# EDGAR Filing Document

**Accession Number:** 0002021728
**File Stem:** 0002021728-25-000005
**Filing Date:** 2025-12
**Character Count:** 1474492
**Document Hash:** ed7b76ec3a94e37687e3736019aa94eb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0002021728-25-000005.hdr.sgml**: 20260417

**ACCESSION NUMBER**: 0002021728-25-000005

**CONFORMED SUBMISSION TYPE**: DRS

**PUBLIC DOCUMENT COUNT**: 34

**FILED AS OF DATE**: 20251222

**DATE AS OF CHANGE**: 20251222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cerebras Systems Inc.
- **CENTRAL INDEX KEY:** 0002021728
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08857
- **FILM NUMBER:** 251592485

**BUSINESS ADDRESS:**
- **STREET 1:** 1237 E. ARQUES AVE.
- **CITY:** SUNNYVALE
- **STATE:** CA
- **ZIP:** 94085
- **BUSINESS PHONE:** (650) 933-4890

**MAIL ADDRESS:**
- **STREET 1:** 1237 E. ARQUES AVE.
- **CITY:** SUNNYVALE
- **STATE:** CA
- **ZIP:** 94085

**As confidentially submitted to the U.S. Securities and Exchange Commission on December 22, 2025.**

**This draft registration statement has not been filed publicly with the Securities and Exchange Commission and all information contained herein remains confidential.**

**Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT**

**UNDER**

**THE SECURITIES ACT OF 1933**

**Cerebras Systems Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **3674** | **81-2256092** |
| **(State or other jurisdiction of**<br>**incorporation or organization)**<br>| **(Primary Standard Industrial**<br>**Classification Code Number)**<br>| **(I.R.S. Employer** <br>**Identification Number)**<br>|

---

**1237 E. Arques Avenue**

**Sunnyvale, California 94085**

**(650) 933-4980**

**(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)**

**Andrew D. Feldman**

**Chief Executive Officer and President**

**1237 E. Arques Avenue**

**Sunnyvale, California 94085**

**(650) 933-4980**

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

***Copies to:***

---

| | | |
|:---|:---|:---|
| **Tad J. Freese**<br>**Sarah B. Axtell**<br>**Zuzanna V. Gruca**<br>**Latham & Watkins LLP**<br>**140 Scott Drive**<br>**Menlo Park, California 94025**<br>**(650) 328-4600**<br>| **Shirley X. Li**<br>**Christopher Ing**<br>**Cerebras Systems Inc.**<br>**1237 E. Arques Avenue**<br>**Sunnyvale, California 94085**<br>**(650) 933-4980**<br>| **Alan F. Denenberg**<br>**Elizabeth W. LeBow**<br>**Davis Polk & Wardwell LLP**<br>**900 Middlefield Road**<br>**Redwood City, California 94063**<br>**(650) 752-2000**<br>|

---

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following

box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act

registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number

of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number

of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.

See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

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

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial

accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further** 

**amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until the** 

**registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.**

**Explanatory Note:**

Pursuant to the applicable provisions of the Fixing America's Surface Transportation Act, we are omitting

(i) our financial statements for the nine months ended September 30, 2024 and 2025 because they relate to a

historical period that we believe will not be required to be included in the prospectus at the time of the contemplated

offering and (ii) our compensation disclosure for the year ended December 31, 2024 on the basis that the registration

statement will be publicly filed no earlier than January 1, 2026, at which time compensation disclosure for the year

ended December 31, 2025 will be required. We intend to amend the registration statement to include all financial

information required by Regulation S-X and compensation disclosure required by Regulation S-K at the date of such

amendment before distributing a preliminary prospectus to investors.

**The information in this preliminary prospectus is not complete and may be changed. We and the selling stockholders may not sell these securities until the registration** 

**statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and neither we nor the selling** 

**stockholders are soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.**

***PRELIMINARY PROSPECTUS (Subject to Completion)***

***Issued&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026***

*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares*

![cerebraslogo1a.jpg](cerebraslogo1a.jpg)

***Cerebras Systems Inc.***

*Class A Common Stock*

*Cerebras Systems Inc. is offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of its Class A common stock and the selling stockholders identified in this prospectus are offering* 

*an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Class A common stock. This is our initial public offering and no public market currently exists for shares of our* 

*Class A common stock. We will not receive any proceeds from the sale of shares of common stock by any of the selling stockholders. We anticipate* 

*that the initial public offering price per share of our Class A common stock will be between $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .*

***We have applied to list our Class A common stock on the Nasdaq Global Market under the symbol "CBRS," and this offering is contingent***

***upon the listing of our Class A common stock on the Nasdaq Global Market.***

*Following completion of this offering, we will have two classes of authorized common stock: Class A common stock and Class N common stock. The* 

*rights of the holders of Class A common stock and Class N common stock are identical, except with respect to voting and conversion rights. Each* 

*share of Class A common stock is entitled to one vote. Each share of Class N common stock is non-voting and is convertible into one share of* 

*Class A common stock. See the section titled "Description of Capital Stock" for additional information.*

*We are an "emerging growth company" as defined under the U.S. federal securities laws and, as such, may elect to comply with certain reduced* 

*public company reporting requirements for this and future filings.*

***Investing in our Class A common stock involves risks. See the section titled "<u>[Risk Factors](#ibd339ea2eafe457fa4b52fadf16fc05d_90)</u>" beginning on page <u>[22](#ibd339ea2eafe457fa4b52fadf16fc05d_90)</u> to read about factors you***

***should consider before deciding to invest in our Class A common stock.***

*PRICE $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A SHARE*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Price to Public*** | ***Underwriting*** <br>***Discounts and*** <br>***Commissions***<sup>(1)</sup><br>| ***Proceeds to*** <br>***Cerebras***<sup>(2)</sup><br>| ***Proceeds to*** <br>***Selling*** <br>***Stockholders***<sup>(2)</sup><br>|
| *Per Share*............................................................................................................... | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  |
| *Total*....................................................................................................................... | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  | *$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*  |

---

*_______________*

*(1)See the section titled "Underwriters" for a description of the compensation payable to the underwriters.*

*(2)Before expenses.*

*We will grant the underwriters the right to purchase up to an additional&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock from us to cover over-*

*allotments, if any, at the initial public offering price less the underwriting discount.*

*The Securities and Exchange Commission and state securities regulators have not approved or disapproved these securities or determined if this* 

*prospectus is truthful or complete. Any representation to the contrary is a criminal offense.*

*The underwriters expect to deliver the shares against payment on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026.*

*MORGAN STANLEY* *CITIGROUP* *BARCLAYS* *UBS INVESTMENT BANK* 

*MIZUHO* *TD COWEN*

*NEEDHAM & COMPANY* *CRAIG-HALLUM* *WEDBUSH SECURITIES* *ROSENBLATT* *ACADEMY SECURITIES*

*Prospectus dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026*

![cerebras-drsx12192.jpg](cerebras-drsx12192.jpg)

i

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| <u>[Prospectus Summary](#ibd339ea2eafe457fa4b52fadf16fc05d_1171)</u>.................................... | <u>[3](#ibd339ea2eafe457fa4b52fadf16fc05d_1171)</u> |
| <u>[The Offering](#ibd339ea2eafe457fa4b52fadf16fc05d_871)</u>................................................. | <u>[15](#ibd339ea2eafe457fa4b52fadf16fc05d_871)</u> |
| <u>[Summary Consolidated Financial Data](#ibd339ea2eafe457fa4b52fadf16fc05d_104)</u>........ | <u>[18](#ibd339ea2eafe457fa4b52fadf16fc05d_104)</u> |
| <u>[Risk Factors](#ibd339ea2eafe457fa4b52fadf16fc05d_90)</u>.................................................. | <u>[22](#ibd339ea2eafe457fa4b52fadf16fc05d_90)</u> |
| <u>[Special Note Regarding Forward-Looking](#ibd339ea2eafe457fa4b52fadf16fc05d_897)</u><br><u>[Statements](#ibd339ea2eafe457fa4b52fadf16fc05d_897)</u>.................................................<br>| <u>[73](#ibd339ea2eafe457fa4b52fadf16fc05d_897)</u> |
| <u>[Market and Industry Data](#ibd339ea2eafe457fa4b52fadf16fc05d_910)</u>............................. | <u>[75](#ibd339ea2eafe457fa4b52fadf16fc05d_910)</u> |
| <u>[Use of Proceeds](#ibd339ea2eafe457fa4b52fadf16fc05d_923)</u>............................................ | <u>[76](#ibd339ea2eafe457fa4b52fadf16fc05d_923)</u> |
| <u>[Dividend Policy](#ibd339ea2eafe457fa4b52fadf16fc05d_948)</u>............................................ | <u>[77](#ibd339ea2eafe457fa4b52fadf16fc05d_948)</u> |
| <u>[Capitalization](#ibd339ea2eafe457fa4b52fadf16fc05d_961)</u>............................................... | <u>[78](#ibd339ea2eafe457fa4b52fadf16fc05d_961)</u> |
| <u>[Dilution](#ibd339ea2eafe457fa4b52fadf16fc05d_986)</u>........................................................ | <u>[81](#ibd339ea2eafe457fa4b52fadf16fc05d_986)</u> |
| <u>[Management's Discussion and Analysis of](#ibd339ea2eafe457fa4b52fadf16fc05d_188)</u><br><u>[Financial Condition and Results of](#ibd339ea2eafe457fa4b52fadf16fc05d_188)</u><br><u>[Operations](#ibd339ea2eafe457fa4b52fadf16fc05d_188)</u>.................................................<br>| <u>[84](#ibd339ea2eafe457fa4b52fadf16fc05d_188)</u> |
| <u>[Business](#ibd339ea2eafe457fa4b52fadf16fc05d_175)</u>....................................................... | <u>[103](#ibd339ea2eafe457fa4b52fadf16fc05d_175)</u> |
| <u>[Management](#ibd339ea2eafe457fa4b52fadf16fc05d_1012)</u>................................................. | <u>[131](#ibd339ea2eafe457fa4b52fadf16fc05d_1012)</u> |

---

---

| | |
|:---|:---|
|  | **Page** |
| <u>[Executive and Director Compensation](#ibd339ea2eafe457fa4b52fadf16fc05d_796)</u>......... | <u>[139](#ibd339ea2eafe457fa4b52fadf16fc05d_796)</u> |
| <u>[Certain Relationships and Related Party](#ibd339ea2eafe457fa4b52fadf16fc05d_833)</u><br><u>[Transactions](#ibd339ea2eafe457fa4b52fadf16fc05d_833)</u>..............................................<br>| <u>[149](#ibd339ea2eafe457fa4b52fadf16fc05d_833)</u> |
| <u>[Principal and Selling Stockholders](#ibd339ea2eafe457fa4b52fadf16fc05d_859)</u>.............. | <u>[152](#ibd339ea2eafe457fa4b52fadf16fc05d_859)</u> |
| <u>[Description of Capital Stock](#ibd339ea2eafe457fa4b52fadf16fc05d_884)</u>........................ | <u>[155](#ibd339ea2eafe457fa4b52fadf16fc05d_884)</u> |
| <u>[Shares Eligible for Future Sale](#ibd339ea2eafe457fa4b52fadf16fc05d_935)</u>.................... | <u>[163](#ibd339ea2eafe457fa4b52fadf16fc05d_935)</u> |
| <u>[Material U.S. Federal Income Tax](#ibd339ea2eafe457fa4b52fadf16fc05d_974)</u><br><u>[Consequences to Non-U.S. Holders](#ibd339ea2eafe457fa4b52fadf16fc05d_974)</u>.........<br>| <u>[166](#ibd339ea2eafe457fa4b52fadf16fc05d_974)</u> |
| <u>[Underwriters](#ibd339ea2eafe457fa4b52fadf16fc05d_1000)</u>................................................. | <u>[170](#ibd339ea2eafe457fa4b52fadf16fc05d_1000)</u> |
| <u>[Legal Matters](#ibd339ea2eafe457fa4b52fadf16fc05d_1048)</u>............................................... | <u>[179](#ibd339ea2eafe457fa4b52fadf16fc05d_1048)</u> |
| <u>[Change in Independent Accountant](#ibd339ea2eafe457fa4b52fadf16fc05d_1617)</u>............. | <u>[179](#ibd339ea2eafe457fa4b52fadf16fc05d_1617)</u> |
| <u>[Experts](#ibd339ea2eafe457fa4b52fadf16fc05d_1060)</u>......................................................... | <u>[179](#ibd339ea2eafe457fa4b52fadf16fc05d_1060)</u> |
| <u>[Where You Can Find Additional](#ibd339ea2eafe457fa4b52fadf16fc05d_1072)</u><br><u>[Information](#ibd339ea2eafe457fa4b52fadf16fc05d_1072)</u>...............................................<br>| <u>[180](#ibd339ea2eafe457fa4b52fadf16fc05d_1072)</u> |
| <u>[Index to Consolidated Financial Statements](#ibd339ea2eafe457fa4b52fadf16fc05d_391)</u> | <u>[F-1](#ibd339ea2eafe457fa4b52fadf16fc05d_391)</u> |

---

**Through and including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 (the 25th day after the date of this prospectus), all dealers that**

**buy, sell, or trade shares of our Class A common stock, whether or not participating in this offering, may be**

**required to deliver a prospectus. This delivery requirement is in addition to the obligation of dealers to**

**deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

As used in this prospectus, unless the context otherwise requires, references to "Cerebras Systems," "Cerebras,"

the "company," "we," "us," "our," and similar terms refer to Cerebras Systems Inc. and, where appropriate, its

subsidiaries, taken as a whole.

"Cerebras," "Cerebras Systems," the Cerebras logos, and other trade names, trademarks, or service marks of

Cerebras appearing in this prospectus are the property of Cerebras Systems Inc. Other trade names, trademarks, or

service marks appearing in this prospectus are the property of their respective holders. Solely for convenience, trade

names, trademarks, and service marks referred to in this prospectus appear without the®,™, and <sup>SM</sup> symbols, but

those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable

law, our rights or that the applicable owner will not assert its rights, to these trade names, trademarks, and service

marks.

Numerical figures included in this prospectus have been subject to rounding adjustments. Accordingly,

numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede

them.

References to *www.cerebras.ai* in this prospectus are inactive textual references only, and the information

contained on, or that can be accessed through, our website does not constitute part of this prospectus.

Neither we, the selling stockholders, nor the underwriters have authorized anyone to provide you any

information or to make any representations other than those contained in this prospectus or in any free writing

prospectus prepared by or on behalf of us or to which we have referred you. Neither we, the selling stockholders, nor

the underwriters take responsibility for, or provide any assurance as to the reliability of, any other information others

may give you. This prospectus is an offer to sell only the shares offered hereby, and only under circumstances and in

jurisdictions where it is lawful to do so. We, the selling stockholders, and the underwriters are not making an offer to

sell these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this

ii

prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or

any sale of the shares of our Class A common stock. Our business, financial condition, results of operations, and

prospects may have changed since that date.

*For investors outside the United States*: Neither we, the selling stockholders, nor the underwriters have done

anything that would permit this offering or the possession or distribution of this prospectus or any free writing

prospectus in connection with this offering in any jurisdiction where action for that purpose is required, other than in

the United States. Persons outside the United States who come into possession of this prospectus must inform

themselves about, and observe any restrictions relating to, the offering of the shares of our Class A common stock

and the distribution of this prospectus outside the United States. See the section titled "Underwriters" for additional

information.

**GLOSSARY OF CERTAIN TERMS**

The following are abbreviations, acronyms, and definitions of certain terms used in this prospectus:

• "AI" stands for artificial intelligence. AI includes GenAI, machine learning, and other artificial intelligence

tools, systems, products, and related technologies.

• "API" stands for Application Programming Interface. An API is a set of rules, protocols, and tools that

allow different software applications to communicate and interact with each other.

• "Chassis" means the metal frame that supports and houses the components of an electronic device,

including the circuits that connect the components.

• "CPU" stands for Central Processing Unit. A CPU is the brain of a computer, responsible for executing

instructions and carrying out computations. It is a complex IC that fetches, decodes, and executes

instructions, typically from main memory under the control of software programs.

• "Customers" refers to our end customers. When the context requires, we may use "end customers," which

include hyperscalers, foundation model labs, AI-native and digital-native businesses, Fortune 500

companies, and Sovereign AI initiatives. When used in our audited consolidated financial statements

included elsewhere in this prospectus, "customers" means parties we directly invoice for products or

services.

• "GenAI" stands for generative AI. GenAI is a type of AI technology that can produce various types of

content, including text, imagery, audio, and synthetic data.

• "GPU" stands for Graphic Processing Unit. GPU is a specialized IC with a high degree of parallelism used

to accelerate the rendering of complex graphics onto a screen. Due to their ability to perform numerous

computations simultaneously, GPUs outperform CPUs on certain tasks and are increasingly used for

scientific computing and accelerating AI workloads, such as the training of large language models.

• "HBM" stands for High Bandwidth Memory. HBM is a type of computer memory designed to provide high

bandwidth and low latency for GPUs, other AI accelerators, and CPUs. HBM is significantly faster and

more expensive than traditional DRAM memory and is typically integrated within the IC package.

• "Hyperscalers" means large technology companies that offer highly scalable cloud computing services,

utilizing extensive data centers. They offer a wide range of dynamically-provisioned services, including

computing infrastructure, software platforms, and, increasingly, AI model training and inferencing. These

services are available on an as-needed basis, managed and scaled via software by the users.

• "IC" stands for an Integrated Circuit. IC is a miniaturized electronic circuit that combines multiple

transistor components and other elements into a single small package. ICs are the fundamental building

blocks of modern electronics, and they are used in a wide variety of applications, including computers,

servers, networking equipment, smartphones, automobiles, and medical devices.

• "Inference" means the process of using a trained machine learning model to make predictions or decisions

based on new data. It involves applying the patterns and knowledge the model learned during training to

analyze and interpret new, unseen inputs.

• "IT" stands for information technology.

• "LLM" stands for Large Language Model. LLMs are a class of artificial intelligence models that are trained

on vast amounts of text data to understand, interpret, and generate human-like language.

• "Node," in the context of chip manufacturing, is used as shorthand for "process node," which refers to

specific semiconductor manufacturing processes corresponding to different circuit generations and

architectures, for example, 14 nanometer and 5 nanometer nodes.

• "Rack" means an open-frame cabinet of standard dimensions used to organize and house servers,

networking equipment, power supplies, and other IT hardware. A data center typically houses thousands of

racks interconnected by networking switches typically using Ethernet protocol.

• "Sovereign AI" refers to AI systems that are developed, controlled, and managed by a particular nation or

established in furtherance of such nation's public interests.

• "SRAM" stands for Static Random-Access Memory. SRAM is a type of memory that stores data within

transistors so long as power is being supplied. Compared to DRAM (Dynamic Random-Access Memory),

another common type of RAM used in computers, SRAM is faster and consumes less power during active

use. However, it is more expensive and takes up more space than DRAM due to its complex architecture.

SRAM is often used on-chip in processors for cache memory because of its speed and efficiency, providing

quick access to frequently used data.

• "Tape-out" is the final phase of the chip design process for integrated circuits, where the completed design

is released to manufacturing.

• "Training" refers to the process of teaching an artificial intelligence model to make accurate predictions or

decisions by feeding it large amounts of data and adjusting its internal parameters based on identified

patterns. During training, the AI model uses algorithms to learn from the input data, iteratively refining its

accuracy by adapting its behavior to minimize errors.

• "Wafer" means a thin slice of a semiconductor material, typically made of silicon, upon which integrated

circuits are fabricated. Wafers serve as the foundation for the production of electronic components,

including microchips and microprocessors.

**PROSPECTUS SUMMARY**

*This summary highlights selected information contained elsewhere in this prospectus. This summary does not*

*contain all of the information that you should consider before deciding to invest in our Class A common stock. You*

*should read this entire prospectus carefully, including the sections titled "Risk Factors," "Special Note Regarding*

*Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of*

*Operations," and "Business," and our consolidated financial statements and related notes included elsewhere in*

*this prospectus before making an investment decision.*

**Overview**

We are building the fastest AI infrastructure in the world.

In AI, speed is critical to win. Speed improves user engagement, expands product capabilities, can lower

operating costs, and opens new markets. It shortens iteration cycles for engineers, researchers, and professionals

across industries, allowing them to be more productive. Speed unlocks new applications and new industries.

In technology, "speed unlocking value" is a pattern that has repeated itself over the past 30 years. Faster

solutions are used more often and for more demanding tasks. For example, the speed of broadband transformed the

internet from static pages into real-time applications, enabling new products and industries. Similarly, in search,

Google showed that even short delays in delivering answers significantly reduced usage and engagement.

AI repeats this pattern. As AI has moved from novelty to necessity, AI work has grown more demanding, and

speed has become a bottleneck. Faster AI does more work in less time, providing better answers sooner.

Our solutions are built for speed. Cerebras Inference delivers answers up to 15 times faster than leading GPU-

based solutions as benchmarked on leading open-source models. Similarly, many customers have achieved more

than 10 times faster training time-to-solution compared to leading GPU systems of the same generation.

These performance breakthroughs are the result of our core innovation: the world's first and only

commercialized wafer scale processor. Called the Wafer-Scale Engine ("WSE"), our processor is 58 times larger

than NVIDIA's B200 chip and has 2,625 times more memory bandwidth than NVIDIA's B200 package, which

contains two individual chips. To build the WSE, we solved the 75-year-old compute industry problem of wafer-

scale integration to produce, yield, power, and cool a chip of this size. This size is what enables our incredible AI

speeds. By bringing massive compute and memory onto a single piece of silicon and integrating it into a purpose-

built system and software stack, we deliver exceptional AI speed for customers on premises and via the cloud.

Our customers include hyperscalers, foundation model labs, AI native and digital native businesses, enterprises,

and Sovereign AI initiatives. Our customers use Cerebras solutions to run applications that demand speed, scale, and

intelligence. This work includes training and serving large frontier models with near-instant responses, processing

massive datasets in real time, and generating full-stack applications in a single step. Once customers adopt fast

inference, user expectations for interactivity rise, and engineering teams shift from latency optimizations to other

work, making it difficult to return to slower inference.

We deliver our solutions to customers in several different ways. Organizations that require full data and

infrastructure control can purchase Cerebras AI supercomputers for on-premises deployments. Customers seeking

cloud flexibility can access Cerebras compute through consumption-based models on Cerebras Cloud or through

partner clouds. For example, our high-speed inference services are available through partners, including AWS

Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway, OpenRouter, and Hugging

Face, enabling seamless adoption within existing workflows.

Our ability to deliver differentiated performance has made us a strategic partner to many of our largest

customers. Beyond providing compute infrastructure, we provide AI services to our customers to co-develop

solutions to address their most complex challenges, from training state-of-the-art models to optimizing deployments

for each application's needs. These partnerships have expanded over time; notably, our top ten customers by year-to-

date revenue through September 30, 2025 increased their aggregate spend with us by approximately 80% within 12

months of their initial purchase, often including contracts for co-development.

AI is one of the fastest growing technologies in history. We believe that our high-speed AI solutions give us a

meaningful competitive advantage in this market. We believe that further adoption of AI, accelerated by increased

penetration, more frequent usage, and more complex applications, will continue to rapidly expand the market.

According to IDC, investments in AI solutions and services are projected to yield a global cumulative impact of

$22.3 trillion by 2030, representing approximately 3.7% of the global gross domestic product ("GDP"). The

combined market for AI training infrastructure and our addressable market within AI inference is estimated to be

$251 billion in 2025 and is expected to grow to $672 billion by 2029—a 28% CAGR, according to Bloomberg

Intelligence. This estimate indicates that AI inference will grow more than twice as fast as AI training infrastructure

through 2029. With the fastest inference platform on the market, as benchmarked by Artificial Analysis, and a

proven track record in large-scale training, we believe we are well-positioned to capture growth across both parts of

the AI infrastructure market.

Our growth reflects the broader acceleration of AI adoption. Our revenue increased from $25.0 million in 2022

to $79.0 million in 2023 and to $290.3 million in 2024, representing a more than tenfold increase over three years.

Our revenue increased to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in 2025, representing year-over-year growth of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %. We incurred net

losses of $481.6 million and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in 2024 and 2025, respectively.

**Industry Background**

***AI is the Next Technological Shift***

Over the past 50 years, the compute industry has undergone a series of secular shifts, each of which expanded

access to compute and transformed global productivity. We believe AI represents the next major technological shift

—one with the potential to exceed the transformational impact of prior cycles.

According to Pew Research Center, as of June 2025, around 62% of U.S. adults interacted with AI at least

several times a week, with 31% doing so almost constantly (at least several times a day), and one-third of U.S. adults

under 30 saying they interacted with AI several times a day. Additionally, the Digital Education Council found in

2024 that 86% of higher-education students used AI. According to a McKinsey survey in 2025, the share of

respondents saying their organizations are using AI in at least one business function has increased since their

research last year: 88% reported regular AI use in at least one business function in 2025 compared with 78% a year

ago. In the third quarter of 2025, Gallup reported daily use of AI in the workplace had more than doubled in the past

12 months, with 10% of U.S. employees reporting they used AI in their daily roles.

The strong rate of AI adoption is driven by the simple fact that AI has transitioned from novelty to necessity and

is now used across consumer and enterprise domains. Individuals and organizations rely on AI to solve problems,

build products, accelerate research, improve patient outcomes, enhance decision-making, streamline operations,

enable innovation, and deliver personalized experiences.

The rise of AI depends on massive computational resources. This is where Cerebras fits in.

***Inference is Driving the AI Compute Demand, as Frontier AI Models Grow More Capable***

AI is composed of two stages: **training** and **inference.** Training is the process of creating and teaching the AI

model; inference is the process of using the model to generate responses. Today, AI has entered a new era centered

on inference. New techniques have emerged that make models smarter *as they are being used*. This approach—

called "inference-time compute" or "test-time compute"—has become the dominant mode of inference.

Instead of depending primarily on the trained model for accuracy, today's frontier models—such as OpenAI's

GPT-5, Anthropic's Claude Sonnet 3.7, and Google's Gemini Pro 3.0—perform substantial computation during

inference to simulate **reasoning**. These models effectively "think through" the problem:planning steps, checking

their own work, and refining responses before delivering a final, higher-quality result. These additional steps use

substantially more compute during inference, while producing more accurate answers.

These reasoning capabilities have fundamentally changed how people use AI. Inference is no longer limited to

answering questions; modern AI applications now perform actions on behalf of their users. They can directly book

travel itineraries, code full web applications from scratch, help customers apply for mortgages, automatically

analyze legal contracts for discrepancies, process insurance claims, and more. As a result, demand for AI inference

has surged alongside the adoption of these smarter reasoning models that leverage more inference-time compute.

Ultimately, demand for inference is driven by the compounding effect of three forces: the number of users, the

frequency of use, and the increasing complexity of the use case. Each of these forces is growing at an extraordinary

rate, producing a geometric expansion of demand for inference and its underlying compute.

Reasoning during inference delivers smarter AI responses but requires significantly more compute. As models

become more capable, users rely on them for increasingly ambitious tasks, further driving compute needs. Today's

workloads—including video generation, deep research, and long-form analysis—can require many orders of

magnitude more compute than answering basic questions.

***Reasoning Makes Inference Speed a Necessity***

forcing customers to wait for answers.

Complex tasks (harder problems) are more valuable to solve but they require the reasoning system to go through

a longer sequence of steps. This amplifies the benefit of speed and the penalty for being slow. Speed enables more

accurate answers to harder problems in less time. Speed expands the range of tasks that AI can address, thereby

broadening its addressable market.

***Fast Inference Enables the Next Generation of AI Workloads, With Coding as a Clear Early Signal***

As AI uses more compute to tackle increasingly complex problems, a fundamental challenge emerges: everyone

wants a better response for complicated requests, but nobody wants to wait to get a response.

We are solving this problem. Cerebras Inference delivers answers up to 15 times faster than leading GPU-based

solutions as benchmarked on leading open-source models. This speed advantage enables our solutions to deliver

real-time performance for the most advanced reasoning models, enabling complex tasks to be completed more

accurately and quickly.

These dynamics are already visible in the market. Three fast-growing categories—**software development, deep**

**research systems, and voice applications**—illustrate the importance of speed. For these and many other similar

applications, inference speed is a necessity.

• **AI-powered software development** provides a clear early signal. Coding with AI is interactive and

sensitive to delay. Delay impairs a developer's train of thought, and as a result, developers are more likely

to abandon tools that slow them down.

AI can now write code. It reasons over large codebases and then uses the multi-step process previously

described to generate, modify, and run code. Inference speed has become a primary determinant for

adoption. Products such as Cursor, Claude Code, Codex, Windsurf, and GitHub Copilot act as autonomous

collaborators—planning, editing, and validating code across repositories in response to natural-language

instructions from developers. These systems require complex, multi-step tasks, including continuous

reasoning and long-context memory. Fast inference is the only way to avoid frustrating wait times.

AI-native coding products barely existed in 2023. Yet they collectively generated billions in ARR in 2025

and continue to accelerate. For example, AI coding applications like Lovable and Cursor are among some

of the fastest growing developer tools in history.

Coding demonstrates a fundamental pattern in reasoning systems: wherever AI involves continuous

interaction, multi-step reasoning, and sensitivity to response time, speed determines utility. Those same

conditions are present across a growing set of AI applications.

• **Deep research systems** apply similar reasoning to knowledge work, performing multi-step retrieval and

synthesis across large datasets to deliver structured insights in real time. Platforms such as AlphaSense rely

on real-time inference to sift through a higher volume of documents to help analysts and enterprises find

answers faster.

• **Voice applications** include conversational agents, avatars, and digital twins from companies like Meta,

Tavus, and OpenCall. Real-time performance is critical for voice: sub-second latency makes interactions

feel natural and gives these systems time to call tools or retrieve data mid-conversation for richer,

contextual responses.

Together, we believe these applications lead the way in the next phase of AI adoption: systems that think, act,

and interact continuously, driving sustained demand for faster and more efficient compute infrastructure.

In this environment, speed directly shapes usage. Long wait times limit real-time applications, stunt the

diffusion of AI capabilities, and can foreclose new markets and applications. As a result, slow systems lose users,

limit capability, and stall innovation, while faster systems are used more often and for more demanding workloads.

We believe speed is a defining advantage in modern AI. Reasoning is intelligence, and intelligence compounds

with speed. We believe the ability to deliver fast, scalable reasoning will define not only the next decade of

technology, but also shape the future of how people work, create, and interact.

**Our Solution**

We are building the fastest commercial AI infrastructure in the world. Our AI supercomputers are purpose built

to make AI fast. Our full-stack hardware and software platform is designed to complete AI tasks significantly faster

and more efficiently than comparable GPU-based solutions, whether deployed on premises, through the Cerebras

Cloud, or via partner clouds.

***1. Hardware Platform***

At the core of our solution is the Cerebras WSE, the largest and fastest AI processor ever brought to market in

high volumes. The WSE combines 900,000 compute cores, 44 gigabytes of on-chip memory, and 21 petabytes of

memory bandwidth on the largest commercial chip ever built. The WSE-3 is 58 times larger than NVIDIA's B200

chip. The WSE has 19 times more transistors, 250 times more on-chip memory, and 2,625 times more memory

bandwidth than NVIDIA's B200 package, which contains two individual chips.

Each WSE is housed inside a Cerebras CS-3 system, our fully integrated AI compute system that includes

advanced cooling, power delivery, and interconnect technology. Multiple CS-3 systems connect to form Cerebras AI

supercomputers deployed on premises in customer data centers and in the cloud.

***2. Co-designed Software Platform***

Our software platform makes wafer-scale computing simple to use. It spans the full AI life cycle—from model

programming and compilation, to training and inference, to cluster orchestration.

• **Cerebras Compiler** compiles PyTorch models directly to the WSE, eliminating the need for CUDA or

distributed programming and providing an easy-to-use developer experience.

• **Cerebras Inference Serving Stack** delivers ultra-low-latency inference with industry-standard APIs for

production use.

• **Cerebras Cluster Manager** orchestrates multiple CS-3 systems into one logical AI supercomputer,

handling scheduling, telemetry, and health monitoring at scale.

Because every layer is co-designed with our hardware, customers can scale training and inference across

frontier-size models without rewriting code or managing distributed infrastructure.

***3. Flexible Deployment Models***

Our technology is designed to be delivered in the form that best accelerates a customer's AI roadmap. Our

platform is designed for flexibility—meeting organizations where they are, and scaling with them as their ambitions

grow.

• **Cerebras Cloud:** Provides high-performance AI compute through a simple API, allowing customers to

serve open-source, fine-tuned, or proprietary models with production-grade reliability.

• **Partner Clouds:** Offer seamless access to Cerebras systems through leading cloud providers including

AWS Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway,

OpenRouter, and Hugging Face, extending our reach across the global AI ecosystem.

• **On-Premises Deployments:** Deliver fully integrated AI supercomputers and install them directly in

customer environments, giving enterprises, Sovereign AI initiatives, national laboratories, and defense

organizations complete control over data, performance, and operations. We also operate and manage large

clusters of AI supercomputers for some of our customers.

• **Hybrid Deployments:** Enable customers to move fluidly between on-premises and cloud environments

through a unified software stack, maintaining consistent performance and workflows as they scale.

Customers choose the consumption model that fits their needs—buying inference by the token, running training

workloads by the week or month, reserving dedicated capacity for long-term production deployments, or purchasing

on-premises infrastructure.

***4. AI Model Services***

Our AI experts accelerate customers' ability to take AI applications from concept to production. With deep

experience training frontier-scale models across modalities, our team helps customers select model architectures,

prepare large-scale training data, and train and fine-tune models for production. We also design optimized

deployments for customers—training draft or speculative decoding models and tuning configurations to balance

latency, throughput, and cost for each application.

***What This Means for Customers***

Our customers, which include hyperscalers, foundation model labs, AI native and digital native businesses,

enterprises, and leaders of Sovereign AI initiatives, complete tasks dramatically faster than on GPU-based systems.

Faster reasoning improves user experience, increases engagement, accelerates iteration, and enables new classes of

AI applications. This speed advantage compounds in production environments, where reduced latency and shorter

training cycles have meaningful business impact.

**Key Customer Benefits**

Through our full-stack AI offerings, we deliver tangible improvements across four key dimensions that define

AI value in the real world: **speed, quality, cost, and simplicity**.

***1. Speed: Real-Time Reasoning Unlocks New Benefits From AI***

Our systems achieve dramatically faster inference than GPU clusters, enabling applications such as real-time

coding agents, nearly instant deep research, and digital twins that were previously impractical or impossible.

Customers describe the leap in inference speed as going from dial-up to broadband—an advancement that redefines

what AI can do.

New classes of products that customers have built and use daily with Cerebras include:

• **Real-time coding agents:** Copilots that read, write, and debug code nearly instantly—turning AI into an

interactive programming partner.

• **Nearly instant deep research agents:** Systems that analyze thousands of documents in seconds,

accelerating market, scientific, and policy research.

• **Digital twins:** Lifelike AI personas that think, speak, and react in real time. With Cerebras, avatars respond

naturally and carry interactive conversations.

***2. Quality: More Accurate Responses Faster***

On GPUs, latency forces a tradeoff between speed and intelligence. Developers often have to limit the accuracy

of a response in order to have it delivered in a reasonable amount of time. Our offerings are designed to remove this

tradeoff.

*Example:*

On GPT-oss-120B, OpenAI's leading open-source model, Cerebras processes tokens nine times faster than the

fastest hyperscaler, allowing developers to use substantially more reasoning tokens while maintaining the same end-

to-end task completion time.

***3. Cost: Higher Performance at Lower Power***

Moving data from one chip to another is one of the most power-intensive parts of AI compute. And power is the

largest contributor to operating expenses in AI compute.

Our wafer-scale architecture keeps data on-chip, reducing data movement significantly, which in turn reduces

power consumption. It also eliminates layers of costly and complex networking equipment. By way of comparison,

moving a bit of data on the WSE-3 consumes a fraction of the energy required to move the same bit of data over

GPU interconnects.

Because our performance advantages stem from fundamental architectural efficiency, we expect these benefits

to endure across future generations that continue to build on our wafer-scale technology.

***4. Simplicity: One Platform; No Distributed Programming; Easy to Train and Deploy Models***

We eliminate the complexity of distributed programming across GPU clusters, which is one of the most

challenging aspects of AI deployment. Even extremely large models run without code changes, and scale

automatically and seamlessly across clusters of Cerebras systems. Because training, fine-tuning, and inference all

occur on a unified platform, customers avoid the operational overhead of moving between different compute

environments, enabling inference, fine tuning, and training from scratch on the same cluster. Cerebras Compiler's

PyTorch integration makes model customization and compilation simple, the Inference Serving Stack enables

deployment of frontier-sized models in minutes, and our AI experts support customers throughout the model life

cycle to accelerate results.

**Our Technology**

***Wafer-Scale Integration: The Foundation***

Cerebras started with a simple question: How could a new class of processors be designed with the singular goal

of solving the compute challenges presented by AI? Beginning with a clean slate, how could we avoid the trade-offs

made for graphics and other workloads to ensure that every transistor, every single part of the processor, was

optimized for the requirements of AI?

Our answer is wafer-scale integration. Wafer-scale integration enabled us to use a vastly faster memory and

avoid the complexity of switches and routers and associated complexity necessary to link together thousands of

GPUs.

SRAM is the fastest memory to date. But existing industry players could not use as much SRAM because they

could not fit it on their chip. The WSE-3 is 58 times larger than NVIDIA's B200 chip. The WSE has 19 times more

transistors, 250 times more on-chip memory, and 2,625 times more memory bandwidth than NVIDIA's B200

package, which contains two individual chips.

The second fundamental advantage provided by wafer-scale integration is that it kept the wafer intact. Instead of

building a wafer, cutting into hundreds of small GPUs, and using expensive, power-hungry switches, and complex

cables to wire them back together, our solution consists of one processor that is the size of an entire silicon wafer.

This reduced the need, cost, managerial complexity, and power draw of much of the networking stack required to

build a GPU solution.

Our wafer-scale solution unifies compute and memory and communications on the same piece of silicon,

eliminating the data-movement bottlenecks that slow GPU systems.

***The Underpinnings of Wafer-Scale Integration***

We solved a problem that flummoxed the compute industry for its entire history: how to build chips the size of

full silicon wafers. The advantages of size were well known. But no company had ever brought a wafer scale

solution to market.

To make wafer-scale commercially viable, we invented and productized two foundational semiconductor

technologies:

• **Multi-die interconnect:** Traditionally, die—regions of silicon containing an integrated circuit—are

individually stamped onto a silicon wafer and then cut up ("diced") into small, separate chips. Prior to

Cerebras, the largest known chip was about 840 mm<sup>2</sup>. We developed the technology to interconnect these

otherwise independent die together at the wafer level, at the semiconductor fabrication plant. The inter-die

connectivity uses a special cross-reticle connection that we invented that is integrated into our overall

fabrication process. This allowed us to use existing processes to do something we believe had never been

done before—namely, deliver a wafer that communicated across the entire 46,250 mm<sup>2</sup> of silicon and

therefore is a single massive processor.

• **Fault-tolerant architecture:** A primary factor in the commercial viability of a semiconductor is the yield.

Flaws are present in wafers. Large chips have a higher probability of hitting such a flaw. Traditionally,

chips with flaws have been thrown out or "down binned," that is, sold as a less capable part. Thus, using

traditional techniques, larger chips have lower yield and are therefore more expensive. We designed the

architecture to absorb and route around defects using redundant building blocks—similar to a hyperscale

data center but on the wafer. Flaws are designed to be recognized, shut down, and routed around.

Redundant building blocks are used to re-form a logically functional whole. This approach had been

previously used in memory manufacturing to achieve near perfect yield, but to our knowledge, prior to

Cerebras had not been used to build processors.

These innovations made wafer-scale computing commercially viable for the first time in semiconductor history.

***The Cerebras Chip, System, and Software***

Cerebras delivers a full-stack AI infrastructure solution. It contains innovations at each layer. At the base is the

Cerebras WSE, our wafer-scale processor. Each WSE is integrated into a CS-3 system with advanced power

delivery, cooling, and system management. Multiple CS-3 systems link together to form Cerebras AI

supercomputers that are deployed in data centers around the world.

Lightweight management and orchestration software operate these systems as one logical computer, while our

training and inference platforms make it simple to run large models at scale. Because each layer is designed with the

others in mind, the platform delivers consistent performance, reduced infrastructure complexity, and faster time to

deployment and results.

