Document:

Exhibit 10.1

    

    

    

    

    

    

    

    

    

    

    
      	
               

            	
              Services Agreement

              

              

              Verdant Earth Technologies Limited

              ABN 65 624 824 791

              

              

              AND

              

              

              Arthur Phillip Pty Ltd

              ABN 22 747 634 282

            

    

    

    

    

    

    

    

    

    

    

    
      
        

    

    

    

    	
            Table of contents

          	 
	
            Clause

          	
            Page

          
	 	 	 
	
            1

          	
            Definitions and Interpretation

          	
            1

          
	 	 	 
	
            2

          	
            Provision of the Consultancy Services

          	
            3

          
	 	 	 
	
            3

          	
            Term of consultancy

          	
            3

          
	 	
            3.1

          	
            Term

          	
            3

          
	 	
            3.2

          	
            Termination of Consultancy

          	
            3

          
	 	 	 	 
	
            4

          	
            Consultancy Fee and Expenses

          	
            4

          
	 	 	 
	
            5

          	
            Duties and Responsibilities

          	
            5

          
	 	
            5.1

          	
            Due Diligence

          	
            5

            

          
	 	
            5.2

          	
            Compliance with Law

          	
            5

            

          
	 	 	 	 
	
            6

          	
            Independent Contractor

          	
            6

            

          
	 	
            6.1

          	
            Relationship between the Company and the Consultant

          	
            6

            

          
	 	 	 
	
            7

          	
            Confidentiality

          	
            6

            

          
	 	
            7.1

          	
            Obligations of the Consultant

          	
            6

            

          
	 	
            7.2

          	
            Separate restrictions

          	
            7

            

          
	 	
            7.3

          	
            Acknowledgments of Consultant

          	
            7

            

          
	 	
            7.4

          	
            Return of Property

          	
            7

            

          
	 	
            7.5

          	
            Survival of obligations

          	
            7

            

          
	 	 	 
	
            8

          	
            Intellectual Property

          	
            8

            

          
	 	
            8.1

          	
            Intellectual property

          	
            8

            

          
	 	
            8.2

          	
            Survival of obligations

          	
            8

            

          
	 	 	 
	
            9

          	
            General

          	
            8

            

          
	 	
            9.1

          	
            Governing Law

          	
            8

            

          
	 	
            9.2

          	
            Notices

          	
            8

            

          
	 	
            9.3

          	
            Prohibition or enforceability

          	
            8

            

          
	 	
            9.4

          	
            Counterparts

          	
            9

            

          
	 	
            9.5

          	
            Entire agreement

          	
            9

            

          
	 	
            9.6

          	
            No assignment

          	
            9

            

          
	 	
            9.7

          	
            No variation

          	
            9

            

          
	 	
            9.8

          	
            Prior agreements superseded

          	
            9

            

          
	 	
            9.9

          	
            Exercise of the Company’s rights

          	
            9

            

          
	 	 	 
	
            10

          	
            GST

          	
            10

            

          
	 	
            10.1

          	
            Definitions

          	
            10

            

          
	 	
            10.2

          	
            GST to be added to amount payable

          	
            10

            

          
	 	
            10.3

          	
            Impact of GST on calculation of amounts payable

          	
            10

            

          
	 	
            10.4

          	
            Provision of Tax Invoice

          	
            10

            

          
	 	
            10.5

          	
            Provision of Adjustment Note

          	
            10

            

          
	 	 
	
            Schedule 1 – Consultancy Services

          	
            11

            

          
	
            Schedule 2 – Other Current Roles

          	
            12

          
	
            Schedule 3 – Performance Incentive

          	
            12

          

    
      
        

    

    
    
      

    This Agreement

    is made on 18 September 2021 between the following parties:

    

    

    	

          	1.	
            Verdant Earth Technologies Limited

            
              ABN 65 624 827 791

              Level 33, 52 Martin Place Sydney, NSW 2000 (Company)

            

          

    

    	

          	2.	
            Arthur Phillip Pty Ltd

            C/- Level 33, 52 Martin Place Sydney NSW 2000 (Consultant) 

          

    

    

    Recitals

    The Company wishes to engage the Consultant to provide Consultancy Services to the Company on the terms set
      out in this agreement.

    

    

    The parties agree

    in consideration of, among other things, the mutual promises contained in this agreement:

    

    

    
      

    	

          	1	
            Definitions and Interpretation

          

     

    

    In this agreement:

    

    

    Australian GST Law has
      the meaning ascribed to the term “GST Law” in the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

    

    

    Board means the board of
      directors of the Company.

    

    

    Commencement Date means
      the date of acceptance of the Company’s securities to be quoted on the NASDAQ securities exchange, or other date as agreed between the Parties

    

    

    Confidential Information includes:

    

    

    all information (whether oral, in writing or otherwise) of or concerning the Company, and any of its business, assets, or
      intellectual property, including for example any information which is potentially commercially valuable, any information regarding any trade secrets, surveys, maps, mosaics, aerial photographs, electromagnetic tapes, sketches, drawings, memoranda,
      drill cores, logs of such drill cores, geophysical geological and drill maps, sampling and assay reports and notes and other relevant information and data which is not in the public domain (other than as a result of a breach of the Company’s
      confidence), that:

    

    

    	

          	a.	
            comes to the notice of the Recipient in the course of the Disclosure; or

          

    

    

    	

          	b.	
            is created, generated, or contributed to by the Recipient during the course of the Disclosure.

          

    
      1

      
        

    

    

    

    Confidential Information also includes any material, as outlined above, in the possession or under the control of any of the
      Recipient’s officers, contractors, advisers, agents, employees and consultants, whether that material is marked ‘Confidential’ or not.

