> !"#$%&'()*+,. l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1Courier New1Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)**_($* #,##0_);_($* (#,##0);_($* ""_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* ""_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* ""??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* ""??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)60%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0) + ) , * Ј ~~ ؈ ~~#؈ ~~"؈ ~~ ؈ ~~3"܈ ~~4"܈ ~~8#܈ ~~8"܈ ~~7#܈ ~~<#܈ ~~4#܈ ~~3#܈ ~~<"܈ ~~83ffff̙̙3f3fff3f3f33333f33&CALCULATION OF REGISTRATION FEE62Beneficial OwnershipWThe Offering&pWe may require additional fundi&~The market valuation of our busPLAN OF OPERATIONSKSELLING STOCKHOLDERS:NO TITLEPLAN OF DISTRIBUTION&DIRECTORS AND EXECUTIVE OFFICER4Beneficial Owne (1)HBeneficial Owne (2)bNO TITLE (1)VSummary CompensationŧNO TITLE (2) Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)&<MARKET FOR COMMON EQUITY AND RE$XINDEX TO FINANCIAL STATEMENTS&s{Report of Independent Registere!Report of Independent (1)!#Report of Independent (2)!Report of Independent (3)!3Report of Independent (4)&(UNote 3 151 Prepaid expenses and&mNote 4 151 Property plant and e%Note 4 151 Property plant (1)&&Note 6 151 Accrued expenses andNote 6 151 Accrued (1)!Provision for income taxes&YDeferred tax assets liabilitiesLease commitmentsLicense agreement&`0Note 11 150 Accounting for stoc"YNote 11 150 Accounting (1)&sFirst Amendment to the Amended "0First Amendment to the (1)"First Amendment to the (2)"First Amendment to the (3)&I"Effect of Adopting SFAS No 123R&7Prior Period Pro Forma Presenta#PAssumptionseAssumptions (1)ρAssumptions (2)Assumptions (3)Assumptions (4)&Item 25 Other Expenses of Issua Item 27 Index to Exhibits;Item 27 Index to (1)*Index to ExhibitsZZIndex to Exhibi (1)oNO TITLE (3)4NO TITLE (4)&ٚARTICLE 3 CONFIDENTIAL DISCLOSU&ARTICLE 7 REPRESENTATIONS AND W&Total Investment Registered Cap&Responsibilities of the Parties#Responsibilities of the (1)#;5Responsibilities of the (2)YBoard of Directors&DTerm Termination and LiquidatioSettlement of DisputesSettlement of D (1)ANO TITLE (5)&Effectiveness and Confidentiali&CRepresentations Warranties and ]Representations (1)C~Representations (2))Notices147Distributable Profits%%Schedule of Imported Equipment&Cooperative Joint Venture ContrNO TITLE (6)% 1 Definitions and Construction% 1 Definitions and (1)0? 1 Definitions and (2)Yf 1 Definitions and (3)) 1 Definitions and (4) 1 Definitions and (5) 1 Definitions and (6) 1 Definitions and (7))(
1 Definitions and (8)^<
1 Definitions and (9)m
1 Definitions and (10)z
1 Definitions and (11)P
1 Definitions and (12)+
1 Definitions and (13)
1 Definitions and (14)
1 Definitions and (15)q
1 Definitions and (16)1 Definitions and (17)01 Definitions and (18)T1 Definitions and (19)6i1 Definitions and (20)$1 Definitions and (21)'1 Definitions and (22)1 Definitions and (23)e1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)'1 Definitions and (27)1 Definitions and (28)^I1 Definitions and (29)j1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)bNet Syngas Contents
Net Syngas Cont (1)!
Table III16
Design Basis CoalS
A Capacity Feen
A Capacity Fee (1)ʉ
Example 1
Example 3
Excess Quantities+
Excess Quantiti (1)
Further Cooperation;Further Coopera (1) *147Compensation CommitteeBNO TITLE (7)zYNO TITLE (8)&uAMENDED AND RESTATED EMPLOYMENTWW (1)PNO TITLE (9)W (2)}W (3)GW (4)gb
NO TITLE (10)h
NO TITLE (11)
STOCK OPTIONS
WITNESSETH)WITNESSETH (1)
NO TITLE (12)
NO TITLE (13)
l 1
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Beneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'CALCULATION OF REGISTRATION FEE
Proposed
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Title of Each Class ofOffering
Aggregate
Amount of
Securities
Amount to be
Price
Offering
Registration
to be RegisteredRegistered (1)
Per Share (1)
Price
Fee.&Common Stock, $.01 par value per share8,000,000 shares@ ~
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AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Beneficial Ownership Page
PROSPECTUS SUMMARY
~
"FORWARD LOOKING STATEMENTS~
RISK FACTORS~
BUSINESS
~
6
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%%%&INDEX TO FINANCIAL STATEMENTS&&&F1&'' Certificate of Incorporation%( Specimen Stock Certificate)% Opinion of Porter & Hedges, L.L.P./*' Amended Agreement and Plan of Merger3++ First Amendment to Amended Agreement and,Plan of Merger$ Amended License Agreement.% Cooperative Joint Venture Contract1/) Amendment to Cooperative Joint Venture0Contract.1& Contract for Gas Purchase and Sales12) Employment Agreement  Timothy E. Vail63. Amendment to Employment Agreement  Timothy4E. Vail15) Employment Agreement  David Eichinger06( Amended Employment Agreement  Donald7
P. Bunnell8 Consulting Agreement&9 Amended 2005 Incentive Plan6:. Form of Nonstatutory Stock Option Agreement; Four Year Vesting6<. Form of Nonstatutory Stock Option Agreement= Five Year Vesting'> Amended Commitment Agreement? SubsidiariesDl#_~KlX&o;%E&@ABCDE@ Consent of KPMG LLPAB$C____________________________1D)Created by Morningstar Document Research.0E(http://documentresearch.morningstar.com/Cd=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial Ownership!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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NO TITLE (11)
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!
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007The Offering
By us None
#By the selling stockholders8,000,000 shares3
+Common stock outstanding after the offering
28,183,715 shares (1)Pink Sheets symbolSYMXUse of proceeds4,We will not receive any of the proceeds from3+the sale or other disposition of the shares%covered hereby, or interests therein,0(by the selling stockholders. See ?Use of
Proceeds.?Risk Factors2*See ?Risk Factors? beginning on page 3 and5other information included in this prospectus80for a discussion of factors you should carefully4,consider before deciding to invest in sharesof our common stock.$____________________________1)Created by Morningstar Document Research.DulvjF=Y+\th 0 (http://documentresearch.morningstar.com/H=PF0*8X>
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007kcWe may require additional funding, and our failure to raise additional capital necessary to support ?expand our operations;
?
,
$hire, train and retain employees; or ?91respond to competitive pressures or unanticipated
capital requirements.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*mh7+k_x=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundiPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }8
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007jbThe market valuation of our business may fluctuate due to factors beyond our control and the value ?1)changes in securities analysts? estimates . &of our financial performance, although
0
(there are currently no analysts covering
our stock;
?
/
'fluctuations in stock market prices and.&volumes, particularly among securitiesof energy companies; ?/'changes in market valuations of similar
companies; ?.&announcements by us or our competitors3+of significant contracts, new technologies,/'acquisitions, commercial relationships,.&joint ventures or capital commitments; ?%variations in our quarterly operatingresults; ?3+fluctuations in oil and natural gas prices; ?7/loss of a major customer or failure to complete)!significant commercial contracts;Dt l8, dnp6*x!i1% !"#$%&'( ! !?!2!*loss of a relationship with a partner; and"# #?#1#)additions or departures of key personnel.$%$&____________________________1')Created by Morningstar Document Research.0((http://documentresearch.morningstar.com/*3'=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }=
+
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007PLAN OF OPERATIONS ?/'Completing engineering and construction 4 ,of a plant as part of our joint venture with
2
*Hai Hua (described under ?Business?Current;3Projects?) as well as create a modular gasification2*engineering block to speed the development
*
"of future UGAS ? based projects. ?,$Advancing the commercial development80of UGAS ? based projects in China and selected'locations in the United States. ?2*Building relationships with multinational.&industrial concerns to provide UGAS ?/'solutions for their energy and chemicalfeedstock needs. ?4,Expanding our experienced global engineering.&and project execution team to complete.&the development of current projects as1)well as future projects under development( by the project development team. ?1)Protecting technology used by the Company/'in the U.S. Patent and Trademark OfficeD
lpdVG;7+z#z$u% !"#$%&'()* . &as well as similar agencies throughout!!!!
the world."# #?#.#&Raising additional capital through the$$$2$*sale of equity securities and by obtaining%%%4%,debt financing, including project financing.&'$(____________________________1))Created by Morningstar Document Research.0*(http://documentresearch.morningstar.com/.pd
WK?=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }%}$ }}$ }<}$ }0}$ }m
'
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007SELLING STOCKHOLDERS
Percentage of
Number of Shares Owned
Number of
Number of
Shares Owned and to be Owned Prior toShares BeingShares Owned
AfterSelling StockholderOffering(1)
Offered(1)After Offering(2)Offering(2)
ATC Trustees(3)
~
~
?
?Thomas G. Bongard(3)~
~
? ?Frank J. Cadwell(3)~
~
? ?Ira Ronald Cadwell(3)~
~
? ?Stephanie Cadwell(3)~
~
? ?David A. Schwedel(3)~
¾
~
8~
B *Adam M. Dernbach(3)~
8~
8 ? ?Jeremy Alan Dernbach(3)~
8~
8 ? ?Timothy A. Dernbach(3)~
B~
B ? ?'Theodore ? Eve Golfinopoulos(3)~
8~
8 ? ?James D. Hanson, Jr.(3)~
5~
5 ? ?MD Investments(3)~
q~
q ? ?John F. Michel, Jr.(3)~
~
? ?Thomas E. Puccio(3)~
~
? ?Renee Schwedel(3)~
q~
q ? ?#Silo Investments Limited(3)~
B~
B ? ?Micheal G. Storey(3)~
W~
6~
2.0%Michael Tublin(3)~
q~
q ? ?!Travis ? Edith Wichman(3)~
~
? ?Dlznb}<yl^E9, ! " # $ % & Zahaca Enterprises(3) ~
~
? ?~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERSPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }U}$ }8
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE~
5 Assumes the sale of all of the shares offered
0
(hereby to persons who are not affiliates$of the selling stockholders.~
.
&Each selling stockholder purchased the3+shares offered hereby for their own account0(and not with a view toward distribution.~
1)Includes 205,200 shares held by the David7/A. Schwedel Living Trust, of which Mr. Schwedel is the beneficial owner.~
.&Includes 40,000 shares of common stock/'issuable upon exercise of options which0(are currently exercisable or exercisablewithin 60 days hereof.~
0(We also plan to include 6,000,000 shares/'of stock which are eligible for trading3+on the Pink Sheets. We plan to set a record1)date and include the names of the selling1)stockholders on such date in an amendment'to this registration statement.DlznJk_xl6eYq$ !"#$ !$"____________________________1#)Created by Morningstar Document Research.0$(http://documentresearch.morningstar.com/
P=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLE!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }:
.
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007PLAN OF DISTRIBUTION ?80ordinary brokerage transactions and transactions 7 /in which the brokerdealer solicits purchasers;
?/'block trades in which the brokerdealer1)will attempt to sell the shares as agent,
0
(but may position and resell a portion of0(the block as principal to facilitate thetransaction; ?1)purchases by a brokerdealer as principal/'and resale by the brokerdealer for itsaccount; ?.&an exchange distribution in accordance2*with the rules of the applicable exchange; ?*"privately negotiated transactions; ?/'short sales effected after the date the%registration statement, of which this3+prospectus is a part, is declared effectiveby the SEC; ?4,through the writing or settlement of optionsDP lznb>5<G;/ !"#$%&'()*+, . &or other hedging transactions, whether!!!1!)through an options exchange or otherwise;"# #?#1#)brokerdealers may agree with the selling$$$/$'stockholders to sell a specified number%%%0%(of such shares at a stipulated price per&&&&
share; and'( (?(2(*a combination of any such methods of sale.)*$+____________________________1,)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/ &QE<[=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTIONBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }}$ }$}$ }U5
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007( DIRECTORS AND EXECUTIVE OFFICERS Name Age Position
Lorenzo Lamadrid
~
Chairman of the BoardTimothy Vail~
.&President, Chief Executive Officer andDirector
David Eichinger
~
/
'Chief Financial Officer and Senior Vice*"President of Corporate DevelopmentDonald Bunnell~
1)President, Chief Executive Officer ? AsiaPacific and Director Gregory (?Bruce?) Golden~
Chief Technologist
Carol Pearson~
4,Corporate Controller and Corporate SecretaryMichael Storey~
Director
Denis Slavich~
DirectorHarry Rubin~
Director$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/: znbV
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }1}$ }7
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Beneficial Ownership ?6.each person who is known by us to beneficially 2 *own 5% or more of the outstanding class of
our capital stock;$
____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/$^,znbsK=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }U}$ }$4
6
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE * Less than 1%
~
.&Based on 28,183,715 shares outstandingas of January 28, 2007.
~
.&Includes 25,000 shares of common stock3+issuable upon the exercise of options which0(are currently exercisable or exercisablewithin 60 days hereof.~
%Christopher J. Raczkowski, Stephen M./'Terry and Juanli Han are the principals.&of, and exercise voting and investment/'authority over the shares held by, thisstockholder.~
.&Includes 40,000 shares of common stock3+issuable upon the exercise of options which0(are currently exercisable or exercisablewithin 60 days hereof.~
/'Includes 495,000 shares of common stock3+issuable upon the exercise of options whichDclznJ
z.YMm"K !"#$%&'()*+,./012345 0 (are currently exercisable or exercisable!!!within 60 days hereof."~
##/#'Includes 350,000 shares of common stock$$3$+issuable upon the exercise of options which%%0%(are currently exercisable or exercisable&&&within 60 days hereof.'~
((.(&Includes 32,000 shares of common stock))3)+issuable upon the exercise of options which**0*(are currently exercisable or exercisable+++within 60 days hereof.,~
.&Includes 65,000 shares of common stock..3.+issuable upon the exercise of options which//0/(are currently exercisable or exercisable000within 60 days hereof.12$3____________________________14)Created by Morningstar Document Research.05(http://documentresearch.morningstar.com/0ozn!L@Yx,=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)NO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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!!!!!!!!!!!!$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Summary Compensation
Nonqualified
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Bonus
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Total'
Timothy Vail, President and CEO
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationOutstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE~
3 +Prior to May 30, 2006, Mr. Vail served only
3
+as a director, for which he did not receiveany cash compensation.~

%Time vested options. Value determined/'using a BlackSholes model. See Note 110(to the Consolidated Financial Statements/'for a discussion of assumptions made in'the valuation of option grants.~
3+Prior to May 30, 2006, Mr. Eichinger served80as a consultant to the Company. His compensation/'for these services is listed under ?AllOther Compensation.?~
2*Represents amounts paid under a consulting7/agreement between the Company and Mr. Eichinger1)which was effective from October 19, 20054,through May 1, 2006. Mr. Eichinger was hired4,by the Company as an employee on a permanent%basis effective May 30, 2006.~
5Mr. Bunnell was one of the Company?s foundersDlznJpd7Cdt$ !"#$%&'() 1 )and received 7,402,500 shares in exchange!!4!,for his work for the Company and his initial""3"+capital contribution of $100,000 subsequent##1#)to our merger with Tamborine on April 18,$$~
$V%&$'____________________________1()Created by Morningstar Document Research.0)(http://documentresearch.morningstar.com/ca=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)DIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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%%%%%%%%%%%%%%%%%%%$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007!Outstanding Equity Awards
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007DIRECTOR COMPENSATION
Nonqualified
NonEquity
Deferred
Fees Earned or
Incentive PlanCompensation All OtherPaid in CashStock Awards
Option
CompensationEarningsCompensation
Total
Name
~
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~
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(e)(f)(g)(h)Lorenzo Lamadrid~
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Michael Storey ? ? ~
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Denis Slavich ? ? ~
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/Harry Rubin(3) ? ?