***1. The Chip: Cerebras Wafer-Scale Engine***

At the heart of our platform is the **Cerebras WSE**, the world's largest and fastest commercialized AI processor.

A single WSE replaces an entire cluster of GPUs by combining 900,000 compute cores and 44 gigabytes of on-chip

memory on one piece of silicon, with 21 petabytes per second of on-chip memory bandwidth. The WSE-3 is 58

times larger than NVIDIA's B200 chip. The WSE-3 also has 19 times more transistors, 250 times more on-chip

memory, and 2,625 times more memory bandwidth than NVIDIA's B200 package, which contains two individual

chips.

We believe our architecture solves for memory bandwidth, which is a primary bottleneck in modern AI. By

keeping compute and memory on a single chip, WSE-3 eliminates the off-chip data transfers that dominate GPU

latency and power consumption. As a result, our systems are faster, simpler to program, and more power-efficient

than GPUs on AI tasks.

***2. CS-3: System Innovation for Wafer-Scale Compute***

The WSE-3 is deployed inside the **CS-3 system**, a data center-ready appliance engineered to support wafer-

scale operation and integrate seamlessly into enterprise and Sovereign AI environments. The CS-3 provides the

power delivery, cooling, networking, and system management required to operate a wafer-scale processor reliably

and at scale. Multiple CS-3 systems can be connected to form Cerebras AI supercomputers, which function as a

single logical computer for large-scale training and inference.

***3. Cerebras Software: Making Wafer-Scale Simple***

Our software platform extends our hardware advantage by making wafer-scale computing simple to use and

highly efficient. Our software spans the full AI life cycle—from programming and compiling models, to training and

inference, to orchestration across large clusters. Each layer is co-designed with our hardware to deliver maximum

performance with minimal developer effort.

• **Model Programming and Compilation.** Our Cerebras Compiler (**CSoft**) makes it simple to run large

language models on our systems. CSoft is core to our solution and provides intuitive usability for

developers. CSoft eliminates the need for low-level programming in CUDA or other hardware-specific

languages. For both training and inference, our CSoft platform enables developers to easily represent and

map large language models onto the Cerebras Wafer-Scale Engine using familiar frameworks such as

PyTorch. CSoft allows machine-learning users to accelerate training and inference on models of any size,

scaled across any configuration of the Cerebras AI supercomputer.

• **Inference Serving Stack.** Our **Cerebras Inference Serving Stack** manages model hosting, scaling, and

request routing across Cerebras systems and clusters. It provides real-time observability and load balancing,

enabling ultra-low-latency inference for production workloads. Customers can serve both open-source and

proprietary models through standard APIs, including industry-standard endpoints, with consistent

performance across on-premises and cloud deployments.

• **Orchestration and Life Cycle Management.** Our **Cerebras Cluster Manager** orchestration software

unifies multiple CS-3 systems into a single logical computer, managing scheduling, telemetry, and health

monitoring. Built-in observability of all hardware and software components is designed to ensure reliability

and high utilization across on-premises and in cloud environments. This orchestration layer also allows

customers to switch seamlessly between training and inference on the same systems.

Together, these components form a unified software platform that integrates seamlessly with our hardware to

deliver a complete, end-to-end AI computing system that can be deployed on customer premises or in the cloud.

Because our software and hardware are co-designed, customers can train and deploy frontier-scale models with

consistent and simple workflows—without rewriting code or managing distributed infrastructure.

**Technology and Roadmap**

Wafer-scale integration is not a single achievement—it is a collection of technologies and processes with a

multi-generation roadmap. Each successive WSE generation (from 16 nanometer to 7 nanometer and now to 5

nanometer) has delivered substantial improvements in performance, memory bandwidth, efficiency, yield, and

manufacturability, without requiring changes to how developers program or deploy models.

Our roadmap builds on the advantages of wafer-scale integration. We intend to invest heavily in research and

development to continue to expand on-chip memory and memory bandwidth, improve interconnect density, and

leverage advancements in process technology to increase transistor counts and reduce power in future WSE

generations. As a result, we expect that future generations of WSEs will have faster compute, and more and faster

memory and communication onto and off of the wafer.

The same architectural foundation also supports long-term extensibility across emerging AI workloads. As

models grow in size, increase in reasoning depth, and shift toward real-time, multi-step interactions, they place even

greater emphasis on memory bandwidth and locality—all areas where wafer-scale architectures possess inherent,

structural advantages.

We believe wafer-scale computing positions us as a leader in AI infrastructure, providing a long-term

technology roadmap designed to scale with the requirements of modern and future AI systems.

**Competitive Strengths**

**1. Our culture of fearless engineering has enabled us to do pioneering engineering work; we are the**

**only company ever to deliver a wafer-scale processor to market.** Our culture of fearless engineering

enables us to solve problems that others failed to solve or were afraid to tackle.

**2. We have durable advantages rooted in our unique silicon architecture.** We believe wafer-scale

integration is a fundamental advantage in AI compute, enabling large amounts of high-speed memory and

hundreds of thousands of compute cores to reside close together on the same piece of silicon. We have now

delivered three generations of wafer scale processors at the 16, 7, and 5 nanometer nodes.

**3. We are an end-to-end systems company.** From inception, we co-designed our wafer-scale engine, our

CS-system, and our software stack for optimal AI performance. We were among the first in the AI

community to deliver water cooling to the processor, enabling us to run colder and extend our processors'

lifetime. The co-design of processor, system, and software is a meaningful competitive advantage.

**4. We are building the fastest inference infrastructure in the world.** On Cerebras infrastructure, AI

responses are up to 15 times faster than leading GPU-based solutions as benchmarked on leading open-

source models. Speed is customer experience. Speed changes the way companies design their experiences.

**5. We have met and exceeded the needs of some of the largest and most demanding customers in the AI**

**market.** By combining our AI services with our integrated hardware and software platform, we deliver a

single solution that accelerates model development, simplifies deployment, and eases the operational

burden for our customers.

**6. We operate at massive scale with more than 100 exaflops of deployed compute.** In collaboration with

our partners, we have trained some of the largest models in the industry, gaining unique experience and

providing rare insight.

**Risk Factors Summary**

Our business is subject to a number of risks and uncertainties of which you should be aware before making a

decision to invest in our Class A common stock. These risks are more fully described in the section titled "Risk

Factors." These risks include, among others, the following:

• We may not sustain our growth rate, and we may not be able to manage future growth effectively.

• We have a history of generating net losses, and if we are unable to achieve adequate revenue growth while

our expenses increase, we may not achieve and maintain profitability in the future.

• We have a limited operating history at our current scale, and we may have difficulty evaluating our current

business and accurately predicting our future revenue for the purpose of appropriately budgeting and

adjusting our expenses.

• A substantial portion of our revenue is driven by a limited number of customers. A reduction in demand

from, or a material adverse development in our relationship with any of our significant customers,

including G42 and MBZUAI, may harm our business, financial condition, results of operations, and

prospects.

• Our revenue historically has been derived from sales of our hardware systems. We are in the early stages of

delivering our cloud-based offerings, the market for which is new and evolving rapidly, and which requires

significant capital investments for which we expect to require additional capital. There is no assurance that

we will be able to sustain revenues from these efforts.

• Our cloud-based offerings are subject to certain risks and challenges. Unfavorable or uncertain conditions

in the training or inference cloud market, as well as for AI infrastructures, may cause fluctuations in our

results of operations.

• The broader adoption, use, and commercialization of AI technology, and the continued rapid pace of

developments in the AI field, are inherently uncertain. If we are unable to expand the application of our

products, keep up with evolving AI technology requirements, or if the new products we develop and

introduce into the market are not successful, our business, financial condition, results of operations, and

prospects may be harmed.

• The market for AI computing solutions is competitive, evolving, and requires scale, and if we do not

compete effectively, our business, financial condition, results of operations, and prospects may be harmed.

• We depend on third-party suppliers, including certain sole sources, and substantially all of our

manufacturing services and components are procured on a purchase order basis without capacity or volume

commitments, which may harm our ability to compete with larger companies, meet customer demand,

satisfy customer contracts or bring products to market, and our reputation, business, financial condition,

results of operations, and prospects.

• Our supply chain is long, complex, and global, with many interdependencies. Any significant fluctuations

of supply and demand or disruption to our supply chain may harm our ability to manufacture and deliver

our products to our customers.

• Our business and our products and services are subject to various governmental regulations, and

compliance with these regulations may cause us to incur significant expense. If we fail to comply with

applicable regulations, we could be subject to civil or criminal penalties.

• Our offerings are subject to U.S. export controls and may be exported outside the United States only with

the required export license or through a license exception. We cannot guarantee that we will be successful

in obtaining all required licenses in the future. If we are unable to obtain licenses to export our products,

our business, financial condition, results of operations, and prospects may be harmed.

• We identified material weaknesses in our internal control over financial reporting. If we are unable to

remediate these material weaknesses, or if we identify additional material weaknesses in the future or

otherwise fail to maintain an effective system of internal controls, we may not be able to accurately or

timely report our financial condition or results of operations, which may adversely affect investor

confidence in us and, as a result, the value of our Class A common stock.

• No public market for our Class A common stock currently exists and an active liquid market may not

develop or be sustained following this offering.

**Corporate Information**

We were incorporated in April 2016 as a Delaware corporation. Our principal executive offices are located at

1237 E. Arques Avenue, Sunnyvale, California 94085, and our telephone number is (650) 933-4980. Our website

address is *www.cerebras.ai*. Information contained on, or that can be accessed through, our website does not

constitute part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual

reference only.

**Implications of Being an Emerging Growth Company**

We are an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the

"JOBS Act"). We will remain an emerging growth company until the earliest of: (i) the last day of the fiscal year

following the fifth anniversary of the completion of this offering; (ii) the last day of the fiscal year in which we have

total annual gross revenue of at least $1.235 billion; (iii) the last day of the fiscal year in which we are deemed to be

a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the

"Exchange Act"), which would occur if the market value of our Class A common stock held by non-affiliates

exceeded $700.0 million as of the last business day of the second fiscal quarter of such year; or (iv) the date on

which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

An emerging growth company may take advantage of specified reduced reporting requirements and is relieved of

certain other significant requirements that are otherwise generally applicable to public companies. As an emerging

growth company:

• we will present in this prospectus only two years of audited annual financial statements, plus any required

unaudited condensed consolidated financial statements, and related management's discussion and analysis

of financial condition and results of operations;

• we will avail ourselves of the exemption from the requirement to obtain an attestation and report from our

independent registered public accounting firm on the assessment of our internal control over financial

reporting pursuant to the Sarbanes-Oxley Act of 2002;

• we will provide less extensive disclosure about our executive compensation arrangements; and

• we will not require stockholder non-binding advisory votes on executive compensation or golden parachute

arrangements.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended

transition period for complying with new or revised accounting standards. This provision allows an emerging growth

company to delay the adoption of some accounting standards until those standards would otherwise apply to private

companies. We have elected to use the extended transition period for any other new or revised accounting standards

until the date that we are no longer an emerging growth company or affirmatively and irrevocably opt out of the

extended transition period. As a result, our financial statements may not be comparable to companies that comply

with new or revised accounting pronouncements as of public company effective dates.

**THE OFFERING**

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| | |
|:---|:---|
| Class A common stock offered by us............................... | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares. |
| Class A common stock offered by the selling <br>stockholders...................................................................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares. |
| Over-allotment option to purchase additional shares of <br>Class A common stock from us.....................................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares. |
| Class A common stock to be outstanding immediately <br>after this offering...........................................................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters <br>exercise their over-allotment option in full).<br>|
| Class N common stock to be outstanding immediately <br>after this offering...........................................................<br>| None. |
| Total Class A common stock and Class N common <br>stock to be outstanding after this offering.....................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters <br>exercise their over-allotment option in full).<br>|
| Use of proceeds................................................................. | We estimate that we will receive net proceeds from this <br>offering of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if <br>the underwriters exercise their over-allotment option in <br>full), based upon the assumed initial public offering <br>price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of Class A common stock, <br>which is the midpoint of the estimated price range set <br>forth on the cover page of this prospectus, and after <br>deducting estimated underwriting discounts and <br>commissions and estimated offering expenses payable <br>by us.<br>The principal purposes of this offering are to obtain <br>additional capital to fund our operations, create a public <br>market for our Class A common stock, facilitate our <br>future access to the public equity markets, and increase <br>awareness of our company among potential partners. <br>We currently intend to use the net proceeds from this <br>offering, together with our existing cash, cash <br>equivalents, and investments, for general corporate <br>purposes, including working capital, operating expenses, <br>and capital expenditures. We may also use a portion of <br>the net proceeds to in-license, acquire, or invest in <br>complementary technologies, assets, businesses, or <br>intellectual property. We periodically evaluate strategic <br>opportunities; however, we have no current <br>commitments to enter into any such acquisitions or <br>make any such investments. <br>We intend to use approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the net <br>proceeds to satisfy tax withholding and remittance <br>obligations related to the RSU Net Settlement (as <br>defined below) for restricted stock units ("RSUs") that <br>will vest in connection with this offering.<br>We will have broad discretion in the way that we use the <br>net proceeds of this offering. See the section titled "<u>[Use](#ibd339ea2eafe457fa4b52fadf16fc05d_923)</u><br><u>[of Proceeds](#ibd339ea2eafe457fa4b52fadf16fc05d_923)</u>" for additional information.<br>We will not receive any proceeds from the sale of <br>Class A common stock in this offering by the selling <br>stockholders.<br>|

---

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| | |
|:---|:---|
| Voting rights..................................................................... | We have two classes of common stock: Class A <br>common stock and Class N common stock. Class A <br>common stock is entitled to one vote per share and Class <br>N common stock is non-voting and is convertible into <br>one share of Class A common stock. See the section <br>titled "<u>[Description of Capital Stock](#ibd339ea2eafe457fa4b52fadf16fc05d_884)</u>" for additional <br>information.<br>|
| Risk factors....................................................................... | See the section titled "<u>[Risk Factors](#ibd339ea2eafe457fa4b52fadf16fc05d_90)</u>" and other <br>information included in this prospectus for a discussion <br>of factors you should carefully consider before deciding <br>whether to invest in our Class A common stock.<br>|
| Proposed Nasdaq Global Market trading symbol............. | "CBRS" |

---

In this prospectus, the number of shares of our common stock to be outstanding after this offering is based on

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock and no shares of our Class N common stock outstanding as of

December 31, 2025, after giving effect to the Preferred Stock Conversion, the Option Exercise, and the RSU Net

Settlement (each as defined below), and excludes:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of outstanding stock options as of

December 31, 2025, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, after giving effect to the

Option Exercise;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of stock options granted after

December 31, 2025, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the vesting and settlement of RSUs subject to

service-based and liquidity-based vesting conditions outstanding as of December 31, 2025, for which the

service-based vesting condition was not yet satisfied as of December 31, 2025 and for which the liquidity-

based vesting condition will be satisfied in connection with this offering, after giving effect to the RSU Net

Settlement;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock issuable upon the vesting and settlement of RSUs subject to

service-based and liquidity-based vesting conditions granted after December 31, 2025, for which the

service-based vesting condition was not yet satisfied as of December 31, 2025 and for which the liquidity-

based vesting condition will be satisfied in connection with this offering, after giving effect to the RSU Net

Settlement;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under our 2026 Incentive

Award Plan (the "2026 Plan"), which will become effective on the business day immediately prior to the

date of effectiveness of the registration statement of which this prospectus forms a part, including

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; new shares and the number of shares (i) that remain available for grant of future awards under our

2016 Equity Incentive Plan (as amended, the "2016 Plan") at the time the 2026 Plan becomes effective,

which shares will cease to be available for issuance under the 2016 Plan at such time and (ii) underlying

outstanding stock-based compensation awards granted under the 2016 Plan (such awards outstanding under

such plans, the "Prior Plan Awards") that expire, or are cancelled, forfeited, reacquired, or withheld; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under our 2026 Employee Stock

Purchase Plan (the "ESPP"), which will become effective on the business day immediately prior to the date

of effectiveness of the registration statement of which this prospectus forms a part.

The 2026 Plan and the ESPP also provide for automatic annual increases in the number of shares reserved

thereunder. See the section titled "Executive and Director Compensation—Equity Compensation Plans" for

additional information.

Except as otherwise indicated, all information in this prospectus assumes or gives effect to:

• the adoption, filing, and effectiveness of our amended and restated certificate of incorporation and the

adoption of our amended and restated bylaws, each of which will occur immediately prior to the completion

of this offering;

• the automatic conversion of all outstanding shares of our redeemable convertible preferred stock into an

aggregate of 113,258,716 shares of our Class A common stock, which will occur prior to the completion of

this offering (the "Preferred Stock Conversion");

• the cash exercise of stock options to purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock in connection

with this offering by certain selling stockholders (the "Option Exercise"), with a weighted-average exercise

price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, for total gross proceeds to us of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , by certain selling

stockholders in connection with the sale of all or a portion of such shares by such selling stockholders in

this offering, as described in the section titled "Principal and Selling Stockholders";

• the net issuance of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the vesting and settlement

of RSUs subject to service-based and liquidity-based vesting conditions outstanding as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026,

for which the service-based vesting condition was satisfied as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 and for which the

liquidity-based vesting condition will be satisfied in connection with this offering, after giving effect to the

withholding of an estimated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares to satisfy estimated tax withholding and remittance

obligations (based on an assumed &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % tax withholding rate) (the "RSU Net Settlement");

• no repurchase of outstanding shares of our capital stock after December 31, 2025;

• no exercise of outstanding stock options or settlement of outstanding RSUs after December 31, 2025,

except for the Option Exercise and the RSU Net Settlement; and

• no exercise of the underwriters' over-allotment option to purchase additional shares from us.

**Summary Consolidated Financial Data**

The following tables set forth our summary consolidated financial data. The summary consolidated statements

of operations data for the year ended December 31, 2024 has been derived from our audited consolidated financial

statements included elsewhere in this prospectus. Our historical results are not necessarily indicative of results that

may be expected in the future.

You should read the following summary consolidated financial data in conjunction with the section titled

"Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated

financial statements and related notes included elsewhere in this prospectus. The summary consolidated financial

data in this section are not intended to replace, and are qualified in their entirety by, the consolidated financial

statements and related notes.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands, except per share** <br>**amounts)** | **(in thousands, except per share** <br>**amounts)** |
| **Consolidated Statement of Operations:** |  |  |
| Revenue...................................................................................................................................................... |  |  |
| Hardware.............................................................................................................................................. | $211965 | $|
| Cloud and other services...................................................................................................................... | 78287 |  |
| Total revenue.............................................................................................................................................. | 290252 |  |
| Cost of sales<sup>(1)</sup>............................................................................................................................................. |  |  |
| Hardware.............................................................................................................................................. | 137310 |  |
| Cloud and other services...................................................................................................................... | 30204 |  |
| Total cost of sales....................................................................................................................................... | 167514 |  |
| Gross profit................................................................................................................................................. | 122738 |  |
| Operating expenses..................................................................................................................................... |  |  |
| Research and development<sup>(1)</sup>................................................................................................................ | 158234 |  |
| Sales and marketing<sup>(1)</sup>........................................................................................................................... | 20980 |  |
| General and administrative<sup>(1)</sup>................................................................................................................ | 44962 |  |
| Total operating expenses............................................................................................................................ | 224176 |  |
| Loss from operations.................................................................................................................................. | (101438) |  |
| Other income (expense), net....................................................................................................................... | (378237) |  |
| Loss before income taxes........................................................................................................................... | (479675) |  |
| Income tax expense.................................................................................................................................... | 1927 |  |
| Net loss....................................................................................................................................................... | $(481602) | $ |
| Net loss per share – basic and diluted<sup>(2)</sup>..................................................................................................... | $(9.90) | $ |
| Weighted average number of common shares outstanding, basic and diluted........................................... | 48972 |  |
| Pro forma net loss per share attributable to common stockholders, basic and diluted<sup>(3)</sup>............................ |  |  |
| Pro forma weighted-average shares used in calculating pro forma net loss per share attributable to <br>common stockholders, basic and diluted<sup>(3)</sup>............................................................................................<br>|  |  |
| **Other Financial Information:** |  |  |
| Non-GAAP operating loss<sup>(4)</sup>....................................................................................................................... | $(42874) | $|
| Non-GAAP net loss<sup>(5)</sup>................................................................................................................................. | $(21774) | $|
| Net cash (used in) provided by operating activities................................................................................... | $451978 | $|

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_______________

(1)Includes stock-based compensation expense as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| Cost of sales............................................................................................................................................................. | $921 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Research and development...................................................................................................................................... | 41397 |  |
| Sales and marketing................................................................................................................................................. | 8723 |  |
| General and administrative...................................................................................................................................... | 7523 |  |
| Total stock-based compensation expense................................................................................................................ | $58564 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

Stock-based compensation expense included $30.7 million and $&nbsp;&nbsp;&nbsp;&nbsp; million for the years ended December 31,

2024 and 2025, respectively, related to secondary transactions in each period and a common stock repurchase

from employees during the year ended December 31, 2025. See Note 14 to our audited consolidated financial

statements included elsewhere in this prospectus for additional details on the secondary transactions.

(2)See Note 7 to our audited consolidated financial statements included elsewhere in this prospectus for an

explanation of the method used to calculate our basic and diluted net loss per share and the weighted-average

number of shares used in the computation of per share amounts.

(3)The pro forma weighted-average shares used in computing pro forma net loss per share gives effect to (i) the

Preferred Stock Conversion, (ii) the Option Exercise, and (iii) the RSU Net Settlement. The pro forma net loss

used to calculate pro forma net loss per share reflects stock-based compensation expense of approximately

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that we will recognize upon the completion of this offering related to RSUs subject to service-based and

liquidity-based vesting conditions for which the service-based vesting condition was satisfied as of

December 31, 2025 and for which the liquidity-based vesting condition will be satisfied in connection with this

offering.

(4)See "Non-GAAP Operating Loss" below for more information and for a reconciliation of Non-GAAP operating

loss to loss from operations, the most directly comparable financial measure calculated and presented in

accordance with U.S. generally accepted accounting principles ("GAAP").

(5)See "Non-GAAP Net Loss" below for more information and for a reconciliation of Non-GAAP net loss to net

loss, the most directly comparable financial measure calculated and presented in accordance with GAAP.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Actual** | **Pro Forma**<sup>(1)</sup> | **Pro Forma** <br>**As Adjusted**<sup>(2)(3)</sup><br>|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Consolidated Balance Sheet Data: |  |  |  |
| Cash and cash equivalents.............................................................. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Working capital<sup>(4)</sup>........................................................................... |  |  |  |
| Total assets..................................................................................... |  |  |  |
| Total liabilities................................................................................ |  |  |  |
| Redeemable convertible preferred stock........................................ |  |  |  |
| Stockholders' deficit...................................................................... |  |  |  |

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_______________

(1)The pro forma column above gives effect to (i) the filing and effectiveness of our amended and restated

certificate of incorporation, which will occur immediately prior to the completion of this offering; (ii) the

Preferred Stock Conversion; (iii) the Option Exercise; (iv) the RSU Net Settlement; (v) the increase in accrued

expenses and other current liabilities and an equivalent decrease in additional paid-in capital of $&nbsp;&nbsp;&nbsp;&nbsp; in

connection with the estimated tax withholding and remittance obligations related to the RSU Net Settlement;

and (vi) stock-based compensation expense of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that we will recognize upon the completion

of this offering related to RSUs subject to service-based and liquidity-based vesting conditions for which the

service-based vesting condition was satisfied as of December 31, 2025 and for which the liquidity-based vesting

condition will be satisfied in connection with this offering.

(2)The pro forma as adjusted column above gives further effect to (i) the pro forma adjustments set forth above;

(ii) the issuance and sale of &nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock by us in this offering at an assumed initial

public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on the cover

page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated

offering expenses payable by us; (iii) the receipt by us of gross proceeds of approximately $&nbsp;&nbsp;&nbsp;&nbsp; in connection

with the Option Exercise; and (iv) the use of a portion of the net proceeds from this offering to satisfy the

estimated tax withholding and remittance obligations related to the RSU Net Settlement.

(3)Each $1.00 increase or decrease in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the

midpoint of the estimated price range set forth on the cover page of this prospectus, would increase or decrease,

as applicable, each of cash and cash equivalents, working capital, total assets, and stockholders' deficit by $&nbsp;&nbsp;&nbsp;&nbsp; ,

assuming that the number of shares of Class A common stock offered by us, as set forth on the cover page of

this prospectus, remains the same, and after deducting estimated underwriting discounts and commissions and

estimated offering expenses payable by us. Similarly, each increase or decrease of 1.0 million shares in the

number of shares of Class A common stock offered by us would increase or decrease, as applicable, each of

cash and cash equivalents, working capital, total assets, and stockholders' deficit by $&nbsp;&nbsp;&nbsp;&nbsp;, assuming the assumed

initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share remains the same, and after deducting estimated underwriting

discounts and commissions and estimated offering expenses payable by us. In addition, each 1.0% increase or

decrease in the assumed tax withholding rate would increase or decrease, as applicable, the amount of estimated

tax withholding and remittance obligations related to the RSU Net Settlement by $&nbsp;&nbsp;&nbsp;&nbsp;. Pro forma adjustments in

the footnotes above and the related information in the consolidated balance sheet data are illustrative only and

will be adjusted based on the actual initial public offering price and other terms of this offering determined at

pricing, the actual tax withholding rate, as well as the actual amount of RSUs settled in connection with this

offering (including after accounting for forfeitures prior to the settlement date).

(4)Working capital is defined as total current assets less total current liabilities. See our unaudited interim

consolidated financial statements and the related notes thereto included elsewhere in this prospectus for further

details regarding our current assets and current liabilities.

**Non-GAAP Financial Measures**

We use certain non-GAAP financial measures to supplement the performance measures in our consolidated

financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include

non-GAAP operating loss and non-GAAP net loss. We use these non-GAAP financial measures for financial and

operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding

certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP operating

loss and non-GAAP net loss provide meaningful supplemental information regarding our performance. Accordingly,

we believe these non-GAAP financial measures are useful to investors and others because they allow for additional

information with respect to financial measures used by management in its financial and operational decision-making

and they may be used by our institutional investors and the analyst community to help them analyze the health of our

business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these

non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial

results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate

these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative

measures.

***Non-GAAP Operating Loss***

We define non-GAAP operating loss as operating loss presented in accordance with GAAP, adjusted to exclude

stock-based compensation expenses. We have presented non-GAAP operating loss because we consider non-GAAP

operating loss to be a useful metric for investors and other users of our financial information in evaluating our

operating performance because it excludes the impact of stock-based compensation, a non-cash charge that can vary

from period to period as such variations are unrelated to our core operating performance. This metric also provides

investors and other users of our financial information with an additional tool to compare business performance

across companies and periods, while eliminating the effects of items that may vary for different companies for

reasons unrelated to core operating performance.

A reconciliation of our GAAP operating loss, the most directly comparable GAAP financial measure, to non-

GAAP operating loss is presented below:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| GAAP operating loss................................................................................................. | $(101438) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Add: Stock-based compensation expense.................................................................. | 58564 |  |
| Non-GAAP operating loss......................................................................................... | $(42874) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

***Non-GAAP Net Loss***

We monitor non-GAAP net loss for planning and performance measurement purposes. We define non-GAAP

net loss as net loss reported on our consolidated statements of operations, excluding the impact of stock-based

compensation expenses and change in fair value of forward contract liability. We have presented non-GAAP net loss

because we believe that the exclusion of these charges allows for a more relevant comparison of our results of

operations to other companies in our industry and facilitates period-to-period comparisons as it eliminates the effect

of certain factors unrelated to our overall operating performance. Our calculation of non-GAAP net loss does not

currently include the tax effects of the stock-based compensation expense adjustment because such tax effects have

not been material to date.

A reconciliation of our GAAP net loss, the most directly comparable GAAP financial measure, to our non-

GAAP net loss is presented below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| GAAP net loss........................................................................................................... | $(481602) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Add: Stock-based compensation expense<sup>(1)</sup>............................................................... | 58564 |  |
| Add: Change in fair value of forward contract liability............................................ | 401264 |  |
| Non-GAAP net loss................................................................................................... | $(21774) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

_______________

(1)Non-GAAP net loss does not include the tax effects of the stock-based compensation expense adjustment

because such tax effects were not material during the periods presented.

**RISK FACTORS**

*Investing in our Class A common stock involves a high degree of risk. You should carefully consider the risks*

*described below as well as the other information in this prospectus, including our consolidated financial statements*

*and the notes thereto, and the section titled "Management's Discussion and Analysis of Financial Condition and*

*Results of Operations," before deciding whether to invest in our Class A common stock. The occurrence of any of*

*the events or developments described below may harm our business, financial condition, results of operations, and*

*prospects. In such an event, the price of our Class A common stock could decline, and you may lose all or part of*

*your investment. Additional risks and uncertainties not presently known to us or that we currently believe are not*

*material may also harm our business, financial condition, results of operations, and prospects.*

**Risks Related to Our Business and Our Industry**

***We may not sustain our growth rate, and we may not be able to manage future growth effectively.***

We have experienced significant growth in a short period of time. Our revenue increased from $290.3 million

for the year ended December 31, 2024 to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2025. We do not expect

to achieve similar growth rates in future periods. You should not rely on our results of operations for any prior

quarterly or annual periods as an indication of our future operating performance. If we are unable to maintain

adequate revenue growth, our financial results could suffer, and our stock price could decline.

To manage our growth successfully and handle the responsibilities of being a public company, we believe we

must effectively, among other things:

• recruit, hire, train, and manage additional qualified personnel for our engineering, operations,

manufacturing, cloud, and data center activities;

• continue to make significant investments in our new and existing products;

• invest in long-term research and development to remain at the forefront of innovation;

• improve and scale our sales and marketing functions; and

• improve and scale our administrative, financial, legal and compliance, and operational systems, procedures,

and controls.

Our future growth is dependent on our ability to meet the needs of new customers and the expanding needs of

our existing customers as their use of our solutions and services grows. As sales of our offerings grow, we will need

to devote additional resources to expanding, improving, and maintaining our infrastructure, including our hardware,

software, cybersecurity, and cloud infrastructure, and integrating with third-party applications and partner platforms

and marketplaces. In addition, we will need to appropriately scale our internal business systems and our services

organization, including customer support, to serve our growing customer base, and to improve our IT and financial

infrastructure, operating and administrative systems, and our ability to effectively manage headcount, capital, and

processes, including by reducing costs and inefficiencies. Any failure of, or delay in, these efforts could result in

impaired system performance and reduced customer satisfaction, which would negatively impact our revenue

growth and our reputation. We may not be successful in developing or implementing these technologies. In addition,

it takes a significant amount of time and capital to plan, develop, and test improvements to our technologies and

infrastructure, and we may not be able to accurately forecast demand or predict the results we will realize from such

improvements. In some circumstances, we may also choose to scale our technology through the acquisition of

complementary businesses and technologies rather than through internal development, which may divert

management's time and resources. To the extent that we do not effectively scale our operations to meet the needs of

our growing customer base and to maintain performance as our customers expand their use of our offerings, we will

not be able to grow as quickly as we anticipate, our customers may reduce or terminate use of our solutions, our

potential customers may seek more readily available alternatives, and we will be unable to compete as effectively,

and our business, financial condition, results of operations, and prospects may be harmed.

If we are unable to manage our growth effectively, we may not be able to take advantage of market

opportunities or develop new products, and we may fail to satisfy customer requirements, maintain product quality,

execute our business plan, or respond to competitive pressures, which may harm our business, financial condition,

results of operations, and prospects.

***We have a history of generating net losses, and if we are unable to achieve adequate revenue growth while our***

***expenses increase, we may not achieve and maintain profitability in the future.***

We have a history of generating net losses. We incurred net losses of $481.6 million and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the

years ended December 31, 2024 and 2025, respectively. As of December 31, 2025, we had an accumulated deficit of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million. These losses and our accumulated deficit are a result of the substantial investments we have made to

grow our business. We expect our costs will increase over time and our losses may continue if such increases in

costs are not more than fully offset by increases in our revenue. We expect to continue to invest significant

additional funds in expanding our business and research and development activities as we continue to develop new

products. We launched our cloud-based inference offering in 2024, which required new investments in cloud

infrastructure and data center capacity that we historically did not need for hardware system sales. We expect to

significantly increase our investments in cloud infrastructure and data centers to enable growth in our inference

service. We also expect to incur additional general and administrative expenses as a result of our growth and expect

our costs to increase to support our operations as a public company.

If our revenue or revenue growth rate declines or our operating expenses exceed our expectations, our financial

performance will be adversely affected. We will need to generate and sustain increased revenue levels in future

periods in order to achieve and maintain profitability. If we cannot successfully grow our revenue at a rate that

exceeds the costs associated with our business, we will not be able to achieve and maintain profitability, and the

trading price of our Class A common stock could decline.

***We have a limited operating history at our current scale, and we may have difficulty evaluating our current***

***business and accurately predicting our future revenue for the purpose of appropriately budgeting and adjusting***

***our expenses.***

We have a relatively short history operating our business at our current scale and have grown rapidly during that

time. We were established in 2016 and began generating revenue in 2019. Prior to 2023, we had limited revenue.

Our limited operating experience at our current scale, a dynamic and rapidly evolving market in which we sell our

products, our dependence on a limited number of customers, our limited history building and selling access to our

cloud-based platform, the timing of large hardware systems sales, as well as numerous other factors beyond our

control, could impede our ability to forecast quarterly and annual revenue accurately and may make it difficult to

evaluate our current business, prospects, and other trends. We have encountered, and will continue to encounter,

risks and uncertainties frequently experienced by growing companies in rapidly changing industries and sectors,

such as the risks and uncertainties described herein. Any predictions about our future financial performance may not

be as accurate as they would be if we had a longer operating history or operated in a more predictable or established

market. As a result, we could experience budgeting and cash flow management problems, unexpected fluctuations in

our results of operations, and other challenges, any of which could make it difficult for us to achieve and maintain

profitability and could increase the volatility of the price of our Class A common stock. If our assumptions regarding

these risks and uncertainties are incorrect or change due to fluctuations in our markets, any material reduction in AI

spending, changes in applicable regulatory frameworks, changes in demand for specialized AI cloud infrastructure

and custom AI accelerators, or otherwise, or if we do not address these risks successfully, our financial condition

and results of operations could differ significantly from our expectations and our business, financial condition,

results of operations, and prospects would be adversely affected. We cannot ensure that we will be successful in

addressing these and other challenges we may face in the future. The risks associated with having a limited

operating history may be exacerbated by current macroeconomic and geopolitical conditions discussed herein.

***A substantial portion of our revenue is driven by a limited number of customers. A reduction in demand from, or***

***a material adverse development in our relationship with any of our significant customers, including G42 and***

***MBZUAI, may harm our business, financial condition, results of operations, and prospects.***

A substantial portion of our revenue is driven by a limited number of customers. Group 42 Holding Ltd

(together with its affiliates, "G42") accounted for 85.0% and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our total revenue for the years ended

December 31, 2024 and 2025, respectively, and in the year ended December 31, 2025, Mohamed bin Zayed

University of Artificial Intelligence ("MBZUAI") accounted for &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our total revenue. Our dependence on

our relationships with G42 and MBZUAI subjects us to a number of risks. Any negative changes in the demand

from G42 or MBZUAI, in their ability or willingness to perform under their contracts with us, in laws or regulations

applicable to G42 or MBZUAI, or the United Arab Emirates, or in our broader strategic relationship with G42 or

MBZUAI would harm our business, financial condition, results of operations, and prospects. Even if G42 and

MBZUAI remain satisfied with our offerings, it is possible that they will no longer need to purchase additional AI

compute or services at the same quantity as prior periods, or that their ability to purchase our offerings may change

for reasons outside of their control. G42 or MBZUAI may also choose to purchase more of their AI compute from

our competitors.

Further, as of December 31, 2024, one customer (G42) accounted for 91% of our accounts receivable balance.

This customer concentration increases the risk of quarterly fluctuations in our results of operations and our

sensitivity to any material adverse developments experienced by, or in our relationships with, our significant

customers. The loss of, any substantial reduction in sales to, or the default on payments by, any of our significant

customers would harm our business, financial condition, results of operations, and prospects.

***Our revenue historically has been derived from sales of our hardware systems. We are in the early stages of***

***delivering our cloud-based offerings, the market for which is new and evolving rapidly, and which requires***

***significant capital investments for which we expect to require additional capital. There is no assurance that we***

***will be able to sustain or increase revenue from these efforts.***

Our revenue historically has been derived from sales of our hardware systems. In August 2024, we introduced

our inference cloud service. We are only in the early stages of monetizing our cloud-based offerings, and we may

not be able to grow these efforts into a sustainable part of our business. Additionally, we may not realize all of the

benefits from our cloud-based offerings that we expect to achieve, or it may be more costly to do so than we

anticipate, including as a result of substantial costs associated with data center and cloud infrastructure. We have

encountered, and will continue to encounter, challenges in compute capacity planning and allocation, as well as

accurate financial planning and forecasting with the changing mix of offerings in our business model. For example,

many customers or prospective customers of this offering are early-stage startups, with capital intensive needs, that

may not succeed. In addition, the difference in contract length for our data centers, which are longer term with

limited ability to terminate, versus our inference customer agreements, which are typically a mix of consumption-

based pricing or shorter term dedicated capacity arrangements, creates further unpredictability in our results of

operations. In addition, our cloud-based agreements may be terminated, not renewed, or renewed on less favorable

terms, necessitating us to resell the idle capacity on an expedited basis. This may cause our results of operations to

fluctuate from quarter to quarter, which makes them difficult to predict.

We intend to continue to invest significantly in infrastructure as well as sales and marketing efforts related to

our cloud-based offerings. This investment requires significant capital expenditures, which would impact cash flows

from operations and gross margins in certain periods, and may not ultimately grow our business or result in long-

term profitability. We expect to require additional capital to fund our cloud offerings and support our growth.

Additional financing may not be available on terms favorable to us, if at all. While we have historically been able to

fund capital expenditures from cash generated from operations, prepayments from certain customers, and equity

financings, many factors could materially reduce the cash available from our operations, impede our ability to raise

additional capital, or significantly increase our capital expenditure requirements, which may result in the inability to

fund the necessary or desired level of capital expenditures. This could adversely affect our business, financial

condition, results of operations, and prospects. If we raise additional funds through equity or convertible debt

issuances, our existing stockholders may suffer significant dilution and these securities could have rights,

preferences, and privileges that are superior to those of holders of our Class A common stock. If we obtain

additional funds through debt financing, we may not be able to obtain such financing on terms favorable to us.

Further, the current global macroeconomic environment and other factors discussed herein could make it more

difficult to raise additional capital on favorable terms, if at all. Such terms may involve restrictive covenants making

it difficult to engage in capital raising activities and pursue business opportunities, including potential acquisitions.

If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability

to continue to support our business growth and to respond to business challenges could be significantly impaired and

our business may be adversely affected, requiring us to delay, reduce, or eliminate some or all of our operations.

***Our cloud-based offerings are subject to certain risks and challenges. Unfavorable or uncertain conditions in the***

***training or inference cloud market, as well as for AI infrastructures, may cause fluctuations in our results of***

***operations.***

Our offerings include a cloud-based platform, where customers can purchase our AI computing solutions on a

consumption-based or dedicated capacity model. This business model is intended to allow customers to choose the

solution that best aligns with their budgetary, security, and scalability requirements. The risks and challenges of a

cloud-based business model may be different from selling our products for on-premises use. For instance, building

and scaling a cloud-based platform requires us to make significant capital expenditures to manufacture more

hardware systems and to lease data centers with sufficient power and cooling infrastructures and to maintain

sufficient units on hand, which may require resources to be reallocated from producing units that could otherwise be

sold to customers for on-premises use. In order to support a cloud-based business model, we may also incur

additional IT and personnel costs to service and manage our clusters, including managing and optimizing capacity

allocations and utilization rates, as well as rely on third-party infrastructure, such as Amazon Web Services for

certain data transmission needs. The success of our cloud-based offering may further be impacted by our ability to

obtain or maintain industry security certifications for our platform and, with respect to public sector customers, our

ability to navigate factors such as budget cycles, procurement rules, eligibility criteria, and domestic preference

rules. There is no assurance that investments in our cloud-based platform will lead to increased revenue as compared

to other business models. In addition, we introduced our cloud-based inference offering in 2024. Such product

presents new and additional risks to us, including substantially increasing the number of users accessing our cloud,

which may increase cybersecurity and compliance risk as well as risk of outages due to overcapacity or otherwise.