    

    

    Consultancy means the
      engagement of the Consultant to provide the Consultancy Services, with the primary point of contact being , Mr Richard Poole, to the Company on the terms and conditions set out in this agreement;

    

    

    Consultancy Fee has the
      meaning given in clause 4(b) (1);

    

    

    Consultancy Services means
      the services to be provided by the Consultant pursuant to this agreement and as set out in Schedule 1 of this agreement or otherwise agreed between the parties from time to time;

    

    

    Group means:

    

    

    	

          	(a)	
            the Company;

          

    

    

    	

          	(b)	
            all Related Bodies Corporate of the Company;

          

    

    

    	

          	(c)	
            all directors, and officers of (a) and

          

    

    

    jointly and severally whether located in Australia or elsewhere;

    

    

    Intellectual Property means
      all present and future rights to intellectual property including any inventions and improvements, trademarks (whether registered or common law trade mark), designs, slogans, promotion techniques, copyright in any literary work, any corresponding
      property rights under the laws of any jurisdiction and any rights in respect of any invention, discovery, trade secret, secret process, know-how, concept, idea, information, process, data or formula;

    

    

    Performance Incentive has
      the meaning given in clause 4(b);

    

    

    Related Bodies Corporate has
      the same meaning given to that expression in the Corporations Act 2001 (Cth);

    

    

    Tax Invoice has the
      meaning given in the Australian GST Law;

    

    

    Term means the period until the Consultancy terminates in accordance with clause 3.2 of this agreement;

    

    

    Termination Date means
      the date the Consultancy terminates pursuant to the terms of this agreement.

    

    

    Yearly term  means a
      period of 52 weeks

    
      2

      
        

    

    
      

    2                 Provision of the Consultancy Services

     

      

    	

          	(a)	
            The Company engages the Consultant to provide Consultancy Services to the Company on the terms and conditions set out in this agreement from the date of the
              Company’s securities being accepted to be quoted on the NASDAQ securities exchange – “Commencement Date”.

          

    

    

    	

          	(b)	
            The Consultant must allocate such time in providing the Consultancy Services at the request of the Company as may be required to satisfy the Consultant’s
              obligations under this agreement, which is nominally 5-days per week during the Yearly term.

          

    

    

    	

          	(c)	
            This agreement does not preclude the Consultant from undertaking other roles as long as there is deemed no conflict, acting reasonably. The Consultant will
              notify the Company of any other current roles or intended roles.

          

    

    

    
      

    	

          	3	
            Term of consultancy

          

    

    

    	

          	3.1	
            Term

          

     

    

    The Consultancy will commence on the Commencement Date and will continue between the parties for a period of 5 years subject
      to the termination provisions in this agreement set out at clause 3.2 below, for the Term.

    

    

    	

          	3.2	
            Termination of Consultancy

          

     

    

    	

          	(a)	
            The Consultant may terminate the Consultancy at any time prior to the Termination with twelve months’ notice.

          

    

    

    	

          	(b)	
            The Company may immediately terminate the Consultancy for gross negligence or if the Consultant has any material changes to its staff or if the Consultant
              breaches the terms of the Agreement and does not rectify such breach within 14 days of notification of the breach.

          

    

    

    	

          	(c)	
            This Agreement will terminate, and all terms will be void, if the Company’s securities have not been quoted on the NASDAQ securities exchange by 30 April 2022.

          

    

    

    	

          	(d)	
            Upon termination of the Consultancy:

          

    

    

    	

          	(1)	
            the Consultant will be entitled to receive any balance owing to the Consultant under clause 4 and Schedule 3 as at the Termination Date; and

          

    

    

    	

          	(2)	
            subject to the payment of any outstanding amount under clause 4 and Schedule 3, the Consultant will have no further claim against the Company for compensation
              or any other payment in respect to the Consultancy or the termination.

          

    
      3

      
        

    

    
      

    	

          	4	
            Consultancy Fee and Expenses

          

     

    

    	

          	(a)	
            The Company will:

          

    

    

    	

          	(1)	
            pay the Consultant the agreed Consulting Fee; and

          

    

    

    	

          	(2)	
            pay the Consultant travel expenses at 68c per kilometer for work related travel, or such rate as determined as being deductible for income tax as determined by
              the Australian Tax Office.

          

    

    

    	

          	(3)	
            reimburse the Consultant for all other reasonable approved out-of-pocket expenses properly incurred by the Consultant in providing the Consultancy Services, in
              accordance with this clause 4.

          

    

    

    	

          	(b)	
            The Consultancy Fee will consist of:

          

    

    

    	

          	(1)	
            an amount of US$40,000 per month (Base Fee);

          

    

    

    	

          	(2)	
            an annual bonus payment of up to 150% of the Base Fee (Cash
                Bonus), payable at the discretion of the Board.

          

    

    

    The amount of the Cash Bonus shall be determined by the Board upon considering the performance of the Consultant and/or other
      factors as deemed relevant by the Board.

    

    

    The Cash Bonus is to be assessed annually following the end of the Company’s financial year.

    

    

    The Cash Bonus (if any) is payable within 3 months following the end of the Company’s financial year.

    

    

    Upon Termination, such payment will be made on a pro rata basis.

    

    

    During the Term of the Agreement, the Consultant may elect to take the Cash Bonus in ordinary shares of the Company at a value
      equivalent to the issue price of the ordinary shares immediately prior to the Company being listing on the NASDAQ securities exchange.

    

    

    	

          	(3)	
            a Long term Performance Incentive as detailed in Schedule 3.

