Development Plan, the Grantor shall either notify the Holder in writing of its approval of the proposed Development Plan or reject the same and propose amendments thereto specifying the reasons for such amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14.Should the Grantor fail to so act on the proposed Development Plan within 60 (sixty) days from its receipt thereof, the proposed Development Plan shall be deemed approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.15.The Grantor may, within 20 (twenty) days from its receipt of the proposed Development Plan, request the Holder to supply such further information relating to the proposed Development Plan as may be reasonably required by the Grantor for review and approval thereof. The Holder, to the extent reasonably possible and practical, shall comply in writing with such request within 20 (twenty) days from the date of receipt of such request from the Grantor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.16.If the Grantor proposes any amendments to the proposed Development Plan as described above, the Parties shall meet within 30 (thirty) days from the date on which the proposed amendments are notified to the Holder to discuss the proposed amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.17.Following review and consideration of any amendments proposed by the Grantor, the Holder shall within 30 (thirty) days from the meeting, required in terms of Clause 16.16, re-submit to the Grantor for approval a revised Development Plan to give effect to all amendments to the proposed Development Plan reasonably requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.18.Should any amendments to the Exploration Work Programme be required, such shall be subject to the provisions of Section 102 of the Act which requires the approval of the Minister.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.19.Any dispute which cannot be resolved between the Parties with regard to the Development Plan shall be resolved in accordance with Clause 37.

**17.** **Manner of Conducting Exploration Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.Without derogating from the provisions of the Applicable Laws and Environmental Management Programme, the Holder shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.execute all Exploration Operations in a proper and workmanlike manner in accordance with Good International Petroleum Industry Practices and, without prejudice to the generality of the foregoing, the Holder shall take all reasonable and practical steps in order to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.1.the escape or waste of petroleum discovered in the Exploration Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.2.damage to petroleum-bearing strata;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.3.the entrance of uncontrolled water through wells to petroleum-bearing strata;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.4.the escape of petroleum into any waters or aquifer in the vicinity of the Exploration Area; 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;17.1.1.5.pollution of the terrestrial or marine environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2.promptly inform the Grantor and all other relevant Government departments of the occurrence of any event described in Clauses 17.1.1 to 17.1.5 inclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3.take all actions required under the Environmental Management Programme and all Applicable Laws with respect to any of the incidents referred to Clauses 17.1.1 to 17.1.5 inclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.4.promptly notify, upon the completion of any operation or activity within the Exploration Area, the Grantor and all relevant Government departments of any obstruction, including the location, nature and extent thereof, that remains in the Exploration Area;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.5.not flare any petroleum without the Grantor's prior written approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.6.promptly give notices to relevant Government departments, including interested and affected parties, with regard to all Exploration Operations which may be reasonably expected to interfere with the rights of other users of the Exploration Area and shall take all reasonable steps to minimise interference with the rights of other users.

**18.** **Existing Data**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.It is recorded that Existing Data listed in **Annexure E** has been made available to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.Any further data or information relating to the Exploration Area that the Grantor has available or which the Grantor acquires independent of the Holder will be made available for inspection, copying and use by the Holder: Provided that the Holder shall pay the Grantor for the reasonable and customary costs incurred in copying and preparing such data or information. Should such further data or information be provided to the Holder, such data and information shall be deemed to form part of the Existing Data and Annexure E will be amended accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.Upon terms and conditions to be agreed, the Grantor may assist the Holder in resolving technical problems relating to the Existing Data. Such assistance shall not include interpretation of the Existing Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4.Ownership in all Existing Data vests in the Grantor and is of considerable commercial value to the Grantor. On expiry, cancellation, termination or abandonment of this Exploration Right or relinquishment of the exploration area, all Existing Data in the Holder's possession, shall forthwith, at Holder's cost, be returned to the Grantor. Alternatively the Holder shall submit to the Grantor a certificate to the effect that all such copies have been destroyed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5.While every effort has been made to verify the quality and accuracy of the Existing Data, the Grantor Group shall not be liable for any error or inaccuracy contained within the Existing Data or any damages of whatsoever nature suffered by the Holder arising from any such error or inaccuracy in the Existing Data.

**19.** **Environmental Protection and Financial Provision**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.The Holder shall conduct all Exploration Operations in accordance with the Environment Management Programme, attached hereto as **Annexure F** and in a manner that facilitates the protection and conservation of the natural resources of the Republic of South Africa and of the environment in general.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.The financial provision made available by the applicant herein as required by section 41 (1) must in accordance with Section 41 (3) be annually assessed and increased to the satisfaction of the Minister.

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**20.** **Social and Labour Matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.Without derogating from the Holder's responsibilities in terms of the Applicable Laws including Section 2(d) and Section 2(f) of the Act, the Holder undertakes to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.1.make a sincere attempt before or during the period of this Right to find a suitable partner, who is a Historically Disadvantaged South African to take up shareholding/equity in line with Sections 80(2) and 100 of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.2.employ Historically Disadvantaged South Africans having appropriate qualifications and experience, and or alternatively implement a programme for the future recruitment of such, taking into account the Holder's operational requirements under this Exploration Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.3.implement programmes for the training and skills development of Historically Disadvantaged South Africans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.4.give preference, in procuring for purposes of use in the exploration operations, the equipment, machinery, materials, instruments, supplies and accessories (all referred to collectively as 'Goods') manufactured or produced by Historically Disadvantaged South Africans: Provided that such Goods are competitive with like goods manufactured or produced or available outside the Republic of South Africa in respect of cost, quantity and quality and that such Goods can be made available at the time when and the place where required by the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.5.use contractors and/or sub-contractors who are Historically Disadvantaged South Africans and whose services and standards are competitive with those available outside the Republic of South Africa in terms of price, quality, expertise, and: Provided further that such services can be performed at the place and within the time required by the Holder; 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;20.1.6.pay the amounts set out and specified in the attached **Annexure D** to the Upstream Training Trust, to be used by the Trust for the training, education, and obtaining of practical experience for historically disadvantaged South Africans and other South Africans in the manner determined by the trustees.

**21.** **Tax**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1.The Holder's tax obligations and benefits shall be as provided for in the Income Tax Act and other Applicable Laws of the Republic of South Africa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.Except to the extent exempted or as directed otherwise, the Holder shall for the duration of this Exploration Right be liable for income tax payments to the State on the annual taxable income derived by it from the sale of Petroleum (referred to in the Income Tax Act as "natural oil") or any other product

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of Exploration Operations in accordance with the provisions of the Income Tax Act, including any amendments and regulations issued pursuant thereto.

**22.** **Financial Records and Audits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1.Without derogating from the Holder's responsibilities under the Applicable Laws, the Holder shall keep in the Republic of South Africa financial records and accounts of all transactions pertaining to this Exploration Right, in accordance with generally accepted accounting practices as applicable in the Republic of South Africa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2.At the Grantor's request, such financial records and accounts or copies thereof shall be promptly provided to the Grantor. The Grantor or its duly appointed representative shall, at Grantor's own cost, have the right to audit the Holder's financial records and accounts.

**23.** **Customs duties**

Without derogating from the provisions of Clause 29.1, and except to the extent exempted or as directed otherwise, in respect of all goods imported into the Republic of South Africa for purposes of conducting Exploration Operations, the Holder shall comply with the provisions of the Customs and Excise Act, 1964 (Act No. 91 of 1964), including any regulations issued pursuant thereto.

**24.** **Exchange Control**

Without derogating from the provisions of Clause 29.1 and except to the extent exempted or as directed otherwise, the Holder undertakes to comply with the provisions of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933), including any regulations issued pursuant thereto.

**25.** **Indemnity and insurance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.The Holder shall for the duration of this Exploration Right take all the necessary and reasonable steps to conduct the Exploration Operations in a manner that safeguards and protects persons from injury or death and prevents damage or destruction of property and the environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.The Holder hereby undertakes to defend, hold harmless and indemnify the Grantor Group from and against any and all claims, costs, charges, liabilities and expenses, including reasonable legal costs (hereinafter referred to as 'Claims'), that may be instituted against or suffered by any member of the Grantor Group as a result of injury or death to any person or damage or destruction to any property and/or the environment arising from the negligent and/or unlawful acts and/or omissions of the Holder Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.The Holder shall within 10 (ten) days of the effective date obtain and maintain sufficient insurance during the term of this Exploration Right to address the risks related to Exploration Operations and support the indemnities given by the Holder under this Exploration Right. Without derogating from the Holder's responsibilities, the Holder, with the prior written approval of the Grantor, may implement

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a policy of self insurance in respect of certain risks related to Exploration Operations. Without derogating from the generality of the foregoing such insurance shall specifically provide for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.1.all risks in respect of any property or equipment used in connection with Exploration Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.2.pollution liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.3.third-party liability and public liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.4.removal of wrecks and cleaning-up operations pursuant to an accident in the course of or as a result of Exploration Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.5.the Holder's liability to its contractors, employees, consultants and agents engaged in Exploration Operations; 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;25.3.6.any other risk of whatever nature as is customary to insure against in the international petroleum industry or in accordance with the Good International Petroleum Industry Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.4.Without derogating from the Holder's responsibilities in terms of the Applicable Laws or this Exploration Right, the amounts, type and terms of the insurance referred to in Clause 25.3 above shall be determined in consultation with the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.5.The Grantor shall have the right to be included as an additional insured party on such insurances and have all rights of subrogation against the Grantor Group waived, but in each case only with respect to and to the extent of the liabilities and obligations expressly agreed to be assumed by the Holder under this Exploration Right.

**26.** **Health and Safety**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1.the Holder undertakes while conducting Exploration Operations to comply with the Applicable Laws in respect of all health and safety matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.2.where any emergency or incident arising from Exploration Operations causes or has the potential to cause death and/or injury to persons or damage to and/or destruction of property and/or the environment, the Holder shall in consultation with the responsible Government departments take such action as may be prescribed under the Applicable Laws or where not prescribed take such prudent and necessary action in accordance with the Good International Petroleum Industry Practices.

**27.** **Confidentiality and Public Announcements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.The Acquired Data and the Existing Data together with all programmes, tests, analyses, results, books, statements, records, returns, plans, information and correspondence between the Parties

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which the Holder is or may from time to time be required to furnish under the provisions of this Exploration Right (hereinafter collectively referred to as 'Confidential Information') shall be treated as confidential by the Holder and shall not be disclosed by the Holder to any person without the prior written consent of the Grantor, except that the Grantor's consent shall not be required in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.1.where the Holder is required by law, regulation, decree, rule or order applicable to the Holder or its Affiliates to disclose such Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.2.where the Holder discloses Confidential Information to any Affiliate of any Holder Party: Provided that such Holder Party informs its Affiliates of the confidential nature of information so disclosed and guarantees the adherence of such Affiliates to the confidentiality restrictions as set out in this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.3.to the extent that such Confidential Information has to be produced at legal proceedings or because an order from a court of competent jurisdiction has compelled the production of such Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.4.where the Holder discloses Confidential Information to prospective or actual contractors, consultants, advisors, and attorneys employed by any Holder Party or its Affiliates where disclosure of such Confidential Information is essential to such person's services for such Holder Party: Provided that, prior to disclosure, such contractor, consultant, advisor, lender, and attorney provides the Holder Party with a written undertaking of confidentiality that is not Jess restrictive than the confidentiality restrictions set out in this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.5.where the Holder discloses Confidential Information to a bank or other financial institution to the extent appropriate to Holder arranging for funding: Provided that, prior to disclosure, such person provides the Holder Party with a written undertaking of confidentiality that is not less restrictive than the confidentiality restrictions set out in this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.6.to the extent that such Confidential Information must be disclosed pursuant to any rules or requirements of any recognised stock exchange on which the securities of any Holder Party or its Affiliates are or are to be listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.7.where the Holder discloses Confidential Information to a bona fide prospective assignee or assignees to whom the Holder's or any of the Holder Party's rights and obligations under this Exploration Right are proposed to be assigned; 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;27.1.8.to the extent that any Confidential Information, through no fault of the Holder, has become or becomes part of public domain; 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;27.1.9.where the Holder discloses Confidential Information as part of an exchange with third parties for the geological, geophysical, geochemical and any other technical or scientific data, reports and information (either raw, processed or interpreted) pertaining to their petroleum

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operations in respect of other acreage within the Republic and subject to their execution of suitable confidentiality arrangements. In this event the Grantor shall be apprised of the extent of the proposed exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2.Except as may be required by laws, rules, regulations or decrees (including that of a stock exchange) applicable to the Holder or its Affiliates, the Holder shall make no public announcement with regard to this Exploration Right or any matter related thereto, unless the Holder has furnished the Grantor with a copy of the intended public announcement and the Grantor has given its prior written approval, which approval shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3.If the Grantor desires to issue any press release, media statement, or interview on any petroleum Discovery, estimated petroleum reserves, and/or any well drilling operations, tests, and/or results relating to the Exploration Operations hereunder, the Grantor shall give prior written notice thereof to the Holder at least three (3) days in advance to enable the Holder to comply with disclosure rules and requirements imposed on any Holder Party or its Affiliates by the laws, regulations or rules of the relevant countries in which such Holder Party is incorporated or doing business or in which the securities of such Holder Party or its Affiliates are or are to be listed or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.4.When a public announcement or statement becomes required by law or necessary or desirable because of impending danger to or loss of life, damage to property or pollution as a result of Operations, either Party is authorised to issue and make such announcement or statement without prior notice or prior approval of the other Party where such prior notice and approval is impractical. In such a case the Party making the announcement or statement shall promptly furnish the other Party with a copy of such announcement or statement.

**28.** **Cession and Sub-contracting**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1.It is recorded that this Exploration Right may not be ceded, transferred, let, sub-let, assigned, alienated or otherwise disposed of without the written consent of the Minister in terms of Section 11 of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.The Holder may from time to time appoint one or more independent sub-contractors to carry out any portion of the Annual Exploration Work Programme and/or Exploration Work Programme: Provided that the Holder shall always remain liable to the Grantor for the compliance with and observance of its obligations in terms of this Exploration Right.

**29.** **Law and Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.1.The Holder shall comply with all Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2.Without derogating from the provisions of Section 4 of the Act, this Exploration Right shall be governed, construed and interpreted in accordance with the laws of the Republic of South Africa.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.It is recorded that the Grantor and the Holder are not partners nor is it the intention of the Parties to create a partnership and that Exploration Operations to be carried out in terms of this Exploration Right are at the sole cost, risk and expense of the Holder.

**30.** **Obligations of the Grantor**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1.Subject to the Applicable Laws, the Grantor undertakes to do and perform all acts and things which are or may be required to be done or performed to give full effect to this Exploration Right in accordance with its provisions, and guarantees that the terms and conditions of this Exploration Right will not be altered without prior written consent of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.Terms relating to fiscal stability, if any, will be determined by a relevant Act of Parliament.

**31.** **State Option**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1.From the grant of any production right in respect of any portion of the Exploration Area, the State shall participate as a member of the Holder Group and be granted not less than ten (10) percent Participating Interest in such a production right unless the State renounces in writing to the Holder such participation within ninety (90) days from the grant of the Production Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2.As a member of the Holder Group, the State shall pay its Participating Interest share of all costs and expenses related to the Development Plan and approved production work programme in respect of the Production Area, excluding any costs and expenses related to any previous and /or further Exploration or Appraisal Operations conducted within the Production Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.3.The State shall have the right at any time, on giving written notice to the Holder, to assign all or any part of its Participating Interests to any technically and financially competent third party. Such assignment by the State will not require the consent of the Holder or any Holder Party and such Assignee shall similarly not be liable for any prior costs and expenses relating to the conduct of Exploration or Appraisal Operations conducted within the Production Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.4.Upon the grant of the Production Right, the State or any assignee of the State's Participating Interests shall become a member of the Holder Group and also a party to any operating agreement executed or to be executed between the members of the Holder Group. The terms of such operating agreement shall neither limit the State in the exercise of any of its rights and obligations as Grantor nor impose additional obligations on the State merely because the State is also member of the Holder Group.

**32.** **Vis Major**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.1.Any act, cause, thing or event outside the control of the Parties, including acts of God, war, insurrection, civil commotion, blockade, strikes, flood, storm, lightning, fire or earthquake which prevents any of the Parties from fulfilling its obligations under this Exploration Right shall be regarded as a *vis major* event and any such failure on the part of any of the Parties as a consequence of the *vis major* event shall not constitute a breach hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.2.Financial inability, ordinary hardship and inconvenience on the part of the Holder, howsoever caused or arising, shall not be regarded as a *vis major* event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.3.If the Holder by reason of a *vis major* event as contemplated in Clause 32.1 is prevented from fulfilling its obligations or enjoying its rights under this Exploration Right, the Holder shall in writing promptly notify the Grantor thereof and the Holder shall take all reasonable steps to investigate and remove the cause thereof. The Holder shall promptly notify the Grantor in writing as soon as the *vis major event* ends and the Holder shall as soon as is reasonably practicable thereafter resume the Exploration Work Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.4.Upon the Holder notifying the Grantor of the end of the *vis major,* the duration of this Exploration Right shall automatically be extended for the equivalent period of time that the Holder was prevented from fulfilling its obligations or enjoying its rights under this Exploration Right by reason of such *vis major.* The Holder's notice of the end of the vis major must declare the Holder's intention to resume the Exploration Work Programme and state the length of the extension time. Such extension period shall be calculated from the date that the Holder first notified the Grantor in writing of the *vis major* event until the date that the *vis major* event has ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.5.In the event of the automatic extension envisaged in clause 32.4 above, the Holder shall present the original copy of this Exploration Right for an endorsement reflecting such extension and the Grantor shall make the same endorsement on the office copy.

**33.** **Amendments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.1.It is recorded that in terms of Section 102 of the Act, this Exploration Right may not be amended or varied without the written consent of the Director General (being the delegate of the Minister).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.2.The aforesaid amendment or variation shall be in writing and effective once the aforesaid consent has been given.

**34.** **Unitisation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1.In the event that the rights held by the holders under two or more exploration rights and/or mining leases and/or production rights and/or prospecting leases or sub-leases extend over different areas which geologically form part of the same petroleum-bearing area within the Republic of South Africa, the Grantor may by notice in writing require the holders of such rights to prepare a proposal for the production of that petroleum-bearing area as a unit. Such proposal shall be submitted to the Grantor within the period specified in the said notice which shall not be less than 90 (ninety) days. Where such petroleum-bearing area extends over an area over which the State's rights have not been alienated then the Grantor shall be deemed to be the holder of the rights over such area and be entitled to a proportionate share of benefits.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.2.The unitisation proposal referred to in Clause 34.1 shall maximise the exploration and/or production for the benefit of all holders of interests in the unitised area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.3.If no unitisation proposal is submitted within the period specified in the notice or such further period as the Grantor may approve, or if the proposal submitted is not acceptable to the Grantor, then the Grantor may appoint a committee of experts to advise the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.4.The committee so appointed shall, after having considered any representation made by the Holder, submit a unitisation proposal to the Grantor as soon as is practical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.5.The Grantor may, if satisfied that the unitisation proposal submitted in terms of Clause 34.2. or Clause 34.4. is objectively practical, fair and equitable to all parties concerned, confirm such proposal, and it shall be binding upon the relevant Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.6.If the Holder fails to carry out any provision of the proposal the Minister may by notice in writing require the Holder to do so within the period specified in the notice and if the Holder still fails to comply with such notice the Minister may, in terms of Section 90 of the Act, cancel this Exploration Right.

**35.** **Special Provisions Relating to Gas Discovery**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.1.If the Holder discovers petroleum, the economic development of which the Holder believes can only be accomplished if Gas produced as the primary or secondary product is sold commercially, then the Holder shall have the option, exercisable upon written notice to the Grantor at the time that the Holder makes an application to the Grantor for a production right, to have the production right suspended for a period of up to 5 years (hereinafter referred to as the "Gas Market Development Period") commencing from the effective date of the Production Right during which period the Holder shall conduct studies to determine whether the Gas can be commercially produced. In such circumstances, the Development Plan and proposed production programme submitted in support of the application for the Production Right shall be deemed to be preliminary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.2.Not less than 90 (ninety) days prior to the expiry of the Gas Market Development Period the Holder shall advise the Grantor in writing either that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.1.1.the Gas can be commercially developed and produced, in which case the Holder shall proceed with implementation of the Development Plan and proposed production programme, duly amended if necessary, 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;35.1.2.the Gas cannot be commercially developed and produced, in which case the Holder shall be deemed to have abandoned the Production Right with effect from the expiry date of the Gas Market Development Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.3.The grant of any extension to the Gas Market Development Period shall be at the sole discretion of Grantor.

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**36.** **Waiver or Lenience**

Any failure by either the Grantor or the Holder to exercise any of the rights that they have whether in terms of this Exploration Right, the Act or the Regulations, or any lenience granted by them in terms thereof shall not constitute a waiver of such rights or a variation to the terms and conditions of this Exploration Right.

**37.** **Dispute Resolution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.3.Should any difference or dispute arise between the Parties to this Exploration Right as to the validity, duration, termination, intention or meaning of any of the terms and conditions hereof, or as to any other matter arising from this Exploration Right (each a 'dispute'), then the Parties shall make every reasonable effort to resolve the dispute on its merits by negotiation in good faith and shall, for that purpose, attend at least one meeting with each other. Such negotiations shall take place within 21 (twenty one) days of the dispute arising, unless the Parties otherwise agree in writing, and shall endure for no longer than seven (7) days from the date of commencement or such extended period as the Parties may agree in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.4.If the Parties are unable to resolve the dispute in question despite compliance with Clause 37.1, then the dispute may at the instance of either Party be referred to and finally settled by arbitration in accordance with the Rules of the Arbitration Act No. 42 of 1965, except as modified in this Clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.5.The venue for the arbitration shall be Cape Town, Republic of South Africa or such other place in the Republic of South Africa as may be agreed between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.6.Notwithstanding the referral of such dispute to arbitration, the Parties shall, to the extent possible, proceed with the carrying out of their respective obligations under this Exploration Right, unless such obligations are directly in dispute: Provided that the foregoing undertaking shall be without prejudice to other rights and remedies available to either Party at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.7.There shall be three (3) arbitrators: the claimant and the respondent shall each select one (1) in accordance with the rules of the Arbitration Act No. 42 of 1965, and the two named arbitrators shall nominate the third arbitrator within 30 (thirty) days from the nomination of the second arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.8.The Grantor and the Holder shall within 3 (three) days of the arbitration award accept the arbitrator's award, failing which either would be entitled to institute legal proceedings in a competent Court of Law.

**38.** **Costs and Value Added Tax**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.3.All taxes, levies, stamp duties, transfer costs, transfer duties and registration costs arising directly or indirectly out of or related to this Exploration Right shall be for the account of and promptly paid by the Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.4.All amounts due and payable by the Holder in terms of this Exploration Right, the Act and Regulations are exclusive of statutory value added tax. Statutory value added tax at the prevailing rate in accordance with the Value Added Tax Act (Act No. 89 of 1991), and except as provided for by the terms of that Act value added tax at the prevailing rate shall be added to all applicable amounts due and payable by the Holder.

**39.** **Entire Agreement**

Subject to the Act, the Regulations, Applicable Laws, this Exploration Right and the Annexures attached hereto (those Annexures being and forming an integral part of this Exploration Right) contain the entire and sole agreement between the parties and supersedes all prior negotiations, representations, understandings, agreements and communications of whatsoever nature between the Parties with respect to such Exploration Area, whether oral or written, express or implied.

**40.** **Severability**

Any provision within this Exploration Right which is not enforceable or which contravenes the Applicable Laws of the Republic of South Africa shall be severed from this Exploration Right and be of no force or effect without prejudice to the other provisions of this Exploration Right which shall remain in force and effect.

**41.** ***Domicilia Citandi et Executandi***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.1.All notices, requests and reports provided for herein shall be in writing and shall be delivered either by hand to an authorised representative of the receiving Party, or sent by courier or telefax to the addresses below in the Republic of South Africa: Provided that if given by telefax a copy thereof shall then be sent immediately by prepaid registered mail:

---

| | |
|:---|:---|
| **If to the Grantor:** |  |
| **<u>Minister of Minerals and Energy</u>** |  |
| **Physical address:** | **Postal address:** |
| Mineralia Centre | Private Bag X59 |
| Cnr Visagie & Andries Streets | PRETORIA |
| PRETORIA | 0001 |
| Tel number: +27 (0)12 317 9000 | Fax number: +27 (0)12 322 3416 |

---

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**And copy to the Agency:**

<u>South African Agency for the Promotion of Petroleum Exploration and Exploitation (Proprietary)</u> Limited

---

| | |
|:---|:---|
| <u>Attention:</u> **<u>Chief Executive</u>** | <u>Attention:</u> **<u>Chief Executive</u>** |
| **Physical address:** | **Postal address:** |
| Petroleum House | PO Box 1174 |
| 151 Frans Conradie Drive | PAROW |
| PAROW | 7499 |
| Western Cape |  |
| Tel number: +27 (0)21 938 3500 | Fax number: +27 (0)21 938 3553 |
| **If to the Holder:** |  |
| **<u>Highland Exploration and Production (Pty) Ltd</u>** | **<u>Highland Exploration and Production (Pty) Ltd</u>** |
| <u>Attention:</u> **<u>Mr Peter Price</u>** |  |
| **Physical address:** | **Postal address:** |
| 38 Fouche Terrace | 38 Fouche Terrace |
| Morning Hill | Morning Hill |
| Bedfordview | Bedfordview |
| 2007 | 2007 |
| Tel number: +27 (0) 11 616 7219 | Fax number: +27 (0) 011 616 7219 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.2.Each Party, including the Agency, may change its address to a different address in the Republic: Provided that it gives the other Parties at least 15 (fifteen) days prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.3.All notices, requests and reports sent by prepaid registered post shall be deemed received by addressee within five (5) days of dispatch and all notices, requests and reports sent by telefax during ordinary business hours shall be deemed to have been received within 12 (twelve) hours of transmission or if transmitted outside ordinary business hours, then on the next business day. Those delivered by hand or sent by courier shall be deemed to have been received at the time of actual delivery.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.4.Each Party also chooses the physical address specified above as its *domicilium citandi et executandi* for all purposes under this Exploration Right, including service of process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.5.The Holder shall within seven (7) days of the Effective Date of this Exploration Right give written notice to the Grantor of the authorised representative with whom the Grantor may deal concerning this Exploration Right. Such representative shall continue to represent the Holder unless the Holder notifies the Grantor of a change of representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.6.The Chief Executive of Agency is hereby appointed as the authorised representative of the Grantor for all matters relating to this Exploration Right.

**42.** **Registration**

It is recorded that in terms of Section 82 of the Act, the Holder must lodge this Exploration Right for registration at the Mining and Petroleum Titles Registration Office within 30 (thirty) days from the Effective Date and, in the event of each renewal of this Exploration Right, within 30 (thirty) days of such renewal.

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Thus done and signed at Bellville on the 8<sup>th</sup> day of May in the year **2007** in the presence of the undersigned witnesses:

---

| | |
|:---|:---|
| ![img175533407_1.jpg](img175533407_1.jpg) |  |
|  | ![img175533407_2.jpg](img175533407_2.jpg) |
| ![img175533407_3.jpg](img175533407_3.jpg) |  |
|  | ![img175533407_4.jpg](img175533407_4.jpg) |
|  | ![img175533407_5.jpg](img175533407_5.jpg) |
|  | ![img175533407_6.jpg](img175533407_6.jpg) |

---

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## Exhibit 10.24

**Exhibit 10.24**

*Ref No: 12/3/1/94/1*

![img176456928_0.jpg](img176456928_0.jpg)

**<u>EXPLORATION RIGHT</u>**

**HIGHLAND EXPLORATION AND PRODUCTION (PTY) LTD**

**Granted in terms of Section 80 of the Mineral and Petroleum Resources Development Act, 2002**

**(Act No. 28 of 2002)**

------

Ref No: 12/3/1/94/1

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

---

| | | |
|:---|:---|:---|
| **Clause** | **Title** | **Page** |
|  | **Preamble** | **4** |
| **1.** | **Definitions and Interpretations** | **6-9** |
| **2.** | **Granting of the Right** | **10** |
| **3.** | **Exploration Area** | **10** |
| **4.** | **Exclusive Right to Apply for a Production Right in respect of Discoveries** | **11** |
| **5.** | **Rights and Obligations of the Holder** | **11** |
| **6.** | **Commencement, Duration and Renewal** | **11** |
| **7.** | **Exploration Fees** | **12** |
| **8.** | **Technical Advisory Committee** | **12** |
| **9.** | **Cancellation or Suspension of the Exploration Right** | **14** |
| **10.** | **Relinquishment and Voluntary Abandonment of the Exploration Area** | **14** |
| **11.** | **Rights to Minerals and Petroleum** | **15** |
| **12.** | **Examination of the Exploration Area** | **15** |
| **13.** | **Records and Samples** | **16** |
| **14.** | **Reports** | **16** |
| **15.** | **Annual Exploration Work Programme and Budget** | **17** |
| **16.** | **Discoveries and Testing** | **18** |

---

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**17.** **Manner of Conducting Exploration Operations** **21** 

**18.** **Existing Data** **21** 

**19.** **Environmental Protection and Financial Provision** **22** 

**20.** **Social and Labour Matters** **22** 

**21.** **Tax** **23** 

**22.** **Financial Records and Audits** **23** 

**23.** **Customs Duties** **24** 

**24.** **Exchange Control** **24** 

**25.** **Indemnity and Insurance** **24** 

**26.** **Health and Safety** **25** 

**27.** **Confidentiality and Public Announcements** **25** 

**28.** **Cession and Sub-contracting** **27** 

**29.** **Law and Interpretation** **27** 

**30.** **Obligations of the Grantor** **27** 

**31.** **State Option** **28** 

**32.** **Vis Major** **28** 

**33.** **Amendments** **29** 

**34.** **Unitisation** **29** 

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Ref No: 12/3/1/94/1

**35.** **Special Provisions Relating to Gas Discovery** **30** 

**36.** **Waiver or Lenience** **30** 

**37.** **Dispute Resolution** **31** 

**38.** **Costs and Value Added Tax** **31** 

**39.** **Entire agreement** **32** 

**40.** **Severability** **32** 

**41.**  ***Domicilia Citandi et Executandi*** **32** 

**42.** **Registration** **34** 

**ANNEXURE INDEX**

---

| | | |
|:---|:---|:---|
| **Annexure** | **Annexure Tite** | **Pages** |
| **A** | **List of farms & Sketch Plan for the Exploration Area** | **40** |
| **B** | **Exploration Work Programme [Inclusive of the Minimum Work Obligations** | **41** |
| **C** | **Relinquishment Schedule** | **42** |
| **D** | **Schedule of Contributions to the Upstream Training Trust** | **43** |
| **E** | **A List of Available Data Made Available to the Holder** | **44** |
| **F** | **Environmental Management Programme and Record of Decision** | **46** |

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**PROTOCOL NO: <u>1644/2009</u>**

**<u>EXPLORATION RIGHT</u>**

**<u>GRANTED IN TERMS OF SECTION 80 OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, NO. 28 OF 2002 READ TOGETHER WITH REGULATION 29 PUBLISHED IN THE GOVERNMENT GAZETTE NO. 26275 ON 23 APRIL 2004, PROMULGATED IN TERMS OF SECTION 107 OF THE ACT</u>**

**LET IT HEREBY BE KNOWN:**

That on this **26**<sup>th</sup> of **May** in the year **2009** before me **Hendrik Malherbe Oosthuizen** a Notary Public, duly sworn and admitted, residing and practicing at **Cape Town** in the **Western Cape** Province, Republic of South Africa, and in the presence of the subscribing competent witnesses personally came and appeared:

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**Mthozami Richardson Xiphu**

the Chief Executive Officer of the South African Agency for Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited, (hereinafter referred to as "the Agency"), Registration No. 1999/015715/07, he or she being duly authorised thereto by virtue of the Power of Attorney granted by the Director General of the Department of Minerals and Energy at **Pretoria** on the **16th of April 2009** which Power of Attorney has this day been exhibited to me, the Notary, and now remain filed of record in my Protocol, and herein representing:

**Susan Shabangu**

the Minister of Mining (hereinafter together with his or her successors in title referred to as "the Minister"), he or she being duly authorised by virtue of the provisions of Sections 3(2)(a) and 103 of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) and as such in his or her capacity representing:

**THE REPUBLIC OF SOUTH AFRICA**

(hereinafter referred to as **"the Grantor")** of the one part, and

**Highland Exploration and Production (Pty) Ltd**

**Registration No. 2005/012157/07**

herein represented by **Stephen P Mitchell,** he being duly authorised thereto under and by virtue of a Resolution of Board of Directors of the Holder passed at Johannesburg on the 25th day of May 2009, a certified copy of which Resolution has this day been exhibited to me, the Notary, and now remains filed of record in my Protocol with the minutes thereof.

(hereinafter together with its successors in title and assigns referred to as **"the Holder"**),

all jointly hereinafter referred to as **"the Parties"**.

**AND THE APPEARERS DECLARED THAT:**

---

| | |
|:---|:---|
| WHEREAS | The State, as Grantor is the custodian of the mineral and petroleum resources of the Republic of South Africa; |
| AND WHEREAS | The Holder has applied for an Exploration Right in the Exploration area described below; |
| AND WHEREAS | The Grantor has decided to grant to the Holder this Exploration Right on the terms and conditions set out below. |

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**NOW, THEREFORE, THE GRANTOR HEREBY GRANTS TO THE HOLDER, AND THE HOLDER HEREBY ACCEPTS, THIS EXPLORATION RIGHT SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:**

**1.** **Definitions and Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.Unless the context indicates otherwise, any expression to which a meaning has been assigned in the Act shall bear, when used in this Exploration Right, the same meaning and apply *<u>mutatis mutandis</u>* hereto. In this Exploration Right the following words and expressions shall have the corresponding meanings assigned to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.1.** **'the Act'** shall mean the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.3.** **'Affiliate'** shall mean another person which, directly or indirectly, owns, or is owned by, or is owned by a person which owns, that first-mentioned person; 'owns' and 'owned' in this definition means the beneficial ownership of 50 % (fifty percent) or more of the voting shares or other securities of such person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.4.** **'Agency'** shall mean the designated agency as defined in the Act, which currently is the South African Agency for Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited, also known as Petroleum Agency SA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.5.** **'Annual Exploration Work Programme'** shall mean the annual work programme for Exploration Operations, inclusive of the estimated budget of costs and expenses of carrying out the same, that the Holder prepares and is approved by the Grantor in accordance with Clause 15;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.6.** **'Applicable Laws'** shall mean the laws of the Republic of South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.7.** **'Appraisal Operations'** shall mean any operation, study, activity, or matter, whether taking place within or outside of the Republic of South Africa, to appraise and evaluate the extent and volume of petroleum within a Discovery made by the Holder in the Exploration Area and to determine whether such Discovery could be a Commercial Discovery, including, if and to the extent applicable, all production of petroleum necessary in connection with completion and testing of any appraisal well (including, if necessary, any long-term production test) and all plugging and abandonment of any appraisal well. The terms 'to Appraise' or 'Appraisal' shall be construed accordingly;

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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;**1.1.8.** **'Appraisal Programme'** shall mean the appraisal programme for Appraisal Operations, inclusive of the estimated budget of costs and expenses of carrying out the same, that the Holder prepares and is approved by the Grantor in accordance with Clause 16.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.9.** **'Commercial Discovery'** shall mean a Discovery of petroleum within the Exploration Area in such quantities as will permit the economic development thereof, on its own or in combination with other existing Discoveries or as part of a unitised development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.10.** **'Days'** shall have the meaning ascribed to it in the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.11.** **'Development Plan'** shall mean the development plan for the Exploration Area, as amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.12.** **'Development Plan Supplement'** shall mean a plan for the further development and production of any additional Commercial Discoveries within the Exploration Area, as amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.13.** **'Discovery'** shall mean the discovery by the Holder of a geological feature within the Exploration Area that is determined by the Holder in accordance with Good International Petroleum Industry Practices to be capable of producing petroleum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.14.** **'Effective Date'** shall mean the date of Notarial execution of the right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.15.** **'Environmental Management Programme'** shall have the meaning ascribed to it in the Act, being the environmental management programme for the Exploration Area, as amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.16.** **'Existing Data'** shall mean all technical information and data provided to the Holder by the Grantor, receipt of which has been acknowledged by the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.17.** **'Exploration Area'** shall mean the area within the Republic of South Africa described in Clause 3, excluding those portions relinquished or abandoned from time to time in accordance herewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.18.** **'Exploration Operations'** shall have the meaning ascribed to it in the Act which for purposes of this Exploration Right shall include Appraisal Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.19.** **'Exploration Work Programme'** shall mean the work programme attached hereto as **Annexure B,** the Annual Exploration Work Programme and any Appraisal Programme, as it may be amended from time to time, that the Holder prepares and is approved by the Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.20.** **'First Renewal Period'** shall mean the first renewal of this Exploration Right granted in terms of Section 81 of the Act read together with Regulation 33;

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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;**1.1.21.** **'Gas'** shall mean any hydrocarbon which at a temperature of 21 (twenty one) degrees Celsius and a pressure of 1 (one) atmosphere, is in a gaseous phase existing in a natural condition in the earth's crust, regardless of the nature of the host rock, and includes any gas which has in any manner been returned to such natural condition, and includes condensate of such gas, but does not include hydrocarbon gas obtained by destructive distillation or gas arising from a marsh or other surface deposit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.22.** **'Good International Petroleum Industry Practices'** shall mean those good, sound and generally accepted prevailing standards, practices, considerations, and procedures that are applied by reasonable and prudent companies and operators in the international petroleum industry under conditions and circumstances similar to those experienced in the Exploration Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.23.** **'Government'** shall mean the government of the Republic of South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.24.** **'Grantor'** shall have the meaning attributed thereto in the description of the Parties above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.25.** **'Grantor Group'** shall mean collectively, the Department of Mining (including the Minister), and the Agency (including the Chief Executive Officer), the directors, officers, employees, agents, representatives and invitees of each of the aforementioned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.26.** **'Holder'** shall have the meaning ascribed to it in the preamble and shall include each Holder Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.27.** **'Holder Group'** shall mean, collectively, the Holder, each Holder Party, contractors (of any tier) of the Holder used in connection with Exploration Operations hereunder and directors, officers, employees, agents, representatives, and invitees of each of the aforementioned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.28.** **'Holder Party'** shall mean each Holder and each successor in title;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.29.** **'Income Tax Act'** shall mean the Income Tax Act, 1962 (Act No. 58 of 1962),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.30.** **'Initial Period'** shall mean a period of 36 (thirty six) months commencing from the Effective 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;**1.1.31.** **'Minimum Work Obligation'** shall mean the minimum work to be conducted by the Grantee in respect of each Sub-period (as defined below) and as specified in the attached **Annexure B;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.32.**'Deleted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.33.** **'Participating Interest'** shall mean a Holder Party's undivided share (expressed as a percentage) in all of the rights and obligations of the Holder derived from this Exploration Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.34.** **'Quarter'** means a three-month period of a year beginning on 1<sup>st</sup> January, 1<sup>st</sup> April, 1<sup>st</sup>July or 1<sup>st</sup> October of any year;

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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;**1.1.35.** **'Regulations'** shall mean the Regulations promulgated in terms of Section 107 of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.36.** **'Renewal Period'** shall mean that period of time for which this Exploration Right is renewed in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.37.** **'Required Data'** shall mean, collectively, all the Acquired Data in their final form generated or recorded and preserved by the Holder in the course of conducting Exploration Operations pursuant to (a) the requirements of the Applicable Laws or (b) a reasonable request by the Grantor or (c) the Agency's published reporting standards manual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.38.** **Deleted;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.39.** **'Samples'** shall mean physical samples of rock, fluid and other materials acquired by the Holder in the course of conducting Exploration Operations for the purpose of preserving and analysing such samples;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.40.** **'Second Renewal Period'** shall mean the second renewal of this Exploration Right granted in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.41.** **'State'** shall mean the Republic of South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.42.** **'Sub-period'** shall mean the First Renewal Period and/or the Second Renewal Period and/or the Third Renewal Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.43.** **'Third Renewal Period'** shall mean the third renewal of this Exploration Right granted in terms of Section 81 of the Act read together with Regulation 33;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.44.** **'Upstream Training Trust'** shall mean the independent Upstream Training Trust registered under registration number IT 1289/98; 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;**1.1.45.** **'Year'** shall mean the period of 12 (twelve) calendar months from the Effective Date and each subsequent 12 (twelve) month period thereafter. The terms 'Yearly,' 'Annual,' or 'Annually' shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.** **Interpretation in this Exploration Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1.Where the context so requires, in this Exploration Right the words:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1.1.importing the masculine gender shall include the feminine and vice versa,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1.2.'hereunder,' 'herein,' 'hereof' and words of similar import are references to this Exploration Right as a whole and not to any particular provision of this Exploration Right, unless expressly provided to the contrary, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1.3.'include' and 'including' shall mean to be inclusive without limiting the generality of the description preceding such term and are used in an illustrative sense and not a limiting sense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2.Headings and sub-headings to clauses and sub-clauses are inserted for convenience only and are not to be taken into consideration in the interpretation or construction of this Exploration Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3.References to any Clause or Annexure are to a Clause or Annexure (as the case may be) of this Exploration Right unless expressly stated to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4.This Exploration Right has been written in English and shall be interpreted and construed in accordance with the English language. All correspondence, communication and documents exchanged between the Grantor and the Holder in connection herewith, whether oral or written, shall be in the English language.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5.Reference to any statute, statutory provision or regulation shall include a reference to that statute, statutory provision or regulation as amended, extended or re-enacted 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;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6.In the event of any conflict or inconsistency between the provisions of this Exploration Right and the Act, the provisions of the Act shall govern. In the event of any conflict or inconsistency between the provisions of this Exploration Right and any Regulations, the provisions of the Regulations shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7.In the event of any conflict between the provisions of the main body of this Exploration Right and its Annexures the provisions of the main body of this Exploration Right shall govern.