Additionally, if domestic and global economic conditions worsen, or adoption, use, and commercialization of

AI technology, particularly of the large models that are currently dominating the market, do not progress as

expected, overall spending may be reduced, which could adversely impact demand for our solutions in these cloud

and AI infrastructure markets and we may not realize our expected growth rates. Furthermore, changes to data

privacy laws regarding cross-border transmission of data, as well as customers' data residency and data sovereignty

expectations, may disproportionately impact cloud-based platforms. In such cases, we may be left with excess units

in our clouds and data center leases and costs that we cannot terminate or recoup. Even if the demand for cloud and

AI-related infrastructure develops in the manner or in the time periods we anticipate, if we do not have timely,

competitively priced, market-accepted solutions or personnel available to timely meet our customers' needs, we may

miss a significant opportunity and our business, financial condition, results of operations, and prospects may be

harmed.

***If our data center providers fail to meet the requirements of our business, or if the data center facilities***

***experience interruption, damage, or a security breach, our ability to provide access to our infrastructure and***

***maintain the performance of our network could be negatively impacted.***

We lease space in or otherwise license use of third-party data centers located in the United States and Canada,

and are in the process of expanding to other countries. Our business is reliant on these data center facilities. Because

we lease or license use of this data center space, we do not control the operation of these third-party facilities.

Consequently, we could be subject to service disruptions as well as failures to provide adequate support for reasons

that are outside of our direct control. Our data center facilities and network infrastructure are vulnerable to damage

or interruption from a variety of sources including earthquakes, floods, fires, power loss, environmental factors, such

as air and water temperature, humidity, and dust, system failures, computer and other cybersecurity vulnerabilities,

physical or electronic break-ins, human error, malfeasance or interference, including by employees, former

employees, or contractors, as well terrorist acts and other catastrophic events.

We and the data center facilities we lease space in or license use of have experienced, and may in the future

experience, disruptions, outages, and other performance problems due to a variety of factors, including availability

or sufficiency of power, infrastructure changes, environmental factors, and capacity constraints, occasionally due to

an overwhelming number of customers accessing our infrastructure simultaneously. Our third-party data centers and

network infrastructure may also be subject to cybersecurity attacks, including supply chain attacks, due to the

actions of outside parties or human error, malfeasance, insider threats, system errors or vulnerabilities, insufficient

cybersecurity controls, a combination of these, or otherwise, which may cause service outages and otherwise impact

our ability to provide our solutions and services. While we review the security measures of our third-party data

centers, we cannot ensure that these measures will be sufficient to prevent a cybersecurity attack or to protect the

continued operation of our platform in the event of a cybersecurity attack, and any impact to our solutions and

services may also impact our business, financial condition, results of operations, and prospects.

Data center facilities housing our network infrastructure may also be subject to local administrative actions,

changes to legal or permitting requirements, labor disputes, litigation to stop, limit, or delay operations, and other

legal challenges, including local government agencies seeking to gain access to customer accounts for law

enforcement or other reasons. The imposition of tariffs, regulatory requirements, and increased focus on data

sovereignty and data localization requirements around the world could also impact our business model with respect

to the storage, management, and transfer of data, and may impact where we choose to lease data centers, which can

affect our opportunities for international expansion. Additionally, government authorities have in the past sought to

restrict data center development based on environmental considerations and have imposed moratoria on data center

development, citing concerns about energy usage, requiring new data centers to meet energy efficiency

requirements. We may face higher costs from any laws requiring enhanced energy efficiency measures, changes to

cooling systems, caps on energy usage, land use restrictions, limitations on back-up power sources, or other

environmental requirements. Because data center agreements tend to have long terms and high upfront costs, any

changes in regulations, government actions, customer preferences, or otherwise that occur after an investment is

made into a data center could cause significant financial loss. In addition, while we have entered into various

agreements for the lease of data center space, equipment, maintenance, and other services, those third parties could

fail to deliver on their contractual obligations under those agreements, including agreements to provide us with

certain data, equipment, and utilities information required to run our business. Furthermore, we require the data

centers we lease to have certain highly specific attributes in order to effectively run our business. For example, these

state-of-the art data centers require networking equipment, high-speed interconnects, enhanced access to power, and

liquid cooling infrastructures. In many cases, these third-party data centers are required to undergo extensive

retrofitting and improvement efforts, including to incorporate novel developments in our industry, which are time

consuming, expensive, and less efficient than if we were to lease from spaces already designed for our operations,

and which may not ultimately be successful in meeting all of our requirements. If third parties fail to successfully

deliver on such performance requirements, our ability to maintain the performance of our network would be

negatively impacted. In addition, if data center operators are delayed in making the facilities available to us, we may

not be able to fulfill our customer contractual obligations in a timely manner, causing us financial and reputational

harm.

Other factors, many of which are beyond our control, that can affect the delivery, performance, and availability

of our platform include:

• the development, maintenance, and functioning of the infrastructure of the internet as a whole;

• the performance and availability of third-party telecommunications services with the necessary speed, data

capacity, and security for providing reliable internet access and services;

• the success or failure of our redundancy systems;

• the success or failure of our disaster recovery and business continuity plans;

• decisions by the owners and operators of the data center facilities where our infrastructure is installed or by

global telecommunications service provider partners who provide us with network bandwidth to terminate

our contracts, discontinue services to us, shut down operations or facilities, increase prices, change service

levels, limit bandwidth, declare bankruptcy, breach their contracts with us, or prioritize the traffic of other

parties;

• our ability to enter into data center agreements and leases according to our business needs and on terms and

with counterparties acceptable to us;

• changing regulations and customer preferences with respect to data privacy, sovereignty and localization;

and

• changing sentiment by government regulators relating to data center development, including in response to

public concerns regarding environmental impact and development and power costs, which may result in

restrictive government regulation or otherwise impact the future construction of additional data centers.

In addition, most of our customer agreements and terms of service contain service-level commitments and

capacity ramp schedules. If we are unable to meet the stated service-level commitments or capacity ramp schedules

due to data center downtime, performance problems, or defects, we may be contractually obligated to provide the

affected customers with service credits or refunds, or be subject to breach of contract damages, which could

significantly affect our results of operations in the periods in which any issues occur and the credits or refunds are

applied or when damages are awarded. As a result of degradation of service and interruptions to our platform, we

have provided, and may continue to provide, service credits and/or refunds to certain of our affected customers. We

could also face customer terminations with refunds of prepaid amounts, which could significantly affect our results

of operations. Any service-level failures could harm our business.

The occurrence of any of these factors, or our inability to efficiently and cost-effectively fix such errors or other

problems that may be identified, could damage our reputation, negatively impact our relationship with our

customers, or otherwise materially harm our business, financial condition, results of operations, and prospects.

***If we are unable to secure data center capacity at affordable rates, including the cost of power, or do not***

***accurately plan for and manage our infrastructure capacity requirements, our business, financial condition,***

***results of operations, and prospects may be harmed.***

We plan investment levels for our cloud-based offerings based on estimates of future customer demand and

future anticipated rates of growth. In recent periods, our cloud services and license support expenses have grown to

meet current and expected demand for our inference solutions, including investments to increase our data center

capacity and to establish data centers in new geographic locations. In connection with these investments, we entered,

and expect to continue to enter, into long-term lease commitments with third-party data center providers and other

significant commitments with suppliers, including investments in scaling up our contract manufacturers. If we

underestimate customer demand or our data center capacity needs, we may face shortages of available infrastructure,

limiting our ability to support customer growth and potentially causing us to lose business to competitors.

Conversely, if we overestimate customer demand or our data center capacity needs, we could be locked into multi-

year commitments for excess data center space, or be required to pay significant contract termination fees to early

exit such obligations. In contrast to the long-term data center commitments, our customer agreements for cloud-

based offerings have shorter terms, which makes it more difficult to forecast customer demand. Further, the

volatility of the industry we operate in makes it difficult for us and our customers to accurately forecast needs. Data

centers in geographies that we desire may also be unavailable on commercially reasonable terms or at all. Moreover,

we do not own, or have complete control over the operations of, these data centers, and they may suffer interruptions

in service from events beyond our control, including from acts of government, natural events, power loss,

environmental issues, human error, malfeasance or interference by third parties. The global energy market is also

experiencing inflation and volatility pressures, with various macroeconomic and geopolitical factors contributing to

the instability and global power shortage. Furthermore the cost of power to run these data centers is a significant

portion of the overall operating expenses. We have faced, and may continue to face, rising costs for data center

energy demands. If we cannot procure power at reasonable prices or if our supply of power becomes constrained,

our business, financial condition, results of operation, and prospects will be harmed.

In addition, we rely on third-party suppliers to provide equipment and components required to outfit these data

centers on a timely basis. Ongoing or future delays or the inability to meet customer demand could cause the loss of

additional sales, delay our revenue recognition, or increase our costs, all of which could adversely affect the margins

of our business. We typically depreciate these assets over their estimated useful lives, which could be shortened

should our inference solutions and related strategy change, which could harm our business, financial condition,

results of operations, and prospects.

We may develop our own data centers in the future, rather than relying on third parties, which may result in

additional difficulties. For example, any potential expansion of our data center infrastructure would be complex, and

unanticipated delays in the completion of those projects, including permitting, land and construction issues, and

availability of components may lead to increased project costs, operational inefficiencies, or interruptions in the

delivery or degradation of the quality of our platform. In addition, there may be issues related to this infrastructure

that are not identified during the testing phases of design and implementation, which may only become evident after

we have started to fully utilize the underlying equipment, that could further degrade our platform or increase our

costs. We would also have to invest in expertise in large scale infrastructure projects and hire appropriate talent that

are different from our current employee base.

***The market for AI computing solutions is competitive, evolving, and requires scale, and if we do not compete***

***effectively, our business, financial condition, results of operations, and prospects may be harmed.***

The market for AI computing solutions is highly competitive and evolving. New technologies and solutions are

rapidly emerging in the markets in which we compete. With respect to hardware, we compete against semiconductor

companies such as NVIDIA Corporation, a dominant market leader, Advanced Micro Devices, Inc., Intel

Corporation, as well as AI accelerators developed by hyperscalers and private companies. We also compete against

full-service cloud service providers such as Amazon.com, Inc. (AWS), Microsoft Corporation (Azure), Alphabet

Inc. (Google Cloud Platform), and Oracle Corporation, as well as AI-optimized specialized clouds such as

CoreWeave, Inc. and other neo-clouds. Certain of our competitors are also current or prospective customers. Many

of these companies are large, well established, and have greater financial resources than we do. In addition, many

companies, including potential customers such as but not limited to hyperscalers and foundation model builders,

have developed or are developing their own AI computing solutions based on current or new technologies, and are

using such solutions internally and monetizing them with external customers, in both instances in ways that compete

with our product and service offerings. Many of our current and potential competitors benefit from competitive

advantages over us, such as prominent and cutting-edge technology and software stacks designed to keep out new

market entrants, greater name recognition, established developer communities, established engineering teams with

key industry knowledge, longer operating histories, greater financial assets, greater ability to scale up and down with

customer demand, more data center capacity and ability to purchase land to build larger and more custom data

centers with lower cost of power, more varied product offerings, larger sales and marketing resources, more

established relationships, including relationships and investments among AI ecosystem participants, wider

geographic presence or larger, more established customer bases, more comprehensive and mature intellectual

property portfolios and patent protections, a more robust supply chain, including favorable contracts with suppliers

and ability to influence or fully capture our key suppliers, and other resources. These competitors may also be able

to more effectively identify and capitalize upon opportunities in new markets and customer trends, be better able to

secure suppliers or may have priority access to suppliers, and obtain sufficient research and development operations,

design, manufacturing, and fabrication solutions, foundry and assembly and test capacity than we can, which may

harm our business. Competitors with greater financial resources may be able to offer lower prices than us, or they

may offer additional products, services, or other incentives that we may be unable to match. Additionally, while we

compete against many parties, we also operate in a market with a dominant incumbent. This introduces a number of

competitive pressures, including that it is more challenging to gain market awareness of our products, or gain market

share. Additionally, a dominant incumbent has the ability to influence the direction of the market and user

community in ways that are advantageous to them. In such cases, we have less visibility to be able to accurately

predict the direction of the market, and such direction may not be consistent with our strengths and roadmap. If we

cannot influence the AI community to engage with our offerings instead, or if we are unable to compete effectively,

or are unable to convert new customers, our business, financial condition, results of operations, and prospects may

be harmed.

Additionally, customer expectations and requirements are rapidly evolving. As a result, some of our competitors

may be better situated to meet changing customer needs and secure design wins. For example, our software offering

is currently optimized around certain AI models, such as LLMs and multimodal vision models. Should AI model

architectures significantly change, it may take us time to build out the software support, and we may lose potential

or current customers and developers in the interim.

While we believe that our current processor design and associated software are optimized for a variety of AI and

high-performance computing workloads, including our ability to continue to scale performance through investments

in our current architectures, disruptive technologies in compute, including "more than Moore" technologies and

innovations, have the potential to severely disrupt current computer processing technologies, including ours. While

we continue to invest in advanced system and semiconductor techniques, and related software development, we may

not be able to adapt our technologies, intellectual property, and expertise to such new paradigms, while our

established competitors and new entrants specializing in such technologies may. If we are unable to innovate,

participate in, and leverage such new fields, or if our solutions are not compatible with other AI solutions, our

solutions may become obsolete, we may lose market share and customers, and our business, financial condition,

results of operations, and prospects may be harmed.

Further, we sell a premium solution, and our competitors' solutions may be less expensive to purchase by

certain measures, which may limit the number of customers who can or will buy our product. While the market in

which we operate is evolving rapidly, as it matures, AI computing solutions may become increasingly

commoditized, where many different solutions become sufficient for customer requirements. Factors that may

contribute to commoditization include advances in AI compute, advances in or simplifications of AI model

architectures that require less sophisticated compute, and consumer preferences, which alone or in combination with

other factors may lead to price erosion. If we are unable to establish and maintain a competitive lead that supports

premium pricing or offset price reductions with increased sales, our business, financial condition, results of

operations, and prospects may be harmed.

We may also experience discriminatory or anti-competitive practices by our competitors that may impede our

growth, cause us to incur additional expense, or otherwise harm our business. For example, some of these

competitors may use their market power to dissuade potential or current customers from purchasing from us or

potential or current suppliers from working with us. Our competitors may also establish cooperative relationships

among themselves or with third parties or may acquire companies that provide similar products or services as ours,

that further their ability to create a closed ecosystem, or to acquire talent. We expect this trend to continue as

companies attempt to improve the leverage of growing research and development costs, strengthen or hold their

market positions in an evolving industry, or are unable to continue operations. Certain of our competitors have

active merger and acquisition pipelines and are well-funded to inorganically accelerate their product development. In

addition, companies that are strategic partners, vendors, or customers may acquire or form alliances with our

competitors, thereby reducing their business with us. We believe that industry consolidation has and may continue to

result in stronger competitors that are better able to compete as sole-source vendors for customers. There can be no

assurance that we will not be forced to engage in price-cutting or margin limiting initiatives, or to increase our

advertising and other expenses to attract and retain customers in response to competitive pressures. Any of these

factors, alone or in combination with others, may harm our business, financial condition, results of operations, and

prospects, and result in a loss of market share and an increase in pricing pressure.

***The broader adoption, use, and commercialization of AI technology, and the continued rapid pace of***

***developments in the AI field, are inherently uncertain. If we are unable to expand the application of our***

***offerings, keep up with evolving AI technology requirements, or if new offerings we develop and introduce into***

***the market are not successful, our business, financial condition, results of operations, and prospects may be***

***harmed.***

Our success depends on our ability to attract new customers and users to our offerings, which in turn depends

on the competitiveness and desirability of our offerings. AI has been developing at a rapid pace, and continues to

evolve and change. As demand continues for AI services, AI providers, including our customers, have sought

increased compute capacity to enable advancements in their AI models and service the demands of end users. We

expect competition to increase from both existing competitors and new market entrants with products or services

that may be lower priced than ours, may be better optimized than our offerings for emerging technologies, or may

provide better performance or additional features not provided by our products or services. Additionally, prospective

or existing customers may influence our product roadmap by requiring features optimal for their particular use case.

If we are unable to adapt to meet customers' requirements, they may use competitive offerings or internal solutions

that eliminate reliance on third-party providers. Moreover, prioritizing development of such features may require

significant engineering resources and may not be compatible with the requirements of other customers, which could

impact overall adoption of our platform.

In addition to releasing next generation versions of existing products, our business strategy may involve

introducing new offerings to the market, which are subject to different risks and uncertainties. There can be no

assurance that such new offerings will be broadly accepted. For instance, we released our inference solution in 2024,

and if we fail to win broad customer adoption, we will be unable to participate in a significant segment of the AI

market. Our customers, in particular for our cloud-based offerings, may also not be able to accurately forecast their

AI compute needs. Accordingly, we may not be able to enter into long-term contracts or even if we do, we may be

asked by customers to revise contracts later if their circumstances change. If contracts are terminated, breached, or

not renewed, we may have large quantities of idle systems in our cloud, that take time to resell. In addition, if market

demand for high speed inference, including for real-time, agent-based, or other similar applications, does not exist or

increase as expected, our inference solution may not be successful. The competitive landscape, customer

preferences, market pressures, and technical and product challenges for new products or services may be different

from our existing offerings. We can provide no assurance that new product offerings will achieve success on a

timely basis, or at all. Evolving legal and regulatory landscape may also influence customer preferences. For

example, prospective customers may favor closed-source AI model providers who provide indemnification against

copyright infringement claims as compared to open source AI models, and such biases may change as the current

cohort of AI copyright infringement litigation proceed through the courts. If our solutions do not allow us or our

customers to comply with the latest regulatory requirements, sales of our solutions and services to existing

customers may decrease and new customers will be less likely to adopt our offerings.

Many of our competitors use different semiconductor compute architectures, platforms, tools, and technology

stacks from ours in their products and services, including some, like GPUs, that are dominant in the industry. AI

model developers have and may continue to design and optimize AI models for such incumbent technologies rather

than our solutions. The complexity and expense associated with our offerings generally require a lengthy customer

education, evaluation, and approval process. Consequently, we may incur substantial expenses and devote

significant management effort and expense to develop potential relationships that do not result in agreements or

revenue and may prevent us from pursuing other opportunities. Potential customers may also be unwilling or unable

to convert from legacy AI solutions to our solution, and we may be unable to attract new customers. If new

technologies emerge that limit or eliminate reliance on AI cloud platform providers like us, or that enable our

competitors to deliver competitive services at lower prices, more efficiently, more conveniently, or more securely,

such technologies could adversely impact our ability to compete. Current customers may further be dissatisfied or

stop purchasing our offerings if our products or services are not compatible with or able to be used in combination

with other AI solutions, including those of our competitors.

In addition, our hardware systems require data centers with sufficient power, equipment, and cooling

infrastructures, which may not be readily available to us or our customers. In the case of our cloud-based offerings,

customers may require our data centers to be located in certain jurisdictions for regulatory and performance reasons,

which sites may not be readily available. This may cause customers to delay purchases or delay acceptance of

delivery of previously purchased goods, which may harm our financial condition and results of operations, including

timing of revenue recognition.

Currently, our AI computing solution is focused on accelerating training and inference for GenAI model

architectures, including LLMs and multimodal vision models. Part of our success will depend on our ability to

expand the application of our solution to other areas of use, such as image and video generation models, robotics

models, and world models, and new AI application areas yet to be discovered, as well as new or expanded verticals.

If we are unable to service and capture such use cases, we may lose market share and not be able to grow our

business.

Our offerings must also integrate with a variety of network, hardware, storage, infrastructure, and software

technologies, such as physical integrations at the data centers and API integrations with customer products, and we

need to continuously modify and enhance the capabilities of our offerings to adapt to changes and innovation in

these technologies. If our customers widely adopt new technologies or change their product offerings, we may need

to redesign parts of our offerings to work with those new technologies. These development efforts may require

significant engineering, marketing, and sales resources, all of which would affect our business, financial condition,

results of operations, and prospects. Any failure of our infrastructure's capabilities to operate effectively with future

technologies and software platforms could reduce the demand for our offerings. If we are unable to respond to these

changes in a cost-effective and timely manner, our offerings may become less marketable and less competitive or

obsolete, and our business may be harmed.

If our offerings are not widely adopted, or if we are unable to successfully develop and deploy additional go-to-

market methods or expand the functional areas in which our offerings compete, our business, financial condition,

results of operations, and prospects may be harmed, and we will be unable to grow our business.

***We depend on third-party suppliers, including certain sole sources, and substantially all of our manufacturing***

***services and components are procured on a purchase order basis without capacity or volume commitments, which***

***may harm our ability to compete, meet customer demand, satisfy customer contracts or bring products to market,***

***and our reputation, business, financial condition, results of operations, and prospects.***

We operate a fabless manufacturing model that utilizes third-party suppliers, such as a third-party wafer

foundry, as well as system assembly and test service providers in a number of countries, including outside the

United States. We depend on one third-party foundry, Taiwan Semiconductor Manufacturing Company Limited

("TSMC"), to manufacture our proprietary processor using its fabrication equipment and techniques. We purchase

components such as servers, field-programmable gate arrays, network switches, cooling units, interconnects, and

chassis, among many others, from third-party providers. Except for certain assembly, packaging, and testing steps

that we perform internally, we do not assemble, test, or package our products, but instead contract with independent

contract manufacturers. Most of our products are designed to be manufactured in a specific process, typically at one

particular fabrication facility with particular suppliers. In addition, we source a number of the components used in

our products from sole or single-source suppliers, or use a single supplier to perform certain of the processes

involved in the manufacture of the products. Some of our components, such as our wafer, have long lead times. As a

result, we are highly reliant on our suppliers, and depend on them to allocate sufficient manufacturing capacity to

meet our needs, develop products of acceptable quality at acceptable yields, and deliver those products to us on a

timely basis.

Further, we do not generally have long-term capacity commitments with our suppliers. Substantially all of our

manufacturing services and component orders are currently transacted on a purchase order basis, and in many

instances we negotiate pricing separately for each purchase order, with our contractors and suppliers having no

obligation to perform services or supply products to us for any specific period, in any specific quantities, or at any

specific price, except as may be provided in a particular purchase order. It is possible that other customers of our

suppliers that are larger and better financed than we are, or have long-term agreements with these suppliers, may

induce these suppliers to reallocate capacity to them, which could impair our ability to secure manufacturing,

assembly, and testing capacity that we need for our products. Further, our competitors may have long-term capacity

commitments with our suppliers, and our suppliers may be obligated to prioritize our competitors under these

agreements when supply is limited. Our larger competitors may also leverage their market power to influence

suppliers and disrupt or limit the availability of manufacturing services and components or cause fluctuations in

availability and price for smaller companies in the market. Some of these suppliers have experienced in the past, and

may experience in the future, shortages and other disruptions to their ability to source and obtain deliveries of

necessary raw materials, components, or services, or logistics issues in delivering their products or performing their

services. We are dependent on the availability of this capacity to manufacture and assemble our products, and our

suppliers have not provided assurances that adequate capacity will be available to us in the future. If our suppliers'

operations are curtailed or disrupted, we may need to seek alternate sources of supply, which may not exist. The lead

time needed to identify, qualify, and establish reliable production at acceptable yields with a new supplier is

typically lengthy, and there is often no readily available alternative supplier. In addition, qualifying new suppliers is

often expensive, and they may not develop products or provide services as cost-effectively as our current suppliers,

which could harm our ability to price our products competitively while achieving our desired margin. These

shortages and disruptions may, in turn, harm our ability to manufacture and timely deliver our products to our

customers. For example, shipment delays in the fourth quarter of 2023 by a supplier resulted in delays in our

delivery schedule to a customer. While we met our contractual obligations to the customer in that instance, we can

provide no assurance that we will be able to do so in other instances under similar circumstances. We have also had

to qualify alternative suppliers and have experienced delays in delivering our products when existing suppliers no

longer supported our requirements due to changes in their business. If one or more of our suppliers no longer

manufactures our products, fails to perform its obligations in a timely manner or at satisfactory quality levels, or is

obligated to prioritize other entities in a constrained environment, our ability to bring products to market and to

timely deliver products to our customers may be harmed.

Additionally, if our component suppliers cease to, or become unable to, manufacture a component for us, we

may also be forced to make a significant "lifetime" purchase of the affected component or part from an existing

supplier, in order to enable us to meet our customer demand or to re-engineer a product. Significant lifetime

purchases of such discontinued components could significantly increase our inventory and other expenses, such as

insurance costs, and expose us to additional risks, such as the loss of, or damage to, products that may not

subsequently be available to us from an alternative source. In any such circumstances, we may be unable to meet our

customers' demands and may fail to meet our contractual obligations and may need to redesign our products. This

may result in the payment of significant damages by us to our customers and our revenue may decline, harming our

business, financial condition, results of operations, and prospects. We may also have excess inventory if we

overestimate the "lifetime" purchase quantity, which would result in write-offs.

There are certain components in our products that require long lead times to manufacture and deliver, including

the wafer for our WSE. Accordingly, we must make estimates of demand well in advance of certainty of revenue

and carry sufficient working capital to pay for these and other components. In addition, the yield on components,

including our wafers, is variable and thus we must account for a certain amount of waste when purchasing

components. If our estimates of customer demand are ultimately inaccurate, as we have experienced from time to

time, there could be a significant mismatch between supply and demand. This mismatch has in the past resulted, and

may in the future result, in both product shortages and excess inventory, with a corresponding impact to our results

of operations. If we underestimate our customers' future demand for our products, our suppliers may not have

adequate lead-time or capacity to increase production and we may not be able to obtain sufficient inventory to fill

orders on a timely basis or in a cost-effective manner. If we fail to fulfill our customers' orders on a timely basis, or

at all, our customer relationships could be damaged, we may lose revenue and market share and our reputation may

be harmed. If we overestimate our customers' future demand, we may have excess inventory with limited or no

resale value, which would harm our business, financial condition, results of operations, and prospects. To the extent

we increase our manufacturing capacity to fulfill capacity forecasts, our working capital needs will also increase.

Some of our customer agreements provide for, and future customer agreements may also require, certain

remedies if we do not deliver our products and services in a timely manner or by a certain date. If our third-party

suppliers do not perform services or deliver components on our expected timeline, including due to force majeure or

other reasons beyond their control, we may owe damages or incur other liabilities with our customers. In addition,

certain of our customers prepay for hardware purchases and are entitled to refunds of such advances in certain

situations.

Prior to our wafer-scale engine, a full wafer-sized processor had not previously been successfully manufactured

and commercially deployed in high volumes. We worked with TSMC to develop the processes necessary to

manufacture the semiconductor wafers needed for our wafer-scale engine, which involve many complexities and

proprietary technologies. We are currently dependent on TSMC to produce all of the wafers that we use in our

products. We have no formalized long-term supply or allocation commitments from TSMC, and TSMC also

fabricates wafers for other companies, including certain of our competitors, many of whom are significantly larger

than us and purchase considerably more wafers from TSMC than we do. TSMC could reduce or eliminate deliveries

to us on short notice, or raise their prices to us, all of which may result in loss of revenue opportunities, damage our

relationships with our customers, and harm our results of operations and gross margin. Many of our suppliers,

including TSMC, are located in areas of high geopolitical tension, such as Taiwan and South Korea, or in areas

prone to natural disasters, such as earthquakes and typhoons. Any substantial disruption in TSMC's supply of wafers

to us, or in the other contract manufacturing services that we utilize, as a result of a natural disaster, climate change,

water shortages, political unrest, military conflict, geopolitical turmoil, trade tensions, inflation, government orders,

global pandemics or health crises, economic instability, equipment failure, or other causes, may harm our business,

financial condition, results of operations, and prospects.

***Our supply chain is long, complex, and global, with many interdependencies. Any significant fluctuations of***

***supply and demand or disruption to our supply chain may harm our ability to manufacture and deliver our***

***products to our customers.***

Our products depend on many different electronic components of varying complexity and raw materials, as well

as software tools for the design of our products. Accordingly, our supply chain is dependent on many aspects of the

global semiconductor industry, which is highly cyclical and subject to wide fluctuations of supply and demand as a

result of rapid technological change, rapid product obsolescence and price erosion, evolving standards, and frequent

new product introductions, among other reasons. The industry has experienced significant downturns during recent

global recessions, characterized by diminished product demand, production overcapacity, and high inventory levels.

Any upturn in the semiconductor industry could result in increased competition for access to suppliers. Additionally,

the impact of industry-wide trends on specific segments and suppliers is difficult to predict.

Our products have long and complex bills of materials, with several long lead time components and single-

source suppliers for certain critical components. For example, TSMC fabricates all of our wafers, and switching to a

different foundry would require development of new proprietary processes and technologies, which may be

expensive and increase production time. Some of our suppliers are small and are unable to accommodate

fluctuations in required capacity. In other cases, our requirements represent a small portion of a supplier's business,

and therefore we may not be a priority for such supplier.

Our supply chain is also subject to complex and frequently changing rules and regulations regarding global

trade, such as imports, exports, tariffs, and taxes, as well as the effects of U.S. and foreign government programs and

initiatives regarding the semiconductor supply chain and other geopolitical forces. For example, both the United

States and China have national programs directed toward influencing the future of the global semiconductor

industry, and the effects of such programs on our business are not easily predictable.

Further, force majeure and other events beyond our and our suppliers' control, such as the COVID-19 pandemic

and natural disasters such as earthquakes in Taiwan, have in the past and may in the future result in disruption to

parts of our supply chain, including difficulty procuring wafers and other necessary components in a timely fashion,

with suppliers increasing lead times or placing products on allocation, requiring committed, non-cancelable

purchases and raised prices. Such events may excuse performance of certain suppliers but not excuse our

performance to our customers, which may cause us to incur liabilities.

Transportation disruptions, such as shortages in available cargo capacity or labor availability, changes in

frequency of service, and shipping channel disruptions, may also increase delivery times and costs for materials and

components to our facilities, transfers of our products to our key suppliers, and may affect our ability to timely ship

our products to customers. In addition, sometimes we bear the risk of loss during transportation of components from

our suppliers and products to our customers.

In periods when broad fluctuations or changes in business conditions occur, it is difficult to assess the impact on

our business. We have experienced substantial period-to-period fluctuations in our results of operations and expect,

in the future, to experience period-to-period fluctuations in our results of operations due to these changes in business

conditions.

***Raw material and component price fluctuations or decreased availability of certain raw materials or components***

***can increase the cost of our products, impact our ability to meet customer commitments, and may adversely affect***

***our business, financial condition, results of operations, and prospects.***

The cost of raw materials and components is a key element in the cost of our products, both directly and

indirectly through our suppliers. Our inability to offset material price inflation may harm our business, financial

condition, results of operations, and prospects. Although we believe that sources of supply for raw materials and

components are generally adequate, it is difficult to predict what effects shortages or price increases may have in the

future. Our inability to meet our supply needs would jeopardize our ability to fulfill obligations under our contracts,

which could, in turn, result in reduced sales and profits, contract penalties or terminations, and damage to our

customer relationships. Furthermore, increases in the price of certain raw materials may result in increased

production costs and may result in a decrease in our gross margins. We may choose not to, or may not be able to,

pass on such price increases to our customers. In addition, because we primarily outsource manufacturing of our

products, global market trends such as shortage of capacity to fulfill our fabrication needs also may increase our raw

material costs and thus decrease our gross margins.

***Dependency on third-party suppliers and their technology to manufacture, assemble, test, or design our products***

***reduces our control over product quantity and quality, manufacturing yields, development, enhancement, and***

***product delivery schedules and could harm our business.***

Except for certain assembly, packaging, and testing steps that we conduct internally, we depend on third-party

suppliers to manufacture, assemble, and test our products, and utilize third-party development tools for design,

simulation, and verification of new products. Further, while we primarily generate intellectual property internally,

we have, on occasion, leveraged certain third parties for software development purposes. We also face several other

risks related to our third-party suppliers that have adversely affected or could adversely affect our ability to meet

customer demand and scale our supply chain, negatively impact longer-term demand for our products and services,

and harm our business or results of operations, including:

• lack of guaranteed supply of wafer, component, and capacity or decommitment and potential higher wafer

and component prices, from long lead times, incorrectly estimating demand, and failing to place orders with

our suppliers with sufficient quantities or in a timely manner;

• failure by our foundries or suppliers to procure raw materials or provide adequate levels of manufacturing

or test capacity for our products;

• failure by our foundries to develop, obtain, or successfully implement high quality process technologies,

including transitions to smaller geometry process technologies such as advanced process node technologies

and memory designs needed to manufacture our products;

• failure by our suppliers to comply with our policies and expectations and emerging regulatory

requirements;

• limited number and geographic concentration of global suppliers, foundries, contract manufacturers,

assembly, and test providers;

• loss of a supplier and additional expense and/or production delays as a result of qualifying a new foundry or

other supplier and commencing volume production or testing in the event of a loss, addition, or change of a

supplier;

• disputes with or among our suppliers or prospective suppliers, including with respect to intellectual

property infringement or other legal and regulatory matters;

• lack of direct control over product quantity, quality, and delivery schedules;

• responsibility or lack of recourse for loss or damage incurred while our products are in transit;

• failure of our suppliers or their suppliers to supply high-quality products and/or making changes to their

products without our qualification;

• delays in product shipments, shortages, a decrease in product quality, and/or higher expenses in the event

our subcontractors or foundries prioritize our competitors' or other customers' orders over ours;

• requirements to place orders that are not cancellable upon changes in demand or requirements to prepay for

supply in advance;

• low manufacturing yields resulting from a failure in our product design or a foundry's proprietary process

technology;

• disruptions in manufacturing, assembly, and other processes due to closures related to heat waves,

earthquakes, fires, or other natural disasters and electricity conservation efforts; and

• failure by our third-party software development tools to meet consumer demands for greater functionality

from the design, simulation, and verification of new products or product enhancements.

***The complexity of our offerings could result in delays in adoption by our customers, unforeseen expense or***

***undetected defects, bugs, or security vulnerabilities, which may harm the market acceptance of new products and***

***services, damage our reputation with current or prospective customers, cause significant remediation expenses,***

***and may harm our business, financial condition, results of operations, and prospects.***

Our AI computing solutions, including both hardware and software, are highly complex to design and

complicated to make, involve novel manufacturing processes, and may contain defects, bugs, or security

vulnerabilities or experience failures or unsatisfactory performance due to a variety of issues, including design,

fabrication, packaging, materials, or use. Our offerings may contain defects when they are first introduced or as new

versions or enhancements are released, or their release may be delayed due to unforeseen difficulties during product

development. We shipped our first CS-1 system in 2020 and our first CS-2 system in 2021, first introduced our CS-3

system and our inference solutions in 2024, and executed our first substantial scale-up of our data center footprint in

2025. As a result, we and our customers have not had a significant amount of time to gauge the long-term

performance and reliability of our offerings. In addition, while we have designed our platform to be able to

seamlessly scale up to 2,048 CS systems, the largest cluster deployed as of December 31, 2025 is comprised of

over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CS systems. If our AI solutions, third-party components used in our products, the AI models we create

or train on behalf of our customers, third party models that we host in our cloud, or our inference output contain

defects, bugs, or vulnerabilities or have reliability, quality, or compatibility problems, we may not be able to

successfully design workarounds or resolve the issues in a timely manner. For example, the AI models that we host

or train may not generate the responses that our customers want or expect, or may be otherwise flawed, and our

inference speed or throughput may be lower than what customers desire. Any defects discovered in our offerings, or

any components included in our products, prior to their shipping or release could delay our ability to deliver

products or services to our customers. Further, defects in our products, services, the AI models we build or help

train, or the AI models that we host, may only be discovered after a product or model has been shipped, released, or

used by our customers. Our offerings may also have undiscovered vulnerabilities that could be exploited by hackers

or other unscrupulous third parties who develop and deploy viruses and other malicious software programs, thereby

exposing our customers to potential adverse consequences. Additionally, our hardware products may be difficult to

repair in the field and may need to be shipped back to our facility for repair. Failures of our offerings to perform to

specifications, including certain performance requirements with respect to service-level commitments in our

customer agreements or issues caused by data center disruptions or failures, or other product defects, have caused us

to incur, and could cause us to incur in the future, significant warranty, support, and repair or replacement costs,

including credits or damages pursuant to our service-level commitments, and divert the attention of our engineering

personnel from our product development efforts to find and correct the issue or to design workarounds. Further,

issues with, or subpar performance of, AI models that we develop or help develop for customers, or that we host in

our inference cloud, may require additional and unexpected personnel cost to remedy. In addition, delays in shipping

or releasing products or training or hosting AI models or the discovery of an error or defect in new products or

software after commencement of commercial shipment or release could harm our relationships with customers, as

well as the perception of our brand, and may result in failure to achieve market acceptance of our offerings and harm

our business, financial condition, results of operations, and prospects.

***New developments and enhancements of our offerings require significant investment. Our failure to develop new***

***or enhanced offerings and introduce them in a timely and effective manner would undermine our***

***competitiveness.***

We have invested, and expect to continue to invest, significant resources in the development of our AI compute

solutions, both at a hardware and software level. For example, we periodically publish software releases that may

contain significant new features or improvements, which require personnel and IT resources to develop and deploy.

Similarly, we periodically develop and release new versions of our hardware, including new generations of

processors at smaller process nodes and systems with state-of-the-art packaging technologies, which also requires

significant financial and engineering resources, including design, fabrication, assembly, and testing costs. We

introduced our inference solution in 2024, which has new software and novel techniques in computation that

required significant investment.

Our failure to anticipate or timely adapt to changes in AI model architecture and other developments in AI

technologies could result in our current and next generation products not meeting the most prevalent customer

needs, leading to the loss of customers and decreased demand for our offerings. For instance, we have developed

software kernels and made hardware design decisions that optimize for AI solutions built on autoregressive

transformer architectures with higher compute demand. However, AI architecture is a rapidly evolving field, and the

design cycles for our products can be long. Therefore, there can be no assurance that our solutions will be optimized

for future AI workloads. Our solution currently integrates with the PyTorch machine learning framework to enable

familiar programmability for developers. New deep-learning frameworks emerge periodically, and while we intend

to evolve our solution to support those that become popular and widely adopted, we can provide no assurance that

we will be able to support all such frameworks with existing or future versions of our software. Likewise, our

inference solution was initially designed to support a limited set of leading third-party foundational models and our

inference cloud offering is exposed via an OpenAI-compatible API solution. While we intend to expand the number

of supported models and keep pace with industry leading model API, we must make decisions as to the order in

which popular foundational models and other product features will be integrated into our solution. If we do not

timely expand our inference solution to support models and product features that become popular within the AI

community, our inference product may lose current and potential customers.

At the same time, the AI compute market is subject to rapid technological change, product obsolescence, design

changes, and frequent new product introductions and feature enhancements. For example, continuous and rapid

advances in semiconductor technology compel providers of compute to release new and improved products at a

regular cadence. Failure to timely introduce new offerings that leverage the latest hardware and software

advancements in computing or in AI may result in diminished relevance, decreased competitiveness, and loss of

market share, which may harm our reputation, business, financial condition, results of operations, and prospects. We

have experienced, and may continue to experience, difficulties in transitioning to next generation systems, including

due to adopting advanced process node technologies and advanced packaging solutions. Our ability to generate

usage of additional products by our customers may also require increasingly sophisticated, more costly and

differentiated sales efforts and result in longer sales cycles. In addition, adoption of new products or enhancements

may put additional strain on our customer support or compliance teams, which could require us to make additional

expenditures related to further hiring and training. Further, the investment required to stay abreast of innovations in

AI and AI compute, including research and development and intellectual property expenditures and capital

investments, is substantial. If we allocate our resources incorrectly, we may impair our product development cycle

and erode our competitive positioning. Resource constraints may also require us to discontinue existing products or

services to support new offerings. The effects of such business model changes may be difficult to predict and may

not be evident for a long period of time. If we choose to focus on the wrong products and services, it may harm our

business, financial condition, results of operations, and prospects.