          

    
      4

      
        

    

    

    

    	

          	(c)	
            The Consultant must submit to the Company within 5 days of the end of each calendar month:

          

    

    

    	

          	(1)	
            a Tax Invoice for all Consultancy Services during that month and any out-of-pocket expenses;

          

    

    

    	

          	(2)	
            any receipt and invoices reflecting the value of any reasonable out-of-pocket expenses incurred during that month; and

          

    

    

    	

          	(d)	
            The Company will pay the Consultancy Fee and any reimbursement of expenses within fourteen (14) days of the Company receiving the Tax Invoice and any approved
              expense receipts (where applicable).

          

    

    

    	

          	(e)	
            The Company and Consultant will conduct an annual review.

          

    

    

    
      

    	

          	5	
            Duties and Responsibilities

          

     

    

    	

          	5.1	
            Due Diligence

          

    

    

    	

          	(a)	
            The Consultant and its employees and contractors must perform the Consultancy Services with the high degree of professional skill, care, competence and
              diligence expected of a consultant experienced in providing services of the same type as the Consultancy Services. Richard Poole will act in the role of CEO of Verdant Earth and be responsible for the growth and development of the business
              and all other matters traditionally the responsibility of a CEO. Without limiting the generality of the forgoing, in performing the Consultancy Services, the Consultant will have regard to the requirements, control and direction of the
              Company as required or as notified to the Consultant from time to time.

          

    

    

    	

          	(b)	
            The Consultant must notify the Company in writing of any matter connected with the Consultancy Services which may give rise to an actual or potential conflict
              of interest at any time during the performance of the Consultancy Services.

          

    

    

    	

          	5.2	
            Compliance with Law

          

    

    

    	

          	(a)	
            The Consultant agrees, in carrying out this Agreement, to comply with:

          

    

    

    	

          	(i)	
            All relevant legislation of the Commonwealth particularly the Crimes Act 1914, Racial Discrimination Act 1975, Sex Discrimination Act 1984 and Disability
              Discrimination Act 1992), or of any State, Territory or local authority;

          

    

    

    	

          	(ii)	
            Any obligations it has under the Affirmative Action (Equal Employment Opportunity for Women) Act 1986;

          

    

    

    	

          	(iii)	
            Any obligation it has under the Occupational Health and Safety Act legislation; and

          

    

    

    	

          	(iv)	
            Privacy Act 1988;

          

    

    

    	

          	(v)	
            and any other laws relevant to its Consultancy with the Company.

          

    
      5

      
        

    

    
      

    	

          	6	
            Independent Contractor

          

     

    

    	

          	6.1	
            Relationship between the Company and the Consultant

          

    

    

    The Consultant acknowledges and agrees that in providing the Consultancy Services they are an independent contractor and not an
      employee of the Company and that:

    

    

    	

          	(a)	
            No term of the Consultancy, including, without limitation, this Agreement, shall be construed as creating an employee relationship;

          

    

    

    	

          	(b)	
            The Consultant has no claim against the Company for annual leave, sick leave, long service leave, public holidays, superannuation or similar benefits;

          

    

    

    	

          	(c)	
            The Consultant must comply with all laws, regulations and valid directions of any governmental authorities whatsoever, including but not limited to any
              Commonwealth, State or local authority, while performing the consultancy services; and

          

    

    

    	

          	(d)	
            The Consultant will provide evidence of insurance coverage of the Consultant’s employees for workers compensation.

          

    

    

    
      

    	

          	7	
            Confidentiality

          

    

    

    	

          	7.1	
            Obligations of the Consultant

          

    

    

    The Consultant must, during the Term and at any time following the termination of this agreement:

    

    

    	

          	(a)	
            Keep any Confidential Information secret and confidential, except to the extent that the Consultant is required by law to disclose it and to take all reasonable
              and necessary precautions to maintain the secrecy of any Information;

          

    

    

    	

          	(b)	
            Refrain from divulging or disclosing to any other person, firm, corporation or entity any Confidential Information without first obtaining the written consent
              of the Company, except in the ordinary and proper course of providing the Consultancy Services to the Company;

          

    
      6

      
        

    

    

    

    	

          	(c)	
            Refrain from copying, transmitting, retaining or removing any Confidential Information, or attempting to do the same;

          

    

    

    	

          	(d)	
            Refrain from using or attempting to use Confidential Information in any manner which will or may cause or be calculated to cause injury or loss to the Group or
              its clients; and

          

    

    

    	

          	(e)	
            Use their best endeavours to prevent the disclosure of any of the Confidential Information by or to third parties.

          

    

    

    	

          	7.2	
            Separate restrictions

          

    

    

    The restrictions in this clause will be regarded as separate, distinct and severable so that the unenforceability of any
      restriction shall in no way affect the enforceability of any other restriction.

    

    

    	

          	7.3	
            Acknowledgments of Consultant

          

    

    

    The Consultant acknowledges and agrees that:

    

    

    	

          	(a)	
            The Consultant will become possessed of Confidential Information;

          

    

    

    	

          	(b)	
            Disclosure of such Confidential Information may diminish the value of the Confidential Information and could materially harm the Group;

          

    

    

    	

          	(c)	
            The restrictions in this clause 7 are reasonable in all the circumstances and necessary to protect the goodwill of the Group; and

          

    

    

    	

          	(d)	
            The remedy of damages may be inadequate to protect the interests of the Group and the Group is entitled to seek and obtain injunctive relief, or any other
              relief.

          

    

    

    	

          	7.4	
            Return of Property

          

    

    

    On termination of the Consultancy, the Consultant must return to the Company all tangible property of the Group in his
      possession or under his control including but not limited to all original and copies of documents, records, papers, materials, files, computer files, client presentations, client lists, correspondence and any other property obtained from the Company
      in connection with the Consultancy.

    

    

    	

          	7.5	
            Survival of obligations

          

    

    

    The obligations of the Consultant under this clause survive the termination of the Consultancy for any reason.