**2.** **Granting of the Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.Subject to the Act, the Regulations and the terms and conditions set forth herein, the Grantor hereby grants to the Holder and the Holder hereby accepts this Exploration Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.As of the Effective Date, the Participating Interest of each Holder Party is as follows: Not applicable.

**3.** **Exploration Area**

The Exploration Area shall comprise the farms set out on **Annexure "A"** hereto situated in the districts of Welkom, Ventersburg, Theunissen, Odendaalsrus and Winburg, measuring 42 239, 0250 hectares in extent, which Exploration Area is described in detail on the attached plan marked **Annexure "A1"**.

**REGISTRATION DIVISION: WELKOM VENTERSBURG THEUNISSEN ODENDAALSRUS & WINBURG**

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**4.** **Exclusive Right to Apply for a Production Right in Respect of Discoveries**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.Subject to the provisions of Section 83 of the Act read together with Regulation 34, the Holder has the exclusive right to apply for and be granted a production right in respect of each Commercial Discovery within the Exploration Area: Provided that any such application for a Production Right has been lodged prior to the expiry date of this Exploration Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.Any area falling within the Exploration Area in respect of which a production right has been granted to the Holder shall, as from the date of the grant of such production right, be severed from and no longer form part of the Exploration Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.In the case of the severance referred to in 4.2 above, the Holder shall, simultaneous with the granting and or issuing of the new Production Right, submit the necessary amended sketch plan reflecting the new size and extent of the Exploration Area, and the necessary endorsements shall be reflected on the Grantor's records.

**5.** **Rights and Obligations of the Holder**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.Without derogating from the Holder's rights and obligations in terms of this Exploration Right and Section 5 of the Act, the Holder shall have the right to own and dispose of any and all facilities, materials, equipment, supplies and consumables purchased and/or leased by the Holder for the conduct of Exploration Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.Without derogating from the Holder's other obligations in terms of this Exploration Right, the Holder shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1.diligently conduct Exploration Operations in accordance with the Exploration Work Programme;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2.comply with the Environmental Management Programme; 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;5.2.3.pay all amounts due and payable to the Grantor in terms of the Act, the Regulations, this Exploration Right and the Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.Although the Grantor undertakes to make a reasonable attempt to resolve disputes, the Holder acknowledges that the Grantor cannot guarantee that the Holder will at all times be in a position to exercise within the Exploration Area the rights granted in terms of this Exploration Right, and that in certain instances conflicts may arise with other rights holders and or interested and affected parties within or around the Exploration Area. In the event of such conflicts the holder will endeavour to resolve these conflict with such right holders and or interested parties..

**6.** **Commencement, Duration and Renewal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.This Exploration Right will commence on the Effective Date and, unless abandoned, cancelled, relinquished, suspended, terminated, extended or renewed in accordance herewith, will continue to be in force and effect for the Initial Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.In line with section 82 (2) of the Act the Holder shall, within 90 (ninety) days from the, Effective Date or such extended period as the Minister may authorise, commence Exploration Operations in accordance with the Exploration Work Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.In terms of section 81, read with regulation 33, of the Act the applicant has the right to, prior the end of the Initial Period or any Renewal Period, apply to the Minister for the renewal of the Exploration Right.

**7.** **Exploration Fees**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.The Holder shall pay in terms Section 82(2)(e) of the Act read together with Regulation 76 the prescribed exploration fees to the Agency as from the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.All amounts due and payable by the Holder in terms of this Exploration Right shall be paid into the Agency's nominated Bank account, namely

Bank Name: ABSA

Branch: Parow

Branch Code: 502110

Account name: Petroleum Agency SA

Account number: 405 103 0832

Account type: Current Account

or such other bank account as the Grantor may from time to time notify the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.Should the Holder fail to pay any amount due and payable hereunder on the due date, the Holder shall be in *mora debitoris* and shall be liable for and pay interest on such late payment at the rate prescribed in terms of Section 80 of the Public Finance Management Act, 1999 (Act No. 1 of 1999). Interest on outstanding amounts shall be calculated from the due date for payment hereunder to the date of actual payment.

**8.** **Technical Advisory Committee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.The parties shall by written notice to each other, within 30 (thirty) days from the Effective Date establish a committee (herein referred to as the Technical Advisory Committee) which shall consist of the following members:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1.a chairman and one other person appointed by the Grantor; 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;8.1.2.two persons appointed by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.The membership of the Technical Advisory Committee may be enlarged to include one member for each Holder Party. The Grantor may in such instances enlarge its membership of the Technical Advisory Committee to equal that of the Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.The Grantor and each Holder Party may appoint by written notice to each other, alternate members to act in the place of their representatives. When an alternate member acts in the place of any member he or she shall be deemed to have the powers and shall perform the duties of such member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.Without prejudice to and without derogating from the rights and obligations of the Holder in terms of this Exploration Right, the Act and the Regulations the functions of the Technical Advisory Committee are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1.to review the progress of all Exploration Operations, to monitor the implementation thereof and to provide the Holder with advice and recommendations with regard 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;8.4.2.to review any proposed amendments to the approved Annual Exploration Work Programme submitted by the Holder to the Grantor in terms of Clause 15, to monitor the implementation thereof, and to provide the Holder with advice and recommendations with regard 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;8.4.3.to review any Appraisal Programme submitted by the Holder to the Grantor in terms of Clause 16, to monitor the implementation thereof, and to provide the Holder with advice and recommendations with regard 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;8.4.4.to review any proposed Development Plan and provide the Holder with advice and recommendations with regard 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;8.4.5.to review the accounting of expenditure and the maintenance of operating records and reports kept in connection with Exploration Operations, to monitor the implementation thereof, and to provide the Holder with advice and recommendations with regard thereto; 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;8.4.6.to offer advice to the Holder in order to promote the efficient carrying out of Exploration Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.The Technical Advisory Committee shall meet as and when required but not less than once annually unless otherwise agreed between the members in which case, a 30 (thirty) days notice must be given by the Party requesting such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6.All meetings shall be held in Cape Town, South Africa or such other place as unanimously agreed to by the members of the Technical Advisory Committee. Except in respect of meetings of the Technical Advisory Committee held in Cape Town, the Holder shall be responsible for all costs and expenses related to attendance by the Grantor and its representatives at such meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7.The Grantor shall propose for the Holder's in-put, an Agenda for the meeting which Agenda takes into consideration *inter alia* the holder's work programme obligations. The aforesaid Agenda and the copies of all the necessary documentation and presentation materials shall be exchanged between the parties not less than 7 (seven) days prior to the meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8.Three members of the Technical Advisory Committee shall form a quorum: Provided that at least one representative of the Grantor, is present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9.Any member of the Technical Advisory Committee shall have the right to bring any expert or advisor to a meeting of the Technical Advisory Committee for the purpose of advising on any matter requiring an expert's advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10.The proceedings and processes of the Technical Advisory Committee are without prejudice to the rights and obligations of the Grantor or the Grantor Group or the Holder or the Holder Group.

**9.** **Cancellation or Suspension of the Exploration Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.It is recorded that in terms of Section 90 of the Act, the Minister is empowered to cancel or suspend this Exploration Right in the circumstances set out in and in accordance with the provisions of Section 47 of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.Should this Exploration Right be cancelled or suspended in accordance with Section 90 of the Act, the Holder shall not be absolved from those obligations and liabilities that have accrued up to the date of such cancellation or suspension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.Any cancellation or suspension of this Exploration Right by the Grantor shall be without prejudice to the Grantor's other rights under this Exploration Right or the Applicable Laws and the Grantor reserves the right to claim damages, claim specific performance or claim any other alternative relief.

**10.** **Relinquishment and Voluntary Abandonment of the Exploration Area**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.The Holder shall relinquish portions of the Exploration Area as set out in and in accordance with the attached **Annexure C.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.Subject to Clause 10.4, the Holder may, upon giving the Grantor not less than 180 (one hundred and eighty) days prior written notice, abandon this Exploration Right by relinquishing the entire Exploration Area to the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.Subject to Clause 10.4, the Holder may by giving the Grantor not less than 90 (ninety) days prior written notice relinquish any portion of the Exploration Area. Any portion of the Exploration Area relinquished by the Holder shall comply with the requirements set out in Annexure C and shall be accompanied by a sketch plan depicting the area remaining or still covered by the exploration right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.Any relinquishment in terms of Clauses 10.1 and 10.3 or abandonment in terms of Clause 10.2 shall not absolve the Holder of any cost, liability, obligation or expense incurred by the Holder in respect of this Exploration Right prior to the date of such abandonment or relinquishment and the Holder shall remain liable therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.From the date that the Holder has abandoned this Exploration Right or has relinquished a portion or portions of the Exploration Area, the Grantor shall be entitled to grant to any other person any of the rights and permits referred to in the Act in, on, or under the portion or portions so abandoned or relinquished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.Upon abandonment of this Exploration Right, the Holder shall within 3 (three) months furnish the Grantor with a copy of all the Required Data that has not been previously furnished to the Grantor, and all copies of the Existing Data or a certificate to the effect that all such copies have been destroyed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.Upon relinquishment of any portion of the Exploration Area, the Holder shall within 3 (three) months furnish the Grantor with a copy of all the Required Data that has not been previously furnished to the Grantor in respect of those portions of the Exploration Area that have been so relinquished. The Holder shall thereafter be entitled to freely use, distribute or dispose of such Required Data in respect of the Exploration Area so abandoned or relinquished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8.Prior to abandonment of this Exploration Right or any relinquishment, the Holder shall apply for a closure certificate in terms of Section 43 of the Act.

**11.** **Rights to Minerals and Petroleum**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.Except as provided for herein in respect of petroleum, this Exploration Right confers no rights to the Grantor in respect of any mineral (as defined in the Act) discovered in the Exploration Area. Should the Holder discover any mineral during Exploration Operations, the Holder shall forthwith report such discovery to the Grantor who shall assume the ownership of the said discovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.The Holder may thereafter, subject to any prior third party rights, apply for the right to explore, prospect for, produce and/or mine such mineral.

**12.** **Examination of the Exploration Area**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.It is recorded that in terms of Sections 91 and 92 of the Act, the Minister or any person duly authorised by the Minister may enter upon the Exploration Area and conduct routine inspections and exercise such related powers as set out in the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.Upon request by the Grantor, in the event of Exploration Operations being conducted offshore, the Holder shall provide free transportation during normal business hours between the Holder's onshore base and the offshore facilities as well as free accommodation on the offshore facilities to the Minister or any person duly authorised by him or her.

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**13.** **Records and Samples**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.Without derogating from the Holder's responsibilities in terms of Section 88 of the Act read together with the Regulations, the Holder shall keep current and accurate records of all Acquired Data acquired during the Exploration Operations. Such Acquired Data shall be kept in such form as is reasonably required and approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.Samples shall be taken by the Holder at regular intervals in accordance with the Applicable Laws and Good International Petroleum Industry Practices. The Holder shall, at its own cost, save and correctly label a representative portion of all Samples in such form as reasonably required and approved by the Grantor. A portion of Samples of any petroleum or other minerals of potential value recovered by the Holder during Exploration Operations shall be forwarded promptly to the Grantor at the Holder's expense. All Samples acquired by the Holder for its own purpose shall be made available for inspection by the Grantor at all reasonable times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.Prior to the Holder discarding any Samples, the Holder shall obtain the Grantor's written consent. Should the Grantor require such Samples, the Holder shall, at its cost, deliver to the Grantor the Samples so requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.The Holder may export Existing Data, Acquired Data and Samples for processing or laboratory examination or analysis by the Holder or by third parties or for storage outside of the Republic of South Africa: Provided that representative Samples (equivalent in quality) and copies of the Acquired Data (equivalent in quality) have first been delivered to the Grantor and: Provided further that the Grantor's prior written approval has been obtained by the Holder. Such approval shall not unreasonably be withheld or refused by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5.The Holder shall deliver to the Grantor, at the Holder's expense, digital and where appropriate, paper copies of all Acquired Data and representative Samples as soon as they are acquired or prepared. In this respect the Holder shall adhere to the Grantor's guidelines with regard to the form, substance and format for preparing and storing the Acquired Data and Samples.

**14.** **Reports**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.The Holder shall keep the Grantor advised of all material developments taking place during the course of Exploration Operations and shall furnish the Grantor with Required Data and such other reports and information as the Grantor may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.Without derogating from the generality of Clause 14.1 or the Holder's reporting obligations in terms of Section 88 of the Act, within 30 (thirty) days from the end of each Quarter and within 60 (sixty) days from the end of each

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Year, the Holder shall submit to the Grantor a written report reflecting, for the relevant Quarter or Year, respectively, the progress of Exploration Operations, including the summary of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1.the numbers of local persons (classified by race and gender) and expatriate persons employed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2.the work done and expenditure on Exploration Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3.the site and depth of every well drilled or being drilled and the formations penetrated and particulars regarding any occurrence of petroleum and/or any mineral of potential value encountered; 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;14.2.4.a statement of compliance with the Environmental Management Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3.The Grantor and Holder shall each own the Required Data in its possession, whether original or a copy, and after the termination, cancellation or abandonment of this Exploration Right each Party may freely use, sell, distribute, trade, license or otherwise disclose or dispose of such data

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4.None of the terms of this Exploration Right shall be construed as requiring the Holder to disclose any of its or its Affiliates' proprietary technology licensed by the Holder or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.Within 3 (three) months from the termination and/or cancellation and/or abandonment of this Exploration Right, the Holder shall furnish the Grantor with a copy of all the Acquired Data not already in the possession of the Grantor and shall return all the Existing Data to the Grantor.

**15.** **Annual Exploration Work Programme and Budget**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.Not later than 60 (sixty) days from the Effective Date, the Holder shall submit and present to the Grantor for approval an Annual Exploration Work Programme for the current Year. Thereafter, at least 90 (ninety) days prior to the commencement of each succeeding Year, the Holder shall submit and present to the Grantor for review and approval its proposed Annual Exploration Work Programme for the next Year or part thereof, as the case may be, in accordance with this Clause and such approval shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.The proposed Annual Exploration Work Programme shall set forth the Exploration Operations, inclusive of the Minimum Work Obligations, to be carried out during the next Year or part thereof, as the case may be, together with a budget of the expected cost thereof. The Annual Exploration Work Programme shall be consistent with and be part and parcel of the Exploration Work Programme attached hereto as **Annexure B.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.Within 30 (thirty) days from receipt of the proposed Annual Exploration Work Programme, the Grantor shall either, notify the Holder in writing of its approval of the proposed Annual Exploration Work Programme or, reject the same and propose amendments thereto specifying the reasons for such amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4.Should the Grantor fail to respond with regard to the proposed Annual Exploration Work Programme within 30 (thirty) days from its receipt thereof, the proposed Annual Exploration Work Programme shall be deemed approved by the Grantor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5.The Grantor may, within 10 (ten) days from its receipt of the proposed Annual Exploration Work Programme, request the Holder to supply such further information relating to the proposed Annual Exploration Work Programme as may be reasonably required by the Grantor for its review and approval thereof. The Holder, to the extent reasonably possible and practical, shall comply in writing with such request within 10 (ten) days from the date of receipt of such request from the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6.If the Grantor proposes any amendments to the proposed Annual Exploration Work Programme as described above, the Parties shall meet within 15 (fifteen) days from the date on which the proposed amendments are notified to the Holder to discuss the proposed amendments. The proposed amendments to the Annual Exploration Work Programme shall be consistent with the Exploration Work Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.Following review and consideration of any amendments proposed by the Grantor, the Holder shall within 15 (fifteen) days from the meeting required in terms of Clause 15.6 re-submit to the Grantor for approval a revised Annual Exploration Work Programme, and shall give effect to all amendments to the proposed Annual Exploration Work Programme reasonably requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8.Should any amendments to the Exploration Work Programme be required, such shall be subject to the provisions of Section 102 of the Act which requires the approval of the Minister.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9.Any dispute which cannot be resolved between the Parties with regard to the Annual Exploration Work Programme shall be resolved in accordance with Clause 37.

**16.** **Discoveries and Testing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.If a Discovery is made by the Holder in the Exploration Area, the Holder shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1.promptly inform the Grantor by written notice of the fact that such Discovery has been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.2.cause tests to be made on such Discovery within a reasonable period of time consistent with Good International Petroleum Industry Practices in order to determine whether such Discovery is or could be a Commercial Discovery and is worthy of appraisal. Prior to testing each Discovery, the Holder shall give written notice to the Grantor of the tests the Holder intends to conduct and the Grantor shall have the right to witness such tests. If such tests are being conducted offshore, then the Holder shall, free of charge, provide access, transportation to and from the offshore facilities, including reasonable accommodation facilities on the installation, for not more than 4 (four) of the Grantor's representatives who will witness the tests; 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;16.1.3.within 60 (sixty) days from having completed and received the results of tests under Clause 16.1.2, furnish the Grantor with a copy of the test results report containing a summary of the Holder's interpretation of such tests and Holder's conclusion as to whether or not such Discovery could be a Commercial Discovery and is worthy of appraisal (the 'Discovery Report').

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2.All tests and measurements conducted by the Holder for the purpose of establishing the potential existence of a Commercial Discovery shall be carried out in accordance with Good International Petroleum Industry Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3.If the Holder considers, after providing the Grantor with the Discovery Report that the Discovery could be commercial, then the Holder shall forthwith take such reasonable steps to appraise the Discovery and submit a proposed Appraisal Programme to the Grantor for its approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4.Within 30 (thirty) days from receipt of the proposed Appraisal Programme, the Grantor shall either notify the Holder in writing of its approval of the proposed Appraisal Programme or reject the same and propose amendments thereto specifying the reasons for such amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.Should the Grantor fail to respond to the proposed Appraisal Programme within 30 (thirty) days from its receipt thereof, the proposed Appraisal Programme shall be deemed approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6.The Grantor may, within 10 (ten) days from its receipt of the proposed Appraisal Programme, request the Holder to supply such further information relating to the proposed Appraisal Programme as may be reasonably required by the Grantor for its review and approval thereof. The Holder, to the extent reasonably possible and practical, shall comply in writing with such request within 10 (ten) days from the date of receipt of such request from the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7.If the Grantor proposes any amendments to the proposed Appraisal Programme as described above, the Parties shall meet within 15 (fifteen) days from the date on which the proposed amendments are notified to the Holder to discuss the proposed amendments. The proposed amendments to the Appraisal Programme shall be consistent with the objectives of appraising the discovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8.Following review and consideration of any amendments proposed by the Grantor, the Holder shall within 15 (fifteen) days from the meeting required in terms of Clause 16.7, re-submit to the Grantor for approval a revised Appraisal Programme to give effect to all amendments to the proposed Appraisal Programme reasonably requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9.Any dispute which cannot otherwise be resolved between the Parties with regard to the Appraisal Programme shall be resolved between the Parties in accordance with Clause 37.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10.In the event that operational imperatives (including the immediate availability of a seismic vessel or drilling rig) require such approval to the Appraisal Programme in a shorter timeframe than specified in Clauses 16.4 to 16.8, then the Parties shall use all of their reasonable commercial efforts to complete the approval process in accordance with the aforesaid procedures within shorter timeframe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11.Within 180 (one hundred eighty) days from the completion of such Appraisal Operations, or such further period as agreed between the Parties in writing, the Holder shall deliver to the Grantor (a) a full report containing particulars of the results of such Appraisal Operations, including particulars and preliminary estimates relating to the location and depth of petroleum bearing structures, the composition of petroleum, the estimated recoverable reserves of

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petroleum, and the estimated daily production potential of petroleum, (b) a declaration by the Holder as to whether or not the Discovery is a Commercial Discovery, and (c) an election by the Holder as to whether or not the Holder intends to develop such Discovery (the 'Appraisal Report').

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12.If the Holder notifies the Grantor in the Appraisal Report that the Discovery is a Commercial Discovery, then within180 (one hundred eighty) days from the date of receipt of the Appraisal Report by the Grantor, the Holder shall submit a proposed Development Plan for such Discovery to the Grantor for its approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13.Within 60 (sixty) days from receipt of the proposed Development Plan, the Grantor shall either notify the Holder in writing of its approval of the proposed Development Plan or reject the same and propose amendments thereto specifying the reasons for such amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14.Should the Grantor fail to so act on the proposed Development Plan within 60 (sixty) days from its receipt thereof, the proposed Development Plan shall be deemed approved by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.15.The Grantor may, within 20 (twenty) days from its receipt of the proposed Development Plan, request the Holder to supply such further information relating to the proposed Development Plan as may be reasonably required by the Grantor for review and approval thereof. The Holder, to the extent reasonably possible and practical, shall comply in writing with such request within 20 (twenty) days from the date of receipt of such request from the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.16.If the Grantor proposes any amendments to the proposed Development Plan as described above, the Parties shall meet within 30 (thirty) days from the date on which the proposed amendments are notified to the Holder to discuss the proposed amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.17.Following review and consideration of any amendments proposed by the Grantor, the Holder shall within 30 (thirty) days from the meeting, required in terms of Clause 16.16, re-submit to the Grantor for approval a revised Development Plan to give effect to all amendments to the proposed Development Plan reasonably requested by the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.18.Should any amendments to the Exploration Work Programme be required, such shall be subject to the provisions of Section 102 of the Act which requires the approval of the Minister.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.19.Any dispute which cannot otherwise be resolved between the Parties with regard to the Development Plan shall be resolved in accordance with Clause 37.

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**17.** **Manner of Conducting Exploration Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.Without derogating from the provisions of the Applicable Laws and Environmental Management Programme, the Holder shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.execute all Exploration Operations in a proper and workmanlike manner in accordance with Good International Petroleum Industry Practices and, without prejudice to the generality of the foregoing, the Holder shall take all reasonable and practical steps in order to prevent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.1.the escape or waste of petroleum discovered in the Exploration Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.2.damage to petroleum-bearing strata;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.3.the entrance of uncontrolled water through wells to petroleum-bearing strata;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.4.the escape of petroleum into any waters or aquifer in the vicinity of the Exploration Area; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1.5.pollution of the terrestrial or marine environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2.promptly inform the Grantor and all other relevant Government departments of the occurrence of any event described in Clauses 17.1.1 to 17.1.5 inclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3.take all actions required under the Environmental Management Programme and all Applicable Laws with respect to any of the incidents referred to Clauses 17.1.1 to 17.1.5 inclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.4.promptly notify, upon the completion of any operation or activity within the Exploration Area, the Grantor and all relevant Government departments of any obstruction, including the location, nature and extent thereof, that remains in the Exploration Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.5.not flare any petroleum without the Grantor's prior written approval; 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;17.1.6.promptly give notices to relevant Government departments, including interested and affected parties, with regard to all Exploration Operations which may be reasonably expected to interfere with the rights of other users of the Exploration Area and shall take all reasonable steps to minimise interference with the rights of other users.

**18.** **Existing Data**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.It is recorded that no Existing Data has been made available to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.Any Existing Data or information relating to the Exploration Area that the Grantor has available or which the Grantor acquires independent of the Holder will be made available for inspection, copying and use by the Holder:

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Provided that the Holder shall pay the Grantor commercial costs incurred in copying and preparing such data or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.Upon terms and conditions to be agreed, the Grantor may assist the Holder in resolving technical problems relating to the Existing Data. Such assistance shall not include interpretation of the Existing Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4.Ownership in all Existing Data vests in the Grantor and is of considerable commercial value to the Grantor. On expiry, cancellation, termination or abandonment of this Exploration Right or relinquishment of the exploration area, all Existing Data in the Holder's possession, shall forthwith, at the Holder's cost, be returned to the Grantor. Alternatively the Holder shall submit to the Grantor a certificate to the effect that all such copies have been destroyed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5.While every effort has been made to verify the quality and accuracy of the Existing Data, the Grantor Group shall not be liable for any error or inaccuracy contained within the Existing Data or any damages of whatsoever nature suffered by the Holder arising from any such error or inaccuracy in the Existing Data.

**19.** **Environmental Protection and Financial Provision**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.The Holder shall conduct all Exploration Operations in accordance with the approved Environment Management Programme, record of decisions and addendums thereto and in a manner that facilitates the protection and conservation of the natural resources of the Republic of South Africa and of the environment in general. The Environmental Management Programme and the Record of Decision are Attached hereto as **Annexure F.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.The financial provision made available by the applicant herein as required by section 41 (1) read with regulation 53(d) and must in accordance with Section 41 (3) be annually assessed and increased to the satisfaction of the Minister.

**20.** **Social and Labour Matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.Without derogating from the Holder's responsibilities in terms of the Applicable Laws including Section 2(d) and Section 2(f) of the Act, the Holder undertakes to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.1.make a sincere attempt before or during the period of this Right to find a suitable partner, who is a Historically Disadvantaged South African to take up shareholding/equity in line with Sections 80(2) and 100 of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.2.employ Historically Disadvantaged South Africans having appropriate qualifications and experience, and or alternatively implement a programme for the future recruitment of such, taking into account the Holder's operational requirements under this Exploration Right;

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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;20.1.3.implement programmes for the training and skills development of Historically Disadvantaged South Africans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.4.give preference, in procuring for purposes of use in the exploration operations, the equipment, machinery, materials, instruments, supplies and accessories (all referred to collectively as 'Goods') manufactured or produced by Historically Disadvantaged South Africans: Provided that such Goods are competitive with like goods manufactured or produced or available outside the Republic of South Africa in respect of cost, quantity and quality and that such Goods can be made available at the time when and the place where required by the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.5.use contractors and/or sub-contractors who are Historically Disadvantaged South Africans and whose services and standards are competitive with those available outside the Republic of South Africa in terms of price, quality, expertise, and: Provided further that such services can be performed at the place and within the time required by the Holder; 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;20.1.6.pay the amounts set out and specified in the attached Annexure D to the Upstream Training Trust, to be used by the Trust for the training, education, and obtaining of practical experience for historically disadvantaged South Africans and other South Africans in the manner determined by the trustees.

**21.** **Tax**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1.The Holder's tax obligations and benefits shall be as provided for in the Income Tax Act and other Applicable Laws of the Republic of South Africa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2.Except to the extent exempted or as directed otherwise, the Holder shall for the duration of this Exploration Right be liable for income tax payments to the State on the annual taxable income derived by it from the sale of Petroleum (referred to in the Income Tax Act as "natural oil") or any other product of Exploration Operations in accordance with the provisions of the Income Tax Act, including any amendments and regulations issued pursuant thereto.

**22.** **Financial Records and Audits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1.Without derogating from the Holder's responsibilities under the Applicable Laws, the Holder shall keep in the Republic of South Africa financial records and accounts of all transactions pertaining to this Exploration Right, in accordance with generally accepted accounting practices as applicable in the Republic of South Africa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2.At the Grantor's request, such financial records and accounts or copies thereof shall be promptly provided to the Grantor. The Grantor or its duly appointed representative shall, at Grantor's own cost, have the right to audit the Holder's financial records and accounts.

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**23.** **Customs duties**

Without derogating from the provisions of Clause 29.1, and except to the extent exempted or as directed otherwise, in respect of all goods imported into the Republic of South Africa for purposes of conducting Exploration Operations, the Holder shall comply with the provisions of the Customs and Excise Act, 1964 (Act No. 91 of 1964), including any regulations issued pursuant thereto.

**24.** **Exchange Control**

Without derogating from the provisions of Clause 29.1 and except to the extent exempted or as directed otherwise, the Holder undertakes to comply with the provisions of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933), including any regulations issued pursuant thereto.

**25.** **Indemnity and insurance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.The Holder shall for the duration of this Exploration Right take all the necessary and reasonable steps to conduct the Exploration Operations in a manner that safeguards and protects persons from injury or death and prevents damage or destruction of property and the environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2.The Holder hereby undertakes to defend, hold harmless and indemnify the Grantor Group from and against any and all claims, costs, charges, liabilities and expenses, including reasonable legal costs (hereinafter referred to as 'Claims'), that may be instituted against or suffered by any member of the Grantor Group as a result of injury or death to any person or damage or destruction to any property and/or the environment arising from the negligent and/or unlawful acts and/or omissions of the Holder Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.The Holder shall within 10 (ten) days of the effective date obtain and maintain sufficient insurance during the term of this Exploration Right to address the risks related to Exploration Operations and support the indemnities given by the Holder under this Exploration Right. Without derogating from the Holder's responsibilities, the Holder, with the prior written approval of the Grantor, may implement a policy of self insurance in respect of certain risks related to Exploration Operations. Without derogating from the generality of the foregoing such insurance shall specifically provide for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.1.all risks in respect of any property or equipment used in connection with Exploration Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.2.pollution liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.3.third-party liability and public liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.4.removal of wrecks and cleaning-up operations pursuant to an accident in the course of or as a result of Exploration Operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.5.the Holder's liability to its contractors, employees, consultants and agents engaged in Exploration Operations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3.6.any other risk of whatever nature as is customary to insure against in the international petroleum industry or in accordance with the Good International Petroleum Industry Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.4.Without derogating from the Holder's responsibilities in terms of the Applicable Laws or this Exploration Right, the amounts, type and terms of the insurance referred to in Clause 25.3 above shall be determined in consultation with the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.5.The Grantor shall have the right to be included as an additional insured party on such insurances and have all rights of subrogation against the Grantor Group waived, but in each case only with respect to and to the extent of the liabilities and obligations expressly agreed to be assumed by the Holder under this Exploration Right.

**26.** **Health and Safety**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1.The Holder undertakes while conducting Exploration Operations to comply with the Applicable Laws in respect of all health and safety matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.2.Where any emergency or incident arising from Exploration Operations causes or has the potential to cause death and/or injury to persons or damage to and/or destruction of property and/or the environment, the Holder shall in consultation with the responsible Government departments take such action as may be prescribed under the Applicable Laws or where not prescribed take such prudent and necessary action in accordance with the Good International Petroleum Industry Practices.

**27.** **Confidentiality and Public Announcements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.The Acquired Data and the Existing Data together with all programmes, tests, analyses, results, books, statements, records, returns, plans, information and correspondence between the Parties which the Holder is or may from time to time be required to furnish under the provisions of this Exploration Right (hereinafter collectively referred to as 'Confidential Information') shall be treated as confidential by the Holder and shall not be disclosed by the Holder to any person without the prior written consent of the Grantor, except that the Grantor's consent shall not be required in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.1.where the Holder is required by law, regulation, decree, rule or order applicable to the Holder or its Affiliates to disclose such Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.2.where the Holder discloses Confidential Information to any Affiliate of any Holder Party: Provided that such Holder Party informs its Affiliates of the confidential nature of information so disclosed and guarantees the adherence of such Affiliates to the confidentiality restrictions as set out in this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.3.to the extent that such Confidential Information has to be produced at legal proceedings or because an order from a court of competent jurisdiction has compelled the production of such Confidential Information;

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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;27.1.4.where the Holder discloses Confidential Information to prospective or actual contractors, consultants, advisors, and attorneys employed by any Holder Party or its Affiliates where disclosure of such Confidential Information is essential to such person's services for such Holder Party: Provided that, prior to disclosure, such contractor, consultant, advisor, lender, and attorney provides the Holder Party with a written undertaking of confidentiality that is not less restrictive than the confidentiality restrictions set out in this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.5.where the Holder discloses Confidential Information to a bank or other financial institution to the extent appropriate to Holder arranging for funding: Provided that, prior to disclosure, such person provides the Holder Party with a written undertaking of confidentiality that is not less restrictive than the confidentiality restrictions set out in this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.6.to the extent that such Confidential Information must be disclosed pursuant to any rules or requirements of any recognised stock exchange on which the securities of any Holder Party or its Affiliates are or are to be listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.7.where the Holder discloses Confidential Information to a *bona fide* prospective assignee or assignees to whom the Holder's or any of the Holder Party's rights and obligations under this Exploration Right are proposed to be assigned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.8.to the extent that any Confidential Information, through no fault of the Holder, has become or becomes part of public domain; 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;27.1.9.where the Holder discloses Confidential Information as part of an exchange with third parties for the geological, geophysical, geochemical and any other technical or scientific data, reports and information (either raw, processed or interpreted) pertaining to their petroleum operations in respect of other acreage within the Republic and subject to their execution of suitable confidentiality arrangements. In this event the Grantor shall be apprised of the extent of the proposed exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2.Except as may be required by laws, rules, regulations or decrees (including that of a stock exchange) applicable to the Holder or its Affiliates, the Holder shall make no public announcement with regard to this Exploration Right or any matter related thereto, unless the Holder has furnished the Grantor with a copy of the intended public announcement and the Grantor has given its prior written approval, which approval shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3.If the Grantor desires to issue any press release, media statement, or interview on any petroleum Discovery, estimated petroleum reserves, and/or any well drilling operations, tests, and/or results relating to the Exploration Operations hereunder, the Grantor shall give written notice thereof to the Holder at least three (3) days in advance to enable the Holder to comply with disclosure rules and requirements imposed on any Holder Party or its

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Affiliates by the laws, regulations or rules of the relevant countries in which such Holder Party is incorporated or doing business or in which the securities of such Holder Party or its Affiliates are or are to be listed or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.4.When a public announcement or statement becomes required by law or necessary or desirable because of impending danger to or loss of life, damage to property or pollution as a result of Operations, either Party is authorised to issue and make such announcement or statement without prior notice or prior approval of the other Party where such prior notice and approval is impractical. In such a case the Party making the announcement or statement shall promptly furnish the other Party with a copy of such announcement or statement.

**28.** **Cession and Sub-contracting**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1.It is recorded that this Exploration Right may not be ceded, transferred, let, sub-let, assigned, alienated or otherwise disposed of without the written consent of the Minister in terms of Section 11 of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.The Holder may from time to time appoint one or more independent sub-contractors to carry out any portion of the Annual Exploration Work Programme and/or Exploration Work Programme: Provided that the Holder shall always remain liable to the Grantor for the compliance with and observance of its obligations in terms of this Exploration Right.

**29.** **Law and Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.1.The Holder shall comply with all Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2.Without derogating from the provisions of Section 4 of the Act, this Exploration Right shall be governed, construed and interpreted in accordance with the laws of the Republic of South Africa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.It is recorded that the Grantor and the Holder are not partners nor is it the intention of the Parties to create a partnership and that Exploration Operations to be carried out in terms of this Exploration Right are at the sole cost, risk and expense of the Holder.

**30.** **Obligations of the Grantor**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1.Subject to the Applicable Laws, the Grantor undertakes to do and perform all acts and things which are or may be required to be done or performed to give full effect to this Exploration Right in accordance with its provisions, and guarantees that the terms and conditions of this Exploration Right will not be altered without prior written consent of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.Terms relating to fiscal stability, will be established through contracts between the Holder and the Minister of Finance as provided for in the Income Tax Act and the Mineral and Petroleum Resources Royalty (Act No. 28 of 2008).