As a result of the rapid evolutions in AI technologies and the length of our product development cycle, we must

make decisions as to where to dedicate resources and develop product functionality based on our assessment of

which evolving AI technologies we think are likely to become widely adopted in the future. Our ability to

successfully compete and to continue to grow our business depends in significant part upon our ability to develop,

introduce, and sell new and enhanced products on a timely and cost-effective basis, and to correctly anticipate and

respond to changing customer requirements. If we are incorrect in our assessments, we will have expended financial

and engineering resources that may not generate revenue, and which may harm our competitive position, to the

extent we do not have adequate solutions for use cases that become prevalent. Lack of market acceptance for our

new products for any reason could jeopardize our ability to recoup substantial research and development

expenditures and may harm our reputation, business, financial condition, results of operations, and prospects.

We have experienced, and may experience in the future, delays and unanticipated expenses in the development

and introduction of new products. A failure to develop products with required feature sets or performance standards

or a delay in bringing a new product or service to market may significantly reduce our return on investment as well

as our sales, all of which may harm our business, financial condition, results of operations, and prospects. Delays in

the development of new products and services or product and service enhancements could also benefit our

competitors and allow them to achieve greater market share. We cannot assure that our future product development

efforts will be successful or result in products that gain market acceptance.

***If our customers do not purchase additional products from us or expand their purchases with us in the future,***

***our business, financial condition, results of operations, and prospects could be harmed.***

In order for us to maintain or improve our results of operations, it is important that our customers continue to

purchase our offerings on similar or improved terms, and that we increase the products and services our customers

purchase. Our on-premises system purchases are generally handled on a purchase order basis, and customers are not

otherwise required to purchase specific or additional quantities of products from us. Likewise, our cloud solutions

can be purchased by developers on a pay-as-you-go model without any long-term commitments. Even when

customers agree to purchase an agreed quantity of hardware products from us, we generally do not recognize

revenue until shipment or delivery, depending on shipping terms, or until we have met the contractual acceptance

terms. As a result, we may not generate the amount of revenue on the timeline that we expect. Moreover, our

customers' purchasing power have, in some cases, given them the ability to make greater demands on us with regard

to pricing and contractual terms. We expect this trend to continue, which may adversely affect our gross margin and,

should we fail to perform under these arrangements, we could also be liable for significant monetary damages. If our

efforts to maintain and expand our relationships with our existing customers are not successful, our business,

financial condition, results of operations, and prospects may be harmed.

***Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense. If***

***our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our***

***business and results of operations may be harmed.***

Our results of operations may fluctuate, in part, because of the resource-intensive nature of our sales efforts, the

length and variability of the sales cycle for our products, and the difficulty in making short-term adjustments to our

operating expenses. The timing of our sales is difficult to predict. The length of our sales cycle, from initial

evaluation to purchase of our product, can vary substantially from customer to customer. Our sales efforts involve

educating our customers about the use, technical capabilities, and benefits of our solution. Customers often

undertake a lengthy evaluation of our products, which may involve not only our solution but also those of our

competitors. Potential customers have and may continue to request paid proof of concept trials prior to purchase,

which can be time intensive for our sales and technical personnel, and use compute capacity that could otherwise

have been sold. In addition, sales to large organizations and government agencies, and in highly regulated verticals,

tend to take longer to conclude because such organizations typically go through a significant evaluation and lengthy

negotiation process due to their size, organizational structure, and internal approval requirements, including

extensive information security requirements. We may spend substantial time, effort, and money on sales efforts

without any assurance that our efforts will produce any sales. As a result, it is difficult to predict if or exactly when

we will make a sale to a potential customer, or if we can increase sales to our existing customers. New product

developments or releases may lead to changes in the size, quantity and complexity of our customer relationships,

making it more difficult for us to predict timing of our sales or the expected impact to our results of operations. If

our sales cycle lengthens or we invest substantial resources pursuing unsuccessful sales opportunities, our business,

financial condition, and results of operations may be harmed.

Each individual sale tends to be large as a proportion of our overall sales, which has impacted our ability to

accurately forecast revenue and manage cash flows. In addition, sales have, in some cases, occurred in later quarters

than anticipated, or have not occurred at all, and within each quarter, it is difficult to predict when a transaction will

close. Therefore, it is often difficult to determine whether we will meet our quarterly or annual expectations until

near the end of such periods. Many of our expenses are relatively fixed or require time to adjust. If expectations for

our business are not accurate, we may not be able to adjust our cost structure on a timely basis, and our margins and

cash flows may differ from expectations.

***The estimates of market opportunity and forecasts of market growth included in this prospectus may prove to be***

***inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business may not***

***grow at similar rates, or at all.***

Market opportunity estimates and growth forecasts included in this prospectus, including third-party market

research and internal estimates, are subject to significant uncertainty and are based on assumptions and estimates

which may not prove to be accurate. While we believe the information on which we base our market opportunity

estimates and forecasts is generally reliable, such information is inherently imprecise. Furthermore, even if the

markets in which we compete meet the size estimates and growth forecasts included in this prospectus, our business

may not grow at similar rates, or at all. For example, we are in the early stages of commercializing our inference

solution at its current scale, and there can be no assurance that we will be able to capture any significant part of the

inference market. Moreover, the market for high speed inference, including real-time and agent-based systems, may

not exist or increase as expected. Our growth is subject to many factors, including our success in implementing our

business strategy, which has many risks and uncertainties, including those described herein. If our market

opportunity estimates or growth forecasts prove to be inaccurate, our future growth opportunities may be lower than

we currently expect.

***Any failure to offer high-quality maintenance and support services for our customers and maintain customer***

***satisfaction may harm our relationships with our customers and, consequently, our business.***

Our customers depend on our maintenance and support teams to resolve technical and operational issues with

respect to our on-premises and cloud products. Our ability to provide effective customer maintenance and support is

dependent on our ability to attract, train, and retain qualified personnel with AI, software programming, IT, and

complex hardware maintenance experience. In particular, our hardware systems are very complex and difficult to

repair in the field, with many components that are challenging and expensive to upgrade. When we sell hardware

units for installation on premises at our customers' facilities, we may in certain circumstances provide spare units

that may be used during repair downtime. Where we also provide cluster management services for hardware that we

have sold, our customer agreements typically provide for service credits in the event we do not meet certain uptime

requirements. Our cloud-based customer agreements may also include service credits for uptime requirements.

Additionally, growth in our customer base puts additional pressure on our customer maintenance and support

teams. Our customer support and cloud operations services teams may need additional personnel to respond to

customer demand. We may be unable to respond quickly enough to accommodate short-term increases in customer

demand for services. If we are unable to provide efficient, high-quality customer maintenance and support services

or if we are unable to hire sufficient additional maintenance and support personnel in a timely or efficient manner,

we may incur significant warranty, support, and repair, replacement, or service credit costs, and our business and our

relationships with our customers may be harmed.

In addition, as we continue to grow our operations and expand outside of the United States, we need to be able

to provide efficient services that meet our customers' needs globally at scale, and our customer support and cloud

operations services teams may face additional challenges, including those associated with operating the platforms

and delivering support, training, and documentation in languages other than English and providing services across

expanded time-zones. If we are unable to provide efficient customer support services globally at scale, our ability to

grow our operations may be harmed, and we may need to hire additional services personnel, which could increase

our expenses, and negatively impact our business, financial condition, operating results, and prospects.

***If we are not able to maintain and enhance our reputation and brand recognition, our business, financial***

***condition, results of operations, and prospects may be harmed.***

We believe that maintaining and enhancing our reputation and brand recognition is critical to our relationships

with existing customers and our ability to attract new customers. The promotion of our brand may require us to

make substantial investments and we anticipate that, as our market becomes increasingly competitive, these

marketing initiatives may become increasingly difficult and expensive. Our marketing activities may not be

successful or yield increased revenue, and to the extent that these activities yield increased revenue, the increased

revenue may not offset the expenses we incur, and our results of operations may be harmed. In addition, any factor

that diminishes our reputation or that of our management, including failing to meet the expectations of our

customers and public or investor perception, may make it substantially more difficult for us to attract new

customers. Similarly, because our customers often act as references for us with prospective new customers, any

existing customer that questions the quality of our work or that of our employees could impair our ability to secure

additional new customers. If we do not successfully maintain and enhance our reputation and brand recognition with

our customers, our business may not grow and we may lose these relationships, which may harm our business,

financial condition, results of operations, and prospects.

***Our semiconductor and hardware system design and manufacturing processes involve numerous technical,***

***operational, and financial risks, including challenges associated with advanced process nodes, tape-outs, and***

***complex packaging technologies, that could delay our product roadmap, increase our costs, and adversely affect***

***our business, financial condition, results of operations, and prospects.***

Developing high-performance processors and systems requires us to continuously transition to more advanced

process node technologies and invest in increasingly complex packaging, power delivery, cooling, and integration

solutions. For example, the WSE-2 was manufactured on TSMC's 7nm process technology and the WSE-3 on

TSMC's 5nm process technology, and we expect future products to require even more advanced nodes and

packaging approaches. These transitions are essential for maintaining competitiveness but involve substantial design

complexity, significant engineering resources, and difficult trade-off decisions, including the opportunity costs

associated with technologies we choose not to pursue. As process and packaging technologies advance, the risks,

costs, and development timelines associated with semiconductor design generally increase.

We rely heavily on our foundry partner, currently TSMC, for successful transitions to next generation products

and for the manufacture of all of our wafers. We cannot assure you that TSMC or any future foundry partner will be

able or willing to support our product transitions on the schedules we require, in sufficient volume to meet customer

demand, or at all. Transitioning to another foundry would require substantial additional development effort, increase

our time to market, and could introduce new technical and supply-chain risks. In addition, we have experienced, and

may continue to experience, delays in securing tape-out slots and in resolving technical issues associated with new

designs. Failures or delays at tape-out, which marks the finalization of a chip design prior to manufacturing, carry

particularly high impact because the process requires significant engineering time, financial resources, and close

cooperation with the foundry. Tape-out failures, whether due to design flaws, manufacturing defects, or process-

related issues, can require restarts of the design cycle, increase costs, reduce yields, and delay product launches.

Our advanced wafer-scale architecture also requires continual innovation in power delivery, cooling, input/

output integration, and other aspects of advanced packaging. As we push the limits of power density, thermal

management, and interconnect complexity, we may encounter fundamental constraints that require new engineering

solutions. If we fail to develop such solutions on the required timeline, or at all, we may be unable to meet our

product-roadmap objectives or deliver next-generation products. Reduced manufacturing yields, delays in product

deliveries, higher development and production expenses, or an inability to introduce competitive next-generation

products could harm our customer relationships, reputation, business, financial condition, results of operations, and

prospects.

***Issues relating to the responsible use of our technologies may result in reputational or financial harm and***

***liability.***

As with many new emerging technologies, AI presents risks and challenges and increasing ethical and legal

concerns relating to its responsible use that could affect the adoption of AI, and thus our business. Concerns relating

to the responsible use of new and evolving technologies in our offerings may also result in reputational or financial

harm and liability and may cause us to incur costs to resolve such issues. For instance, we offer AI model services in

which we develop proprietary AI models with and on behalf of our customers, as well as open-source AI models that

we or our customers make generally available to the community. We may not have insight into, or control over, how

our customers and other third parties use or deploy the AI models that we trained or assisted in training, or that were

trained using our computing solutions, or that we otherwise make available to customers. We do not control how

others, including customers, use AI models that we develop or make available. We also cannot fully control how

users interact with our inference solution, including whether they may breach our terms of use or that of third-party

model providers with which we integrate or host. If we enable or offer AI models that draw controversy due to their

perceived or actual impact on society, including, for example, AI models that have unintended consequences,

infringe intellectual property rights or rights of publicity, disseminate illegal, inaccurate, defamatory, or harmful

content, or are controversial because of their impact on human rights, privacy, cybersecurity, employment or other

social, economic or political issues, or if we are unable to develop effective internal policies and frameworks relating

to the responsible development and use of AI models, we may experience brand or reputational harm, competitive

harm, financial harm, or legal liability. Complying with multiple laws, statutes, regulations, guidelines, self-

regulatory frameworks, and industry standards from different jurisdictions related to AI could increase our cost of

doing business, may change the way that we operate in certain jurisdictions, or may impede our ability to offer

certain products and services in certain jurisdictions if we are unable to comply with applicable legal requirements.

Compliance with existing and proposed government regulation of AI, including in jurisdictions such as the European

Union (the "EU"), may also increase the cost of related research and development and compliance, and create

additional reporting or transparency requirements. In addition, unfavorable developments with evolving laws and

regulations worldwide related to AI, such as those laws that may pause or inhibit continued development or adoption

of AI, may limit global adoption, reduce demand for our offerings, increase our costs to provide our offerings,

impede our strategy, and negatively impact our long-term expectations in this area. For example, given the adoption

of the EU's Artificial Intelligence Act (the "AI Act"), which went into force in August 2024, and AI-related laws in

the United States, including the Colorado Artificial Intelligence Act (the "Colorado AI Act"), we anticipate that

there will continue to be significant developing laws and regulations with respect to AI as the AI industry continues

to develop. Changes in AI-related regulation may disproportionately impact and disadvantage us and require us to

change our business practices, which may harm our results of operations. Our, our customers, or others' failure to

adequately address any of the foregoing concerns or regulations relating to the responsible use of AI may undermine

public confidence in AI and slow adoption of our offerings or harm our reputation or business, financial condition,

results of operations, and prospects.

***Events outside of our control, adverse economic conditions, or economic uncertainty may harm our business,***

***financial condition, results of operations, and prospects.***

Disruptive and/or unpredictable global events beyond our control (such as geopolitical conflict or terrorism,

including the ongoing conflict between Russia and Ukraine and in the Middle East, global pandemics or health

crises, natural disasters, or labor unrest) may increase the severity of political and economic volatility around the

world, and could result in a protracted localized or widespread decrease in demand for our products. This decrease in

demand, depending on its scope and duration, could significantly impact and harm our business, financial condition,

results of operations, and prospects over the short and long-term.

Additionally, many of our suppliers, including our sole source of wafers, TSMC, are located in areas of high

geopolitical tension, such as Taiwan and South Korea, or in areas prone to natural disasters such as earthquakes and

typhoons. Similarly, the potential for military conflict between China and Taiwan could have negative impacts on

the global economy, including by affecting the supply of semiconductors from Taiwan, contributing to higher

energy prices and creating uncertainty in the global capital markets. Any substantial disruption in TSMC's supply of

wafers to us, or in the other supply services that we utilize, as a result of a natural disaster, climate change, water

shortages, political unrest, military conflict, geopolitical turmoil, trade tensions, government orders, medical

epidemics, economic instability, equipment failure or other causes, could materially disrupt our operations, may

harm our customer relationships, business, financial condition, results of operations, and prospects. Further, in 2025,

a significant majority of our revenue was generated from customers headquartered in the United Arab Emirates.

Recent political instability and protests in the Middle East have caused significant disruptions to many industries.

Conflict, political instability, and social unrest in, policy changes (including by the U.S government as well as the

governments of other countries in which we operate) with respect to, or negative public sentiment toward, the

Middle East may significantly harm our business, financial condition, results of operations, and prospects.

Further, adverse macroeconomic conditions, including a general slowdown in the United States or global

economy or in a particular region or industry, inflation, recession, changes to fiscal and monetary policy, tighter

credit, higher interest rates, new or increased trade tariffs, or an increase in trade tensions with United States trading

partners, may harm our business, financial condition, results of operations, and prospects. In particular, the

imposition of tariffs, trade controls, border taxes, or other barriers to trade may directly or indirectly impact our

business, financial condition, results of operations, and prospects. For example, the 2025 U.S. announcement of

tariffs on imported goods from many countries and the announcement of retaliatory tariffs from select countries has

contributed to volatility in the markets, and has and may continue to negatively impact our costs. A deterioration in

economic conditions may cause our customers to reduce, delay or forego technology spending, including spending

on our products. Significant inflation may increase our costs and expenses, which we may choose not, or not be able

to, pass on to our customers. In addition, uncertainty about, or a decline in, global or regional economic conditions

may have a significant impact on our suppliers, some of which are located outside the United States. If customers or

prospective customers elect not to purchase our offerings as a result of a weak economy or rising inflation and

increased costs or otherwise, or our suppliers are unable to continue supplying our products, our business, financial

condition, results of operations, and prospects may be harmed. There can be no assurance that we will be able to

mitigate the impacts of the foregoing or any future changes in global trade dynamics on our business. Potential

effects include financial instability, inability to obtain credit to finance operations and insolvency.

***Pricing for the current generation of our existing products often decreases over time, which may harm our***

***business, financial condition, results of operations, and prospects.***

We launched the CS-3 in 2024 and no longer manufacture the CS-2. In the future, we expect to release new

generations of our AI compute system, which may require us to reduce prices of then-current systems in anticipation

of such releases. In addition, customers may delay purchasing an existing system, or cloud compute capacity

associated therewith, in anticipation of our release of a next generation or newer, more advanced system. Our

business, financial condition, results of operations, and prospects may be harmed by a decline in the pricing for the

current generation of our existing products. Additionally, as competition increases in our target markets, we may

need to reduce the prices of our existing products and services in anticipation of competitive pricing pressures, new

product introductions by us or our competitors, new generations of such existing products, or for other reasons. If we

are unable to offset any reductions in pricing for existing products by increasing our sales volumes, decreasing costs,

or introducing new products or services or new product generations of such existing products with higher margins,

our business, financial condition, results of operations, and prospects may be harmed. To maintain our results of

operations, we must develop and introduce new products and services, next-generation products, and product

enhancements on a timely basis and continually reduce our costs as well as our customers' costs. Failure to do so

may harm our business, financial condition, results of operations, and prospects.

**Risks Related to Operations**

***Our business and operations have experienced significant growth, and if we do not effectively manage our***

***growth, or are unable to improve our systems and processes, our business, financial condition, results of***

***operations, and prospects will be harmed.***

We have grown rapidly since we were founded in 2016. For example, our total headcount has grown to

approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; people as of December 31, 2025, and we have employees located in the United States,

Canada, India, and other countries. Our customer base has also grown and we expect it to continue to grow. The

rapid growth and expansion of our business places a continuous and significant strain on our management,

operational, and financial resources.

To manage future growth effectively, we will need to expand and improve our operating, financial, IT and other

administrative systems, controls, and procedures, and continue to manage headcount expansion and capital in an

efficient manner. We may not be able to successfully implement requisite improvements to these systems, processes,

controls, and procedures in a timely or efficient manner. Any failure to improve our systems and processes, or their

failure to operate in the intended manner, whether as a result of the significant growth of our business or otherwise,

may result in our inability to manage the growth of our business or to accurately forecast our revenue, expenses and

earnings, or to prevent certain losses or replace anticipated revenue that we do not receive as a result of delays

arising from these factors. Moreover, the failure of our systems and processes could undermine our ability to provide

accurate, timely and reliable reports on our results of operations and financial condition and could adversely impact

the effectiveness of our internal controls over financial reporting. In addition, our systems and processes may not

prevent or detect all errors, omissions, or fraud. Accordingly, our results of operations in future reporting periods

may be below the expectations of investors.

We will also face increased compliance costs associated with growth and the expansion of business, particularly

as we expand into new countries, if the number of our government customers increases, and as we become a public

company. We have encountered and expect to continue to encounter additional risks and difficulties frequently

experienced by growing companies in rapidly changing industries, including effectively managing increasing

expenses, and allocating valuable financial and other resources as we continue to grow our business. If we do not

manage these risks successfully, our business, financial condition, results of operations, and prospects will be

harmed.

***We are subject to the risks associated with conducting business operations outside the United States, which may***

***harm our business.***

In addition to our U.S. operations, we also have international operations. We have foreign subsidiaries in

Canada and India, and a smaller number of employees in several other countries, including the United Arab

Emirates. In addition, we are planning to expand our data center locations to multiple geographies. We also on

occasion provide services at our customers' facilities, including those not located in the United States, and engage in

sales and marketing efforts in many foreign jurisdictions. International activities are subject to the uncertainties

associated with international business operations, including global laws and regulations, economic sanctions, tax

laws and regulations, privacy laws, export and import regulations, duties, tariffs, and other trade restrictions and

barriers, changes in trade policies, anti-corruption laws, foreign governmental regulations, potential vulnerability of

and reduced protection for intellectual property, and our ability to acquire and retain local employees, any of which

may harm our business, financial condition, results of operations, and prospects. Our business, financial condition,

results of operations, and prospects may also be harmed in the event of political conflicts, economic crises, wars, or

other changes in international relations affecting countries where our subsidiaries, manufacturers, suppliers, and

customers are located.

A deterioration in relations between the United States and any country in which we have significant operations

or sales, or the implementation of government regulations in such a country, may result in the adoption or expansion

of trade restrictions, including economic sanctions and export license requirements, that may harm our business.

***We plan to expand our international operations, including to jurisdictions where we have limited operating***

***experience and may be subject to increased business and economic risks that may harm our financial condition***

***and results of operations.***

We plan to continue the international expansion of our business operations. We may enter new international

markets where we have limited or no experience in marketing, selling, and deploying our offerings. If we fail to

deploy or manage our operations in these countries successfully, our business and operations may suffer. In addition,

we are subject to a variety of risks inherent in doing business internationally, including:

• political, social, and/or economic instability, including as a result of the ongoing conflict between Russia

and Ukraine and in the Middle East;

• risks related to governmental regulations in foreign jurisdictions and unexpected changes in regulatory

requirements and enforcement;

• existing trade laws and regulations, including those related to exports and deemed exports of U.S.

technology;

• changes in trade relationships, including the imposition of new trade restrictions and sanctions, trade

embargoes, trade protection measures, export or import requirements, entity lists, tariffs, quotas, and other

trade barriers and restrictions, including those related to the ongoing trade disputes between China and the

United States;

• fluctuations in currency exchange rates;

• higher levels of credit risk and payment fraud;

• enhanced difficulties of integrating any foreign acquisitions;

• burdens of complying with a variety of foreign laws;

• reduced protection for intellectual property rights in some countries and practical difficulties in enforcing

intellectual property and other rights outside the United States;

• difficulties in staffing and managing global operations and the increased travel, infrastructure and legal

compliance costs associated with multiple international locations and subsidiaries;

• new and different sources of competition;

• different regulations and practices with respect to employee/employer relationships, existence of workers'

councils and labor unions, and other challenges caused by distance, language, and cultural differences,

making it harder to do business in certain international jurisdictions;

• different regulations and practices with respect to real property, data center leases, power and utilities, and

environmental matters;

• compliance with statutory equity requirements; and

• management of tax consequences.

If we are unable to manage the complexity of our global operations successfully, our results of operations and

financial condition may be harmed.

***Our business and ongoing expansion depend on attracting and retaining qualified personnel, especially our***

***engineering and technical personnel.***

Our success depends in large part on our ability to attract and retain highly qualified personnel. We strive to

employ talented engineering and technical personnel, as well as effective sales, marketing, finance, and support

employees, all of which are in high demand. Maintaining our brand and reputation, as well as a diverse and inclusive

work environment that enables all our employees to thrive, is important to our ability to recruit and retain

employees. There is intense competition for highly qualified technologists in the AI industry, particularly in the San

Francisco Bay Area, where our headquarters are located, as well as in Toronto, Canada and in Bangalore, India,

where we also have offices. We use various measures, including offering competitive salaries and benefits and an

equity incentive program, to attract and retain the personnel we require to operate and grow our business effectively.

However, these measures may not be sufficient, and our employees may decide not to continue working for us and

leave us with little or no notice. Many of our competitors are significantly larger than we are, with greater financial

resources and publicly traded stock, and may be able to offer more attractive compensation packages than we can,

particularly with regard to equity compensation. As a result, it may be difficult for us to continue to retain and

motivate these employees, and the value of their holdings could affect their decisions about whether or not they

continue to work for us. Our ability to attract, retain and motivate employees may be adversely affected by declines

in the price of our Class A common stock. If we issue significant equity to attract employees or to retain our existing

employees, we would incur substantial additional stock-based compensation expense and the ownership of our

existing stockholders would be further diluted. In addition, some of our employees are employed with us on

temporary work visas, and any change in U.S. or other countries' immigration laws affecting their status or such

visas may make it difficult to retain such individuals or hire new personnel. The loss of even a few qualified

employees, or an inability to attract, retain and motivate additional highly skilled employees could harm our ability

to develop and sell our products, as well as our results of operations, and impair our ability to expand and grow our

business.

As our company grows and evolves, we may need to implement more complex organizational management

structures, adapt our corporate culture and work environments, streamline our organization, or adjust the size and

structure of our workforce to scale for the future and execute our long-term growth plan. If we fail to attract new

personnel, or to retain and motivate our current personnel, our business, financial condition, results of operations,

and prospects could be harmed.

***The loss of one or more members of our senior management team could harm our business.***

We currently depend on the continued services and contributions of our senior management team, particularly

the services of our co-founders. The members of our senior management team and co-founders are at-will

employees, which means that each person could resign or could be terminated for any reason at any time. Members

of our senior management team are critical to the management of our company and instrumental in the development

of our technology and our strategic direction, and should one or more of such persons stop working for us for any

reason, it is unlikely that we would be able to immediately find a suitable replacement. We also do not maintain any

key person life insurance policies. The loss of the services of any of them, other members of senior management, or

members of our senior technology personnel, could disrupt our operations, hamper our ability to implement our

business strategy, and harm our business, financial condition, results of operations, and prospects.

***We may seek to expand our business through the acquisition of complementary businesses or technologies. Any***

***future acquisitions and investments may disrupt our business and harm our financial condition and results of***

***operations.***

We may seek to expand our business and the products and services we offer, or our employee base through the

acquisition of complementary businesses and technologies. We also may enter into relationships with other

businesses to expand our platform, which could involve preferred or exclusive licenses, additional channels of

distribution, discount pricing, or investments in other companies. Negotiating these transactions can be time-

consuming, difficult, and expensive, and our ability to close these transactions may be subject to approvals that are

beyond our control, including approvals related to foreign investments and acquisitions. In addition, we have not

previously acquired another business. Even if we are able to identify a suitable acquisition or investment target, we

may not be able to complete the acquisition on commercially reasonable terms or at all. We may expend a

significant amount of time and incur significant out-of-pocket costs, as well as divert management attention, in

connection with an acquisition that is not ultimately completed. If an acquired business fails to meet our

expectations, our business, financial condition, results of operations, and prospects may be harmed.

In the event we do consummate an acquisition, we face a number of risks as a result, including:

• diversion of management time and focus;

• coordination of research and development and sales and marketing functions;

• retention and motivation of key employees from the acquired company;

• cultural challenges associated with integrating employees from the acquired company;

• integration of the acquired company's accounting, management information, human resources, and other

administrative systems and processes;

• difficulty achieving the anticipated synergies of the transaction;

• liability for activities of the acquired company before the acquisition, including intellectual property

infringement, violation, or misappropriation claims, violations of laws, commercial disputes, tax liabilities

and other known and unknown liabilities; and

• litigation or other claims in connection with the acquired company, including claims from terminated

employees, users, former stockholders or other third parties.

Our failure to address these risks or other problems encountered in connection with acquisitions could cause us

to fail to realize the anticipated benefits of these acquisitions, cause us to incur unanticipated liabilities and harm our

business generally. Future acquisitions could also result in dilutive issuances of our equity securities, the incurrence

of substantial amounts of debt, which could have terms that impose significant restrictions on our business,

contingent liabilities, amortization expenses, incremental operating expenses, or the impairment of goodwill, any of

which may harm our business, financial condition, results of operations, and prospects.

***Our business is subject to the risks of earthquakes, fire, power outages, floods, and other natural disasters and***

***catastrophic events, and to interruption by man-made problems such as war and terrorism.***

A significant natural disaster or other catastrophic event, such as an earthquake, fire, flood, power outage,

telecommunications failure, cyber-attack, war, terrorist attack, sabotage, other intentional acts of vandalism or

misconduct, geopolitical event, pandemic, or other public health crisis, or other catastrophic occurrence may harm

our business, financial condition, results of operations, and prospects. Our principal corporate offices and a

significant number of our employees, as well as data centers in which we have deployed our products, are located in

the San Francisco Bay Area, a region known for seismic activity. Geopolitical changes between China and Taiwan

could also disrupt the operations of our Taiwan-based third-party wafer foundry and other suppliers, negatively

impact delivery of products, and harm our business, financial condition, results of operations, and prospects.

Furthermore, escalation of geopolitical tensions, including as a result of escalations in the ongoing conflict between

Russia and Ukraine, the conflict in the Middle East, could have a broader impact that expands into other markets

where we do business, which may harm our business, vendors, partners, customers, or the economy as a whole.

Despite any precautions we may take, the occurrence of a natural disaster or other unanticipated problems could

result in lengthy interruptions in our services or disruptions in our activities or the activities of our suppliers,

manufacturers, partners, customers, or the economy as a whole. All of the aforementioned risks may be further

increased if our disaster recovery plans prove to be inadequate. We do not carry business interruption insurance

sufficient to compensate us for the potentially significant losses, including the potential harm to our business that

may result from interruptions in our ability to provide our products and services. Any such natural disaster or man-

made problem may harm our business, financial condition, results of operations, and prospects.

**Risks Related to IT Systems, Cybersecurity, and Intellectual Property**

***Our business is dependent upon the proper functioning of our internal business processes and IT systems,***

***including those in our data centers, and modification or interruption of such systems may disrupt our business,***

***processes, and internal controls.***

We rely on a number of internal business processes and IT systems to support key business functions, including

our supply chain and inventory management systems, and the efficient operation of these processes and systems is

critical to our business. Our business processes and IT systems need to be sufficiently scalable to support the growth

of our business and may require modifications or upgrades that expose us to a number of operational risks. As such,

our IT systems will continually evolve and adapt in order to meet our business needs. These changes may be costly

and disruptive to our operations and could impose substantial demands on management time. These changes may

also require changes in our IT systems, modification of internal control procedures and significant training of

employees and third parties, as well as other resources. We continuously work on simplifying our IT systems and

applications through consolidation and standardization efforts. There can be no assurance that our business and

operations will not experience any disruption in connection with this transition. Our IT systems, and those of our

third-party IT providers or business partners, may also be vulnerable to damage or disruption caused by

circumstances beyond our control including catastrophic events, power anomalies or outages, natural disasters,

viruses or malware, cyber-attacks, insider threat attacks, unauthorized system or data modifications, data breaches

and computer system or network failures, exposing us to significant cost, reputational harm and disruption or

damage to our business. In addition, as our IT environment continues to evolve, we are embracing new ways of

communicating and sharing data internally and externally with customers and partners using methods such as

mobility and the cloud that can promote business efficiency. However, these practices can also result in a more

distributed IT environment, making it more difficult for us to maintain visibility and control over internal and

external users, and meet scalability and administrative requirements. If our security controls cannot keep pace with

the speed of these changes or if we are not able to meet regulatory and compliance requirements, or if we are unable

to address any of the concerns described above, our business financial condition, results of operations, and prospects

may be harmed.

***Any failure of our IT systems or those of one or more of our IT service providers, business partners, vendors,***

***suppliers, or other third-party service providers, including data center providers, or any other failure by such***

***third parties to provide services to us may negatively impact our relationships with customers and harm our***

***business.***

Our business depends on various IT systems and outsourced IT services. We rely on third-party IT service

providers, business partners, vendors, suppliers, and cloud-based service providers to provide critical IT system,

corporate infrastructure, and other services and are, by necessity, dependent on them to adequately address

cybersecurity threats to, and other vulnerabilities, defects, or deficiencies of or in their own systems. This includes

infrastructure such as electronic communications, finance, marketing, and recruiting platforms and services such as

IT network development and network monitoring, and third-party data center hosting of our systems for our internal

and customer use. We do not own or control the operation of the third-party facilities or equipment used to provide

such services. Our third-party vendors and service providers have no obligation to renew their agreements with us on

commercially reasonable terms or at all. If we are unable to renew these agreements on commercially reasonable

terms, including with respect to service levels and cost, or at all, we may be required to transition to a new provider,

and we may incur significant costs and possible service interruption in connection with doing so. In addition, such

service providers could decide to close their facilities or change or suspend their service offerings without adequate

notice to us. Moreover, any financial difficulties, such as bankruptcy, faced by such vendors or cloud-based service

providers, the nature and extent of which are difficult to predict, may harm on our business. Since we cannot easily

switch vendors and cloud-based service providers, any disruption with respect to our current providers would impact

our operations and our business may be harmed. Furthermore, our disaster recovery systems and those of such third

parties may not function as intended or may fail to adequately protect our business information in the event of a

significant business interruption. Any termination, failure, or other disruption of any of such systems or services of

our third-party IT providers, business partners, vendors, suppliers, and cloud-based service providers could lead to

operating inefficiencies or disruptions, which could harm our business, financial condition, results of operations, and

prospects.

***Product, IT system security, network, and data protection breaches, as well as cyber-attacks, incidents, or other***

***unauthorized access to, or disclosure or other processing of, our proprietary, confidential, or sensitive***

***information, including personal information, may disrupt our operations, reduce our expected revenue, increase***

***our expenses, and harm our business and reputation.***

In the ordinary course of our business, we and our third-party providers collect, store, and otherwise process

confidential and sensitive information, including personal information about individuals such as our employees and

customers as well as proprietary business information and intellectual property. We also process training and

inference data provided to us by our customers and users, which may include personal information. This data,

including the personal information, is processed on our IT systems as well as those provided by certain third-party

providers upon whom we rely for critical services such as cloud-based infrastructure, encryption and authentication

technology, employee email and other functions.

We and our providers face various evolving cybersecurity risks that threaten the confidentiality, integrity, and

availability of our IT systems and data, including sensitive, proprietary, and personal information, that we process or

that is processed on our behalf. These risks include physical or electronic break-ins, security or cybersecurity

breaches, incidents and disruptions, computer malware, social-engineering attacks/phishing, ransomware, denial-of-

service attacks, employee theft, misuse, or other malfeasance by insiders, human or technological error (such as

software bugs, server malfunctions, hardware, or software failures), loss of data or other IT assets, and other cyber-

attacks by threat actors.

Individuals, groups of hackers, and sophisticated organizations, including nation-states and nation-state-

supported actors, terrorists, criminals, competitors, and other threat actors, have engaged and are expected to

continue to engage in cyber-attacks. The techniques employed in such attacks (such as the use of emerging AI

technologies), which we may not recognize until launched against a target or which may be difficult to discover for

an extended period, change frequently and are becoming increasingly sophisticated, making it more difficult to

successfully detect, defend against them or implement adequate preventative measures. We may also experience

cybersecurity breaches that may remain undetected for an extended period. Even if identified, we may be unable to

adequately investigate or remediate incidents or breaches due to attackers increasingly using tools and techniques

that are designed to circumvent controls, to avoid detection, and to remove or obfuscate forensic evidence. Such

cyber-attacks and other cybersecurity breaches, incidents, or disruptions may continue to evolve in frequency,

sophistication, and volume, and may be difficult to detect for long periods of time. Any of the foregoing breaches,

incidents, or disruptions may compromise our networks, IT systems, or applications, or the data collected or

processed on such systems, causing interruptions, delays, loss, or other operational malfunctions, which in turn

could harm our business, financial condition, results of operations, and prospects.

Certain aspects of effective cybersecurity are dependent upon our employees, contractors, or other third-party

service providers safeguarding our sensitive information and adhering to our security policies and access control

mechanisms, and we may face cybersecurity threats due to error or intentional misconduct by such employees,

contractors, or other third-party service providers. Remote and hybrid working arrangements at our company (and at

many third-party providers) also increase cybersecurity risks due to the challenges associated with managing remote

computing assets and security vulnerabilities that are present in many non-corporate and home networks.

Additionally, due to geopolitical conflicts and during times of war or other major conflicts, we and the third parties

we rely upon may be vulnerable to a heightened risk of cyber-attacks that could materially disrupt our ability to

provide services and products.

Like many other companies, we and our third party providers have in the past, and may experience in the future,

actual or attempted security incidents, cyber-attacks, or other unauthorized access to, or disclosure or other

processing of, our proprietary, confidential or sensitive information, including arising from a failure to properly

handle IT systems and the data that is processed through them, including personal information, or to adhere to our

security policies and access control mechanisms and, although no such events have had a material adverse effect on

our business to date, there can be no assurance that we will not have a materially adverse incident in the future. To

defend against security incidents, we must continuously engineer more secure products and enhance security and

reliability features. We must also continue to develop our security measures, including training programs and

security awareness initiatives, as well as vendor management processes, designed to ensure that we and our suppliers

have appropriate security measures in place, and continue to meet the evolving security requirements of our

customers, applicable industry standards, and government regulations. While we invest in training programs and

security awareness initiatives and take steps to detect and remediate vulnerabilities, we may not always be able to

prevent threats or detect and mitigate all vulnerabilities in our security controls, systems, or software, including

third-party software we have installed, as such threats and techniques change frequently and may not be detected

until after a security incident has occurred.

Further, we cannot guarantee that third parties and infrastructure in our supply chain or our partners' supply

chains have not been compromised or that they do not contain exploitable vulnerabilities, defects, or bugs that could

result in a breach of or disruption to our IT systems, including our products and services, or the third-party IT

systems that support our services. We may also incorporate third-party data into our AI algorithms or use open-

source datasets to train our algorithms. These datasets may be flawed, insufficient, or contain certain biased

information, contain information (including intellectual property and confidential, proprietary, or personal

information) for which the third party did not have appropriate rights, and may otherwise be vulnerable to security

incidents, or negatively affect safety, security, and other functioning of our AI compute solutions. We may have

limited insight into the data privacy or security practices of third-party suppliers, including with respect to our AI

models. Our ability to monitor these third parties' information security practices is limited, and they may not have

adequate information security or legal compliance measures in place or sufficient rights in the underlying data to

make them available. In addition, if one of our third-party suppliers suffers a security incident, our response may be

limited or more difficult because we may not have direct access to their systems, logs and other information related

to the security incident. Finally, we may experience delays in developing and deploying remedial measures designed

to address identified vulnerabilities on our IT systems or those of our third-party providers. These vulnerabilities

could, if exploited, result in a security incident.

Actual or perceived breaches of our security measures or unapproved access to our dissemination of proprietary,

confidential, or sensitive information, including personal information, about or by us or third parties, could expose

us and the parties affected to a risk of loss, or misuse of this information, potentially resulting in litigation (including

class actions) and subsequent liability, regulatory inquiries or actions including potential penalties and fines,

additional reporting requirements or other oversight, restrictions on processing data, indemnification obligations,

being required to provide credit monitoring or identity-theft prevention services, diversion of funds, diversion of

management attention, financial loss, loss of data, material disruptions in our systems and operations, supply chain,

and ability to produce, sell and distribute our offerings, damage to our brand and reputation or erosion confidence in

the effectiveness of our security measures, or significant incident response, system restoration or remediation, and

future compliance costs or other harms, which may harm our business, financial condition, results of operations, and

prospects. Applicable data privacy and security obligations may also require us to notify relevant stakeholders,

including affected individuals, customers, regulators, and investors, of security incidents, and investigations into and

mandatory disclosures with respect to such incidents could be costly and lead to negative publicity.

While our insurance policies include liability coverage for certain of these matters, subject to retention amounts

that could be substantial, if we experience a significant security breach, incident or disruption, we could be subject

to liability or other damages that exceed our insurance coverage and we cannot be certain that such insurance

policies will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not

deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed

available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or

the imposition of large deductible or co-insurance requirements, could adversely affect our business, financial

condition, results of operations, and prospects.

***Failure to obtain, maintain, protect, or enforce our intellectual property rights could harm our brand, business,***

***and results of operations.***

We regard the protection of our intellectual property as critical to our success. We strive to protect our

intellectual property rights by relying on a combination of patent, trademark, trade secret, copyright, unfair

competition and other related laws in the United States and internationally as well as confidentiality procedures and

contractual provisions to protect and establish our rights in our intellectual property, including our proprietary

technologies and know-how. We spend significant resources to monitor and protect our intellectual property rights,

including monitoring the unauthorized use of our products, but even with significant expenditures, we may not be

able to protect the intellectual property rights that are valuable to our business. In particular, we are unable to predict

or assure that:

• our intellectual property rights will not lapse or be invalidated, circumvented, challenged, or, in the case of

third-party intellectual property rights licensed to us, be licensed to others;

• our intellectual property rights will provide competitive advantages to us;

• rights previously granted by third parties to intellectual property licensed or assigned to us, including

portfolio cross-licenses, will not hamper our ability to assert our intellectual property rights or hinder the

settlement of currently pending or future disputes;

• any of our pending or future patent, copyright, or trademark applications will be issued or have the

coverage originally sought;

• we will be able to enforce our intellectual property rights in certain jurisdictions where competition is

intense or where legal protection may be weak; or

• we have sufficient intellectual property rights to protect or continue to offer our offerings or operate our

business.