    
      7

      
        

    

    
      

    	

          	8	
            Intellectual Property

          

     

    

    	

          	8.1	
            Intellectual property

          

    

    

    	

          	(a)	
            Subject to any express written agreement to the contrary, all Intellectual Property created by the Consultant or in the course of the Consultancy automatically
              vests in the Company.

          

    

    

    	

          	(b)	
            The Consultant acknowledges that the Company is the owner of all rights in any Intellectual Property devised or developed by them in the course of the
              Consultancy, whether or not reduced to or evidenced in writing.

          

    

    

    	

          	(c)	
            The Consultant must not use any such Intellectual Property after the Termination Date for any reason, nor disclose that Intellectual Property, in whole or in
              part, to any third person prior to it being made public by the Company.

          

    

    

    	

          	8.2	
            Survival of obligations

          

    

    

    The obligations of the Consultant under this clause 8 survive the termination of this agreement.

    

    

    
      

    	

          	9	
            General

          

     

    

    	

          	9.1	
            Governing Law

          

    

    

    This agreement is governed by and is to be construed in accordance with the law in force in Western Australia, and each party
      irrevocably and unconditionally submits to the exclusive jurisdiction of the courts of New South Wales.

    

    

    	

          	9.2	
            Notices

          

    

    

    Any notice or other communication to or by a party to this agreement must be in writing addressed as shown at the commencement
      of this agreement or as specified to the sender by any party by notice and may be delivered by hand, sent by prepaid post or sent by facsimile transmission.

    

    

    	

          	9.3	
            Prohibition or enforceability

          

    

    

    	

          	(a)	
            In the event of the invalidity, illegality or unenforceability of any part or provision of this agreement, that invalidity, illegality or unenforceability will
              not affect the remaining provisions of this agreement and the part or provision being invalid, illegal or unenforceable will be severed from the remaining provisions of this agreement.

          

    

    

    	

          	(b)	
            Any provision of, or the application of any provision of, this agreement which is prohibited in any jurisdiction is, in that jurisdiction, ineffective only to
              the extent of that prohibition.

          

    
      8

      
        

    

    

    

    	

          	(c)	
            Any provision of, or the application of any provision of this agreement, which is void, illegal or unenforceable in any jurisdiction does not affect the
              validity, legality or enforceability of that provision in any other jurisdiction or of the remaining provisions of this agreement in that or any other jurisdiction.

          

    

    

    	

          	9.4	
            Counterparts

          

    

    

    	

          	(a)	
            This agreement may be executed in any number of counterparts.

          

    

    

    	

          	(b)	
            All counterparts, taken together, constitute one instrument.

          

    

    

    	

          	(c)	
            A party may execute this agreement by executing any counterpart.

          

    

    

    	

          	9.5	
            Entire agreement

          

    

    

    	

          	(a)	
            This agreement constitutes the entire agreement of the parties in respect of the matters dealt with in this agreement and supersedes all prior agreements,
              understandings and negotiations in respect of the matters dealt with in this agreement.

          

    

    

    	

          	(b)	
            The parties consider the obligations and restrictions in this agreement to be reasonable in all the circumstances.

          

    

    

    	

          	9.6	
            No assignment

          

    

    

    The Consultant must not assign any of his rights or obligations under this agreement or subcontract the performance of any of
      the Consultancy Services without the Company’s prior written consent.

    

    

    	

          	9.7	
            No variation

          

    

    

    This agreement may not be changed or modified in any way subsequent to its execution except in writing signed by all the
      parties.

    

    

    	

          	9.8	
            Prior agreements superseded

          

    

    

    This agreement is to be effective in conjunction with the Letter of appointment as Executive Chairman and supersedes and
      replaces any prior written or verbal consultancy agreement between the parties.

    

    

    	

          	9.9	
            Exercise of the Company’s rights

          

    

    

    	

          	(a)	
            Failure or omission by the Company at any time to enforce or require strict or timely compliance with any provision of this agreement will not affect or impair
              that provision in any way or the rights of the Company to avail itself of the remedies it may have in respect of any breach of any such provision.

          

    

    

    	

          	(b)	
            The Company executes this agreement as the agent and trustee for the Group and holds the rights of each member of the Group on trust. The parties acknowledge
              and agree that each of the members of the Group may independently enforce this agreement against the Consultant.

          

    
      9

      
        

    

    
      

    	

          	10	
            GST

          

    

    

    	

          	10.1	
            Definitions

          

     

    

    In this clause 10, the expressions GST, Input Tax Credit, Supply, Tax Invoice and Taxable Supply have the meanings given to those expressions
      in the Australian GST Law.

    

    

    	

          	10.2	
            GST to be added to amount payable

          

    

    

    Unless otherwise expressly stated, all amounts payable under this agreement are expressed to be exclusive of GST. If GST is
      payable on a Taxable Supply, the amount payable for that Taxable Supply will be the amount expressed in this agreement plus GST.

    

    

    	

          	10.3	
            Impact of GST on calculation of amounts payable

          

    

    

    Without limiting clause 10, if an amount payable under this agreement is calculated by reference to a liability incurred by a
      party, then the liability must be reduced by the  amount of any Input Tax Credit to which that party is entitled in respect of that liability. A party will be assumed to be entitled to a full Input Tax Credit unless it demonstrates that its
      entitlement is otherwise prior to the date on which payment must be made.

    

    

    	

          	10.4	
            Provision of Tax Invoice

          

    

    

    A party receiving a Taxable Supply (the Recipient) is not required to pay an amount on account of GST under clause 10 to the party making the Taxable Supply (the Supplier) until the Supplier has provided the Recipient with a Tax Invoice in respect of that Taxable Supply.