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**31.** **State Option**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1.Subject to the obligations of the Grantor in clause 31.1 the State has the option, within 30 (thirty) days from the Effective Date of any Production Right granted to the Holder over any part of the Exploration Area in respect of which application for a Production Right is made to acquire up to a 10 (ten) percent participating interest in such Production Right ("State Option").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2.Should the State elect to exercise the State Option it must notify the Holder in writing within 30 (thirty) days of the Effective Date that it has elected to exercise the State Option and of the percentage of participating interest in the Production Right, up to a maximum of 10 (ten) percent that it has elected to exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.3.The State shall upon the exercise of the option under clause 30.1 above become a member of the holder group in the Production Right and shall also become a party to any joint operating agreement relating to the block in which the Production Right is granted. The terms of the joint operating agreement shall neither limit the State in the exercise of any of its rights and obligations as Grantor nor impose additional obligations on the State merely because the State is also a member of the Holder Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.4.In terms of this clause 31 the State shall pay its Participating Interest costs and expenses related to the Production Work Programme in the Production Right the State shall not be liable for any prior costs and expenses relating to any previous Exploration or Appraisal Operations conducted within the production area prior to the Effective Date of such a Production Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.5.The State shall have the right at any time, on giving written notice to the other parties in the relevant joint operating agreement, to assign all or any part of its participant interest to any technically and/or financially competent third party. Such assignment by the State will not require the consent of the Holder or any Holder party under the relevant joint operating agreement. The assignment shall be made always subject to Clause 31 and shall become effective after the assignee consents to and executes the then current joint operating agreement applicable to the area of the subject Production Right.

**32.** **Vis Major**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.1.Any act, cause, thing or event outside the control of the Parties, including acts of God, war, insurrection, civil commotion, blockade, strikes, flood, storm, lightning, fire or earthquake which prevents any of the Parties from fulfilling its obligations under this Exploration Right shall be regarded as a *vis major* event and any such failure on the part of any of the Parties as a consequence of the *vis major* event shall not constitute a breach hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.2.Financial inability, ordinary hardship and inconvenience on the part of the Holder, howsoever caused or arising, shall not be regarded as a *vis major* event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.3.If the Holder by reason of a *vis major* event as contemplated in Clause 32.1 is prevented from fulfilling its obligations or enjoying its rights under this Exploration Right, the Holder shall in writing promptly notify the Grantor thereof and the Holder shall take all reasonable steps to investigate and remove the cause thereof. The Holder

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shall promptly notify the Grantor in writing as soon as the *vis major event* ends and the Holder shall as soon as is reasonably practicable thereafter resume the Exploration Work Programme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.4.Upon the Holder notifying the Grantor of the end of the *vis major,* the duration of this Exploration Right shall automatically be extended for the equivalent period of time that the Holder was prevented from fulfilling its obligations or enjoying its rights under this Exploration Right by reason of such *vis major.* The Holder's notice of the end of the vis major must declare the Holder's intention to resume the Exploration Work Programme and state the length of the extension time. Such extension period shall be calculated from the date that the Holder first notified the Grantor in writing of the *vis major* event until the date that the *vis major* event has ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.5.In the event of the automatic extension envisaged in clause 32.4 above, the Holder shall present the original copy of this Exploration Right for an endorsement reflecting such extension and the Grantor shall make the same endorsement on the office copy.

**33.** **Amendments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.1.It is recorded that in terms of Section 102 of the Act, this Exploration Right may not be amended or varied without the written consent of the Director General (being the delegate of the Minister).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.2.The aforesaid amendment or variation shall be in writing and effective once the aforesaid consent has been given.

**34.** **Unitisation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1.In the event that the rights held by the holders under two or more exploration rights and/or mining leases and/or production rights and/or prospecting leases or sub-leases extend over different areas which geologically form part of the same petroleum-bearing area within the Republic of South Africa, the Grantor may by notice in writing require the holders of such rights to prepare a proposal for the production of that petroleum-bearing area as a unit. Such proposal shall be submitted to the Grantor within the period specified in the said notice which shall not be less than 90 (ninety) days. Where such petroleum-bearing area extends over an area over which the State's rights have not been alienated then the Grantor shall be deemed to be the holder of the rights over such area and be entitled to a proportionate share of benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.2.The unitisation proposal referred to in Clause 34.1 shall maximise the exploration and/or production for the benefit of all holders of interests in the unitised area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.3.If no unitisation proposal is submitted within the period specified in the notice or such further period as the Grantor may approve, or if the proposal submitted is not acceptable to the Grantor, then the Grantor may appoint a committee of experts to advise the Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.4.The committee so appointed shall, after having considered any representation made by the Holder, submit a unitisation proposal to the Grantor as soon as is practical.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.5.The Grantor may, if satisfied that the unitisation proposal submitted in terms of Clause 34.2. or Clause 34.4. is objectively practical, fair and equitable to all parties concerned, confirm such proposal, and it shall be binding upon the relevant Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.6.If the Holder fails to carry out any provision of the proposal the Minister may by notice in writing require the Holder to do so within the period specified in the notice and if the Holder still fails to comply with such notice the Minister may, in terms of Section 90 of the Act, cancel this Exploration Right.

**35.** **Special Provisions Relating to Gas Discovery**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.1.If the Holder discovers petroleum, the economic development of which the Holder believes can only be accomplished if Gas produced as the primary or secondary product is sold commercially, then the Holder shall have the option, exercisable upon written notice to the Grantor at the time that the Holder makes an application to the Grantor for a production right, to have the production right suspended for a period of up to 5 (five) years (hereinafter referred to as the "Gas Market Development Period") commencing from the effective date of the Production Right during which period the Holder shall conduct studies to determine whether the Gas can be commercially produced. In such circumstances, the Development Plan and proposed production programme submitted in support of the application for the Production Right shall be deemed to be preliminary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.2.Not less than 90 (ninety) days prior to the expiry of the Gas Market Development Period the Holder shall advise the Grantor in writing either that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.2.1.the Gas can be commercially developed and produced, in which case the Holder shall proceed with implementation of the Development Plan and proposed production programme, duly amended if necessary, 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;35.2.2.the Gas cannot be commercially developed and produced, in which case the Holder shall be deemed to have abandoned the Production Right with effect from 90 (ninety) days after Grantor has been.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.2.3.failure to give notice in the timely manner shall be construed as notice that the gas cannot be developed and produced commercially.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.3.The grant of any extension to the Gas Market Development Period shall be at the sole discretion of Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.4.The activities envisaged to be relevant during a Gas Market Development Period do not include Exploration Operations.

**36.** **Waiver or Lenience**

Any failure by either the Grantor or the Holder to exercise any of the rights that they have whether in terms of this Exploration Right, the Act or the Regulations, or any lenience granted by them in terms thereof shall not constitute a waiver of such rights or a variation to the terms and conditions of this Exploration Right.

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**37.** **Dispute Resolution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.1.Should any difference or dispute arise between the Parties to this Exploration Right as to the validity, duration, termination, intention or meaning of any of the terms and conditions hereof, or as to any other matter arising from this Exploration Right (each a 'dispute'), then the Parties shall make every reasonable effort to resolve the dispute on its merits by negotiation in good faith and shall, for that purpose, attend at least one meeting with each other. Such negotiations shall take place within 21 (twenty one) days of the dispute arising, unless the Parties otherwise agree in writing, and shall endure for no longer than seven (7) days from the date of commencement or such extended period as the Parties may agree in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.2.If the Parties are unable to resolve the dispute in question despite compliance with Clause 37.1, then the dispute may at the instance of either Party be referred to and finally settled by arbitration in accordance with the Rules of the Arbitration Act No. 42 of 1965, except as modified in this Clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.3.The venue for the arbitration shall be Cape Town, Republic of South Africa or such other place in the Republic of South Africa as may be agreed between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.4.Notwithstanding the referral of such dispute to arbitration, the Parties shall, to the extent possible, proceed with the carrying out of their respective obligations under this Exploration Right, unless such obligations are directly in dispute: Provided that the foregoing undertaking shall be without prejudice to other rights and remedies available to either Party at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.5.There shall be three (3) arbitrators: the claimant and the respondent shall each select one (1) in accordance with the rules of the Arbitration Act No. 42 of 1965, and the two named arbitrators shall nominate the third arbitrator within 30 (thirty) days from the nomination of the second arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.6.The Grantor and the Holder shall within 3 (three) days of the arbitration award accept the arbitrator's award, failing which either would be entitled to institute legal proceedings in a competent Court of Law.

**38.** **Costs and Value Added Tax**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.1.All taxes, levies, stamp duties, transfer costs, transfer duties and registration costs arising directly or indirectly out of or related to this Exploration Right shall be for the account of and promptly paid by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.2.All amounts due and payable by the Holder in terms of this Exploration Right, the Act and Regulations are exclusive of statutory value added tax. Statutory value added tax at the prevailing rate in accordance with the Value Added Tax Act (Act No. 89 of 1991), except as provided for by the terms of that Act, shall be added to all applicable amounts due and payable by the Holder

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**39.** **Entire Agreement**

Subject to the Act, the Regulations, Applicable Laws, this Exploration Right and the Annexures attached hereto (those Annexures being and forming an integral part of this Exploration Right) contain the entire and sole agreement between the parties and supersede all prior negotiations, representations, understandings, agreements and communications of whatsoever nature between the Parties with respect to such Exploration Area, whether oral or written, express or implied.

**40.** **Severability**

Any provision within this Exploration Right which is not enforceable or which contravenes the Applicable Laws of the Republic of South Africa shall be severed from this Exploration Right and be of no force or effect without prejudice to the other provisions of this Exploration Right which shall remain in force and effect.

**41.** ***Domicilia Citandi et Executandi***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.1.All notices, requests and reports provided for herein shall be in writing and shall be delivered either by hand to an authorised representative of the receiving Party, or sent by courier or telefax to the addresses below in the Republic of South Africa: Provided that if given by telefax a copy thereof shall then be sent immediately by prepaid registered mail:

**If to the Grantor:**

---

| | |
|:---|:---|
| <u>Minister of Mining</u> |  |
| Physical address: | Postal address: |
| Mineralia Centre | Private Bag X59 |
| Cnr Visagie & Andries Streets | PRETORIA |
| PRETORIA | 0001 |
| Tel number: +27 (0)12 317 9000 | Fax number: +27 (0)12 322 3416 |

---

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Ref No: 12/3/1/94/1

**And copy to the Agency:**

South African Agency for the Promotion of Petroleum Exploration and Exploitation (Proprietary) Limited

---

| | |
|:---|:---|
| <u>Attention:</u> ***<u>Chief Executive Officer</u>*** |  |
| Physical address: | Postal address: |
| Petroleum House | P.O Box 1174 |
| 151 Frans Conradie | PAROW |
| PAROW<br>Western Cape | 7499 |
| Tel number: +27 (0)21 938 3500 | Fax number: +27 (0)21 938 3553 |

---

**If to the Holder:**

---

| | |
|:---|:---|
| <u>Attention:</u> ***<u>Mr Peter Price</u>*** |  |
| Physical address: | Postal address: |
| 38 Fouche Terrace | 38 Fouche Terrace |
| Morning Hill | Morning Hill |
| Bedfordview. 2007 | Bedfordview, 2007 |
| Tel number: +27(0) 11 616 7219 | Fax number: +27(0) 11 616 7219 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.2.Each Party, including the Agency, may change its address to a different address in the Republic: Provided that it gives the other Parties at least 15 (fifteen) days prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.3.All notices, requests and reports sent by prepaid registered post shall be deemed received by addressee within five (5) days of dispatch and all notices, requests and reports sent by telefax during ordinary business hours shall be deemed to have been received within 12 (twelve) hours of transmission or if transmitted outside ordinary business hours, then on the next business day. Those delivered by hand or sent by courier shall be deemed to have been received at the time of actual delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.4.Each Party also chooses the physical address specified above as its *domicilium citandi et executandi for* all purposes under this Exploration Right, including service of process.

**42.** **Registration**

It is recorded that in terms of Section 82 of the Act, the Holder must lodge this Exploration Right for registration at the Mineral and Petroleum Titles Registration Office within 30 (thirty) days from the Effective Date and, in the event of each renewal of this Exploration Right, within 30 (thirty) days of such renewal.

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Thus done and signed at Bellville on the 26<sup>th</sup> day of May in the year 2009 in the presence of the undersigned witnesses:

---

| | |
|:---|:---|
| **AS WITNESS:**<br>![img176456928_1.jpg](img176456928_1.jpg) |  |
|  | ![img176456928_2.jpg](img176456928_2.jpg) |
| **AS WITNESS:**<br>![img176456928_3.jpg](img176456928_3.jpg) |  |
|  | ![img176456928_4.jpg](img176456928_4.jpg)<br>For and on behalf of the **<u>Holder</u>** |
|  | **Quod Attestor**<br>![img176456928_5.jpg](img176456928_5.jpg) |

---

Page 35 of 35

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## Exhibit 10.25

**Exhibit 10.25**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.**

(EXECUTION VERSION – 17/06/2022)

**LIQUIFIED NATURAL GAS SUPPLY AGREEMENT**

between

**TETRA4 PROPRIETARY LIMITED**

Registration 2005/012157/07

(the **"Company"**)

having its head office situated at

1 Bompas Road

Dunkeld West

Johannesburg

2196

and

**CONSOL GLASS PROPRIETARY LIMITED**

Registration Number: 2006/034503/07

(the **"Customer"**)

having its head office situated at

Consol House

Osborn Rd

Johannesburg

1400

------

**TABLE OF CONTENTS**

1. DEFINITIONS AND INTERPRETATION 3

2. EXCLUSIVITY 8

3. TERM 8

4. CONDITIONS PRECEDENT 8

5. CUSTOMER UNDERTAKING 9

6. REPLACEMENT ARRANGEMENTS 9

7. PRICE AND PRICE ADJUSTMENT 10

8. OPTION TO PURCHASE 11

9. INITIAL PERIOD LNG EQUIPMENT AND LNG PRODUCTION FACILITY 11

10. SCHEDULED MAINTENANCE 11

11. LNG QUANTITY AND MEASUREMENT. 12

12. DELIVERY AND ACCESS 13

13. RISK AND OWNERSHIP IN LNG 13

14. CUSTOMER-SIDE LNG EQUIPMENT 13

15. INSURANCE 15

16. NEW INSTALLATIONS, RELOCATIONS AND MODIFICATIONS TO LNG EQUIPMENT. 15

17. PAYMENT 16

18. DISPUTED AMOUNTS 16

19. SUPPLY UNDERTAKING 16

20. INITIAL PERIOD TEMPORARY MEASURES 17

21. LIABILITY AND INDEMNITY 18

22. SAFETY 18

23. FORCE MAJEURE 19

24. MITIGATION OF LOSSES 21

25. WILLFUL MISCONDUCT AND/OR GROSS NEGLIGENCE 21

26. BREACH 22

27. TERMINATION 22

28. CONSEQUENCES OF TERMINATION 23

29. EXPERT DETERMINATION 25

30. DISPUTE RESOLUTION 26

31. LEGAL PROCEEDINGS AND GOVERNING LAW 27

32. INTELLECTUAL PROPERTY AND CONFIDENTIALITY 27

33. NOTICES AND LEGAL PROCESS 27

34. ASSIGNMENT 28

35. GENERAL 28

------

**PREAMBLE:**

A.The Company carries on the business of natural gas production and supplies liquified natural gas (LNG) and related LNG equipment.

B.The Customer is desirous of receiving LNG from the Company to supplement its energy requirements for its business operations.

C.In order to satisfy the Customer's requirements for the LNG, the Company will have to install various Company owned LNG equipment at the Customer's premises.

D.The Parties accordingly wish to enter into this formal Agreement to regulate the Parties responsibilities, rights and obligations in respect of the sale and purchase of LNG and the supply by the Company of the Customer-side LNG Equipment and matters ancillary thereto.

**THE PARTIES AGREE AS FOLLOWS:**

**1.** **DEFINITIONS AND INTERPRETATION**

1.1.Unless the context requires otherwise, in this Agreement the following terms have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1.**"Agreement"** means this liquified natural gas supply agreement including its Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2.**"Business Days"** means a Day other than a Saturday, a Sunday or a designated public holiday in South Africa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3.**"Cap Price"** has the meaning ascribed to it in clause 7.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.4.**"CoC"** means a gas certificate of compliance issued in accordance with the OHS Act";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.5.**"Commencement Date"** means the date of fulfilment (or waiver, if applicable) of the last of the Conditions Precedent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.6.**"Company"** has the meaning given on the cover page of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.7.**"Conditions Precedent"** means the conditions precedent set out in clause 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.8.**"Contract Year"** means each successive twelve (12) calendar Month period during the Term, commencing on the Commencement Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.9.**"Customer"** has the meaning given on the cover page of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.10.**"Customer Termination Payment"** means the agreed amount payable by the Customer to the Company when contemplated in this Agreement, equal to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.10.1.if the Ownership Transfer Date has not occurred, the Settlement Value as at the applicable Month in which the Termination Date occurs, plus the equivalent of 9 (nine) Months of sales of the ToP Volume at the prevailing LNG Price; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.10.2.if the Ownership Transfer Date has occurred, the equivalent of 9 (nine) Months of sales of the ToP Volume at the prevailing LNG Price, which amount represents the genuine, fair and reasonable, pre-estimate of the losses that are likely to be suffered by the Company as a result of the early termination of the Agreement in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.11.**"Customer-side Infrastructure Price"** has the meaning given to it in clause 7.5;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.12.**"Customer-side LNG Equipment"** means the Fixed Storage Tanks and all Spare Parts, pipelines, pumps, cryogenic storage, vaporization, heating, pressure regulation and associated equipment, designed, installed and maintained by the Company (its affiliates and/or contractors) on the Customer Site (or other agreed storage sites) up to the agreed battery limits, which enables the storage and processing of LNG during the Permanent Period, as described in Schedule 5 *(LNG Equipment and Spares);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.13.**"Customer-side LNG Equipment Approvals"** means all consents, permits, authorizations and approvals, as may be required from the applicable responsible authorities under applicable laws for the construction, installation, operation and maintenance of the Customer-side LNG Equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.14.**"Customer-side LNG Equipment Commissioning Date"** means the date on which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.14.1.all Customer-side LNG Equipment Approvals have been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.14.2.the Customer-side LNG Equipment has been constructed and commissioned at the Customer Site; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.14.3.the Customer-side LNG Equipment is deemed ready (in accordance with all applicable manufacturers' guidelines, applicable laws, approvals, codes, specifications and standards) to begin accepting and processing the LNG into the natural gas form (and specification) as required by the Customer,

as notified by the Company to the Customer in terms of clause 14.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.15.**"Customer Site"** means the Customer's designated site to which the LNG shall be delivered in terms of this Agreement, as more fully described in Schedule 2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.16.**"Delivery Point"** means the physical point at the Customer Site where the LNG is delivered by the Company's delivery vehicles to the Customer, namely the pump inlet flexible hose which is connected to the Temporary Storage Tank during the Initial Period and the Fixed Storage Tanks during the Permanent Period, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.17.**"Day"** means a period of twenty-four (24) consecutive hours commencing at 00:00 hours on each day and ending at 23:59 hours on the following day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.18.**"End Date"** means the date falling on the 8<sup>th</sup> (eight) anniversary of the Commencement Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.19.**"Fixed Storage Tanks"** means the 2 (two) proposed 220 m<sup>3</sup> liquified natural gas storage tanks to be financed, procured, constructed and installed by the Company (or its contractors) at the Customer Site in terms of the provisions of this Agreement. An estimate of the costs of the Fixed Storage Tanks, as at the Signature Date, are included in Schedule 7 *(Proposed Fixed Storage Tanks)* hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.20.**"Floor Price"** has the meaning ascribed to it in clause 7.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.21.**"Independent Expert"** means a person appointed to act as an independent expert in accordance with clause 29;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.22.**"Initial Period"** means the period of the Term commencing on the Commencement Date and ending on the Customer-side LNG Facilities Commissioning Date, which period is anticipated to be no longer than [\*\*\*];

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.23.**"Initial Period LNG Equipment"** means the Temporary Storage Tank and other LNG storage, ambient vaporisers and balance of plant equipment up to the agreed battery limits, as more fully described in Schedule 5 *(LNG Equipment and Spares)* (but excluding the Fixed Storage Tanks), to be installed by the Company as envisaged in clause 4.1.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.24.**"LNG"** means the liquified natural gas produced by the LNG Production Facility, which meets the Specification and is made available to the Customer in accordance with the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.25.**"LNG Price"** has the meaning given to that term in clause 7.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.26.**"LNG Production Facility"** means the Company's midstream LNG production facility situated in Virginia, Free State Province, including all plant, materials, equipment and associated infrastructure owned and operated by the Company (its affiliates and/or contractors) used to produce and store the LNG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.27.**"LNG Production Date"** means the date on which the LNG Production Facility:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.27.1.has been constructed and commissioned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.27.2.is deemed ready (in accordance with all applicable manufacturers' guidelines, applicable laws, codes, specifications and standards) to enter into commercial operation producing LNG at least in accordance with the Specification,

which date is anticipated to fall between [\*\*\*] and shall be notified to the Customer in terms of clause 4.1.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.28.**"Longstop Date"** means 30<sup>th</sup> October 2022 (or such later date as the Parties may from time to time agree in writing), provided that the date shall automatically be extended by 60 (sixty) days), if, in the Company's reasonable opinion as notified to the Customer in writing, any unfulfilled Condition Precedent will likely be fulfilled within a period of 60 (sixty) days after such initial date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.29.**"LPG Gate"** or **"Gate"** means the Maximum Retail Price for Liquefied Petroleum Gas (MRGP) applicable to the Western Cape (Zone 1A), as published by the Department of Mineral Resources and Energy on a Monthly basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.30.**"Metering System"** has the meaning given to it in clause 11.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.31.**"Month"** means a period of time beginning at 12:00 a.m. on the first Day of a calendar month and ending at 12:00 a.m. on the first Day of the next succeeding calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.32.**"Monthly Contracted Volume"** means [\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.33.**"OHS Act"** means the Occupational Health and Safety Act no. 85 of 1993 (as amended) and the Regulations issued under it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.34.**"Option to Purchase"** means the option to purchase the Customer-side LNG Equipment granted by the Company to the Customer in terms of clause 8.1 (which for avoidance of doubt, may only be exercised after [\*\*\*] after the Commencement Date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.35.**"Ownership Transfer Date"** means the date on which ownership of the Customer-side LNG Equipment passes from the Company (or its relevant affiliates) to the Customer under the provisions of this Agreement;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.36.**"Permanent Period"** means the period of the Term commencing on the Customer-side LNG Equipment Commissioning Date and ending on the End Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.37.**"Plant Equipment Maintenance Agreement"** means the plant equipment maintenance agreement to be entered into by the Company (or its nominee), as contemplated in clause 14.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.38.**"Person"** means any individual, partnership, corporation, association, trust, Governmental Authority, or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.39.**"Reasonable Efforts"** means for any action required to be made, attempted or taken by a Party under this Agreement, the efforts that a prudent Person would undertake to protect its own interests, including commercial interests, taking into account the conditions affecting such action, including the amount of notice to act, recognition of the need to act, the duration and type of the action, the competitive environment in which such action occurs, and the projected benefit, cost and risk to the Party required to take such action; provided that a Party shall not be required to expend funds in excess of amounts that it determines in its sole discretion to be appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.40.**"Reasonable and Prudent Operator"** means a Person seeking in good faith to perform its contractual obligations with all reasonable skill, care and diligence of a standard which would customarily be expected of a reasonably prudent and experienced independent contractor or manager under the same or similar conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.41.**"Replacement Arrangements"** has the meaning given to it in clause 6.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.42.**"Scheduled Maintenance"** means planned operations to maintain, repair, modify or replace the LNG Production Facility [and Customer-side LNG Equipment];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.43.**"Settlement Value"** means the amount determined with reference to the "settlement value" column in the tables A and B in Schedule 6 *(Infrastructure Price and Settlement Value)* as at the applicable Month in which the amount becomes due in terms of the provisions of this Agreement. For avoidance of doubt:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.43.1.Month 1 in table A is the first Month in the Initial Period and Month 1 in table B is the first Month in the Permanent Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.43.2.when the Settlement Amount is to be determined during the Permanent Period, it is calculated by adding the amounts from the applicable Months in table A and B together;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.44.**"Signature Date"** means the date on which this Agreement is signed by the last Party signing in time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.45.**"Spare Parts"** means the spare or replacement parts for the operation and use of the Initial Period LNG Equipment and Customer-side LNG Equipment, as contemplated in clause 14.5. The first agreed inventory list is included at the bottom of the table in Schedule 5 *(LNG Equipment and Spares);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.46.**"Specification"** means the specifications to which the LNG is required to meet for the purposes of this Agreement, as set out in Schedule 1 *(Specification of LNG);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.47.**"Take or Pay"** or **"ToP"** means the ToP Volume per Month, being the quantity of LNG that Customer is obliged to take delivery of and pay for, or pay for if made available for delivery to the Customer but not taken, during each Month;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.48.**"Temporary Storage Tank"** means the proposed 60 m<sup>3</sup> liquified natural gas storage tank to be financed, procured, constructed and installed by the Company (or its contractors) at the Customer Site in terms of the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.49.**"Termination Date"** means the date upon which this Agreement has been terminated in accordance with its provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.50.**"Term"** has the meaning ascribed to it in clause 3.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.51.**"ToP Volume"** means [\*\*\*] GJ per Month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.52.**"VAT"** means value added tax imposed under the VAT Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.53.**"VAT Act"** means the Value Added Tax Act, 1991.

1.2.Unless the context requires otherwise, references in this Agreement to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1.this Agreement, a document or instrument is a reference to this Agreement, the document or the instrument as amended, varied, novated or supplemented from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2.one gender includes a reference to the other genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3.any Party or any person includes that Party's or that person's successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4.a **"person"** includes a natural person, firm, company, corporation, body corporate, government, state or agency of the state, local or municipal authority or governmental body or any joint venture, association or partnership in each case (whether or not having separate legal personality);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5.**"include"** and **"including"** are deemed to be qualified by the additional term "without limitation". The use of the words include and including followed by a specific example or examples shall not be construed as limiting the meaning of the general wording preceding it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6.**"law"** is construed as any applicable law including common law, statute, constitution, decree, judgment, treaty, regulation, directive, by-law, order or any other measure of any government, local government, statutory or regulatory body or court, having the force of law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7.**"clause"** and **"Schedule"** refer to clauses of and Schedules to this Agreement.

1.3.In this Agreement, words in the singular include the plural and words in the plural include the singular.

1.4.Any substantive provision, conferring rights or imposing obligations on a Party and appearing in any of the definitions in this clause 1 or elsewhere in this Agreement, shall be given effect to as if it were a substantive provision in the body of the Agreement.

1.5.Words and expressions defined in any clause shall, unless the application of any such word or expression is specifically limited to that clause, bear the meaning assigned to such word or expression throughout this Agreement.

1.6.A reference to any statutory enactment shall be construed as a reference to that enactment as at the Signature Date and as amended or substituted from time to time.

1.7.Unless specifically otherwise provided, any number of days prescribed shall be determined by excluding the first and including the last day or, where the last day falls on a day that is not a business day, the next succeeding business day.

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1.8.If the due date for performance of any obligation in terms of this Agreement is a day which is not a Business Day then (unless otherwise stipulated) the due date for performance of the relevant obligation shall be the immediately preceding Business Day.

1.9.Where figures are referred to in numerals and in words, and there is any conflict between the two, the words shall prevail, unless the context indicates a contrary intention.

1.10.No provision of this Agreement shall (unless otherwise stipulated) constitute a stipulation for the benefit of any person *(stipulatio alteri)* who is not a Party to this Agreement.

**2.** **EXCLUSIVITY**

2.1.Subject to the clauses 2,2 and 2.3 below, during the Term, the Customer shall, on an exclusive basis, only purchase LNG from the Company up to the Monthly Contracted Volume, being its stated requirements of liquified natural gas for the Customer Site as at the Signature Date.

2.2.If the Company is unable to supply LNG under this Agreement to meet the Customer's demand at the Customer Site, then the Customer will be entitled to source liquified natural gas from an alternative supplier to make up any shortfall on a short-term basis.

2.3.If, after the 18<sup>th</sup> (eighteen) Month after the Commencement Date, the Customer's demand for liquified natural gas at the Customer Site is on a consistent basis higher than the Monthly Contracted Volume, then Customer may source liquified natural gas from an alternative supplier to make up any shortfall above the volume supplied by the Company to the Customer Site. In this regard, the Customer shall only be entitled to store and process such additional liquified natural gas sourced from a third-party supplier in the Customer-side LNG Equipment after the Ownership Transfer Date.

**3.** **TERM**

3.1.Subject to clause 4, this Agreement shall commence on the Commencement Date and shall, unless terminated in accordance with its provisions, continue in full force and effect until the End Date (such period being the **"Term"**)**.**

3.2.The Term shall be extended on a day-for-day basis for all periods during which an affected Party is unable to perform its obligations pursuant to a Force Majeure Event and is relieved of its obligation to so perform in accordance with clause 23.

**4.** **CONDITIONS PRECEDENT**

4.1.The entire Agreement (save for clauses 1, 4, 29 and 35 **("Signature Date Provisions")** which shall be of full force and effect from the Signature Date) is subject to fulfilment (or waiver, if applicable) of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1.the Company issuing a written notice to the Customer confirming that the LNG Production Date has been reached and confirming the date on which it was reached, which notice shall be accepted in writing by the Customer; provided that any dispute between the Parties regarding the LNG Production Date shall be referred to an Independent Expert for determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2.the Company completing the detailed engineering for the Customer-side LNG Equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3.the Customer signing off on the detailed engineering for the Customer-side LNG Equipment proposed by the Company in terms of clause 4.1.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.4.subject to the relevant consents, permits, authorisations and/or approvals contemplated in 4.1.5 being obtained, the Company financing, procuring, constructing and installing (as may be applicable) the Initial Period LNG Equipment at the Customer Site, to the satisfaction of the Customer (acting reasonably); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.5.the Customer obtaining all consents, permits, authorisations and approvals, as may be required from the applicable responsible authorities under applicable laws for the construction, installation, operation and maintenance of the Initial Period LNG Equipment, to the satisfaction of the Company (acting reasonably).

4.2.The Conditions Precedent are expressed for the benefit of both Parties and may only waived (in whole or in part) by agreement in writing between the Parties on or before the Longstop Date.

4.3.The Parties shall use their respective Reasonable Efforts and will co-operate in good faith with each other where required in order to procure the fulfilment (or waiver, if applicable) of the Conditions Precedent as soon as reasonably possible after the Signature Date.

4.4.If not all of the Conditions Precedent are fulfilled or waived before the Longstop Date, then (save for the Signature Date Provisions which shall continue to be of full force and effect) this Agreement will never come into force or effect and the Parties will be restored as nearly as possible to the positions in which they would have been had this Agreement not been entered into and, in such event, no Party shall have any claim against any other Party by virtue of the provisions of this Agreement, except for such claims as may arise out of the breach of the Signature Date Provisions.

**5.** **CUSTOMER UNDERTAKING**

5.1.Subject to clause 4, the Customer undertakes, using Reasonable Efforts, to obtain all Customer-side LNG Equipment Approvals, to the satisfaction of the Company (acting reasonably), as soon as possible after the Commencement Date.

5.2.The costs of preparation, submission and obtaining of the Customer-side LNG Equipment Approvals shall be borne by the Customer.

5.3.The Company shall, where it is able to do so, cooperate in good faith with and provide reasonable assistance to the Customer and its agents regarding the completion and submission of all applications for the Customer-side LNG Equipment Approvals.

**6.** **REPLACEMENT ARRANGEMENTS**

6.1.In the event that not all of the Customer-side LNG Equipment Approvals are obtained within 12 (twelve) Months from the Commencement Date, or such later date as the Parties from time to time agree in writing, then either Party may request the other Party in writing to commence negotiations, using Reasonable Efforts and acting in good faith, on amendments to this Agreement in order that the Company may continue supplying and the Customer continue purchasing LNG using suitable alternative supply and storage arrangements on a basis that the overall balance of rights, obligations, risks and rewards between the Parties shall remain the same in all material respects, and the Parties are in no better or worse position than they would have been in, during the Permanent Period (**"Replacement Arrangements"**).

6.2.In seeking to agree on the Replacement Arrangements, the Parties shall be required to demonstrate to each other that they have explored suitable alternative staging areas and/or storage options in the Belville area using the available budget from the increased tariff per GJ in the Customer-side Infrastructure Price that would have been applicable during the Permanent Period.

6.3.If the Parties are unable to agree upon the Replacement Arrangements by no later than 60 (sixty) days (or such longer date as the Parties may agree in writing) from the date on which either Party delivered the written request referred to in clause 6, then either Party may elect to terminate this Agreement in terms of clause 27.2.2.

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**7.** **PRICE AND PRICE ADJUSTMENT**

7.1.The price for LNG sold under this Agreement (**"LNG Price"**) shall be [\*\*\*] per Gigajoule, subject to the provisions of this clause 5.

7.2.The Parties expressly agree that during the Term that the LNG Price for LNG shall never have a price lower than [\*\*\*] (**"Floor Price"**) and shall not exceed a price of [\*\*\*] (**"Cap Price"**)**.**

7.3.Effective on third anniversary after the Commencement Date and every anniversary thereafter, the LNG Price for LNG shall be adjusted.

7.4.The adjusted price for LNG (the **"Adjusted Price"**) shall be calculated in accordance with the following:

Where GATE X = as the price of LPG Gate in Month (x), where x = 1 is the first Month in which LNG is delivered

Where AVERAGE YEAR GATE Y = as the arithmetic average in year y of Gate is over the previous 12 Months

[\*\*\*]

7.5.Subject to clause 8, and in addition to the LNG Price, the Customer shall, unless amended by agreement between the Parties in writing from time to time, be liable to the Company for the Monthly payments (**"Customer-side Infrastructure Price"**) relating to the Initial Period LNG Equipment and Customer-side LNG Equipment in accordance with Schedule 6 *(Infrastructure Price and Settlement Value).*

7.6.For avoidance of doubt, the Customer-side Infrastructure Price shall be determined as with reference to table A and table B in Schedule 6, follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.1.Month 1 in table A is the first Month in the Initial Period and Month 1 in table B is the first Month in the Permanent Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2.during the Initial Period, the Customer-side Infrastructure Price shall be equal to the amount relating to the applicable Month in table A only; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3.during the Permanent Period, the Customer-side Infrastructure Price shall be equal to the sum of the amounts relating to the applicable Month in both table A and table B.

7.7.Upon payment in full of all of the Monthly payments of the Customer-side Infrastructure Price, ownership of the Customer-side LNG Equipment will pass to the Customer on *voetstoots* basis.

7.8.All prices quoted exclude VAT.

**8.** **OPTION TO PURCHASE**

8.1.After the [\*\*\*] after the Commencement Date, the Customer shall have an option to purchase the Customer-side LNG Equipment by making payment of the Settlement Value.

8.2.If the Customer elects to exercise the Option to Purchase in accordance with clause 8.1, it must do so by giving 60 (sixty) Days prior written notice to the Company.

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8.3.Ownership of the Customer-side LNG Equipment shall transfer to the Customer following receipt of payment by the Customer of the Settlement Value and release by the Company's financiers of all security interests held over the Customer-side LNG Equipment, which date shall be confirmed in writing by the Company to the Customer. The sale shall be *voetstoots.*

8.4.Upon completion of the transfer of ownership of the Customer-side LNG Equipment to the Customer as aforesaid, all provisions in this Agreement relating to the Company's duty to own and maintain the Customer-side LNG Equipment shall no longer apply *(pro non scripto).*

8.5.Upon the Customer exercising the Option to Purchase, if it is still in force, the Plant Maintenance Agreement shall be ceded and assigned by the Company to the Customer and shall continue to govern the maintenance services in respect of the Customer-side LNG Equipment, until it is terminated in accordance with its provisions.

**9.** **INITIAL PERIOD LNG EQUIPMENT AND LNG PRODUCTION FACILITY**

9.1.The Company shall finance, construct, install, commission, own, operate and maintain, at no cost to Customer, the Initial Period LNG Equipment and LNG Production Facility.

9.2.Ownership of the Initial Period LNG Equipment and the LNG Production Facility shall at all times reside with the Company (or its relevant affiliates).

**10.** **SCHEDULED MAINTENANCE**

10.1.If Scheduled Maintenance is required by the Company, which would reduce the amount of LNG that the Company has available in the supply chain for the Customer, defined as Total System Safety Stock in Schedule 4, then the Company shall notify the Customer in writing and on reasonable notice, of no less than sixty {60) Days, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1.the Days or partial Days on which it proposes to conduct such Scheduled Maintenance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2.the anticipated reduction in Total System Safety Stock as a result of the Scheduled Maintenance,

provided that the Company shall be entitled to no more than 14 (fourteen) consecutive Days for Scheduled Maintenance during any Contract Year, or no more than 14 (fourteen) Days of Scheduled Maintenance in the aggregate during any one Contract Year and the available stock in the supply chain for the Customer shall not drop below 35% of the Total System Safety Stock during the Initial Period and 60% of the Total System Safety Stock during the Permanent Period.

10.2.Within 10 (ten) Days after the delivery of a notice pursuant to clause 10.1, the Parties shall use Reasonable Efforts to coordinate and agree on the periods of Scheduled Maintenance for the next Contract Year.

10.3.The Company may not reduce its obligations to make available LNG under this clause 10, unless the Company has actually performed Scheduled Maintenance and then only to the extent of the duration of such Scheduled Maintenance.

10.4.The Company should, in consultation with the Customer, provide a twelve (12) Month forecast of its anticipated maintenance schedule for a rolling twelve (12) Month period, updated on a quarterly basis.

**11.** **LNG QUANTITY AND MEASUREMENT**

11.1.The Company agrees to sell, and the Customer agrees to purchase the Monthly Contracted Volume of LNG and the Customer shall take or pay for if not taken the ToP Volume for the purpose of supplying the Customer Site over the Term.

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11.2.The Company shall, at its cost, cause the LNG to be delivered via road tanker to the Customer at the Customer Site under a delivery / collection notice.

11.3.The quantity of LNG supplied to the Customer Site under this Agreement shall be determined through the metering system specified in Schedule 3 *(Metering System)* (the **"Metering System"**).

11.4.Metering System readings shall be provided in kilograms and converted to a price per GJ (1 GJ = 20 kg and/or S0GJ/MT) based on the pricing mechanism as described in clause 5 which will be invoiced to the Customer on a Monthly basis.