We pursue the registration of our patents, trademarks, service marks, and domain names in the United States

and in certain foreign jurisdictions. We cannot guarantee that any current or future pending patent applications will

be issued to have the coverage originally sought, and even if the pending patent applications are granted, the rights

granted to us may not be meaningful or provide us with any commercial advantage. Additionally, our patents could

be opposed, contested, narrowed, circumvented, challenged, abandoned, or designed around by our competitors or

be declared invalid or unenforceable in judicial or administrative proceedings. The patent prosecution process is

expensive, time-consuming, and complex, and we have not in the past, and may not in the future be able to file,

prosecute, maintain, enforce, or license all necessary or desirable patent applications at a reasonable cost or in a

timely manner. Since we may not have sufficient resources or capital to pursue patent registration for our patentable

technology, our competitors could gain a competitive advantage if we fail to adequately protect such technologies as

trade secrets such that a competitor could develop similar technologies and pursue and obtain patent registration for

those technologies that would exclude us from continuing to use the patented technology, even if the technology was

initially proprietary to us. It is also possible that we will fail to identify patentable aspects of our research and

development output in time to obtain patent protection. Failure to timely seek patent protection on products or

technologies generally precludes us from seeking future patent protection on these products or technologies. Even if

we do timely seek patent protection, the coverage claimed in a patent application can be significantly reduced before

a patent is issued, and its scope can be reinterpreted after issuance, and as a result we can give no assurance that any

patents that we have issued or may have issued in the future will protect all significant aspects or components of our

current and future products or services, will provide us with any competitive advantage, or will not be challenged,

invalidated or circumvented in the future. Furthermore, we may not be able to obtain or maintain patent applications

and issued patents due to the subject matter claimed in such patent applications and issued patents being in

disclosures in the public domain. In addition, when patents expire, we lose the protection and competitive

advantages they originally provided to us.

Additionally, we believe that our success also depends on the technical expertise we have developed in

designing, testing, and manufacturing products, and we rely on confidential and proprietary information to develop

and maintain our competitive position. As a result, we also typically enter into confidentiality and invention

assignment agreements with our employees, contractors, and business partners in order to limit access to, and

disclosure and use of, our proprietary information. However, we cannot guarantee we have entered into such

agreements with each party that has or may have had access to our trade secrets, confidential or proprietary

information, or technology, including our AI offerings. Even if entered into, these contractual arrangements and the

other steps we have taken to protect our intellectual property may not prevent the misappropriation, infringement,

violation, dilution, or disclosure of our confidential or proprietary information or technology, including our AI

solutions, trade secrets, or intellectual property rights, or deter independent development of similar or competing

technologies by others.

Obtaining and maintaining effective intellectual property rights, including the costs of defending our rights is

expensive. We have obtained a number of provisional and issued patents, and are seeking additional patent

protection, and to register our trademarks and domain names in the United States and in certain foreign jurisdictions.

These processes are expensive and may not be successful in all jurisdictions or for every such application, and we

may not pursue such protections in all jurisdictions that may be relevant. Further, effective intellectual property

protections may not be available in every country in which we offer our products or services, and even where

present, the laws of such countries may not recognize intellectual property rights or protect them to the same extent

as their equivalents in the United States. Additionally, any changes in, or unexpected interpretations of, intellectual

property laws may compromise our ability to enforce our trade secret and intellectual property rights. Any of the

foregoing could make it difficult for us to stop the infringement, misappropriation, dilution or other violation of our

intellectual property or marketing of competing products or services, and any failure to obtain or maintain adequate

protection of our trade secrets or other intellectual property rights may harm our competitive position and may harm

our business, financial condition, results of operations, and prospects.

Litigation may be necessary to enforce our intellectual property rights, protect our proprietary rights, or

determine the validity and scope of proprietary rights claimed by others. Any actual or threatened litigation of this

nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical

resources, any of which may harm our business, financial condition, results of operations, and prospects. In addition,

we believe that the protection of our trademark rights is an important factor in product recognition, protecting our

brand and maintaining goodwill and if we do not adequately protect our rights in our trademarks from infringement,

any goodwill that we have developed in those trademarks could be lost or impaired, which may harm our brand and

our business. There may be potential trade name or trademark infringement claims brought by owners of other

trademarks that are similar to our trademarks, and as a result, we may incur significant costs in enforcing our

trademarks against those who attempt to imitate the "Cerebras" brand and other valuable trademarks and service

marks. If we fail to maintain, protect, and enhance our intellectual property rights, our brand, business, and results of

operations may be harmed.

Further, we may acquire companies with intellectual property that is subject to certain licensing obligations or

restrictions. These licensing obligations may extend to our own intellectual property following any such potential

acquisition and may limit our ability to assert, protect, enforce, or otherwise use our intellectual property rights.

From time to time, we may pursue litigation to assert our intellectual property rights, including, in some cases,

against our customers and suppliers, where we believe they have infringed, misappropriated, or otherwise violated

any of our intellectual property rights. Conversely, third parties have in the past pursued and may in the future

pursue intellectual property litigation against us. Claims of any of the foregoing could also harm our relationships

with our manufacturers and customers and might deter future manufacturers and customers from doing business

with us. Furthermore, an adverse decision in any such legal action may result in material expense and limit our

ability to assert or enforce our intellectual property rights and limit the value of our products and services, which

may otherwise harm our business, financial condition, results of operations, and prospects.

***Our ability to design and introduce new offerings in a timely manner includes the use of certain third-party***

***intellectual property.***

In the design and development of new and enhanced offerings, including AI computing solutions, we rely on

certain third-party intellectual property, such as development and testing tools for certain hardware and software.

Further, we have, on occasion, leveraged third parties for software development and have partnered with vendors on

aspects of hardware and process development. Furthermore, certain of our product features may rely on intellectual

property acquired from third parties that incorporate into our hardware or software. The design requirements

necessary to meet customer demand for more features and greater functionality from semiconductor products may

exceed the capabilities of the third-party intellectual property or development or testing tools available to us. If the

third-party intellectual property that we use becomes unavailable, is not available with required functionality or

performance in the time frame or price point needed for our new products or fails to produce designs that meet

customer demands, or laws are adopted that affect our use of third party intellectual property in certain regions or

products, our business, financial condition, results of operations, and prospects may be harmed.

***We may face claims of intellectual property infringement, misappropriation, dilution, or other violations, which***

***could be time-consuming or costly to defend or settle, result in the loss of significant rights or harm our***

***relationships with our customers or reputation in the industry.***

Third parties have in the past, and may in the future, assert against us their patent and other intellectual property

rights to technologies or information that are used in or are important to our business, which may be time consuming

and costly to defend or settle. We have in the past, and may in the future, particularly as a public company with an

increased profile and visibility, receive communications from others alleging our infringement, misappropriation,

dilution, or other violation of intellectual property rights. In addition, in the event that we recruit employees or

contractors from other companies, including certain potential competitors, and these employees or contractors are

involved in the development of products that are similar to the products they assisted in developing for their former

employers, we may become subject to claims that such employees or contractors have used or disclosed trade secrets

or other proprietary information in an unauthorized manner. We may also in the future be subject to claims by our

third-party suppliers, employees, or contractors asserting an ownership right in our issued patents, pending patent

applications or other intellectual property, including our AI solutions, as a result of the work they performed on our

behalf, or claims for indemnification by our customers who are subject to infringement or other claims by third

parties.

While we do not license for profit, sell access to, or otherwise derive revenue directly from the use of AI

models, we have trained AI models on publicly available datasets, similar to many other developers of AI models,

and released certain of such models to the community under certain open-source licenses. We also provide AI model

services to our customers, where we leverage our expertise to help customers train their models with architectures,

parameter sizes, and data sets and types of their choosing, which may include publicly available or proprietary data

sets or a combination of both. The act of such training necessarily involves transmission and use of certain data on

our systems. Like other developers of AI models who are subject to litigation and other disputes arising from the

training, fine-tuning, use, or development of AI models, we are currently and may in the future be subject to lawsuits

alleging that we reproduced, copied, displayed, distributed, or made derivative works of, or otherwise misused

copyrighted materials to train our or our customers' AI models without the authorization of the relevant copyright

owners, or otherwise infringed third-party proprietary rights in training data, including rights of publicity. However,

this remains an unsettled area of U.S. law and U.S. courts are currently weighing a number of lawsuits involving

claims that the reproduction of data for training AI models, or the use of AI models trained on copyrighted data,

infringes the rights of copyright holders. In addition, we have and may continue to fine-tune certain third-party AI

models. While we believe we are in compliance with the applicable license terms of such models, the interpretation

of such licenses may vary, and we may be subject to claims that we have violated the terms of such licenses.

Claims that our offerings or processes infringe, misappropriate, dilute, or otherwise violate third-party

intellectual property rights, regardless of their merit or resolution, could be time-consuming or costly to defend or

settle and could divert the efforts and attention of our management and technical personnel. Infringement claims also

could harm our relationships with our customers and might deter future customers from doing business with us. We

do not know whether we would prevail in these proceedings given the complex technical issues and inherent

uncertainties in intellectual property litigation. If any pending or future proceedings result in an adverse outcome, we

could be required to:

• cease the manufacture, use, or sale of the infringing offerings or processes;

• pay substantial damages for infringement, misappropriation, dilution, or other violation, including

enhanced damages for any willful infringement;

• expend significant resources to develop non-infringing offerings or processes, which may not be successful;

• license certain components or data from the third-party claiming infringement, which license may not be

available on commercially reasonable terms, or at all;

• cross-license our offerings to a competitor to resolve an infringement claim, which could weaken our

ability to compete with that competitor; or

• pay substantial damages to our customers or end-users to discontinue their use of or to replace infringing

product or process sold to them with non-infringing offerings or processes, if available.

Additionally, even if successful in any such proceedings, our rights in our offerings and other intellectual

property may be invalidated, encumbered, narrowed, or otherwise diminished. Moreover, there could be public

announcements of the results of hearings, motions or other interim proceedings or developments, and if securities

analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of

our Class A common stock. Any of the foregoing results may harm our business, financial condition, results of

operations, and prospects. Litigation against our customers as a result of third-party claims of intellectual property

infringement could trigger indemnification obligations under some of our agreements, which could result in

substantial expense to us, and which may materially harm our business, financial condition, results of operations,

and prospects.

***Certain of our intellectual property has been and may be developed under research agreements with U.S.***

***government entities, and may be subject to federal regulations that limit our exclusive rights in certain***

***circumstances.***

Certain of our intellectual property that generally pertain to applications outside of our offerings in the AI

computing market has been and may be developed under contracts with U.S. government entities. As a result, the

U.S. government may have certain rights to intellectual property that we use in our current or future products

pursuant to the Bayh-Dole Act of 1980, as amended (the "Bayh-Dole Act") or as otherwise required by our

contractual arrangements. Under the Bayh-Dole Act, U.S. government rights in certain "subject inventions"

developed under such contracts include a nonexclusive, non-transferable, and irrevocable worldwide license to use

inventions for any governmental purpose. In addition, the U.S. government has the right to require us, or an assignee

or exclusive licensee to such inventions, to grant licenses to these inventions to the U.S. government or a third party

if the U.S. government determines that: (i) adequate steps have not been taken to commercialize the invention;

(ii) government action is necessary to meet public health or safety needs; (iii) government action is necessary to

meet requirements for public use under federal regulations; or (iv) the right to use or sell such inventions is

exclusively licensed to an entity within the United States and substantially manufactured outside the United States

without the U.S. government's prior approval. We may lose exclusivity to our intellectual property rights if we fail

to comply with reporting obligations regarding subject inventions, fail to file for patent protection within specified

time limits, or fail to comply with other relevant Bayh-Dole Act restrictions. If any of our intellectual property

becomes subject to the rights or remedies available to the U.S. government or third parties pursuant to the Bayh-

Dole Act or related contractual arrangements, the value of our intellectual property may be impaired and our

business may be harmed.

***Our use of third-party open-source software may pose risks to our proprietary software and services in a manner***

***that may harm our business.***

Certain of our software, as well as that of our vendors or partners, may use or be derived from "open-source"

software that is generally made available to the public by its authors or other third parties. Some open-source

software licenses require end-users, who use, distribute or make available across a network software and services

that include open-source software, to make publicly available or to license at no cost all or part of such software

(which in some circumstances may include valuable proprietary code, such derivative works of the open-source

software) under the terms of the particular open-source license. These obligations may require us to make source

code for the derivative works available to the public or license such derivative works under a particular type of

license rather than the more limited access rights we customarily grant our customers and their users. This type of

licensing may subject us to disclosure of valuable, proprietary software code.

While our policies and processes are intended to enable us to monitor and comply with the licenses of third-

party open-source software and protect our valuable proprietary source code, we may inadvertently use third-party

open-source software in a manner that exposes us not only to the risk of a forced disclosure of our own proprietary

software, but also to claims of non-compliance with the terms of third-party licenses, including claims of

infringement or for breach of contract. We cannot be sure that all open-source software is identified, reviewed, or

submitted for approval prior to use in our operations or platform. Also, there exists today an increasing number of

types of open-source software licenses, and those licenses may not yet have faced legal challenges in courts that

could result in guidance to users in their efforts to avoid legal issues. If we were to receive a claim of non-

compliance with the terms of any of these licenses, not only would the potential exposure of our own source code be

very harmful to us, but we may be required to invest substantial time and resources to re-engineer some of our

software or license alternative software on terms unfavorable to us. Any of the foregoing may disrupt and harm our

intellectual property, business, financial condition, results of operations, and prospects.

Additionally, the use of certain open-source software can lead to greater risks than use of third-party

commercial software, as open-source licensors generally do not provide warranties or controls on the functionality

or origins of software or other contractual protections regarding infringement claims or the quality of the licensed

code, including with respect to security and architectural vulnerabilities. There is typically no support available for

open-source software and such software is ordinarily provided on an "as-is" basis, and we cannot be sure that the

authors of such open-source software will implement or push updates to address security risks or will not abandon

further development and maintenance. Many of the risks associated with the use of open-source software, such as

the lack of warranties or assurances of title or performance, cannot be eliminated, and could, if not properly

addressed, negatively affect our business. Use of open-source software may also present additional security risks

because the public availability of such software may make it easier for hackers and other third parties to determine

how to compromise our services. Further, our use of any AI solutions that use or incorporate any open-source

software may heighten any of the foregoing risks. Any of these risks could be difficult to eliminate or manage, and,

if not addressed, may harm our business, financial condition, results of operations, and prospects.

**Risks Related to Legal and Regulatory Matters**

***Our business and our offerings are subject to various governmental regulations, and compliance with these***

***regulations may cause us to incur significant expense. If we fail to comply with applicable regulations, we could***

***be subject to administrative, civil, and/or criminal penalties.***

Our business and our offerings are subject to various domestic and international laws and other legal

requirements, including packaging, product content, and labor regulations. Further, we are subject to various

governmental export and import controls that could subject us to liability or impair our ability to compete in our

markets, including the U.S. Export Administration Regulations ("EAR"), which are administered by the U.S.

Department of Commerce's Bureau of Industry and Security ("BIS"), as well as economic and trade sanctions,

including those administered by the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC").

U.S. export control laws and regulations restrict or prohibit the export, re-export, and in-country transfer of certain

commodities, software, and technology (including certain AI technologies) to restricted countries, governments,

persons, and entities. In addition, we are subject to similar export control laws and regulations in other jurisdictions,

including, without limitation, the EU and Canada, and could become subject to further export controls laws and

regulations in other jurisdictions.

Changes to sanctions or export or import restrictions in the jurisdictions in which we operate or have customers

could further impact our ability to do business in certain parts of the world and to do business with certain persons or

entities, which could adversely affect our business, operating results, financial condition, and future prospects. BIS

has changed and may again change the export control rules at any time and may impose additional export control

restrictions and elevated licensing requirements on certain components of our products. For example, we are

monitoring a proposed rule that BIS issued in January 2024, which would require, among other things, U.S.

providers of Infrastructure-as-a-Service ("IaaS") products, and resellers of such products, to verify the identity of

their foreign customers, and providers of certain IaaS products to submit a report to the U.S. Secretary of Commerce

when a foreign person transacts with that provider or one of its resellers to train a large AI model with potential

capabilities that could be used in malicious cyber-enabled activity. If the regulations go into effect as proposed and

are deemed to apply to our business, we may be required to expend substantial resources to comply with the

verification, reporting, recordkeeping, and resale enforcement requirements and may be restricted in our customer

base. We also are monitoring certain legislative developments, including, without limitation, the Remote Access

Security Act, which may impact third party access to our compute infrastructure.

Changes in our offerings, and changes in, or promulgation of, new export or import regulations, may delay the

introduction of our offerings into international markets, prevent our customers with international operations from

deploying our offerings globally or, in some cases, prevent the export or import of our offerings to certain countries,

governments, or persons altogether. Any change in export or import regulations, economic sanctions, or related

legislation, shift in the enforcement or scope of existing regulations or economic sanctions, or change in the

countries, governments, persons, or technologies targeted by such regulations or economic sanctions could result in

decreased or loss of revenue, including an inability to sell existing offerings to existing or potential customers. We

also may not be able to develop replacement offerings not subject to licensing and other requirements. We cannot

provide assurance that heightened attention on relations with the Middle East, including companies based therein,

and such region's AI ambitions, will not cause the U.S. government to adopt new regulations, or deny us necessary

regulatory approvals, that limit our ability to sell our offerings there or result in brand or reputational harm,

competitive harm, or financial harm.

In addition, any deterioration in the respective relations between the United States, China, Taiwan, the Middle

East, and other jurisdictions could lead to additional sanctions or export controls on such countries, regions, and

specific individuals or entities, which could impact our ability to sell to or source components from such locales or

otherwise negatively impact our business. In addition, trade regulations or other governmental actions targeted at

one country or entity may impact other countries or entities. Any decreased sales of our offerings, or limitation on

our ability to export or sell our offerings, would adversely affect our business, financial condition, result of

operations, and prospects. Further changes in trade or national security protection policy, tariffs, additional taxes,

restrictions on exports, or other trade barriers could impede the supply chain in this industry. Additional restrictions

could also provoke responses from foreign governments that negatively impact our supply chain, limit our ability to

obtain additional components or raw materials and produce products, increase our selling and/or manufacturing

costs, decrease margins, reduce the competitiveness of our offerings, reduce our ability to sell offerings, or reduce

our ability to have investments or mergers and acquisitions approved by governmental agencies, any of which may

harm our business, financial condition, results of operations, and prospects.

We are also subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, which have been

enforced aggressively in recent years. Although we have implemented policies and procedures designed to support

compliance with relevant economic sanctions, export controls, and anti-corruption laws, there can be no assurance

that our employees, partners, contractors, or agents will not violate such laws and regulations or our policies and

procedures. Any failure by us to comply with these laws or regulations may have adverse consequences for us,

including reputational harm, government investigations, possible loss of export or import privileges, and substantial

civil and criminal penalties. We may be required to incur significant expense to comply with, or to remedy

violations of, these regulations.

Our offerings or manufacturing standards may also be impacted by new or revised environmental rules and

regulations or other social initiatives, such as the EU Directive on Restriction of Hazardous Substances, the EU

Waste Electrical and Electronic Equipment Directive, and U.S. conflict mineral regulations. Compliance with such

regulations may increase the cost of doing business and any failure in compliance may subject us to adverse

consequences such as penalties, investigations, and mandatory re-designs of our offerings.

***Our offerings are subject to U.S. export controls and may be exported outside the United States only with the***

***required export license or through a license exception. We cannot guarantee that we will be successful in***

***obtaining all required licenses in the future. If we are unable to obtain licenses to export our offerings, our***

***business, financial condition, results of operations, and prospects may be harmed.***

Our offerings are subject to U.S. export controls, and generally may only be exported to customers located in

certain countries with prior licensing from the BIS. In particular, in October 2023, BIS announced updated licensing

requirements for exports of certain semiconductors and other items, including certain components of our products, to

countries in the EAR's Country Groups D:1, D:4 (which includes the United Arab Emirates, where our strategic

partner and largest customer, G42, is headquartered), and D:5. The licensing requirements also apply to the export of

these items to a party headquartered in, or with an ultimate parent headquartered in, Country Group D:5. In January

2025, BIS published its Framework for Artificial Intelligence Diffusion, which implemented a worldwide ecosystem

for the diffusion and use of AI and advanced computing integrated circuits. Although BIS has announced that it will

not enforce these rules, and plans to issue new rules on the export of these products in the future, the details are not

currently available.

The licensing process in time-consuming and historically has been difficult with respect to certain regions and

subject to shifting governmental policies. There is no assurance that BIS will grant licenses to export our offerings to

our customers or prospective customers. Because the export license process is uncertain, prospective customers of

our offerings may seek alternative suppliers who can more readily obtain a license or sell competitive products or

services that do not require a license to export.

Even if we are able to obtain an export license from BIS with respect to our products, the license may impose

burdensome conditions that we or our customer cannot accept and/or that require significant investment with respect

to security and compliance. For example, we have obtained export licenses for our CS-2, CS-3, and future CS-4

systems for export to G42 and MBZUAI in the United Arab Emirates, but the applicable licenses require that we and

our customer undertake certain rigorous security and compliance obligations to prevent diversion and abuse of our

technology. Managing these obligations will require additional investment in processes, technology and personnel,

and if we or our customers fail to comply with these conditions, the export license may be revoked, including after

we have manufactured the applicable products, and we may be subject to civil monetary fines, criminal sanctions,

and other administrative penalties (such as loss of export privileges), which may harm our reputation, business,

financial condition, results of operations, and prospects. To the extent we increase our business outside the United

States, our risks under these laws and regulations, as well as comparable laws in other countries where we operate or

plan to operate, would increase.

While we have implemented certain procedures to facilitate compliance with applicable laws and regulations,

we cannot ensure that these procedures are fully effective or that we, or third parties who we do not control, have

complied with all laws or regulations in this regard. Failure by our employees, representatives, contractors, partners,

agents, intermediaries, or other third parties (including our customers) to comply with applicable laws and

regulations also could have negative consequences to us, including reputational harm, government investigations,

loss of export privileges and penalties. To the extent we increase our business outside the United States, our risks

under these laws and regulations would increase.

These international trade laws, regulations, and policies may disadvantage us relative to competitors who sell

products or services that are not subject to U.S. export control restrictions or who may be able to acquire licenses for

their products that we are not able to obtain. Our competitive position and future results may be further harmed over

the long-term if there are further changes in BIS export controls, including further expansion of the geographic,

customer, or product scope of the controls applicable to our products, if customers purchase products from

competitors, if customers develop their own internal solutions to avoid the need to purchase our products, if we are

unable to provide contractual warranty or other extended service obligations, if BIS does not grant licenses in a

timely manner or denies licenses relating to significant customers, or if we incur significant transition costs. Even if

BIS grants requested licenses, the licenses may be temporary, limited in volume or quantity, or impose burdensome

conditions that we or our customers or end users cannot or choose not to fulfill. The licensing requirements may

benefit certain of our competitors who have more presence and influence with the government, and encourage

customers to pursue alternatives to our products, including semiconductor suppliers based in China, Europe, and

Israel. If we are unable to manage new licenses and other requirements or obtain export licenses in the future, our

business, financial condition, results of operations, and prospects may be harmed.

***Sales to government entities and highly regulated organizations are subject to a number of challenges and risks.***

We have sold in the past, and may sell in the future, our offerings to governmental agencies or entities and

customers in highly regulated industries, such as healthcare and financial services. Selling to such entities can be

highly competitive, expensive, and time consuming, often requiring significant upfront time and expense without

any assurance that these efforts will generate a sale. In addition, government demand and payment for our offerings

are affected by changes in administration, public sector budgetary cycles and funding authorizations, and

government contracting requirements may change from time to time, any of which can limit our ability to sell into

the government sector. In certain foreign jurisdictions, our ability to win business may be constrained by political or

other factors unrelated to our competitive position in the market.

Further, government and other highly regulated entities can have more complex IT and data environments, and

often have longer implementation or deployment cycles than others. They have and may continue to demand

contract terms that differ from our standard arrangements and may be less favorable than terms agreed with other

private sector customers, and may expect greater payment flexibility. Government contracts may contain provisions

that give the government substantial rights and remedies, many of which are not typically found in commercial

contracts, including provisions relating to intellectual property "march-in" rights, preferential pricing, refund rights,

obligation modifications, U.S. manufacturing requirements, export control, and termination or non-renewal due to

funding availability.

Government contracting requirements may change and in doing so restrict our ability to sell into the

government sector until we have obtained any required government certifications. Further, to contract with certain

government agencies, some of our employees may be required to have security clearances. Obtaining and

maintaining such security clearances is a lengthy process. If our employees are unable to obtain or maintain such

clearances, or we cannot recruit employees with such clearances, it would harm our ability to sell to, or work with,

such government agencies, which may harm our business, results of operations, and financial condition. Government

demand and payment for our offerings are affected by public sector budgetary cycles and funding authorizations,

with funding reductions or delays adversely affecting public sector demand for our solutions.

As a government contractor or subcontractor, we must comply with laws, regulations, and contractual

provisions relating to the formation, administration, and performance of government contracts, all of which may

impose additional costs on our business. Governments routinely investigate and audit government contractors'

administrative processes, and any unfavorable audit could result in the government refusing to continue purchasing

our offerings. In addition, as a result of actual or perceived noncompliance with government contracting laws,

regulations, or contractual provisions, we may be subject to non-ordinary course audits and internal investigations

which may prove costly to our business financially, divert management attention or limit our ability to continue

selling our offerings to our government customers. Failure to comply with these or other applicable regulations and

requirements could lead to claims for damages, downward contract price adjustments or refund obligations, civil or

criminal penalties, and termination of contracts and suspension or debarment from government contracting for a

period of time with government agencies. Any such damages, penalties, disruption of, or limitation in our ability to

do business with a government would harm our reputation, business, financial condition, results of operations, and

prospects.

***Our global operations expose us to numerous legal and regulatory requirements and failure to comply with such***

***requirements, including unexpected changes to such requirements, may harm our results of operations.***

We service our customers around the world. We are subject to numerous, and sometimes conflicting, legal

regimes of the United States and foreign national, state, and provincial authorities on matters as diverse as anti-

corruption, trade restrictions, tariffs, taxation, sanctions, anti-competition, intellectual property, data security, and

privacy. U.S. laws may be different in significant respects from the laws of countries where we operate or we or our

customers may enter, forcing businesses to choose between compliance with conflicting legal regimes. We also may

seek to expand operations in emerging market jurisdictions where legal systems are less developed or familiar to us.

In addition, there can be no assurance that the laws or administrative practices relating to taxation (including

with respect to income and withholding taxes), foreign exchange, export controls, economic sanctions, or otherwise

in the jurisdictions where we have operations will not change. Changes in tax laws in some jurisdictions may also

have a retroactive effect and we may be found to have paid less tax than required in such jurisdictions. Compliance

with diverse legal requirements is costly, time consuming and requires significant resources. Violations of one or

more of these regulations in the conduct of our business could result in significant fines, criminal sanctions against

us or our officers, prohibitions on doing business and damage to our reputation. Violations of these regulations in

connection with the performance of our obligations to our customers also could result in liability for significant

monetary damages, fines or criminal prosecution, unfavorable publicity and other reputational damage, and

allegations by our customers that we have not performed our contractual obligations. Due to the varying degrees of

development of the legal systems of the countries in which we operate, local laws might be insufficient to protect

our rights.

***Our global operations and collection, storage, use and other processing of proprietary, confidential, and sensitive***

***information, including personal information, expose us to numerous data privacy and security laws, regulations,***

***contractual requirements, and other obligations relating to data privacy and security, and the actual or perceived***

***failure to comply with such obligations, including unexpected changes to such obligations, may harm our***

***business, financial condition, results of operations, and prospects.***

The processing of personal information, including the personal information of our employees and customers,

makes us, or may make us, subject to a complex patchwork of evolving data privacy and security laws that are not

always interpreted uniformly. Additionally, we may be bound by contractual requirements applicable to our

collection, storage, transmission, use and other processing of proprietary, confidential, and sensitive information,

including personal information, and may be bound or asserted to be bound by, or voluntarily comply with, self-

regulatory or other industry standards relating to the processing of such information. These laws, rules, regulations,

industry standards, contractual requirements and other obligations are constantly evolving, and we expect that we

will continue to become subject to new proposed laws, rules, regulations, industry standards, contractual

requirements and other obligations in the United States and other jurisdictions where we operate. This evolution,

among other things, may create uncertainty in our business; affect us or our collaborators', service providers' and

contractors' ability to operate in certain jurisdictions or to collect, store, transfer, use and share personal information;

necessitate the acceptance of more onerous obligations in our contracts; result in liability; or impose additional costs

on us; necessitate changes to our IT systems, and practices and to those of any third parties that process personal

information on our behalf, or require us to change our business model. There is no guarantee that regulators or

consumers will agree with our approach to compliance and any failure, or perceived failure, to comply with

applicable data privacy or security laws or regulations may harm our business, financial condition, results of

operations, and prospects.

In the United States, numerous state and federal laws, regulations, standards, and other legal obligations,

including consumer protection laws and regulations, which govern the collection, dissemination, use, access to,

confidentiality, security, and other processing of personal information, including certain health-related information,

apply to our operations or the operations of our customers, third-party service providers, or partners. For example,

we are subject to the rules and regulations promulgated under the authority of the Federal Trade Commission

("FTC"), which, together with many state Attorneys General, has the authority to regulate and enforce against unfair

or deceptive acts or practices in or affecting commerce, including acts and practices with respect to privacy, data

protection and cybersecurity. According to the FTC, failing to take appropriate steps to keep consumers' personal

information secure can constitute unfair acts or practices in or affecting commerce in violation of Section 5(a) of the

Federal Trade Commission Act. The FTC expects a company's data security measures to be reasonable and

appropriate in light of the sensitivity and volume of consumer information it holds, the size and complexity of its

business, and the cost of available tools to improve security and reduce vulnerabilities. Congress also has

considered, and continues to consider, many proposals for comprehensive national privacy, data protection, and

cybersecurity legislation, including with respect to AI, to which we may become subject if enacted.

Additionally, the Health Insurance Portability and Accountability Act of 1996, and regulations promulgated

thereunder ("HIPAA") imposes privacy, security, and breach notification obligations on covered entities, as well as

their business associates that process certain health-related information on their behalf. Depending on the facts and

circumstances, we could be subject to significant civil, criminal, and administrative fines and penalties and/or

additional reporting and oversight obligations if found to be in violation of HIPAA.

Certain U.S. states have also adopted comparable data privacy and security laws and regulations, which govern

the privacy, processing, and protection of personal information. Such laws and regulations will be subject to

interpretation by various courts and other governmental authorities, thus creating potentially complex compliance

issues for us and our future customers and strategic partners. For example, the California Consumer Privacy Act, as

amended by the California Privacy Rights Act (collectively, the "CCPA"), provides for enhanced privacy rights for

California residents and requires covered businesses that process the personal information of California residents to,

among other things: (i) provide certain disclosures to California residents regarding the business's collection, use,

and disclosure of their personal information; (ii) receive and respond to requests from California residents to access,

delete, and correct their personal information, or to opt out of certain disclosures of their personal information; and

(iii) enter into specific contractual provisions with service providers that process California resident personal

information on the business's behalf. The CCPA is enforced by the California Attorney General and the California

Privacy Protection Agency ("CPPA"), and provides for civil penalties for certain violations, as well as a private right

of action for certain data breaches that may increase the likelihood of and risks associated with data breach litigation.

In addition, numerous other states have enacted, or are in the process of enacting or considering, comprehensive

state-level privacy, data protection and cybersecurity laws, rules and regulations that share similarities with the

CCPA, which creates the potential for a patchwork of overlapping but different domestic privacy laws. In addition,

all 50 states have laws that require the provision of notification for breaches of personal information to affected

individuals, state officers or others. Noncompliance with HIPAA, FTC rules and regulations, the CCPA, or other

U.S. privacy laws may result in enforcement actions, litigation, or other disputes and expose us to additional

liability, which could harm our business, financial condition, results of operations, and prospects.

We may also be subject to evolving privacy laws on cookies, tracking technologies, marketing, advertising, and

other activities conducted by telephone, email, mobile devices, and the internet, and similar state consumer

protection and communication privacy laws, such as California's Invasion of Privacy Act. Regulation of cookies and

similar technologies may lead to broader restrictions on our marketing and personalization activities, as well as the

effectiveness of our marketing. Such regulations may have a negative effect on our business. We may also be subject

to fines and penalties for noncompliance with any such laws and regulations. The decline of cookies or other online

tracking technologies as a means to identify and target potential customers may increase the cost of operating our

business and lead to a decline in revenue. In addition, legal uncertainties about the legality of cookies and other

tracking technologies may increase regulatory scrutiny and increase potential civil liability under data protection or

consumer protection laws. Claims that we have violated such laws could be costly to litigate, whether or not they

have merit, and could expose us to substantial statutory damages or costly settlements.

We are also required or may be required to comply with foreign data privacy and security laws in jurisdictions

in which we have offices or conduct business. For example, in Europe, the EU General Data Protection Regulation

and applicable national supplementing laws (collectively, the "GDPR") impose strict requirements for processing

the personal data of individuals within the European Economic Area ("EEA") or for activities within the EEA.

Following the withdrawal of the UK from the EU, we may also be subject to the UK General Data Protection

Regulations and Data Protection Act 2018 (collectively, the "UK GDPR"). The GDPR and UK GDPR are wide-

ranging in scope and impose numerous additional requirements on companies that process personal data, including

imposing special requirements in respect of the processing of personal data, requiring that consent of individuals to

whom the personal data relates is obtained in certain circumstances, requiring additional disclosures to individuals

regarding information processing activities, requiring that safeguards are implemented to protect the security and

confidentiality of personal data, creating mandatory data breach notification requirements in certain circumstances

and requiring that certain measures (including contractual requirements) are put in place when engaging third-party

processors. The GDPR and UK GDPR also provide individuals with various rights in respect of their personal data,

including rights of access, erasure, portability, rectification, restriction, and objection. Failure to comply with the

GDPR and the UK GDPR can result in significant fines and other liability. European data protection authorities have

shown a willingness to impose significant fines and issue orders preventing the processing of personal information

on non-compliant businesses and have imposed fines for GDPR violations up to, in some cases, hundreds of millions

of Euros. While the UK GDPR currently imposes substantially the same obligations as the GDPR, the UK

government recently enacted the Data Use and Access Act 2025, which became law in June 2025 and will continue

to be phased in through 2026. This new legislation introduces reforms that diverge from the EU GDPR, and may

require us to implement additional compliance measures under the new framework. These changes create risk of

divergent parallel regimes and related uncertainty, along with the potential for increased compliance costs and risks

for affected businesses, as we are no longer able to take a unified approach across the EEA and UK.

Among other requirements, the GDPR regulates transfers of personal data subject to the GDPR or UK GDPR to

so-called third countries outside the EEA and the UK that have not been determined by the relevant data protection

authorities to provide an adequate level of protection to such personal data, including the United States, and the

efficacy and longevity of current transfer mechanisms between the EEA, and the United States remains uncertain.

Case law from the Court of Justice of the EU indicates that reliance on the standard contractual clauses—a standard

form of contract approved by the European Commission as an adequate personal data transfer mechanism—alone

may not necessarily be sufficient in all circumstances and that transfers must be assessed on a case-by-case basis. In

July 2023, the European Commission adopted an adequacy decision in relation to the new EU-U.S. Data Privacy

Framework ("DPF") rendering the DPF effective as a GDPR transfer mechanism for personal data transferred from

the EEA to the U.S. by U.S. entities self-certified under the DPF. In October 2023, the UK Extension to the DPF

came into effect, as approved by the UK government, as a data transfer mechanism from the UK to U.S. entities self-

certified under the DPF. However, the DPF adequacy decisions do not foreclose, and are likely to face, future legal

challenges and the ongoing legal uncertainty with respect to international data transfers may increase our costs and

our ability to efficiently process personal data from the EEA or the UK. In addition to the ongoing legal uncertainty

with respect to data transfers from the EEA or the UK, additional costs may need to be incurred in order to

implement necessary safeguards to comply with the GDPR and the UK GDPR, and potential new rules and

restrictions on the flow of data across borders could increase the cost and complexity of conducting business in some

markets. If our policies and practices or those of our third-party vendors, service providers, contractors or

consultants are, or are perceived to be, insufficient, or if our customers or others have concerns regarding our

transfer of personal data from the EEA or the UK to the United States, we could be subject to enforcement actions or

investigations, including by individual EU or UK data protection authorities, or lawsuits by private parties. Other

jurisdictions outside the EU and the UK are similarly introducing or enhancing privacy, data protection and

cybersecurity laws, rules, and regulations, which could increase our compliance costs and the risks associated with

noncompliance. We cannot yet fully determine the impact these or future laws, rules, and regulations may have on

our business or operations. These laws, rules and regulations may be inconsistent from one jurisdiction to another,

subject to differing interpretations and may be interpreted to conflict with our practices.

While we have implemented various measures to help ensure that our policies, processes, and systems are in

compliance with our legal obligations with respect to our collection, storage, use and other processing of proprietary,

confidential and sensitive information, including personal information, any inability, or perceived inability, to

adequately address privacy concerns or comply with applicable laws, even if unfounded, may result in significant

regulatory and third-party liability, increased costs, disruption of our business and operations, and a loss of client

confidence and other reputational damage. Furthermore, as new privacy-related laws and regulations are

implemented, the time and resources needed for us to seek compliance with such laws and regulations continues to

increase.

***The AI industry is subject to complex, evolving regulatory, statutory, and other requirements that may be difficult***

***and expensive to comply with and that could negatively impact our business.***

The regulatory framework for our offerings, including our AI computing solutions and AI model services, is

rapidly evolving as many federal, state, and foreign government bodies and agencies have introduced or are

currently considering additional laws and regulations related to AI. Additionally, existing laws and regulations may

be interpreted in ways that would affect our or our customers' operations, or our ability to offer our AI offerings in

the markets in which we operate. As a result, implementation standards and enforcement practices are likely to

remain uncertain for the foreseeable future, and we cannot yet determine the impact future laws, regulations,

standards, or market perception of their requirements may have on our business, and we may not be able to

adequately anticipate or respond to these evolving laws or regulations. In addition, because AI-related technologies

are themselves highly complex and rapidly developing, it is not possible to predict all of the legal or regulatory risks

that may arise relating to our use of such technologies. New laws, guidance or decisions in this area could provide a

new regulatory framework that may require us to adjust and make changes to our operations that may decrease our

operational efficiency, resulting in an increase to operating costs and/or hindering our ability to improve our

offerings.

Already, certain existing legal regimes (including, those related to data privacy and cybersecurity) regulate

certain aspects of AI models and automated decision-making, and new laws regulating AI technologies have entered

into force in the United States and the EU. For example, in the United States, the current presidential administration

rescinded in 2025 an executive order relating to the safe and secure development of AI technologies that was

previously implemented by the former administration in 2023. The administration then issued a new executive order

that, among other things, requires certain agencies to develop and submit to the President action plans to "sustain

and enhance America's global AI dominance," and to specifically review and, if possible, rescind rulemaking taken

pursuant to the rescinded executive order. In July 2025, the current administration further issued America's AI

Action Plan, focusing on the three pillars of innovation, infrastructure, and international diplomacy and security in

AI, and seven underlying principles. The current administration may continue to rescind other existing federal orders

and/or administrative policies relating to AI technologies, or may implement new executive orders and/or other rule

making relating to AI technologies in the future. Any such changes at the federal level could require us to expend

significant resources to modify our products, services, or operations to ensure compliance with old frameworks or

meet new obligations. There is currently no comprehensive federal legislation in the United States concerning the

use, development, or deployment of AI. Despite the lack of comprehensive legislation, federal regulators are

continuing to pursue AI-related enforcement actions under existing federal laws. In addition, legislation related to AI

has both been enacted and is advancing at the state level. For example, Utah passed the AI Policy Act, which took

effect in May 2024, imposing certain disclosure requirements on the use of AI, and Colorado enacted the Colorado

AI Act, which will take effect in June 2026. In addition, California recently finalized regulations under the CCPA

regarding the use of automated decision-making, and has enacted several AI-related laws, including laws requiring

certain AI providers to implement transparency and safety measures. Any of such regulations, or any similar

regulations, may impact the development, use, and commercialization of AI in the future.