    

    

    	

          	10.5	
            Provision of Adjustment Note

          

    

    

    If an Adjustment Event arises in connection with a supply made under this agreement, the supplier must give the other party an
      Adjustment Note in accordance with the Australian GST Law.

    
      10

      
        

    

    
      

    Schedule 1 – Consultancy Services

    

    

    The Services to be provided under this Consultancy Agreement are to act in the role of Chief Executive Officer of the Company will
      duties and responsibilities as defined by the Board, including.

    

    

    	1	
            Be directly and fully responsible for all operations of the Group in accordance with the authority delegated by the Board or its nominee;

          

    

    

    	2	
            Work closely with the Board to develop the Group’s business;

          

    

    

    	3	
            Develop operations of the Group to ensure production efficiency, quality, service and cost effective management of resources;

          

    

    

    	4	
            Develop and implement strategic plans to advance the mission and objectives of the Company and relevant Related Entities to promote revenue, profitability and
              growth as a group;

          

    

    

    	5	
            Provide sound business advice to the Board on strategic business decisions;

          

    

    

    	6	
            Ensure the soundness of the Group’s financial structure by review of projections for capital infrastructure and financing arrangements, which may result from
              various strategic decisions;

          

    

    

    	7	
            Develop and oversee the Group’s business operational procedures, policies and standards;

          

    

    

    	8	
            Monitor and measure key personnel performance;

          

    

    

    	9	
            Develop and maintain effective communication systems for the Employer and throughout the Group;

          

    

    

    	10	
            Represent the Employer and the Group in dealings with major customers, financial institutions, government bodies and other key stakeholders; and

          

    

    

    	11	
            Review and approve (where required under the Group’s policies) all contractual arrangements, including the appointment and termination of all personnel.

          

    
      11

      
        

    

    
      

    Schedule 2 – Other Current Roles

    

    

    Director and Consultant at Arthur Phillip Pty Ltd and related entities.

    

    

    Director and Consultant at Resources and Energy Group Limited and related entities.

    

    

    

    
      

    Schedule 3 – Performance Incentive

    

    

    The Consultant will be issued securities of the Company with appropriate performance conditions from time to time as determined by
      the Board

    
      12

      
        

    

    

    

    Executed by:

    

    

    Arthur Phillip Limited

    

    

    

    

    /s/ Richard Poole

    
      .................................

    

    Richard Poole, Director

    

    

    

    

    Verdant Earth Technologies Limited

    

    

    

    

    /s/ James Myatt

    
      .................................

    

    

    James Myatt, Director

    

    

  

  

  13Exhibit 10.2

    

    

    BINDING OPTION  AGREEMENT

    

    

    PRIVATE AND CONFIDENTIAL

    

    

    Biogreen Energy Pty Ltd (ACN 608 060 984) (Blogreen) holds a 100% interest in the Redbank Power  Station Project   in      NSW (Project).

    

    

    This Option Agreement (Option Agreement) sets out the terms and conditions upon which Biogreen has agreed to grant Albertson Resources Pty Ltd (ACN 135 851 213) or its nominee
      (Albertson or its nominee are collectively referred to as the Company) an exclusive option (Option) to acquire a 100% 
      interest  in  the Project (Acquisition).

    

    

    This Option Agreement supersedes any and all previous correspondence, agreements or understandings between the parties.

    

    

    	
            1.

          	
            Acquisition and exclusivity

          	
            Biogreen  has agreed  to irrevocably  grant  to the Company  an  exclusive  Option  to  purchase the assets  and   assume  the  agreed  liabilities  of  the Project  on the terms and  conditions  set out
              in  this document and the attached Asset  Sale Agreement. Biogreen  must  not  enter into  any  other  Option or Sale  Agreement  for the Project  during  the  Option Period.

             

            

            For the avoidance of doubt, the parties intend that the framework Asset Sale Agreement will be mutually agreed, and the parties will work to finalise the terms during the Option Period.

          
	
            2.

          	
            Grant of Option

          	
            (a)

            

          	Subject to the terms and conditions of this Option Agreement, (including without limitation, the Company paying the
            Option Payments in cleared funds, Biogreen irrevocably grants the Option to the Company.
	 	 	
            (b)

            

          	The Option is exercisable by the Company at any time commencing on the dote of execution of this Option Agreement (Execution Date) and ending at 5pm on 18 December 2018 (or such other date and time as is agreed in writing between the parties) (Initial Option Period). For the
            avoidance of any doubt the Initial Option Period shall be for a period of 12 months from the Execution Date.
	 	 	
            (c)

            

          	The Company may extend the Initial Option Period to 5pm on 18 December 2019 by providing Biogreen
            notice in writing advising of the Company intention to extend the Initial Option Period and paying to Biogreen the amount of $100,000 (Extended Option Period). The Initial   Option Period and the
            Extended Option Period shall be collectively referred to as the Option Period. For the avoidance of any doubt, the Option Period (if the Extended Option Period applies) shall be for a period of 24
            months from the Execution Date.

     

    

    
      
        

    

    
    

    

    	 	 	
            (d)  

            

            

            

          	 The Company may at any time, terminate the Option and bring the Option Period Payments to an end by notifying
            Biogreen in writing that it does not wish to proceed with the Option, and upon receipt by Biogreen of such notice: 
	 	 	 	
            (i)       

          	the Company will make the  next two Option Period Payments (in one lump sum within 30 days of such termination); and
	 	 	 	
            (ii)         

          	the Option will immediately lapse and no longer be capable of exercise or extension by the Company; and
	 	 	 	
            (iii)         

          	the Option Period will be taken to have ended.
	 	 	 	 