11.5.The Customer is required to verify the Metering System readings at the time of delivery. No dispute regarding quantity delivered will be entertained where such physical verification by the Customer did not occur.

11.6.The data registered by the Metering System shall be *prima facie* evidence of the volume of LNG supplied to the Customer.

11.7.If, at any time, the accuracy of the Company's Metering System for recording the volume of LNG supplied is in question and the Customer or the Company desires the accuracy to be verified, the Company shall arrange such verification of the Metering System, to be conducted in the presence of the Customer if the Customer so requests.

11.8.Should the verification test prove the relevant Metering System to be accurate within 1.5% either way, no adjustment to the Customer's LNG account shall be made.

11.9.If, however, the inaccuracy of the said meter is found to be more than 1.5% either way, an appropriate adjustment shall be made to the Customer's LNG account retroactively to the average delivery volume of previous 3 (three) Months.

11.10.The cost of all such tests will be borne by the Company, except if the test was called for by the Customer and the accuracy of the Metering System was found to be within the limits of 1.5% either way, in which event the Customer shall bear the reasonable and necessary costs incurred in conducting the test, including the cost of removal and reinstatement of the meter where applicable.

11.11.The Metering System shall at all times be maintained according to the Company's procedures which may be updated from time to time and will be made available to the Customer upon written request.

11.12.The Company shall maintain records of all measurements and tests performed or made hereunder for a period of 2 (two) years, and the Customer, at its request on reasonable notice and its cost, shall be furnished during the 2-year period, such records of measurements and tests relating to deliveries to the Customer.

11.13.Any dispute between the Parties in regard to the Metering System or any provision of this clause 11 will be referred to an Independent Expert for determination.

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**12.** **DELIVERY AND ACCESS**

12.1.The LNG shall be made available to the Customer at the Delivery Point.

12.2.The Customer shall ensure that Company has unimpeded 24 (twenty-four-hour) access to the Delivery Point and other areas of the Customer Site as reasonably required by the Company, for all the Company's delivery and maintenance vehicles and staff.

**13.** **RISK AND OWNERSHIP IN LNG**

13.1.Delivery of the LNG shall be deemed complete at the Delivery Point.

13.2.Risk of loss and title for all quantities of LNG delivered in accordance with this Agreement shall pass from the Company to the Customer, as the LNG passes the Delivery Point. The Customer shall remain liable to pay for the LNG delivered irrespective of transfer of risk of loss and title.

13.3.Subject to the provisions of clause 23, as between the Parties, the Company shall be responsible for any damage or injury caused by LNG until it has been delivered to the Customer at the Delivery Point, and the Customer shall be responsible for any damage or injury caused by LNG on and after it has been delivered to Customer at the Delivery Point.

13.4.The Company shall indemnify, defend and hold the Customer harmless from and against all losses or damages arising from claims, demands, or causes of action by any Person relating to the LNG prior to delivery at the Delivery Point. Except to the extent of the Company's liability for LNG that does not conform to Specification, the Customer shall indemnify, defend and hold the Company harmless from and against all losses or damages arising from claims, demands, or causes of action by any Person relating to the LNG after delivery at the Delivery Point.

**14.** **CUSTOMER-SIDE LNG EQUIPMENT**

14.1.The Customer-side LNG Equipment is required by the Customer for the storage, utilisation and conversion of the LNG to natural gas for consumption by the Customer at the Customer Site, post the Initial Period for the remainder of the Term.

14.2.Subject to all Customer-side LNG Equipment Approvals being obtained, the Company shall finance, procure, construct, install and commission the Customer-side LNG Equipment, to the satisfaction of the Customer (acting reasonably), as soon as feasibly possible.

14.3.The Company shall issue a written notice to the Customer confirming that the Customer-side LNG Equipment Commissioning Date has been reached and confirming the date on which it was reached, which notice shall be accepted in writing by the Customer; provided that any dispute between the Parties regarding the Customer-side LNG Equipment Commissioning Date shall be referred to an Independent Expert for determination.

14.4.The Company (or its nominee) shall enter into a plant equipment maintenance agreement with a service provider approved in writing by the Customer, for the inspection, maintenance and repairs services which are reasonably required in respect of the Customer-side LNG Equipment in order to keep the such equipment at its best efficiency, reliability and regulatory requirements, which services shall commence no later than the Customer-side LNG Equipment Commissioning Date.

14.5.The Company shall procure and maintain the Spare Parts in accordance with the inventory list agreed in Schedule 5 *(LNG Equipment and Spares),* until the earlier of the Ownership Transfer Date or the Termination Date. Such Spare Parts shall be stored at a site owned and managed by the Customer (acting in accordance with the standards of a Reasonable and Prudent Operator), as agreed in writing between the Parties from time to time.

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14.6.The Company shall have unfettered access to the Spare Parts such as to enable it to perform its obligations under this Agreement at all times.

14.7.Ownership of the Customer-side LNG Equipment (including the Spare Parts) shall at all times reside exclusively with the Company (or its relevant affiliates) until the Ownership Transfer Date (or failing such date occurring, indefinitely).

14.8.The Customer shall operate (or procure the operations of) the Customer-side LNG Equipment at all times in accordance with standard of a Reasonable and Prudent Operator. The Customer shall indemnify, defend and hold the Company harmless from and against all losses or damages suffered by the Company, and/or from and against losses and damages arising from claims, demands, or causes of action by any Person, relating to the operations of the Customer-side LNG Equipment.

14.9.Until the earlier of the Ownership Transfer Date or Termination Date, the Company shall procure that the Customer-side LNG Equipment and inventory of Spare Parts are at all times maintained in accordance with standard of a Reasonable and Prudent Operator.

14.10.The Customer-side LNG Equipment shall always be deemed to be movable regardless of whether or not it affixes to immovable property on any owned or leased premises occupied by the Customer (or any other Person).

14.11.Where the Customer leases the Customer Site, the Customer shall immediately inform the Company to that effect and obtain and deliver to the Company a written acknowledgment from the landlord that the landlord is aware that the Customer-side LNG Equipment belongs to the Company and its rights under this Agreement.

14.12.The Customer acknowledges that for reasons of safety the Customer shall not interfere with the Customer-side LNG Equipment or, save in the event that the Customer is permitted to source alternative supplies of liquified natural gas from third party suppliers in the circumstances contemplated in clause 2.2, allow any substances to be placed therein other than LNG supplied by the Company. Furthermore, if for reasons of safety, the Customer-side LNG Equipment needs to be moved, relocated and/or modified the Customer shall notify the Company in writing and shall bear all cost relating thereto. For avoidance of doubt, this clause shall not be applicable after the Ownership Transfer Date.

14.13.The Customer shall immediately notify the Company in writing of any damage to, or any defects, found in the Customer-side LNG Equipment promptly upon becoming aware thereof. The Company will attend to the necessary repairs (or procure a third party to attend to such repairs) acting in accordance with a Reasonable and Prudent Operator

14.14.The Customer shall, at its cost and if requested by the Company, provide the necessary civil works and security measures together with necessary services, including potable water, electricity, steam or other energy/heat source and drainage, all of which shall be in accordance with the Company's specifications. The Customer shall also obtain and maintain all applicable consents, permits, authorisations and approvals, as may be required from the applicable responsible authorities under applicable laws for the construction, installation, operation and maintenance of the Customer-side LNG Equipment, to the satisfaction of the Company (acting reasonably).

14.15.In carrying out their respective responsibilities and obligations under this Agreement, the Parties shall at all times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15.1.act in accordance with the standards of a Reasonable and Prudent Operator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15.2.do so at such times and places as are necessary to achieve all the objectives set out in this Agreement and within the time limits and constraints defined in this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15.3.act honestly and conscientiously;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15.4.ensure that activities carried out by such Party are conducted in a good, safe and workmanlike manner in accordance with this Agreement, all applicable laws, and established modern scientific and construction practices generally accepted and customarily used in good and prudent industry practice.

14.16.The Customer shall not obliterate, remove, or deface any identification marks or notices on any of the Customer-side LNG Equipment or other assets belonging to the Company.

14.17.The Company shall have the exclusive right to maintain the Customer-side LNG Equipment or appoint a third party to attend to the maintenance services, in its discretion.

14.18.The appointment of a third party by the Company to maintain the Customer-side LNG Equipment will not excuse the Company from any of its obligations under the Agreement (and the Company shall be liable for the acts and omissions of such third party).

**15.** **INSURANCE**

15.1.During the Term, each Party shall obtain and maintain insurance for its respective facilities and as required by applicable laws.

15.2.It is expressly agreed that from the Customer-side LNG Equipment Commissioning Date until the earlier of the Ownership Transfer Date or the Termination Date, the Company shall obtain and maintain in place insurance for the Customer-side LNG Equipment.

15.3.The policies of insurance to be obtained and maintained by or for each Party pursuant to this clause 15 shall be obtained and maintained with insurers of sound financial reputation and shall, to the extent available, each contain a waiver of subrogation for claims against the other Party, its affiliates and their directors, officers, employees, agents and insurers.

15.4.If a Party fails to obtain or maintain any policy of insurance required by this clause 15, then the other Party may obtain or maintain such policy of insurance on behalf of the failing Party and the costs such other Party incurs in doing so shall for the purposes of this Agreement be treated as an amount due from the failing Party to the other Party.

**16.** **NEW INSTALLATIONS, RELOCATIONS AND MODIFICATIONS TO LNG EQUIPMENT**

16.1.The Customer shall not move, relocate or modify the Customer-side LNG Equipment. Should the Customer request that the Customer-side LNG Equipment be moved, relocated or modified, the Company, shall do so to meet the Customer's needs and circumstances if the request is reasonable and within the capabilities of the Company, at the cost of the Customer.

16.2.Should the Customer cease to operate upon the Customer Site (the **"original premises"**) and transfer its operations to other premises (the **"new premises"**), the Company shall move the Customer-side LNG Equipment from the original premises and install the same LNG Equipment at the new premises, at the cost and risk of the Customer.

16.3.In the circumstances envisaged by clauses 16.1 and 16.2 above, failing agreement and where the removal, relocation or modification shall not take place, the Customer shall make payment to the Company of the costs incurred by the Company associated with the removal of its LNG Equipment from the original premises and relocation to the Company's premises.

16.4.For avoidance of doubt, the Customer shall during the applicable period, continue to be liable for the ToP Volume payments and shall also be liable for obtaining all and any consents, permits, authorisations and approvals, as may be required from the applicable responsible authorities under applicable laws arising from the move, relocation or modification, in terms of this clause 16.

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**17.** **PAYMENT**

17.1.Payment of the LNG Price and the Customer-side Infrastructure Price shall be made by the Customer to the Company within 30 (thirty) Days of date of statement / invoice, without set-off or deduction for any cause whatsoever.

17.2.Payment shall be made into the bank account specified below.

[\*\*\*]

17.3.If a Party elects to change the bank or account to which payments are to be made, that Party shall notify the other Party in writing at least 30 (thirty) Days before the effective date of such change.

17.4.In the event any payment due hereunder is not made when due, then the payment shall accrue interest on all overdue amounts at a rate equal to 2% above the prime overdraft rate charged by First National Bank until such time that any overdue amounts are paid in full.

17.5.The Company may at its sole discretion suspend the Customer's credit facilities thus placing the account on a cash on delivery (COD) basis, should the Customer make a partial or late payment or non-payment or for any other reasonable ground as determined by the Company. Once the matter has been resolved to the reasonable satisfaction of the Company, the 30-day credit facility may be re-established at the Company's discretion.

17.6.The Company reserves the right, including where the Customer's account is in arrears for a period exceeding 60 days, to place the Customer on "stop supply" until such time as the entire amount outstanding has been paid in full, or if the stop supply was due to non-compliance with legislated or industry standard safety requirements, the non-compliance has been dealt with to the reasonable satisfaction of the Company.

**18.** **DISPUTED AMOUNTS**

18.1.If any portion or all of any amount in any statement is disputed, the Party that is obligated to pay such amount shall pay the total amount, which is not manifest error, set out in each such statement on or before the due date and the dispute shall.

18.2.The Parties shall try to resolve any disputed amount (**"Disputed Amount"**) as quickly as possible, and any adjustments necessary to reconcile the resolution of the Dispute with the amount actually paid shall be paid within 5 (five) Days following resolution of the Disputed Amount.

18.3.In the event such Disputed Amount cannot be resolved amicably through negotiations between the senior management of the Parties, the matter may be referred (by either Party) to an Independent Expert for determination in accordance with clause 29. All such adjustments, whether for over payment or under payment, shall bear interest pursuant to clause 17.4 from the date of over payment or under payment, as the case may be, until the date of payment.

**19.** **SUPPLY UNDERTAKING**

19.1.**Specification**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.1.The Company shall use Reasonable Efforts to ensure that at all times during the Term that the LNG meets the Specification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.2.Should the LNG to be supplied at any time not meet to the Specification, other than due to the Force Majeure Event or breach or other negligent act by the Customer, the Company may either replace or give credit for such LNG to the exclusion of any other remedy available to the Customer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.3.Any alleged default in terms of clause 19.1.1 must be lodged by the Customer with the Company in writing within 48 (forty eight) hours) after the date of attempted delivery of the LNG, failing which such LNG shall be deemed to be duly delivered and the Company shall be excused from all liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.4.The Company shall have the right to refer the matter to an Independent Expert to verify any claim of defect in Specification before proceeding with replacement or credit in terms of clause 19.1.1.

**19.2.** **Volume**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.1.The Company shall use Reasonable Efforts to ensure that in each Month during the Initial Period, the volumes of LNG as specified in Schedule 4 *(Security of Supply* & *Logistics Details)* relating to the Interim Period are maintained such that the Customer is able to receive at least the Monthly Contracted Volume should it require such volume in any given Month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.2.The Company shall use Reasonable Efforts to ensure that in each Month during the Permanent Period, the volumes of LNG as specified in Schedule 4 *(Security of Supply* & *Logistics Details)* relating to the Permanent Period, are maintained such that the Customer is able to receive at least the Monthly Contracted Volume should it require such volume in any given Month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.3.Should the volumes as specified in clauses 19.2.1 or 19.2.2 not be maintained by the Company as required by such clauses, other than due to the Force Majeure Event or breach or other negligent act by the Customer, then the Customer may issue a written notice to the Company to correct the volumes within a period of no longer than 48 (forty eight) hours, failing which the Customer may immediately takes steps to source alternative energy solutions for the Customer Site in replacement of the LNG, and/or exercise its right to terminate this Agreement in terms of clause 27.3.3 or 27.3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.4.Any alleged default in terms of clauses 19.2.1 or 19.2.2 must be lodged by the Customer with the Company in writing as soon as possible and in any event within 48 (forty eight) hours after the Customer became aware of the volume breaches, failing which the Customer shall not be entitled to exercise its right to terminate the Agreement as contemplated in clause 19.2.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.5.The Company shall have the right to refer the matter to an Independent Expert to verify any claim of volume breaches.

**20.** **INITIAL PERIOD TEMPORARY MEASURES**

20.1.During the Initial Period, the Company shall use Reasonable Efforts to put into effect the following temporary measures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.1.install, own, operate and maintain the Initial Period LNG Equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.2.volumes of LNG equivalent to at least [\*\*\*] within the Bellville area. Made up of at least [\*\*\*] onsite at the Customer Site, and the remainder at a staging area within close proximity to the Customer Site;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.3.[\*\*\*] will be in circulation between the LNG Production Facility (in Virginia), the staging area, and the Customer Site at any one time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.4.the Company will have available LNG equivalent to at least [\*\*\*] available for dispatch to the Customer.

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20.2.The objective of the above temporary measures is to ensure that the Customer is provided with at least 5 (five) Days' supply of LNG to mitigate a serious Force Majeure type event at the LNG Production Facility and/or the Company's premises, and when combined with the Customer's other available fuel sources onsite, provide sufficient time to re-establish alternative fuel supply.

**21.** **LIABILITY AND INDEMNITY**

21.1.Neither during the currency of this Agreement nor after its termination shall either Party be liable for any loss, damage or injury sustained by the other Party (or its agents, servants, employees or independent contractors) in respect of death or personal injury of any individual, damage to property, or any third party liabilities and damages, except where otherwise provided in this Agreement, or where such loss, damage or injury results from the gross negligence or intentional act or omission of that Party.

21.2.Neither Party shall be liable for any indirect or consequential loss or damage (including but not limited to loss of production, loss of revenue, loss of profits, loss of customers, loss of contracts, and loss of custom, goodwill and/or reputation) suffered by the other Party, except where such loss or damage results from the gross negligence or intentional act or omission of that Party. The exclusion of liability in this clause 21.2 does not exclude the Customer's liability to make payment of the Customer Termination Payment or Settlement Value, in terms of the provisions of this Agreement.

21.3.The Customer hereby indemnifies the Company against all liability for loss (including economic loss), damage or injury whether direct, indirect or consequential suffered by any person not being a party to this Agreement resulting from a breach of this Agreement by the Customer or the commission of a delict by the Customer or any reckless or negligent act or omission in relation to this Agreement or from any other cause attributable to the Customer's acts or omissions or any damage caused to the Customer's property by the Customer-side LNG Equipment where the cause was due to the Customer's negligent act.

**22.** **SAFETY**

22.1.The Customer shall (as the "employer" defined in terms of the OHS Act) ensure that all its employees who perform duties in terms of this Agreement or handle the LNG and/or operate any Customer-side LNG Equipment shall at all times comply with the provisions the OHS Act. The Customer shall further comply with all safety and security arrangements and precautionary measures as required by law and as may be deemed necessary by the Company in its discretion. The Customer indemnifies the Company against any and all claims against the Customer and/or the Company that may arise out of the failure of the Customer to comply with this clause 22.1.

22.2.The Customer undertakes to ensure that it and/or its employees, contractors or subcontractors, will at all times comply with the requirements of the OHS Act, as amended, thereto whilst operating under this Agreement and in dealing with the Customer-side LNG Equipment and indemnifies the Company against any and all claims, by any party and/or the Customer arising as a result of the Customer's employees, contractors or subcontractors actions and/or their failure to comply with the OHS Act.

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22.3.The Company shall take all such steps and do all such things in relation to its obligations under the Agreement (particularly as they relate to the installation and maintenance of the Customer-side LNG Equipment, as well as the delivery of the LNG to ensure that the Customer is not in breach of any of its health and safety obligations in terms of applicable law or under this clause 22.

22.4.The Customer acknowledges that it is required to comply with all applicable laws (including but not limited to the health, safety and environmental statutes and applicable municipal by-laws applicable to the installation and operation of the Customer-side LNG Equipment and Initial Period LNG Equipment (i.e. dangerous goods and / or flammable substances licenses/ registration certificates), and indemnifies the Company against any and all liability howsoever incurred by the Company, the Customer and/or any other party, as a result of the•Customer's failure to comply with such laws.

**23.** **FORCE MAJEURE**

23.1.**Definition of a Force Majeure Event**

In this Agreement, **"Force Majeure Event"** means, subject to clause 23.3, any act, event or circumstance or any combination of acts, events or circumstances, which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.1.is beyond the reasonable control of the affected Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.2.was not foreseeable or if foreseeable, could not have been avoided, effects mitigated or overcome by the affected Party acting in accordance with good industry practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.3.materially prevents, impedes or delays the performance by the affected Party of any covenant or obligation in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.4.is without fault or negligence on the part of the affected Party or its contractors and is not the result of a breach by the affected Party or its contractors of any of their obligations under this Agreement or under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.5.and which is otherwise validly claimed and maintained by the affected Party in accordance with this clause 23.

23.2.**Force Majeure Events**

Provided they meet the aforementioned requirements, the following acts, events or circumstances shall constitute a Force Majeure Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.1.atmospheric disturbance, drought, earthquake, epidemic, explosion, fire, flood, fog, haze, hurricane, landslide, lightning, soil erosion, storm, subsidence, tempest, tornado, typhoon, washout or other acts of God;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.2.acts or serious threats of war (whether declared or undeclared), riot, civil war, blockade, insurrection, host community disturbance, acts of public enemies, invasion, embargo, trade sanctions, revolution, sabotage or terrorism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.3.strikes, lock outs or industrial disturbances, except wildcat strikes, lockout or industrial disturbances limited to the employees of a Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.4.pollution, chemical or radioactive contamination or ionising radiation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.5.breakdown, failure, damage to, loss of or inoperability of the LNG Production Facility, Customer-side LNG Equipment, Initial Period LNG Equipment or other assets required by a Party to perform its obligations under this Agreement or damage to, loss of or inoperability of such plant, equipment or assets, as a result of causes other than normal wear and tear;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.6.any force majeure declared by the Company or transporter, or any event or circumstance arising in connection with any equipment of such transporter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.7.acts or omissions of a governmental authority or the modification, removal or delay of a consent, permit, authorisation or other approval required to be in place under applicable laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.8.any major damage to the roads that prevent and impede Company from transporting and delivering the LNG to the Customer.

23.3.**Force Majeure Event exclusions**

The Parties agree that the inability or the failure of the affected Party to make payment of any money when due in accordance with this Agreement or the inability or the failure of the affected Party to raise any financing required in connection with the performance of the affected Party's covenants or obligations in accordance with this Agreement shall not constitute a Force Majeure Event (save only to the extent that such events results from a Force Majeure Event).

23.4.**Relief for a Force Majeure Event**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.4.1.Subject to this clause 23 of the Agreement, an affected Party shall not be liable to the other Parties for a failure to perform a covenant, other than an obligation to make payment, or obligation in accordance with this Agreement to the extent that the affected Party's performance of such covenant or obligation is prevented, impeded or delayed by a Force Majeure Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.4.2.An affected Party shall not be entitled to relief in accordance with this clause 23 of the Agreement or having become entitled shall cease to be so entitled, and a Force Majeure Event shall cease to be treated as a Force Majeure Event to the extent that the affected Party fails to comply with the requirements of this clause 23 of the Agreement unless such failure was itself due to a Force Majeure Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.4.3.Each Party shall continue to perform its covenants or obligations in accordance with this Agreement to the extent not prevented, impeded or delayed by a Force Majeure Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.4.4.If a Force Majeure Event occurs the affected Party shall, acting in accordance with the standard of a Reasonable and Prudent Operator, act to bring the Force Majeure Event to an end and to resume full and proper performance of the covenant or obligation to which the Force Majeure Event relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.4.5.When the affected Party gives notice that it anticipates that it will be able to resume the performance of the covenant or obligation to which the Force Majeure Event relates the Parties shall cooperate to accomplish any re-commissioning necessary to enable such resumption of performance.

23.5.**Force Majeure Estimates**

An affected Party shall give notice (a **"Force Majeure Estimate"**) to the other Party at each of the following times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.5.1.as soon as reasonable, but not later than seventy-two (72) hours after the Day (the **"Force Majeure Relevant Day"**) upon which the affected Party first knew or ought reasonably to have known of the inability to perform a covenant or obligation in accordance with this Agreement for which relief is sought in accordance with this clause 23;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.5.2.within five (5) Business Days from the Force Majeure Relevant Day and on the last Business Day of each subsequent Month thereafter;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.5.3.as soon as reasonably possible after the affected Party's best estimate of the duration of the Force Majeure Event given in accordance with clause 23.6.1.3 of the Agreement changes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.5.4.as soon as reasonably possible after the affected Party anticipates that it will be able to resume performance of the covenant or obligation for which relief is sought in accordance with this clause 23.

23.6.**Contents of Force Majeure Estimates**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.1.Each Force Majeure Estimate shall contain the affected Party's best estimates of the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.1.1.full particulars of and the reasons for the Force Majeure Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.1.2.the expected extent of the affected Party's inability to perform any covenant or obligation in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.1.3.the expected duration of the Force Majeure Event from the Force Majeure Relevant Day and the expected date that performance of the covenant or obligation to which the Force Majeure Event relates will be resumed (whether incrementally or in whole);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.1.4.the actions which the affected Party, acting in accordance with the standard of a Reasonable and Prudent Operator, proposes to take to bring the Force Majeure Event to an end and to resume full and proper performance of the covenant or obligation to which the Force Majeure Event relates and the affected Party's estimate of the expected schedule thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.1.5.the quantities of LNG that it will (in the case of the Company) be unable to make available for delivery or that it will (in the case of the Customer) be unable to take delivery of.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.6.2.Each subsequent Force Majeure Estimate shall contain any of the above information not previously given notice of, a full report confirming or updating and amplifying the information contained in any previous Force Majeure Estimates and such further information as the other Parties may reasonably require.

23.7.**Extension of Term**

The Term shall be extended on a day-for-day basis for all periods during which an affected Party is unable to perform its obligations pursuant to a Force Majeure Event and is relieved of its obligation to so perform in accordance with this clause 23.

**24.** **MITIGATION OF LOSSES**

Each Party shall use Reasonable Efforts to mitigate or avoid any loss or damage caused by the failure of the other Party to meet its obligations under this Agreement, whether or not such failure is the result of a Force Majeure event.

**25.** **WILLFUL MISCONDUCT AND/OR GROSS NEGLIGENCE**

To the extent that a Party's breach of its obligations under this Agreement results solely from such Party's wilful misconduct and/or gross negligence, clauses 21 (*Liability and Indemnity*) and 24 (*Mitigation of Losses*) shall not apply to limit the liability of such Party or the remedies available to the other Party.

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**26.** **BREACH**

26.1.Should either Party breach any of its obligations in terms of this Agreement and fail to remedy such breach within fourteen (14) Days of receipt of a written notice from the aggrieved Party to that effect, then the aggrieved Party shall be entitled without prejudice to any other rights in terms of this Agreement or in law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1.1.claim specific performance; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1.2.cancel this Agreement in terms of clause 27.1.1 and claim damages

in either event without prejudice to the aggrieved Party's right to claim damages.

26.2.Notwithstanding anything to the contrary contained in this Agreement the liability of each Party hereto in respect of any claims arising out of or in connection with this Agreement, whether founded in contract or delict or otherwise in law, shall be limited to the direct loss suffered and shall not include any liability for any indirect damages or loss of production or loss of profits or any other consequential loss or damage.

**27.** **TERMINATION**

27.1.Without affecting any other right or remedy available to it, either Party may terminate this Agreement with immediate effect by giving written notice to the other Party if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.1.the other Party is in breach of any of the material terms of this Agreement and which, in the case of a breach capable of remedy, is not remedied within 14 (fourteen) Days of receipt of written notification from the aggrieved Party specifying the breach and providing steps to rectify such breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1.2.the other Party becomes "financially distressed" (as defined in the Companies Act, 2008) or any receiver, administrative receiver, judicial receiver, judicial manager, administrator, compulsory manager, judicial custodian, judicial manager, business rescue practitioner, trustee in bankruptcy, liquidator or the like, is appointed in respect of such Party or any material part of its assets or it requests any such appointment or the Party commences any process or proceedings or takes any other step with a view to the general readjustment, rescheduling or deferral of its indebtedness (or any part thereof which it would otherwise be unable to pay when due) or proposes to take any such step, except in the normal course of business.

27.2.This Agreement may be terminated by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2.1.either Party (whether or not it is the affected Party) if a Force Majeure Event endures for a period of more than seventy-five (75) consecutive Days or longer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2.2.either Party if the Parties are unable to agree upon the Replacement Arrangements in accordance with the provisions of clause 6.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2.3.the Company in the event that the Customer is unable to take delivery of LNG at the Customer Site for a continuous period of thirty (30) Days, for any reason other than as a result of a Force Majeure Event or a breach of this Agreement by the Company.

27.3.This Agreement may be terminated by the Customer in the event that the Company has, for any reason other than as a result of a Force Majeure Event or a breach of this Agreement by the Customer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3.1.been unable to supply LNG for a continuous period of sixty (60) Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3.2.on more than one occasion during any Contract Year during the Term, after being provided 48 hours' notice from the Customer to correct the failure, failed to ensure sufficient LNG delivered to the Delivery Point was at least of the Specification required in terms of this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3.3.on more than one occasion during the Initial Period, after being provided 48 hours' notice from the Customer to correct the failure, failed to ensure sufficient security of supply of LNG as contemplated in clause 19.2.1 and, as a result, the Customer had insufficient access to LNG from the Company for any Month during the Initial Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.3.4.on more than one occasion during any Contract Year during the Permanent Period, after being provided 48 hours' notice from the Customer to correct the failure, failed to ensure sufficient security of supply of LNG as contemplated in clause 19.2.2 and, as a result, the Customer had insufficient access to LNG from the Company for any Month during the Permanent Period.

27.4.In addition, this Agreement may be terminated by the Customer after 42 (forty-two) Months from the Commencement Date, provided it gives the Company at least 18 (eighteen) Months' written notice of termination.

**28.** **CONSEQUENCES OF TERMINATION**

**28.1.** **Expiration of the Term**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1.1.Unless extended or terminated earlier in accordance with the provisions of this Agreement, this Agreement terminates on the last day of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1.2.In the event that the Customer has not exercised the Option to Purchase prior to the expiry of the Term, the Company shall be entitled to enter the Customer Site and any other premises upon which the Customer-side LNG Equipment is installed or situated and remove all such equipment and any other assets belonging to the Company, at its own costs.

28.2.**Customer caused termination**

In the event that the Company terminates this Agreement where the Customer is the Party in default pursuant to the provisions of clause 27.1, then -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.1.if the Termination Date occurs after the Ownership Transfer Date, the Customer shall, no later than 5 (five) Business Days after the Termination Date, make payment to the Company of the Customer Termination Payment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.2.if the Termination Date occurs prior to the Ownership Transfer Date, the Company may elect to require the Customer shall, no later than 5 (five) Business Days after the Termination Date, either -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.2.1.to make payment to the Company of the Settlement Value, in which event, ownership of the Customer-side LNG Equipment shall pass to the Customer on a *voetstoots* basis; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.2.2.to make payment to the Company of the Customer Termination Payment, in wh,ich the Company shall be entitled to enter the Customer Site and any other premises upon which any assets belonging to the Company is installed or situated and remove all such assets (save for the Fixed Storage Tanks, if such assets have already been installed by the Termination Date, which shall remain behind). The costs of dismantling and removing such assets shall be borne by the Customer within 5 (five) Business Days of written demand from the Company. If applicable, upon payment of the Customer Termination Payment as aforesaid, ownership of the Fixed Storage Tanks shall pass to the Customer on a *voetstoots* basis; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2.3.any unpaid amounts owing by one Party to the other under the provisions of this Agreement as at the Termination Date shall be paid to the Party to which it is owed within 30 (thirty) days of the Termination Date.

28.3.**No-fault early termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3.1.In the event that either Party terminates this Agreement pursuant to the provisions of clause 27.2, then -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3.1.1.if the Termination Date occurs prior to the Ownership Transfer Date, the Customer shall make payment of the Settlement Value, whereafter ownership of the Customer-side LNG Equipment shall pass to the Customer on *voetstoots* basis; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3.1.2.if the Termination Date occurs after the Ownership Transfer Date, the Customer shall not be liable to the Company for any penalty payments whatsoever other than such payments which are due to the Company under the provisions of this Agreement up until the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3.1.3.any unpaid amounts owing by one Party to the other under the provisions of this Agreement as at the Termination Date shall be paid to the Party to which it is owed within 30 (thirty) days of the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3.2.Where the Customer has made payment of the Settlement Value in terms of clause 28.3.1.1, the Company shall use Reasonable Efforts to mitigate any liabilities, damages, fees, costs and expenses that the Company may incur or suffer as a result of the termination of this Agreement.

28.4.**Other termination events**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.4.1.In the event that the Customer terminates this Agreement pursuant to the provisions of clauses 27.1, 27.3 or 27.4, then -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.4.1.1.if the Termination Date occurs prior to the Ownership Transfer Date, the Customer shall have the right, no later than 5 (five) Business Days after the Termination Date, to make payment to the Company of the Settlement Value, whereafter ownership of the Customer-side LNG Equipment shall pass to the Customer on *voetstoots* basis, or failing the Customer exercising its right to make payment of the Settlement Value, the Company shall be entitled to enter the Customer Site and any other premises upon which the Customer-side LNG Equipment is installed or situated and remove all such equipment and any other assets belonging to the Company. The costs of dismantling and removing such equipment shall be borne by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.4.1.2.any unpaid amounts owing by one Party to the other under the provisions of this Agreement as at the Termination Date shall be paid to the Party to which it is owed within 30 (thirty) days of the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.4.2.For avoidance of doubt, in the event that the Customer terminates this Agreement pursuant to the provisions of clauses 27.1, 27.3 or 27.4, and the Termination Date occurs after to the Ownership Transfer Date, there shall be no further consequences applicable to either Party other than unpaid amounts owing by one Party to the other under the provisions of this Agreement as at the Termination Date shall be paid to the Party to which it is owed within 30 (thirty) days of the Termination Date.

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28.5.**General consequences of termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.5.1.Termination of this Agreement shall not affect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.5.1.1.a Party's accrued rights and obligations at the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.5.1.2.the continuing rights and obligations of the Parties under any provision of this Agreement which is expressed to survive termination or by implication intended to continue in force following termination, or which is required to give effect to such termination or the consequences of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.5.2.Each Party's further rights and obligations shall cease immediately on the Termination Date.

**29.** **EXPERT DETERMINATION**

29.1.Where the Agreement expressly provides for Independent Expert determination of any dispute or matter, or the Parties otherwise agree that the dispute or other matter in question shall be resolved by Independent Expert determination, then any Party shall be entitled to require by written notice to the other Party that the dispute or matter be referred to an independent expert for determination within 10 (ten) Days of the dispute or matter arising, and such notice shall give details of the reason for the referral to, and the dispute or matter to be referred to the Independent Expert.

29.2.The Parties shall endeavour to agree upon a person to be the Independent Expert. If, within 7 (seven) Days from the date of the notice referred to in clause 29.1 above, the Parties have failed to agree upon an Independent Expert, the matter shall forthwith be referred by the Party wishing the appointment to be made to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2.1.the Chairman for the time being of the Legal Practice Council (or its successor body) if the dispute in question relates primarily to a legal matter, who shall appoint an attorney or advocate of not less than 15 (fifteen) years professional experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2.2.the President for the time being of the South African Institute of Chartered Accountants if the dispute in question relates primarily to a financial or accounting matter, who shall .appoint a chartered accountant or such other expert valuator of not less than 15 (fifteen) years professional experience; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2.3.the President for the time being of the Engineering Council of South Africa if the dispute in question relates primarily to a technical or engineering matter, who shall appoint a suitably qualified professional engineer of not less than 15 (fifteen) years professional experience,

(such person being the **"Appointer"**) who shall be requested to make the appointment within 7 (seven) Days and, in so doing, may take such independent advice as he/she thinks fit.

29.3.In making the determination, the Independent Expert shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.1.act as an expert and not as an arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.2.determine the liability for his/her or charges, which shall be paid accordingly by the applicable Party/ies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.3.be entitled to determine such methods and processes as he/she may, in his/her sole discretion, deem appropriate in the circumstances, provided that the Independent Expert may not adopt any process which is manifestly biased, unfair or unreasonable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.4.consult with both Parties (provided that the extent of the consultation shall be in the Independent Expert's sole discretion) prior to rendering a determination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3.5.having regard to the sensitivity of any confidential information, be entitled to take advice from any person considered by him/her to have expert knowledge with reference to the matter in question.

29.4.All communications between the Parties and the Independent Expert shall be made in writing and a copy thereof provided simultaneously to the other Party/ies. No meeting between the Independent Expert and the Parties or either of them shall take place unless all the Parties have a reasonable opportunity to attend any such meeting.

29.5.The determination of the Independent Expert shall (in the absence of manifest error) be final and binding on the Parties.

**30.** **DISPUTE RESOLUTION**

30.1.The Parties shall make Reasonable Efforts to resolve all disputes arising out of or related to this Agreement through negotiations between the senior management of the Parties.

30.2.Any unresolved dispute between the Parties arising out of or in connection with this Agreement, including, its existence, application, breach, interpretation, validity, termination or cancellation, shall (save where clause 29 applies) be submitted to and decided by arbitration in terms of the Arbitration Act No. 42 of 1965, of South Africa, subject to the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.1.any Party may at any time after a dispute has arisen, by written notice to the other relevant Parties, require that such dispute be referred to arbitration in accordance with this clause 30;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.2.the tribunal shall consist of one arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.3.the arbitration proceedings shall be in accordance with the formalities and/or procedures determined by the arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.4.the arbitration shall be held in Johannesburg or Sandton, as determined by the arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.5.the language of the arbitration shall be English;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.6.the arbitrator's decision shall be binding and shall not be appealable to any court in any jurisdiction. Any Party may however enter such decision in any court having competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.7.the Parties shall endeavour to ensure that the arbitration is completed within 90 (ninety) Days after notice requiring the claim to be referred to arbitration is given;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.8.the decision of the arbitrator shall be in writing. The arbitrator shall give reasons for his award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.9.the proceedings and decision shall be confidential to the Parties and their advisers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2.10.the arbitrator shall be a practicing attorney or advocate of not less than 10 (ten) years standing or a retired judge, who, in the absence of agreement reached within 14 (fourteen) Days of the arbitration being demanded, shall be appointed by the President or acting President of the Legal Practice Council.

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30.3.Notwithstanding the provisions of clause 30.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3.1.this arbitration clause shall not preclude a Party from seeking urgent relief in a court of appropriate jurisdiction, where grounds for urgency exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3.2.in the event of any Party having a claim against any other Party for a liquidated amount or an amount which arises from a liquid document, then the Party having such claim shall be entitled to institute action therefor in a court of law rather than in terms of the above clauses, notwithstanding the fact that the other Party may dispute such claim.

**31.** **LEGAL PROCEEDINGS AND GOVERNING LAW**

31.1.Any legal proceedings arising out of this Agreement, including without limitation its interpretation, shall be governed by the law of the Republic of South Africa and shall (subject to clauses 29 and 30 above) be adjudged in the relevant South African Court, but should the Parties agree, the relevant Magistrates court shall have jurisdiction.

31.2.Either Party shall be entitled to recover from the other Party all legal costs arising from such legal proceedings, including, but not limited to, collection commission, tracing charges and legal fees on an attorney and own client basis.

**32.** **INTELLECTUAL PROPERTY AND CONFIDENTIALITY**

32.1.Both Parties hereby agree that the terms and conditions of this Agreement and any communications arising out of and in connection with this Agreement are confidential and may not be disclosed to any third party. Both Parties shall further not disclose any other information relating to the business and affairs of the other to any third party. The provisions of this clause 26.1 shall survive the termination or cancellation of this Agreement.