Further, in Europe, the AI Act, which establishes a comprehensive, risk-based governance framework for AI in

the EU market applies to, amongst other entities, providers, importers, and distributors of AI systems or general-

purpose AI models that are placed on the EU market or put into service or used in the EU. The AI Act entered into

force in August 2024, with the majority of the AI Act's substantive requirements coming into effect in 2026. The AI

Act establishes a risk-based governance framework for regulating high-risk AI systems and categorizes AI systems

based on the risks associated with such AI systems' intended purposes as creating "unacceptable," "high," or

"limited" risks. The AI Act also includes various requirements for providers, importers, distributors, and users of AI

systems in the EU, including with respect to transparency, conformity assessments and monitoring, risk assessments,

human oversight, security and accuracy, general-purpose AI models, and foundation models, and introduces

significant penalties of up to 7% of global revenue. While the AI Act has yet to be enforced, there is a risk that our

current or future offerings may be subject to heightened obligations under the AI Act, requiring us to comply with

the applicable requirements of the AI Act, which may impose additional costs on us, increase our risk of liability or

adversely affect our business. Even if our offerings are not categorized as "unacceptable" or "high" risk under the AI

Act, we may be subject to additional transparency and other obligations for providers, distributors, or importers of

AI systems, which may require us to expend resources to comply with such obligations. There are also specific

obligations regarding the use of automated decision-making under the GDPR. The AI Act and GDPR may have a

material impact on the way AI is regulated, and developing interpretation and applications of the foregoing, together

with developing guidance and/or decisions in this area, may affect our planned business activities involving the

development and/or use of AI. Additionally, our customers may become subject to such upcoming AI regulations,

which could cause a delay or impediment to the commercialization of AI technologies and could lead to a decrease

in demand for our customers' AI systems. It is likely that further new laws and regulations will be adopted in the

United States and in other non-U.S. jurisdictions, or that existing laws and regulations, including competition and

antitrust laws, may be interpreted in ways that would limit ours or our customers' ability to use AI or in a manner

that negatively affects the performance of our products, services, and business. We may need to expend resources to

adjust our AI offerings in certain jurisdictions if the laws, regulations, or decisions are not consistent across

jurisdictions. Further, the cost to comply with such laws, regulations, or decisions and/or guidance interpreting

existing laws could be significant and would increase our operating expenses (such as by imposing additional

reporting obligations). Such an increase in operating expenses, as well as any actual or perceived failure to comply

with such laws and regulations, could adversely affect our business, financial condition, results of operations, and

prospects. The regulatory environment surrounding the implementation of AI technologies may adversely affect our

ability to produce and export our offerings and as a result may cause harm to our reputation, business, financial

condition, results of operations, and prospects.

***We may be subject to litigation, investigations, or other actions, which may lead us to incur significant costs and***

***harm our business and our stockholders.***

We are, and may become, party to lawsuits and claims arising in the normal course of business, which may

include putative class action suits or other lawsuits, investigations or other claims relating to intellectual property,

open-source software, customer matters, our marketing and sales practices, contracts, employment matters,

regulatory compliance, or other aspects of our business.

Many companies in the semiconductor industry own large numbers of patents, copyrights, trademarks, domain

names, and trade secrets, and frequently enter into litigation based on allegations of infringement, misappropriation,

or other violations of intellectual property or other rights. As we face increasing competition and gain a higher

profile, the possibility of intellectual property rights claims against us grows.

Defending any lawsuit, even when comprised of unmeritorious claims, is costly and can impose a significant

burden on, and divert the attention of, management and employees, and harm our reputation. As litigation is

inherently unpredictable, we cannot assure you that any potential claims or disputes will not harm our business,

financial condition, results of operations, and prospects. Any claims or litigation, even if fully indemnified or

insured, may make it more difficult to effectively compete or to obtain adequate insurance in the future. Any

litigation to which we are a party may result in an onerous or unfavorable judgment that may not be reversed upon

appeal, or in the payment of substantial monetary damages or fines, or we may decide to settle lawsuits on similarly

unfavorable terms, which may harm our business, financial condition, results of operations, and prospects. In the

case of an unfavorable outcome in intellectual property case, we could also be required to:

• pay substantial damages for past, present, and future use of the infringing technology;

• cease use of an infringing product (or component), which may involve redesigning a product or component

part so that it does not infringe;

• expend significant resources to develop non-infringing technology;

• license technology from the third-party claiming infringement, which license may not be available on

commercially reasonable terms, or at all;

• enter into cross-licenses with our competitors, which could weaken our overall intellectual property

portfolio and our ability to compete in particular product categories;

• indemnify our customers;

• pay substantial damages to our direct or end customers to discontinue use or replace infringing technology

with non-infringing technology; or

• relinquish intellectual property rights associated with one or more of our patent claims if such claims are

held invalid or otherwise unenforceable.

Any of the foregoing results may harm our business, financial condition, results of operations, and prospects.

***We may be subject to warranty claims and product liability.***

From time to time, we may be subject to warranty or product liability claims arising from defects or perceived

defects in our products or in third-party components that we integrate into our products, which may lead to

significant expenses. If a customer's equipment fails in use, the customer may incur significant expenses, as well as

lost revenue. The customer may claim that a defect in our product caused the equipment failure and assert a claim

against us to recover monetary damages, including indirect and consequential damages. The process of identifying a

defective or potentially defective product in complex systems may be lengthy and require significant resources, and

we may incur significant replacement costs and contract damage claims from our customers. In certain situations, we

may consider incurring the costs or expenses related to a recall of one of our products in order to avoid the potential

claims that may be raised should customer suffer a failure due to a design or manufacturing process defect. Any such

liabilities may greatly exceed any revenue we receive from the relevant products. Costs, payments, or damages

incurred or paid by us in connection with warranty and product liability claims could exceed our product liability

insurance coverage, or warranty reserves, and could harm our business, financial condition, results of operations,

and prospects.

***Regulations related to conflict minerals may cause us to incur additional expenses and may limit the supply and***

***increase the costs of certain metals used in the manufacturing of our products.***

We are subject to requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of

2010, requiring us to conduct due diligence on and disclose whether certain conflict minerals originating from

certain countries and geographic regions are necessary for the manufacture or functionality of our products. The

implementation of these requirements could adversely affect the sourcing, availability, and pricing of the materials

used in the manufacture of components used in our products. In addition, we will incur additional costs to comply

with the potential disclosure requirements, including costs related to conducting diligence procedures to determine

the sources of minerals that may be used or necessary to the production of our products and, if applicable, potential

changes to products, processes, or sources of supply as a consequence of such due diligence activities. It is also

possible that we may face reputational harm if we determine that any of our products contain minerals not

determined to be free of conflict minerals or if we are unable to alter our products, processes, or sources of supply to

avoid such materials.

**Risks Related to Financial and Accounting Matters**

***We identified material weaknesses in our internal control over financial reporting. If we are unable to remediate***

***these material weaknesses, or if we identify additional material weaknesses in the future or otherwise fail to***

***maintain an effective system of internal controls, we may not be able to accurately or timely report our financial***

***condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value***

***of our Class A common stock.***

Prior to the completion of this offering, we have been a private company since our inception and, as such, we

have not had the internal control and financial reporting requirements that are required of a publicly traded company.

In connection with the preparation of our financial statements, we identified certain material weaknesses in our

internal control over financial reporting, including most recently for the year ended December 31, 2024. A material

weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there

is a reasonable possibility that a material misstatement of our financial statements will not be prevented or detected

on a timely basis.

The material weaknesses that we identified relate to (i) inadequate or missing resources who possess an

appropriate level of expertise to timely review account reconciliations and identify, select, and apply U.S. generally

accepted accounting principles ("GAAP") pertaining to several financial statement areas, including revenue

recognition, inventory, and equity administration and (ii) the failure to maintain adequate IT general controls,

including ineffective segregation of duties.

In response to the identified material weaknesses, we have begun adding additional resources, formalizing

processes, and implementing new controls. We have hired, and continue to hire, additional accounting and finance

personnel with expertise we believe to be appropriate to strengthen our overall controls over the review of account

reconciliations, the application of GAAP, and the IT environment. We intend to continue to take steps to remediate

these material weaknesses. The material weaknesses will not be considered remediated until management designs

and implements effective controls that operate for a sufficient period of time and management has concluded,

through testing, that these controls are effective. Our management will monitor the effectiveness of our remediation

plans and will make changes determined to be appropriate.

We can give no assurance that the measures we have taken and plan to take in the future will remediate the

material weaknesses identified or that any additional material weaknesses or restatements of financial results will not

arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or

circumvention of these controls. If the steps we take do not correct these material weaknesses in a timely manner,

we will be unable to conclude that we maintain effective internal control over financial reporting. Accordingly, there

could continue to be a reasonable possibility that a material misstatement of our financial statements would not be

prevented or detected on a timely basis. We have limited experience with implementing the systems and controls

that will be necessary to operate as a public company. If these new systems or controls and the associated process

changes do not give rise to the benefits that we expect or do not operate as intended, it may harm our financial

reporting systems and processes, our ability to produce timely and accurate financial reports or the effectiveness of

internal control over financial reporting.

If we fail to remediate our existing material weaknesses or identify new material weaknesses in our internal

control over financial reporting, if we are unable to comply with the disclosure and attestation requirements of

Section 404 of the Sarbanes-Oxley Act in a timely manner, if we are unable to conclude that our internal control

over financial reporting is effective, or if our independent registered public accounting firm is unable to conclude

that our internal control over financial reporting is effective when we are no longer an emerging growth company,

investors may lose confidence in the accuracy and completeness of our financial reports and the price of our Class A

common stock could be negatively affected. As a result, we could also become subject to investigations by

the Nasdaq Stock Market LLC ("Nasdaq"), the SEC, or other regulatory authorities, and become subject to litigation

from stockholders, which could harm our reputation and financial condition or divert financial and management

resources from our regular business activities.

In addition, even if we are successful in strengthening our controls and procedures, in the future those controls

and procedures may not be adequate to prevent or identify irregularities or errors or to facilitate the fair presentation

of our financial statements.

***If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our***

***ability to produce timely and accurate financial statements or comply with applicable regulations may be harmed.***

As a public company, we will be subject to the reporting requirements of the Exchange Act of 1934, as

amended (the "Exchange Act"), the Sarbanes-Oxley Act, and the stock exchange listing requirements. We expect

that the requirements of these rules and regulations will continue to increase our legal, accounting, and financial

compliance costs, make some activities more difficult, time-consuming, and costly, and place significant strain on

our personnel, systems, and resources.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and

procedures and internal control over financial reporting. We are continuing to develop and refine our disclosure

controls and other procedures that are designed to ensure that information required to be disclosed by us in the

reports that we will file with the SEC is recorded, processed, summarized, and reported within the time periods

specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is

accumulated and communicated to our principal executive and financial officers. We are also continuing to improve

our internal control over financial reporting, which includes hiring additional accounting and financial personnel to

implement such processes and controls.

We have identified material weaknesses in our internal control over financial reporting in the past, most recently

for the year ended December 31, 2024, and cannot assure you that there will not be material weaknesses or

significant deficiencies in our internal controls in the future. In order to maintain and improve the effectiveness of

our disclosure controls and procedures and internal control over financial reporting, we have expended, and

anticipate that we will continue to expend, significant resources, including accounting-related costs, new internal

processes and procedures, and significant management oversight. If any of these new or improved controls and

systems do not perform as expected, we may experience further deficiencies in our controls.

Our current controls and any new controls that we develop may become inadequate because of changes in

conditions in our business. Further, to the extent we acquire other businesses, the acquired company may not have a

sufficiently robust system of controls and we may discover deficiencies. Any failure to develop or maintain effective

controls or any difficulties encountered in their implementation or improvement may harm our results of operations

or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for

prior periods. Any failure to implement and maintain effective internal control over financial reporting also may

adversely affect the results of periodic management evaluations and annual independent registered public accounting

firm attestation reports regarding the effectiveness of our internal control over financial reporting that we will

eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure

controls and procedures and internal control over financial reporting could also cause investors to lose confidence in

our reported financial and other information, which would likely cause the price of our Class A common stock to

decline. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on

a stock exchange. We are not currently required to comply with the SEC rules that implement Section 404 of the

Sarbanes-Oxley Act and are therefore not required to make a formal assessment of the effectiveness of our internal

control over financial reporting for that purpose. As a public company, we will be required to provide an annual

management report on the effectiveness of our internal control over financial reporting commencing with our second

annual report on Form 10-K.

Upon becoming a public company, and particularly after we are no longer an "emerging growth company," we

expect our independent registered public accounting firm will be required to formally attest to the effectiveness of

our internal control over financial reporting. At such time, our independent registered public accounting firm may

issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial

reporting is documented, designed, or operating. Any failure to maintain effective disclosure controls and internal

control over financial reporting may harm our business, financial condition, results of operations, and prospects, and

may cause the price of our Class A common stock to decline.

***We may have a limited ability to use some or all of our net operating loss carryforwards in the future.***

As a result of prior operating losses, we have significant NOL carryforwards for federal income tax purposes.

Our ability to utilize our NOLs to reduce taxable income in future years could become subject to significant

limitations under Section 382 of the U.S. Internal Revenue Code of 1986, as amended (the "Code") if we undergo an

"ownership change" within the meaning of Section 382, or the value of such NOLs could be reduced in the event

that the relevant rules under the Code were to be revised. We would undergo an ownership change if, among other

things, the stockholders who own, directly or indirectly, 5% or more of our common stock, or are otherwise treated

as "5% shareholders" under Section 382 of the Code and the regulations promulgated thereunder, increase their

aggregate percentage ownership of our stock by more than 50 percentage points over the lowest percentage of the

stock owned by these stockholders at any time during the testing period, which is generally the three-year period

preceding the potential ownership change. We may have experienced ownership changes in the past and may

experience ownership changes in the future. Similar rules may apply under state tax laws.

There is also a risk that due to regulatory changes, such as suspensions on the use of NOLs or other reasons, our

existing NOLs could expire or otherwise be unavailable to reduce future income tax liabilities, including for state tax

purposes. For these reasons, we may not be able to utilize a material portion of the NOLs reflected on our balance

sheet, even if we attain profitability, which may potentially result in increased future tax liability to us and may harm

our results of operations and financial condition.

***Unanticipated changes in our effective tax rate and additional tax liabilities may impact our results of operations.***

We are subject to taxes in the United States and certain foreign jurisdictions. Due to economic and political

conditions, tax rates in various jurisdictions, including the United States, may be subject to change. For example, the

U.S. government may enact significant changes to the taxation of business entities, including, among others, a

permanent increase in the corporate income tax rate, an increase in the tax applicable to "net CFC tested income"

and the imposition of minimum taxes or surtaxes on certain types of income. Our future effective tax rates could be

affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of

deferred tax assets and liabilities and changes in tax laws or their interpretation.

We may also be subject to additional tax liabilities and penalties due to changes in non-income based taxes

resulting from changes in federal, state, or foreign tax laws, changes in taxing jurisdictions' administrative

interpretations, decisions, policies and positions, results of tax examinations, settlements or judicial decisions,

changes in accounting principles, changes to the business operations, including acquisitions, as well as the

evaluation of new information that results in a change to a tax position taken in a prior period. We are currently

unable to predict whether such changes will occur and, if such changes occur, the ultimate impact on our tax

liabilities. Any resulting increase in our tax obligation or cash taxes paid may harm our cash flows and results of

operations.

***We expect to require additional capital to support business growth, and this capital might not be available when***

***needed on favorable terms or at all.***

We intend to continue to make investments to support our business growth and may require additional funds to

respond to business challenges and opportunities, including the need to develop new products or services, enhance

our existing offerings, enhance our operating infrastructure, expand internationally, and acquire complementary

businesses and technologies. In order to achieve these objectives, we expect to require additional capital resources in

the future, and may determine to raise additional funds. If we raise additional funds through future issuances of

equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity

securities we issue could have rights, preferences, and privileges superior to those of holders of our Class A common

stock. In addition, the incurrence of indebtedness would increase our fixed obligations, and may include covenants

or other restrictions that impede our ability to manage our operations. We may not be able to obtain additional

financing on terms favorable to us when needed, or at all. Our inability to obtain adequate financing or financing on

terms satisfactory to us, when we require it, could significantly limit our ability to continue supporting our business

growth and responding to business challenges and opportunities.

Some of our suppliers provide us with a line of credit to meet the needs of our normal business requirements.

Most of our suppliers set dollar limits on the trade credit they will afford us at any given time. If our suppliers were

to cease to sell to us on trade credit terms or were to substantially lower the credit limits they have set on our open

accounts, we would need to accelerate our payments to those suppliers, creating additional demands on our cash

resources, or we would need to find other sources for those goods. Further, some of our customers advance us funds

pursuant to their purchase order, which we are required to hold in trust to be used only for the purposes specified in

such purchase order. Under certain circumstances, we may be required to refund the portion of the advanced funds

that has not yet been used for the specified purposes on demand, and we may not have enough available cash or be

able to obtain financing at the time we are required to repay the portion of the advanced funds. The customer may

also take title to the components purchased using the advanced funds. Additionally, we may have to pay taxes on the

customer advances before we have recognized any revenue from the components purchased with the advanced

funds. Our inability to repay the advanced funds when required, or the requirement to pay taxes prior to recognizing

revenue may harm our business, financial condition, results of operations, and prospects.

***Our results of operations may be harmed by changes in financial accounting standards or by the application of***

***existing or future accounting standards to our business as it evolves.***

Our reported results of operations are impacted by the accounting standards promulgated by the SEC and

accounting standards bodies and the methods, estimates, and judgments that we use in applying our accounting

policies. A change in accounting standards may have a significant effect on our reported results of operations and

may even affect the reporting of transactions completed before the announcement or effectiveness of a change. The

frequency of accounting standards changes could accelerate, including conversion to unified international

accounting standards. Any future changes to accounting standards may cause our results of operations to fluctuate.

As we enhance, expand, and diversify our business, products, and services, the application of existing or future

financial accounting standards may harm our results of operations or financial condition.

**Risks Related to this Offering and Ownership of Our Class A Common Stock**

***The price of our Class A common stock may be volatile and may decline regardless of our operating***

***performance, and you may lose all or part of your investments.***

The price of our Class A common stock may fluctuate significantly in response to numerous factors, many of

which are beyond our control, including:

• overall performance of the equity markets and/or publicly listed semiconductor companies.

• actual or anticipated fluctuations in our financial and operating metrics;

• an adverse development in our strategic partnership with G42 or a material reduction in purchases by G42

or MBZUAI, or the anticipation of such events;

• changes in the financial projections we provide to the public or our failure to meet these projections;

• failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any

securities analysts who follow our company, or our failure to meet the estimates or the expectations of

investors or analysts;

• the economy as a whole and market conditions in our industry;

• rumors and market speculation, and operating results and forecasts, involving us or other companies in our

industry;

• announcements by us or our competitors of significant innovations, acquisitions, strategic partnerships,

joint ventures, or capital commitments;

• new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

• lawsuits threatened or filed against us;

• recruitment or departure of key personnel;

• changes in the U.S. regulatory environment impacting jurisdictions with which we can transact;

• other events or factors, including those resulting from war, incidents of terrorism, or responses to these

events;

• conversions of shares of non-voting Class N common stock into shares of Class A common stock; and

• anticipated sales of our common stock, including upon the expiration of lock-up or market standoff

agreements described elsewhere in this prospectus.

In addition, extreme price and volume fluctuations in the stock markets have affected and continue to affect

many semiconductor, AI, and technology companies' stock prices. Often, their stock prices have fluctuated in ways

unrelated or disproportionate to the companies' operating performance. The AI industry has also experienced rapid

growth and seen high valuations that have caused stock price volatility related to speculation of the industry's future

growth and performance. In the past, stockholders have filed securities class action litigation following periods of

market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs,

divert resources and the attention of management from our business and harm our business. Moreover, because of

these fluctuations, comparing our results of operations on a period-to-period basis may not be meaningful. You

should not rely on our past results as an indication of our future performance. This variability and unpredictability

could also result in our failing to meet the expectations of industry or financial analysts or investors for any period.

If our net revenue or results of operations fall below the expectations of analysts or investors or below any forecasts

we may provide to the market, or if the forecasts we provide to the market are below the expectations of analysts or

investors, the price of our Class A common stock could decline substantially. Such a stock price decline could occur

even when we have met any previously publicly stated net revenue or earnings forecasts that we may provide.

***No public market for our common stock currently exists and an active liquid market may not develop or be***

***sustained following this offering.***

No public market for our common stock currently exists. An active public trading market for our Class A

common stock may not develop following the closing of this offering or, if developed, it may not be sustained. The

lack of an active market may impair your ability to sell your shares at the time you wish to sell them or at a price

that you consider reasonable. The lack of an active market may also reduce the fair value of your shares. An inactive

market may also impair our ability to raise capital to continue to fund operations by selling securities and may

impair our ability to acquire other companies or technologies by using our securities as consideration.

***Future sales of our Class A common stock in the public market could cause the price of our common stock to***

***decline.***

Sales of a substantial number of shares of our Class A common stock in the public market, particularly sales by

our directors, executive officers, and principal stockholders, or the perception that these sales might occur, could

cause the price of our Class A common stock to decline and could impair our ability to raise capital through the sale

of additional equity securities.

We and all of our directors and executive officers, the selling stockholders, and the holders of substantially all

of our shares of Class A common stock outstanding and securities exercisable for or convertible into shares of our

Class A common stock, have entered into lock-up agreements with the underwriters and/or agreements with market

standoff provisions that restrict our and their ability to sell or transfer shares of our capital stock and securities

convertible into or exercisable or exchangeable for shares of our capital stock, for a period ending &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . Morgan

Stanley & Co. LLC, on behalf of the underwriters, may release any of the securities subject to these lock-up

agreements and market standoff agreements at any time, subject to the applicable notice requirements. See the

sections titled "Shares Eligible for Future Sale" and "Underwriters" for additional information. Sales of a substantial

number of such shares upon expiration of the lock-up and market standoff agreements, the perception that such sales

may occur, or early release of these agreements could cause the price of our Class A common stock to fall or make it

more difficult for an investor to sell our Class A common stock at a time and price that an investor deems

appropriate. Shares held by directors, executive officers, and other affiliates will be subject to volume limitations

under Rule 144 under the Securities Act of 1933, as amended (the "Securities Act").

In addition, as of December 31, 2025, after giving effect to the Option Exercise and the RSU Net Settlement, we

had &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; options outstanding that, if fully exercised, would result in the issuance of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our

Class A common stock and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon vesting of outstanding

RSUs. We intend to file one or more registration statements on Form S-8 under the Securities Act to register the

shares of our Class A common stock subject to outstanding stock options and RSUs, as of the date of this prospectus

and shares that will be issuable pursuant to future awards granted under our equity incentive plans. Once we register

these shares, they can be freely sold in the public market upon issuance, subject to applicable vesting requirements,

compliance by affiliates with Rule 144, and other restrictions provided under the terms of the applicable plan and/or

the award agreements entered into with participants.

Following this offering, the holders of up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock will have rights,

subject to some conditions, to require us to file registration statements for the public resale of shares of our Class A

common stock or to include such shares in registration statements that we may file for us or other stockholders. Any

registration statement we file to register additional shares, whether as a result of registration rights or otherwise,

could cause the price of our Class A common stock to decline or be volatile.

***If you purchase shares of our Class A common stock in this offering, you will incur immediate and substantial***

***dilution.***

The initial public offering price will be substantially higher than the pro forma net tangible book value per share

of our Class A common stock immediately following this offering based on the total value of our tangible assets less

our total liabilities. Therefore, if you purchased our Class A common stock in this offering, at the assumed initial

public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on the cover

page of this prospectus, you would experience an immediate dilution of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, the difference between

the price per share you pay for our Class A common stock and our pro forma net tangible book value per share as of

December 31, 2025, after giving effect to the issuance by us of shares of our Class A common stock in this offering,

the Preferred Stock Conversion, the Option Exercise, and the RSU Net Settlement. In addition, you may also

experience additional dilution if options, RSUs, stock appreciation rights ("SARs"), or other rights to purchase our

common stock that are outstanding or that we may issue in the future are exercised, vest, or are converted or we

issue additional shares of our common stock at prices lower than our net tangible book value at such time.

***We have broad discretion in the use of the net proceeds from this offering and may not use them effectively.***

We will have broad discretion in the application of the net proceeds to us from this offering, including for any

of the purposes described in the section titled "Use of Proceeds," and you will not have the opportunity as part of

your investment decision to assess whether the net proceeds are being used appropriately. Because of the number

and variability of factors that will determine our use of the net proceeds from this offering, our ultimate use may

vary substantially from our currently intended use. Investors will need to rely on the judgment of our management

with respect to the use of proceeds. Pending use, we may invest the net proceeds from this offering in short-term,

investment-grade, interest-bearing securities, such as money market funds, corporate notes and bonds, certificates of

deposit, commercial paper, and guaranteed obligations of the U.S. government that may not generate a high yield for

our stockholders. If we do not use the net proceeds that we receive in this offering effectively, our business, financial

condition, results of operations, and prospects could be harmed, and the price of our Class A common stock could

decline.

***We will incur increased costs as a result of operating as a public company, and our management will be required***

***to devote substantial time to support compliance with our public company responsibilities and corporate***

***governance practices.***

As a public company, we will incur significant finance, legal, accounting, and other expenses, including director

and officer liability insurance, that we did not incur as a private company, and which we expect to further increase

after we are no longer an "emerging growth company." The Sarbanes-Oxley Act, the Dodd-Frank Wall Street

Reform and Consumer Protection Act, stock exchange listing requirements, and other applicable securities rules and

regulations impose various requirements on public companies in the United States. Our management and other

personnel are expected to devote a substantial amount of time to support compliance with these requirements.

Moreover, these rules and regulations will increase our legal and financial compliance costs, including hiring

additional personnel, and will make some activities more time-consuming and costly. We cannot predict or estimate

the amount of additional costs we will incur as a public company or the specific timing of such costs.

***We currently have no plans to pay dividends on our common stock.***

We have never declared or paid any cash dividends on shares of our capital stock. We currently intend to retain

all available funds and any future earnings for use in the operation of our business and do not anticipate paying any

dividends in the foreseeable future. Any determination to pay dividends in the future will be at the discretion of our

board of directors and will depend on many factors, including our financial condition, results of operations, earnings,

capital requirements, business expansion opportunities, level of indebtedness, statutory and contractual restrictions

applying to the payment of dividends, and other considerations that our board of directors deem relevant.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our***

***business, our stock price and trading volume could decline.***

The trading market for our Class A common stock will be influenced by the research and reports that industry or

financial analysts publish about us or our business. We do not control these analysts or the content and opinions

included in their reports. As a new public company, we may be slow to attract research coverage, and the analysts

who publish information about our Class A common stock will have had relatively little experience with our

company, which could affect their ability to accurately forecast our results and make it more likely that we fail to

meet their estimates. In the event we obtain industry or financial analyst coverage, if any of the analysts who cover

us issues an inaccurate or unfavorable opinion regarding our stock price, our stock price may decline. In addition,

the stock prices of many companies in the technology industry have declined significantly after those companies

have failed to meet, or exceed, the financial guidance publicly announced by the companies or the expectations of

analysts. If our results of operations fail to meet, or exceed, our announced guidance or the expectations of analysts

or public investors, analysts could downgrade our Class A common stock or publish unfavorable research about us,

and the price of our Class A common stock would likely decline as a result of such failure to meet our guidance or

analyst expectations. If one or more of these analysts cease coverage of our Class A common stock or fail to publish

reports on us regularly, our visibility in the financial markets could decrease, which in turn could cause our stock

price or trading volume to decline.

***For as long as we are an emerging growth company, we will not be required to comply with certain reporting***

***requirements, including those relating to accounting standards and disclosure about our executive compensation,***

***that apply to other public companies.***

We are an "emerging growth company," as defined in the JOBS Act, and we may take advantage of certain

exemptions from various reporting requirements that are applicable to other public companies that are not "emerging

growth companies," including the auditor attestation requirements of Section 404, reduced disclosure obligations

regarding executive compensation in our periodic reports and proxy statements, and exemptions from the

requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any

golden parachute payments not previously approved. Pursuant to Section 107 of the JOBS Act, as an emerging

growth company, we have elected to use the extended transition period for complying with new or revised

accounting standards until those standards would otherwise apply to private companies. As a result, our consolidated

financial statements may not be comparable to the financial statements of issuers who are required to comply with

the effective dates for new or revised accounting standards that are applicable to public companies, which may make

our Class A common stock less attractive to investors. In addition, if we cease to be an emerging growth company,

we will no longer be able to use the extended transition period for complying with new or revised accounting

standards.

We will remain an emerging growth company until the first to occur of: (1) the last day of the year following

the fifth anniversary of this offering; (2) the last day of the first year in which our annual gross revenue is

$1.235 billion or more; (3) the date on which we have, during the previous rolling three-year period, issued more

than $1.0 billion in non-convertible debt securities; and (4) the date we qualify as a "large accelerated filer," with at

least $700 million of equity securities held by non-affiliates.

We cannot predict if investors will find our Class A common stock less attractive if we choose to rely on these

exemptions. For example, if we do not adopt a new or revised accounting standard, our future results of operations

may not be as comparable to the results of operations of certain other companies in our industry that adopted such

standards. If some investors find our Class A common stock less attractive as a result, there may be a less active

trading market for our Class A common stock, and our stock price may be more volatile.

***Anti-takeover provisions contained in our amended and restated certificate of incorporation and amended and***

***restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt.***

Our amended and restated certificate of incorporation and amended and restated bylaws, which will become

effective immediately prior to the completion of this offering, contain, and Delaware law contains, provisions which

could have the effect of rendering more difficult, delaying, or preventing an acquisition deemed undesirable by our

board of directors. These provisions will provide for the following:

• a classified board of directors with staggered three-year terms, which may delay the ability of stockholders

to change the membership of a majority of our board of directors;

• no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect

director candidates;

• the exclusive right of our board of directors to establish the size of the board of directors and to appoint a

director to fill a vacancy, however occurring, including by expanding the board of directors;

• the ability of our board of directors to authorize the issuance of shares of preferred stock and to determine

the price and other terms of those shares, including voting or other rights or preferences, without

stockholder approval, which could be used to significantly dilute the ownership of a hostile acquiror;

• the ability of our board of directors to alter our amended and restated bylaws without obtaining stockholder

approval;

• supermajority voting requirement to amend certain provisions in our amended and restated certificate of

incorporation and amended and restated bylaws;

• a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an

annual or special meeting of our stockholders;

• the requirement that a special meeting of stockholders may be called only by our Chief Executive Officer or

a majority of our board of directors then in office, which may delay the ability of our stockholders to force

consideration of a proposal or to take action, including the removal of directors;

• advance notice procedures that stockholders must comply with in order to nominate candidates to our board

of directors or to propose matters to be acted upon at a stockholders' meeting, which may discourage or

deter a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of

directors or otherwise attempting to obtain control of us; and

• the limitation of liability of, and provision of indemnification to, our directors and officers.

These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes

in our management.

As a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the

General Corporation Law of the State of Delaware (the "Delaware General Corporation Law"), which prevents some

stockholders holding more than 15% of our outstanding common stock from engaging in certain business

combinations without approval of the holders of substantially all of our outstanding common stock. For a description

of our capital stock, see the section titled "Description of Capital Stock."

Any provision of our amended and restated certificate of incorporation, amended and restated bylaws, or

Delaware law that has the effect of delaying or deterring a change in control could limit the opportunity for our

stockholders to receive a premium for their shares of our Class A common stock, and could also affect the price that

some investors are willing to pay for our Class A common stock.

***Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful***

***third-party claims against us and may reduce the amount of money available to us.***

Our amended and restated certificate of incorporation and amended and restated bylaws, which will become

effective immediately prior to the completion of this offering, provide that we will indemnify our directors and

officers, in each case to the fullest extent permitted by Delaware law.

In addition, as permitted by Section 145 of the Delaware General Corporation Law, our amended and restated

bylaws to be effective immediately prior to the completion of this offering, and our indemnification agreements that

we have entered or intend to enter into with our directors and officers provide that:

• we will indemnify our directors and officers for serving us in those capacities or for serving other business

enterprises at our request to the fullest extent permitted by Delaware law. Delaware law provides that a

corporation may indemnify such person if such person acted in good faith and in a manner such person

reasonably believed to be in or not opposed to the best interests of the registrant and, with respect to any

criminal proceeding, had no reasonable cause to believe such person's conduct was unlawful;

• we may, in our discretion, indemnify employees and agents in those circumstances where indemnification

is permitted by applicable law;

• we are required to advance expenses, as incurred, to our directors and officers in connection with defending

a proceeding, except that such directors or officers will undertake to repay such advances if it is ultimately

determined that such person is not entitled to indemnification;

• the rights conferred in our amended and restated bylaws are not exclusive, and we are authorized to enter

into indemnification agreements with our directors, officers, employees, and agents and to obtain insurance

to indemnify such persons; and

• we may not retroactively amend our amended and restated bylaw provisions to reduce our indemnification

obligations to directors, officers, employees, and agents.

While we maintain a directors' and officers' insurance policy, such insurance may not be adequate to cover all

liabilities that we may incur, which may reduce our available funds to satisfy third-party claims and may harm our

business and financial position.

***Our amended and restated certificate of incorporation and amended and restated bylaws will provide for an***

***exclusive forum in the Court of Chancery of the State of Delaware for certain disputes between us and our***

***stockholders, and that the federal district courts of the United States will be the exclusive forum for the resolution***

***of any complaint asserting a cause of action under the Securities Act.***

Our amended and restated certificate of incorporation and amended and restated bylaws, which will become

effective immediately prior to the completion of this offering, will provide, that: (i) unless we consent in writing to

the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if such court does not have

subject matter jurisdiction thereof, the federal district court of the State of Delaware) will, to the fullest extent

permitted by law, be the sole and exclusive forum for: (A) any derivative action or proceeding brought on behalf of

the company, (B) any action asserting a claim for or based on a breach of a fiduciary duty owed by any of our

current or former directors, officers, other employees, agents, or stockholders to the company or our stockholders,

including without limitation a claim alleging the aiding and abetting of such a breach of fiduciary duty, (C) any

action asserting a claim against the company or any of our current or former directors, officers, employees, agents,

or stockholders arising pursuant to any provision of the Delaware General Corporation Law or our certificate of

incorporation or bylaws or as to which the Delaware General Corporation Law confers jurisdiction on the Court of

Chancery of the State of Delaware, or (D) any action asserting a claim related to or involving the company that is

governed by the internal affairs doctrine; (ii) unless we consent in writing to the selection of an alternative forum,

the federal district courts of the United States will, to the fullest extent permitted by law, be the sole and exclusive

forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, and the rules

and regulations promulgated thereunder; (iii) any person or entity purchasing or otherwise acquiring or holding any

interest in shares of capital stock of the company will be deemed to have notice of and consented to these provisions;

and (iv) failure to enforce the foregoing provisions would cause us irreparable harm, and we will be entitled to

equitable relief, including injunctive relief and specific performance, to enforce the foregoing provisions. Nothing in

our current certificate of incorporation or bylaws or our amended and restated certificate of incorporation or

amended and restated bylaws precludes stockholders that assert claims under the Exchange Act, from bringing such

claims in federal court to the extent that the Exchange Act confers exclusive federal jurisdiction over such claims,

subject to applicable law.

The choice of forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds

favorable for disputes with us or any of our current or former directors, officers, other employees, agents, or

stockholders, which may discourage such claims against us or any of our current or former directors, officers, other

employees, agents, or stockholders and result in increased costs for investors to bring a claim.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements about us and our industry that involve substantial risks and

uncertainties. All statements other than statements of historical facts contained in this prospectus, including

statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans,

objectives of management and expected market growth, are forward-looking statements. In some cases, you can

identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects,"

"plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts,"

"potential," "goal," "objective," "seeks," or "continue," or the negative of these words or other similar terms or

expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in

this prospectus include, but are not limited to, statements about:

• our future financial performance, including our expectations regarding our revenue, cash flows, expenses,

gross margins, and other results of operations;

• our ability to acquire new customers and grow our customer base;

• our ability to successfully retain existing customers, including G42, MBZUAI, and other significant

customers, and expand sales within our existing customer base;

• our expectations with respect to the performance of our offerings;

• our ability to procure and finance data center capacity in geographies we desire on commercially reasonable

terms;

• our ability to successfully maintain our relationships with our third-party suppliers and manufacturers;

• launching new offerings and adding new product capabilities;

• future investments in developing and enhancing our business;

• our expectations regarding our ability to expand;

• design, manufacturing, or product defects;

• our ability to effectively manage our growth;

• future investments in our business, our anticipated capital expenditures, and our estimates regarding our

capital requirements;

• the estimated size of our addressable market opportunity;

• economic and industry trends, projected growth, or trend analysis, particularly as it relates to AI compute;

• investments in our sales and marketing efforts;

• our ability to compete effectively with existing competitors and new market entrants;

• our reliance on our senior management team and our ability to identify, recruit, and retain skilled personnel;

• our ability to obtain, maintain, protect, and enforce our intellectual property rights and any costs associated

therewith;

• our ability to comply with laws and regulations that currently apply or become applicable to our business

both in the United States and internationally;

• economic trends and other macroeconomic factors, such as fluctuating interest rates and rising inflation;

• the impact of geopolitical changes or tensions, political conflicts, and other global financial, economic, and

political events and wars on our industry, business, financial condition, results of operations, and prospects

and any global pandemics or health crises;

• our expected use of proceeds from this offering; and

• other risks and uncertainties described in this prospectus, including those under the section titled "Risk

Factors."

We caution you that the foregoing list does not contain all of the forward-looking statements made in this

prospectus.

You should not rely upon forward-looking statements as predictions of future events. We have based the

forward-looking statements contained in this prospectus primarily on our current expectations, estimates, forecasts,

and projections about future events and trends that we believe may affect our business, financial condition, results of

operations, and prospects. Although we believe that we have a reasonable basis for each forward-looking statement

contained in this prospectus, we cannot guarantee that the future results, levels of activity, performance, or events

and circumstances reflected in the forward-looking statements will be achieved or occur at all. The outcome of the

events described in these forward-looking statements is subject to risks, uncertainties and other factors described in

the section titled "Risk Factors" and elsewhere in this prospectus. Moreover, we operate in a very competitive and

rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to

predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this

prospectus. The results, events, and circumstances reflected in the forward-looking statements may not be achieved

or occur, and actual results, events or circumstances could differ materially from those described in the forward-

looking statements.

The forward-looking statements made in this prospectus relate only to events as of the date on which the

statements are made. We undertake no obligation to update any forward-looking statements made in this prospectus

to reflect events or circumstances after the date of this prospectus or to reflect new information or the occurrence of

unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations

disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking

statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers,

dispositions, joint ventures, or investments we may make.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant

subject. These statements are based upon information available to us as of the date of this prospectus, and while we

believe such information forms a reasonable basis for such statements, such information may be limited or

incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or

review of, all potentially available relevant information. These statements are inherently uncertain, and you are

cautioned not to unduly rely upon these statements.

You should read this prospectus and the documents that we reference in this prospectus and have filed as

exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that

our actual future results may be materially different from what we expect. We qualify all of the forward-looking

statements in this prospectus with these cautionary statements.

**MARKET AND INDUSTRY DATA**

This prospectus contains estimates, projections, and other information concerning our industry and our business,

as well as data regarding market research, estimates, and forecasts prepared by our management. Information that is

based on estimates, forecasts, projections, market research, or similar methodologies is inherently subject to

uncertainties, and actual events or circumstances may differ materially from events and circumstances that are

assumed in this information. The industry in which we operate is subject to a high degree of uncertainty and risk due

to a variety of factors, including those described in the section titled "Risk Factors." Unless otherwise expressly

stated, we obtained this industry, business, market, and other data from reports, research surveys, studies, and

similar data prepared by market research firms and other third parties, industry and general publications, government

data, and similar sources. Forecasts and other forward-looking information with respect to industry, business,

market, and other data are subject to the same qualifications and additional uncertainties regarding the other

forward-looking statements in this prospectus. See the section titled "Special Note Regarding Forward-Looking

Statements" for additional information.