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATION!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
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STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007DIRECTOR COMPENSATION~
6 .Mr. Lamadrid was granted an option to purchase
4
,50,000 shares of common stock at an exercise6.price of $2.50 on November 7, 2005. The option0(vests in four equal annual installments,
1
)with the first installment vesting on the80date of grant. The option expires on November 7,~
j~
7/Each of Mr. Storey and Mr. Slavich were granted/'(i) an option to purchase 50,000 shares5of common stock at an exercise price of $2.501)per share on November 7, 2005 and (ii) an3+option to purchase 200,000 shares of common5stock at an exercise price of $3.00 per share1)on May 30, 2006. The options vest in four91and five equal annual installments, respectively,1)with the first installment vesting on the80date of grant. The options expire on November 7,,$2010 and May 30, 2011, respectively.~
0(Mr. Rubin began serving as a director on4,August 4, 2006. On that date, he was granted/'an option to purchase 160,000 shares ofD lyma=GZ4(7J[e !"#$%&'() 2 *common stock at an exercise price of $3.00!!1!)per share. The option vests in five equal""7"/annual installments, with the first installment##0#(vesting on the date of grant. The option$$"$expires on August 4, 2011.%&$'____________________________1()Created by Morningstar Document Research.0)(http://documentresearch.morningstar.com/epH=PF0*8X>
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)INDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007@8MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Sales Price
High
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!$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND RE!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007%INDEX TO FINANCIAL STATEMENTS/ 'Report of Independent Registered Public F2
Accounting Firm2*Consolidated Balance Sheets as of June 30,F3
2006 and 2005%Consolidated Statements of OperationsF42*for the years ended June 30, 2006 and 200580and the period from November 4, 2003 (inception)to June 30, 2006/'Consolidated Statement of Stockholders?F50(Equity for years ended June 30, 2006 and1)2005 and the period from November 4, 2003$(inception) to June 30, 2006%Consolidated Statements of Cash FlowsF62*for years ended June 30, 2006 and 2005 and4,the period from November 4, 2003 (inception)to June 30, 20066.Notes to the Consolidated Financial StatementsF72*for years ended June 30, 2006 and 2005 andD l}qeY`>t}AoS !"#$%&'()*+,./0123456789:;<4 ,the period from November 4, 2003 (inception)!to June 30, 2006""""",#$Condensed Consolidated Balance Sheet###F19#0$(as of September 30, 2006 (unaudited) and%
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTSReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007?7Report of Independent Registered Public Accounting Firm
June 30, 2006
June 30, 2005
ASSETS
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007?7Report of Independent Registered Public Accounting Firm
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Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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01/31/2007?7Report of Independent Registered Public Accounting Firm
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AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007?7Report of Independent Registered Public Accounting Firm
November 4, 2003
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to June 30, 2006
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$SYNTHESIS ENERGY SYSTEMS INCSB2
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20072*Note 4 #151; Property, plant and equipment
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AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/200780Note 6 #151; Accrued expenses and other payables As of June 30,
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AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
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01/31/200780Note 6 #151; Accrued expenses and other payables Year ended June 30,
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STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007"Provision for income taxes Year ended June 30,
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Net loss~
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&Computed tax benefit at statutory rate
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%~
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I~
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$?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8th\Uu!] =PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007)!Deferred tax assets (liabilities) Year ended June 30,
~
"Z
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"V
Deferred tax assets:(
Net operating loss carry forward
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%Depreciation and amortization~
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? Stockbased compensation~
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?Subtotal~
I~
Valuation allowance~
>~
?)!Net deferred assets (liabilities)
$?
$?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Lease commitments Year Ending June 30, ~
^
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b~
v+
#Total future minimum lease payments
~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,}qe)e5p=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitments!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007License agreement Year Ending June 30, ~
^
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b~
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#Total future minimum lease payments
~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,}qe)e5p=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreementNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007=5Note 11 #150; Accounting for stockbased compensation
November 4, 2003
(inception)
~
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WeightedWeighted
Average
Average
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SharesExercise Price
Shares
Exercise PriceSharesExercise Price&Outstanding, beginning of year
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stoc!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }0}$ }y}$ }U}$ }y}$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007=5Note 11 #150; Accounting for stockbased compensation
Weighted
Weighted
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Average
Exercise
Weighted Remaining
Price
Average
Range of Exercise
Number
Contractual
Exercise
Number
ExercisePricesOutstandingLife (Years)
Price
Exercisable
Price$2.50 to $3.00~
%@
!(\@
~
b=!Gz@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/. eYMAEq^`=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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0
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007PHFirst Amendment to the Amended and Restated Agreement and Plan of Merger September 30, 2006
June 30, 2006
(Unaudited)
ASSETSCurrent assets:
Cash
~
,
~
1)Prepaid expenses and other current assets~
~
Total current assets~
v2~
*"Property, plant and equipment, net~
~
Project prepayment~
^ ?Intangible asset, net~
r~
&vTotal assets~
Ǹ~
#,$LIABILITIES AND STOCKHOLDERS? EQUITYCurrent liabilities:+#Accrued expenses and other payables~
: ~
Total liabilities~
: ~
2*Common stock, $0.01 par value; 100,000,000~
3~
.DlRF:.OrB\VJNS~ ! " # $ % & ' ( ) * + ,  . / 4 ,shares authorized; 28,183,715 and 24,647,5003!+shares issued and outstanding, respectively""Additional paidin capital""~
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####~
#ҭ#
$stage.%&Accumulated other comprehensive income%%~
%%%% %?%&&&&&&&"'Total stockholders? equity'~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$4}$ }I}$ }I}
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7
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007PHFirst Amendment to the Amended and Restated Agreement and Plan of Merger
November 4, 2003
Three Months Ended
Three Months Ended
(Inception) to
September 30, 2006September 30, 2005
September 30, 2006(Unaudited)(Unaudited)
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Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007PHFirst Amendment to the Amended and Restated Agreement and Plan of Merger
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007PHFirst Amendment to the Amended and Restated Agreement and Plan of Merger
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Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007*"Effect of Adopting SFAS No. 123(R) Three Months
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Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007+#Prior Period Pro Forma Presentation Three Months
EndedSeptember 30, 2005Net loss, as reported~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma PresentaAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Assumptions Three Months Ended
September 30, 2006 Riskfree rate of return333333@ %Expected life of award 3.5 years
Expected dividend yield
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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01/31/2007Assumptions
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
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NO TITLE (12)
NO TITLE (13)U }}$ }y}$ }U}$ }y}$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Assumptions
Weighted
Weighted
Weighted
Average
Average
AverageNumber Remaining
Exercise
NumberExercise Range of Exercise PricesOutstandingLife (Years)
Price
Exercisable
Price
$2.50 to $3.00
~
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~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Assumptions Number Weighted Average
of
Grant DateShares
Fair Value#Nonvested at June 30, 2006~
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!@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2&wke'7OC7=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }}$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Assumptions
As of September 30, 2006
As of September 30, 2005
Gross carrying
Accumulated
Gross carrying
Accumulated
Estimated useful lifeamount
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amountamortizationUse rights of UGAS:10 years~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)Item 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007<4Item 25. Other Expenses of Issuance and Distribution7 /Securities and Exchange Commission registration ~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007#Item 27. Index to Exhibits. @ 3 +Certificate of Incorporation of the Company
3.2**2*Amended and Restated Bylaws of the Company
ffffff@
"
Specimen Stock Certificateffffff@0(Opinion of Porter ? Hedges, L.L.P., with.&respect to legality of the securities,including consent.333333$@/'Amended and Restated Agreement and Plan1)of Merger among Tamborine Holdings, Inc.,.&SES Acquisition Corporation, Synthesis2*Energy Holdings, Inc. and the shareholders0(of Synthesis Energy Holdings, Inc. dated
April 4, 2005ffffff$@3+First Amendment to the Amended and Restated1)Agreement and Plan of Merger by and among1)the Company, SES Acquisition Corporation,0(Synthesis Energy Holdings, Inc., and the1)shareholders listed on the signature page'thereto dated December 29, 2006D9 lsg[7kGC
Kg6p# !"#$%&'()*+,./0123456789:;<=>?
!10.3*!.!&Amended and Restated License Agreement""0"(by and between Synthesis Energy Systems,##/#'Inc. and Gas Technology Institute dated$$$August 31, 2006%%%&$@&&%Cooperative Joint Venture Contract of''4',SES (Zaozhuang) New Gas Company Ltd. between((0((Shandong Hai Hua Coal ? Chemical Company))6).Ltd. and Synthesis Energy Systems Investments,***Inc. dated July 6, 2006+++,%@,.,&Amendment to Cooperative Joint Venture3+Contract of SES (Zaozhuang) New Gas Company..5.Ltd. between Shandong Hai Hua Coal ? Chemical//1/)Company Ltd. and Synthesis Energy Systems0000(Investments, Inc. dated November 8, 2006111
210.6*2/2'Contract for Synthesis Gas Purchase and3323*Sales by and between Shandong Hai Hua Coal4444,? Chemical Company Ltd. and Synthesis Energy5505(Systems (Zaozhuang) New Gas Company Ltd.666dated October 22, 2006777
810.7?808(Employment Agreement between the Company99+9#and Timothy Vail dated May 30, 2006:::
;10.8?;1;)Amendment to Employment Agreement between<<7</the Company and Timothy Vail dated November 15,==~
=Z>>>
?10.9??0?(Employment Agreement between the CompanyD
lAPb'dzVhm&]7@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@.@&and David Eichinger dated May 30, 2006AAAB10.10?B1B)Amended and Restated Employment AgreementCC.C&between the Company and Donald BunnellDDDdated July 14, 2006EEEF10.11?F0F(Consulting Agreement between the CompanyGG/G'and Lorenzo Lamadrid dated May 30, 2006HHHI10.12?I0I(Amended and Restated 2005 Incentive PlanJJJK10.13?K3K+Form of Nonstatutory Stock Option AgreementLLL(four year vesting)MMMN10.14?N3N+Form of Nonstatutory Stock Option AgreementOOO(five year vesting)PPPQL$@Q1Q)Amended and Restated Commitment AgreementRR3R+dated November 30, 2006 between the CompanySS+S#and Union Charter Capital VII, Inc.TTTU5@U$USubsidiaries of the Company.VVVW7@W4W,Consent of Porter ? Hedges, L.L.P. (includedXXXin Exhibit 5.1).YYYZ3333337@Z3Z+Consent of KPMG LLP, Independent Registered[[[Public Accounting Firm.\\\]8@]1])Power of Attorney (contained in signature^^^page)._D l?Hc^'a6N*`abc`$a____________________________1b)Created by Morningstar Document Research.0c(http://documentresearch.morningstar.com/<=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsIndex to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }U}$ }2
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007#Item 27. Index to Exhibits. * 2 *Portions of this exhibit have been omitted
.
&pursuant to a request for confidential/'treatment filed with the Securities andExchange Commission
** To be filed by amendment ?0(Management contract or compensatory planor arrangement$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2.sg[7SyG;/=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Index to Exhibits. @ 3 +Certificate of Incorporation of the Company
3.2**2*Amended and Restated Bylaws of the Company
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"
Specimen Stock Certificateffffff@0(Opinion of Porter ? Hedges, L.L.P., with.&respect to legality of the securities,including consent.333333$@/'Amended and Restated Agreement and Plan1)of Merger among Tamborine Holdings, Inc.,.&SES Acquisition Corporation, Synthesis2*Energy Holdings, Inc. and the shareholders0(of Synthesis Energy Holdings, Inc. dated
April 4, 2005ffffff$@3+First Amendment to the Amended and Restated1)Agreement and Plan of Merger by and among1)the Company, SES Acquisition Corporation,0(Synthesis Energy Holdings, Inc., and the1)shareholders listed on the signature page'thereto dated December 29, 2006D0 lpd@tPLT
p?y, !"#$%&'()*+,./0123456789:;<=>?
!10.3*!.!&Amended and Restated License Agreement""0"(by and between Synthesis Energy Systems,##/#'Inc. and Gas Technology Institute dated$$$August 31, 2006%%%&$@&&%Cooperative Joint Venture Contract of''4',SES (Zaozhuang) New Gas Company Ltd. between((0((Shandong Hai Hua Coal ? Chemical Company))6).Ltd. and Synthesis Energy Systems Investments,***Inc. dated July 6, 2006+++,%@,.,&Amendment to Cooperative Joint Venture3+Contract of SES (Zaozhuang) New Gas Company..5.Ltd. between Shandong Hai Hua Coal ? Chemical//1/)Company Ltd. and Synthesis Energy Systems0000(Investments, Inc. dated November 8, 2006111
210.6*2/2'Contract for Synthesis Gas Purchase and3323*Sales by and between Shandong Hai Hua Coal4444,? Chemical Company Ltd. and Synthesis Energy5505(Systems (Zaozhuang) New Gas Company Ltd.666dated October 22, 2006777
810.7?808(Employment Agreement between the Company99.9&and Timothy E. Vail dated May 30, 2006:::
;10.8?;1;)Amendment to Employment Agreement between<<:<2the Company and Timothy E. Vail dated November 15,==~
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?10.9??0?(Employment Agreement between the CompanyD
lAPb'dzVhm#W1@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@.@&and David Eichinger dated May 30, 2006AAAB10.10?B1B)Amended and Restated Employment AgreementCC1C)between the Company and Donald P. BunnellDDDdated July 14, 2006EEEF10.11?F0F(Consulting Agreement between the CompanyGG/G'and Lorenzo Lamadrid dated May 30, 2006HHHI10.12?I0I(Amended and Restated 2005 Incentive PlanJJJK10.13?K3K+Form of Nonstatutory Stock Option AgreementLLL(four year vesting)MMMN10.14?N3N+Form of Nonstatutory Stock Option AgreementOOO(five year vesting)PPPQL$@Q1Q)Amended and Restated Commitment AgreementRR3R+dated November 30, 2006 between the CompanySS+S#and Union Charter Capital VII, Inc.TTTU5@U$USubsidiaries of the Company.VVVW7@W4W,Consent of Porter ? Hedges, L.L.P. (includedXXXin Exhibit 5.1).YYYZ3333337@Z3Z+Consent of KPMG LLP, Independent Registered[[[Public Accounting Firm.\\\]8@]1])Power of Attorney (contained in signature^^^page)._D l?E`[$^3K'`abc`$a____________________________1b)Created by Morningstar Document Research.0c(http://documentresearch.morningstar.com/<=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsNO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }U}$ }2
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Index to Exhibits. * 2 *Portions of this exhibit have been omitted
.