	 	 	 	
            If the Company terminates the Option then, Biogreen will own and have the benefit of all the work done during the Option Period including work done by the Company and its consultants. All information and documents relating to this work
              will be treated as Confidential Information of Biogreen, other than information and documents which is solely created and provided by the Company to Biogreen during the Option Period and agreed at the time the information is provided to be
              Confidential Information of the Company. All Confidential Information in relation to the Project must be returned to Biogreen upon termination of the Option (other than that information which is identified as being the Confidential
              Information of the Company). The provisions of Section 8 shall apply to that Confidential Information.

          
	
            3.

          	
            Exercise of Option

          	
            The Company may exercise the Option at any time during the Option Period by delivering to Biogreen a written notice of exercise (Option Exercise
                Notice).

          
	
            4.

             

             

          	
            Sale Agreement

          	
            Upon exercise of the Option the parties agree to contemporaneously enter into a binding Asset Sale Agreement reflecting the following key terms as set out below.

             

            

            During the Option Period, the parties will use their best endeavours, acting in good faith to condude a final form of the Asset Sale Agreement based on these principles and generally
              accepted commercial terms, with a view to being in a position to sign a binding Asset Sale Agreement at the same time as the exercise of the Option

          

     

    

    
      2

      
        

    

    

    	 	 	
            In the event the parties (acting reasonably) cannot agree the final form of the Asset Sale Agreement within 6 months of the date of this Option Agreement, any outstanding provisions
              that cannot be agreed must be referred for determination of the specific point of difference to an expert:

          
	 	 	
            (a)

          	agreed by the parties; or 
	 	 	
            (b)

          	failing agreement within 14  days after either of them calls for agreement, to an expert nominated by the Resolution Institute 

          
	 	 	 
	 	 	
            and the expert shall be asked to determine a reasonable compromise on each  point  of  difference referred to it, having regard to the provisions of the draft Asset Sale Agreement attached and the
              principles set out in this option Agreement. Any expert appointed under this paragraph is to act as an expert and not an arbitrator  and  in relation to such appointment: 

          
	 	 	
            (c)

            

            

            

          	the expert's decision as to the compromise provision of the Asset Sale Agreement is final and  binding on the parties; and 
	 	 	
            (d) 

          	the parties are to pay the expert's costs in equal proportions.
	 	 	 
	 	 	
             If an expert Is appointed, the Option term shall be extended until such time as the Asset Sale Agreement is ready and can be signed on the exercise of the Option, provided the Company
              has complied with its obligations under this Option Agreement.

             

            

            The key terms of the Asset Sale Agreement are:

             

             The Company shall

          
	 	 	
            a)

          	acquire the whole of the Assets, free from all liabilities other than the Environmental Liabilities (as defined in the Asset Sale Agreement} of the
            Project which it will assume.
	 	 	
            b)

          	shall pay to Biogreen a total of $9.Sm in consideration
	 	 	
            c)

          	The consideration shall be paid as to
	 	 	 	
            i)

          	$4.5m unconditionally; and
	 	 	 	 ii)	$5.0m out of audited profits generated out of the Project upon the recommencement of generation.
	 	 	
            d)

          	The $4.5m shall be paid as follows: 
	 	 	 	
            i) 

            

          	$2.5m on exercise of the Option; and
	 	 	 	
            ii)

          	$2.0m by way of 4 payments of $500,000 each at 6 monthly intervals with the first payment due 6
            months from the date of exercise of the Option

    

    

    
      3

      
        

    

     

    

    	 	 	
            e)

            

          	
            The $5.0m shall be paid out of the audited profits generated by the Project, up to a maximum of 30% of total net profits in any one year until paid, and after allowing for any audited projected cash payments required over the 6 months
              following the end of the relevant financial year to meet required payments under any external debt of the Company which relates to the Project. 

          
	 	 	 f)

          	The Asset Sale Agreement will include a mechanism: 
	 	 	 	
            (i)

          	for ensuring that the Company conducts only the Project and is obligated to ensure that the Project is pursued to maximise profits within
            the Company until such time as the full consideration has been paid; and
	 	 	 	 
            (ii)  

            

          	for determining how profits are calculated (with specific accounting inclusions and exclusions, similar to post completion accounting for
            an earn out); and
	 	 	 	(iii)	to ensure that Biogreen has a right to be consulted on any matter which would materially reduce or delay profits from the Project (eg.
            optional capex, which is desirable for future growth but not immediately required)
	 	 	
            g) 

            

          	The Company will offer to agreed secured debt holders (as detailed in an agreed schedule) the right to participate in third party capital raisings
            conducted after the date that is 6 months from the date of this Option provided that the participation is less than 20% of the total amount being raised unless otherwise agreed between the parties. The secured debt holders will have no
            obligation to take up any such offer. 
	 	 	
            h)  

            

          	The Company will also undertake bona fide discussions in relation to offering a convertible note to any secured debt holders at the time of exercising
            the option on normal commercial terms. The Company shall have the last and final right to determine such terms. The secured debt holders will have no obligation to  take up any such offer. 
	 	 	 i)	BioGreen must during the Option Period, and prior to the exercise of the Option orovide all reasonable
            assistance to the Company as a potential Buyer of the Project, to assist the Buyer to assess the viability of the Project and to facilitate reasonable planning for the profitable operation of the Project (but this shall not include services of
            the nature of those contemplated  by paragraph); and

          

    

    

    
      4

      
        

    

     

    

    	 	 	
            j)

          	Biogreen must, following exercise of the Option, if requested by the Company, use its best endeavours to assist the
            Company by providing consulting services under the terms of a consultanr.:y agreement (to be reasonably agreed between the parties acting in good faith, including reasonable provisions for the remuneration of Biogreen, to advance the Project
            towards operating profits (which will be achieved by restarting generation). 
	 	 	