Among others, we refer to estimates compiled by the following industry sources:

• Artificial Analysis, Inc.;

• Bloomberg Intelligence;

• Dell'Oro Group, *Data Center IT Capex Five-year Forecast Report*, July 2025;

• Digital Education Council, *Digital Education Council Global AI Student Survey 2024*, August 2024;

• Gallup, Inc., *AI Use at Work Rises*, December 14, 2025;

• International Data Corporation ("IDC"), *IDC Predicts AI Solutions & Services will Generate Global Impact*

*of $22.3 Trillion by 2030*, April 1, 2025;

• McKinsey & Company ("McKinsey"), *The state of AI in 2025: Agents, innovation, and transformation*,

November 5, 2025; and

• Pew Research Center, *How Americans View AI and Its Impact on People and Society*, September 2025.

**USE OF PROCEEDS**

We estimate that we will receive net proceeds from this offering of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if the

underwriters' over-allotment option is exercised in full), based on an assumed initial public offering price of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus,

and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by

us. We will not receive any proceeds from the sale of Class A common stock by the selling stockholders.

Each $1.00 increase or decrease in the assumed initial public offering price per share of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , which is the

midpoint of the estimated price range set forth on the cover page of this prospectus, would increase or decrease, as

applicable, the net proceeds to us from this offering by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , assuming that the number of shares

of Class A common stock offered by us, as set forth on the cover page of this prospectus, remains the same and after

deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

Similarly, each increase or decrease of 1.0 million shares in the number of shares of Class A common stock offered

by us would increase or decrease, as applicable, the net proceeds to us from this offering by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ,

assuming that the initial public offering price per share remains at $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , which is the midpoint of the estimated

price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and

commissions and estimated offering expenses payable by us.

The principal purposes of this offering are to obtain additional capital to fund our operations, create a public

market for our Class A common stock, facilitate an orderly distribution of shares for the selling stockholders,

facilitate our future access to the public equity markets, and increase awareness of our company among potential

partners. We currently intend to use the net proceeds from this offering, together with our existing cash, cash

equivalents, and investments, for general corporate purposes, including working capital, operating expenses and

capital expenditures. We may also use a portion of the net proceeds to in-license, acquire, or invest in

complementary technologies, assets, businesses, or intellectual property. We periodically evaluate strategic

opportunities; however, we have no current commitments to enter into any such acquisitions or make any such

investments.

We intend to use a portion of the net proceeds from this offering to satisfy tax withholding and remittance

obligations related to the RSU Net Settlement. Based on the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per

share of Class A common stock, which is the midpoint of the estimated price range set forth on the cover page of

this prospectus, an estimated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares underlying RSUs vesting in connection with our initial public

offering, and an assumed &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % tax withholding rate, we would use approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to satisfy our tax

withholding and remittance obligations related to the vesting of such RSUs. A $1.00 increase or decrease, as

applicable, in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of Class A common stock, which is the

midpoint of the estimated price range set forth on the cover page of this prospectus, assuming no change to the

applicable tax rate, would increase or decrease, as applicable, the amount we would be required to pay to satisfy

these tax withholding and remittance obligations by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

In addition, it is possible that in the future, we will decide to "net settle" additional RSUs upon the applicable

vesting date, meaning that we will withhold a portion of the vested shares on the applicable vesting date and use

some of the net proceeds from this offering to satisfy tax withholding and remittance obligations related to the

vesting and settlement of such awards.

The expected use of net proceeds from this offering represents our intentions based upon our present plans and

business conditions. We cannot predict with certainty all of the particular uses for the proceeds of this offering or the

amounts that we will actually spend on the uses set forth above. Accordingly, our management will have broad

discretion in applying the net proceeds of this offering. The timing and amount of our actual expenditures will be

based on many factors, including cash flows from operations and the anticipated growth of our business.

Pending their use, we intend to invest the net proceeds from this offering in a variety of capital-preservation

investments, including short- and intermediate-term investments, interest-bearing investments, investment-grade

securities, government securities, and money market funds.

**DIVIDEND POLICY**

We have never declared or paid any cash dividends on our capital stock. We currently intend to retain any

future earnings for use in the operation of our business and do not anticipate declaring or paying any cash dividends

in the foreseeable future. Any future determination to declare cash dividends will be made at the discretion of our

board of directors, subject to applicable laws, and will depend on a number of factors, including our results of

operations, financial condition, capital requirements, contractual restrictions, general business conditions, and other

factors our board of directors may deem relevant.

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and total capitalization as of December 31, 2025:

• on an actual basis;

• on a pro forma basis to give effect to the following immediately prior to the completion of this offering:

(i) the filing and effectiveness of our amended and restated certificate of incorporation; (ii) the Preferred

Stock Conversion; (iii) the Option Exercise; (iv) the RSU Net Settlement; (v) the increase in accrued

expenses and other current liabilities and an equivalent decrease in additional paid-in capital of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in connection with the estimated tax withholding and remittance obligations related to the RSU

Net Settlement; and (vi) stock-based compensation expense of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that we will

recognize upon the completion of this offering related to RSUs subject to service-based and liquidity-based

vesting conditions for which the service-based vesting condition was satisfied as of December 31, 2025 and

for which the liquidity-based vesting condition will be satisfied in connection with this offering; and

• on a pro forma as adjusted basis to give effect to: (i) the pro forma adjustments set forth above; (ii) the

issuance and sale of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock by us in this offering at an assumed initial

public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on

the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and

estimated offering expenses payable by us; (iii) the receipt by us of gross proceeds of approximately

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in connection with the Option Exercise; and (iv) the use of a portion of the net proceeds from

this offering to satisfy the estimated tax withholding and remittance obligations related to the RSU Net

Settlement.

The pro forma as adjusted information discussed below is illustrative only and will be adjusted based on the

actual initial public offering price and other terms of this offering determined at pricing. This table should be read in

conjunction with the sections titled "Summary Consolidated Financial Data" and "Management's Discussion and

Analysis of Financial Condition and Results of Operations" and our unaudited condensed consolidated financial

statements and related notes included elsewhere in this prospectus.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Actual** | **Pro Forma** | **Pro Forma**<br>**As Adjusted**<sup>(1)</sup><br>|
|  | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** | **(in thousands, except share and per share amounts)** |
| Cash and cash equivalents.............................................................. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Redeemable convertible preferred stock, par value $0.00001 per <br>share; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares issued and <br>outstanding, actual; no shares authorized, issued, or <br>outstanding, pro forma and pro forma as adjusted.....................<br>|  |  |  |
| Stockholders' deficit: |  |  |  |
| Preferred stock, par value $0.00001 per share; no shares <br>authorized, issued, or outstanding, actual; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares <br>authorized, no shares issued or outstanding, pro forma and <br>pro forma as adjusted.............................................................<br>|  |  |  |
| Class A common stock, par value $0.00001 per share; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issued and <br>outstanding, actual; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>shares issued and outstanding, pro forma; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares <br>authorized and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares issued and outstanding, pro <br>forma as adjusted...................................................................<br>|  |  |  |
| Class N common stock, par value $0.00001 per share; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issued and <br>outstanding, actual; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares authorized, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares issued and outstanding, pro forma and pro <br>forma as adjusted...................................................................<br>|  |  |  |
| Additional paid-in capital.......................................................... |  |  |  |
| Treasury stock........................................................................... |  |  |  |
| Accumulated other comprehensive income............................... |  |  |  |
| Accumulated deficit................................................................... |  |  |  |
| Total stockholders' deficit......................................................... |  |  |  |
| Total capitalization............................................................... | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

_______________

(1)The pro forma as adjusted information discussed above is illustrative only and will depend on the actual initial

offering price and other terms of this offering determined at pricing. Each $1.00 increase or decrease in the

assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set

forth on the cover page of this prospectus, would increase or decrease, as applicable, each of pro forma as

adjusted cash and cash equivalents, additional paid-in capital, total stockholders' equity, and total capitalization

by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , assuming that the number of shares of Class A common stock offered by us, as set

forth on the cover page of this prospectus, remains the same, and after deducting estimated underwriting

discounts and commissions and estimated offering expenses payable by us. Similarly, each increase or decrease

of 1.0 million shares in the number of shares of Class A common stock offered by us would increase or

decrease, as applicable, each of pro forma as adjusted cash and cash equivalents, additional paid-in capital, total

stockholders' equity, and total capitalization by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , assuming that the assumed initial public

offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on the cover

page of this prospectus, remains the same, and after deducting estimated underwriting discounts and

commissions and estimated offering expenses payable by us.

If the underwriters' over-allotment option is exercised in full, pro forma as adjusted cash and cash equivalents,

additional paid-in capital, total stockholders' equity, total capitalization and shares of Class A common stock

outstanding as of December 31, 2025 would be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares,

respectively.

The number of shares of our common stock issued and outstanding, pro forma, and pro forma as adjusted in the

table above is based &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock and no shares of our Class N common stock

outstanding as of December 31, 2025, after giving effect to the Preferred Stock Conversion, the Option Exercise,

and the RSU Net Settlement, and excludes:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of outstanding stock options as of

December 31, 2025, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, after giving effect to the

Option Exercise;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of stock options granted after

December 31, 2025, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the vesting and settlement of RSUs subject to

service-based and liquidity-based vesting conditions outstanding as of December 31, 2025, for which the

service-based vesting condition was not yet satisfied as of December 31, 2025 and for which the liquidity-

based vesting condition will be satisfied in connection with this offering, after giving effect to the RSU Net

Settlement;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock issuable upon the vesting and settlement of RSUs subject to

service-based and liquidity-based vesting conditions granted after December 31, 2025, for which the

service-based vesting condition was not yet satisfied as of December 31, 2025 and for which the liquidity-

based vesting condition will be satisfied in connection with this offering, after giving effect to the RSU Net

Settlement;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under the 2026 Plan, which will

become effective on the business day immediately prior to the date of effectiveness of the registration

statement of which this prospectus forms a part, including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; new shares and the number of shares

(i) that remain available for grant of future awards under the 2016 Plan at the time the 2026 Plan becomes

effective, which shares will cease to be available for issuance under the 2016 Plan at such time and

(ii) underlying outstanding Prior Plan Awards that expire, or are cancelled, forfeited, reacquired, or

withheld; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under the ESPP, which will

become effective on the business day immediately prior to the date of effectiveness of the registration

statement of which this prospectus forms a part.

The 2026 Plan and the ESPP also provide for automatic annual increases in the number of shares reserved

thereunder. See the section titled "Executive and Director Compensation—Equity Compensation Plans" for

additional information.

**DILUTION**

If you purchase shares of our Class A common stock in this offering, your ownership interest will be diluted to

the extent of the difference between the initial public offering price per share of our Class A common stock in this

offering and the pro forma as adjusted net tangible book value per share of our Class A common stock immediately

after this offering.

As of December 31, 2025, our historical net tangible book value (deficit) was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share

of our Class A common stock. Our historical net tangible book value (deficit) per share represents our total tangible

assets less total liabilities and redeemable convertible preferred stock, divided by the aggregate number of shares of

our Class A common stock outstanding as of December 31, 2025.

Our pro forma net tangible book value as of December 31, 2025 was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of

Class A common stock. Pro forma net tangible book value per share represents tangible assets, less liabilities,

divided by the aggregate number of shares of Class A common stock outstanding, after giving effect to (i) the filing

and effectiveness of our amended and restated certificate of incorporation; (ii) the Preferred Stock Conversion;

(iii) the Option Exercise; (iv) the RSU Net Settlement; (iv) the increase in accrued expenses and other current

liabilities and an equivalent decrease in additional paid-in capital of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in connection with the estimated tax

withholding and remittance obligations related to the RSU Net Settlement; and (v) stock-based compensation

expense of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that we will recognize upon the completion of this offering related to RSUs

subject to service-based and liquidity-based vesting conditions for which the service-based vesting condition was

satisfied as of December 31, 2025 and for which the liquidity-based vesting condition will be satisfied in connection

with this offering.

After giving effect to (i) the pro forma adjustments set forth above, (ii) the sale by us of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our

Class A common stock in this offering at an assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the

midpoint of the estimated price range set forth on the cover page of this prospectus, after deducting estimated

underwriting discounts and commissions and estimated offering expenses payable by us, (iii) the receipt by us of

gross proceeds of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in connection with the Option Exercise, and (iv) the use of a portion of

the net proceeds from this offering to satisfy the estimated tax withholding and remittance obligations related to the

RSU Net Settlement, our pro forma as adjusted net tangible book value as of December 31, 2025 would have been

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. This represents an immediate increase in pro forma net tangible book value to

existing stockholders of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share and an immediate dilution in pro forma net tangible book value to new

investors of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. Dilution per share represents the difference between the price per share to be paid by

new investors for the shares of our Class A common stock sold in this offering and the pro forma as adjusted net

tangible book value per share immediately after this offering.

The following table illustrates this dilution on a per share basis:

---

| | |
|:---|:---|
| Assumed initial public offering price per share......................................................... | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Pro forma net tangible book value per share as of December 31, 2025............... | $— |
| Increase in pro forma net tangible book value per share attributable to new <br>investors participating in this offering..............................................................<br>|  |
| Pro forma as adjusted net tangible book value per share after this offering.............. |  |
| Dilution per share to new investors participating in this offering............................. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

Each $1.00 increase or decrease in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the

midpoint of the estimated price range set forth on the cover page of this prospectus, would increase or decrease, as

applicable, our pro forma as adjusted net tangible book value per share after this offering by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share and

the dilution in pro forma per share to investors participating in this offering by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, assuming that the

number of shares of Class A common stock offered by us, as set forth on the cover page of this prospectus, remains

the same, and after deducting estimated underwriting discounts and commissions and estimated offering expenses

payable by us. Similarly, each increase or decrease of 1.0 million shares in the number of shares of Class A common

stock offered by us would increase or decrease, as applicable, our pro forma as adjusted net tangible book value per

share after this offering by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share and the dilution in pro forma as adjusted net tangible book value per

share to investors participating in this offering by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, assuming the initial public offering price of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share remains the same, and after deducting estimated underwriting discounts and commissions and

estimated offering expenses payable by us.

If the underwriters' over-allotment option is exercised in full, the pro forma as adjusted net tangible book value

per share of our Class A common stock after this offering would be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, and the dilution in pro forma

net tangible book value per share to investors participating in this offering would be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of our Class A

common stock.

The following table sets forth, on the pro forma basis described above, as of December 31, 2025, the number of

shares of Class A common stock purchased from us, the total consideration paid, or to be paid, and the weighted-

average price per share paid, or to be paid, by existing stockholders and by the new investors, at an assumed initial

public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on the cover

page of this prospectus, before deducting estimated underwriting discounts and commissions and estimated offering

expenses payable by us:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Weighted-**<br>**Average Price**<br>**Per Share**  |
|  | **Number** | **Percent** | **Percent** | **Weighted-**<br>**Average Price**<br>**Per Share**  |
|  | **(in thousands, except share, per share and percent data)** | **(in thousands, except share, per share and percent data)** | **(in thousands, except share, per share and percent data)** | **(in thousands, except share, per share and percent data)** |
| Existing stockholders......................... |  | % | $% | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| New investors..................................... |  |  |  |  |
| Total............................................... |  | 100% | $100% |  |

---

Sales by the selling stockholders in this offering will cause the number of shares held by existing stockholders

before this offering reflected in the table above to be reduced to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total number of

shares of our Class A common stock outstanding immediately after the completion of this offering, and will increase

the number of shares held by new investors to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total number of shares of our

Class A common stock outstanding immediately after the completion of this offering.

Each $1.00 increase or decrease in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, which is the

midpoint of the estimated price range set forth on the cover page of this prospectus, would increase or decrease, as

applicable, the total consideration paid by new investors, total consideration paid by all stockholders, and the

weighted-average price per share paid by all stockholders by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,

respectively, assuming that the number of shares of Class A common stock offered by us and the selling

stockholders, as set forth on the cover page of this prospectus, remains the same, and after deducting estimated

underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase or

decrease of 1.0 million shares in the number of shares of Class A common stock offered by us would increase or

decrease, as applicable, the total consideration paid by new investors, total consideration paid by all stockholders,

and the weighted-average price per share paid by all stockholders by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, and

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, respectively, assuming the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share remains the same,

and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by

us.

The foregoing tables assume no exercise of the underwriters' over-allotment option. If the underwriters exercise

their over-allotment option in full, the number of shares of Class A common stock held by our existing stockholders

will represent approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total number of shares of our Class A common stock outstanding after

this offering and the number of shares held by new investors will represent approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total

number of shares of our Class A common stock outstanding after this offering.

The foregoing tables and calculations (other than the historical net tangible book value calculation) are based

on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock and no shares of our Class N common stock outstanding as of

December 31, 2025, after giving effect to the Preferred Stock Conversion, the Option Exercise, and the RSU Net

Settlement, and excludes:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of outstanding stock options as of

December 31, 2025, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, after giving effect to the

Option Exercise;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of stock options granted after

December 31, 2025, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the vesting and settlement of RSUs subject to

service-based and liquidity-based vesting conditions outstanding as of December 31, 2025, for which the

service-based vesting condition was not yet satisfied as of December 31, 2025 and for which the liquidity-

based vesting condition will be satisfied in connection with this offering, after giving effect to the RSU Net

Settlement;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock issuable upon the vesting and settlement of RSUs subject to

service-based and liquidity-based vesting conditions granted after December 31, 2025, for which the

service-based vesting condition was not yet satisfied as of December 31, 2025 and for which the liquidity-

based vesting condition will be satisfied in connection with this offering, after giving effect to the RSU Net

Settlement;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under the 2026 Plan, which will

become effective on the business day immediately prior to the date of effectiveness of the registration

statement of which this prospectus forms a part, including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; new shares and the number of shares

(i) that remain available for grant of future awards under the 2016 Plan at the time the 2026 Plan becomes

effective, which shares will cease to be available for issuance under the 2016 Plan at such time and

(ii) underlying outstanding Prior Plan Awards that expire, or are cancelled, forfeited, reacquired, or

withheld; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock reserved for future issuance under the ESPP, which will

become effective on the business day immediately prior to the date of effectiveness of the registration

statement of which this prospectus forms a part.

The 2026 Plan and the ESPP also provide for automatic annual increases in the number of shares reserved

thereunder. See the section titled "Executive and Director Compensation—Equity Compensation Plans" for

additional information.

If all of the foregoing securities, other than the shares reserved for the 2026 Plan or the ESPP, were converted,

exercised, or vested in connection with this offering, the number of shares of Class A common stock held by our

existing stockholders would represent approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total number of shares of our Class A common

stock outstanding after this offering and the number of shares held by new investors would represent approximately

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total number of shares of our Class A common stock outstanding after this offering, in each case,

assuming no exercise of the underwriters' over-allotment option.

To the extent we issue any additional stock options, warrants, or RSUs or any outstanding stock options or

RSUs are exercised or settled, or to the extent we issue any other securities or convertible debt in the future,

investors will experience further dilution.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF** 

**OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in*

*conjunction with the section titled "Summary Consolidated Financial Data," our audited consolidated financial*

*statements and related notes, and other financial information appearing elsewhere in this prospectus. In addition to*

*historical consolidated financial information, the following discussion contains forward-looking statements that*

*reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could*

*differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to*

*those differences include those discussed below and elsewhere in this prospectus, particularly in the sections titled*

*"Risk Factors" and "Special Note Regarding Forward-Looking Statements."*

*Data as of and for the years ended December 31, 2024 and 2025 has been derived from our audited*

*consolidated financial statements included elsewhere in this prospectus. Our historical results are not necessarily*

*indicative of the results to be expected for any period in the future, and results for any interim period should not be*

*construed as an inference of what our results would be for any full year or future period.*

**Overview**

We are building the fastest AI infrastructure in the world.

In AI, speed is critical to win. Speed improves user engagement, expands product capabilities, can lower

operating costs, and opens new markets. It shortens iteration cycles for engineers, researchers, and professionals

across industries, allowing them to be more productive. Speed unlocks new applications and new industries.

Our solutions are built for speed. Cerebras Inference delivers answers up to 15 times faster than leading GPU-

based solutions as benchmarked on leading open-source models. These performance breakthroughs are the result of

our core innovation: the world's first and only commercialized wafer scale processor.

Our customers include hyperscalers, foundation model labs, AI native and digital native businesses, enterprises,

and Sovereign AI initiatives. Our customers use Cerebras solutions to run applications that demand speed, scale, and

intelligence. This work includes training and serving large frontier models with near-instant responses, processing

massive datasets in real time, and generating full-stack applications in a single step.

Once customers adopt fast inference, user expectations for interactivity rise, and engineering teams shift from

latency optimizations to other work, making it difficult to return to slower inference.

We deliver our solutions to customers in several different ways. Organizations that require full data and

infrastructure control can purchase Cerebras AI supercomputers for on-premises deployments. Customers seeking

cloud flexibility can access Cerebras compute through consumption-based models on Cerebras Cloud or through

partner clouds. For example, our high-speed inference services are available through partners, including AWS

Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway, OpenRouter, and Hugging

Face, enabling seamless adoption within existing workflows. Beyond providing compute infrastructure, we provide

AI services to our customers to co-develop solutions to address their most complex challenges, from training state-of-

the-art models to optimizing deployments for each application's needs, and maintaining and operating their on-

premises hardware.

Our growth reflects the broader acceleration of AI adoption. Our revenue increased from $25.0 million in 2022

to $79.0 million in 2023 and to $290.3 million in 2024, representing a more than tenfold increase over three years.

Our revenue increased to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in 2025, representing year-over-year growth of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%. We incurred net

losses of $481.6 million and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million in 2024 and 2025, respectively.

**Our Business Model**

We deliver high-performance AI offerings primarily through on-premises hardware and cloud-based solutions.

Customers can also use a hybrid approach and train models on premises and then leverage our inference cloud in

production, benefiting from flexible capacity that can scale with demand. We use a combination of direct sales and

partnerships to address the rapidly growing AI market.

***On-Premises Hardware Solutions.*** We sell our hardware platform to leading organizations who seek maximum

control over their data and their AI infrastructure, fulfilling their needs for high-performance AI compute on

premises. Each system combines tightly integrated hardware and software and includes a renewable software

subscription that provides continuous updates and upgrades.

***Cloud and Other Services.*** We also provide access to Cerebras high-performance AI compute through Cerebras

Cloud as well as through our partner cloud platforms, including AWS Marketplace, Microsoft Marketplace,

IBM watsonx Model Gateway, OpenRouter, Hugging Face, and Vercel AI Gateway. These offerings enable

customers to utilize the full capabilities of our AI supercomputers without incurring the capital expenditures

associated with building or maintaining on-premises infrastructure, and without the operational complexity of

assembling and managing training or inference software. Customers can begin to use our cloud resources within

minutes.

Cerebras Cloud serves a broad spectrum of users—from individual developers using our entry-level tier to some

of the world's largest enterprises. Customers can run open-source, fine-tuned, and proprietary models for both

training and inference workloads. Across a variety of use cases, our cloud offerings provide access to ultra-high-

performance AI compute. Customers can procure cloud capacity directly from Cerebras as well as from our cloud

partners through two primary models: Dedicated Capacity and On-Demand.

We also offer deployment services toassist customers with data preparation, model architecture design, training

management, inference optimization, and, in select cases, ongoing system operations and management. We also

offer a subscription service providing access to an ongoing stream of software updates and upgrades for purchasers

of our hardware. We provide professional services to assist customers throughout the entire AI workflow.

**Sovereign AI Initiatives**

The United Arab Emirates ("UAE") has emerged as a global leader in AI through its visionary UAE Strategy

for Artificial Intelligence 2031 and Vision 2031, which aim to position the nation as a hub for innovation and

sustainable development. Spearheaded by the UAE Artificial Intelligence Office, the initiative emphasizes

leveraging AI to enhance governance, improve quality of life, and drive economic diversification by integrating AI

into key sectors such as healthcare, education, energy, and public services. The UAE has also prioritized building a

skilled workforce through institutions like the Mohamed bin Zayed University of Artificial Intelligence

("MBZUAI"), a research-focused university dedicated entirely to AI. These efforts align with the broader goal of

transforming the UAE into a knowledge-based economy, where AI drives efficiency, innovation, and global

competitiveness while addressing societal challenges such as healthcare access and environmental sustainability.

We have established a strategic relationship with Group 42 Holding Ltd (together with its affiliates, "G42") an

Abu Dhabi-based technology group that is a pivotal player in the UAE's AI-driven transformation and develops and

deploys cutting-edge, large-scale, AI-powered solutions for governments and large corporations. G42 has acted as

our partner, customer, and investor, and its portfolio of companies spans multiple sectors, including healthcare,

smart cities, finance, energy, and consumer businesses.

We also have a strategic relationship with MBZUAI. We and MBZUAI recently announced Jais 2, a leading

open-weight Arabic LLM, built from the ground up with 70 billion parameters and efficiently trained using Cerebras

AI infrastructure.

A substantial portion of our revenue is driven by G42, which accounted for 85.0% and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our total

revenue for the years ended December 31, 2024 and 2025, respectively. In addition, in the year ended December 31,

2025, MBZUAI accounted for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our total revenue.

**Key Factors Affecting Our Performance**

We believe that the growth and future success of our business depend on many factors. While these factors

present significant opportunities for our business, they also pose important challenges that we will need to address in

order to improve our results of operations.

***Commercial relationship with G42 and other strategic partners.*** We have derived, and expect to continue to

derive, a substantial portion of our revenue from sales to G42 and MBZUAI. Any changes in these parties' demand

for our solution, whether due to competitive factors, data center availability, changes in its business strategy,

budgetary constraints, or other reasons could materially impact our financial performance in the future. We have

received substantial advance payments from G42 and MBZUAI for our AI systems to support future installations.

These large prepayments have allowed us to reduce our working capital needs and provide access to a significant

portion of our initial production volumes to support its ambitious, multi-year AI investment plans.

***AI compute demand and increasingly complex models.*** The escalating global demand for AI training and

inference compute, fueled by advancements in LLMs, GenAI, and other AI-powered applications, plays a significant

role in the demand for our solutions. We have designed our AI compute platform to address the challenges of

accelerating large-scale AI workloads, and our customer base in hyperscalers, AI-native and digital-native

businesses, and research and government sectors reflects the increasing recognition of our differentiated technology.

We believe that the increasing complexity of AI models, which require substantial computational resources and

speed for training and inference, will support the demand for our low latency, high-performance AI compute

platform. We will depend on continued growth in compute demand to drive our future financial performance.

***New customer adoption.*** Attracting new customers to our platform is a key driver of our revenue growth

strategy. We have successfully grown our customer base to include hyperscalers, foundation model labs, AI-native

and digital-native businesses, enterprises, and Sovereign AI initiatives seeking to leverage the power of AI for their

specific needs. An increase in new customers will impact our revenue growth and market share and also contribute<u>s</u>

to a diversified customer base, which can provide greater stability over the long term. Additionally, new customers

bring fresh perspectives and use cases, which can drive innovation and product development, further enhancing our

competitive position.

***AI adoption and the emergence of new use cases and applications.*** We expect to benefit from the rapid

adoption of AI across industries and the emergence of innovative AI use cases and applications. As organizations

increasingly recognize the transformative potential of AI to enhance efficiency, productivity, and decision-making,

we expect the demand for high-performance AI compute solutions to accelerate. The rapidly expanding range of AI

use cases, from natural language processing and computer vision to drug discovery and climate modeling, among

others, creates a broad market opportunity for our AI compute solution. We expect our ability to address the

evolving needs of diverse industries and applications with cutting-edge AI compute technology to be instrumental in

driving our growth and market leadership in the years to come.

***Sovereign AI initiatives.*** The expansion of Sovereign AI initiatives represents a significant opportunity to drive

demand for our solution. We believe that our focus on developing secure, high-performance AI infrastructure

positions us well to meet this demand.We will invest in our product capabilities as well as sales and marketing

initiatives to pursue these opportunities.

***Investment in technology leadership and product development.***Increasing our investment in technology

leadership and product development directly impacts our competitive position and future financial performance. Our

continued commitment to research and development enables us to focus on emerging market needs and expand into

new applications of AI. As we develop new products and services tailored to specific industries and use cases, we

can unlock additional demand and continue to broaden our customer base. Additionally, technical leadership is

important to help us attract and retain top talent, which is essential for maintaining our technological edge and

driving continuous innovation. A talented workforce, in turn, contributes to the development of new solutions that

can continue to fuel our revenue growth. We intend to continue to invest heavily in our research and development

efforts to remain competitive.

***Supply chain and manufacturing capacity.***We operate a fabless business model that utilizes third-party

suppliers and manufacturers, such as third-party wafer foundries and module assembly and test service providers in

a number of countries, including outside the United States. We do not generally have long-term capacity

commitments with our suppliers, and we source a number of the components used in our products from sole or

single-source suppliers or use a single supplier to perform certain of the processes involved in the manufacture of

our products. The continued and timely supply of input materials and the availability of manufacturing capacity and

packaging and testing services impact our ability to meet customer demand. Onboarding new third-party suppliers

and our dependency on them to allocate sufficient manufacturing capacity to meet our needs in a cost-effective and

timely manner may impact our ability to scale and support growing customer demand.

***Investment in data center capacity.***A key determinant of our long-term growth in cloud-based solutions will be

our ability to continue expanding our cloud infrastructure through the successful procurement of long-term data

center arrangements in strategic locations. We have continued to scale through identifying, negotiating and

maintaining long-term data center leases on favorable terms. In addition, our operations are further dependent on our

professional team's ability to procure and deploy auxiliary equipment, including cooling systems and back-up

generators. Our continued execution in these key areas will strengthen our ability to meet customer demand, support

expansion, and enhance our overall cloud offering.

**Non-GAAP Financial Measures**

We use certain non-GAAP financial measures to supplement the performance measures in our consolidated

financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include

non-GAAP operating loss and non-GAAP net loss. We use these non-GAAP financial measures for financial and

operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding

certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP operating

loss and non-GAAP net loss provide meaningful supplemental information regarding our performance. Accordingly,

we believe these non-GAAP financial measures are useful to investors and others because they allow for additional

information with respect to financial measures used by management in its financial and operational decision-making

and they may be used by our institutional investors and the analyst community to help them analyze the health of our

business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these

non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial

results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate

these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative

measures.

***Non-GAAP Operating Loss***

We define non-GAAP operating loss as operating loss presented in accordance with GAAP, adjusted to exclude

stock-based compensation expenses. We have presented non-GAAP operating loss because we consider non-GAAP

operating loss to be a useful metric for investors and other users of our financial information in evaluating our

operating performance. We exclude the impact of stock-based compensation, a non-cash charge that can vary from

period to period, as such variations are unrelated to our core operating performance. This metric also provides

investors and other users of our financial information with an additional tool to compare business performance

across companies and periods, while eliminating the effects of items that may vary for different companies for

reasons unrelated to core operating performance.

A reconciliation of our GAAP operating loss, the most directly comparable GAAP financial measure, to non-

GAAP operating loss is presented below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| GAAP operating loss................................................................................................. | $(101438) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Add: Stock-based compensation expense<sup>(1)</sup>............................................................... | 58564 |  |
| Non-GAAP operating loss......................................................................................... | $(42874) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

_______________

(1)Non-GAAP operating loss does not include the tax effects of the stock-based compensation expense adjustment

because such tax effects were not material during the periods presented.

***Non-GAAP Net Loss***

We monitor non-GAAP net loss for planning and performance measurement purposes. We define non-GAAP

net loss as net loss reported on our consolidated statements of operations, excluding the impact of stock-based

compensation expenses and change in fair value of forward contract liability. We have presented non-GAAP net loss

because we believe that the exclusion of these charges allows for a more relevant comparison of our results of

operations to other companies in our industry and facilitates period-to-period comparisons as it eliminates the effect

of certain factors unrelated to our overall operating performance. Our calculation of non-GAAP net loss does not

currently include the tax effects of the stock-based compensation expense adjustment because such tax effects have

not been material to date.

A reconciliation of our GAAP net loss, the most directly comparable GAAP financial measure, to our non-

GAAP net loss is presented below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| GAAP net loss........................................................................................................... | $(481602) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Add: Stock-based compensation expense<sup>(1)</sup>............................................................... | 58564 |  |
| Add: Change in fair value of forward contract liability............................................ | 401264 |  |
| Non-GAAP net loss................................................................................................... | $(21774) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

_______________

(1)Non-GAAP net loss does not include the tax effects of the stock-based compensation expense adjustment

because such tax effects were not material during the periods presented.

**Components of Results of Operations**

***Revenue***

We generate revenue primarily from the sale of AI systems, cloud-based offerings, and support services,

including custom AI model services. We primarily sell directly to end customers. Contracts with our customers

typically include multiple performance obligations. For contracts with more than one performance obligation, we

allocate the transaction price to each separate obligation. Our payment terms vary by contract type and type of

customer and generally range from 30 to 60 days from the invoice date.

*On-Premises Hardware Solutions*

Hardware revenue consists of sales of our AI systems and other equipment that can be used for both training

and inference. We recognize revenue from sales of AI systems when control of the goods transfers to the customer,

which generally occurs upon shipment or delivery, depending on shipping terms or upon meeting the contractual

acceptance terms.

*Cloud and Other Services*

Customers procure cloud capacity from us through two primary models: Dedicated Capacity and On-Demand

(i.e., buying inference by the token or running training workloads over fixed periods). Dedicated Capacity contracts

are generally structured as take-or-pay commitments, under which customers pay for dedicated compute capacity

irrespective of utilization. We recognize revenue from sales of these cloud-based computing services, including

hosted inference, over the service term, as the customer benefits from our services throughout the contract period.

For customers purchasing in our consumption-based "pay-as-you-go" model, customers either purchase tokens

as they consume them or pre-purchase token bundles and draw down their balance as workloads run. The on-

demand model allows customer to scale elastically, and many customers have begun with on-demand usage and

transitioned to dedicated capacity as their workloads expand.

We generate services and support revenue primarily through sales of one- to three-year customer care support

services and a comprehensive suite of services to manage and operate clusters of systems located at customer data

centers. Such revenue is recognized ratably over time as the services are provided.

We also generate revenue from custom AI modeling services over time as services are provided or at a point-in-

time upon completion and acceptance by the customer of contract deliverables, depending on the terms of the

agreement.

***Cost of Sales and Gross Profit***

*Hardware Cost of Sales*

Cost of sales for hardware consists primarily of the cost of materials, such as wafers processed by third-party

foundries, costs associated with packaging, assembly, shipping, logistics, quality assurance, warranty cost, cost of

personnel, including salaries, stock-based compensation, and employee benefits, write-down of inventories, and

facilities expenses.

*Cloud and Other Services Cost of Sales*

Cost of sales for cloud-based and other support services revenue primarily consists of data center costs,

depreciation of equipment, cost of personnel, including salaries, stock-based compensation, and employee benefits,

and facilities expenses.

***Gross Profit and Gross Margin***

Gross profit represents revenue less cost of sales. Gross margin is gross profit expressed as a percentage of

revenue. Our gross profit has been, and we expect will continue to be, influenced by several factors, including sales

volume and pricing of our products and services, changes in inventory costs, including wafer yield, contract

manufacturing, and supplier pricing, data center costs, cost of logistics, and personnel costs.

***Operating Expenses***

*Research and Development Expenses*

Research and development expenses primarily consist of costs incurred in performing research and development

activities and include salaries, stock-based compensation, employee benefits, tape-out costs, which include layout

services, mask sets, prototype components, system qualification and testing incurred before releasing new system

designs into production, shipping, data center costs, depreciation and amortization, professional services fees, cloud

computing, and facilities expenses. We expense research and development costs as incurred.

We also expense software development costs, including costs to develop the software component of hardware to

be sold, leased, or marketed to external users, before technological feasibility is reached. Technological feasibility is

typically reached shortly before the release of such products.

*Sales and Marketing Expenses*

Sales and marketing expenses primarily consist of personnel costs, including salaries, stock-based

compensation, employee benefits, public relations costs, tradeshow and other sales event costs, travel and

entertainment costs, and facilities expenses.

*General and Administrative Expenses*

General and administrative expenses consist primarily of personnel costs, including salaries, stock-based

compensation, employee benefits and bonuses related to corporate, finance, legal, information technology and

human resource functions, professional services fees, audit and compliance expenses, software subscription costs,

travel and entertainment costs, insurance costs, depreciation and amortization, allocation of facilities and other

general corporate expenses. We expect to incur additional expenses as a result of operating as a public company,

including expenses to comply with the rules and regulations applicable to companies listed on a national securities

exchange, expenses related to auditing, compliance, and reporting obligations pursuant to the rules and regulations

of the SEC, as well as higher expenses for general and director and officer insurance, investor relations, and

professional services.

***Other Income (Expense), Net***

Other income (expense), net consists primarily of interest income, dividend income, and gains and losses arising

from remeasurement of forward contract liability and warrant liability to fair value at each reporting date.

***Income Tax Expense***

Income tax expense consists of U.S. federal and state income taxes and income taxes in certain foreign

jurisdictions in which we conduct business. We maintain a full valuation allowance on our federal and state deferred

tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized. Our

effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those

jurisdictions, as well as non-deductible expenses, such as stock-based compensation, and changes in our valuation

allowance.

**Results of Operations**

The following tables set forth selected consolidated statements of operations data for each of the periods

indicated:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| Revenue: |  |  |
| Hardware............................................................................................................... | $211965 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Cloud and other services....................................................................................... | 78287 |  |
| Total revenue.................................................................................................... | 290252 |  |
| Cost of sales<sup>(1)</sup>: |  |  |
| Hardware............................................................................................................... | 137310 |  |
| Cloud and other services....................................................................................... | 30204 |  |
| Total cost of sales............................................................................................. | 167514 |  |
| Gross profit................................................................................................................ | 122738 |  |
| Operating expenses: |  |  |
| Research and development<sup>(1)</sup>................................................................................ | 158234 |  |
| Sales and marketing<sup>(1)</sup>........................................................................................... | 20980 |  |
| General and administrative<sup>(1)</sup>................................................................................ | 44962 |  |
| Total operating expenses.................................................................................. | 224176 |  |
| Loss from operations................................................................................................. | (101438) |  |
| Other income (expense), net...................................................................................... | (378237) |  |
| Loss before income tax.............................................................................................. | (479675) |  |
| Income tax expense................................................................................................... | 1927 |  |
| Net loss...................................................................................................................... | $(481602) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

_______________

(1)Includes stock-based compensation expense as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| Cost of sales....................................................................................................................................... | $921 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Research and development................................................................................................................ | 41397 |  |
| Sales and marketing........................................................................................................................... | 8723 |  |
| General and administrative................................................................................................................ | 7523 |  |
| Total stock-based compensation expense.......................................................................................... | $58564 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

Stock-based compensation expense included $30.7 million and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million for the years ended December 31,

2024 and 2025, respectively, related to secondary transactions in each period and a common stock repurchase from

employees during the year ended December 31, 2025. See Note 14 to our audited consolidated financial statements

and our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus for

additional details on the secondary transactions.

The following table sets forth selected consolidated statements of operations data expressed as a percentage of

revenue for each of the periods indicated:

---

| | |
|:---|:---|
|  | **Year Ended December 31,** |
|  | **2024** |
|  | **(as a percentage of revenue)** |
| Revenue: |  |
| Hardware............................................................................................................... | 73.0% |
| Cloud and other services....................................................................................... | 27.0 |
| Total revenue.................................................................................................... | 100.0 |
| Cost of sales: |  |
| Hardware............................................................................................................... | 47.3 |
| Cloud and other services....................................................................................... | 10.4 |
| Total cost of sales............................................................................................. | 57.7 |
| Gross profit................................................................................................................ | 42.3 |
| Operating expenses: |  |
| Research and development................................................................................... | 54.5 |
| Sales and marketing.............................................................................................. | 7.2 |
| General and administrative................................................................................... | 15.5 |
| Total operating expenses.................................................................................. | 77.2 |
| Loss from operations................................................................................................. | (34.9) |
| Other income (expense), net...................................................................................... | (130.3) |
| Loss before income tax.............................................................................................. | (165.2) |
| Income tax expense................................................................................................... | 0.7 |
| Net loss...................................................................................................................... | (165.9)% |

---

**Comparison of the Years Ended December 31, 2024 and 2025**

***Revenue***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Hardware............................................................. | $211965 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Cloud and other services..................................... | 78287 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Total revenue....................................................... | $290252 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |

---

Total revenue for the year ended December 31, 2025 increased by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %, compared to the

year ended December 31, 2024, primarily due to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. G42 represented $246.0 million, or 85%, and

$&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %, of our total revenue for the years ended December 31, 2024 and 2025, respectively. In the

year ended December 31, 2025, MBZUAI represented $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp; %, of our total revenue.