&pursuant to a request for confidential/'treatment filed with the Securities andExchange Commission
** To be filed by amendment ?0(Management contract or compensatory planor arrangement$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2%pd@\%PD8=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }y#
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE State of Delaware
Secretary of State Division of Corporations%Delivered 04:27 PM 06/27/2005
!
FILED 04:27 PM 06/27/2005$SRV 050535050  3974723 FILE$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,TznJb%=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }>}$ }y#
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE & TEN COM ? as tenants in common % UNIF GIFT MIN ACT ? Custodian
,
$TEN ENT?as tenants by the entireties
( Cust ) (Minor)<4JT TEN ? as joint tenants with right of survivorship%under Uniform Gifts to Minors$and not as tenants in commonAct
( States)1)Additional abbreviations may also be used%though not in the above list.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2Fzn2JbS/#=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }I;
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20076.ARTICLE 3. CONFIDENTIAL DISCLOSURE AND NONUSE(a)1)was in the public domain prior to receipt 0 (under this Agreement or which thereafter
1
)becomes part of the public domain through1)no fault or breach of duty to maintain itconfidential by SES; or
(b)1)SES can show was in its possession at the0(time of receipt under this Agreement; or(c)1)SES receives from a third party which was2*not under an obligation of confidentiality91or nonuse to GTI, either directly or indirectly.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6l`TH;3sx=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }=
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20072*ARTICLE 7. REPRESENTATIONS AND WARRANTIES.(a)2*GTI is aware of the provisions of Rule 144 / 'promulgated under the Securities Act of
.
&1933 (?Rule 144?) which permit limited3+resale of securities purchased in a private3+placement (a) by nonaffiliates of a company
;
3not less than two (2) years after such nonaffiliate/'has purchased and paid for the security6.to be sold, or (b) subject to the satisfaction.&of certain conditions, including among/'other things, the existence of a public3+market for the securities, the availability%of certain current public information0(about SES, the resale occurring not less/'than one (1) years after the securities4,to be sold have been purchased and paid for,5the resale being effected through a ?broker?s0(transaction? or in transactions directly2*with a ?market maker? (as provided by Rule1)144(f)) and the number of securities sold7/during any three (3) month period not exceeding4,specified limitations. SES has no obligation.&to supply the information required forsales under Rule 144.D>lpdXLB)tlhWE !"#$%&'()*+,./0123456789:;<=>? (b) 8 0GTI is acquiring the Common Stock for investment!!!1!)for its own account and not with the view"""1")to, or for resale in connection with, any###,#$distribution thereof. It understands$$$6$.that the Common Stock have not been registered%%%8%0under the Act by reason of a specified exemption&&&/&'from the registration provisions of the'''0'(Act, which requires, among other things,(((4(,the bona fide nature of the GTI?s investment)))#)intent as expressed herein.*++(c)+6+.GTI is authorized and otherwise duly qualified,,,0,(to acquire and hold the Common Stock and2*has not been formed or reorganized for the...0.(specific purpose of acquiring the Common////Stock.011(d)131+GTI believes it is an ?accredited investor?22202((as defined in Section 501 of Regulation33303(D under the Securities Act of 1933), but44434+if it is not an ?accredited investor?, then55545,it is by virtue of its business or financial66606(experience or its relationship to SES or777/7'SES?s management, capable of evaluating88808(the merits and risks of an investment in99929*the Common Stock and the GTI is capable of:::0:(protecting its own interest with respect;;;2;*to its investment in the Common Stock, and<<<2<*is financially capable of bearing the risk====of that investment.>?DClD9*wdlaVLU@AB$@____________________________1A)Created by Morningstar Document Research.0B(http://documentresearch.morningstar.com/
(=PF0*8X>
@BBAA@@
l 7+
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }@
7
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007C;Total Investment, Registered Capital and Form of Investment0(take effect only after approval has been 6 .given by the original examination and approval
authority.~
1)Subject to Article 14(1), if either Party
0
((the ? Transferring Party ?) proposes to2*transfer all or a portion of its Ownership4,Share to a third party, the other Party (the6.? Other Party ?) shall have the right of first2*refusal in purchasing such Ownership Share3+at the same terms and conditions as offered/'by the Transferring Party to that third3+party. The Transferring Party shall provide7/a written notice to the Other Party, specifying0(the terms and conditions to the proposed0(transfer of such Ownership Share. If the/'Other Party fails to exercise its right7/of first refusal with respect to such Ownership1)Share within fifteen (15) days of receipt5of the written notice, then, the Transferring2*Party may opt to sell such Ownership Share3+to any third party under the same terms and2*conditions; provided that if such transfer/'has not occurred within sixty (60) daysDPl_SG;K?2xlZL< !"#$%&'()*+,./0123456 = 5of the receipt by the Other Party of the Transferring!!!3!+Party?s notice, such notice shall be deemed""""ineffective.#$~
$$2$*If either Party transfers all or a portion%%%4%,of its Ownership Share pursuant to the terms&&&0&(of this Contract, the transferee of such'''.'&Ownership Share shall agree to perform(((,($its obligations and responsibilities)))0)(hereunder with respect to such Ownership***1*)Share. In addition, such transferee shall+++2+*be able to enjoy its rights hereunder with,,,(, respect to such Ownership Share..~
../.'Each Party herby consents to any future///7//transfer by the other Party of all or a portion00010)of its Ownership Share to an Affiliate of1111such Party.23$4____________________________15)Created by Morningstar Document Research.06(http://documentresearch.morningstar.com/2@@>3~sK=PF0*8X>
@665544
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered CapResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }y<
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'Responsibilities of the Parties~
5Providing its registered capital contribution 0 (to the JV Company in accordance with the
&
stipulations of this Contract;~
80Assisting the JV Company to obtain all necessary
/
'approvals and permits from the Relevant7/State Agencies to bring about the effectiveness5of this Contract, the Articles of Association5and Other Project Documents of the JV Company4,and to enable the Parties and the JV Company%to perform the responsibilities under all the above documents;~
7/Assisting the JV Company to obtain its Business%License from the State Administration:2for Industry and Commerce or from the institutionsauthorized thereby;$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@D{ocWRF.t{oW=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }y<
*
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'Responsibilities of the Parties~
80Assisting the JV Company to obtain all necessary ( consents, approvals or licenses;
~
1)Assisting the JV Company to apply for and1)obtain tax preference or exemption, value
1
)added tax rebates for gange projects, and4,other preferential policies or tax treatment7/for investment which the JV Company is entitled3+to pursuant to Chinese national, provincial0(or local laws, regulations and policies;~
0(Assisting the JV Company to apply for in0(a timely manner and obtain all documents:2required for the contractor under the construction3+contract to start and complete construction
of the Plant;~
/'Assisting the JV Company to undergo all/'formalities for the import of necessary%machines and equipment, raw materials0(and goods, and helping the JV Company to,$arrange for domestic transportation;~
%Performing its obligations under thisD:
l{ocW>0v`fZU !"#$%&'()  %Contract and Other Project Documents;!!!!and"#~
##.#&Handling other matters entrusted to it$$$$by the JV Company.%&$'____________________________1()Created by Morningstar Document Research.0)(http://documentresearch.morningstar.com/xl=PF0*8X>
@))((''
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }y<
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'Responsibilities of the Parties~
5Providing its registered capital contribution 0 (to the JV Company in accordance with the
&
stipulations of this Contract;~
%Performing its obligations under this

%Contract and Other Project Documents;~
80Assisting the JV Company to obtain all necessary/'approvals and permits from the Relevant7/State Agencies to bring about the effectiveness5of this Contract, the Articles of Association5and Other Project Documents of the JV Company4,and to enable the Parties and the JV Company%to perform the responsibilities under all the above documents;~
7/Assisting the JV Company to obtain its Business%License from the State Administration:2for Industry and Commerce or from the institutionsauthorized thereby;~
80Assisting the JV Company to obtain all necessary1)consents, approvals or licenses to enable3+the JV Company to obtain sufficient foreignDF
l{ocWRF,v`V\P !"#$%&'()*+,./0123456789:; 0 (exchange required for performing all its!!!!%foreign exchange obligations, and for"""1")purchasing foreign exchange and remitting####
it abroad;$%~
%%5%Assisting the JV Company to raise financings,&&&7&/and in particular, to liaise with international'''2'*banks, to structure the relevant financing(((1()plan and to review the relevant financing))))documentation;*+~
++1+)Assisting the JV Company to apply for and,,,/,'obtain tax preference or exemption, VAT91rebates for gange project, and other preferential...5.treatment for investment which the JV Company///3/+is entitled to pursuant to Chinese national00000(or local laws, regulations and policies;12~
22/2'Assisting the JV Company to undergo all333/3'formalities for the import of necessary4444%machines and equipment, raw materials55505(and goods, and helping the JV Company to666,6$arrange for domestic transportation;78$9____________________________1:)Created by Morningstar Document Research.0;(http://documentresearch.morningstar.com/< SUCG.qm
=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }=
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Board of Directors~
0(In the event that the Board of Directors 5 fails to reach an agreement due to any reason
0
(on a matter requiring unanimous approval3+of all the directors, Hai Hua and SES shall.&conduct friendly consultation and make
0
(all reasonable efforts in order to reach4,a unanimous decision on the relevant matter.~
;3All matters except those set forth in Article 24(2)0(shall be decided by a simple majority of/'the directors attending in person or by+#proxy a Board of Directors meeting.~
4,The Chairman of the Board of Directors shall6.be the legal representative of the JV Company.0(In the event that the Chairman is unable0(to perform his duties, the Vice Chairman1)or any other director shall be authorized1)by the Chairman to temporarily act on hisbehalf.~
3+The Board of Directors shall hold a meeting80at least twice a year, to be called and presided0(over by the Chairman. A special Board ofD
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UL'}q]S !"#$%&'()*+,./0123456789:;<=>? 0 (Directors meeting shall be called by the!!!1!)Chairman at the request of at least three"""5"directors. Minutes of each Board of Directors###1#)meeting shall be kept on file. Notices of$$$.$&such Board of Directors meetings shall%%%5%be provided in writing at least 15 days prior&&&5&to the date of such meeting. If proper notice'''1')is given and a Party does not send enough(((4(,directors to constitute a quorum as outlined)))1))in paragraph (7) below, then the Chairman***3*+may provide a second notice of such meeting+++2+*in writing at least five (5) days prior to,,,!,the date of such meeting..~
..1.)From the date of issuance of the Business///0/(License of the JV Company until 20 years000.0&after the Commercial Operation Date of11161.the Plant, the quorum for a Board of Directors22202(meeting shall be three (3) SES appointed333/3'directors and one (1) Hai Hua appointed44444,director. From 20 years after the Commercial55515)Operation Date of the Plant until the end666860of the Term, the quorum for a Board of Directors777870meeting shall be two (2) SES appointed directors88808(and two (2) Hai Hua appointed directors.99909(If proper notice of a Board of Directors:::1:)meetings is given and a quorum can not be;;;/;'formed because a Party?s director(s) do<<<0<(not attend, then a second notice of such===2=*meeting may be given pursuant to paragraph>>>1>)(6) above and a quorum shall be deemed to???4?,exist even if such Party again fails to sendDa
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[F6.@ABCDEF@@@1@)the requisite number of directors to formAAAA a quorum.BC$D____________________________1E)Created by Morningstar Document Research.0F(http://documentresearch.morningstar.com/xnbV.=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of DirectorsSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }}$ }$}$ }I;
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007)!Term, Termination and Liquidation ~
5 If SES is unable to recover by the end of the
9
1Term the total of (a) its original USD registered2*capital contribution (through depreciation80and amortisation in accordance with Article 42),
.
&(b) all shareholder?s loans then owing2*to SES, and (c) an amount representing the7/interest calculated on the basis of an interest3+rate of 12% per annum (compounded annually)1)on SES?s original USD contribution to the0(registered capital of the JV Company for1)the duration of the Term, the Term may be0(extended for a period not exceeding five1)(5) years on the written agreement of the/'Parties. If the Parties cannot agree to1)an extension of the Term, Hai Hua may, at2*its option, pay SES an amount equal to the3+difference between (i) the sum of the above2*items (a), (b) and (c) and (ii) the amount1)actually paid to SES by the JV Company in0(the form of distribution of depreciation3+and amortisation of the JV Company?s assets/'and Distributable Profits by the end of5the Term. If Hai Hua decides not to make suchDlymaU~{}" !"#$%&'()*+,./0123456789:;<=>? 2 *a payment, then the Fixed Assets of the JV!!!!!!/!'Company shall not automatically vest in""""""3"+Hai Hua at the expiry of the Term but shall######0#(instead be liquidated in accordance with$$$$$$8$0Applicable Laws and the Articles of Association.%%%%%%/%'Any remaining assets of the JV Company,&&&&&&/&'after the discharge of the JV Company?s''''''0'(liabilities, shall be distributed to SES((((((0((and Hai Hua in accordance with the ratio))))))))!of each Parties? Ownership Share.*******+
Article 56+++++1+)Under any of the following circumstances,,,,,,,6,.any Party shall be entitled to issue a written2*notice prior to the expiration of the Term....../.'to the other Party, which expresses its///////%intention to terminate this Contract:0000000111~
11101(if the JV Company goes bankrupt, becomes22222222*the subject of liquidation and dissolution3333333%procedures, ceases business operation4444444or becomes insolvent;5555555666~
666860if the Tolling Contract is terminated (including77777747,a termination as a result of Force Majeure),88888828*or if the other Party fails to perform any9999999%material duties and obligations under::::::.:&this Contract or the Tolling Contract,;;;;;;6;.but only the nonbreaching Party may terminate<<<<<<3<+this Contract and the breaching Party shall======.=¬ have termination rights under this>>>>>>3>+Article 56 (2). If a Party issues a written??????9?1notice pursuant to this Article 56 (2) requestingDl
%JJV$JLYX@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@@@@@0@(an early termination hereof, the PartiesAAAAAA1A)shall commence consultation within thirtyBBBBBB1B)(30) days of issuance of such notice, andCCCCCC3C+shall try their best to resolve the mattersDDDDDD1D)resulting in such notice. If the relevantEEEEEE7E/matters are not resolved in a form satisfactoryFFFFFF1F)to the Parties within a further period ofGGGGGG/G'thirty (30) days, the Party issuing theHHHHHH4H,notice may issue to the other Party a secondIIIIII2I*written notice (? Notice of Termination ?)JJJJJJ2J*notifying the other Party of the immediateKKKKKK4K,termination of this Contract and dissolutionLLLLLLLof the JV Company.MMMMMMMN
Article 57NN~
NNN1N)If this Contract is terminated in advanceOOOOOO1O)pursuant to Article 56(1), the JV CompanyPPPPPP7P/shall use its assets to settle its liabilities.QQQQQQ5QAfter clearing its debts, all other remainingRRRRRR0R(assets shall be liquidated in accordanceSSSSSS0S(with Applicable Laws and the Articles ofTTTTTT.T&Association. However, account shall beUUUUUU9U1given to funds that have already been distributedVVVVVV)V!to the Parties by the JV Company.WWWWWWWXXX~
XXX1X)If this Contract is terminated in advanceYYYYYY1Y)pursuant to Article 56(2) for reasons dueZZZZZZ3Z+to a material default by either party, then[[[[[[2[*the breaching Party shall be liable to the\\\\\\/\'nonbreaching Party for all damages and]]]]]]0](lost profits in accordance with relevant^^^^^^^PRC law._DEl]WS[\`abc`$a____________________________1b)Created by Morningstar Document Research.0c(http://documentresearch.morningstar.com/<=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }I;
/
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Settlement of Disputes~
80any arbitration shall be conducted in accordance 1 )with the CIETAC Arbitration Rules and the
&
provisions of this Article 63;~
2*Either Party may refer a dispute to CIETAC

%for arbitration regardless of whether/'or not it has exercised its termination&rights under Article 56 above.~
.&the arbitration tribunal shall consist.&of three arbitrators, one appointed by4,SES, one by Hai Hua and the third arbitrator/'(the ?Presiding Arbitrator? ) appointed0(by agreement between the Parties, or, if1)the Parties cannot agree, by the Chairman
of CIETAC;~
2*no arbitrator may be (i) a national of the1)PRC or of the United States of America or2*(ii) a permanent resident of the Hong Kong.&Special Administrative Region or Macau/'Special Administrative Region or Taiwan4,Province, and if either of the Parties fails0(to appoint an arbitrator within the timeD_
lxl`WKC;05, !"#$%&'()*+,. 9 1specified in Article 16 of the CIETAC Arbitration!!!0!(Rules, the Chairman of CIETAC shall make"""2"*such appointment taking into consideration###0#(the criteria set out in this Article 63;$%~
%%3%+the Presiding Arbitrator (and any successor&&&0&(or replacement appointed in place of any'''1')Presiding Arbitrator initially appointed)(((3(+shall be a national of one of the following))))
countries:*+$,____________________________1)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"G,{ =PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesNO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }}$ } $}
$ }}
$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Settlement of Disputes
~
Australia ~
Sweden
~
Belgium~
Switzerland
~
The Philippines
~
India
~
The Netherlands~
New Zealand
2*and, the Chairman of CIETAC shall make the/'appointment of the Presiding Arbitrator.&taking into consideration the criteria$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2
xl`1g3aGr=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }y<
#
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE(a)/'agrees that any arbitral award shall be final and binding;
(b)3+undertakes that it will execute and perform3+the arbitral award fully and without delay;
(c)5waives any right which it may have to contest1)the validity of the arbitration agreement6.set forth in this Contract or the jurisdiction:2of CIETAC to hear and to determine any arbitration*"begun pursuant to this Article 63;(d)5the costs of the arbitration, the arbitration1)fees and the liability for other expenses2*shall be borne by the losing Party, unless/'otherwise determined by the arbitration tribunal;(e)3+the provisions of Chapter III of the CIETAC%Arbitration Rules (concerning summary.&procedure) are excluded to the maximumextent permissible.Di lznh
H6*q{r/ !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }@
:
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007G?Effectiveness and Confidentiality of Contract and Miscellaneous~
/'the Parties agree that all confidential / 'information (regardless of whether such
/
'information is in writing or otherwise)0(provided (directly or indirectly) by the3+Parties to each other and to the JV Company
.