32.2.Company retains all intellectual property rights in its drawings, specifications, data and all other information and documents prepared by Company for the Customer in whatever medium.

32.3.Company's trademarks and names shall not be used otherwise than as applied by Company to the LNG, Customer-side LNG Equipment or storage. The Customer agrees that it shall not (or permit any third party to) reverse engineer, decompile, modify or tamper with the Customer-side LNG Equipment or LNG.

32.4.No right or licence is granted under this Agreement to the Customer under any patent, trademark, copyright, registered design, or other intellectual property right, except the right to use the LNG or Customer-side LNG Equipment.

**33.** **NOTICES AND LEGAL PROCESS**

33.1.Each Party chooses as their *domicilium citandi et executandi* the below address for all purposes under this Agreement ("Chosen Address"), whether for serving court process or documents, giving any notice, or making any other communications of whatsoever nature and for whatsoever purpose under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.1.1.** **Customer**

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| | |
|:---|:---|
| Address: | Consol House, Osborn Rd, Johannesburg, 1400 |
| Email: | [\*\*\*] |
| Attention: | Supply Chain Executive/Company Secretary |
| In addition, an email must be sent to: | In addition, an email must be sent to: |
| *[\*\*\*]* | *[\*\*\*]* |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.1.2.** **Company**

---

| | |
|:---|:---|
| Address: | First Floor, 1 Bompas Road, Dunkeld West, Johannesburg,2196 |
| Email: | [\*\*\*] |
| Attention: | [\*\*\*] |

---

33.2.Any notice required or permitted under this Agreement is valid only if in writing.

33.3.Any Party may by notice to the other Parties change its Chosen Address to another physical address in South Africa and that change takes effect on the seventh Day after the date of receipt by the Party who last receives the notice.

33.4.Any notice delivered by hand to the Chosen Address of a Party before 17h00 is deemed to have been received on the date of delivery.

33.5.Despite anything to the contrary in this Agreement, a written notice actually received by a Party is an adequate notice to it even though not sent or delivered to its Chosen Address.

**34.** **ASSIGNMENT**

34.1.This Agreement shall be binding upon and inure to the benefit of the legal representatives, successors and permitted assigns of the respective Parties. It is provided, however, that no assignment of this Agreement shall be made by the Company or Customer without the prior written consent which consent shall not unreasonably be withheld or delayed by the Company or Customer, as the case may be, except that consent shall not be required for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1.1.assignments, transfers, pledges or encumbrances of this Agreement or the accounts, revenues or proceeds hereof in connection with any financing or other financial arrangements made to secure the payment of money; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1.2.assignments to an affiliate or to any member of Ardagh Group (a member of Ardagh Group being any company, directly or indirectly, owned or controlled by or under common control with Ardagh Group S.A.).

34.2.In the event of an assignment permitted under clauses 34.1.1 or 34.1.2 above, the assignor shall be deemed to be the guarantor of the performance of the obligations assigned to the assignee notwithstanding any subsequent modifications of such obligations.

**35.** **GENERAL**

35.1.This Agreement, and the Schedules annexed hereto, constitutes the whole Agreement between Company and the Customer and no representations, undertakings, warranties, guarantees, terms and conditions that are not recorded herein shall have legal validity.

35.2.No addition to, variation or agreed cancelation of, or waiver of any right or any terms or conditions of this Agreement shall be binding unless reduced to writing and signed by both Parties. Digital signature will suffice the formal requirements under this Agreement.

35.3.Should:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.3.1.the Customer's order for LNG contain the Customer's standard terms and conditions of purchase, the supply of LNG by the Company shall be governed by the terms and conditions of this Agreement and not by the standard terms and conditions contained in the Customer's order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.3.2.the Company issue an invoice and/or delivery note, which contains general terms and conditions which conflict with the terms and conditions of this Agreement, the terms and conditions of this Agreement shall prevail.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.3.3.any provision of this Agreement be held by any competent court to be unenforceable or contrary to any law or public policy, the said provision shall be struck from this Agreement and the remaining provisions hereof shall remain in force.

35.4.Company's rights shall not be affected by the sale and/or disposition by the Customer of its business or any part thereof, acquisition or disposal of shares and/or any other substantial change in its shareholding by any means whatsoever.

35.5.No waiver or indulgence which one Party may grant to the other Party in respect of any of the terms and conditions of this Agreement shall be a continuing waiver or indulgence of those terms and conditions, nor a novation thereof.

35.6.Each and every provision of this Agreement shall be construed as though both Parties participated equally in the drafting of same, and any rule of construction that a document shall be construed against the drafting arty, including without limitation, the doctrine commonly known as *contra proferentem,* shall not be applicable to this Agreement.

35.7.This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which shall be deemed to constitute the same Agreement.

35.8.The persons signing this Agreement in a representative capacity warrant their authority to do so.

*[Signature page to follow]*

------

**SIGNATURE PAGE**

Each of the Parties has caused this Agreement to be executed by a respective duly authorised representatives, on the dates and at the places specified below:

---

| | | | |
|:---|:---|:---|:---|
| The Company | The Company | The Customer | The Customer |
| Signed: | /s/ N Mitchell | Signed: | ![img177380449_0.jpg](img177380449_0.jpg)<br>|
| By: | N Mitchell | By: | ![img177380449_1.jpg](img177380449_1.jpg) |
| Designation: | COO | Designation: | CFO |
| Place: | Johannesburg | Place: | ![img177380449_2.jpg](img177380449_2.jpg) |
| Date: | 24 June 2022 | Date: | 23/06/22 |

---

---

| | | | |
|:---|:---|:---|:---|
| Witness: | Witness: | Witness: | Witness: |
| 1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![img177380449_3.jpg](img177380449_3.jpg)<br>| 1. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![img177380449_4.jpg](img177380449_4.jpg)<br>|
| 2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![img177380449_5.jpg](img177380449_5.jpg)<br>| 2. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![img177380449_6.jpg](img177380449_6.jpg)<br>|

---

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## Exhibit 10.26

**Exhibit 10.26**

**SERIES SEED-1 PREFERRED STOCK PURCHASE AGREEMENT**

This Series Seed-1 Preferred Stock Purchase Agreement (this "**Agreement**") is made as of January 26, 2026, by and between Opeongo, Inc., a Delaware corporation (the "**Company**"), and ASP Isotopes Inc., a Delaware corporation (the "**Purchaser**").

The parties hereby agree as follows:

1. <u>Purchase and Sale of Preferred Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Sale and Issuance of Preferred Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall have adopted and filed with the Secretary of State of the State of Delaware on or before the Closing (as defined below) the Amended and Restated Certificate of Incorporation in the form of <u>Exhibit B</u> attached to this Agreement (the "**Restated Certificate**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the terms and conditions of this Agreement, the Purchaser agrees to purchase, and the Company agrees to sell and issue to the Purchaser, at the Closing (as defined below) that number of shares of Series Seed-1 Preferred Stock, $0.0001 par value per share (the "**Series Seed-1 Preferred Stock**"), set forth opposite the Purchaser's name on <u>Exhibit A</u>, at a purchase price of $2.2952 per share. The shares of Series Seed-1 Preferred Stock issued to the Purchaser pursuant to this Agreement shall be referred to in this Agreement as the "**Shares**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Closing; Delivery</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;(a) The purchase and sale of the Shares shall take place remotely via the exchange of documents and signatures, on the date of this Agreement at such time as is mutually agreed upon, orally or in writing, by the Company and the Purchaser (which time and place are designated as the "**Closing**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Closing, the Company shall deliver to the Purchaser a notice of issuance of uncertificated shares (and may, upon written request by such Purchaser, issue and deliver a certificate) representing the Shares being purchased by the Purchaser at the Closing against payment of the purchase price therefor by wire transfer to a bank account designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Defined Terms Used in this Agreement</u>. In addition to the terms defined above, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate**" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or investment fund now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Code**" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Company Intellectual Property**" means all Intellectual Property Rights that are owned, purported to be owned by, or in-licensed to the Company, or used by the Company in the conduct of the Company's business as now conducted.

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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;(d) "**Company-Controlled Intellectual Property**" means (i) Intellectual Property Rights owned or purported to be owned by the Company and (ii) Intellectual Property Rights exclusively in-licensed to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**GAAP**" means generally accepted accounting principles in the United States, applied on a consistent basis throughout the periods indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Indemnification Agreement**" means the agreement between the Company and each member of the Company's Board of Directors in the form of <u>Exhibit D</u> attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Intellectual Property Rights**" means all intellectual property rights, whether registered or unregistered, that are recognized in any jurisdiction of the world, including such rights in patents, utility models, trademarks and tradenames, copyrights, trade secrets, and domain names (and any registrations of or applications to register any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Investors' Rights Agreement**" means the agreement between the Company and the Purchaser dated as of the date of the Closing, in the form of <u>Exhibit E</u> attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Knowledge**" including the phrase "**to the Company's knowledge**" means the Knowledge Parties' actual knowledge after reasonable investigation and assuming such knowledge as the individual would have as a result of the reasonable performance of the individual's duties in the ordinary course. Additionally, for purposes of <u>Section 2</u>, the Company shall be deemed to have "knowledge" of a patent right only if the Company has actual knowledge of the patent right.

&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Knowledge Parties**" means David Baram, Todd Wider and Oran Mordechai.

&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Material Adverse Effect**" means a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property, or results of operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Officer**" means the Chief Executive Officer, President, Chief Financial Officer, and any other person who reports directly to the Board of Directors or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Person**" means any individual, corporation, partnership, trust, limited liability company, association 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;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Right of First Refusal and Co-Sale Agreement**" means the agreement among the Company, the Purchaser, and certain other stockholders of the Company, dated as of the date of the Closing, in the form of <u>Exhibit F</u> attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Transaction Agreements**" means this Agreement, the Investors' Rights Agreement, the Right of First Refusal and Co-Sale Agreement and the Voting Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Voting Agreement**" means the agreement among the Company, the Purchaser and certain other stockholders of the Company, dated as of the date of the Closing, in the form of <u>Exhibit G</u> attached to this Agreement.

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2. <u>Representations and Warranties of the Company</u>. The Company hereby represents and warrants to the Purchaser that, except as set forth on the Disclosure Schedule attached as <u>Exhibit C</u> to this Agreement, which exceptions shall be deemed to be part of the representations and warranties made hereunder, the following representations are true and complete as of the date of the Closing, except as otherwise indicated. The Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections contained in this <u>Section 2</u>, and the disclosures in any section of the Disclosure Schedule shall qualify other sections in this <u>Section 2</u> only to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections.

For purposes of these representations and warranties (other than those in <u>Section 2.2</u>, <u>Section 2.3</u>, <u>Section 2.4</u>, <u>Section 2.5</u>, <u>Section 2.6</u> and <u>Section 2.23</u>), the term the "**Company**" shall include any subsidiaries of the Company, unless otherwise noted herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Organization, Good Standing, Corporate Power and Qualification</u>. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted and as presently proposed to be conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Capitalization</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;(a) The authorized capital of the Company consists, immediately prior to the Closing, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 30,000,000 shares of common stock, $0.0001 par value per share (the "**Common Stock**"), 13,070,820 shares of which are issued and outstanding immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) 4,356,918 shares of preferred stock, $0.0001 par value per share (the "**Preferred Stock**"), all of which have been designated Series Seed-1 Preferred Stock, none of which are issued and outstanding immediately prior to the Closing. The rights, privileges and preferences of the Preferred Stock are as stated in the Restated Certificate and as provided by the General Corporation Law of the State of Delaware (the "**DGCL**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All of the outstanding shares of capital stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as described in <u>Section 2.2(b) of the Disclosure Schedule</u> and except for (A) the conversion privileges of the Shares to be issued under this Agreement, (B) the rights provided in Section 4 of the Investors' Rights Agreement, and (C) the securities and rights described in <u>Section 2.2(a)(ii)</u> and <u>Section 2.2(b)</u> of this Agreement and <u>Section 2.2(c) of the Disclosure Schedule</u>, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any shares of Common Stock or Preferred Stock, or any securities convertible into or exchangeable for shares of Common Stock or Preferred Stock. All outstanding shares of Common Stock and all shares of Common Stock underlying outstanding options are subject to (i) a right of first refusal in favor of the Company upon any proposed transfer (other than transfers for estate planning purposes); and (ii) a lock-up or market standoff agreement of not less than 180 days following the Company's initial public offering pursuant to a registration statement filed with the Securities and Exchange Commission under the Securities Act.

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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;(c) Except as described in <u>Section 2.2(c) of the Disclosure Schedule</u>: (i) all outstanding Common Stock held by service providers are subject to a customary vesting schedule monthly over four years with a one-year cliff; and (ii) none of the Company's stock purchase agreements or stock option documents contains a provision for acceleration of vesting (or lapse of a repurchase right) or other changes in the vesting provisions or other terms of such agreement or understanding upon the occurrence of any event or combination of events, including, without limitation, in the case where any stock incentive or similar equity plan of the Company is not assumed in an acquisition. The Company has never adjusted or amended the exercise price of any stock options previously awarded, whether through amendment, cancellation, replacement grant, repricing, or any other means. Except as set forth in the Restated Certificate, the Company has no obligation (contingent or otherwise) to purchase or redeem any of its capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has obtained valid waivers of any rights by other parties to purchase any of the Shares covered by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Subsidiaries</u>. The Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other business entity. The Company is not a participant in any joint venture, partnership or similar arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Authorization</u>. All corporate action required to be taken by the Board of Directors and the Company's stockholders in order to authorize the Company to enter into the Transaction Agreements, and to issue the Shares at the Closing and the Common Stock issuable upon conversion of the Shares, has been taken. All action on the part of the officers of the Company necessary for the execution and delivery of the Transaction Agreements, the performance of all obligations of the Company under the Transaction Agreements to be performed as of the Closing, and the issuance and delivery of the Shares has been taken. The Transaction Agreements, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; 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;(c) to the extent the indemnification provisions contained in the Investors' Rights Agreement or any of the Indemnification Agreements may be limited by applicable federal or state securities laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations made by the Purchaser in <u>Section 3</u> of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the filing of the Restated Certificate, which will have been filed as of the Closing; 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;(b) filings pursuant to applicable securities laws, which have been made or will be made in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Litigation</u>. There is no claim, action, suit, proceeding, arbitration, complaint, charge or, to the Company's knowledge, investigation pending or to the Company's knowledge, currently threatened: (a) against the Company or any Officer or director of the Company arising out of their employment or Board of Directors relationship with the Company; (b) to the Company's knowledge, that questions the validity of the Transaction Agreements or the right of the Company to enter into them, or to consummate the transactions contemplated by the Transaction Agreements; or (c) that would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. Neither the Company nor, to the Company's knowledge, any of its Officers or directors is a party or is named as subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality (in the case of Officers or directors, such as would affect the Company). There is no action, suit, proceeding or investigation by the Company pending or which the Company intends to initiate. The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened in writing (or any basis therefor known to the Company) involving the prior employment of any of the Company's employees, their services provided in connection with the Company's business, any information or techniques allegedly proprietary to any of their former employers or their obligations under any agreements with prior employers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company owns, possesses, has developed, or has acquired on commercially reasonable terms, legal rights to all Company Intellectual Property sufficient to carry out its business as now conducted; <u>provided</u> that the foregoing representation is made to the Company's knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&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 past or current product or service or activity of the Company has infringed or violated, or infringes or otherwise violates any Intellectual Property Rights of a third Person; <u>provided</u> that the foregoing representation is made to the Company's knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the Company's knowledge, by conducting the Company's business as currently conducted or as presently proposed, the Company would not infringe or violate any of the Intellectual Property Rights of a third Person. The Company has not received any unsolicited offers to license any Intellectual Property Rights from any third Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the Company's knowledge, no third Person is presently infringing any Company-Controlled Intellectual Property in a way that is expected to have a Material Adverse Effect.

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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;(e) Other than pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) standard end-user license or services agreements for the Company's products and services on substantially the Company's standard forms made available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) customary nondisclosure agreements entered into by the Company in the ordinary course of business (that do not include any terms (w) granting the right to use residuals, (x) assigning Intellectual Property Rights, (y) granting express license rights, or (z) constituting a covenant not to assert Intellectual Property Rights);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) nonexclusive feedback licenses and nonexclusive licenses to use trademarks, in each case that are incidental to the subject matter of the applicable agreement in which they are incorporated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) licenses to a service provider solely for the purpose of allowing such service provider to provide services to the Company,

the Company has not granted to a third Person any options, licenses, covenants not to assert, agreements, claims, encumbrances or shared ownership interests of any kind relating to the Company-Controlled Intellectual Property that are material to the Company's business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Other than pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) standard license or services agreements for commercially available software products and cloud services non-exclusively licensed to Company under standard terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) backup licenses from employees and contractors granted in connection with providing services to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) licenses to Open Source Software (as hereinafter defined);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) customary nondisclosure agreements entered into by the Company in the ordinary course of business that do not include any terms (w) granting the right to use residuals, (x) assigning Intellectual Property Rights, (y) granting express license rights or (z) constituting a covenant not to assert Intellectual Property Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) nonexclusive feedback licenses and nonexclusive licenses to use trademarks, in each case that are incidental to the subject matter of the applicable agreement in which they are incorporated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) licenses to the Company solely for the purpose of enabling the Company to provide services to the licensor,

the Company is not bound by or a party to any options, licenses, covenants not to assert or other grants or agreements of any kind with respect to Intellectual Property Rights of any third Person that are material to the Company's business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company has taken commercially reasonable measures to maintain and protect all confidential information and trade secrets of the Company that the Company intended to maintain as confidential or a trade secret. To the Company's knowledge, except as would not reasonably be expected to result in a Material Adverse Effect, there has been no unlawful, accidental or unauthorized access to or

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use or disclosure of any confidential information and trade secrets of the Company that the Company intended to maintain as confidential or a trade secret.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each current and former employee of the Company has assigned to the Company all Intellectual Property Rights that such employee has solely or jointly conceived, reduced to practice, developed, or made during the period of employment with the Company that: (i) relate, at the time of conception, reduction to practice, development, or making of such Intellectual Property Right, to the Company's business as then conducted or as then proposed to be conducted; (ii) were developed on any amount of the Company's time or with the use of any of the Company's equipment, supplies, facilities or information; or (iii) resulted from such individual's performance of services for the Company. Each current and former consultant of the Company who was involved in the development of any material Intellectual Property Rights for the Company or that are otherwise owned or purported to be owned by the Company has assigned to the Company all Intellectual Property Rights that such consultant has solely or jointly conceived, reduced to practice, developed, or made during the period of its consulting relationship with the Company that resulted from such consultant's performance of services for the Company. Each such employee and consultant has executed an agreement with the Company regarding confidentiality and proprietary information, and assignment of Intellectual Property Rights developed by or for the Company, substantially in the form or forms made available to the Purchaser or their respective counsel (the "**Confidential Information Agreements**"). No such employee or consultant has excluded Intellectual Property Rights from the assignment of Intellectual Property Rights pursuant to such Person's Confidential Information Agreement, which excluded Intellectual Property Rights would be material to the Company in the conduct of the Company's business as now conducted or currently proposed to be conducted. The Company is not aware that any current or former employee or consultant is in violation of any Confidential Information Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has not embedded, used, linked or distributed any open source, software, technologies or other materials that are licensed or distributed under any license arrangement or other distribution model qualifying for the "Open Source" definition promulgated by the Open Source Initiative at www.opensource.org/osd or any other public domain or "community" (or similar) materials (collectively "**Open Source Software**") in connection with any of its products or services or proprietary materials in any manner that requires, or purports to require: (i) any material software code owned or authored by or on behalf of the Company ("**Company Code**") to be disclosed or distributed in source code form or be licensed for the purpose of making derivative works; (ii) any restriction on the consideration to be charged for the distribution of any such Company Code; (iii) the grant to any third Person of any rights or immunities under material Company-Controlled Intellectual Property; or (iv) any other material limitation, restriction or condition on the right of the Company with respect to its use or distribution of any material Company-Controlled Intellectual Property (other than attribution, warranty and liability disclaimer, and notice delivery conditions). The Company is in material compliance with all licenses for Open Source Software that it embeds, links to, uses or distributes.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Except as set forth on <u>Section 2.8(j) of the Disclosure Schedule</u>, no government funding, facilities of a university, college, hospital, foundation, other educational institution or research center, or other funding from third Persons provided specifically for research and development was used in the development of any Company-Controlled Intellectual Property in a manner that has resulted in such entity retaining any claim of ownership or right to use any such Company-Controlled Intellectual Property. To the Company's knowledge, no Person who was involved in, or who contributed to, the creation or development of any Company-Controlled Intellectual Property, has performed services for the government, university, college, hospital, foundation, or other educational institution or research center in a manner that would affect Company's rights in the Company-Controlled Intellectual Property.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Compliance with Other Instrument</u>s.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is not in violation or default: (i) of any provisions of its Certificate of Incorporation or Bylaws; (ii) in any material respect of any instrument, judgment, order, writ or decree; (iii) in any material respect under any note, indenture or mortgage; (iv) in any material respect under any lease, agreement, contract or purchase order to which it is a party or by which it is bound that is required to be listed on the Disclosure Schedule; or (e) of any provision of any federal or state statute, rule or regulation applicable to the Company the violation of which would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction Agreements will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either: (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement; or (ii) an event which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Agreements; 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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for the Transaction Agreements, there are no agreements, understandings, instruments, contracts or proposed transactions to which the Company is a party or by which it is bound that involve:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) obligations (contingent or otherwise) of, or payments to, the Company in excess of $500,000.00 (other than employment agreements and offer letters);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) other than pursuant to any university licenses listed in <u>Section 2.8(f) of the Disclosure Schedule</u> and/or <u>Section 2.8(j) of the Disclosure Schedule</u>, the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other Person that limit the Company's exclusive right to develop, manufacture, assemble, distribute, market or sell its products; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any "most favored" provisions, Board of Directors observer rights, or other side letter agreements not otherwise disclosed pursuant to any other representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) incurred any indebtedness for money borrowed or incurred any other liabilities individually in excess of $150,000.00 or in excess of $500,000.00 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) made any loans or advances to any Person, other than ordinary advances for business expenses; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sold, exchanged or otherwise disposed of any material portion of its assets or rights, other than in the ordinary course of business.

For the purposes of <u>(a)</u> and <u>(b)</u> of this <u>Section 2.10</u>, all indebtedness, liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same Person

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(including Persons the Company has reason to believe are affiliated with each other) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company is not a guarantor or indemnitor of any indebtedness of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Certain Transactions</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;(a) Other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as described in <u>Section 2.11(a)(i) of the Disclosure Schedule</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) standard employee benefits generally made available to all employees, standard employee offer letters and Confidential Information Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) standard director and officer indemnification agreements 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the purchase of shares of the Company's capital stock and the issuance of options to purchase shares of the Company's Common Stock, in each instance, approved in the written minutes of the Board of Directors (previously made available to the Purchaser or their respective counsel); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Transaction Agreements,

there are no agreements, understandings or proposed transactions between the Company and any of its Officers or directors, or any Affiliate thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as described in <u>Section 2.11(b) of the Disclosure Schedule</u>, the Company is not indebted, directly or indirectly, to any of its directors, officers or employees or to their respective spouses or children or to any Affiliate of any of the foregoing, other than in connection with expenses or advances of expenses incurred in the ordinary course of business or employee relocation expenses and for other customary employee benefits made generally available to all employees. None of the Company's directors, officers or employees or consultants, or any members of their immediate families, or any Affiliate of the foregoing are, directly or indirectly, indebted to the Company or, to the Company's knowledge, have any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material commercial, industrial, banking, consulting, legal, accounting, charitable or familial relationship with the Company or any of the Company's customers, suppliers, service providers, joint venture partners, licensees and competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) direct or indirect ownership interest in any firm or corporation with which the Company is affiliated or with which the Company has a business relationship, or any firm or corporation which competes with the Company except that directors, officers, employees or stockholders of the Company may own stock in (but not exceeding 2% of the outstanding capital stock of) publicly traded companies that may compete with the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) financial interest in any material contract with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Rights of Registration and Voting Rights</u>. Except as provided in the Investors' Rights Agreement, the Company is not under any obligation to register under the Securities Act any of its currently

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outstanding securities or any securities issuable upon exercise or conversion of its currently outstanding securities. To the Company's knowledge, except as contemplated in the Voting Agreement, no stockholder of the Company has entered into any agreements with respect to the voting of capital shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>Tangible and Real Property</u>. The tangible and real property and assets that the Company owns are free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for statutory liens for the payment of current taxes that are not yet delinquent and encumbrances and liens that arise in the ordinary course of business and do not materially impair the Company's ownership or use of such property or assets. With respect to the tangible and real property and assets it leases, the Company is in compliance with such leases and holds a valid leasehold interest free of any liens, claims or encumbrances other than those of the lessors of such property or assets. The Company does not own any real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 <u>Financial Statements</u>. The Company commenced operations as a separate legal entity on July 3, 2024. As of the Closing, the Company has not, directly or indirectly, incurred any liabilities for indebtedness, nor any other liabilities, except:

&nbsp;&nbsp;&nbsp;&nbsp;&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) liabilities incurred in the ordinary course of business and less than $50,000 in the aggregate; 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;(b) as set forth on <u>Section 2.14 of the Disclosure Schedule</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 <u>Changes</u>. Since the Company's formation, there have been no events or circumstances of any kind that have had or could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <u>Employee Matters</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;(a) To the Company's knowledge, none of its employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with such employee's ability to promote the interest of the Company or that would conflict with the Company's business. Neither the execution or delivery of the Transaction Agreements, nor the carrying on of the Company's business by the employees of the Company, nor the conduct of the Company's business as now conducted and as presently proposed to be conducted, will, to the Company's knowledge, conflict with or result in a breach of the terms, conditions, or provisions of, or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated.

&nbsp;&nbsp;&nbsp;&nbsp;&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 is not delinquent in payments to any of its employees, consultants, or independent contractors for any wages, salaries, commissions, bonuses, or other direct compensation for any service performed for it prior to the date hereof or amounts required to be reimbursed to such employees, consultants or independent contractors. The Company has complied in all material respects with all applicable state and federal equal employment opportunity laws and with other laws related to employment, including those related to wages, hours, worker classification and collective bargaining. The Company has withheld and paid to the appropriate governmental entity or is holding for payment not yet due to such governmental entity all amounts required to be withheld from employees of the Company and is not liable for any arrears of wages, taxes, penalties or other sums for failure to comply with any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the Company's knowledge, no Officer intends to terminate employment with the Company or is otherwise likely to become unavailable to continue as an employee. The Company does not have a present intention to terminate the employment of any of the foregoing. The employment of each employee of the Company is terminable at the will of the Company. Except as set forth in <u>Section 2.16(c)(i)</u> 

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<u>of the Disclosure Schedule</u> or as required by law, upon termination of the employment of any such employees, no severance or other payments will become due. Except as set forth in <u>Section 2.16(c)(ii) of the Disclosure Schedule</u>, the Company has no policy, practice, plan or program of paying severance pay or any form of severance compensation in connection with the termination of employment services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has not made any representations regarding equity incentives to any officer, employee, director or consultant that are inconsistent with the share amounts and terms set forth in the minutes of meetings of (or actions taken by unanimous written consent 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each former officer or other employee who reported to the Chief Executive Officer, Chief Financial Officer, or Board of Directors has entered into an agreement with the Company providing for the full release of any claims against the Company or any related party arising out of such employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Section 2.16(f) of the</u> <u>Disclosure Schedule</u> sets forth each employee benefit plan maintained, established or sponsored by the Company, or which the Company participates in or contributes to, which is subject to the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"). The Company has made all required contributions and has no liability to any such employee benefit plan, other than liability for health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied in all material respects with all applicable laws for any such employee benefit plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To the Company's knowledge, none of the Officers or directors of the Company has been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject to voluntary or involuntary petition under the federal bankruptcy laws or any state insolvency law or the appointment of a receiver, fiscal agent or similar officer by a court for such person's business or property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) convicted in a criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) subject to any order, judgment or decree (not subsequently reversed, suspended, or vacated) of any court of competent jurisdiction permanently or temporarily enjoining such person from engaging, or otherwise imposing limits or conditions on such person's engagement in any securities, investment advisory, banking, insurance, or other type of business or acting as an officer or director of a public company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated any federal or state securities, commodities, or unfair trade practices law, which such judgment or finding has not been subsequently reversed, suspended, or vacated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 <u>Tax Returns and Payments</u>. There are no material taxes due and payable by the Company that have not been timely paid and no material withholding taxes required to be withheld by the Company that have not been withheld and timely paid over to the appropriate governmental agency. There have been no examinations or audits with respect to any taxes or tax returns of the Company, by any applicable federal, state, county, local or foreign governmental agency, and the Company has not received written notice of an intent to commence any such examination or audit that remains outstanding. The Company has duly and timely filed all income or other material tax returns required to have been filed by it, and there are in effect no waivers of applicable statutes of limitations with respect to taxes for any year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 <u>Insurance</u>. The Company has the insurance policies set forth in <u>Section 2.18 of the Disclosure Schedule</u> and all such policies are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 <u>Permits</u>. The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business, the lack of which could reasonably be expected to have a Material Adverse Effect. The Company is not in default in any material respect under any of such franchises, permits, licenses or other similar authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 <u>Corporate Documents</u>. The Certificate of Incorporation and Bylaws of the Company as of the date of this Agreement are in the form made available to the Purchaser. The copy of the minute books of the Company made available to the Purchaser contains minutes of all meetings of directors and stockholders and all actions by written consent without a meeting by the directors and stockholders since the date of incorporation and accurately reflects in all material respects all actions by the directors (and any committee of directors) and stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 <u>Data Privacy.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the collection, storage, use, access, disclosure and/or other processing of any information that constitutes "personal information," "personal data," "personally identifiable information" or analogous term as defined in applicable laws (collectively, "**Personal Information**"), by or on behalf of the Company, to the Company's knowledge, the Company is and has been in compliance in all material respects with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all applicable laws governing privacy or data security in all relevant jurisdictions relating to data loss, data theft, and security breach notification obligations, telephone or text message communications, artificial intelligence and automated decision-making, or marketing by email or other channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company's published privacy policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the privacy or data security requirements of any contracts, codes of conduct, or industry standards by which the Company is legally bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company maintains and has maintained reasonable physical, technical, and administrative security measures and policies designed to protect all Personal Information owned, stored, used, maintained or controlled by or on behalf of the Company from and against unlawful, accidental or unauthorized access, destruction, loss, use, modification, disclosure, and/or other processing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 <u>Healthcare Laws</u>. The Company is and has been in material compliance with all applicable Healthcare Laws. "**Healthcare Laws**" means all applicable federal, state, or local health care laws, each as amended, relating to the regulation of the Company, including but not limited to laws regarding fraud and abuse; kickbacks; self-referrals; fee-splitting; the operation of healthcare provider networks or risk bearing entities; beneficiary inducement, false claims, false billing, false coding, reimbursement, and reassignment; record retention; healthcare professional or entity licensure, qualifications, accreditations, or scope of practice requirements, including the practice of telehealth and healthcare professional supervision; the corporate practice of a learned or licensed healthcare profession; health information privacy laws, including those relating to mental health and substance abuse, including the Health Insurance Portability and Accountability Act of 1996; and all applicable implementing regulations, rules, ordinances, and orders related to any of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 <u>CFIUS Representations</u>. The Company does not engage in (a) the design, fabrication, development, testing, production or manufacture of one or more "critical technologies" within the meaning of the Defense Production Act of 1950, as amended, including all implementing regulations thereof (the "**DPA**"), (b) the ownership, operation, maintenance, supply, manufacture, or servicing of "covered investment critical infrastructure" within the meaning of the DPA (where such activities are covered by column 2 of Appendix A to 31 C.F.R. Part 800) or (c) the maintenance or collection, directly or indirectly, of "sensitive personal data" of U.S. citizens within the meaning of the DPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 <u>Preclinical Development and Clinical Trials</u>. The studies, tests, preclinical development and clinical trials, if any, conducted by or on behalf of the Company are being conducted in all material respects in accordance with experimental protocols, procedures and controls pursuant to accepted professional and scientific standards for products or product candidates comparable to those being developed by the Company and all applicable laws and regulations, including the Federal Food, Drug, and Cosmetic Act and 21 C.F.R. parts 50, 54, 56 and 58. The descriptions of, protocols for, and data and other results of, the studies, tests, development and trials conducted by or on behalf of the Company that have been made available to the Purchaser are accurate and complete in all material respects. The Company has not received any notices or correspondence from the U.S. Food and Drug Administration ("FDA") or any other governmental entity or any institutional review board or comparable authority requiring the termination, suspension or material modification of any studies, tests, preclinical development or clinical trials conducted by or on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 <u>FDA Approvals</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;(a) The Company possesses all required permits, licenses, registrations, certificates, authorizations, orders, exemptions, clearances and approvals from the appropriate federal, state or foreign regulatory authorities necessary to conduct its business as now conducted as required by the FDA or any other federal, state or foreign agencies or bodies engaged in the regulation of drugs, pharmaceuticals, medical devices or biohazardous materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has not received any notice of proceedings relating to the suspension, material modification, revocation or cancellation of any such permit, license, registration, certificate, authorization, order or approval. Neither the Company nor, to the Company's knowledge, any officer, employee or agent of the Company has been convicted of any crime or engaged in any conduct that has previously caused or would reasonably be expected to result in (i) debarment by the FDA under 21 U.S.C. Sections 335a, or disqualification under any similar law, rule or regulation of any other governmental entities, (ii) debarment, suspension, or exclusion under any federal healthcare programs or by the General Services Administration, or (iii) exclusion under 42 U.S.C. Section 1320a-7 or any similar law, rule or regulation of any governmental entities.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither the Company nor any of its officers, employees, or, to the Company's knowledge, any of its contractors or agents is the subject of any pending or threatened investigation by FDA pursuant to its "Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities" policy as stated at 56 Fed. Reg. 46191 (October 10, 1991) (the "**FDA Application Integrity Policy**") and any amendments thereto, or by any other similar governmental entity pursuant to any similar policy.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither the Company nor any of its officers, employees, or to the Company's knowledge, any of its contractors or agents has made any materially false statements on, or material omissions from, any notifications, applications, approvals, reports and other submissions to FDA or any similar governmental entity that would reasonably be expected to provide a basis for FDA to invoke the FDA Application Integrity Policy or for any similar governmental entity to invoke a similar policy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 <u>Sanctions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since the Company's incorporation, the Company has complied in all material respects with applicable laws and regulations pertaining to trade and economic sanctions administered by the United States (collectively, "**Sanctions**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Company, its subsidiaries, or their respective directors, officers, employees, or, to the Company's knowledge, the Company's or subsidiaries' agents is: (i) organized under the laws of, ordinarily resident in, or located in a country or territory that is the subject of comprehensive Sanctions ("**Restricted Countries**"); (ii) 50% or more owned or controlled by the government of a Restricted Country; or (iii) (A) designated on a sanctioned parties list administered by the United States, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control's Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, and Sectoral Sanctions Identification List (collectively, "**Designated Parties**"); or (B) 50% or more owned or, where relevant under applicable Sanctions, controlled, individually or in the aggregate, by one or more Designated Party, in each case only to the extent that dealings with such persons are prohibited pursuant to applicable Sanctions (collectively, "**Sanctioned Parties**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since the Company's incorporation, neither the Company nor any of its officers, directors, or employees: (i) has been the subject or target of any investigation, prosecution, other enforcement action, or government inquiry related to Sanctions violations; or (ii) submitted a voluntary self-disclosure to any U.S. or, to the Company's knowledge, other relevant government agency regarding actual or potential Sanctions violations.

&nbsp;&nbsp;&nbsp;&nbsp;&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 Company maintains policies and procedures reasonably designed to promote compliance with applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 <u>Disclosure</u>. The Company has made available to the Purchaser all the information that the Purchaser have requested for deciding whether to acquire the Shares, including certain of the Company's projections describing its proposed business plan (the "**Business Plan**"). No representation or warranty of the Company contained in this Agreement, as qualified by the Disclosure Schedule, and no certificate furnished or to be furnished to Purchaser at the Closing contains any untrue statement of a material fact or, to the Company's knowledge, omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made. The Business Plan was prepared in good faith; however, the Company does not warrant that it will achieve any results projected in the Business Plan. It is understood that this representation is qualified by the fact that the Company has not delivered to the Purchaser, and has not been requested to deliver, a private placement or similar memorandum or any written disclosure of the types of information customarily furnished to purchasers of securities.

3. <u>Representations and Warranties of the Purchaser</u>. The Purchaser hereby represents and warrants to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Authorization</u>. The Purchaser has full power and authority to enter into the Transaction Agreements. The Transaction Agreements to which the Purchaser is a party, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the Purchaser, enforceable against such Purchaser in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors' rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, or (b) to the extent the indemnification

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provisions contained in the Investors' Rights Agreement may be limited by applicable federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Purchase Entirely for Own Account</u>. This Agreement is made with the Purchaser in reliance upon the Purchaser's representation to the Company, which by the Purchaser's execution of this Agreement, the Purchaser hereby confirms, that the Shares to be acquired by the Purchaser will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Disclosure of Information</u>. The Purchaser has had an opportunity to discuss the Company's business, management, financial affairs and the terms and conditions of the offering of the Shares with the Company's management and has had an opportunity to review the Company's facilities. The foregoing, however, does not limit or modify the representations and warranties of the Company in <u>Section 2</u> of this Agreement or the right of the Purchaser to rely thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Restricted Securities</u>. The Purchaser understands that the Shares have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser's representations as expressed herein. The Purchaser understands that the Shares are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Shares indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Purchaser acknowledges that the Company has no obligation to register or qualify the Shares, or the Common Stock into which it may be converted, for resale except as set forth in the Investors' Rights Agreement. The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Shares, and on requirements relating to the Company which are outside of the Purchaser's control, and which the Company is under no obligation and may not be able to satisfy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>No Public Market</u>. The Purchaser understands that no public market now exists for the Shares, and that the Company has made no assurances that a public market will ever exist for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Legends</u>. The Purchaser understands that the Shares and any securities issued in respect of or exchange for the Shares, may be notated with one or all of the following legends:

&nbsp;&nbsp;&nbsp;&nbsp;&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 SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

&nbsp;&nbsp;&nbsp;&nbsp;&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 legend set forth in, or required by, the other Transaction Agreements.