            k)

          	The Assets being acquired will be described in the contract and will be free of all liabilities other than the Environmental Liabilities or as
            otherwise agreed in writing. 
	 	 	
            l)

          	The Assets are: 
	 	 	 	
            I.

          	the land at 112 Longpoint Road, Warkworth NSW 2330 (the Site);
	 	 	 	
            II.

          	the assets on the Site as at the date of the Asset Sale Agreement and identified by the parties in that agreement: and
	 	 	 	III.

          	any other assets, approvals, licences, leases, rights etc. owned by or for the benefit of Biogreen and that are capable of being
            transferred to the Company.
	 	 	
            m) 

            

          	 No warranties will be given by Biogreen in relation to: 
	 	 	 	
            I. 

          	 the Assets;
	 	 	 	
            II.

            

          	the Water Access Licence number 8603 issued to Redbank Project Pty Limited (having New South Wales Department of Infrastructure, Planning
            and Natural Resources reference number 20AL201817) (and the share component of 3,400 units held under it);
	 	 	 	 
	 	 	 	nor any matters related to the same (including any matters arising out of due diligence)  other than: 
	 	 	 	 
	 	 	 	
            III.

            

          	standard title and capacity warranties by the Seller: and
	 	 	 	IV.

          	mandatorynon-excludable warranties required by law in relation to the Assets

    

    

    
      5

      
        

    

     

    

    	
            5.

             

          	
            Option Period Payments

          	
            (a)

          	The Company will pay a fee to Biogreen during the Option Period of $40,000 per month to be utilised as set out
            herein (Option  Period Payments). 
	 	

          	
            (b)

            

          	The Option Period Payments shall be used to meet the costs of maintaining the Assets in good standing (including security costs) during the Option
            Period and for the working  capital purposes of Biogreen. 
	 	

          	
            (c)

          	A prepayment of $120,000 (being the first three months of the Option Period Payments) will be deposited in cleared funds into Biogreen's NAB Account on
            or before Friday, 22 December 2017. 
	 	

          	
            (d)

          	 If the Company exercises the Option, all Option Period Payments will be applied to and form part of the purchase price contemplated by the  sale 
            agreement (Asset Sale Agreement) attached at Annexure 1 of this Option Agreement. 
	 	

          	
            (e)

            

          	If  the  Company  does  not  exercise  the Option, the Option Period Payments not exceeding an amount of $400,000 will be repaid by Biogreen to the
            Company in the following circumstances: 
	 	

          	 

          	
            (i)

          	the Assets being sold to another buyer for more than the then remaining liabilities of Bio Green (post sale) and that amount being received
            by Blogreen (New Buyer Purchase); or
	 	

          	 	
            (ii) 

            

          	 Biogreen retains ownership of the Assets (the subject of this agreement) and the Assets generate sufficient free cashflow from the
            operation of the Assets to repay the Option Period Payments (Profits Payment).
	 	

          	
            (f)

          	In the event of a New Buyer Purchase, the Option Period Payments (not exceeding an amount of $400,000) will be repaid to the Company in one lump sum
            within 30 days of the Purchase price being received by Biogreen. 
	 	

          	
            (g)

            

          	If, at any time during the option period, Biogreen requires additional capital to meet the holding costs of the Project and the parties mutually agree
            to such expenditure: 
	 	 	 	(i)	It may request the Company to provide a loan for the additional capital; and

     

    

    
      6

      
        

    

     

    

    	 	 	

          	
            (ii)

          	If the Company agrees to provide that loan and requires that loan  to be secured over the Project, then Biogreen
            will use its reasonable endeavours to procure second ranking security over the assets of the Project, ranking behind the existing security of lenders over the Project and subordinated in priority of repayments to those senior secured lenders.
	 	 	 
	 	 	
            In relation to the Option Period Payments, Biogreen declares that, on the date of this Option Agreement, Biogreen is an Australian resident for tax purposes.  

          
	
            6.

          	
            Option Period Payments Failure

          	
            The Option willnot lapse for failure to pay the Option Period Payments, unless:

            

            

            

          
	 	 	
            (a)

          	the Company fails to pay the Option Period Payments: and 
	 	 	
            (b)

          	notice has been provided by Biogreen to the Company providing a remedy period of twenty-one (21) days (Remedy
              Period); and 
	 	 	
            (c)

            

          	the Company fails to pay the outstanding Option Period Payments within the Remedy Period. 
	
            7.

          	
            Relationship

          	
            Nothing contained in this Option Agreement otherwise constitutes either party as agent or partner of the other, or creates any agency  or partnership for any purpose whatsoever.

          
	
            8.

          	
            Confidentiality

          	
            This Option Agreement and all other information disclosed by the parties to each other (Confidential Information) is confidential and each
              party shall ensure that the Confidential Information remains confidential, except that the parties may make disclosure.

            

            

          
	 	 	
            (a) 

            

          	to their professional advisers, but only to the extent necessary to give effect to this Option and the Asset Sale Agreement and subject to notify the
            other party of those advisers and obtaining confidentiality undertakings from those advisers; 
	 	 	
            (b)

          	to any potential investors or funding partners or participants for the purpose of raising funds to ensure the
            Project can be successfully developed  and  completed and subject to notifying Biogreen of those potential investors and funding partners  and obtaining confidentiality undertakings from those potential investors and funding partners; 

    

    

    
      7

      
        

    

     

    

    	 	 	
            (c)

            

            

            

            

          	with the written consent of the other party (which consent may be given or withheld in its absolute discretion);
	 	 	
            (d)

          	if required by law or the rules of any stock exchange;
	 	 	
            (e)

            

          	in  connection  with   legal   proceedings relating to this Option or the Asset Sale Agreement; or
	 	 	 
	 	 	
            
              
                if the Information is generally and publicly available, except through breach of this Option or the Asset Sale Agreement. 