&must be kept confidential, information1)required to be disclosed by this Contract.&or information disclosed in accordance1)with the provisions of the laws excepted;~
5the Parties are hereby authorised to disclose%any confidential information obtained6.from each other to their respective Affiliates1)and professional advisers so long as such0(Affiliates or advisors are also bound by6.the same confidentiality provisions hereunder.~
.&?confidential information? as referred7/to in Article 67 of this Contract shall include6.all information and data disclosed (regardless1)of whether such information is in writing2*or otherwise, or whether provided directly91or indirectly) by the Parties or their Affiliates2*to the other Party or its Affiliates priorDl[OC70}'x_P/x !"#$%&'()*+,./0123456789 0 (or after the execution of this Contract,!!!0!(including but not limited to information"""4",related to their products, plan, proprietary###,#$technology, design rights, technical$$$3$+information, technical designs or drawings,%%%/%'commercial secrets, confidential market&&&0&(information and any information relating'''2'*to their businesses. However, this Article(((1()shall not apply to (a) any information in)))2)*the public domain otherwise than by breach***0*(of this Contract; (b) information in the+++0+(possession of the receiving party before,,,.,&divulgence as aforesaid, and which was=5not obtained under any obligation of confidentiality;...3.+(c) information obtained from a third party///2/*who is free to divulge the same, and which000/0'is not obtained under any obligation of111,1$confidentiality; and (d) information222.2&required to be disclosed by applicable333:32law, a judicial order or the rules of a recognised4444stock exchange.56$7____________________________18)Created by Morningstar Document Research.09(http://documentresearch.morningstar.com/8 PE<1ih=PF0*8X>
@998877
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and ConfidentialiRepresentations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }y<
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20071)Representations, Warranties and Indemnity~
7/it is established under the laws of its country  %of incorporation with effective legal
5
status and possesses full power and authority2*to enter into this Contract and to perform"its obligations hereunder;
~
2*the execution and performance of the terms/'of this Contract will not contravene or3+constitute a default under its constitution4,documents or any other agreement or document5by which it is bound or any law or regulation#to which it is subject; and~
7/on the date of this Contract, it is not subject/'to any litigation, arbitration or other.&dispute resolution proceeding, nor is,:2to the best of its knowledge, any such litigation,/'arbitration or other dispute resolution&proceeding pending against it.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/D lqeYM:. xl^WK?=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }=
/
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20071)Representations, Warranties and Indemnity~
1)If the Plant is built on land contributed 3 +to the JV Company by Hai Hua, that the site
5
of the Plant is suitable for the construction5of the Plant and is free from ground, surface0(water or underground water contamination
/
'or other environmental defects that may0(have a material adverse effect on the JVCompany;~
1)the JV Company will be entitled to import%equipment constituting the Plant free3+from import duties and VAT, and Hai Hua has2*not done anything, nor is Hai Hua aware of.&any circumstances, which may adversely.&affect the JV Company?s entitlement to%legally import such equipment without0(the payment of import duties or VAT; and~
0(all information represented or disclosed91by Hai Hua to SES or SES?s professional advisers,2*orally or in writing, prior to the date of/'this Contract in respect of the Project4,(? Disclosed Information ?) does not contain/'anything which is, or which renders theD
lqeYM:.7,n
\ !"#$%&'()*+,. 1 )Disclosed Information, untrue, inaccurate!!!0!(or misleading in any material respect or"""5"omits to state any fact the omission of which###;#3makes or will make any of the Disclosed Information$$$3$+materially untrue, inaccurate or misleading%%%4%,and all estimates, forecasts and projections&&&0&(and all expressions of opinion contained'''/''therein were honestly prepared and made(((3(+on reasonable grounds after due and careful))))enquiry by Hai Hua.*+$,____________________________1)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"JO4)sK=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }y<
$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20071)Representations, Warranties and Indemnity2*renders the Disclosed Information, untrue, 0 (inaccurate or misleading in any material
7
/respect or omits to state any fact the omission80of which makes or will make any of the Disclosed1)Information materially untrue, inaccurate
2
*or misleading and all estimates, forecasts.&and projections and all expressions of/'opinion contained therein were honestly/'prepared and made on reasonable grounds%after due and careful enquiry by SES;~
80On the date of this Contract, SES is not subject/'to any litigation, arbitration or other.&dispute resolution proceeding, nor is,:2to the best of its knowledge, any such litigation,/'arbitration or other dispute resolution+#proceeding pending against SES; and~
5An Affiliate of SES is the sole and exclusive/'licensee of the gasification technology2*to be used by the Project and there are no.&existing disputes with regards to suchrights.D
lqeYM<)%bS>7 !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/<=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2)147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }y
}$ }1
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Notices To SES:
Address:%Synthesis Energy Systems Investments,1)Inc, 916 Jin Zhong Building, 680 Zhao Jia
.
&Bang Road, Shanghai 200031 China, PostCode: 200031Fax:(8621) 64155172$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.{oK ^k=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }U}$ }2
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007"#147;Distributable Profits~
2*all costs of the JV Company (including but . ¬ limited to operating and financing
costs);~
/'all taxes or reserves for taxes payable
by the JV Company;~
0(amount to be credited to the Three Fundsof the JV Company.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0th\>xl`8=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }0
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007&Schedule of Imported Equipment ?.&Enginegenerators sets for compression of gas
?Air Separation Unit
?
0
(Gasifier external and internal equipment ?Plant control systems ?Ultrafine filter ?Other equipment$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6spdX{o
vj*=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported EquipmentNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007IACooperative Joint Venture Contract and Articles of Association of(i).&Reviewing the JV Company?s accounting;
(ii)
0
(Reviewing the work performance of the JV3+Company?s Board members and senior managers1)and, if the situation warrants, providing
0
(suggestions for dismissing Board members2*or senior managers for violations of laws,2*administrative regulations, these Articles!or any Board resolutions;
(iii)2*If a Board member or senior manager of the4,JV Company harms the JV Company?s interests,/'the Supervisor may recommend correctiveactions; and(iv).&The Supervisor may recommend dates forBoard meetings.~
2*In the JV Contract and Articles delete all,$references to ?Tolling Contract? and.&substitute ?Contract for Synthesis Gas,$Purchase and Sales? in lieu thereof.D lYMA5thk_Ml`Z !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/
(=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture Contr 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }8
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE(a)0(approval of the Feasibility Study of the / 'Project by the Relevant State Agencies;
(b)7/approval of the Environmental Impact Assessment3+report of the Project by the Relevant State
Agencies;(c).&approval of the joint venture contract2*and articles of association of the Company+#by the Relevant State Agencies; and(d)1)approval of the land required for project4,construction by the Relevant State Agencies.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8znNU@=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6)1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }:
!
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
3.1.1/'Design the Plant, procure equipment for  %the Plant, and supervise construction
of the Plant;
3.1.25Be responsible for the production, operation,
0
(maintenance and management of the Plant;
3.1.37/Perform its obligations hereunder in accordance0(with the Annual Synthesis Gas Generation80Plan and Maintenance Plan prepared in accordance80with Sections 3.3.2 and 3.3.3 (respectively) and/'coordinate its operations, planned shut0(downs and maintenance with the Hai Hua?s6.operations, planned shut downs and maintenance3+so as to minimize interruptions to Hai Hua,0(and to minimise the effects of unplannedshut downs;
3.1.4.&Recruit and retain qualified staff and0(workers to perform Plant operations; and$____________________________1)Created by Morningstar Document Research.D l{ocWi]3{l[ aUI 0 (http://documentresearch.morningstar.com/H=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
3.2.14,Pay the Capacity Fee and Energy Fee pursuant & to the terms of this Contract;
3.2.2/'Provide at the Plant?s boundary, piping/'for the Plant?s acceptance of steam and
7
/coke oven gas from Hai Hua and for the delivery$of synthesis gas to Hai Hua;
3.2.3.&Provide the Input Commodities and coal80storage facilities as described in Section 4.1.5of this Contract; and
3.2.4/'Coordinate its operations, planned shut.&downs and maintenance with the Plant?s7/operations, planned shut downs and maintenance,1)so as to ensure that Hai Hua purchases as/'much synthesis gas as possible from theCompany.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BX{ocW@>2w2&te!=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
3.3.1,$Preparation of preliminary synthesis 6 .gas usage plan : To ensure efficient operation
1
)of the Plant, Hai Hua shall prepare, by 15October of each Year, a preliminary synthesis5gas usage plan for the following Year stating
1
)the expected synthesis gas (in Ncum/hour)/'requirements of Hai Hua. Each synthesis3+gas usage plan shall describe in reasonable.&detail Hai Hua?s expected requirements91for each month of the following Year, operational5changes at Hai Hua which may affect Hai Hua?s.&requirements, and expected maintenanceand outages; and2*In respect of the first Year of Commercial.&Operation, a preliminary synthesis gas0(usage plan in respect of that Year shall3+be prepared by Hai Hua and submitted to the6.Company at least 40 days before the Commercial( Operation Date of this Contract.4,In any event Hai Hua shall not in any of its.&synthesis gas usage plans require less,$than 19,000 Ncum/hour of Net Syngas.D
l{ocWG4,nriS !"#$%&'()*+,./0123456789:;<=>? !
!3.3.2!.!&Annual Synthesis Gas Generation Plan :"""1")By no later than 1 November of each Year,###.#&the Company shall prepare and finalise$$$0$(the Annual Synthesis Gas Generation Plan%%%4%,and shall set out the anticipated generation&&&5&of the Plant (broken down on a monthly basis)'''0'(for the following Year, and shall submit(((0((such plans to Hai Hua. The Company shall)))0)(make its best efforts to ensure that its***4*,Annual Synthesis Gas Generation plan matches+++++#Hai Hua?s synthesis gas usage plan.,2*In respect of the first Year of Commercial...6..Operation, the Annual Synthesis Gas Generation///7//Plan in respect of that Year shall be submitted00030+to Hai Hua within 30 days of the receipt of11111)Hai Hua?s first synthesis gas usage plan.23
33.3.3363.Maintenance Plan : Hai Hua shall, by 1 October44424*of each Year, prepare the Maintenance Plan55555(which shall set out the maintenance schedule66606(and all scheduled outages of the Hai Hua77717)facilities) for the following Year, which888:82shall be submitted to the Company. The Maintenance99909(Plan shall include equipment maintenance::::and repair plan.;<$=____________________________1>)Created by Morningstar Document Research.0?(http://documentresearch.morningstar.com/Dl@6)u"^K?%tznb:=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
4.1.16.The Company shall be responsible for procuring 4 ,coal, power, water and all other consumables
5
except for the Input Commodities. The Company/'shall be entitled to recover such costs%(including transportation costs where
.
&applicable) through payment by Hai Hua3+of the Energy Fee outlined in Appendix III.4,Hai Hua shall offer to sell low quality coal/'to the Company on the basis the Company0(shall have the right of first refusal to/'purchase low quality coal from Hai Hua./'For the avoidance of doubt, the Company/'shall have the right to decide the type4,and quality of coal to be purchased and used0(in the Plant to produce synthesis gas in3+accordance with Appendix II, and the actual1)costs of the coal shall have no effect on;3the Energy Fee calculated pursuant to Appendix III,3+except to the extent Energy Fee is adjustedunder Appendix III.
4.1.2/'During the twelve (12) months after the0(Commercial Operation Date, any time that/'Hai Hua requires synthesis gas, Hai HuaD2l{ocW;9+%rfeY !"#$%&'()*+,./0123456789:;<=>? 3 +shall deliver coke and coke oven gas to the!!!/!'Company free of charge, at the Delivery"""5"Point. If during the first twelve (12) months###/#'after the Commercial Operation Date the$$$0$(Company?s usage of coke oven gas exceeds%%%0%(100,000 Ncum, then the Company shall pay&&&9&1Hai Hua for any amounts of coke oven gas consumed'''7'/above 100,000Ncum, as outlined in Appendix III.(((1()If during the first twelve (12) after the)))/)'Commercial Operation Date the Company?s***0*(usage of coke exceeds 600 tons, then the+++1+)Company shall pay Hai Hua for any amounts,,,4,,of coke consumed above 600 tons, as outlined/'in Appendix III. After the first twelve....%(12) months of commercial operations,///8/0the Company shall pay for such Input Commodities000$0as outlined in Appendix III.12
24.1.3222*The Company is unable to produce synthesis33333+gas for Hai Hua if Hai Hua does not deliver44444,the Input Commodities to the Company. During55565.such period(s) when the Plant is not producing66616)synthesis gas due to Hai Hua?s failure to777;73deliver Input Commodities under this Section 4.1.3,88818)the Plant shall be deemed to be available99929*to produce synthesis gas at the Guaranteed:::/:'Capacity, Hai Hua shall not be relieved;;;0;(from its payment obligations as outlined<<<3<+in Section 6 and the Capacity Fee shall not===4=,be affected in any way by this non delivery.>?