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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;(c) Any legend required by the securities laws of any state to the extent such laws are applicable to the Shares represented by the certificate, instrument, or book entry so legended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Accredited Investor</u>. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>No Foreign Investors</u>. The Purchaser is a United States person (as defined by Section 7701(a)(30) of the Code). The Purchaser's subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Purchaser's jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Sanctions</u>. Neither the Purchaser, nor any of its officers, directors, employees, agents, stockholders or partners, is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>No General Solicitation</u>. Neither the Purchaser, nor any of its officers, directors, employees, agents, stockholders or partners has either directly or indirectly, including, through a broker or finder, (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and sale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Residence</u>. The office or offices of the Purchaser in which it has its principal place of business is identified in the address or addresses of the Purchaser set forth on the Purchaser's signature page or <u>Exhi</u>bit A.

4. <u>Conditions to the Purchaser's Obligations at Closing</u>. The obligations of the Purchaser to purchase Shares at the Closing is subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived by Purchaser, in their sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Representations and Warranties</u>. The representations and warranties of the Company contained in <u>Section 2</u> shall be true and correct in all respects as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Performance</u>. The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Company in all respects on or before the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Compliance Certificate</u>. The Chief Executive Officer or President of the Company shall deliver to the Purchaser at the Closing a certificate certifying that the conditions specified in <u>Sections 4.1</u> and <u>4.2</u> have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Qualifications</u>. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be obtained and effective as of the applicable Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Board of Directors</u>. As of the Closing, the authorized size of the Board of Directors shall be five (5), and the Board of Directors shall be comprised of Paul Mann, David Baram, Oran Mordechai and Todd Wider (with one (1) vacancy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Indemnification Agreements</u>. The Company shall have executed and delivered each of the Indemnification Agreements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Investors' Rights Agreement</u>. The Company shall have executed and delivered the Investors' Rights Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Right of First Refusal and Co-Sale Agreement</u>. The Company and the other stockholders of the Company named as parties thereto (other than the Purchaser) shall have executed and delivered the Right of First Refusal and Co-Sale Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Voting Agreement</u>. The Company and the other stockholders of the Company named as parties thereto (other than the Purchaser) shall have executed and delivered the Voting Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Restated Certificate</u>. The Company shall have filed the Restated Certificate with the Secretary of State of the State of Delaware on or prior to the Closing, which shall continue to be in full force and effect as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Secretary's Certificate</u>. The Secretary of the Company shall have delivered to the Purchaser at the Closing a certificate certifying: (a) the Certificate of Incorporation and Bylaws of the Company as in effect at the Closing; (b) resolutions of the Board of Directors approving the Restated Certificate, the Transaction Agreements and the transactions contemplated under the Transaction Agreements; and (c) resolutions of the stockholders of the Company approving the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <u>Proceedings and Documents</u>. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents incidental thereto shall be reasonably satisfactory in form and substance to the Purchaser, and the Purchaser (or its respective counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested. Such documents may include good standing certificates.

5. <u>Conditions of the Company's Obligations at Closing</u>. The obligations of the Company to sell Shares to the Purchaser at the Closing are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived by the Company in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Representations and Warranties</u>. The representations and warranties of the Purchaser contained in <u>Section 3</u> shall be true and correct in all respects as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Performance</u>. The Purchaser shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by them on or before the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Qualifications</u>. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be obtained and effective as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Investors' Rights Agreement</u>. The Purchaser shall have executed and delivered the Investors' Rights Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Right of First Refusal and Co-Sale Agreement</u>. The Purchaser and the other stockholders of the Company named as parties thereto shall have executed and delivered the Right of First Refusal and Co-Sale Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Voting Agreement</u>. The Purchaser and the other stockholders of the Company named as parties thereto shall have executed and delivered the Voting Agreement.

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6. <u>Miscellaneous.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Survival of Warranties</u>. Unless otherwise set forth in this Agreement, the representations and warranties of the Company and the Purchaser contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of the Purchaser or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Successors and Assigns</u>. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Governing Law</u>. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via email (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Notices</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;(a) <u>General</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing (including electronic mail as permitted in this Agreement) and shall be deemed effectively given upon the earlier of actual receipt, or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by email during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the signature page or <u>Exhibit A</u>, or to such email address or address as subsequently modified by written notice given in accordance with this <u>Section 6.6</u>. If notice is given to the Company, a copy (which copy shall not constitute notice) shall also be sent to Morgan, Lewis & Bockius LLP, One Federal Street, Boston, Massachusetts 02110-1726, Attention: Michael K. Barron, Esq. Email: michael.barron@morganlewis.com. If notice is given to the Purchaser, a copy (which copy shall not constitute notice) shall also be sent to any "cc" address noted on <u>Exhibit A</u> for such Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Consent to Electronic Notice</u>. The Purchaser consents to the delivery of any stockholder notice pursuant to the DGCL, as amended or superseded from time to time, by email pursuant to Section 232 of the DGCL (or any successor thereto) at the email address set forth below the Purchaser's name on the signature page or <u>Exhibit A</u>, as updated from time to time by notice to the Company. To the extent that any notice given by means of email is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected email address has been provided,

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and such attempted electronic notice shall be ineffective and deemed to not have been given. Each party agrees to promptly notify the other parties of any change in its email address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>No Finder's Fees</u>. Each party represents that it neither is nor will be obligated for any finder's fee or commission in connection with this transaction. Each Purchaser agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Purchaser or any of its officers, employees or representatives is responsible. The Company agrees to indemnify and hold harmless the Purchaser from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Costs of Enforcement</u>. If any action at law or in equity (including, arbitration) is necessary to enforce or interpret the terms of any of the Transaction Agreements, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Amendments and Waivers</u>. Except as otherwise specifically set forth in this Agreement, any term of this Agreement may be amended, terminated or waived only with the written consent of the Company and the Purchaser; <u>provided</u>, <u>however</u>, that any provision of this Agreement may be waived by any waiving party on such party's own behalf, without the consent of any other party. The Company shall give prompt written notice of any amendment, modification, termination, or waiver hereunder to any party that did not consent in writing thereto; provided that the failure to provide such notice shall not invalidate any amendment, termination or waiver hereunder. Any amendment or waiver effected in accordance with this <u>Section 6.9</u> shall be binding upon the Purchaser and each transferee of the Shares (or the Common Stock issuable upon conversion thereof), each future holder of all such securities, and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Entire Agreement</u>. This Agreement (including the Exhibits hereto), the Restated Certificate and the other Transaction Agreements constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Corporate Securities Law</u>. THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF

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FINANCIAL PROTECTION AND INNOVATION OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>Termination of Closing Obligations</u>. The Purchaser shall have the right to terminate its obligations to complete the Closing if prior to the occurrence thereof, any of the following occurs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company consummates a Deemed Liquidation Event (as defined in the Restated Certificate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the closing of an initial public offering of the Company, in which case the Purchaser may terminate their obligations hereunder immediately prior to, or contingent upon, such closing; 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;(c) the Company (i) applies for or consents to the appointment of a receiver, trustee, custodian or liquidator of itself or substantially all of its property, (ii) becomes subject to the appointment of a receiver, trustee, custodian or liquidator of itself or substantially all of its property, (iii) makes an assignment for the benefit of creditors, (iv) institutes any proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally, or files a petition or answer seeking reorganization or an arrangement with creditors to take advantage of any insolvency law, or files an answer admitting the material allegations of a bankruptcy, reorganization or insolvency petition filed against it, or (v) becomes subject to any involuntary proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally, when proceeding is not dismissed within 30 days of filing, or have an order for relief entered against it in any proceedings under the United States Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 <u>Dispute Resolu</u>tion.

The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Delaware or any court of the State of Delaware having subject matter jurisdiction.

Waiver of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER

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HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 <u>Waiver of Conflicts</u>. Each party to this Agreement acknowledges that Morgan, Lewis & Bockius, LLP, counsel for the Company, may have in the past performed, and may continue to or in the future perform, legal services for certain of the Purchaser in matters that are similar, but not substantially related, to the transactions described in this Agreement, including the representation of such Purchaser in venture capital financings and other matters. Accordingly, each party to this Agreement hereby acknowledges that (a) they have had an opportunity to ask for information relevant to this disclosure, and (b) Morgan, Lewis & Bockius, LLP represents only the Company with respect to the Agreement and the transactions contemplated hereby. The Company gives its informed consent to Morgan, Lewis & Bockius, LLP's existing and/or future representation of such Purchaser in matters not substantially related to this Agreement, and such Purchaser give their informed consent to Morgan, Lewis & Bockius, LLP's representation of the Company in connection with this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17 <u>Post-Closing Agreements</u>. Within thirty (30) days after the Closing, the Purchaser and the Company shall, in good faith, negotiate and prepare drafts for each party to review of a supply agreement covering substantially the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall provide the Purchaser with a right of first offer with respect to the supply of medical isotopes for use with any pharmaceutical product developed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Purchaser shall provide the Company with competitive market pricing for such isotopes;

&nbsp;&nbsp;&nbsp;&nbsp;&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 isotopes supplied shall have a product quality that meets or exceeds applicable regulatory standards and is at least equivalent to alternative suppliers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the isotopes supplied shall be delivered on timelines that align with the Company's development and commercialization plans.

[*Signature Pages Follow*]

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IN WITNESS WHEREOF, the parties have executed this Series Seed-1 Preferred Stock Purchase Agreement as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| OPEONGO, INC. | OPEONGO, INC. |
| By: | /s/ David Baram |
| Name: | David Baram |
| Title: | Chief Executive Officer |

---

Address: Opeongo, Inc.2332 Galiano StreetCoral Gables, FL 33134Attention: David BaramEmail: david@opeongo.bio

[*Signature Page to Series Seed-1 Preferred Stock Purchase Agreement*]

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IN WITNESS WHEREOF, the parties have executed this Series Seed-1 Preferred Stock Purchase Agreement as of the date first written above.

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| | |
|:---|:---|
| **PURCHASER:** | **PURCHASER:** |
| ASP ISOTOPES INC. | ASP ISOTOPES INC. |
| By: | /s/ Paul Mann |
| Name: | Paul Mann |
| Title: | Executive Chairman |

---

Address: ASP Isotopes Inc.2200 Ross Avenue, Suite 4575EDallas, Texas 75201Attention: Paul MannEmail: pmann@aspisotopes.com

[*Signature Page to Series Seed-1 Preferred Stock Purchase Agreement*]

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**Exhibit A**

**SCHEDULE OF PURCHASER**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Name and Address of Purchaser** | &nbsp;&nbsp;**Total Cash <br>Purchase Price ($)** | &nbsp;&nbsp;**Shares of Series Seed-1 Preferred Stock** |
| &nbsp;&nbsp;ASP Isotopes Inc.<br>2200 Ross Avenue, Suite 4575E<br>Dallas, TX 75201 | &nbsp;&nbsp;$9999998.19 | &nbsp;&nbsp;4356918 |

---

[*Signature Page to Series Seed-1 Preferred Stock Purchase Agreement*]

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## Exhibit 10.27

**Exhibit 10.27**

**INVESTORS' RIGHTS AGREEMENT**

This Investors' Rights Agreement (this "**Agreement**") is made as of January 26, 2026, by and among Opeongo, Inc., a Delaware corporation (the "**Company**"), ASP Isotopes Inc., a Delaware corporation (the "**Initial Investor**"), the Key Holders (as defined below), Yeda Research and Development Company Limited, a company duly registered under the laws of Israel ("**Yeda**"), and each Person (as defined below) to whom the rights of a party are assigned pursuant to <u>Section 6.1</u>, and each Person who hereafter becomes a party to this Agreement pursuant to <u>Section 6.9</u> (collectively with the Initial Investor, Key Holders and Yeda, the "**Investors**" and, each, individually, an "**Investor**").

**RECITALS**

**WHEREAS**, the Company and the Initial Investor are parties to that certain Series Seed-1 Preferred Stock Purchase Agreement of even date herewith by and between the Company and the Initial Investor (the "**Purchase Agreement**"), under which certain of the Company's and the Initial Investor's obligations are conditioned upon the execution and delivery of this Agreement by the undersigned parties; and

**WHEREAS**, in order to induce the Company to enter into the Purchase Agreement and to induce the Initial Investor to invest funds in the Company pursuant to the Purchase Agreement, the Initial Investor and the Company hereby agree that this Agreement shall govern the rights of the Investors to cause the Company to register shares of Common Stock issuable to the Investors, to receive certain information from the Company, and to participate in future equity offerings by the Company, and shall govern certain other matters as set forth in this Agreement.

**NOW, THEREFORE**, the parties agree as follows:

1. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "**Affiliate**" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or other investment fund now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "**Board of Directors**" means the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "**Certificate of Incorporation**" means the Company's Amended and Restated Certificate of Incorporation, as amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "**Common Stock**" means shares of the Company's common stock, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "**Competitor**" means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in any biotechnology or pharmaceutical company researching, developing or commercializing monoclonal antibodies linked to radioactive isotopes for therapeutic use, but, notwithstanding any other provision in this Agreement shall not include (1) the Initial Investor and its Affiliates, (2) any financial investment firm or collective investment vehicle that, together with its Affiliates, holds less than twenty percent (20%) of the outstanding equity of any Competitor and does not, nor do any of its Affiliates, have a right to designate any members of the board of directors of any

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Competitor and (3) any Person determined by the Board of Directors not to constitute a "Competitor" for the purpose of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "**Damages**" means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "**Deemed Liquidation Event**" shall have the meaning ascribed to it in the Company's Amended and Restated Certificate of Incorporation, as in effect on the date of this Agreement and regardless of the date on which such event occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "**Derivative Securities**" means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "**Direct Listing**" means the initial listing of the Common Stock (or other equity securities of the Company) on the Nasdaq Stock Market, the New York Stock Exchange or another exchange or marketplace approved by the Board of Directors by means of an effective registration statement filed by the Company with the SEC, without a related underwritten offering of such Common Stock (or other equity securities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "**Excluded Registration**" means (i) a registration relating to the sale or grant of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "**Form S-1**" means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "**Form S-3**" means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits forward incorporation of substantial information by reference to other documents filed by the Company with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "**GAAP**" means generally accepted accounting principles in the United States as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "**Holder**" means any holder of Registrable Securities who is a party to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "**Immediate Family Member**" means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, life partner or similar statutorily-recognized domestic partner, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships of a natural person referred to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "**Initiating Holders**" means, collectively, Holders who properly initiate a registration request under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "**IPO**" means the Company's first underwritten public offering of its Common Stock under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "**Key Holder**s" means the persons named on <u>Schedule B</u> hereto and each person to whom the rights of the Key Holder are assigned pursuant to <u>Section 6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "**Key Holders Registrable Securities**" means (i) the shares of Common Stock held by the Key Holders as of the date of this Agreement, and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "**Major Investor**" means any Investor that, individually or together with such Investor's Affiliates, holds at least 871,384 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "**New Securities**" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "**Person**" means any individual, corporation, partnership, trust, limited liability company, association, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "**Preferred Stock**" means, collectively, shares of the Company's Series Seed-1 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "**Registrable Securities**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Common Stock issuable or issued upon conversion of the Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, held by the Investors 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Key Holder Registrable Securities, <u>provided</u>, <u>however</u>, that such Key Holder Registrable Securities shall not be deemed Registrable Securities and the Key Holder shall not be deemed a Holder for the purposes of <u>Section ‎2.1</u> (and any other applicable Section with respect to registrations under <u>Section ‎2.1</u>), <u>Section ‎2.10</u>, <u>Section ‎3.1</u>, <u>Section ‎3.2</u>, <u>Section ‎4.1</u> and <u>Section ‎6.6</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;(iv) the Yeda Registrable Securities, <u>provided</u>, <u>however</u>, that such Yeda Registrable Securities shall not be deemed Registrable Securities and Yeda shall not be deemed a for the purposes of <u>Section ‎2.1</u> (and any other applicable Section with respect to registrations under <u>Section ‎2.1</u>), <u>Section ‎2.10</u>, <u>Section ‎3.1</u>, <u>Section ‎3.2</u>, <u>Section ‎4.1</u> and <u>Section ‎6.6</u>; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in <u>Section 1.26(i)</u>, <u>Section 1.26(ii)</u>, <u>Section 1.26(iii)</u> and <u>Section 1.26(iv)</u> above; excluding in all cases (other than the restrictions on transfer and legend requirements in <u>Section 2.12</u>), <u>however</u>, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to <u>Section 6.1</u>, and excluding for purposes of <u>Section 2</u> any shares for which registration rights have terminated pursuant to <u>Section 2.13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 "**Registrable Securities then outstanding**" means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 "**Requisite Holders**" means (a) prior to the IPO, the Investors holding a majority of the then outstanding shares of Preferred Stock (calculated together as a single class on an as-converted basis), and (b) following the IPO, the Investors holding a majority of the then outstanding shares of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 "**Restricted Securities**" means the securities of the Company required to be notated with the legend set forth in <u>Section 2.12(b)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 "**Sanctioned Party**" means any Person: (i) organized under the laws of, ordinarily resident in, or located in a country or territory that is the subject of comprehensive Sanctions ("**Restricted Countries**"); (ii) 50% or more owned or controlled by the government of a Restricted Country; or (iii) (A) designated on a sanctioned parties list administered by the United States, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control's Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, and Sectoral Sanctions Identification List (collectively, "**Designated Parties**"); or (B) 50% or more owned or, where relevant under applicable Sanctions, controlled, individually or in the aggregate, by one or more Designated Party, in each case only to the extent that dealings with such Person is are prohibited pursuant to applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 "**Sanctions**" means applicable laws and regulations pertaining to trade and economic sanctions administered by the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 "**SEC**" means the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32 "**SEC Rule 144**" means Rule 144 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33 "**SEC Rule 145**" means Rule 145 promulgated by the SEC under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34 "**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35 "**Selling Expenses**" means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in <u>Section 2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36 "**Series Seed-1 Preferred Stock**" means shares of the Company's Series Seed-1 Preferred Stock, par value $0.0001 per share.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37 "**Yeda Registrable Securities**" means (i) the shares of Common Stock held by Yeda as of the date of this Agreement, and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of such shares.

2. <u>Registration Rights</u>. The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Demand Registration.

&nbsp;&nbsp;&nbsp;&nbsp;&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) **Form S-1 Demand**. If at any time after the earlier of (i) five (5) years after the date of this Agreement or (ii) 180 days after the effective date of the registration statement for the IPO or Direct Listing, as applicable, the Company receives a request from Holders of a majority of the Registrable Securities then outstanding that the Company file a Form S-1 registration statement with respect to Registrable Securities then outstanding having an anticipated aggregate offering price, net of Selling Expenses, would exceed $10,000,000), then the Company shall: (x) within ten (10) days after the date such request is given, give notice thereof (the "**Demand Notice**") to all Holders other than the Initiating Holders; and (y) as soon as practicable, and in any event within ninety (90) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within thirty (30) days of the date the Demand Notice is given, and in each case, subject to the limitations of <u>Sections 2.1(c)</u> and <u>2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Form S-3 Demand**. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of the Registrable Securities then outstanding that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $1,000,000, then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within ninety (90) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within thirty (30) days of the date the Demand Notice is given, and in each case, subject to the limitations of <u>Sections 2.1(c)</u> and <u>2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this <u>Section 2.1</u> a certificate signed by the Company's chief executive officer stating that in the good faith judgment of the Board of Directors it would be materially detrimental to the Company for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would: (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90) days after the request of the Initiating Holders is given; <u>provided</u>, <u>however</u>, that the Company may not invoke this right more than once in any twelve (12) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to <u>Section 2.1(a)</u>: (i) during the period that is sixty (60) days before the Company's good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, <u>provided</u> that the Company is actively employing in

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good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) after the Company has effected two registrations pursuant to <u>Section 2.1(a)</u>; or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to <u>Section 2.1(b)</u>. The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to <u>Section 2.1(b)</u>: (I) during the period that is thirty (30) days before the Company's good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, <u>provided</u> that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (II) if the Company has effected two registrations pursuant to <u>Section 2.1(b)</u> within the twelve (12) month period immediately preceding the date of such request. A registration shall not be counted as "effected" for purposes of this <u>Section 2.1(d)</u> until such time as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to <u>Section 2.6</u>, in which case such withdrawn registration statement shall be counted as "effected" for purposes of this <u>Section 2.1(d)</u>; <u>provided</u>, that if such withdrawal is during a period the Company has deferred taking action pursuant to <u>Section 2.1(c)</u>, then the Initiating Holders may withdraw their request for registration and such registration will not be counted as "effected" for purposes of this <u>Section 2.1(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Company Registration</u>. If the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration or a registration pursuant to <u>Section 2.1</u>), the Company shall, at such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of <u>Section 2.3</u>, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this <u>Section 2.2</u> before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with <u>Section 2.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Underwriting Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, pursuant to <u>Section 2.1</u>, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to <u>Section 2.1</u>, and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Board of Directors and shall be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in <u>Section 2.4(e)</u>) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding any other provision of this <u>Section 2.3</u>, if the underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; <u>provided</u>, <u>however</u>, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other

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securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any offering involving an underwriting of shares of the Company's capital stock pursuant to <u>Section 2.2</u>, the Company shall not be required to include any of the Holders' Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below thirty percent (30%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder's securities are included in such offering, or (iii) notwithstanding (ii) above, any Registrable Securities which are not Key Holder Registrable Securities or Yeda Registrable Securities be excluded from such underwriting unless all Key Holder Registrable Securities are first excluded from such offering. For purposes of the provision in this <u>Section 2.3(b)</u> concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such "selling Holder," as defined in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of <u>Section 2.1</u>, a registration shall not be counted as "effected" if, as a result of an exercise of the underwriter's cutback provisions in <u>Section 2.3(a)</u>, fewer than 50% of the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Obligations of the Company</u>. Whenever required under this <u>Section</u> 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

&nbsp;&nbsp;&nbsp;&nbsp;&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) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to 120 days or, if earlier, until the distribution contemplated in the registration statement has been completed; <u>provided</u>, <u>however</u>, that (i) such 120-day period shall be extended for a period of time equal to the period the Holder refrains, at the request

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of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such 120-day period shall be extended for up to an additional 90 days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold;

&nbsp;&nbsp;&nbsp;&nbsp;&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) prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration 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;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; <u>provided</u> that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

&nbsp;&nbsp;&nbsp;&nbsp;&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) use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&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) provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&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) promptly make available for inspection by the selling Holders, any underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company's officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; 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;(j) after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.

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In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company's directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Furnish Information</u>. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this <u>Section 2</u> with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder's Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Expenses of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to <u>Section 2</u>, including all registration, filing, and qualification fees; printers' and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $30,000, of one counsel for the selling Holders selected by Holders of a majority of the Registrable Securities to be registered ("**Selling Holder Counsel**"), shall be borne and paid by the Company; <u>provided</u>, <u>however</u>, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to <u>Section 2.1</u> if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to <u>Sections 2.1(a)</u> or <u>2.1(b)</u>, as the case may be; <u>provided</u> <u>further</u> that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to <u>Sections 2.1(a)</u> or <u>2.1(b)</u>. All Selling Expenses relating to Registrable Securities registered pursuant to this <u>Section 2</u> (other than fees and disbursements of counsel to any Holder, other than the Selling Holder Counsel, which shall be borne solely by the Holder engaging such counsel) shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Delay of Registration</u>. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Indemnification. If any Registrable Securities are included in a registration statement under this <u>Section 2</u> or in connection with a Direct Listing, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; <u>provided</u>, <u>however</u>, that the indemnity agreement contained in this <u>Section 2.8(a)</u> shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information

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furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration except to the extent such information has been corrected in a subsequent writing at least one business day prior to the sale of Registrable Securities to the Person asserting the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration and that has not been corrected in a subsequent writing at least one business day prior to the sale of Registrable Securities to the Person asserting the claim; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; <u>provided</u>, <u>however</u>, that the indemnity agreement contained in this <u>Section 2.8(b)</u> shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and <u>provided further</u> that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under <u>Section 2.8(b)</u> and <u>Section 2.8(d</u>) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under this <u>Section 2.8</u> of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this <u>Section 2.8</u>, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; <u>provided</u>, <u>however</u>, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action.

&nbsp;&nbsp;&nbsp;&nbsp;&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) To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this <u>Section 2.8</u> but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this <u>Section 2.8</u> provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this <u>Section 2.8</u>, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other

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things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; <u>provided</u>, <u>however</u>, that, in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and <u>provided further</u> that in no event shall a Holder's liability pursuant to this <u>Section 2.8(d)</u>, when combined with the amounts paid or payable by such Holder pursuant to <u>Section 2.8(b)</u>, exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control; <u>provided</u>, <u>however</u>, that any matter expressly provided for or addressed by the provisions of this <u>Section 2.8</u> that is not expressly provided for or addressed by the underwriting agreement shall be controlled by the foregoing provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this <u>Section 2.8</u> shall survive the completion of any offering of Registrable Securities in a registration under this <u>Section 2</u>, and otherwise shall survive the termination of this Agreement or any provision(s) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Reports Under Exchange Act</u>. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO or Direct Listing, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); 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;(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request: (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after 90 days after the effective date of the registration statement filed by the Company for the IPO or Direct Listing, as applicable), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Limitations on Subsequent Registration Rights</u>. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Requisite Holders, enter into any agreement

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with any holder or prospective holder of any securities of the Company that would: (i) provide to such holder or prospective holder the right to include securities in any registration on other than either a pro rata basis with respect to the Registrable Securities or on a subordinate basis after all Holders have had the opportunity to include in the registration and offering all shares of Registrable Securities that they wish to so include; or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder; <u>provided</u> that this limitation shall not apply to Registrable Securities acquired by any additional Investor that becomes a party to this Agreement in accordance with <u>Section 6.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 "Market Stand-off" Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company for its own behalf of shares of its Common Stock or any other equity securities under the Securities Act on a registration statement (other than an Excluded Registration) on Form S-1 or Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed 180 days in the case of the IPO or with respect to any offering other than the IPO, the Holders would be subject to a lock-up if requested by the managing underwriter and approved by the Holders of a majority of Registrable Securities), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for such offering or (ii) enter into any swap, hedging, or other transaction or arrangement that transfers, or is designed to transfer, to another, in whole or in part, any of the economic consequences of ownership, directly or indirectly, of such securities, whether or not any such transaction or arrangement described in <u>clause (i</u>) or <u>clause (ii</u>) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this <u>Section 2.11</u> shall apply only to the IPO, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit of the Holder or one or more of the Holder's Immediate Family Members, <u>provided</u> that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and <u>provided further</u> that any such transfer shall not involve a disposition for value, and shall be applicable to the Holders only if all officers and directors of the Company are subject to the same restrictions and the Company uses commercially reasonable efforts to obtain a similar agreement from all stockholders individually owning more than one percent (1%) of the Company's outstanding Common Stock (after giving effect to the conversion into Common Stock of all outstanding Preferred Stock). The underwriters in connection with such registration are intended third-party beneficiaries of this <u>Section 2.11</u> and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this <u>Section 2.11</u>. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Company stockholders that are subject to such agreements, based on the number of shares subject to such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Restrictions on Transfer</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;(a) The Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act and all other applicable U.S. laws and regulations. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement.

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Notwithstanding the foregoing, the Company shall not require any transferee of shares pursuant to an effective registration statement or, following the IPO or Direct Listing, as applicable, SEC Rule 144, in each case, to be bound by the terms of this <u>Section 2.12</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;(b) Each certificate, instrument, or book entry representing (i) the Preferred Stock, (ii) the Registrable Securities, and (iii) any other securities issued in respect of the securities referenced in <u>clause (i)</u> or <u>clause (ii)</u>, upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of <u>Section 2.12(c)</u>) be notated with a legend substantially in the following form:

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this <u>Section 2.12</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;(c) The holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of this <u>Section 2</u>. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction or following the IPO or Direct Listing, as applicable, the transfer is made pursuant to SEC Rule 144, the Holder thereof shall give notice to the Company of such Holder's intention to effect such sale, pledge, or transfer, <u>provided</u> that no such notice shall be required in connection if the intended sale, pledge or transfer complies with SEC Rule 144. Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a notice, legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; <u>provided</u> that with respect to transfers under the foregoing clause (y), each transferee agrees in writing to be subject to the terms of this <u>Section 2.12</u>. Each certificate, instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in <u>Section 2.12(b)</u>, except that such certificate, instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish

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compliance with any provisions of the Securities Act and the Company will use commercially reasonable efforts to cause any such legend to be removed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>Termination and Suspension of Registration Rights.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to <u>Section 2.1</u> or <u>Section 2.2</u> shall terminate, as to such Holder, upon the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the closing of a Deemed Liquidation Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such time after consummation of an IPO or Direct Listing, whichever is earlier, when the Holder (A) together with its "affiliates" (as determined under SEC Rule 144) holds less than 1% of the outstanding capital stock of the Company and (B) may immediately sell all of the Holder's Registrable Securities under SEC Rule 144 without volume limitation, or another similar exemption under the Securities Act is available for the sale of all of such Holder's shares without limitation, during a three-month period without registration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the third anniversary of the IPO or Direct Listing, as applicable, or such later date that is 180 days following the expiration of all deferrals of the Company's obligations pursuant to <u>Section 2</u> that remain in effect as of such anniversary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to <u>Section 2.1</u> or <u>Section 2.2</u> shall be suspended during any time as such Holder is a Sanctioned Party.

3. <u>Information and Observer Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Delivery of Financial Statements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall deliver to each Major Investor, <u>provided</u> that such Major Investor is not a Competitor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) as soon as practicable, but in any event within 180 days after the end of each fiscal year of the Company (A) a balance sheet as of the end of such year, (B) statements of income and of cash flows for such year, and (C) a statement of stockholders' equity as of the end of such year, all such financial statements prepared in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as practicable, but in any event within 45 days after the end of each quarter of each fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance sheet as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (A) be subject to normal year-end audit adjustments; and (B) not contain all notes thereto that may be required in accordance with GAAP);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) as soon as practicable, but in any event within 45 days after the end of each quarter of each fiscal year of the Company, a statement showing the number of shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as soon as practicable, but in any event within 30 days after the end of each month, an unaudited income statement and statement of cash flows for such month, and an unaudited balance sheet as of the end of such month, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) as soon as practicable, the Approved Annual Budget (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall prepare an annual budget and business plan for the next fiscal year, prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months (the "**Budget**"). The Company shall submit the Budget to the Board of Directors for approval and the Budget, as may be revised by the Board of Directors, shall be approved by the Board of Directors ("**Approved Annual Budget**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If reasonably requested by a Major Investor, the Company shall provide the information required by, or reasonably requested pursuant to, this <u>Section 3.1</u> to such Major Investor by uploading the information to a portfolio management platform.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything else in this <u>Section 3.1</u> to the contrary, the Company may cease providing the information set forth in this <u>Section 3.1</u> during the period starting with the date thirty (30) days before the Company's good-faith estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; <u>provided</u> that the Company's covenants under this <u>Section 3.1</u> shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Inspection</u>. The Company shall permit each Major Investor (<u>provided</u> that the Board of Directors has not reasonably determined that such Major Investor is a Competitor), at such Major Investor's expense, to visit and inspect the Company's properties; examine its books of account and records; and discuss the Company's affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor in connection with monitoring or making decisions with respect to its investment in the Company; <u>provided</u>, <u>however</u>, that the Company shall not be obligated pursuant to this <u>Section 3.2</u> to (a) create any new information or materials or (b) provide access to any information that it reasonably and in good faith considers to be a trade secret or confidential information or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Termination of Information Rights. The covenants set forth in <u>Sections 3.1</u> and <u>3.2</u> shall terminate and be of no further force or effect: (a) immediately before the consummation of the IPO or Direct Listing, as applicable; (b) with respect to any Investor that is or becomes a Sanctioned Party, for so long as such Investor is a Sanctioned Party; (c) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act: or (d) upon the closing of a Deemed Liquidation Event, whichever event occurs first; <u>provided</u>, that with respect to clause (d), the covenants set forth in <u>Section 3.1</u> shall only terminate if the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities or if the Investors receive financial information from the acquiring company or other successor to the Company comparable to those set forth in <u>Section 3.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Confidentiality</u>. Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor or make decisions with respect to its investment in the Company) any confidential information obtained from the Company (including notice of the Company's intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this <u>Section 3.4</u> by such Investor), (b) is or has been independently developed or conceived by such Investor without use of the Company's confidential information, or (c) is or has been made known or disclosed to such Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; <u>provided</u>, <u>however</u>, that an Investor may disclose confidential information: (i) to its attorneys, accountants, consultants, and other professionals to the extent reasonably necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser is not a Competitor and agrees to be bound by the provisions of this <u>Section 3.4</u>; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor, in each case, which is not a Competitor, in the ordinary course of business, <u>provided</u> that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, regulation, rule, court order or subpoena, <u>provided</u> that such Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

4. <u>Rights to Future Stock Issuances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Right of First Offer</u>. Subject to the terms and conditions of this <u>Section 4.1</u> and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself, (ii) its Affiliates and (iii) its beneficial interest holders, such as limited partners, members or any other Person having "beneficial ownership," as such term is defined in Rule 13d-3 promulgated under the Exchange Act, of such Major Investor ("**Investor Beneficial Owners**"); <u>provided</u> that each such Affiliate or Investor Beneficial Owner (x) is not a Competitor, unless such party's purchase of New Securities is otherwise expressly consented to by the Board of Directors in writing, and (y) enters into this Agreement and the Voting Agreement of even date herewith among the Company, the Investors and the other parties named therein, as amended and/or restated from time to time (the "**Voting Agreement**"), as an "**Investor**" under each such agreement (<u>provided</u> that any Competitor shall not be entitled to any rights as a Major Investor under <u>Section 3.1</u>, <u>Section 3.2</u> and <u>Section 4.1</u> hereof) and <u>provided</u> that the Company shall not be obligated to offer or sell any New Securities to any person or entity that is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall give notice (the "**Offer Notice**") to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By notification to the Company within 20 days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that (x) the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held by such Major Investor) bears to (y) the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and any other Derivative Securities then outstanding). At the expiration of such 20-day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a "**Fully Exercising Investor**") of any other Major Investor's failure to do likewise. During the ten-day

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period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this <u>Section 4.1(b)</u> shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to <u>Section 4.1(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in <u>Section 4.1(b)</u>, the Company may, during the ninety (90) day period following the expiration of the periods provided in <u>Section 4.1(b)</u>, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this <u>Section 4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The right of first offer in this <u>Section 4.1</u> shall not be applicable to (i) Exempted Securities (as defined in the Certificate of Incorporation); (ii) shares of Common Stock issued in the IPO; (iii) the issuance of shares of Preferred Stock pursuant to the Purchase Agreement; and (iv) any issuance or deemed issuance of New Securities which the Requisite Holders expressly agree in writing to exclude from the right of first offer.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this <u>Section 4.1</u>, the Company may elect to give notice to the Major Investors within 30 days after the issuance of New Securities. Such notice shall describe the type, price, and terms of the New Securities. Each Major Investor shall have 20 days from the date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Investor, maintain such Major Investor's percentage ownership position, calculated as set forth in <u>Section 4.1(b)</u> before giving effect to the issuance of such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Termination</u>. The covenants set forth in <u>Section 4.1</u> shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO or Direct Listing, as applicable, or (ii) upon the closing of a Deemed Liquidation Event in which the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities, or if the Investors receive participation rights from the acquiring company or other successor to the Company reasonably comparable to those set forth in this <u>Section 4</u> whichever event occurs first.

5. <u>Additional Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Employee Agreements</u>. Unless otherwise approved by the Board of Directors, the Company: (a) will cause each Person now or hereafter employed by it or by any subsidiary (or engaged by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade secrets to enter into a nondisclosure, proprietary rights assignment agreement and, to the extent legally permissible, non-competition and non-solicitation agreement; and (b) shall not amend, modify, terminate, waive, or otherwise alter, in whole or in part, any of the above-referenced agreements or any restricted stock agreement between the Company and any employee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Successor Indemnification. If the Company or any of its successors or assignees consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members of the Board of Directors as in effect immediately before such transaction, whether such obligations are contained in the Company's Bylaws, the Certificate of Incorporation, or elsewhere, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Indemnification Matters</u>. The Company hereby acknowledges that one or more of the directors affiliated with one or more Investors ("**Investor Directors**") may have certain rights to indemnification, advancement of expenses and/or insurance provided by one or more of the Investors and certain of their Affiliates (collectively, the "**Investor Indemnitors**"). The Company hereby agrees (a) that it is the indemnitor of first resort (*i.e.*, its obligations to any such Investor Director are primary and any obligation of the Investor Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Investor Director are secondary), (b) that it shall be required to advance the full amount of expenses incurred by such Investor Director and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of any such Investor Director to the extent legally permitted and as required by the Certificate of Incorporation or Bylaws of the Company (or any agreement between the Company and such Investor Director), without regard to any rights such Investor Director may have against the Investor Indemnitors, and (c) that it irrevocably waives, relinquishes and releases the Investor Indemnitors from any and all claims against the Investor Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Investor Indemnitors on behalf of any such Investor Director with respect to any claim for which such Investor Director has sought indemnification from the Company shall affect the foregoing and the Investor Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Investor Director against the Company. The Investor Directors and the Investor Indemnitors are intended third-party beneficiaries of this <u>Section 5.3</u> and shall have the right, power and authority to enforce the provisions of this <u>Section 5.3</u> as though they were a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Right to Conduct Activities. The Company hereby agrees and acknowledges that each Investor that is a venture capital fund or other investment fund (together with its Affiliates) (each, a "**Professional Investment Organization**") is a professional investment organization, and as such reviews the business plans and related proprietary information of many enterprises, some of which may compete directly or indirectly with the Company's business (as currently conducted or as currently propose to be conducted). Nothing in this Agreement shall preclude or in any way restrict the Professional Investment Organization from evaluating or purchasing securities, including publicly traded securities, of a particular enterprise, or investing or participating in any particular enterprise whether or not such enterprise has products or services that compete with those of the Company; and the Company hereby agrees that, to the extent permitted under applicable law, no Professional Investment Organization shall be liable to the Company for any claim arising out of, or based upon, (i) the investment by such Professional Investment Organization in any entity competitive with the Company, or (ii) actions taken by any partner, officer, employee or other representative of such Professional Investment Organization to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; <u>provided</u>, <u>however</u>, that the foregoing shall not contravene the confidentiality obligations in <u>Section 3.4</u> or otherwise in this Agreement or relieve any director or officer of the Company from any liability associated with such person's fiduciary duties to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Termination of Covenants</u>. The covenants set forth in this <u>Section 5</u>, except for <u>Section 5.2</u> and <u>Section 5.3</u>, shall terminate and be of no further force or effect: (i) immediately before the

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consummation of the IPO or Direct Listing, as applicable; (ii) upon a Deemed Liquidation Event, whichever event occurs first; or (iii) with respect to any obligation to an Investor that is or becomes a Sanctioned Party, for so long as such Holder is a Sanctioned Party; <u>provided</u>, that, with respect to <u>clause (ii)</u>, the covenants set forth in <u>Section 5</u> shall only terminate if the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities or if the acquiring company or other successor to the Company agrees to covenants comparable to those set forth in <u>Section 5</u>.