              

            

          
	 	 	 
	 	 	
            Immediately upon receipt of a written request from the party to which the Confidential Information belongs or upon the termination of this Option Agreement, the other parties in possession of the
              Confidential Information  will: 

          
	 	 	
            (f)

          	desist from using that Confidential Information for any purpose thereafter and immediately issue a direction that any of its Related Bodies
            Corporate (as defined  in the Corporations Act 2001 (Cth)), Associates (as defined in the Corporations Act 2001 (Cth)), employees, officers, agents,
            professional advisers, consultants and authorised representatives do the same;
	 	 	
            (g)

          	obtain and collect all physical  and electronic forms of Confidential Information in its possession or under its control, or that which may
            be in the possession or control of its Related Bodies Corporate (as defined in the Corporations Act 2001 (Cth)), Associates (as defined in the Corporations Act 2001

            (Cth)), employees, officers, agents, professional advisers, consultants and authorised representatives, and deliver to the party which the Confidential Information belongs to, or at the option of that party, permanently destroy that
            Confidential Information and certify that it has done so.
	
            9.

          	
            Further Assurance

          	
            Each party shall sign and execute and do all deeds, acts, documents and things as may reasonably be required by the other parties to effectively carry out and give effect
              to the terms and intentions of this Option Agreement.

          
	
            10.

          	
            Foreign Acquisitions and Takeovers Act

          	
            The Company represents and  warrants that it is not a foreign person for the purposes of the Foreign Acquisitions and Takeovers Act (Cth) (the FATA) and that notification and/or approval of the option Agreement and/or the Assets Sale Agreement rs not required under the FATA. The Company indemnifies Bioaereeen  for any loss, cost, damage expense
              or claim which Biogreen incurs as a result of this representation and  warranty  being incorrect

          

    

    

    
      8

      
        

    

     

    

    	
            11.

          	
            Governing Law

          	
            The agreement constituted by this Option Agreement shall be governed by and construed in accordance with the law from time to time in New South Wales. The parties agree to submit to the
              non- exclusive jurisdiction of the Courts of New South Wales and the Courts which hear appeals from those Courts.

          
	
            12.

          	
            Assignment

          	
            Excluding any assignment by the Company to its nominee. none of the parties may assign any of the rights or obligations conferred by this Option Agreement without the prior consent of
              the other parties. The company that becomes the buyer pursuant to the Asset Sale Agreement must be a standalone entity whose sole business is to conduct the Project, until such time as the full Purchase Price has been paid out of profits from
              the Project.

          
	
            13.

          	
            Costs

          	
            Each party shall bear their own legal costs of and incidental to the preparation, negotiation and execution of this Option Agreement.

             

            The Company will pay any duty assessed on or in respect of this Option Agreement.

             

            The Company will pay:

          
	 	 	
            (a)

          	 all costs of transferring Assets to the Company, obtaining third party consents and transferring any third-party agreements, including
            taxes, stamp duties, GST and other trar.saction taxes or regulatory costs applicable to such transfers; and
	 	 	
            (b)

          	 all costs (if any) incurred by Biogreen as a result of the Company requiring the consent  of  Biogreen to negotiations with any third
            party that requires the disclosure of confidential information (for example the costs of Biogreen obtaining legal advice in relation to such disclosure and any participation of Biogreen which is necessary or desirable in relation to such
            negotiations.
	
            14.

          	
            Notices

          	
            Each notice authorised or required to be given to a party shall be in writing and may be delivered personally  or  sent  by  properly  addressed prepaid •mail in each case addressed to
              the party at its address set out in below:

             

            In the case of Biogreen:

             

            Email: richard.l.butler@gmail.com

            Attention: Richard Butler

             

            In the case of the Company:

            Email: rjpoole@aphillip.com.au

            Attention: Richard Poole

          
	
            15.

          	
            Severance

          	
            If any provision of this Option Agreement is invalid and  not  enforceable  in accordance  with its terms, all other provisions which ore self-sustaining and capable of separate enforcement without regard
              to the invalid provision, shall be and continue to be valid and forceful in accordance with their terms.

          
	
            16.

          	
            Counterparts

          	
            This Option Agreement may be executed in any number of counterparts, each of which when executed and delivered to the other parties shall constitute an original, but all counterparts
              together shall constitute one and the same  agreement.

          

    

    

  

  
    9

    
      

  

  
    If the terms and conditions set out above are acceptable, please execute this Option Agreement in the appropriate place below.

    

    

    EXECUTED by the parties on 18 December 2017

    

    

    

    

    	
            EXECUTED by ALBERTSON RESOURCES PTY LTD

            ACN 135 851 213

          	 	 
	
            in accordance with section 127 of the Corporations Act 2001 (Cth):

          	 	 
	 	 	 
	
            /s/ Richard Poole

          	 	 
	
            Signature of director

          	 	
            Signature of director/company secretary

          
	 	 	 
	
            Richard Poole

          	 	 
	
            Name  of director

          	 	
            Name of director/company secretary

          
	 	 	 
	
            EXECUTED by BIOGREEN ENERGY PTY LTD ACN 608 060 984

          	 	 
	
            in accordance with section 127 of the Corporations Act 2001 (Cth):

          	 	 
	 	 	 
	
            /s/ Richard Butler

          	 	 
	
            Signature of director

          	 	
            Signature of director/company secretary

          
	 	 	 
	
            __Richard Butler

          	 	 
	
            Name of Director

          	 	
            Name of director/company secretary

          

    

    

  

  10

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