?4.1.4?9?1Within 30 days of the execution of this Contract,D2
lNB*z"ma O<&w@ABCDEFGH@@@5@the Parties shall meet to agree on a suitableAAA1A)Delivery Point for the Input Commodities,BBB7B/and such Delivery Point shall be at the Plant?sCCCC boundary.DE$F____________________________1G)Created by Morningstar Document Research.0H(http://documentresearch.morningstar.com/Jr=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
4.1.5Coal Storage Facilities
2
*by 1 January 2007, Hai Hua shall set aside2*approximately 10 mu of cleared land on its1)site that the Company will use to build a
5
covered coal storage facility for the Project.&(?Coal Storage Facility?), as outlined"in the map in Appendix VI.2*Hai Hua shall provide all necessary access7/and rights of way to the Coal Storage Facility.4,During the Term of Operations, Hai Hua shall5allow the Company to control the Coal Storage%Facility site and to install boundary0(fencing, draining systems, guard houses,/'warehouses and other service buildings,.&storage and assembly yards, and obtain2*any permits necessary for the installation2*and safe and efficient use of Coal Storage1)Facility. The Coal Storage Facility shall0(be under the sole control of the Company1)who may operate it with its own personnel7/and who may make improvements and modifications6.to it, including without limitation a conveyorD
l{ocWK?0w"si_ !"#$%&'()*+,./0123456789:;<=>? system.!"
"4.1.6"2"*Input Commodities (Coke and Coke Oven Gas)#$$$2$*Input commodities in the form of coke oven%%%7%/gas shall be provided by Hai Hua to the Company&&&0&(for startup of the Plant?s gasifier and'''3'+shall be of the same quality as the gas Hai(((2(*Hua provides to the city gas loop. Hai Hua)))7)/shall also provide coke oven gas to the Company***.*&for its coal drying system. Other than+++4+,the free coke oven gas to be provided by Hai,,,0,(Hua as outlined under Section 4.1.2, the2*Company shall pay for the coke oven gas at...+.#the price outlined in Appendix III./00030+Input commodities in the form of Coke shall11121*be provided by Hai Hua to the Company as a22222*secondary startup of fuel for the Plant?s33323*gasifiers and shall be of the same quality44454as the coke Hai Hua provides to its customers55565.and shall be provided by Hai Hua at the sizing66606(specified by the Company. Within 60 days77727*of execution of this Contract, the Company888<84shall provide Hai Hua with the sizing specifications99919)for such coke. Other than free coke to be:::<:4provided by Hai Hua as outlined under Section 4.1.2,;;;1;)the Company shall pay for the coke at the<<<'<price outlined in Appendix III.=>>>1>)In addition to the Input Commodities, Hai???1?)Hua shall make its best efforts to supplyDsl^RA{#vj[F0s@ABCDEFGHIJKLMNOPQRSTUV@@@0@(the Company steam not exceeding ten (10)AAA/A'tonnes/hour for startup of the Plant?sBBB0B(gasifiers and paid for by the Company atCCC/C'the price outlined in Appendix III. HaiDDD1D)Hua shall provide steam at 0.7 MPa(g) andEEE6E.at 260 degrees C. If Hai Hua has made its bestFFF3F+efforts but is unable to meet all the steamGGG1G)requirements of the Company for startup,HHH2H*this shall not be construed as Hai Hua notIII2I*providing Input Commodities to the CompanyJJJ)J!in accordance with this Contract.KL
L4.1.7L/L'The Parties agree, the value of variousMMM6M.items to be provided by Hai Hua to the CompanyNNN0N(shall not exceed five (5) percent of theOOO0O(final registered capital of the Company.PPP/P'These items include but are not limitedQQQQto:RS$T____________________________1U)Created by Morningstar Document Research.0V(http://documentresearch.morningstar.com/2CQI72&le2&=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
4.2.11)The Company shall make reasonable efforts 2 *to keep synthesis gas supply interruptions
9
1to a minimum and whenever reasonably practicable,=5provide Hai Hua with notice prior to an interruption.6.The Company?s only liability for interruptions
4
,in synthesis gas supply (including a failure0(to supply gas when requested by Hai Hua)2*shall be the reduction of the Capacity Fee#as outlined in Appendix IV.
4.2.291So long as Hai Hua delivers the Input Commodities/'to the Delivery Point the Company shall1)produce synthesis gas, in accordance with3+the specifications outlined in Appendix II,1)and deliver such synthesis gas to Hai Hua0(at the Delivery Point. The Company shall/'produce and shall deliver to Hai Hua up3+to 22,000 Ncum/hour of Net Syngas. The ash,6.sulfur and other byproducts that are produced2*from the conversion of coal into synthesis4,gas (including the proceeds of sale thereof)%shall be the property of the Company.
4.2.391The Company is entitled to sell at its discretionDl{ocW>{m"YLB. !"#$%&'( 2 *other products to third parties or provide!!!3!+other services which the Company is capable"""4",of producing or providing, but Hai Hua shall###$#have right of first refusal.$%$&____________________________1')Created by Morningstar Document Research.0((http://documentresearch.morningstar.com/Kc=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction333333@Effect of Force Majeure
2
*In the event of the occurrence of an event/'of Force Majeure, the Party affected by2*the Force Majeure event (?Affected Party?)
0
(shall notify the other Party immediately/'and shall provide formal notice thereof/'in writing within 15 days together with/'documents providing sufficient evidence2*of the cause of the event, and an estimate1)of (1) the downtime period and/or (2) the0(reduction in Hai Hua?s ability to supply.&the Input Commodities or the Company?s0(ability to produce synthesis gas, as the4,case may be. The Affected Party?s obligation5to perform its obligations shall be suspended4,for the duration of the actual delay arising0(directly out of the Force Majeure event.2*The Parties shall immediately meet to find4,a fair solution and shall make all practical91and possible efforts to mitigate the consequences&of the event of Force Majeure.D
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Constructionffffff@.&Construction of the Plant: The Company / 'shall be responsible for the financing,
0
(design and construction of the Plant and7/the procurement, installation and commissioning/'of equipment therein. The Company shall
4
,make all reasonable efforts to begin initial/'syngas production by June/July 2007 and6.enter Commercial Operation in August/September~
^@3+Coordination in Respect of the Construction7/of the Plant : The Company shall be responsible3+for the construction of the Plant and shall/'assume all costs and risks with respect)!to the construction of the Plant.333333@%Construction Coordinating Committee :/'Immediately following execution of this%Contract, the Parties shall establish/'the construction coordinating committee4,(the ? Construction Coordinating Committee ?%comprising two (2) representatives of.&the Company and two (2) representative.&of Hai Hua. Such representatives shallD
l{ocWL:SG,xqi !"#$%&'()*+,./0123456789:;<=>? 6 .determine by consensus the venue and frequency!!!7!/of their meetings, as well as other formalities"""8"0such as the keeping of minutes and communication###"#among the representatives.$%%@%2%*Coordination of Testing and Commissioning:&&&5&The Parties shall coordinate the construction'''/''of the interfaces between the Plant and(((2(*the Hai Hua Plant, and the carrying out of))).)&commissioning and testing of the Plant****%through the Construction Coordinating+++5+Committee. The objective of such coordination,,,<,4shall be to minimise any delays to the commissioning0(and testing of the Plant and the Parties.....&shall use reasonable efforts to ensure/////'that each of them supplies and/or takes00000(receipt of utilities (in the case of Hai111.1&Hua taking synthesis gas and supplying222.2&the Input Commodities) in such amounts33373/and at such times as may be reasonably required44424*by the other Party for the purpose of such55505(commissioning and testing subject to the666/6'payment of charges as set forth in this7777 Contract.899@969.Supply of Water and Power during Construction::::1:)During the construction of the Plant, Hai;;;7;/Hua shall supply power and water to the Company<<</<'and the Company shall reimburse Hai Hua===7=/for the actual cost of power and water consumed>>>1>)by the Company. Hai Hua shall invoice the???1?)Company on a monthly basis for such costsD
lCyt[VKB @+@ABCDEF@@@0@(and the Company shall pay Hai Hua withinAAA4A,14 days after issuance of Hai Hua?s invoice.BC$D____________________________1E)Created by Morningstar Document Research.0F(http://documentresearch.morningstar.com/xL@4=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction
Energy Fee * Ncum of Net Syngas
Capacity Payment
* Ncum of Net SyngasTotal Syngas Fee* Ncum of Net Syngas
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/&@{ocWa=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction0(The Capacity Fee shall be escalated over 4 ,the Contract Term as outlined in Appendix IV
8
0and the Energy Fee shall be adjusted as outlined0(in Appendix III. However, if the Parties80have agreed to make adjustments to the synthesis
3
+gas prices in accordance with Appendix VII,2*the Parties shall adopt the newly adjustedprices.333333@+#Testing/Commissioning Synthesis Gas0(Price: Prior to the Commercial Operation4,Date of the Plant, the Company shall produce1)synthesis gas as part of its start up and%commissioning work. Provided that the2*quality of synthesis gas produced complies0(with Appendix II, the Company may at any.&time prior to the Commercial Operation3+Date, by notice in writing from the Company3+to Hai Hua, supply synthesis gas to Hai Hua2*in such amounts and in such periods as may1)be specified in such notices. During this,$precommercial operation period, Hai4,Hua shall pay 50% of the Capacity Fee to the+#Company and 100% of the Energy Fee.Dl{ocWC0:~&ug !"#$%&'()*+,./0123456789:;<=>? !!@!.!&Excess Amounts: If the Company?s first"""5"phase is able to produce Net Syngas in excess###0#(of 22,000 Ncum an hour, then the Company$$$6$.shall offer to sell to Hai Hua all such excess%%%:%2synthesis gas, at the rates set out in Appendix V.&'''2'*If Hai Hua does not exercise that right to(((.(&purchase the excess synthesis gas, the)))3)+Company may sell such additional quantities***2**to a third party, provided such additional+++2+*synthesis gas shall not be sold at a price,,,4,,lower than the prevailing price of synthesisgas sold to Hai Hua..//@/1/)As outlined in Section 4.1.3 above, after0000%the Commercial Operation Date, if Hai11121*Hua does not provide the Input Commodities22212)to the Project, then the Company shall be33303(unable to produce synthesis gas, but Hai444/4'Hua shall still be obligated to pay the5555
Capacity Fee.677ffffff@707(Unless the Plant is affected by an event88858of Force Majeure, provided that the synthesis999:92gas meets the quality requirements of Appendix II,:::0:(the responsibility of Hai Hua to pay the;;;1;)Capacity Fee, as outlined in Appendix IV,<<<2<*shall not be affected by any circumstances===(= whatsoever and howsoever caused.>??@?0?(Financing Guarantee : Upon the executionDl;#gXMEYM0%@ABCDEFGHIJKLMNOPQRSTUVW@@@4@,of this Contract and after SES? contributionAAA/A'of 15 percent of its registered capitalBBB3B+to the Company, if the Company applies withCCC4C,a bank, in a single or in multiple tranches,DDD4D,for medium to longterm loans (not exceedingEEE4E,ten (10) years) and not exceeding 60 percentFFF2F*of the Company?s total investment, if suchGGG.G&bank requires a corporate guarantee toHHH5Hsecure such loan(s), Hai Hua shall be obligedIII0I(to provide a corporate guarantee to suchJJJ4J,bank in such form and to such extent as suchKKK2K*bank may require for the Company to secureLLL2L*such loan(s). However, Hai Hua?s guaranteeMMMM%shall not contain restrictive clausesNNN2N*on Hai Hua?s operations, funds management,OOO2O*etc. that are additional to those normallyPPP.P&required for corporate guarantees. TheQQQ/Q'Company shall provide such cooperationRRRRand provide suchST$U____________________________1V)Created by Morningstar Document Research.0W(http://documentresearch.morningstar.com/4 M:.yi`
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction7/information and assistance as may be reasonably 1 )required by the bank. The Company may, at
4
,its discretion, agree to grant such security1)to the bank as may be reasonable in order6.to secure the loan, provided any such security
2
*shall be subordinate to any other security1)that the Company has granted or may grant91to its other financiers, banks and/or Affiliates.5The Company shall provide a counterguarantee5of equal value to Hai Hua which is acceptableto the bank.4,If the Company can not obtain such financing2*based on Hai Hua?s guarantee in accordance3+with the above paragraph, the Company shall/'have the option to choose other sources%of financing for project construction0(in order to continue the performance its( obligations under this Contract.333333@Payment Method$____________________________D l{ocWC2xvea !1 )Created by Morningstar Document Research.0!(http://documentresearch.morningstar.com/=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction~
"Late Payment
2
*Should either Party fail to pay any sum as2*it falls due, it shall pay, in addition to4,such sum, interest on such sum from the date
0
(payable until the date of actual payment at a rate of 0.1% a day.~
&Setoff, Taxes, Etc.0(Each Party shall pay all sums payable to0(the other Party in full and shall, under%no circumstances, make any deduction,,$setoff or withholding of any nature.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:{ocW%}`Ts+=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }8
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction333333$@Installation
1
)Before the Scheduled Commercial Operation0(Date, the Company shall install metering1)equipment at the Delivery Points in order
2
*to measure the amount of Input Commodities7/supplied by Hai Hua and synthesis gas delivered6.by the Company to Hai Hua and such meter shall/'be checked by the Relevant State Agency
for accuracy.ffffff$@Accuracy$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6{ocW XFTH
=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }6The Company shall, in the presence of a representative 7 /of Hai Hua and a representative of the Relevant
1
)State Agency, calibrate the meters, bring0(the margin of error of each component of1)each meter to 0.2% or less than 0.2%, and
have the meters sealed.10.2.22*Calibration of the meters shall be carried5out once every six months or at any time when.&a Party disputes the accuracy thereof.10.2.30(The Company shall be responsible for all4,expenses incurred in any tests of the meters6.and any recalibration (including replacement,.&reparation and adjustment) in order to,$maintain the accuracy of the meters.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0{ocW3;/rVNB6=PF0*8X>
@
l C
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }U5
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction$@
Meter Reading
0
(After the Commercial Operation Date, Hai2*Hua and the Company shall jointly read the.&meters in accordance with a preagreed
schedule./'A representative of each Party shall be0(present at the readings scheduled by the1)Parties and shall sign their names on the0(reading statement. Should either Party?s/'representative be absent at a scheduled4,reading, then the readings made by the other/'Party shall be deemed true and correct.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:t{ocWVd[QE9=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }8
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction333333&@Term of Operation
4
,This Contract shall expire twenty (20) years7/after the first day of the Commercial Operation
Date.