6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Successors and Assigns</u>. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that: (a) is an Affiliate of a Holder; (b) is a Holder's Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder's Immediate Family Members; or (c) after such transfer, together with its Affiliates, would be a Major Investor; <u>provided</u>, <u>however</u>, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of <u>Section 2.11</u>; and (z) such assignee is not a Sanctioned Party. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder's Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder's Immediate Family Member shall be aggregated together and with those of the transferring Holder; <u>provided further</u> that all transferees who would not qualify individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Governing Law. This Agreement and all claims, causes of action, actions, suits, and proceedings (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim, cause of action, action, suit, or proceeding based upon, arising out of, or related to any transaction contemplated by this Agreement, any representation or warranty made in or in connection with this Agreement, or as an inducement to enter into this Agreement) (a "**Dispute**"), shall be governed by, and enforced in accordance with, the internal laws of the State of Delaware, including its statutes of limitations, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via email (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Titles and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Notices</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;(a) <u>General</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing (including email as permitted in this Agreement) and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by email during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on <u>Schedule A</u> hereto, or (as to the Company) to the address set forth on the signature page hereto, or in any case to such email address or address as subsequently modified by written notice given in accordance with this <u>Section 6.5</u>. If notice is given to the Company, a copy (which copy shall not constitute notice) shall also be sent to Morgan, Lewis & Bockius LLP, One Federal Street, Boston, Massachusetts 02110-1726, Attention: Michael K. Barron, Esq., email: michael.barron@morganlewis.com, and if notice is given to any Investor, a copy (which copy shall not constitute notice) shall also be given to any "cc" address noted on <u>Schedule A</u> for such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent to Electronic Notice</u>. Each party to this Agreement consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "**DGCL**"), as amended or superseded from time to time, by email pursuant to Section 232 of the DGCL (or any successor thereto) at the email address set forth below such party's name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books of the Company. To the extent that any notice given by means of email is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected email address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each party to this Agreement agrees to promptly notify the Company of any change in such stockholder's email address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Amendments and Waivers.</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;(a) Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the Requisite Holders; <u>provided</u> that the Company may in its sole discretion waive compliance with <u>Section 2.12(c)</u> (and the Company's failure to object promptly in writing after notification of a proposed assignment allegedly in violation of <u>Section 2.12(c)</u> shall be deemed to be a waiver); and <u>provided further</u> that any provision hereof may be waived by any waiving party on such party's own behalf, without the consent of any other party. For the avoidance of doubt, Registrable Securities do not include any shares held by a Person that is a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding in this Agreement to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) this Agreement may not be amended, modified or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions of <u>Section 4</u> with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction; <u>provided</u>, <u>however</u>, if, after giving effect to any waiver of <u>Section 4.1</u> or any provision pertaining to <u>Section 4.1</u> with respect to a particular transaction, a waiving Major Investor in fact purchases New Securities in such transaction (such Major Investor, a "**Participating Investor**"), the

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aforementioned waiver shall be deemed to apply to any Major Investor only if that Major Investor has been provided the opportunity to purchase a proportional number of the New Securities in such transaction based on the pro rata purchase right of each Major Investor set forth in <u>Section 4.1</u>, assuming a transaction size determined based upon the amount purchased by the Participating Investor that invested the largest percentage in such transaction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company may in its sole discretion waive compliance with any provision of this Agreement if observance of the terms would cause the Company or any Investor to be in violation of applicable Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Sections 3.1</u>, <u>3.2</u>, and <u>4</u> and any other section of this Agreement applicable to the Major Investors (including this <u>Section 6.6(b)(iii)</u>) may be amended, modified, terminated or waived with only (and only with) the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding and held by the Major Investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) This Agreement may not be amended, modified or terminated, and no provision hereof may be waived, in each case, so as to adversely affect the rights and obligations set forth in this Agreement of the Key Holders in a manner that is disproportionately materially adverse to the Key Holders than the manner in which such amendment alters or changes the rights, preferences or privileges of all holders of Common Stock hereunder without the written consent of the Key Holders holding a majority of the shares of Common Stock held by all Key Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) This Agreement may not be amended, modified or terminated, and no provision hereof may be waived, in each case, so as to adversely affect the rights and obligations set forth in this Agreement of Yeda in a manner that is disproportionately materially adverse to Yeda than the manner in which such amendment alters or changes the rights, preferences or privileges of all holders of Common Stock without the written consent of Yeda; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Schedule A</u> hereto may be amended by the Company from time to time to add transferees of any Registrable Securities in compliance with the terms of this Agreement without the consent of the other parties; and <u>Schedule A</u> hereto may also be amended by the Company after the date of this Agreement without the consent of the other parties to add information regarding any additional Investor who becomes a party to this Agreement in accordance with <u>Section 6.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination, or waiver; provided that the failure to provide such notice shall not invalidate any amendment, modification, termination or waiver in accordance with this <u>Section 6.6</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;(d) Any amendment, modification, termination, or waiver effected in accordance with this <u>Section 6.6</u> shall be binding on all parties hereto, regardless of whether any such party has consented 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;(e) No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Severability</u>. In case any provision contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 Aggregation of Stock; Apportionment. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliates may apportion such rights as among themselves in any manner they deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Additional Investors</u>. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Preferred Stock after the date hereof, pursuant to the Purchase Agreement, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering a counterpart signature page to this Agreement, and thereafter shall be deemed an "Investor" for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an "Investor" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 Entire Agreement. This Agreement (including the Exhibits and Schedules hereto) together with the other Transaction Agreements (as defined in the Purchase Agreement) constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between or among any of the parties are expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Dispute Resolution</u>. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Delaware or any court of the State of Delaware having subject matter jurisdiction.

Waiver of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Costs of Enforcement</u>. Each party will bear its own costs in respect of any Disputes arising under this Agreement. The prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or non-defaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

[*Signature Pages Follow*]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| OPEONGO, INC. | OPEONGO, INC. |
| By: | /s/ David Baram |
| Name: | David Baram |
| Title: | Chief Executive Officer |

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Address: Opeongo, Inc.2332 Galiano StreetCoral Gables, FL 33134Attention: David BaramEmail: david@opeongo.bio

[Signature Page to Investors' Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

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| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| ASP ISOTOPES INC. | ASP ISOTOPES INC. |
| By: | /s/ Paul Mann |
| Name: | Paul Mann |
| Title: | Executive Chairman |

---

[Signature Page to Investors' Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| DAVID BARAM | DAVID BARAM |
|  | /s/ David Baram |

---

[Signature Page to Investors' Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| TODD WIDER | TODD WIDER |
|  | /s/ Todd Wider |

---

[Signature Page to Investors' Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| ORAN MORDECHAI | ORAN MORDECHAI |
|  | /s/ Oran Mordechai |

---

[Signature Page to Investors' Rights Agreement]

------

IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| YEDA RESEARCH AND DEVELOPMENT COMPANY LIMITED  | YEDA RESEARCH AND DEVELOPMENT COMPANY LIMITED  |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Irrevocable Proxy, dated as of May 7, 2025 |
|  | /s/ David Baram |

---

[Signature Page to Investors' Rights Agreement]

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IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| DAVID BARAM (IN TRUST FOR IRIT SAGI) | DAVID BARAM (IN TRUST FOR IRIT SAGI) |
|  | /s/ David Baram |

---

[Signature Page to Investors' Rights Agreement]

------

IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| ASAEL HERMAN  | ASAEL HERMAN  |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

---

[Signature Page to Investors' Rights Agreement]

------

IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| SHAHAR AVNI  | SHAHAR AVNI  |
| By: | Dr. David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

---

[Signature Page to Investors' Rights Agreement]

------

IN WITNESS WHEREOF, the parties have executed this Investors' Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **KEY HOLDER:** | **KEY HOLDER:** |
| PAUL MANN  | PAUL MANN  |
|  | /s/ Paul Mann |

---

[Signature Page to Investors' Rights Agreement]

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## Exhibit 10.28

**Exhibit 10.28**

**RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT**

This Right of First Refusal and Co-Sale Agreement (this "**Agreement**") is made as of January 26, 2026, by and among Opeongo, Inc., a Delaware corporation (the "**Company**"), the Investors (as defined below) and the Key Holders (as defined below).

**RECITALS**

**WHEREAS,** each Key Holder is the beneficial owner of shares of Capital Stock (as defined below), or of options to purchase Common Stock (as defined below);

**WHEREAS,** the Company and ASP Isotopes Inc., a Delaware corporation (the "**Initial Investor**"), are parties to that certain Series Seed-1 Preferred Stock Purchase Agreement, of even date herewith (the "**Purchase Agreement**"), pursuant to which the Initial Investor has agreed to purchase shares of Series Seed-1 Preferred Stock of the Company, par value $0.0001 per share ("**Series Seed-1 Preferred Stock**"); and

**WHEREAS**, the Key Holders and the Company desire to further induce the Initial Investor to purchase the Series Seed-1 Preferred Stock.

**NOW, THEREFORE,** the parties agree as follows:

1. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "Affiliate" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or other investment fund now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "Board of Directors" means the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 "Capital Stock" means (a) shares of Common Stock and Preferred Stock (whether now outstanding or hereafter issued in any context), (b) shares of Common Stock issued or issuable upon conversion of Preferred Stock and (c) shares of Common Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities of the Company, in each case now owned or subsequently acquired by any Key Holder, any Investor, or their respective successors or permitted transferees or assigns. For purposes of the number of shares of Capital Stock held by an Investor or Key Holder (or any other calculation based thereon), all shares of Preferred Stock shall be deemed to have been converted into Common Stock at the then-applicable conversion ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 "Change of Control" means a transaction or series of related transactions in which a person, or a group of related persons, acquires from stockholders of the Company shares representing more than 50% of the outstanding voting power of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 "Common Stock" means shares of Common Stock of the Company, $0.0001 par value per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 "Company Notice" means written notice from the Company notifying the selling Key Holders and each Investor that the Company intends to exercise its Secondary Refusal Right as to a portion of the Transfer Stock with respect to any Proposed Key Holder Transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 "Deemed Liquidation Event" has the meaning ascribed to it in the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 "Investor Notice" means written notice from any Investor notifying the Company and the selling Key Holder(s) that such Investor intends to exercise its Right of First Refusal as to some or all of the Transfer Stock with respect to any Proposed Key Holder Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 "Investors" means the Initial Investor, each Person to whom the rights of an Investor are assigned pursuant to <u>Section 6.9</u>, and each Person who hereafter becomes a party to this Agreement pursuant to <u>Section 6.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 "Key Holders" means the persons named on <u>Schedule B</u> hereto, each Person to whom the rights of a Key Holder are assigned pursuant to <u>Section 3.1</u>, each Person who hereafter becomes a party to this Agreement pursuant to <u>Section 6.9</u> or <u>6.17</u> and any one of them, as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 "Person" means any individual, corporation, partnership, trust, limited liability company, association, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 "Preferred Stock" means, collectively, all shares of Series Seed-1 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 "Proposed Key Holder Transfer" means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed by any of the Key Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 "Proposed Transfer Notice" means written notice from a Key Holder setting forth the terms and conditions of a Proposed Key Holder Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 "Prospective Transferee" means any Person to whom a Key Holder proposes to make a Proposed Key Holder Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 "Qualified Direct Listing" has the meaning ascribed to it in the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 "Restated Certificate" means the Company's Amended and Restated Certificate of Incorporation, as amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 "Right of Co-Sale" means the right, but not an obligation, of an Investor to participate in a Proposed Key Holder Transfer on the terms and conditions specified in the Proposed Transfer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 "Right of First Refusal" means the right, but not an obligation, of each Investor, or its permitted transferees or assigns, to purchase some or all of the Transfer Stock with respect to a Proposed Key Holder Transfer on a pro rata basis (based upon the total number of shares of Capital Stock then held by all Investors), on the terms and conditions specified in the Proposed Transfer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 "Sanctioned Party" means any Person: (i) organized under the laws of, ordinarily resident in, or located in a country or territory that is the subject of comprehensive Sanctions ("Restricted Countries"); (ii) 50% or more owned or controlled by the government of a Restricted Country; or (iii) (A) designated on a sanctioned parties list administered by the United States, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control's Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, and Sectoral Sanctions Identification List (collectively, "Designated Parties"); or (B) 50% or more owned or, where relevant under applicable Sanctions, controlled, individually or in the aggregate, by one or more Designated Party, in each case only to the extent that dealings with such Person is are prohibited pursuant to applicable Sanctions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 "Sanctions" means applicable laws and regulations pertaining to trade and economic sanctions administered by the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 "Secondary Notice" means written notice from the Investors notifying the Company and the selling Key Holder that such Investor does not intend to exercise its Right of First Refusal as to all shares of any Transfer Stock with respect to a Proposed Key Holder Transfer, on the terms and conditions specified in the Proposed Transfer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 "Secondary Refusal Right" means the right, but not an obligation, of the Company to purchase a portion of any Transfer Stock not purchased pursuant to the Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 "Transfer Stock" means shares of Capital Stock owned by a Key Holder, or issued to a Key Holder after the date hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), but does not include any shares of Preferred Stock or of Common Stock that are issued or issuable upon conversion of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 "Undersubscription Notice" means written notice from an Investor notifying the Company and the selling Key Holder that such Investor intends to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant to the Right of First Refusal or the Secondary Refusal Right.

2. <u>Agreement Among the Company, the Investors and the Key Holders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Right of First Refusal</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;(a) <u>Grant</u>. Subject to the terms of <u>Section 3</u> below, each Key Holder hereby unconditionally and irrevocably grants to the Investors a Right of First Refusal to purchase all or any portion of Transfer Stock that such Key Holder may propose to include in a Proposed Key Holder Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice</u>. Each Key Holder proposing to make a Proposed Key Holder Transfer must deliver a Proposed Transfer Notice to the Company and each Investor not later than forty-five (45) days prior to the consummation of such Proposed Key Holder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of consideration) of the Proposed Key Holder Transfer, the identity of the Prospective Transferee and the intended date of the Proposed Key Holder Transfer. To exercise its Right of First Refusal under this <u>Section 2</u>, an Investor must deliver an Investor Notice to the selling Key Holder and the Company within 15 days after delivery of the Proposed Transfer Notice (the "**Investor Notice Period**") specifying the number of shares of Transfer Stock to be purchased by each Investor. In the event of a conflict between this Agreement and any other agreement that may have been entered into by a Key Holder with the Investors that contains a preexisting right of first refusal, the Investors and the Key Holder acknowledge and agree that the terms of this Agreement shall control and the preexisting right of first refusal shall be deemed satisfied by compliance with <u>Section 2.1(a)</u> and this <u>Section 2.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Grant of Secondary Refusal Right to the Company</u>. Subject to the terms of <u>Section 3</u> below, each Key Holder hereby unconditionally and irrevocably grants to the Company a Secondary Refusal Right to purchase all or any portion of the Transfer Stock not purchased by the Investors pursuant to the Right of First Refusal, as provided in this <u>Section 2.1(c)</u>. If the Investors do not provide the Investor Notice exercising its Right of First Refusal with respect to all Transfer Stock subject to a Proposed Key Holder Transfer, the Investors must deliver a Secondary Notice to the selling Key Holder and to the Company to that effect no later than 15 days after the selling Key Holder delivers the Proposed Transfer

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Notice to the Investors. To exercise its Secondary Refusal Right, the Company must deliver a Company Notice to the selling Key Holder and the Investors within ten days after the Investors' deadline for its delivery of the Secondary Notice as provided in the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Undersubscription of Transfer Stock</u>. If options to purchase have been exercised by the Investors and the Company pursuant to <u>Section 2.1(b)</u> and <u>Section 2.1(c)</u> with respect to some but not all of the Transfer Stock by the end of the ten day period specified in the last sentence of <u>Section 2.1(c)</u> (the "**Company Notice Period**"), then the Company shall, within five days after the expiration of the Company Notice Period, send written notice (the "**Company Undersubscription Notice**") to those Investors who fully exercised their Right of First Refusal within the Investor Notice Period (the "**Exercising Investors**"). Each Exercising Investor shall, subject to the provisions of this <u>Section 2.1(d)</u>, have an additional option to purchase all or any part of the balance of any such remaining unsubscribed shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer Notice. To exercise such option, an Exercising Investor must deliver an Undersubscription Notice to the selling Key Holder and the Company within ten days after the expiration of the Investor Notice Period. In the event there are two or more such Exercising Investors that choose to exercise the last-mentioned option for a total number of remaining shares in excess of the number available, the remaining shares available for purchase under this <u>Section 2.1(d)</u> shall be allocated to such Exercising Investors pro rata based on the number of shares of Transfer Stock such Exercising Investors have elected to purchase pursuant to the Right of First Refusal (without giving effect to any shares of Transfer Stock that any such Exercising Investor has elected to purchase pursuant to the Company Undersubscription Notice). If the options to purchase the remaining shares are exercised in full by the Exercising Investors, the Company shall immediately notify all of the Exercising Investors and the selling Key Holder of that fact.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Consideration; Closing</u>. If the consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration, the fair market value of the consideration shall be as determined in good faith by the Board of Directors and as set forth in the Investor Notice. If the Company or any Investor for any reason cannot or does not wish to pay for the Transfer Stock in the same form of non-cash consideration, the Company or such Investor may pay the cash value equivalent thereof, as determined in good faith by the Board of Directors and as set forth in the Investor Notice. The closing of the purchase of Transfer Stock by the Company and the Investors shall take place, and all payments from the Company and the Investors shall have been delivered to the selling Key Holder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Key Holder Transfer; and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Right of Co-Sale</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;(a) <u>Exercise of Right</u>. If any Transfer Stock subject to a Proposed Key Holder Transfer is not purchased pursuant to <u>Section 2.1</u> above and thereafter is to be sold to a Prospective Transferee, each respective Investor may elect to exercise its Right of Co-Sale and participate on a pro rata basis in the Proposed Key Holder Transfer as set forth in <u>Section 2.2(b)</u> below and, subject to <u>Section 2.2(d)</u>, otherwise on the same terms and conditions specified in the Proposed Transfer Notice. Each Investor who desires to exercise its Right of Co-Sale (each, a "**Participating Investor**") must give the selling Key Holder written notice to that effect within fifteen (15) days after the deadline for delivery of the Secondary Notice described above, and upon giving such notice such Participating Investor shall be deemed to have effectively exercised the Right of Co-Sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shares Includable</u>. Each Participating Investor may include in the Proposed Key Holder Transfer all or any part of such Participating Investor's Capital Stock equal to the product obtained by multiplying (i) the aggregate number of shares of Transfer Stock subject to the Proposed Key Holder Transfer (excluding shares purchased by the Company or the Participating Investors pursuant to the Right

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of First Refusal or the Secondary Refusal Right) by (ii) a fraction, the numerator of which is the number of shares of Capital Stock owned by such Participating Investor immediately before consummation of the Proposed Key Holder Transfer and the denominator of which is the total number of shares of Capital Stock owned, in the aggregate, by all Participating Investors immediately prior to the consummation of the Proposed Key Holder Transfer , plus the number of shares of Transfer Stock held by the selling Key Holder. To the extent one or more of the Participating Investors exercise such right of participation in accordance with the terms and conditions set forth herein, the number of shares of Transfer Stock that the selling Key Holder may sell in the Proposed Key Holder Transfer shall be correspondingly reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Purchase and Sale Agreement</u>. The Participating Investors and the selling Key Holder agree that the terms and conditions of any Proposed Key Holder Transfer in accordance with this <u>Section 2.2</u> will be memorialized in, and governed by, a written purchase and sale agreement with the Prospective Transferee (the "**Purchase and Sale Agreement**") with customary terms and provisions for such a transaction, and the Participating Investors and the selling Key Holder further covenant and agree to enter into such Purchase and Sale Agreement as a condition precedent to any sale or other transfer in accordance with this <u>Section 2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Allocation of Consideration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to <u>Section 2.2(d)(ii)</u>, the aggregate consideration payable to the Participating Investors and the selling Key Holder shall be allocated based on the number of shares of Capital Stock sold to the Prospective Transferee by each Participating Investor and the selling Key Holder as provided in <u>Section 2.2(b)</u>, <u>provided</u> that if a Participating Investor wishes to sell Preferred Stock, the price set forth in the Proposed Transfer Notice shall be appropriately adjusted based on the conversion ratio of the Preferred Stock into Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that the Proposed Key Holder Transfer constitutes a Change of Control, the terms of the Purchase and Sale Agreement shall provide that the aggregate consideration from such transfer shall be allocated to the Participating Investors and the selling Key Holder in accordance with <u>Sections 2.1</u> and <u>2.2</u> of Article Fourth, Part B of the Restated Certificate and, if applicable, the next sentence as if (A) such transfer were a Deemed Liquidation Event, and (B) the Capital Stock sold in accordance with the Purchase and Sale Agreement were the only Capital Stock outstanding. In the event that a portion of the aggregate consideration payable to the Participating Investor(s) and selling Key Holder is placed into escrow and/or is payable only upon satisfaction of contingencies, the Purchase and Sale Agreement shall provide that (x) the portion of such consideration that is not placed in escrow and is not subject to contingencies (the "**Initial Consideration**") shall be allocated in accordance with <u>Sections 2.1</u> and <u>2.2</u> of Article Fourth, Part B of the Restated Certificate as if the Initial Consideration were the only consideration payable in connection with such transfer, and (y) any additional consideration which becomes payable to the Participating Investor(s) and selling Key Holder upon release from escrow or satisfaction of such contingencies shall be allocated in accordance with <u>Sections 2.1</u> and <u>2.2</u> of Article Fourth, Part B of the Restated Certificate after taking into account the previous payment of the Initial Consideration as part of the same transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Purchase by Selling Key Holder; Deliveries</u>. Notwithstanding <u>Section 2.2(c)</u> above, if any Prospective Transferee(s) refuse(s) to purchase securities subject to the Right of Co-Sale from any Participating Investor or Investors or upon the failure to negotiate in good faith a Purchase and Sale Agreement reasonably satisfactory to the Participating Investors, no Key Holder may sell any Transfer Stock to such Prospective Transferee(s) unless and until, simultaneously with such sale, such Key Holder purchases all securities subject to the Right of Co-Sale from such Participating Investor or Investors on the same terms and conditions (including the proposed purchase price) as set forth in the Proposed Transfer Notice and as provided in <u>Section 2.2(d)(i)</u>; <u>provided</u>*,* <u>however</u>, if such sale constitutes a Change of Control,

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the portion of the aggregate consideration paid by the selling Key Holder to such Participating Investor or Investors shall be made in accordance with the first sentence of <u>Section 2.2(d)(ii)</u>. In connection with such purchase by the selling Key Holder, such Participating Investor or Investors shall deliver to the selling Key Holder any stock certificate or certificates, properly endorsed for transfer, representing the Capital Stock being purchased by the selling Key Holder (or request that the Company effect such transfer in the name of the selling Key Holder). Any such shares transferred to the selling Key Holder will be transferred to the Prospective Transferee against payment therefor in consummation of the sale of the Transfer Stock pursuant to the terms and conditions specified in the Proposed Transfer Notice, and the selling Key Holder shall concurrently therewith remit or direct payment to each such Participating Investor the portion of the aggregate consideration to which each such Participating Investor is entitled by reason of its participation in such sale as provided in this <u>Section 2.2(e)</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;(f) <u>Additional Compliance</u>. If any Proposed Key Holder Transfer is not consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company, the Key Holders proposing the Proposed Key Holder Transfer may not sell any Transfer Stock unless they first comply in full with each provision of this <u>Section 2</u>. The exercise or election not to exercise any right by any Investor hereunder shall not adversely affect its right to participate in any other sales of Transfer Stock subject to this <u>Section 2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Effect of Failure to Comply</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;(a) <u>Transfer Void; Equitable Relief</u>. Any Proposed Key Holder Transfer not made in compliance with the requirements of this Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of Transfer Stock not made in strict compliance with this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Violation of First Refusal Right</u>. If any Key Holder becomes obligated to sell any Transfer Stock to the Company or any Investor under this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, the Company and/or such Investor may, at its option, in addition to all other remedies it may have, send to such Key Holder the purchase price for such Transfer Stock as is herein specified and transfer to the name of the Company or such Investor (or request that the Company effect such transfer in the name of an Investor) on the Company's books any certificates, instruments, or book entry representing the Transfer Stock to be sold.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Violation of Co-Sale Right</u>. If any Key Holder purports to sell any Transfer Stock in contravention of the Right of Co-Sale (a "**Prohibited Transfer**"), each Participating Investor who desires to exercise its Right of Co-Sale under <u>Section 2.2</u> may, in addition to such remedies as may be available by law, in equity or hereunder, require such Key Holder to purchase from such Participating Investor the type and number of shares of Capital Stock that such Participating Investor would have been entitled to sell to the Prospective Transferee had the Prohibited Transfer been effected in compliance with the terms of <u>Section 2.2</u>. The sale will be made on the same terms, including, without limitation, as provided in <u>Section 2.2(d)(i)</u> and the first sentence of <u>Section 2.2(d)(ii)</u>, as applicable, and subject to the same conditions as would have applied had the Key Holder not made the Prohibited Transfer, except that the sale (including, without limitation, the delivery of the purchase price) must be made within ninety (90) days after the Participating Investor learns of the Prohibited Transfer, as opposed to the timeframe proscribed in <u>Section 2.2</u>. Such Key Holder shall also reimburse each Participating Investor for any and all reasonable and

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documented out-of-pocket fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Participating Investor's rights under <u>Section 2.2</u>.

3. <u>Exempt Transfers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Exempt Transfers</u>. Notwithstanding the foregoing or anything to the contrary herein, the provisions of <u>Sections 2.1</u> and <u>2.2</u> shall not apply:(a) in the case of a Key Holder that is an entity, upon a transfer by such Key Holder to its stockholders, members, partners or other equity holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to a repurchase of Transfer Stock from a Key Holder by the Company at a price no greater than that originally paid by such Key Holder for such Transfer Stock and pursuant to an agreement containing vesting and/or repurchase provisions approved by a majority of 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;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of a Key Holder that is a natural person, upon a transfer of Transfer Stock by such Key Holder made for bona fide estate planning purposes, either during such person's lifetime or on death by will or intestacy to such person's spouse, including any life partner or similar statutorily-recognized domestic partner, child (natural or adopted), or any other direct lineal descendant of such Key Holder (or such person's spouse, including any life partner or similar statutorily-recognized domestic partner) (all of the foregoing collectively referred to as "family members"), or any other relative/person approved by a majority of the disinterested members of the Board of Directors, or any custodian or trustee of any trust, partnership, limited liability company or other corporate entity for the benefit of, or the ownership interests of which are owned wholly by such Key Holder or any such family members, including, without limitation, any trustee (whether individual or corporate) appointed pursuant to Israeli law (including the Israeli Income Tax Ordinance or Israeli Succession Law) for bona fide estate, inheritance or tax planning purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) upon a transfer of Transfer Stock by such Key Holder made to a charitable organization for bona fide charitable purposes, either during such person's lifetime or on death by will or intestacy; 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;(e) in the case of a Key Holder that is a trust, upon a transfer of Transfer Stock to the beneficiaries of that trust and to any substitute trust.

<u>provided</u> that, the Key Holder shall deliver prior written notice to the Company and the Investors of such pledge, gift or transfer, such shares of Transfer Stock shall at all times remain subject to the terms and restrictions set forth in this Agreement, and such transferee shall, as a condition to such Transfer, deliver a counterpart signature page to this Agreement as confirmation that such transferee shall be bound by all the terms and conditions of this Agreement as a Key Holder (but only with respect to the securities so transferred to the transferee), including the obligations of a Key Holder with respect to Proposed Key Holder Transfers of such Transfer Stock pursuant to <u>Section 2</u>; and <u>provided</u> <u>further</u> in the case of any transfer pursuant to <u>clause (a)</u>, <u>(c),</u> <u>(d)</u> or (e) above, that such transfer is made pursuant to a transaction in which there is no consideration actually paid for such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Exempted Offerings</u>. Notwithstanding the foregoing or anything to the contrary herein, the provisions of <u>Section 2</u> shall not apply to the sale of any Transfer Stock: (a) to the public in an offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (a "**Public Offering**"); or (b) pursuant to a Deemed Liquidation Event.

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4. <u>Legend</u>. Each certificate, instrument, or book entry representing shares of Transfer Stock held by the Key Holders or issued to any permitted transferee in connection with a transfer permitted by Section 3.1 hereof shall be notated with the following legend:

THE SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION AND CERTAIN OTHER HOLDERS OF STOCK OF THE CORPORATION. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

Each Key Holder agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares notated with the legend referred to in this <u>Section 4</u> to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination of this Agreement at the request of the holder.

5. <u>Lock-Up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Agreement to Lock-Up</u>. Each Key Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to a Public Offering, the registration by the Company of shares of its Common Stock or any other equity securities on a registration statement (other than a Form S-8), and ending on the date specified by the managing underwriter or the Company, as applicable (such period not to exceed 180 days, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in applicable FINRA rules, or any successor provisions or amendments thereto), (a) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock (or other equity securities of the Company) or any securities convertible into or exercisable or exchangeable (directly or indirectly) for such Common Stock (or other equity securities) held or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described in <u>clause (a)</u> or <u>(b)</u> above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. The foregoing provisions of this <u>Section 5</u> shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement or to the establishment of a trading plan pursuant to Rule 10b5-1, <u>provided</u> that such plan does not permit transfers during the restricted period. The Company's underwriters are intended third-party beneficiaries of this <u>Section 5</u> and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Key Holder further agrees to execute such agreements as may be reasonably requested by the underwriters that are consistent with this <u>Section 5</u> or that are necessary to give further effect thereto. In the event a Key Holder is or becomes party to a lock-up or market standoff agreement with the Company or any third party beneficiary of this <u>Section 5.1</u> that contains terms that are more restrictive to the Key Holder, the Key Holder agrees that the Key Holder shall be subject to the more restrictive terms and compliance therewith shall be deemed compliance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Stop Transfer Instructions</u>. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the shares of Capital Stock of each Key Holder (and transferees and assignees thereof) until the end of such restricted period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Survival</u>. Unless and only to the extent otherwise superseded by an underwriting agreement entered into in connection with the underwritten Public Offering, the obligations of the Key

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Holders under this <u>Section 5</u> shall survive the termination of this Agreement or any provision(s) of this Agreement.6. Miscellaneous.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Term</u>. This Agreement shall automatically terminate upon the earlier of (a) immediately prior to the consummation of the Company's initial Public Offering or Qualified Direct Listing, as applicable, and (b) the consummation of a Deemed Liquidation Event in which the consideration received by the Investors in such Deemed Liquidation Event is in the form of cash and/or publicly traded securities, or if the Investors receive substantially similar rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Stock Split</u>. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any stock dividend, split, combination or other recapitalization affecting the Capital Stock occurring after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Ownership</u>. Each Key Holder represents and warrants that such Key Holder is the sole legal and beneficial owner of the shares of Transfer Stock subject to this Agreement and that no other person or entity has any interest in such shares (other than a community property interest as to which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <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;(a) The parties (i) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (ii) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware, and (iii) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Delaware or any court of the State of Delaware having subject matter jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Waiver of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Notices</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;(a) All notices and other communications given or made pursuant to this Agreement shall be in writing (including email as permitted in this Agreement) and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by email during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on <u>Schedule A</u> or <u>Schedule B</u> hereof, as the case may be, or (as to the Company) to the address set forth on the signature page hereto, or in any case to such email address or address as subsequently modified by written notice given in accordance with this <u>Section 6.5</u>. If notice is given to the Company, a copy (which copy shall not constitute notice) shall also be sent to Morgan, Lewis & Bockius LLP, One Federal Street, Boston, Massachusetts 02110-1726, Attention: Michael K. Barron, Esq., email: michael.barron@morganlewis.com, and if notice is given to any Investor, a copy (which copy shall not constitute notice) shall also be given to any "cc" addressed noted on <u>Schedule A</u> for such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent to Electronic Notice</u>. Each party to this Agreement consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "**DGCL**"), as amended or superseded from time to time, by email pursuant to Section 232 of the DGCL (or any successor thereto) at the email address set forth below such party's name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books of the Company. To the extent that any notice given by means of email is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected email address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each party to this Agreement agrees to promptly notify the Company of any change in its email address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Entire Agreement</u>. This Agreement (including the Exhibits and Schedules hereto) together with the other Transaction Agreements (as defined in the Purchase Agreement) constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between or among any of the parties are expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Amendment; Waiver and Termination.</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;(a) This Agreement may be amended, modified or terminated (other than pursuant to <u>Section 6.1</u> above) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the

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Company, (ii) the Key Holders holding a majority of the shares of Transfer Stock then held by all of the Key Holders, and (iii) the holders of at least a majority of the shares of Preferred Stock then held by the Investors (voting as a single separate class and on an as-converted basis); <u>provided</u> that the Company may in its sole discretion waive compliance with any provision of this Agreement if observance of the terms would cause the Company or any Investor to be in violation of applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any amendment, modification, termination or waiver effected in accordance with this <u>Section 6.8</u> shall be binding upon the Company, the Investors, the Key Holders and all of their respective successors and permitted assigns whether or not such party, assignee or other shareholder entered into or approved such amendment, modification, termination or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding <u>Section 6.8(a)</u> above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement may not be amended, modified or terminated and the observance of any term hereunder may not be waived with respect to any Investor or Key Holder without the written consent of such Investor or Key Holder unless such amendment, modification, termination or waiver applies to all Investors and Key Holders, respectively, in the same fashion; <u>provided</u>, <u>however</u>, if, after giving effect to any waiver of <u>Section 2</u> with respect to a particular transaction, a waiving Investor in fact purchases or sells securities in such transaction (a "**Participating Investor**"), the aforementioned waiver shall be deemed to apply to any Investor only if that Investor has been provided the opportunity to purchase or sell a proportional number of the securities in such transaction based on relative participation of all Participating Investors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no consent of any Key Holder shall be required for a waiver of the applicability of the rights provided in <u>Section 2</u> of this Agreement as to any specific Proposed Key Holder Transfer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the consent of the Key Holders shall not be required for any amendment, modification, termination or waiver if such amendment, modification, termination or waiver does not affect the rights and obligations set forth in this Agreement of the Key Holders,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section 2.2</u>, <u>Section 2.3(c)</u>, <u>Section 5</u> and this <u>Section 6.8(d)</u> may not be amended, modified or terminated and the observance of any term hereunder may not be waived without the written consent of Key Holders holding a majority of the shares of Transfer Stock then held by all of the Key Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination or waiver; <u>provided</u> that the failure to provide such notice shall not invalidate any amendment, modification, termination or waiver hereunder; and <u>provided</u> <u>further</u>, for clarity, that no such notice shall be required to be given to any Key Holder for a waiver of the applicability of the rights provided in <u>Section 2</u> of this Agreement as to any specific Proposed Key Holder Transfer that does not involve any Transfer Stock held by such Key Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any amendment, modification, termination, or waiver effected in accordance with this <u>Section 6.8</u> shall be binding on all parties hereto, regardless of whether any such party has consented thereto or received notice thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Assignment of Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&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 successor or permitted assignee of any Key Holder, including any Prospective Transferee who purchases shares of Transfer Stock in accordance with the terms hereof, shall deliver to the Company and the Investors, as a condition to any transfer or assignment, a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&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 of the Investors hereunder are not assignable without the Company's written consent (which shall not be unreasonably withheld, delayed or conditioned), except (i) by an Investor to any Affiliate, or (ii) to an assignee or transferee who acquires at least 871,388 shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), it being acknowledged and agreed that any such assignment, including an assignment contemplated by the preceding <u>clauses (i)</u> or <u>(ii)</u> shall be subject to and conditioned upon any such assignee's delivery to the Company and the other Investors of a counterpart signature page hereto pursuant to which such assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the assignor of such assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations of the Company hereunder may not be assigned under any circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Additional Investors</u>. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company's Preferred Stock after the date hereof, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering a counterpart signature page to this Agreement and thereafter shall be deemed an "Investor" for all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Governing Law</u>. This Agreement and all claims, causes of action, actions, suits, and proceedings (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim, cause of action, action, suit, or proceeding based upon, arising out of, or related to any transaction contemplated by this Agreement, any representation or warranty made in or in connection with this Agreement, or as an inducement to enter into this Agreement) (a "**Dispute**"), shall be governed by, and enforced in accordance with, the internal law of the State of Delaware, including its statutes of limitations, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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Counterparts may be delivered via email (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 <u>Aggregation of Stock</u>. All shares of Capital Stock held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliates may apportion such rights as among themselves in any manner they deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 <u>Specific Performance</u>. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each Investor shall be entitled to specific performance of the agreements and obligations of the Company and the Key Holders hereunder and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17 <u>Additional Key Holders</u>. In the event that after the date of this Agreement, the Company issues shares of Common Stock, or options to purchase Common Stock, to any employee or consultant, which shares or options would collectively constitute with respect to such employee or consultant (taking into account all shares of Common Stock, options and other purchase rights held by such employee or consultant) 1% or more of the Company's then outstanding Common Stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised or converted), the Company shall, as a condition to such issuance, cause such employee or consultant to execute a counterpart signature page hereto as a Key Holder, and such person shall thereby be bound by, and subject to, all the terms and provisions of this Agreement applicable to a Key Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.18 <u>Sanctions</u>. For the avoidance of doubt, at any time that a Person is or becomes a Sanctioned Party, all rights granted to the Person under this Agreement, including, without limitation, any right to purchase any Capital Stock, will be immediately suspended for so long as such Person is a Sanctioned Party or until authorization is issued by a relevant government authority as required by applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.19 <u>Costs of Enforcement</u>. Each party will bear its own costs in respect of any disputes arising under this Agreement. The prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

[*Signature Pages Follow*]

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| OPEONGO, INC. | OPEONGO, INC. |
| By: | /s/ David Baram |
| Name: | David Baram |
| Title: | Chief Executive Officer |

---

Address: Opeongo, Inc.2332 Galiano StreetCoral Gables, FL 33134Attention: David BaramEmail: david@opeongo.bio

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| DAVID BARAM | DAVID BARAM |
|  | /s/ David Baram |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| TODD WIDER | TODD WIDER |
|  | /s/ Todd Wider |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| ORAN MORDECHAI | ORAN MORDECHAI |
|  | /s/ Oran Mordechai |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| DAVID BARAM (IN TRUST FOR IRIT SAGI) | DAVID BARAM (IN TRUST FOR IRIT SAGI) |
|  | /s/ David Baram |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| YEDA RESEARCH AND DEVELOPMENT COMPANY LIMITED  | YEDA RESEARCH AND DEVELOPMENT COMPANY LIMITED  |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Irrevocable Proxy, dated as of May 7, 2025 |
|  | /s/ David Baram |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| ASAEL HERMAN  | ASAEL HERMAN  |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| SHAHAR AVNI  | SHAHAR AVNI  |
| By: | Dr. David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **KEY HOLDERS:** | **KEY HOLDERS:** |
| PAUL MANN  | PAUL MANN  |
|  | /s/ Paul Mann |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

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| | |
|:---|:---|
| **INVESTORS:** | **INVESTORS:** |
| ASP ISOTOPES INC. | ASP ISOTOPES INC. |
| By: | /s/ Paul Mann |
| Name: | Paul Mann |
| Title: | Executive Chairman |

---

Signature Page to Right of First Refusal and Co-Sale Agreement

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## Exhibit 10.29

**Exhibit 10.29**

**VOTING AGREEMENT**

This Voting Agreement (this "**Agreement**") is made as of January 26, 2026, by and among Opeongo, Inc., a Delaware corporation (the "**Company**"), the Investors (as defined below), the Founders (as defined below) and other Stockholders (as defined below).