ffffff&@"Termination by the Company/'The Company may terminate this Contractif:$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2S{ocWIU"
=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }:
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction11.2.180Hai Hua fails to pay any amounts due and payable 1 )hereunder within 30 days after it becomes
/
'payable (except where Hai Hua?s failure2*to pay is caused by the Company?s material1)breach of any of the Project Documents or
/
'by the Company?s failure to pay amounts4,due hereunder in full and in a timely manner1)in accordance with the provisions of this
Contract);11.2.21)Hai Hua becomes insolvent or is dissolvedor restructured;11.2.31)Hai Hua fails to perform any of its other'material obligations hereunder,$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<{ocWA7H<2=PF0*8X>
@
l %:/0
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }6
%
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction11.3.13+The Company fails to pay Hai Hua any amount 0 (due and payable hereunder within 30 days
0
(after it becomes due and payable (except0(where Company?s failure to pay is caused2*by Hai Hua?s material breach of any of the
1
)Project Documents or by Hai Hua?s failure2*to pay for synthesis gas to the Company in1)full and in a timely manner in accordance.&with the provisions of this Contract).11.3.2!The Company is dissolved;11.3.35The Company fails to perform any of its other%material obligations hereunder, which1)(unless it is incapable of remedy) is not1)remedied within 30 days of written notice/'from Hai Hua specifying the default and5requiring the Company to remedy such default.2*If the default is not remedied within that1)30 day period, Hai Hua may terminate this3+Contract by serving a further 30 day notice2*of termination on the Company. Termination2*becomes effective on expiry of that secondnotice.D
l{ocWF;2&ha
SE !"#$ !$"____________________________1#)Created by Morningstar Document Research.0$(http://documentresearch.morningstar.com/
P=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }8
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction&@%Other Grounds for Termination
0
(Either Party may terminate this Contract/'on 30 days? written notice to the other4,Party: if an event of Force Majeure prevents
/
'the Plant from generating any synthesis0(gas for a continuous period of 360 days,7/and the Board has decided it is not technically1)or commercially feasible to continue withthis Contract.'@!Liability for Termination1)If this Contract is terminated in advance2*due to a material default by either Party,0(then the breaching Party shall be liable2*to the nonbreaching Party for all damages0(and in accordance with relevant PRC law.333333'@General5Termination of this Contract (for any reason).&shall not affect the accrued rights ofthe Parties.D l{ocWI>H<.$r !"#$%&'()*+,./0123456789:; !!ffffff'@!!Removal of the Plant"###2#*Upon termination for any reason whatsoever$$$0$((except for the expiry of the Term), the%%%1%)Company shall have the right to dismantle&&&5&and to remove the Plant, and to use the Plant'''0'(elsewhere in relation to other projects.(((3(+The exercise of this right shall be without))).)&prejudice to the damages payable under****Section 11.5 above.+,,,1,)The cost of dismantling and removal shall0(be recoverable by the Company as damages...7./against Hai Hua if the termination was effected///'/pursuant to Section 11.2 above.011141,If this Contract is terminated in accordance222.2&with Section 11.3 above, Hai Hua shall33353have the right to apply to the relevant court44424*to freeze certain equipment as a guarantee55535+for any compensation that may be due to Hai6666Hua.78$9____________________________1:)Created by Morningstar Document Research.0;(http://documentresearch.morningstar.com/<^ D6sd
{oc;=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }$4
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction333333(@
Governing Law
3
+This Contract shall be governed by the laws.&of the PRC and construed in accordance
therewith.
ffffff(@Disputes$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,f{ocWW=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }I;
/
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction(a)80any arbitration shall be conducted in accordance 1 )with the CIETAC Arbitration Rules and the
*
"provisions of this Section 12.2.2;(b)2*Either Party may refer a dispute to CIETAC

%for arbitration regardless of whether/'or not it has exercised its termination&rights under Section 11 above.(c).&the arbitration tribunal shall consist.&of three arbitrators, one appointed by1)the Company, one by Hai Hua and the third0(arbitrator (the ?Presiding Arbitrator? )3+appointed by agreement between the Parties,80or, if the Parties cannot agree, by the Chairman
of CIETAC;(d)2*no arbitrator may be (i) a national of the1)PRC or of the United States of America or2*(ii) a permanent resident of the Hong Kong.&Special Administrative Region or Macau/'Special Administrative Region or Taiwan3+Province and if either of the Parties fails0(to appoint an arbitrator within the timeDw
l{ocWI=4+zyi !"#$%&'()*+,. 9 1specified in Article 16 of the CIETAC Arbitration!!!0!(Rules, the Chairman of CIETAC shall make"""2"*such appointment taking into consideration###7#/the criteria set out in this Section 12.2.2(c);$%%(e)%3%+the Presiding Arbitrator (and any successor&&&0&(or replacement appointed in place of any'''1')Presiding Arbitrator initially appointed)(((3(+shall be a national of one of the following))))
countries:*+$,____________________________1)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"G$s=PF0*8X>
@..,,
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction~
Australia
~
Belgium~
The Philippines
~
The Netherlands~
Sweden~
Switzerland~
India~
New Zealand$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<{ocW~=1ma$=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }2
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction2*and, the Chairman of CIETAC shall make the / 'appointment of the Presiding Arbitrator
.
&taking into consideration the criteria0(set out in Section 12.2.2(c) and in thisSection 12.2.2(d);
(f)1)the place of arbitration shall be Beijing.&and the arbitration shall be conducted%in the English and Chinese languages;(g)the Parties undertake:$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4;{ocWPNNB6=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }>
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction(i)/'agrees that any arbitral award shall be final and binding;
(ii)3+undertakes that it will execute and perform3+the arbitral award fully and without delay;
(iii)5waives any right which it may have to contest1)the validity of the arbitration agreement<4set forth in this Section 12.2.2 or the jurisdiction:2of CIETAC to hear and to determine any arbitration.&begun pursuant to this Section 12.2.2;$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4w{ocWP.h=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }7
*
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction1)During the Term of Operation, the Company 1 )shall defend, indemnify and hold harmless
3
+Hai Hua from and against any claims, costs,2*losses, liabilities, taxes, suits, damages4,or expenses it may suffer as a result of any
4
,default, negligence or breach of obligations/'by the Company committed hereunder. If,2*in the operation of the Plant, the Company2*causes Hai Hua to incur any claims, losses3+and expenses under any Existing Regulations0(or Future Regulations, the Company shall/'defend, indemnify and hold harmless HaiHua against the same.3+During the Term of Operation, Hai Hua shall/'defend, indemnify and hold harmless the3+Company from and against any claims, costs,2*losses, liabilities, taxes, suits, damages4,or expenses it may suffer as a result of any4,default, negligence or breach of obligations2*by Hai Hua committed hereunder. If, in the6.operation of the Hai Hua Plant, Hai Hua causes/'the Company to incur any claims, losses3+and expenses under any Existing RegulationsD7l{ocWJ8z#w kY !"#$%&'() 4 ,or Future Regulations, Hai Hua shall defend,!!!/!'indemnify and hold harmless the Company""""against the same.#$~
$:$$ Insurance%&$'____________________________1()Created by Morningstar Document Research.0)(http://documentresearch.morningstar.com/M=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }y<
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction333333,@Company to Insure
/
'The Company shall take out and maintain/'insurances as are required by the Board%in connection with the Plant.
ffffff,@Assistance with Claims:2Hai Hua shall provide the Company with information0(it may require to make or process claimsunder its insurances.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4{ocWV Cf=PF0*8X>
@
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }7
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction333333.@Entire Agreement
6
.This Contract constitutes the entire agreement/'between the Parties with respect to the1)subject matter hereof and shall supersede
,
$all prior agreements of the Parties.ffffff.@Amendment and Waiver$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.{ocWPMA5
=PF0*8X>
@
l 
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }8
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction.@ No Agency
2
*Neither Party shall have the right to bind3+the other, enter into contracts in the name1)of the other or incur liabilities for the
/
'other for any purpose or in any manner..@Communications/'Notices or other communication required2*to be given by any Party shall be given by5registered mail or facsimile to the following7/addresses or such other addresses as designated)!by the Parties from time to time:$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:8{ocWWWK=uM=PF0*8X>
@
l $GH
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }6
$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction To: , $Synthesis Energy Systems (Zaozhuang)
New Gas Company LtdAddress:'To be provided to Hai Hua later
Fax:'To be provided to Hai Hua laterWith a copy to:2*Synthesis Energy Systems, Inc., Attention:
Huang DaliAddress:5526 Pine City, 777 Zhaojiabang Road, Shanghai
200031, ChinaFax:(86) 02164220869To:0(Shandong Hai Hua Coal ? Chemical CompanyLtd5Address: 68 Linquan Road, Xue Cheng District,!Zao Zhuang City, ShandongProvince, PostCode: 277000Fax:(86) 06344461691D\
l{ocWi/~8Bxi !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/<=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ } }$ }6
5
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction/@Language
2
*This Contract shall be executed in Chinese3+and English. Both versions have equal legaleffect.
333333/@
Assignment2*Without prior written consent of the other%Party, neither Party shall assign its3+rights and obligations under this Contract,0(provided that the Company may assign its1)rights to lenders or guarantors providing4,finance or finance guarantees to the Company0((?Lenders?) in connection with the Plant1)without Hai Hua?s consent being required,/'so long as the Company provides written1)notice to Hai Hua of such assignment. Any2*such assignment shall not affect Hai Hua?s#rights under this Contract.5Hai Hua may assign its rights to an affiliate0(so long as the Company agrees in writingto such assignment.D l{ocW
X!ogZQC !"#$%&'()*+,./01234 !!!1!)Any assignments under this Contract shall"""5"not affect the Parties obligations hereunder.#$$ffffff/@$$Partial Invalidity%&&&4&,If a provision in this Contract is or become''''%illegal, invalid, or unenforceable in(((/('any jurisdiction, that shall not affect)))0)(the legality, validity or enforceability***4*,and other jurisdictions of that or any other+++.+&provision whatsoever of this Contract.,/@1)Confidentiality and Intellectual Property.///%/During the Term of Operation:01$2____________________________13)Created by Morningstar Document Research.04(http://documentresearch.morningstar.com/.E>2~"aU=PF0*8X>
@443322
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }y<
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction15.8.35the Parties are hereby authorised to disclose  %any confidential information obtained
6
.from each other to their respective Affiliates%and professional advisers, subject to7/procuring that such Affiliates and professional
2
*advisers observe a duty of confidentialityas provided herein;15.8.40(? confidential information ? as referred1)to in this Section 15.8 shall include all2*information and data disclosed (regardless1)of whether such information is in writing2*or otherwise, or whether provided directly91or indirectly) by the Parties or their Affiliates2*to the other Party or its Affiliates prior0(or after the execution of this Contract,0(including but not limited to information4,related to their products, plan, proprietary%technology, design rights, commercial0(secrets, confidential market information91and any information relating to their businesses.0(However, this Section shall not apply to0((a) any information in the public domain2*otherwise than by breach of this Contract;D?l{ocWA3z e
YK !"#$%&'()*+,./0123456789:;<=>? 0 ((b) information in the possession of the!!!7!/receiving party before divulgence as aforesaid,"""7"/and which was not obtained under any obligation###4#,of confidentiality; (c) information obtained$$$1$)from a third party who is free to divulge%%%1%)the same, and which is not obtained under&&&.&&any obligation of confidentiality; and'''4',(d) and information required to be disclosed(((2(*by applicable law, a judicial order or the))))%rules of a recognised stock exchange.*++15.8.5+1+)The Parties acknowledge that the U.S. Gas,,,1,)Technology Institute (?GTI?) owns certain0(patents, knowhow, information and trade....%secrets (the ?Intellectual Property?)///2/*relating to GTI?s gasification technology,00060.which is confidential and that GTI has granted11121*Synthesis Energy Systems, Inc an exclusive222/2'right to such GTI technology, including33303(any improvements and know how, in China,44424*and the Company has the legal right to use55575/such technology and there will be no additional66626*fees for the use of such technology beyond777/7'the Capacity and Energy Fees under this88808(Contract. All such Intellectual Property99939+shall remain the sole property of Synthesis:::/:'Energy Systems, Inc and (if applicable);;;4;,GTI and no license or grant of rights in any<<<5<of the Intellectual Property will be conveyed===/='by Synthesis Energy Systems, Inc to Hai>>>:>2Hua or any of its affiliated or related companies.???8?0Hai Hua and its affiliated and related companiesD}
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RI6,y@ABCDEFG@@@/@'shall not compete with Synthesis EnergyAAA6A.Systems, Inc with respect to such IntellectualBBBB Property.CD$E____________________________1F)Created by Morningstar Document Research.0G(http://documentresearch.morningstar.com/7K=PF0*8X>
@GGFFEE
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction15.9.10(it is a legal entity validly established / 'and existing under the laws of the PRC;
15.9.20(it has power and authority to enter into.&and perform its obligations under this
Contract;15.9.3/'the entering into of and performance of0(its obligations under this Contract will3+not breach any law or any contract to whichit is a party;15.9.4/'all necessary Consents for the entering2*into of and performance of its obligations/'under this Contract have been obtained;and15.9.5/'its obligations under this Contract are'valid, binding and enforceable..&The Company represents and warrants toHai Hua as follows:Dl{ocW8@OC5J> !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/
(=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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NO TITLE (11)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction15.9.60(it is a legal entity validly established / 'and existing under the laws of the PRC;
15.9.70(it has power and authority to enter into.&and perform its obligations under this
Contract;15.9.8/'the entering into of and performance of0(its obligations under this Contract will3+not breach any law or any contract to whichit is a party;15.9.9/'all necessary Consents for the entering2*into of and performance of its obligations/'under this Contract have been obtained;and15.9.10/'its obligations under this Contract are'valid, binding and enforceable.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/Dl{ocW8@OC5I=1 =PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007'1. Definitions and Construction15.10 Assistance
5
Hai Hua agrees to cooperate with and provide1)assistance to the Company, in such manner3+as may be required by the Company to enable
1
)the Company to obtain and utilise credit,2*financing or other financial accommodation&or facilities for the Project.1)In particular, upon the Company?s request2*Hai Hua agrees to enter into, with such of:2the Company?s Lenders referred to in Section 15.6,1)a Direct Agreement on such form as may be%agreed between the Company?s Lenders,5the Company and Hai Hua. The Direct Agreement6.shall as a minimum (and amongst other matters)3+allow the Company?s Lenders or some of them2*the right to ?step in? in relation to this1)Contract in the event Hai Hua purports to terminate this Contract.$____________________________1)Created by Morningstar Document Research.D l{ocW;/yk^N8=1% 0 (http://documentresearch.morningstar.com/H=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas Cont (1)
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5555$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Net Syngas Contents
!"#$%&'()*+,./01234
! " # $ % & ' ( ) *Pressure  .Temperature 1 2Volume
Gas Components
H 2
CO
CO 2
CH 4
N 2
Ar
O 2
H 2 S
!
"COS
%
&H 2 O
)
*MPa(G)

.?C
1
2Ncum/hNet Syngas (delivery)\(G@ףp=
E@
=
ףp=@
Q?RQ?
ףp=
?~
20mg/m 3!"
200 mg/m 3%&')\(@()*+{Gz?,.~
/012~
3W4
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/&@{ocmaU=PF0*8X>
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NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas Contents
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Net Syngas Contents~
0 (The Company has the obligation to ensure
6
.the quality of the synthesis gas in accordance80with the parameters outlined in this Appendix II2*and Hai Hua shall have the right to reject
8
0any synthesis gas that it is able to demonstrate1)to the Company does not meet such qualityspecifications.~
1)The Net Syngas shall contain no less than89% CO, H2 and CH4.~
91CO shall not exceed 43.5%. of the total synthesisgas volume .~
7/CO 2 in the Net Syngas shall be no higher than
4%~
=5H 2 S in the Net Syngas shall not exceed 20mg/m 3 .~
5The Company shall make all reasonable efforts2*to ensure that presence of organic sulfur,0(nitrogen, argon and other trace elements/'(including but not limited to COS, HCN,Dl{oc?K\)4}q
i !"#$%&'()*+,./0123456 7 /NH3, Hg, HCL, F) are kept to a minimum in order!!7!/not to affect the quality of Methanol Company?s"""methanol production.#~
$$,$$Notwithstanding any other provisions%%8%0herein, if the Company fails to supply synthesis&&1&)gas in accordance with the specifications''1')outlined in Appendix II, in circumstances((9(1where Hai Hua has delivered the Input Commodities)).)&in accordance with the specifications,**4*,quality or sizing outlined in Section 4.1.6,++4+,the Company shall not in any event be liable,,4,,for the loss of use of any plant or facility4,operated by Hai Hua, for any loss of profit,..2.*loss of any indirect or consequential loss//3/+or damage which may be suffered by Hai Hua,00/0'save for direct losses caused by damage111%to Hai Hua?s machinery and equipment.23$4____________________________15)Created by Morningstar Document Research.06(http://documentresearch.morningstar.com/2Z"x+?Ob=PF0*8X>
@665544
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Table III1 Design Basis Coal RMB */ton (?D 0 ?)
Coke
RMB */ton (?B 0 ?)
Coke Oven GasRMB * Ncum (?C 0 ?)
PowerRMB */MWh (?E 0 ?)
Steam
RMB */ton (?S 0 ?) Tap WaterRMB */ton (?T 0 ?)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,rwkGC=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1A Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Design Basis Coal:
?Allowed Variation?
from Design Basis
Variable NameTest Result
Units
Coal~
LHV~
29kCal/kg
3,611 kCal/kg
(analyzed net)
minimum
No maximum
~
Ash, wt% (dry basis)QD@weight %
42.5% maximum No minimum
~
/'Total Moisture % (surface and inherent)~
*weight %
? 10%
~
"Sulfur content (dry basis)Q?weight %
1.8 maximum
~
"Carbon content (dry basis)(\B<@weight %
28% minimum$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<vpdI'aYcWK#=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007A. Capacity Fee
Year 1 Year 2 Year 3 Year 4 Year 5
Year 6 Year 7
Year 8 Year 9 Year 10
*
*
*
*
*
*
*
*
*
*
Year 11Year 12Year 13Year 14Year 15
Year 16Year 17
Year 18Year 19Year 20
* * * * *
* *
* * *$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/, sgbtfT=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity Fee Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007A. Capacity Fee(I)3+if Hai Hua does not deliver adequate or any 8 0Input Commodities, or delivers Input Commodities
5
which are NOT in compliance with the Contract80specifications (i.e. outside the specifications,3+quality or sizing outlined in Clause 4.1.6,
3
+to the Plant (including outages or downtime3+suffered due to damage to the Plant, caused1)by such noncompliant Input Commodities),(II)7/In the circumstances set out in Sections 4.1.2,4.1.3,
(III)5A Planned Outage, as defined in Section 3.3.5(IV)3+if Hai Hua demands less than the Guaranteed0(Capacity of Net Syngas from the Company,(V)/'the time period required by the Company6.to startup the Plant or to step up production80after a period when Hai Hua demands no synthesis1)gas (or less than 18,000 Ncum/hour of Net6.Syngas) or a period where Hai Hua has demanded0(less than the Guaranteed Capacity of Net1)Syngas from the Company and then requiresDp lsgp~/UIH
@%%$$##
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }a}$ }$}$ }
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 Example 1 Plant Availability =  %30 days x 24 hours x 22,000 Ncum/hour

%30 days x 24 hours x 22,000 Ncum/hour =+#100% Plant Availability (a total of
*
"15,840,000 out of 15,840,000 Ncum)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hym1\ bVJ"=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }a}$ }$}$ }0.
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 Example 3 Plant Availability =  %10 days x 24 hours x 22,000 Ncum/hour

%30 days x 24 hours x 22,000 Ncum/hour =.&33% Availability (a total of 5,280,000
out of 15,840,000 Ncum)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hym1\ j^R*=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }8
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Excess Quantities ?7/For volumes between 22,000 to 24,000 Ncum/hour, 3 +Hai Hua shall pay 100% of the corresponding
1
)Energy Fee and pay a prorated proportion2*of the Capacity Fee but reduced by 20% for1)the additional 2,000 Ncum/hour of volume;
?7/For volumes between 24,000 to 29,000 Ncum/hour,3+Hai Hua shall pay 100% of the corresponding0(Energy Fee and a prorated proportion of3+the Capacity Fee but reduced by 25% for the%additional 5,000 Ncum/hour of volume;and ?.&For volumes over 29,000 Ncum/hour, Hai2*Hua shall pay 100% of the Energy Fee and a0(prorated proportion of the Capacity Fee5but reduced by 40% for the additional volume,$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@D}qeQ2$9*=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesFurther CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }:
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Excess Quantities.&In addition to the discounted Capacity 5 Fee that applies only to volumes above 22,000
8
0Ncum of Net Syngas, Hai Hua shall also reimburse3+the Company for its additional coal, power,.&water costs, etc. associated with such
2
*increased synthesis gas production through6.the Energy Fee associated with such additional!synthesis gas production.1)For the avoidance of doubt, the discounts2*listed in this Appendix V shall only apply0(to the Capacity Fee for quantities above"22,000 Ncum of Net Syngas.7/As an example, if during a month (with 30 days)6.during the first year of operation the Company2*has available and Hai Hua agrees to accept1)29,000 Ncum/hour of synthesis gas for the1)whole of that month, the Capacity Fee forthat month would be$____________________________1)Created by Morningstar Document Research.Dl}qev'=Y
p6 0 (http://documentresearch.morningstar.com/H=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }I;
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Further Cooperation ?3+Hai Hua should develop the coke gas market, 9 1and gradually reduce its own coke gas consumption
.
&so that Hai Hua?s methanol subsidiary,%the Shandong Xuejiao Chemical Co. Ltd0((the ?Methanol Company?) will eventually
0
(use only syngas for methanol production; ?5The Company should develop its gas production5process so as to produce syngas of sufficient/'pressure and purity for direct methanol4,production, and expand its syngas production5capacity so as to meet the Methanol Company?stotal gas demand; and ?/'The Parties should cooperate to develop%the most economical syngas production/'system to achieve a winwin outcome forthe Parties;$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B2 X{ocPK?t/#v=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further Cooperation147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007Further Cooperation
i.5At any time within two (2) years of execution 1 )of this Contract, Hai Hua may request the
/
'Company to expand its syngas production0(which will be of sufficient pressure and5purity for the direct production of methanol,
/
'to be supplied directly to the Methanol/'Company, and the Parties shall agree on0(the necessary technical reform plans and1)negotiate the requisite project documents4,within three (3) months of Hai Hua?s request)!for additional syngas quantities;ii.%The Methanol Company shall contribute5certain equipment necessary for such expanded.&syngas production to the Company. Such.&equipment includes, but is not limited0(to the Methanol Company?s air separation6.unit, fine sulphur removal system, compression/'equipment and other relevant equipment./'In consideration of the contribution of2*such equipment, the Methanol Company shall6.be given an ownership interest in the Company.7/The value of such equipment should be evaluated2*by independent asset evaluation companies.D
l{ocx,E\n$? !iii.!3!+The Methanol Company shall actively develop""/"'a second phase 100,000 methanol project##3#+and the Company will supply syngas for such$$0$(expansion. The Company intends to supply%%3%+the total syngas required for such methanol&&6&.expansion whereby the gas quality and pressure''5'of the syngas supplied meets the requirements((.(&for the direct production of methanol;)))and*+iv.+4+,Upon Hai Hua?s request for additional syngas,,5,as outlined above, the Parties will negotiate5in good faith the requisite project documents..2.*and renegotiate a new syngas price for the//3/+new syngas system. Such syngas price should0030+not be higher than the syngas price in this11/1'Contract of RMB */Ncum of syngas (after2222*deducting the cost of additional operating33.3&costs and equipment cost necessary for4444,producing syngas that is suitable for direct55/5'methanol production). The Company shall6606(make best efforts to produce syngas of a77/7'sufficient pressure and quality that is88 8satisfactory to Hai Hua.9
:v.:0:(If the Parties can not come to agreement;;5;upon the above plans, within three (3) months<<4<,of Hai Hua making its request for additional==4=,syngas supply, then the Parties shall invite>>1>)a mediator, such mediator to be agreed by??1?)the Parties, to assist the Parties to tryDKlVlXLW k 8Vo@ABCDEFGHIJKLM@@/@'to reach definitive agreements based onAA5Athe above principles. Before such arbitrationBB6B.begins, each Party shall deposit RMB 3,000,000CC5Cin an escrow account. If during the mediationDD/D'the Mediator makes a determination thatEE4E,any Party is not acting in good faith to tryFF1F)and reach an agreement, the mediator may,GG0G(in its sole discretion, award damages toHH/H'the other party of up to RMB 3,000,000.IJ$K____________________________1L)Created by Morningstar Document Research.0M(http://documentresearch.morningstar.com/ dv&B6*=PF0*8X>
@MMLLKK
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)NO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007##147;Compensation Committee(a).&to the Executive addressed as follows:
Timothy E. Vail5106 DoliverHouston, Texas 77056
Tel: (713) 898 ? 0444Fax: (713) 979 ? 9341(b)0(to the Corporation addressed as follows:&Synthesis Energy Systems, Inc.13077 Westella DriveHouston, Texas 77077#Attn: Chairman of the BoardTel: (713) 898 ? 0444Fax: (713) 979 ? 9341$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@Dsg[{7}q
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }$}$ }6
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE o3+Drafting, reviewing and editing the private % placement offering documents;
o.&Preparing PowerPoint presentations forvarious investors;
o( Preparing financial projections; o5Meeting with potential and existing investorsas requested; and o.&Participating in discussions regarding1)various alternative financing approaches.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8Uznb Y\PD=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE ?%Originating and negotiating strategic 0 (relationships to support the development
.
&of the Corporation?s initiative in the%United States, including: determining2*the types of strategic partners, including
1
)coal companies, petrochemical firms (e.g.1)Dow Chemical), industrial gas firms (e.g.4,Air Liquide), and power generation equipment/'providers (e.g., General Electric) that1)will allow the Corporation to achieve its1)objective of developing a single gasifier5plant in the United States which demonstrates0(the Corporation?s ability to convert low.&quality coal into a saleable commodity(e.g. power, steam). ?.&Evaluate tax strategies and manage the%Corporation?s relationship with Price+#Waterhouse Coopers, as appropriate. ?.&Assist in the negotiation of extending.&the Corporation?s license with the GasTechnology Institute.D@
lznjb VGUIJ> !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/<=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)WW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/20071)AMENDED AND RESTATED EMPLOYMENT AGREEMENT(a).&to the Executive addressed as follows:
Donald P. Bunnell&Office #916 Jin Zhong Building680 Zhao Jia Bang Road
Shanghai 200031
ChinaTel: (86)2164738020Fax: (86)2164738020(b)0(to the Corporation addressed as follows:'Synthesis Energy Holdings, Inc.'6330 West Loop South, Suite 300Houston, Texas 77401Attn: Timothy E. VailTel: (713) ?5790600Fax: (713) 5790610$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B!XqeYMYZ S{7=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
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*
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 W~
5Term : This Agreement will commence on August 4 ,1 , 2006, and shall extend through July 31,
/
'2010 (the ?Term?). At the expiration of6.the Term, SES shall have no further obligation/'to Consultant other than payment of any
7
/earned and unpaid compensation under Section 3,7/and Consultant shall have no further obligation1)to SES except as set forth in Sections 4,0(5 and 8. Notwithstanding anything to the1)contrary contained in this Section 1, the%Agreement shall terminate immediately2*under the provisions of Section 14 at such3+time as those provisions become applicable.~
.&Services : During the Term, Consultant/'shall devote at least twenty (20) hours2*per week of his time, energies and talents1)to serving as Chairman of SES in the best3+interests of SES, and to perform the duties1)assigned to him by the Board of Directors4,of SES (the ?Board?) faithfully, efficiently0(and in a professional manner. Consultant1)warrants that the Services to be provided0(hereunder will not cause a conflict withD+lucO?7x!n^ !"#$%&'() 5 any other duties or obligations of Consultant!!!8!0to third parties, including, without limitation,""""Great Point Energy.#$~
$$$Compensation :%&$'____________________________1()Created by Morningstar Document Research.0)(http://documentresearch.morningstar.com/Ct=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWNO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }}$ }y<
3
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 W
A.0(Payment Terms . SES shall pay Consultant 1 )for performance of the services requested
/
'by SES under this Agreement (?Fees?) asfollows:
(i)
1
)The base sum of $5,000 per month, payable80at the end of each month during the Term (except3+that during the first and last month of the6.Term, the base sum shall be paid on a pro rata5basis, determined by a fraction the numerator:2of which is the number of business days Consultant4,worked during such month and the denominator2*of which is the number of business days insuch month).(ii)1)Consultant shall be reimbursed by SES for%all reasonable business, promotional,2*travel and entertainment expenses incurred0(or paid by Consultant during the Term in2*the performance of his services under this2*Agreement: (i) provided that such expenses3+constitute business deductions from taxable6.income for SES and are excludable from taxable0(income to Consultant under the governingD
luk3'kU=C7 !"#$%&'()*+,./012 4 ,laws and regulations of the Internal Revenue!!!3!+Code; (ii) to the extent that such expenses"""/"'do not exceed the amounts allocable for###2#*such expenses in budgets that are approved$$$9$1from time to time by SES and are not in violation%%%0%(of SES?s expense reimbursement policies;&&&3&+and (iii) provided that Consultant provides'''2'*SES with the corresponding expense reports(((0((in a timely manner consistent with SES?s)))0)(policies. Notwithstanding the foregoing,***0*(in the event of extraordinary or unusual+++/+'expenses, Consultant shall first obtain,,,3,+the Chief Executive Officer?s prior written( approval prior to incurring such./$0____________________________11)Created by Morningstar Document Research.02(http://documentresearch.morningstar.com/*hI7*z"p =PF0*8X>
@221100
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }=
E
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE~
80Confidentiality Of SES?s Business : : Consultant 2 *acknowledges that SES?s business is highly
1
)competitive and that SES?s books, records0(and documents, SES?s strategy, technical%and commercial information concerning
3
+its projects, products, equipment, services%and processes, procurement procedures0(and pricing techniques, the names of and7/other information (such as credit and financial5data) concerning SES?s customers and business/'affiliates , and any information about;3or obtained in connection with the Gas Technologies,$Institute, all comprise confidential.&business information and trade secrets1)of SES (?Confidential Information?) which5are valuable, special, and unique proprietary6.assets of SES. Consultant further acknowledges%that protection of SES?s Confidential3+Information against unauthorized disclosure0(and use is of critical importance to SES0(in maintaining its competitive position.%Accordingly, Consultant hereby agrees5that he will not, at any time during or after7/the term of this Agreement, make any disclosureDlznYQE.+ph !"#$%&'()*+,./0123456789:;<=>? 0 (of any Confidential Information, or make!!!/!'any use thereof, except for the benefit"""6".of, and on behalf of, SES and with SES?s prior###5#consent. However, the Consultant?s obligation$$$0$(under this Section 4 shall not extend to%%%0%(information, which is or becomes part of&&&0&(the public domain or is available to the'''/''public by publication or otherwise than(((1()through the Consultant or its agents. The)))2)*provisions of this Section 4 shall survive***/*'the termination of this Agreement for a+++5+period of two (2) years from such date. Money,,,.,&damages would not be sufficient remedy;3for any breach of this Section 4 by the Consultant,...9.1and SES shall be entitled to specific performance///2/*and injunctive relief as remedies for such00060.breach or any threatened breach. Such remedies11121*shall not be deemed the exclusive remedies222921for a breach of this Section 4 by the Consultant,33303(but shall be in addition to all remedies44464.available at law or in equity to SES including55545,the recovery of damages from the Consultant.67~
7707(Conflict of Interest : Consultant agrees88848,to use his best efforts, skill and abilities99969.so long as his services are retained hereunder:::3:+to promote the best interest of SES and its;;;3;+business, and shall not engage in any other<<<5<consulting work or services that may conflict====with SES?s interest.>?~
?? ?Independent Contractor :D
lQ>7z\C1%o[@ABCD@A$B____________________________1C)Created by Morningstar Document Research.0D(http://documentresearch.morningstar.com/
P=PF0*8X>
@DDCCBB
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }0}$ }0.