**RECITALS**

**WHEREAS**, the Company and ASP Isotopes Inc., a Delaware corporation (the "**Initial Investor**"), are parties to that certain Series Seed-1 Preferred Stock Purchase Agreement, of even date herewith (the "**Purchase Agreement**"), under which certain of the Company's and the Initial Investors' obligations are conditioned upon the execution and delivery of this Agreement by the undersigned parties;

**WHEREAS**, as of the date hereof, the Amended and Restated Certificate of Incorporation of the Company (the "**Restated Certificate**") provides that, subject to certain share thresholds: (i) the holders of record of at least a majority of the shares of the Preferred Stock, $0.0001 par value per share, of the Company ("**Preferred Stock**"), exclusively and as a separate class, shall be entitled to elect one director of the Company (the "**Series Seed-1 Director**"); (ii) the holders of record of at least a majority of the shares of common stock, $0.0001 par value per share, of the Company ("**Common Stock**"), exclusively and as a separate class, shall be entitled to elect four directors of the Company (the "**Common Directors**"); and (iii) the holders of record of the shares of Common Stock and of any other class or series of voting stock (including the Preferred Stock), exclusively and voting together as a single class on an as-converted to Common Stock basis, shall be entitled to elect the balance of the total number of directors of the Corporation (if any); and

**WHEREAS**, the parties desire to enter into this Agreement to set forth their agreements and understandings with respect to how shares of the capital stock of the Company held by them will be voted in respect of the Company's Board of Directors (the "**Board**") voted on in connection with an increase in the number of shares of Common Stock required to provide for the conversion of the Preferred Stock.

**NOW, THEREFORE,** the parties agree as follows:

1. <u>Voting Provisions Regarding the Board</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate**" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or other investment fund now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Founders**" means each of the persons named on <u>Schedule B</u> hereto, provided such individual continues to hold at least 80% of the number of shares of Common Stock held by him as of the date of this Agreement (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Investors**" means the persons named on <u>Schedule A</u> hereto, each person who hereafter becomes a party to this Agreement pursuant to <u>Section 7.1(a)</u> and each person to whom the rights of an Investor are assigned pursuant to <u>Section 7.2</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Person**" means any individual, corporation, partnership, trust, limited liability company, association, 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Requisite Holders**" means the holders of at least a majority of the then-outstanding shares of Preferred Stock, calculated together as a single class and on an as-converted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Sale of the Company**" means either: (i) a transaction or series of related transactions in which a Person, or a group of related Persons, acquires from stockholders of the Company shares representing more than 50% of the outstanding voting power of the Company (a "**Stock Sale**"); or (ii) a transaction that qualifies as a "**Deemed Liquidation Event**," as defined in the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Sanctioned Party**" means any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) organized under the laws of, ordinarily resident in, or located in a country or territory that is the subject of comprehensive Sanctions ("**Restricted Countries**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 50% or more owned or controlled by the government of a Restricted Country; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) designated on a sanctioned parties list administered by the United States, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control's Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List, and Sectoral Sanctions Identification List (collectively, "**Designated Parties**"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) 50% or more owned or, where relevant under applicable Sanctions, controlled, individually or in the aggregate, by one or more Designated Party, in each case only to the extent that dealings with such Person are prohibited pursuant to applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Sanctions**" means applicable laws and regulations pertaining to trade and economic sanctions administered by the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Series Seed-1 Preferred Stock**" means shares of the Company's Series Seed-1 Preferred Stock, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Shares**" shall mean and include any securities of the Company that the holders of which are entitled to vote for members of the Board, including, without limitation, all shares of Common Stock and Preferred Stock, by whatever name called, now owned or subsequently acquired by a Stockholder, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Stockholders**" means the Investors, the Founders, and each other holder of Common Stock of the Company that becomes party to this Agreement that is not an Investor or Founder (which other stockholders shall be set forth on <u>Schedule C</u> to this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Any reference in this Agreement to "**vote**" or "**voting**" or similar language shall include, without limitation, action by written consent of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Board Composition</u>. Each Stockholder agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that at each annual or special meeting of

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## stockholders at which an election of directors is held or pursuant to any written consent of the stockholders, subject to <u>Section 5</u>, the following persons shall be elected to the Board:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as the Series Seed-1 Director, one individual designated by holders of at least a majority of the shares of Series Seed-1 Preferred Stock, which individual shall be Paul Mann; <u>provided</u>, <u>however</u>, that for so long as Todd Wider shall be (x) employed or otherwise engaged by the Company and (y) Affiliated with one or more holders of Series Seed-1 Preferred Stock, the Series Seed-1 Director shall not vote, and shall recuse himself or herself from voting, on any matter relating to the compensation of Todd Wider, including, without limitation, his salary, benefits, stock option grants and other compensatory equity awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as the Common Directors, up to four individuals designated by the Founders holding at least a majority of the aggregate number of shares of Common Stock then held by all of the then-current Founders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) one (1) of which shall be the Company's Chief Executive Officer (the "**CEO Director**"), who as of the date of this Agreement is David Baram, <u>provided</u> that if for any reason the CEO Director shall cease to serve as the Chief Executive Officer of the Company, each of the Stockholders shall promptly vote their respective Shares (A) to remove the former Chief Executive Officer from the Board if such person has not resigned from the position of CEO Director and (B) to elect the then-current Chief Executive Officer of the Company to serve as the new CEO Director; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) two (2) of which shall initially be Oran Mordechai and Todd Wider.

For clarity, to the extent that the election of a director pursuant to any of foregoing <u>clause (a)</u> and <u>clause (b)</u> above shall not be applicable, or shall cause the Company to violate applicable Sanctions, any member of the Board who would otherwise have been designated in accordance with the terms thereof shall instead be voted upon by all the stockholders of the Company entitled to vote thereon in accordance with, and pursuant to, the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Vacancies</u>. Any vacancies in the Board shall be filled only pursuant to the provisions of <u>Section 1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Removal of Board Members</u>. Each Stockholder also agrees to vote, or cause to be voted, all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a director elected or serving pursuant to <u>Section 1.2</u>, or reelected pursuant to <u>Section 1.3</u>, shall be promptly removed from office upon the occurrence of any of the following: (i) written request of any Person(s) who would be entitled to designate a replacement for such director pursuant to <u>Section 1.2</u> to remove such director; (ii) written request of stockholders that hold the requisite votes to approve a replacement for such director pursuant to <u>Section 1.2</u> to remove such director; (iii) if such director is no longer entitled or eligible to occupy such Board seat pursuant to the applicable conditions of <u>Section 1.2;</u> or (iv) either the Director or the Person or Entity entitled to designate the Director is a Sanctioned Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no director elected or serving pursuant to <u>Section 1.2</u>, or reelected pursuant to <u>Section 1.3</u>, may be removed from office other than for cause unless (i) such removal is made in accordance with <u>Section 1.4(a)</u>; or (ii) the applicable subsection of <u>Section 1.2</u> is no longer in effect pursuant to its terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Stockholder Action</u>. All Stockholders agree to execute any written consents required to perform the obligations of this <u>Section 1</u>, and the Company agrees to use commercially reasonable efforts to cause to be called a special meeting of stockholders for the purpose of electing, removing or replacing directors upon the written request of (i) any Person entitled to designate a director or (ii) the holders of the requisite number of shares of capital stock entitled to approve a director candidate pursuant to <u>Section 1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>No Liability for Election of Designated or Approved Directors</u>. No Stockholder, nor any Affiliate of any Stockholder, shall have any liability as a result of designating or approving a person for election as a director for any act or omission by such designated or approved person in such person's capacity as a director of the Company, nor shall any Stockholder have any liability as a result of voting for any such designee in accordance with the provisions of this Agreement.

2. <u>Vote to Increase Authorized Common Stock</u>. Each Stockholder agrees to vote or cause to be voted all Shares owned by such Stockholder, or over which such Stockholder has voting control, from time to time and at all times, in whatever manner as shall be necessary to increase the number of authorized shares of Common Stock from time to time to ensure that there will be sufficient shares of Common Stock available for conversion of all of the shares of Preferred Stock outstanding at any given time.

3. <u>Drag-Along Right</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Actions to be Taken</u>. In the event that (i) the holders of at least a majority of the shares of Preferred Stock (the "Selling Investors"), (ii) the Board and (iii) the Founders holding a majority of the outstanding shares of Common Stock then held by all of the then-current Founders, approve a Sale of the Company, which approval specifies that this <u>Section 3</u> shall apply to such transaction, then, subject to satisfaction of each of the conditions set forth in <u>Section 3.2</u> below, each Stockholder and the Company hereby agree:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if such transaction requires stockholder approval, with respect to all Shares that such Stockholder owns or over which such Stockholder otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and approve, such Sale of the Company (together with any related amendment or restatement to the Restated Certificate required to implement such Sale of the Company)and the related definitive agreement(s) pursuant to which the Sale of the Company is to be consummated and to vote in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such transaction is a Stock Sale, to sell the same proportion of shares of capital stock of the Company beneficially held by such Stockholder as is being sold by the Selling Investors to the Person to whom the Selling Investors propose to sell their Shares, and, except as permitted in <u>Section 3.2</u> below, on the same terms and conditions as the other stockholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably be requested by the Company or the Selling Investors in order to carry out the terms and provision of this <u>Section 3</u>, including, without limitation, (i) executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, any associated indemnity agreement, any reasonably customary release agreement in the capacity of a securityholder, termination of investment related documents, accredited investor forms, documents evidencing the removal of board designees as power of attorneys or escrow agreement, any associated voting, support, or joinder agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances), and any similar or related documents and (ii) providing any information reasonably necessary for any public filings with the Securities and Exchange Commission in connection with the Sale of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Shares of the Company owned by such party or Affiliate in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquirer in connection with the Sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to refrain from (i) exercising any dissenters' rights or rights of appraisal under applicable law at any time with respect to such Sale of the Company, or (ii) asserting any claim or commencing, joining or participating in any way (including, without limitation, as a member of a class) in any action, suit or proceeding challenging the Sale of the Company, this Agreement, consummation of the transactions contemplated in connection with the Sale of the Company or this Agreement, including, without limitation, (x) challenging the validity of, or seeking to enjoin the operation of, the definitive agreement(s) with respect to such Sale of the Company or (y) alleging a breach of any fiduciary duty (including, without limitation, aiding and abetting a breach of any fiduciary duty) by the Selling Investors or any Affiliate or associate thereof, the directors of the Company or the acquirer(s) in connection with the Sale of the Company or any action taken thereby with respect to such Sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if the consideration to be paid in exchange for the Shares pursuant to this <u>Section 3</u> includes any securities and due receipt thereof by any Stockholder would require under applicable law: (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities; or (y) the provision to any Stockholder of any information other than such information as a prudent issuer would generally furnish in an offering made solely to "accredited investors" as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the "**Securities Act**"), the Company may cause to be paid to any such Stockholder in lieu thereof, against surrender of the Shares which would have otherwise been sold by such Stockholder, an amount in cash equal to the fair value (as determined in good faith by the Board) of the securities which such Stockholder would otherwise receive as of the date of the issuance of such securities in exchange for the Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in the event that the Selling Investors, in connection with such Sale of the Company, appoint a stockholder representative (the "**Stockholder Representative**") with respect to matters affecting the Stockholders under the applicable definitive transaction agreements following consummation of such Sale of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to consent to (A) the appointment of such Stockholder Representative, (B) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations and (C) the payment of such Stockholder's pro rata portion (from the applicable escrow or expense fund or otherwise) of any and all reasonable fees and expenses to such Stockholder Representative in connection with such Stockholder Representative's services and duties in connection with such Sale of the Company and its related service as the representative of the Stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not to assert any claim or commence any suit against the Stockholder Representative or any other Stockholder with respect to any action or inaction taken or failed to be taken by the Stockholder Representative, within the scope of the Stockholder Representative's authority, in connection with its service as the Stockholder Representative, absent fraud, bad faith, or willful misconduct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Conditions</u>. Notwithstanding anything to the contrary set forth herein, a Stockholder will not be required to comply with <u>Section 3.1</u> above in connection with any proposed Sale of the Company (the "Proposed Sale"), unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any representations and warranties to be made by such Stockholder in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including, but not limited to, representations and warranties that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Stockholder holds all right, title and interest in and to the Shares such Stockholder purports to hold, free and clear of all liens and encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the obligations of the Stockholder in connection with the transaction have been duly authorized, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the documents to be entered into by the Stockholder have been duly executed by the Stockholder and delivered to the acquirer and are enforceable (subject to customary limitations) against the Stockholder in accordance with their respective terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) neither the execution and delivery of documents to be entered into by the Stockholder in connection with the transaction, nor the performance of the Stockholder's obligations thereunder, will cause a breach or violation of the terms of any agreement (including the Company's or such Stockholder's organizational documents) to which the Stockholder is a party, or any law or judgment, order or decree of any court or governmental agency that applies to the Stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Stockholder is not required to agree (unless such Stockholder is a Company officer, director, or employee) to any restrictive covenant in connection with the Proposed Sale (including, without limitation, any covenant not to compete or covenant not to solicit customers, employees or suppliers of any party to the Proposed Sale) or any release of claims other than a release in customary form of claims arising solely in such Stockholder's capacity as a stockholder of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Stockholder and its Affiliates are not required to amend, extend or terminate any contractual or other relationship with the Company, the acquirer or their respective Affiliates, except that the Stockholder may be required to agree to terminate the investment-related documents between or among such Stockholder, the Company and/or other stockholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Stockholder is not liable for the breach of any representation, warranty or covenant made by any other Person in connection with the Proposed Sale, other than the Company (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any stockholder of any of identical representations, warranties and covenants provided by all 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) liability shall be limited to such Stockholder's applicable share (determined based on the respective proceeds payable to each Stockholder in connection with such Proposed Sale in accordance with the provisions of the Restated Certificate) of a negotiated aggregate indemnification amount that in no event exceeds the amount of consideration otherwise payable to such Stockholder in connection with such Proposed Sale in such person's capacity as a stockholder of the Company, except with respect to claims related to fraud by such Stockholder, the liability for which need not be limited as to such Stockholder; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) upon the consummation of the Proposed Sale:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each holder of each class or series of the capital stock of the Company will receive the same form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each holder of a series of Preferred Stock will receive the same amount of consideration per share of such series of Preferred Stock as is received by other holders in respect of their shares of such same series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders in respect of their shares of Common Stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) unless waived pursuant to the terms of the Restated Certificate or as may be required by law, the aggregate consideration receivable by all holders of the Preferred Stock and Common Stock shall be allocated among the holders of Preferred Stock and Common Stock on the basis of the relative liquidation preferences to which the holders of each respective series of Preferred Stock and the holders of Common Stock are entitled in a Deemed Liquidation Event (assuming for this purpose that the Proposed Sale is a Deemed Liquidation Event) in accordance with the Company's Restated Certificate in effect immediately prior to the Proposed Sale;

<u>provided</u>*,* <u>however</u>*,* that, notwithstanding the foregoing provisions of this <u>Section 3.2(f)</u>, if the consideration to be paid in exchange for the Shares held by the Stockholder pursuant to this <u>Section 3.2(f)</u> includes any securities and due receipt thereof by any Stockholder would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (y) the provision to any Stockholder of any information other than such information as a prudent issuer would generally furnish in an offering made solely to "accredited investors" as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Stockholder in lieu thereof, against surrender of the Shares held by the Stockholder, which would have otherwise been sold by such Stockholder, an amount in cash equal to the fair value (as determined in good faith by the Board) of the securities which such Stockholder would otherwise receive as of the date of the issuance of such securities in exchange for the Shares held by the Stockholder; 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;(g) subject to <u>Section 3.2(f)</u> above, requiring the same form of consideration to be available to the holders of any single class or series of capital stock, if any holders of any capital stock of the Company are given an option as to the form and amount of consideration to be received as a result of the Proposed Sale, all holders of such capital stock will be given the same option; <u>provided</u>*,* <u>however</u>, that nothing in this <u>Section 3.2(g)</u> shall entitle any holder to receive any form of consideration that such holder would be ineligible to receive as a result of such holder's failure to satisfy any condition, requirement or limitation that is generally applicable to the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Restrictions on Sales of Control of the Company</u>. No Stockholder shall be a party to any Stock Sale unless (a) all holders of Preferred Stock are allowed to participate in such transaction(s) and (b) the consideration received pursuant to such transaction is allocated among the parties thereto in the manner specified in the Company's Restated Certificate in effect immediately prior to the Stock Sale (as if such transaction(s) were a Deemed Liquidation Event), unless the holders of at least the requisite percentage required to waive treatment of the transaction(s) as a Deemed Liquidation Event pursuant to the terms of the Restated Certificate, elect to allocate the consideration differently by written notice given to the Company at least three (3) days prior to the effective date of any such transaction or series of related transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Effect of Sanctioned Party Status</u>. For clarity, if any Stockholder is a Sanctioned Party, such Stockholder will not be required to take any action described in <u>Section 3.1</u>, and will not be entitled to receive any benefit described in <u>Section 3.2</u>, if such action would cause the Company or any other party to violate applicable Sanctions. The Shares held by such Stockholders shall be disregarded for the purpose of calculating any voting threshold set forth in this Agreement.

4. <u>Additional Agreements; Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Covenants of the Company</u>. In addition to its obligations pursuant to <u>Section 1.5</u> above, the Company covenants and agrees to call a special meeting of stockholders for the purposes of (a) increasing the number of authorized shares of Common Stock as contemplated by <u>Section 2</u>, upon the written request of any holder of Preferred Stock, and (b) approving a Sale of the Company, upon the written request of the Selling Investors in accordance with <u>Section 3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Irrevocable Proxy and Power of Attorney</u>. Each party to this Agreement hereby constitutes and appoints as the proxies of the party and hereby grants a power of attorney to the President of the Company and the Chairperson of the Board and a designee of the Requisite Holders (each, a "Proxyholder"), and each of them, with full power of substitution, with respect to the matters set forth herein, including, without limitation, votes regarding the composition of the Board, and votes to increase authorized shares and votes, waivers, and other actions required to be taken pursuant to Section 3 of this Agreement in connection with a Sale of the Company, and hereby authorizes each of them to represent and vote and take such other actions, if and only if the party (i) fails to vote and take such other actions within five business days after request by the Company, (ii) is prohibited from voting due to Sanctions or other applicable laws, or (iii) attempts to vote (whether by proxy, in person or by written consent) or take actions in a manner which is inconsistent with the terms of this Agreement, all of such party's Shares in favor of the election or removal of persons as members of the Board determined pursuant to and in accordance with the terms and provisions of this Agreement or the increase of authorized shares or approval of any Sale of the Company pursuant to and in accordance with the terms and provisions of this Agreement or to take any action reasonably necessary to effect this Agreement. The power of attorney granted hereunder shall authorize each Proxyholder to execute and deliver any documentation required by this Agreement on behalf of any party failing to do so within five business days after request by the Company. Each of the proxy and power of attorney granted pursuant to this <u>Section 4.2</u> is given in consideration of the agreements and covenants of the Company and the parties in connection with the transactions contemplated by this Agreement and, as such, each is coupled with an interest and shall be irrevocable unless and until this Agreement terminates or expires pursuant to <u>Section 6</u> hereof. Each party hereto hereby revokes any and all previous proxies or powers of attorney with respect to the Shares and shall not hereafter, unless and until this Agreement terminates or expires pursuant to <u>Section 6</u> hereof, purport to grant any other proxy or power of attorney with respect to any of the Shares, deposit any of the Shares into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with any person, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Shares, in each case, with respect to any of the matters set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Specific Enforcement</u>. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly, it is agreed that each of the Company and the Stockholders shall be entitled to an injunction to prevent breaches of this Agreement, and to specific enforcement of this Agreement and its terms and provisions in any action instituted in any court of the United States or any state having subject matter jurisdiction; <u>provided</u> that no party that is regulated as a bank holding company under the Bank Holding Company Act of 1956, as amended, shall have the right to enforce against any Stockholder any provisions of this Agreement that (a) requires a Stockholder to vote for or against any matter or (b) restricts or conditions the ability of a Stockholder to transfer its

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## Shares. Each party to this Agreement agrees to use commercially reasonable efforts to cooperate in seeking and agreeing to an expedited schedule in any litigation seeking an injunction or order of specific performance.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Remedies Cumulative</u>. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

5. <u>"Bad Actor" and Sanctioned Party Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Additional Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Company Covered Person**" means, with respect to the Company as an "issuer" for purposes of Rule 506 promulgated under the Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Disqualified Designee**" means any director designee to whom any Disqualification Event is applicable, except for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Disqualification Event**" means a "bad actor" disqualifying event described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act or any event which results in a director designee becoming a Sanctioned Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Rule 506(d) Related Party**" means, with respect to any Person, any other Person that is a beneficial owner of such first Person's securities for purposes of Rule 506(d) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Representations</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;(a) Each Person with the right to designate or participate in the designation of a director pursuant to this Agreement hereby represents that (i) such Person has exercised reasonable care to determine whether any Disqualification Event is applicable to such Person, any director designee designated by such Person pursuant to this Agreement or any of such Person's Rule 506(d) Related Parties and (ii) no Disqualification Event is applicable to such Person, any Board member designated by such Person pursuant to this Agreement or, to such Person's knowledge, any of such Person's Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. Notwithstanding anything to the contrary in this Agreement, each Investor makes no representation regarding any Person that may be deemed to be a beneficial owner of the Company's voting equity securities held by such Investor solely by virtue of that Person being or becoming a party to (x) this Agreement, as may be subsequently amended, or (y) any other contract or written agreement to which the Company and such Investor are parties regarding (1) the voting power, which includes the power to vote or to direct the voting of, such security; and/or (2) the investment power, which includes the power to dispose, or to direct the disposition of, such security.

&nbsp;&nbsp;&nbsp;&nbsp;&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 hereby represents and warrants to the Investors that no Disqualification Event is applicable to the Company or, to the Company's knowledge, any Company Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii)-(iv) or (d)(3) is applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Covenants</u>. Each Person with the right to designate or participate in the designation of a director pursuant to this Agreement covenants and agrees (i) not to designate or participate in the designation of any director designee who, to such Person's knowledge, is a Disqualified Designee, (ii) to

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## exercise reasonable care to determine whether any director designee designated by such person is a Disqualified Designee, (iii) that in the event such Person becomes aware that any individual previously designated by any such Person is or has become a Disqualified Designee, such Person shall as promptly as practicable take such actions as are necessary to remove such Disqualified Designee from the Board and designate a replacement designee who is not a Disqualified Designee, and (iv) to notify the Company promptly in writing in the event a Disqualification Event becomes applicable to such Person or any of its Rule 506(d) Related Parties, or, to such Person's knowledge, to such Person's initial designee named in <u>Section 1.2</u>, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable.
6. <u>Term</u>. This Agreement shall be effective as of the date hereof and shall continue in effect until and shall terminate upon the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the consummation of the Company's first underwritten public offering of its Common Stock (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to its stock option, stock purchase or similar plan or an SEC Rule 145 transaction), or Qualified Direct Listing (as defined in the Restated Certificate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the consummation of a Sale of the Company and, if applicable, distribution of proceeds to or escrow for the benefit of the Stockholders in accordance with the Restated Certificate, <u>provided</u> that the provisions of <u>Section 3</u> hereof will continue after the closing of any Sale of the Company to the extent necessary to enforce the provisions of <u>Section 3</u> with respect to such Sale of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) termination of this Agreement in accordance with <u>Section 7.8</u> below.

7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Additional Parties</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;(a) Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of Preferred Stock after the date hereof, the Person acquiring such shares of Preferred Stock, as a condition to the issuance of such shares the Company, shall become a party to this Agreement by executing and delivering a counterpart signature page to this Agreement agreeing to be bound by and subject to the terms of this Agreement as an Investor and Stockholder hereunder. Each such Person shall thereafter be deemed an Investor and Stockholder for all purposes under this Agreement. The Company shall amend <u>Schedule A</u> to include such purchaser as an Investor and Stockholder, but failure to update <u>Schedule A</u> shall not negate such Investor's rights and obligations pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that after the date of this Agreement, the Company enters into an agreement with any Person to issue shares of capital stock or options or warrants to purchase shares of capital stock to such Person (other than to a purchaser of Preferred Stock described in <u>Section 7.1(a)</u> above), following which such Person shall hold Shares constituting 1% or more of the then outstanding capital stock of the Company (treating for this purpose all shares of Common Stock issuable upon exercise or conversion of outstanding options, warrants or convertible securities, as if exercised and/or converted or exchanged), then such Person, as a condition precedent to entering into such agreement or acquiring such shares, options, or warrants shall become a party to this Agreement by executing and delivering a counterpart signature page to this Agreement agreeing to be bound by and subject to the terms of this Agreement as a Stockholder. Each such Person shall thereafter be deemed a Stockholder for all purposes under this Agreement. The Company shall amend <u>Schedule C</u> to include such purchaser as Stockholder, but failure to update <u>Schedule C</u> shall not negate such Stockholder's rights and obligations pursuant to this

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Agreement. A Person who becomes party to this Agreement pursuant to this <u>Section 7.1(b)</u> shall solely be a "Stockholder".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Transfers</u>. Each transferee or assignee of any Shares subject to this Agreement shall continue to be subject to the terms hereof, and, as a condition precedent to the Company's recognition of such transfer, each transferee or assignee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering a counterpart signature page in this Agreement, agreeing to be bound by and subject to the terms of this Agreement in the same capacity as the transferor. Upon the execution and delivery of a counterpart signature page to this Agreement by any transferee, such transferee shall be deemed to be a party hereto as if such transferee were the transferor and such transferee's signature appeared on the signature pages of this Agreement and shall be deemed to be an Investor and/ or Stockholder, as applicable. The Company shall not permit the transfer of the Shares subject to this Agreement on its books or issue a new certificate representing any such Shares unless and until such transferee shall have complied with the terms of this <u>Section 7.2</u>. Each certificate instrument, or book entry representing the Shares subject to this Agreement if issued on or after the date of this Agreement shall be notated by the Company with the legend set forth in <u>Section 7.12</u>. The Company shall amend the applicable Schedules to include such transferee as an Investor and/or Stockholder, as applicable, but the Company's failure to update the Schedules to this Agreement shall not negate such Stockholder's rights and obligations pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Successors and Assigns</u>. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties; <u>provided</u>, <u>however</u>, that the rights to designate members of the Board in <u>Sections 1.2(a)-(b)</u> are nontransferable (and shall not be binding upon or inure to the benefit of successors and assigns) other than pursuant to an amendment effected in accordance with <u>Section 7.8</u> below. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Governing Law</u>. This Agreement and all claims, causes of action, actions, suits, and proceedings (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim, cause of action, action, suit, or proceeding based upon, arising out of, or related to any transaction contemplated by this Agreement, any representation or warranty made in or in connection with this Agreement, or as an inducement to enter into this Agreement) (a "Dispute"), shall be governed by, and enforced in accordance with, the internal laws of the State of Delaware, including its statutes of limitations, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via email (including pdf or any electronic signature complying with the U.S. ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Notices</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;(a) <u>General</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing (including email as permitted in this Agreement) and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified; (ii) when sent, if sent by email during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the Schedules to this Agreement, or (as to the Company) to the address set forth on the signature page hereto, or, in any case, to such email address or address as subsequently modified by written notice given in accordance with this <u>Section 7.7</u>. If notice is given to the Company, a copy (which copy shall not constitute notice) shall also be sent to Morgan, Lewis & Bockius LLP, One Federal Street, Boston, Massachusetts 02110-1726, Attention: Michael K. Barron, Esq., email: michael.barron@morganlewis.com, and if notice is given to any Investor, a copy (which copy shall not constitute notice) shall also be given to any "cc" address noted on Schedule A for such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent to Electronic Notice</u>. Each Stockholder consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "**DGCL**"), as amended or superseded from time to time, by email pursuant to Section 232 of the DGCL (or any successor thereto) at the email address set forth below such Stockholder's name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books of the Company. To the extent that any notice given by means of email is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected email address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each Stockholder agrees to promptly notify the Company of any change in its email address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Consent Required to Amend, Modify, Terminate or Waive</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;(a) This Agreement may be amended, modified or terminated (other than pursuant to <u>Section 6</u>) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by: (i) the Company; (ii) the Founders holding a majority of the Shares then held by all of the then-current Founders; and (iii) the Requisite Holders; <u>provided</u> that Shares held by a Sanctioned Party shall be disregarded for the purpose of the calculating the percentages set forth in this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement may not be amended, modified or terminated and the observance of any term of this Agreement may not be waived with respect to any Investor or Founder without the written consent of such Investor or Founder unless such amendment, modification, termination or waiver applies to all Investors or Founders, as the case may be, in the same fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 provisions of <u>Section 1.2(a)</u> and this <u>Section 7.8(b)(ii)</u> may not be amended, modified, terminated or waived without the written consent of the Requisite Holders for so long as holders of Series Seed-1 Preferred Stock continue to have rights pursuant to <u>Section 1.2(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the provisions of <u>Section 1.2(b)</u> and this <u>Section 7.8(b)(iii)</u> may not be amended, modified, terminated or waived without the written consent of the Founders holding at least a majority of the aggregate number of shares of Common Stock then held by all of the then-current Founders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to <u>Section 7.8(b)(iii)</u>, the consent of the Founders shall not be required for any amendment, modification, termination or waiver if such amendment, modification, termination, or waiver does not adversely affect the rights or obligations of the Founders hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Schedules to this Agreement may be amended by the Company from time to time in accordance with <u>Sections 7.1</u> and <u>7.2</u> without the consent of the other parties hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any provision hereof may be waived by the waiving party on such party's own behalf, without the consent of any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall give prompt written notice of any amendment, modification, termination, or waiver hereunder to any party that did not consent in writing 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;(d) Any amendment, modification, termination, or waiver effected in accordance with this <u>Section 7.8</u> shall be binding on each party and all of such party's successors and permitted assigns, whether or not any such party, successor or assignee entered into or approved such amendment, modification, termination or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of this <u>Section 7.8</u>, the requirement of a written instrument may be satisfied in the form of an action by written consent of the Stockholders circulated by the Company and executed by the Stockholder parties specified, whether or not such action by written consent makes explicit reference to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default previously or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <u>Entire Agreement</u>. This Agreement (including the Exhibits and Schedules hereto) together with the Restated Certificate and other Transaction Agreements (as defined in the Purchase Agreement) constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between or among any of the parties are expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <u>Share Certificate Legend</u>. Each certificate, instrument, or book entry representing any Shares issued after the date hereof shall be notated by the Company with a legend reading substantially as follows:

"The Shares REPRESENTED hereby are subject to a Voting Agreement, AS MAY BE AMENDED FROM TIME TO TIME (a copy of which may be obtained upon written request from the Company), and by accepting any interest in such Shares the person accepting

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such interest shall be deemed to agree to and shall become bound by all the provisions of that Voting Agreement, including certain restrictions on transfer and ownership set forth therein."

The Company, by its execution of this Agreement, agrees that it will cause the certificates, instruments, or book entry evidencing the Shares issued after the date hereof to be notated with the legend required by this <u>Section 7.12</u> of this Agreement, and it shall supply, free of charge, a copy of this Agreement to any holder of such Shares upon written request from such holder to the Company at its principal office. The parties to this Agreement do hereby agree that the failure to cause the certificates, instruments, or book entry evidencing the Shares to be notated with the legend required by this <u>Section 7.12</u> herein and/or the failure of the Company to supply, free of charge, a copy of this Agreement as provided hereunder shall not affect the validity or enforcement of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <u>Stock Splits, Dividends and Recapitalizations</u>. In the event of any issuance of Shares or the voting securities of the Company hereafter to any of the Stockholders (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), such Shares shall become subject to this Agreement and shall be notated with the legend set forth in <u>Section 7.12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 <u>Manner of Voting</u>. The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law. For the avoidance of doubt, voting of the Shares pursuant to the Agreement need not make explicit reference to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15 <u>Further Assurances</u>. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to carry out the intent of the parties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16 <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;(a) The parties (i) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (ii) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware, and (iii) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Delaware or any court of the State of Delaware having subject matter jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Waiver of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING,

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WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17 <u>Costs of Enforcement</u>. Each party will bear its own costs in respect of any disputes arising under this Agreement. The prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.18 <u>Aggregation of Stock</u>. All Shares held or acquired by a Stockholder and/or its Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement, and such Affiliates may apportion such rights as among themselves in any manner they deem appropriate.

[*Signature Pages Follow*]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| OPEONGO, INC. | OPEONGO, INC. |
| By: | /s/ David Baram |
| Name: | David Baram |
| Title: | Chief Executive Officer |

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Address: Opeongo, Inc.2332 Galiano StreetCoral Gables, FL 33134Attention: David BaramEmail: david@opeongo.bio

[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **INVESTORS:** | **INVESTORS:** |
| ASP ISOTOPES INC. | ASP ISOTOPES INC. |
| By: | /s/ Paul Mann |
| Name: | Paul Mann |
| Title: | Executive Chairman |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **FOUNDERS:** | **FOUNDERS:** |
| DAVID BARAM | DAVID BARAM |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **FOUNDERS:** | **FOUNDERS:** |
| TODD WIDER | TODD WIDER |
|  | /s/ Todd Wider |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **FOUNDERS:** | **FOUNDERS:** |
| ORAN MORDECHAI | ORAN MORDECHAI |
|  | /s/ Oran Mordechai |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **FOUNDERS:** | **FOUNDERS:** |
| DAVID BARAM (IN TRUST FOR IRIT SAGI) | DAVID BARAM (IN TRUST FOR IRIT SAGI) |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **FOUNDERS:** | **FOUNDERS:** |
| ASAEL HERMAN | ASAEL HERMAN |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and<br>Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| DAVID BARAM | DAVID BARAM |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| TODD WIDER | TODD WIDER |
|  | /s/ Todd Wider |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| ORAN MORDECHAI | ORAN MORDECHAI |
|  | /s/ Oran Modechai |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| DAVID BARAM (IN TRUST FOR IRIT SAGI) | DAVID BARAM (IN TRUST FOR IRIT SAGI) |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| YEDA RESEARCH AND DEVELOPMENT<br>COMPANY LIMITED | YEDA RESEARCH AND DEVELOPMENT<br>COMPANY LIMITED |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Irrevocable<br>Proxy, dated as of May 7, 2025 |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| ASAEL HERMAN | ASAEL HERMAN |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and<br>Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| SHAHAR AVNI | SHAHAR AVNI |
| By: | Dr. David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and<br>Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| KEREN FARIN | KEREN FARIN |
| By: | David Baram |
| Its: | Proxyholder pursuant to that certain Proxy and<br>Power of Attorney, dated as of July 8, 2024 |
|  | /s/ David Baram |

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[Signature Page to Voting Agreement]

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IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.

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| | |
|:---|:---|
| **STOCKHOLDERS:** | **STOCKHOLDERS:** |
| PAUL MANN | PAUL MANN |
|  | /s/ Paul Mann |

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[Signature Page to Voting Agreement]

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## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION PURSUANT TO** 

**SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a)** 

**AS ADOPTED PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Paul E. Mann, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2026 of ASP Isotopes Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 20, 2026 | */s/ Paul E. Mann* |
|  | Paul E. Mann |
|  | *Chief Executive Officer<br>(principal executive officer)* |

---

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## Exhibit 31.2

**EXHIBIT 31.2** 

**CERTIFICATION PURSUANT TO** 

**SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a)** 

**AS ADOPTED PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Heather Kiessling, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2026 of ASP Isotopes Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 20, 2026 | */s/ Heather Kiessling* |
|  | Heather Kiessling |
|  | *Chief Financial Officer* |
|  | *(principal financial officer and principal accounting officer)* |

---

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## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO SECTION 1350, AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of ASP Isotopes Inc. (the "Corporation") on Form 10-Q for the fiscal quarter ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Paul E. Mann, as Chief Executive Officer of the Corporation, and I, Heather Kiessling, as Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

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| | | |
|:---|:---|:---|
| Date: May 20, 2026 | By:  | */s/ Paul E. Mann* |
|  |  | Paul E. Mann<br>Chief Executive Officer |
|  |  | *(Principal Executive Officer)* |

---

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| | | |
|:---|:---|:---|
| Date: May 20, 2026 | By:  | */s/ Heather Kiessling* |
|  |  | Heather Kiessling<br>Chief Financial Officer |
|  |  | *(Principal Financial Officer)* |

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This certification shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of Section 18 of the Exchange Act. Such certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Corporation specifically incorporates it by reference.

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