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 W If to Consultant: Lorenzo C. Lamadrid
1424 West 28th Street"Miami Beach, Florida 33140Tel: (305) 6740093
Fax: (305) 6740096
If to SES:%Synthesis Energy Systems, Inc'6330 West Loop South, Suite 300Houston, Texas 77401.&Attn: Timothy E. Vail, Chief ExecutiveOfficerTel: (713) 898 ? 0444Fax: (713) 979 ? 9341$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:ruQ [$r:SG;=PF0*8X>
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l g*7DF
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }@
g
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 W0(confidential or proprietary to any other 3 +person, firm or corporation. ?Work Product?
.
&means any and all methods, procedures,%processes, formula, techniques, works7/of authorship, innovations, works, discoveries,
5
concepts, products, properties, compositions,4,improvements, systems, software, inventions,/'designs, formulations, drawings, notes,1)analyses, records, plans, specifications,.&data, patents, copyrights, trademarks,7/intellectual property, proprietary information,+#writings, sketches, specifications,6.technology, knowledge, ideas, ideas developed,5ideas conceived and ideas reduced to practice.&and other data, things and information4,of any nature whatsoever in whole or in part2*prepared and/or written and/or contributed0(and/or conceived and/or developed and/or2*reduced to practice and/or produced and/or1)discovered by the Consultant or resulting4,from or suggested by (directly or indirectly80and/or in whole or in part) any of the foregoing1)(alone or with others) that relate to the.&Services being performed by ConsultantDvlul[OG6(u !"#$%&'()*+,./0123456789:;<=>? , $during the Term or any Renewal Term.!"~
""6".Waiver : Failure of SES at any time to require###2#*performance by Consultant of any provision$$$2$*hereof shall in no way affect the right of%%%4%,SES hereafter to enforce the same. Nor shall&&&8&0any waiver by SES of any breach of any provision'''5'hereof be taken or held to be a waiver of any(((.(&succeeding breach of such provision or)))8)0as a waiver of this provision itself. Consultant***=*5shall not plead or set up as a defense to enforcement+++/+'of this contract, laches or any statute,,,,of limitations..~
..3.+Applicable Law : This Agreement is governed///6/.by the internal laws of the State of Delaware,000:02USA without regard to the choice of law provisions1111therein.23~
3323*Severability : It is the desire and intent44414)of the parties that the terms, provisions55515)and covenants contained in this Agreement66626*shall be enforceable to the fullest extent77757permitted by law. If any such term, provision888.8&or covenant or the application thereof99909(to any person or circumstances shall, to:::1:)any extent, be construed to be invalid or;;;/;'unenforceable in whole or in part, then<<<.<&such term, provision or covenant shall===1=)be construed in a manner as to permit its>>>/>'enforceability under the applicable law???/?'to the fullest extent permitted by law.Dl@0sXYaUG:2@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_@@@0@(In any case, the remaining provisions ofAAA1A)this Agreement or the application thereofBBB2B*to any person or circumstances, other thanCCC2C*those to which they have been held invalidDDD.D&or unenforceable, shall remain in fullEEEEforce and effect.FG~
GG2G*Successors And Assignment : This AgreementHHH0H(shall be binding upon and shall inure toIII.I&the benefit of any person, corporationJJJ0J(or entity which may hereafter acquire orKKK2K*succeed to all or substantially all of theLLL6L.business or assets of SES by purchase, merger,MMM7M/consolidation or by any other means whatsoever,NNN0N(whether direct or indirect. SES shall beOOO0O(entitled to freely assign this AgreementPPP0P(without the prior consent of Consultant,QQQQ%provided that SES notifies ConsultantRRR5Rin writing of such assignment. This AgreementSSS3S+and the Consultant?s rights and obligationsTTT7T/hereunder shall not be assignable by ConsultantUUU1U)without the prior written consent of SES.VW~
WW0W(Subsidiary and Affiliate : ?SES? as usedXXX3X+in this Agreement, shall include any entityYYY6Y.which owns or controls, is owned or controlledZZZ3Z+by, or is under common control or ownership[[[[
with, SES.\]~
]]/]'Termination of Consulting Arrangement :^^^/^'This Agreement shall terminate, and all___._&compensation under paragraph (3) shallDlOED<'w"jL8`abcdef```0`(cease, in the event any of the followingaaaaoccurs:bc$d____________________________1e)Created by Morningstar Document Research.0f(http://documentresearch.morningstar.com/xqeY1=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }:
#
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007 W
A..&This Agreement modifies and supersedes . &all other preceding agreements between
.
&the parties and constitutes the entire.&agreement of the parties regarding the0(performance of services on behalf of SES
by the Consultant.
B.0(This Agreement may be amended, modified,1)superseded, canceled, renewed or extended/'and the terms and conditions hereof may7/be waived only by a written instrument executed1)by both parties hereto or, in the case of2*a waiver, by the party waiving compliance.
C..&CONSULTANT AND SES EXPRESSLY WAIVE ANY80RIGHT EITHER MAY HAVE TO A JURY TRIAL CONCERNING1)ANY CIVIL ACTION THAT MAY ARISE FROM THIS5AGREEMENT, OR THE RELATIONSHIP OF THE PARTIES/'HERETO AND THE PREVAILING PARTY IN SUCH/'ACTION SHALL BE ENTITLED TO RECOVER ITS5ATTORNEYS? FEES AND COSTS INCURRED TO ENFORCE$ANY OF ITS RIGHTS HEREUNDER.D
luqukYM<1 !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (11)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }:}$ }}$
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE Page .
&SECTION 1. GENERAL PROVISIONS RELATING
~
1)TO PLAN GOVERNANCE, COVERAGE AND BENEFITS
1.1 Purpose
~
1.2 Definitions~
1.3 Plan Administration~
0(1.4 Shares of Common Stock Available for~
"Incentive Awards1)1.5 Share Pool Adjustments for Awards and~
&Payouts"1.6 Common Stock Available~
*1.7 Participation~
*%1.8 Types of Incentive Awards~
.'1.9 Other Compensation Programs~
.1.10 Repricing~
. SECTION 2. STOCK OPTIONS~
."2.1 Grant of Stock Options~
.2.2 Stock Option Terms~
2"2.3 Stock Option Exercises~
62.4 Reload Options~
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$B$%%%%%%&3.1 Award of Restricted Stock&&~
&B&'3.2 Restrictions''~
'F'.(&3.3 Delivery of Shares of Common Stock((~
(F(.)&3.4 Supplemental Payment on Vesting of))~
)J)*Restricted Stock+++++/,'SECTION 4. OTHER STOCKBASED AWARDS AND,,~
,J,PERFORMANCE AWARDS...../%4.1 Grant of Other StockBased Awards//~
/J/)0!4.2 Other StockBased Award Terms00~
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3V34
PARTICIPATION5555565.1 Plan Conditions66~
6V6.7&5.2 Transferability and Exercisability77~
7Z7#85.3 Rights as a Stockholder88~
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9^9:of Common Stock+;#5.5 Change in Stock and Adjustments;;~
;b;<%5.6 Termination of Employment, Death,<<~
<n<!=Disability and Retirement>5.7 Change in Control>>~
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
STOCK OPTIONS
WITNESSETHWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }1}$ }$}$
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007NO TITLE Page
SECTION 6. GENERAL
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6.11 Successors~
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'6.14 Gender, Tense and Headings~
6.15 Governing Law~
6.16 Code Section 409A~
$____________________________D
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
WITNESSETHWITNESSETH (1)
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007
STOCK OPTIONS333333@Reload Options
/
'At the discretion of the Committee, the1)Grantee may be granted under an Incentive,$Agreement, replacement Stock Options
1
)under the Plan that permit the Grantee to/'purchase an additional number of Shares/'equal to the number of previously owned0(Shares surrendered by the Grantee to pay5for all or a portion of the Option Price upon0(exercise of his Stock Options. The terms0(and conditions of such replacement Stock3+Options shall be set forth in the Incentive
Agreement.@80Supplemental Payment on Exercise of Nonqualified4,Stock Options or Stock Appreciation Rights .$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@Dui1%EbyJ=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONSWITNESSETH (1)
NO TITLE (12)
NO TITLE (13)U }$ }U}$ }=
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$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007WITNESSETH:
a.7/With respect to 25% (???) of the total Optioned / 'Shares, the Stock Option shall vest and
/
'become exercisable on the Date of Grant1)provided the Optionee is employed by (or,5if the Optionee is a consultant or an Outside
/
'Director, is providing services to) the%Company or a Subsidiary on that date.
b.7/With respect to 25% (???) of the total Optioned/'Shares, the Stock Option shall vest and3+become exercisable on the first anniversary2*of the Date of Grant provided the Optionee;3is employed by (or, if the Optionee is a consultant5or an Outside Director, is providing services5to) the Company or a Subsidiary on that date.
c.7/With respect to 25% (???) of the total Optioned/'Shares, the Stock Option shall vest and4,become exercisable on the second anniversary2*of the Date of Grant provided the Optionee;3is employed by (or, if the Optionee is a consultant5or an Outside Director, is providing services5to) the Company or a Subsidiary on that date.D
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d. 7 /With respect to 25% (???) of the total Optioned!!!/!'Shares, the Stock Option shall vest and"""3"+become exercisable on the third anniversary###2#*of the Date of Grant provided the Optionee$$$;$3is employed by (or, if the Optionee is a consultant%%%5%or an Outside Director, is providing services&&&5&to) the Company or a Subsidiary on that date.'(
(e.(/('An Optionee shall become 100% vested in))).)&the total Optioned Shares hereunder on***4*,the day preceding an event which constitutes+++3++a Change in Control as defined in the Plan.,$.____________________________1/)Created by Morningstar Document Research.00(http://documentresearch.morningstar.com/&@H0vj_=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)!Effectiveness and Confidentiali!Representations Warranties and Representations (1)Representations (2) Notices147Distributable Profits Schedule of Imported Equipment!Cooperative Joint Venture ContrNO TITLE (6) 1 Definitions and Construction1 Definitions and (1)1 Definitions and (2)1 Definitions and (3)1 Definitions and (4)1 Definitions and (5)1 Definitions and (6)1 Definitions and (7)1 Definitions and (8)1 Definitions and (9)1 Definitions and (10)1 Definitions and (11)1 Definitions and (12)1 Definitions and (13)1 Definitions and (14)1 Definitions and (15)1 Definitions and (16)1 Definitions and (17)1 Definitions and (18)1 Definitions and (19)1 Definitions and (20)1 Definitions and (21)1 Definitions and (22)1 Definitions and (23)1 Definitions and (24)1 Definitions and (25)1 Definitions and (26)1 Definitions and (27)1 Definitions and (28)1 Definitions and (29)1 Definitions and (30)1 Definitions and (31)1 Definitions and (32)1 Definitions and (33)Net Syngas ContentsNet Syngas Cont (1)
Table III1Design Basis CoalA Capacity FeeA Capacity Fee (1) Example 1 Example 3Excess QuantitiesExcess Quantiti (1)Further CooperationFurther Coopera (1)147Compensation CommitteeNO TITLE (7)NO TITLE (8)!AMENDED AND RESTATED EMPLOYMENTWW (1)NO TITLE (9)W (2)W (3)W (4)
NO TITLE (10)
NO TITLE (11)
STOCK OPTIONS
WITNESSETH
NO TITLE (12)
NO TITLE (13)U }}$
$SYNTHESIS ENERGY SYSTEMS INCSB2
01/31/2007WITNESSETH: COMPANY:
&SYNTHESIS ENERGY SYSTEMS, INC.
By:
Name:Title: OPTIONEE:$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BXwkG3vR)oZ6=PF0*8X>
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??!CALCULATION OF REGISTRATION FEEBeneficial OwnershipThe Offering!We may require additional fundi!The market valuation of our busPLAN OF OPERATIONSSELLING STOCKHOLDERS
NO TITLEPLAN OF DISTRIBUTION!DIRECTORS AND EXECUTIVE OFFICERBeneficial Owne (1)Beneficial Owne (2)NO TITLE (1)Summary CompensationNO TITLE (2)Outstanding Equity AwardsDIRECTOR COMPENSATIONDIRECTOR COMPEN (1)!MARKET FOR COMMON EQUITY AND REINDEX TO FINANCIAL STATEMENTS!Report of Independent RegistereReport of Independent (1)Report of Independent (2)Report of Independent (3)Report of Independent (4)!Note 3 151 Prepaid expenses and!Note 4 151 Property plant and e Note 4 151 Property plant (1)!Note 6 151 Accrued expenses andNote 6 151 Accrued (1)Provision for income taxes!Deferred tax assets liabilitiesLease commitmentsLicense agreement!Note 11 150 Accounting for stocNote 11 150 Accounting (1)!First Amendment to the Amended First Amendment to the (1)First Amendment to the (2)First Amendment to the (3)!Effect of Adopting SFAS No 123R!Prior Period Pro Forma Presenta
AssumptionsAssumptions (1)Assumptions (2)Assumptions (3)Assumptions (4)!Item 25 Other Expenses of IssuaItem 27 Index to ExhibitsItem 27 Index to (1)Index to ExhibitsIndex to Exhibi (1)NO TITLE (3)NO TITLE (4)!ARTICLE 3 CONFIDENTIAL DISCLOSU!ARTICLE 7 REPRESENTATIONS AND W!Total Investment Registered Cap!Responsibilities of the PartiesResponsibilities of the (1)Responsibilities of the (2)Board of Directors!Term Termination and LiquidatioSettlement of DisputesSettlement of D (1)NO TITLE (5)