Hardware revenue increased by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2025 compared to the year

ended December 31, 2024. This increase was primarily due to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. G42 represented $201.4 million, or 95%,

and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %, of our hardware revenue for the years ended December 31, 2024 and 2025,

respectively. MBZUAI represented $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp; %, of our hardware revenue for the year ended

December 31, 2025.

Cloud and other services revenue increased $&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2025 compared to

the year ended December 31, 2024, primarily due to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. G42 represented $44.6 million, or 57%, and

$&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp; %, of our cloud and other services revenue for the years ended December 31, 2024 and 2025,

respectively. MBZUAI represented $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp; %, of our cloud and other services revenue for the year

ended December 31, 2025.

***Cost of Sales***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Hardware............................................................. | $137310 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Cloud and other services..................................... | 30204 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Total cost of sales................................................ | $167514 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |

---

Cost of sales for the year ended December 31, 2025 increased by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %, compared to the

year ended December 31, 2024, primarily due to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

***Gross Profit and Gross Margin***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Gross profit......................................................... | $122738 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Gross margin....................................................... | 42.3% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |

---

Gross profit for the year ended December 31, 2025 was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, an increase of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million

compared to $122.7 million in the year ended December 31, 2024. Gross margin for the year ended December 31,

2025 increased to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % from 42.3% for the year ended December 31, 2024.

***Operating Expenses***

*Research and Development*

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Research and development.................................. | $158234 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Percentage of revenue......................................... | 55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % |  |

---

Research and development expenses for the year ended December 31, 2025 increased by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million,

or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %, compared to the year ended December 31, 2024. The increase in research and development expenses

was primarily attributable to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

*Sales and Marketing*

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Sales and marketing............................................ | $20980 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Percentage of revenue......................................... | 7% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |  |

---

Sales and marketing expenses for the year ended December 31, 2025 increased by $&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp; %,

compared to the year ended December 31, 2024. The increase in sales and marketing expenses was primarily

attributable to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

*General and Administrative*

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| General and administrative................................. | $44962 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Percentage of revenue......................................... | 15% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |  |

---

General and administrative expenses for the year ended December 31, 2025 decreased by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million,

or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %, compared to the year ended December 31, 2024. The decrease in general and administrative expenses

was primarily attributable to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

*Other Income (Expense), Net*

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Other income (expense), net............................... | $(378237) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |

---

Other income (expense), net for the year ended December 31, 2025 increased by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %,

compared to the year ended December 31, 2024. The increase in other income (expense), net was primarily

attributable to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

*Income Tax Expense*

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2024** | **2025** | <br>**% Change** |
|  | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
| Income tax expense............................................. | $1927 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |

---

Income tax expense for the year ended December 31, 2025 decreased compared to the year ended December 31,

2024 due to&nbsp;&nbsp;&nbsp;&nbsp; .

**Quarterly Results of Operations**

The following table sets forth selected unaudited quarterly consolidated statements of operations data for each

of the quarters presented. The information for each of these quarters has been prepared on the same basis as our

audited consolidated financial statements and reflect, in the opinion of management, all adjustments, consisting of

normal, recurring adjustments that are necessary for a fair statement of this information. These quarterly operating

results are not necessarily indicative of the results that may be expected for a full year or any other fiscal period.

This information should be read in conjunction with our audited consolidated financial statements and related notes

included elsewhere in the prospectus.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** |
|  | **March 31,**<br>**2024**<br>| **June 30,**<br>**2024**<br>| **September 30,**<br>**2024**<br>| **December 31,**<br>**2024**<br>| **March 31,**<br>**2025**<br>| **June 30,**<br>**2025**<br>| **September 30,**<br>**2025**<br>| **December 31,**<br>**2025**<br>|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Revenue: |  |  |  |  |  |  |  |  |
| Hardware................... | $49411 | $54858 | $50280 | $57416 |  |  |  |  |
| Cloud and other <br>services.................<br>| 17220 | 14913 | 22039 | 24115 |  |  |  |  |
| Total revenue...... | 66631 | 69771 | 72319 | 81531 |  |  |  |  |
| Cost of sales<sup>(1)</sup>: |  |  |  |  |  |  |  |  |
| Hardware................... | 33619 | 32823 | 34143 | 36725 |  |  |  |  |
| Cloud and other <br>services.................<br>| 7873 | 6068 | 6169 | 10094 |  |  |  |  |
| Total cost of <br>sales................<br>| 41492 | 38891 | 40312 | 46819 |  |  |  |  |
| Gross profit..................... | 25139 | 30880 | 32007 | 34712 |  |  |  |  |
| Gross margin................... | 37.7% | 44.3% | 44.3% | 42.6% |  |  |  |  |
| Total operating <br>expenses<sup>(1)</sup>..................<br>| 43190 | 54640 | 51384 | 74962 |  |  |  |  |
| Loss from operations...... | (18051) | (23760) | (19377) | (40250) |  |  |  |  |
| Net income (loss)............ | $(15750) | $(50855) | $(309341) | $(105656) |  |  |  |  |

---

_______________

(1)Includes stock-based compensation as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** |
|  | **March 31,**<br>**2024**<br>| **June 30,**<br>**2024**<br>| **September** <br>**30,**<br>**2024**<br>| **December** <br>**31,**<br>**2024**<br>| **March 31,**<br>**2025**<br>| **June 30,**<br>**2025**<br>| **September** <br>**30,**<br>**2025**<br>| **December** <br>**31,**<br>**2025**<br>|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cost of sales.................................................. | $189 | $231 | $237 | $264 |  |  |  |  |
| Operating expenses....................................... | 9237 | 22672 | 16591 | 9143 |  |  |  |  |
| Total stock-based compensation........... | $9426 | $22903 | $16828 | $9407 |  |  |  |  |

---

***Revenue***

Hardware revenue varies based on the number of AI systems delivered and has significantly increased over

time, reflecting demand from existing and new customers. Cloud and other services revenue generally increased due

to ongoing support services as a result of our growing installed base and the growing demand for inference-related

services.

***Cost of Sales***

Cost of sales has varied based on mix of the volume of AI systems, inference services, professional services,

and ongoing support services delivered in each quarter. Cost of sales has significantly increased over time as the

volume of hardware units sold has grown and as data center costs have ramped to support our newly launched

inference services business.

***Gross Profit and Gross Margin***

Gross profit has primarily increased as a result of higher revenues. The mix of hardware and services revenue

has the potential to impact our gross margin in a particular quarter.

***Total Operating Expenses***

Research and development expense was the largest component of our operating expenses and was

approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % or higher during the quarters presented.

**Quarterly Trends in Non-GAAP Financial Measures**

***Non-GAAP Operating Loss and Non-GAAP Net Loss***

The following tables set forth our non-GAAP operating loss and non-GAAP net income (loss), for each of the

periods presented. See the section titled "—Non-GAAP Financial Measures" for the details of how we calculate

non-GAAP operating loss and non-GAAP net loss:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** |
|  | **March 31,**<br>**2024**<br>| **June 30,**<br>**2024**<br>| **September 30,**<br>**2024**<br>| **December 31,**<br>**2024**<br>| **March 31,**<br>**2025**<br>| **June 30,**<br>**2025**<br>| **September 30,**<br>**2025**<br>| **December 31,**<br>**2025**<br>|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| GAAP operating loss......... | $(18051) | $(23760) | $(19377) | $(40250) |  |  |  |  |
| Add: Stock-based <br>compensation expense.<br>| 9426 | 22903 | 16828 | 9407 |  |  |  |  |
| Non-GAAP operating loss. | $(8625) | $(857) | $(2549) | $(30843) |  |  |  |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** |
|  | **March 31,**<br>**2024**<br>| **June 30,**<br>**2024**<br>| **September 30,**<br>**2024**<br>| **December 31,**<br>**2024**<br>| **March 31,**<br>**2025**<br>| **June 30,**<br>**2025**<br>| **September 30,**<br>**2025**<br>| **December 31,**<br>**2025**<br>|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| GAAP net income (loss).... | $(15750) | $(50855) | $(309341) | $(105656) |  |  |  |  |
| Add: Stock-based <br>compensation expense<sup>(1)</sup><br>| 9426 | 22903 | 16828 | 9407 |  |  |  |  |
| Add: Change in fair value <br>of forward contract <br>liability..........................<br>|  | 30327 | 296898 | 74039 |  |  |  |  |
| Non-GAAP net income <br>(loss)..............................<br>| $(6324) | $2375 | $4385 | $(22210) |  |  |  |  |

---

_______________

(1)Non-GAAP net income (loss) does not include the tax effects of the stock-based compensation expense

adjustment because such tax effects were not material during the periods presented.

**Liquidity and Capital Resources** 

As of December 31, 2025, our principal sources of liquidity were cash, cash equivalents, and restricted cash of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million. Restricted cash consisted of $&nbsp;&nbsp;&nbsp;&nbsp;million as of December 31, 2025 and was primarily due to&nbsp;&nbsp;&nbsp;&nbsp; . Our

cash and cash equivalents primarily consisted of cash deposited in money market or holding accounts with financial

institutions.

Since our inception, we have financed our operations primarily through sales of redeemable convertible

preferred stock and payments from our customers, including prepayments from G42 and MBZUAI. We had no

outstanding debt as of December 31, 2025. Our principal uses of cash in recent periods have been to fund our

operations and invest in research and development. As of December 31, 2025, we had an accumulated deficit of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million.

Our short-term and long-term liquidity requirements primarily arise from research and development efforts, as

well as inventory and other working capital requirements. We have used funds to make investments, capital

expenditures, and common stock repurchases from time to time. Our ability to fund our liquidity requirements will

depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore,

subject to prevailing global macroeconomic conditions and financial, business, and other factors, some of which are

beyond our control.

If we are unable to obtain funding when necessary, we may be forced to delay, reduce, or eliminate some or all

of our research and development programs, product portfolio expansion, or commercialization efforts. However, we

believe that our existing cash and cash equivalents will provide sufficient liquidity to operate our business and fund

our current and assumed obligations for at least the next 12 months. We expect to require additional capital

resources in the future, or may determine to raise additional funds opportunistically. If we raise additional funds

through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant

dilution, and any new equity securities we issue could have rights, preferences, and privileges superior to those of

holders of our Class A common stock. In addition, incurring any indebtedness would increase our fixed obligations,

and may include covenants or other restrictions that could impede our ability to manage our operations. We

continuously evaluate our liquidity and capital resources, including our access to external capital, and our future

capital requirements will depend on many factors, including working capital needs, costs to hire and retain

employees in a highly competitive industry, and research and development expenditures, among others. We cannot

be sure that we will be able to obtain financing on reasonable terms, or at all, in the future.

The following table summarizes our cash flows for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| Net cash provided by (used in) operating activities................................................... | $451978 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Net cash provided by (used in) investing activities................................................... | (16785) |  |
| Net cash provided by financing activities.................................................................. | 112296 |  |

---

***Operating Activities***

Net cash used in operating activities of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2025

included&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

Net cash provided by operating activities was $452.0 million for the year ended December 31, 2024, driven

primarily by a $640.3 million increase in customer deposits and a $38.2 million increase in deferred revenue from

higher support service sales. These inflows were partially offset by working capital uses, including a $145.0 million

increase in inventory due to higher order volumes, a $130.7 million increase in accounts receivable, and a

$17.1 million increase in prepaid expenses and other assets, partially mitigated by a $57.7 million increase in

accounts payable and other liabilities. Operating cash flows also reflect a net loss of $481.6 million adjusted for non-

cash items, including a $401.3 million change in fair value of forward contract liability, $58.6 million of stock-based

compensation, $11.5 million of depreciation and amortization, and $25.3 million of other non-cash charges, partially

offset by $6.5 million related to amortization of premium and accretion of discount on investments.

***Investing Activities***

Net cash provided by investing activities of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2025 was the

result of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

Net cash used in investing activities of $16.8 million for the year ended December 31, 2024, was the result of

$309.5 million in maturities and sales of various investments, partially offset by $302.9 million in purchases of

various investments and $23.4 million in purchases of property and equipment.

***Financing Activities***

Net cash provided by financing activities of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2025 was the

result of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

Net cash provided by financing activities of $112.3 million for the year ended December 31, 2024 was the result

of $84.9 million from the sale of shares of our redeemable convertible preferred stock, net of issuance costs and

$27.8 million in proceeds from stock option exercises.

**Commitments and Contractual Obligations** 

*Operating lease commitments.* As of December 31, 2025, our operating lease commitments included data

centers and corporate office leases, for which we had fixed lease payment obligations of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, with

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million to be paid within 12 months of December 31, 2025, and the remainder thereafter. See "*Leases*" in

Note 16 to our audited consolidated financial statements included elsewhere in this prospectus for additional

information.

*Purchase commitments*. Our purchase commitments are primarily related to software licenses and consulting

services. As of December 31, 2025 , future payments related to non-cancelable commitments of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million

(2025), $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million (2026), and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million (2027). See "*Commitments and Contingencies*" in Note 17 to

our audited consolidated financial statements included elsewhere in this prospectus for additional information.

**Quantitative and Qualitative Disclosures About Market Risk**

***Foreign Currency and Exchange Risk***

The functional currency for each of our subsidiaries, including our subsidiaries located in Canada and India, is

the local currency of the country in which the subsidiary operates. As such, we expect to be exposed to both

currency transaction remeasurement and translation risk. However, we engage in a small number and immaterial

amount of transactions outside of the functional currency of the reporting unit, resulting in negligible exposure to

foreign currency risk. We have not hedged such exposure, although we may do so in the future if our exposure to

foreign currency risk increases. Any fluctuations in exchange rates may adversely affect our financial position,

results of operations and cash flows.

***Interest Rate Risk***

We had cash, cash equivalents, and restricted cash of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million as of December 31, 2025. Cash and cash

equivalents primarily consists of amounts deposited in money market instruments with financial institutions that

have an original maturity of three months or less. We hold cash and cash equivalents for working capital purposes.

Due to the short-term nature of our investments, we have not been exposed to, nor do we anticipate being exposed

to, material risks due to changes in interest rates. A hypothetical 10% change in interest rates during any of the

periods presented would not have had a material impact on our historical consolidated financial statements.

**Critical Accounting Estimates**

We prepare our financial statements in accordance with GAAP. In preparing these financial statements, we are

required to make estimates and judgments that affect the amounts and balances reported and contingencies

disclosed. We evaluate our estimates on an ongoing basis, specifically including those related to revenue

recognition, inventory, stock-based compensation, valuation of our common stock, and income taxes, and base our

estimates on historical experience and various other assumptions that we believe to be reasonable under the

circumstances, the results of which form the basis for making judgments about the carrying values of assets and

liabilities.

The following critical accounting estimates require the use of significant judgment and estimation in the

preparation of our audited consolidated financial statements. The accounting estimates and judgment discussed in

this section are those that we consider to be the most critical in the preparation of our audited consolidated financial

statements. See "*Significant Accounting Policies*" in Note 4 to our audited consolidated financial statements

included elsewhere in this prospectus for additional information.

***Revenue Recognition***

We derive substantially all of our revenue through sales of hardware, delivery of inference services, and

embedded software and through provision of installation, integration, and acceptance services and other technical

support to our customers.

*Contracts with Multiple Performance Obligations*

A critical estimate required in recognizing revenue relates to contracts consisting of more than one performance

obligation. When a contract with a customer consists of more than one performance obligation, we must exercise

judgment in determining whether each obligation within the contract is distinct as well as in determining the relative

standalone selling price to allocate to each performance obligation.

Typically, the standalone selling price is the price at which we sell a promised good or service separately to a

customer. The best evidence of the standalone selling price, when available, is the price we have charged for goods

or services in similar circumstances and to similar customers. If the standalone selling price is not directly

observable, management estimates the standalone selling price using various observable inputs including cost-plus

expected margin analysis due to the limited standalone sales history.

See "*Revenue Recognition*" in Note 4 to our audited consolidated financial statements included elsewhere in this

prospectus for additional information.

***Inventory***

Our inventories consist primarily of semiconductors, memory products, and other component parts purchased

from subcontractors and are carried as raw materials, work-in-progress, and finished goods. We account for

inventories on a weighted average cost basis and state them at the lower of cost or net realizable value. We calculate

the cost of our inventories on an adjusted standard cost basis, which approximates actual cost. We calculate net

realizable value as the estimated selling price of our products less reasonably predictable costs of completion,

disposal, and transportation.

We charge cost of sales on our consolidated statements of operations for provisions made to write down our

inventory balances when circumstances suggest a write down is necessary – for example, when the cost basis of the

inventory exceeds its net realizable value, when quantities exceed expected demand, or when inventories are

otherwise deemed obsolete. The valuation of inventory involves assumptions about the likely method of inventory

disposition, other-than-temporary decreases in product demand, changes in technology, competition, or customer

needs, and future business and macroeconomic conditions, which require use of management judgment. If the future

demand for our products is less favorable than our forecasts, the value of the inventories may be required to be

reduced, which could result in additional expense to us and affect our results of operations. We do not believe there

is a reasonable likelihood that there will be a material change in the future estimates or assumptions that we use to

calculate our inventory reserve. However, if estimates regarding customer demand are inaccurate or changes in

technology affect demand for certain products in an unforeseen manner, we may be exposed to losses or gains that

could be material. If, in any period, we are able to sell inventories that had been written down to a level below the

ultimate realized selling price in a previous period, related revenue would be recorded with a lower or no offsetting

charge to cost of sales, resulting in a net benefit to our gross margin in that period. See "*Inventory*" in Note 4 to our

audited consolidated financial statements included elsewhere in this prospectus for additional information.

***Stock-Based Compensation***

We measure stock-based awards, including stock options, restricted stock unit ("RSUs"), and restricted stock

awards ("RSAs"), granted to employees and non-employees based on the estimated fair value as of the grant date.

Stock option awards with only service-based vesting conditions are granted to employees and non-employees. The

fair value of stock options are estimated using the Black-Scholes option pricing model, which requires the input of

highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the

stock option, the expected volatility of the price of our common stock, risk-free interest rates, and the expected

dividend yield of our common stock. Changes in the assumptions can materially affect the fair value and ultimately

how much stock-based compensation expense is recognized. These inputs are subjective and generally require

significant analysis and judgment to develop. The fair value of RSUs and RSAs are based on the price of our

common stock on the date of grant.

We recognize the fair value of each award with only service-based vesting conditions on a straight-line basis

over the requisite service period of the award. For certain equity awards that have both service- and liquidity-based

vesting conditions, we recognize the expense over the requisite service period if it is probable that the performance

conditions will be achieved. We reassess the achievement of the performance conditions at each reporting date and

adjust the stock-based compensation accordingly for such awards. Stock-based compensation expense is based on

the value of the portion of stock-based awards that is ultimately expected to vest. As such, our stock-based

compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent

periods if actual forfeitures differ from those estimates.

***Common Stock Valuations***

The fair value of common stock underlying our stock-based awards has historically been determined by our

board of directors, with input from management and contemporaneous third-party valuations. We believe that our

board of directors has the relevant experience and expertise to determine the fair value of our common stock. Given

the absence of a public trading market of our common stock, and in accordance with the American Institute of

Certified Public Accountants Practice Aid, *Valuation of Privately-Held Company Equity Securities Issued as*

*Compensation*, our board of directors exercised reasonable judgment and considered numerous objective and

subjective factors to determine the best estimate of the fair value of our common stock at each grant date. These

factors included:

• the results of contemporaneous valuations performed at periodic intervals by a third-party valuation firm;

• the prices, rights, preferences, and privileges of our redeemable convertible preferred stock relative to those

of our common stock;

• the prices of our redeemable convertible preferred stock and common stock sold to investors in arms-length

transactions;

• our actual operating and financial performance and estimated trends and prospects for our future

performance;

• our stage of development;

• the likelihood of achieving a liquidity event, such as an initial public offering, direct listing, or sale of our

company, given prevailing market conditions;

• the lack of marketability involving securities in a private company;

• the market performance of comparable publicly traded companies; and

• U.S. and global capital market conditions.

In valuing our common stock, the fair value of our business was determined using various valuation methods,

including combinations of the income approach and the market approach with input from management. The income

approach involves applying an appropriate risk-adjusted discount rate to projected cash flows based on forecasted

revenue and costs. The market approach estimates value based on a comparison of our company to comparable

public companies in a similar line of business. From the comparable companies, a representative market value

multiple was determined, which was applied to our operating results to estimate the enterprise value of our

company.

Once the enterprise value was determined under the market approach, we derived the equity value of our

company and used a hybrid method that considered both an option pricing model ("OPM") and the probability

weighted expected return method ("PWERM") to allocate that value among the various classes of securities to arrive

at the fair value of our common stock. The OPM is based on the Black-Scholes-Merton option pricing model, which

allows for the identification for a range of possible future outcomes, each with an associated probability. The OPM

is appropriate to use when the range of possible future outcomes is difficult to predict and thus creates highly

speculative forecasts. PWERM involves a forward-looking analysis of the possible future outcomes of an enterprise,

including an initial public offering as well as non-initial public offering market-based outcomes. After the equity

value is determined and allocated to the various classes of securities, a discount for lack of marketability ("DLOM")

is applied to arrive at the fair value of our common stock. A DLOM is applied based on the theory that as an owner

of private company stock, the stockholder has limited opportunities to sell this stock, and any such sale would

involve significant transaction costs, thereby reducing overall fair market value.

In addition, we also considered any secondary transactions involving our capital stock. In our evaluation of

those transactions, we considered the facts and circumstances of each transaction to determine the extent to which

they represented a fair value exchange. Factors considered included transaction volume, timing, whether the

transactions occurred among unrelated parties, and whether the transactions involved investors with access to our

financial information.

Application of these approaches involves the use of estimates, judgment, and assumptions that are highly

complex and subjective, such as those regarding our expected future revenue, expenses, and future cash flows,

discount rates, market multiples, the selection of comparable companies, and the probability of possible future

events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions

impact our valuations as of each valuation date and may have a material impact on the valuation of our common

stock.

For valuations after the completion of this offering, our board of directors will determine the fair value of each

share of underlying common stock based on the closing price of our common stock as reported on the grant date.

Future expense amounts for any particular period could be affected by changes in our assumptions or market

conditions.

***Leases***

We determine if an arrangement is a lease at its inception. Operating leases with lease terms of more than 12

months are included in right-of-use assets and operating lease liabilities in the consolidated balance sheets. Right-of-

use assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the

obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are

recognized at the commencement date based on the present value of lease payments over the lease term. We use

incremental borrowing rates based on the information available at the commencement date in determining the

present value of lease payments if an implicit rate is not available.

The right-of-use assets also includes any rent prepayments, lease incentives upon receipt, and straight-line rent

expense impacts, which represent the differences between operating lease liabilities and right-of-use assets. Lease

terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

Lease and non-lease components have been combined.

**JOBS Act Accounting Election** 

We are an emerging growth company, as defined in the JOBS Act, and, for so long as we continue to be an

emerging growth company, we may take advantage of certain exemptions from various reporting requirements that

would have been applicable were we a public company that was not an emerging growth company. Such exemptions

include, but are not limited to, the exemption to comply with the auditor attestation requirements of Section 404 of

the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports

and proxy statements, the exemption from holding a non-binding advisory vote on executive compensation, and the

exemption from stockholder approval of any golden parachute payments not previously approved. In addition,

pursuant to Section 107 of the JOBS Act, as an emerging growth company, we have elected to take advantage of the

extended transition period for complying with new or revised accounting standards until those standards would

otherwise apply to private companies. If we cease to be an emerging growth company, we will no longer be able to

take advantage of these exemptions or the extended transition period for complying with new or revised accounting

standards.

**Recent Accounting Pronouncements** 

See Note 3 to our audited consolidated financial statements included elsewhere in this prospectus for additional

information.

**BUSINESS**

**Overview**

We are building the fastest AI infrastructure in the world.

In AI, speed is critical to win. Speed improves user engagement, expands product capabilities, can lower

operating costs, and opens new markets. It shortens iteration cycles for engineers, researchers, and professionals

across industries, allowing them to be more productive. Speed unlocks new applications and new industries.

In technology, "speed unlocking value" is a pattern that has repeated itself over the past 30 years. Faster

solutions are used more often and for more demanding tasks. For example, the speed of broadband transformed the

internet from static pages into real-time applications, enabling new products and industries. Similarly, in search,

Google showed that even short delays in delivering answers significantly reduced usage and engagement.

AI repeats this pattern. As AI has moved from novelty to necessity, AI work has grown more demanding, and

speed has become a bottleneck. Faster AI does more work in less time, providing better answers sooner.

Our solutions are built for speed. Cerebras Inference delivers answers up to 15 times faster than leading GPU-

based solutions as benchmarked on leading open-source models. Similarly, many customers have achieved more

than 10 times faster training time-to-solution compared to leading GPU systems of the same generation.

These performance breakthroughs are the result of our core innovation: the world's first and only

commercialized wafer scale processor. Called the Wafer-Scale Engine ("WSE"), our processor is 58 times larger

than NVIDIA's B200 chip and has 2,625 times more memory bandwidth than NVIDIA's B200 package, which

contains two individual chips. To build the WSE, we solved the 75-year-old compute industry problem of wafer-

scale integration to produce, yield, power, and cool a chip of this size. This size is what enables our incredible AI

speeds. By bringing massive compute and memory onto a single piece of silicon and integrating it into a purpose-

built system and software stack, we deliver exceptional AI speed for customers on premises and via the cloud.

Our customers include hyperscalers, foundation model labs, AI native and digital native businesses, enterprises,

and Sovereign AI initiatives. Our customers use Cerebras solutions to run applications that demand speed, scale, and

intelligence. This work includes training and serving large frontier models with near-instant responses, processing

massive datasets in real time, and generating full-stack applications in a single step. Once customers adopt fast

inference, user expectations for interactivity rise, and engineering teams shift from latency optimizations to other

work, making it difficult to return to slower inference.

We deliver our solutions to customers in several different ways. Organizations that require full data and

infrastructure control can purchase Cerebras AI supercomputers for on-premises deployments. Customers seeking

cloud flexibility can access Cerebras compute through consumption-based models on Cerebras Cloud or through

partner clouds. For example, our high-speed inference services are available through partners, including AWS

Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway, OpenRouter, and Hugging

Face, enabling seamless adoption within existing workflows.

Our ability to deliver differentiated performance has made us a strategic partner to many of our largest

customers. Beyond providing compute infrastructure, we provide AI services to our customers to co-develop

solutions to address their most complex challenges, from training state-of-the-art models to optimizing deployments

for each application's needs. These partnerships have expanded over time; notably, our top ten customers by year-to-

date revenue through September 30, 2025 increased their aggregate spend with us by approximately 80% within 12

months of their initial purchase, often including contracts for co-development.

AI is one of the fastest growing technologies in history. We believe that our high-speed AI solutions give us a

meaningful competitive advantage in this market. We believe that further adoption of AI, accelerated by increased

penetration, more frequent usage, and more complex applications, will continue to rapidly expand the market.

According to IDC, investments in AI solutions and services are projected to yield a global cumulative impact of

$22.3 trillion by 2030, representing approximately 3.7% of the global GDP. The combined market for AI training

infrastructure and our addressable market within AI inference is estimated to be $251 billion in 2025 and is expected

to grow to $672 billion by 2029—a 28% CAGR, according to Bloomberg Intelligence. This estimate indicates that

AI inference will grow more than twice as fast as AI training infrastructure through 2029. With the fastest inference

platform on the market, as benchmarked by Artificial Analysis, and a proven track record in large-scale training, we

believe we are well-positioned to capture growth across both parts of the AI infrastructure market.

Our growth reflects the broader acceleration of AI adoption. Our revenue increased from $25.0 million in 2022

to $79.0 million in 2023 and to $290.3 million in 2024, representing a more than tenfold increase over three years.

Our revenue increased to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in 2025, representing year-over-year growth of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; %. We incurred

net losses of $481.6 million and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in 2024 and 2025, respectively.

**Industry Background**

***AI is the Next Technological Shift***

Over the past 50 years, the compute industry has undergone a series of secular shifts, each of which expanded

access to compute and transformed global productivity. In the 1990s, the Internet reshaped how people worked,

communicated, transacted, and learned, catalyzing new industries and business models. In the 2000s and 2010s, the

proliferation of mobile devices and the emergence of cloud computing delivered unprecedented flexibility, scale,

and reach, supporting millions of new digital products and experiences.

We believe AI represents the next major technological shift—one with the potential to exceed the

transformational impact of prior cycles.

In comparison to previous technology shifts, the adoption of AI is astonishing. Its market penetration has

occurred multiple times faster than the PC and the cloud. ChatGPT reached 100 million users in less than 2.5

months, more than twenty times faster than Facebook. As of September 2025, ChatGPT reported 700 million weekly

active users.

![busienss1b.jpg](busienss1b.jpg)

According to Pew Research Center, as of June 2025, around 62% of U.S. adults interacted with AI at least

several times a week, with 31% doing so almost constantly (at least several times a day), and one-third of U.S. adults

under 30 saying they interacted with AI several times a day. Additionally, the Digital Education Council found in

2024 that 86% of higher-education students used AI. According to a McKinsey survey in 2025, the share of

respondents saying their organizations are using AI in at least one business function has increased since their

research last year: 88% reported regular AI use in at least one business function in 2025 compared with 78% a year

ago. In the third quarter of 2025, Gallup reported daily use of AI in the workplace had more than doubled in the past

12 months, with 10% of U.S. employees reporting they used AI in their daily roles.

The strong rate of AI adoption is driven by the simple fact that AI has transitioned from novelty to necessity and

is now used across consumer and enterprise domains. Individuals and organizations rely on AI to solve problems,

build products, accelerate research, improve patient outcomes, enhance decision-making, streamline operations,

enable innovation, and deliver personalized experiences.

The rise of AI depends on massive computational resources. This is where Cerebras fits in.

![cerebras-drsx1219.jpg](cerebras-drsx1219.jpg)

***Inference is Driving the AI Compute Demand, as Frontier AI Models Grow More Capable***

AI is composed of two stages: **training** and **inference.** Training is the process of creating and teaching the AI

model; inference is the process of using the model to generate responses. Early progress in AI came primarily from

training larger models. Larger models, which used more compute during training, improved AI's accuracy. In this

training-centric era, inference was straightforward and required little computation; it simply generated answers from

a trained model in a single step.

Today, AI has entered a new era centered on inference. New techniques have emerged that make models

smarter *as they are being used*. This approach—called "inference-time compute" or "test-time compute"—has

become the dominant mode of inference.

![cerebras-drsx12194.jpg](cerebras-drsx12194.jpg)

Instead of depending primarily on the trained model for accuracy, today's frontier models—such as OpenAI's

GPT-5, Anthropic's Claude Sonnet 3.7, and Google's Gemini Pro 3.0—perform substantial computation during

inference to simulate **reasoning**. These models effectively "think through" the problem:planning steps, checking

their own work, and refining responses before delivering a final, higher-quality result. These additional steps use

substantially more compute during inference, while producing more accurate answers.

![cerebras-drsx1219a.jpg](cerebras-drsx1219a.jpg)

These reasoning capabilities have fundamentally changed how people use AI. Inference is no longer limited to

answering questions; modern AI applications now perform actions on behalf of their users. They can directly book

travel itineraries, code full web applications from scratch, help customers apply for mortgages, automatically

analyze legal contracts for discrepancies, process insurance claims, and more. As a result, demand for AI inference

has surged alongside the adoption of these smarter reasoning models that leverage more inference-time compute.

Ultimately, demand for inference is driven by the compounding effect of three forces: the number of users, the

frequency of use, and the increasing complexity of the use case. Each of these forces is growing at an extraordinary

rate, producing a geometric expansion of demand for inference and its underlying compute.

![cerebras-draftgraphics_1219.jpg](cerebras-draftgraphics_1219.jpg)

Reasoning during inference delivers smarter AI responses but requires significantly more compute. As models

become more capable, users rely on them for increasingly ambitious tasks, further driving compute needs. Today's

workloads—including video generation, deep research, and long-form analysis—can require many orders of

magnitude more compute than answering basic questions.

***Reasoning Makes Inference Speed a Necessity***

forcing customers to wait for answers.

Reasoning changes the shape of inference. Reasoning systems do not complete tasks in a single request-and-

response step. They execute a sequence of sequential and dependent steps—such as planning, refinement, and

verification—until the task is completed. Each step consumes compute and contributes to total completion time.

Slower execution of each step compounds, and then the task takes much longer to complete. Faster execution at each

step shortens the overall time to answer.

Complex tasks (harder problems) are more valuable to solve but they require the reasoning system to go through

a longer sequence of steps. This amplifies the benefit of speed and the penalty for being slow. Speed enables more

accurate answers to harder problems in less time. Speed expands the range of tasks that AI can address, thereby

broadening its addressable market. Conversely, slow AI produces longer wait times, making many applications

impractical to deploy.

![cerebras-drsx12191.jpg](cerebras-drsx12191.jpg)

Speed enables AI to address more complex, higher value tasks. This, in turn, brings new users to AI, who use

AI more frequently and to solve more complex problems. And herein is the flywheel. More users, more frequent

users, and more complex use cases all increase AI compute usage.

***Fast Inference Enables the Next Generation of AI Workloads, With Coding as a Clear Early Signal***

As AI uses more compute to tackle increasingly complex problems, a fundamental challenge emerges: everyone

wants a better response for complicated requests, but nobody wants to wait to get a response.

We are solving this problem. Cerebras Inference delivers answers up to 15 times faster than leading GPU-based

solutions as benchmarked on leading open-source models. This speed advantage enables our solutions to deliver

real-time performance for the most advanced reasoning models, enabling complex tasks to be completed more

accurately and quickly.

As discussed, fast and accurate results delight users, drive engagement, and unlock new classes of applications

and business opportunities. Faster AI compute produces answers in less time, which drives more frequent usage,

new types of applications, and therefore greater compute demand.

These dynamics are already visible in the market. Three fast-growing categories—**software development, deep**

**research systems, and voice applications**—illustrate the importance of speed. For these and many other similar

applications, inference speed is a necessity.

• **AI-powered software development** provides a clear early signal. Coding with AI is interactive and

sensitive to delay. Delay impairs a developer's train of thought, and as a result, developers are more likely

to abandon tools that slow them down.

AI can now write code. It reasons over large codebases and then uses the multi-step process previously

described to generate, modify, and run code. Inference speed has become a primary determinant for

adoption. Products such as Cursor, Claude Code, Codex, Windsurf, and GitHub Copilot act as autonomous

collaborators—planning, editing, and validating code across repositories in response to natural-language

instructions from developers. These systems require complex, multi-step tasks, including continuous

reasoning and long-context memory. Fast inference is the only way to avoid frustrating wait times.

AI-native coding products barely existed in 2023. Yet they collectively generated billions in ARR in 2025

and continue to accelerate. For example, AI coding applications like Lovable and Cursor are among some

of the fastest growing developer tools in history.

Coding demonstrates a fundamental pattern in reasoning systems: wherever AI involves continuous

interaction, multi-step reasoning, and sensitivity to response time, speed determines utility. Those same

conditions are present across a growing set of AI applications.

• **Deep research systems** apply similar reasoning to knowledge work, performing multi-step retrieval and

synthesis across large datasets to deliver structured insights in real time. Platforms such as AlphaSense rely

on real-time inference to sift through a higher volume of documents to help analysts and enterprises find

answers faster.

• **Voice applications** include conversational agents, avatars, and digital twins from companies like Meta,

Tavus, and OpenCall. Real-time performance is critical for voice: sub-second latency makes interactions

feel natural and gives these systems time to call tools or retrieve data mid-conversation for richer,

contextual responses.

Together, we believe these applications lead the way in the next phase of AI adoption: systems that think, act,

and interact continuously, driving sustained demand for faster and more efficient compute infrastructure.

In this environment, speed directly shapes usage. Long wait times limit real-time applications, stunt the

diffusion of AI capabilities, and can foreclose new markets and applications. As a result, slow systems lose users,

limit capability, and stall innovation, while faster systems are used more often and for more demanding workloads.

We believe speed is a defining advantage in modern AI. Reasoning is intelligence, and intelligence compounds

with speed. We believe the ability to deliver fast, scalable reasoning will define not only the next decade of

technology, but also shape the future of how people work, create, and interact.

**Our Market Opportunity**

We address a large and rapidly growing market for AI infrastructure. According to Dell'Oro Group, worldwide

data center infrastructure capital expenditures are expected to grow from approximately $597 billion in 2025 to

$1.19 trillion by 2029, representing a 19% CAGR. AI infrastructure increasingly dominates global IT spending.

***Training***

The AI training infrastructure market is expected to grow from approximately $185 billion in 2025 to $380

billion by 2029, a 20% CAGR, according to Bloomberg Intelligence. This market is characterized by large-scale

capital buildouts as hyperscalers, foundation model labs, enterprises, and Sovereign AI initiatives, invest in

developing foundation models and fine-tuning capabilities. We have demonstrated strong success in this market,

most notably through hardware and models we've trained for G42, MBZUAI, GlaxoSmithKline, Sandia National

Laboratory, the U.S. Department of Defense, and other training customers.

***Inference***

Based on Bloomberg Intelligence data, our addressable market within the AI inference market is expected to

grow from approximately $66 billion in 2025 to $292 billion by 2029, a 45% CAGR.

The AI inference market scales with the number of AI users, a number we expect to converge with the global

internet user base over time. Inference compute can be accessed at the hardware level through on-premises

deployments and at the cloud/API level, measured in tokens served. We serve both through Cerebras AI

supercomputers, which are deployed directly in customer data centers, and Cerebras Inference Cloud, which

addresses the token-based API market.

The token-based market is expanding rapidly. In October 2025, Google reported Gemini was serving 1.3

quadrillion tokens per month—a market that was effectively zero before the launch of ChatGPT in late 2022.

Cerebras Inference Cloud directly serves this market. Because the AI compute we provide is general purpose, we

serve a wide range of models used across verticals—consumer applications, code generation, enterprise AI, and

more. The same infrastructure that powers a chat application can power a financial model or a coding agent.

The combined market for AI training infrastructure and our addressable market within AI inference is estimated

to be $251 billion in 2025 and is expected to grow to $672 billion by 2029—a 28% CAGR, according to Bloomberg

Intelligence. This estimate indicates that AI inference will grow more than twice as fast as AI training infrastructure

through 2029, and we expect AI inference to represent an increasing share of total AI infrastructure demand as

deployed models scale to serve global user bases. With the fastest inference platform on the market, as benchmarked

by Artificial Analysis, and a proven track record in large-scale training, we believe we are well-positioned to capture

growth across both markets.

**Our Solution**

We are building the fastest commercial AI infrastructure in the world. Our AI supercomputers are purpose built

to make AI fast. They are built for the latency-sensitive, reasoning workloads that define modern AI. Our full-stack

hardware and software platform is designed to complete AI tasks significantly faster and more efficiently than

comparable GPU-based solutions, whether deployed on premises, through the Cerebras Cloud, or via partner clouds.

***1. Hardware Platform***

At the core of our solution is the Cerebras WSE, the largest and fastest AI processor ever brought to market in

high volumes. The WSE combines 900,000 compute cores, 44 gigabytes of on-chip memory, and 21 petabytes of

memory bandwidth on the largest commercial chip ever built. The WSE-3 is 58 times larger than NVIDIA's B200

chip. The WSE has 19 times more transistors, 250 times more on-chip memory, and 2,625 times more memory

bandwidth than NVIDIA's B200 package, which contains two individual chips.

Each WSE is housed inside a Cerebras CS-3 system, our fully integrated AI compute system that includes

advanced cooling, power delivery, and interconnect technology. Multiple CS-3 systems connect to form Cerebras AI

supercomputers deployed on premises in customer data centers and in the cloud.

![cerebras-drsx12193.jpg](cerebras-drsx12193.jpg)

***2. Co-designed Software Platform***

Our software platform makes wafer-scale computing simple to use. It spans the full AI life cycle—from model

programming and compilation, to training and inference, to cluster orchestration.

• **Cerebras Compiler** compiles PyTorch models directly to the WSE, eliminating the need for CUDA or

distributed programming and providing an easy-to-use developer experience.

• **Cerebras Inference Serving Stack** delivers ultra-low-latency inference with industry-standard APIs for

production use.

• **Cerebras Cluster Manager** orchestrates multiple CS-3 systems into one logical AI supercomputer,

handling scheduling, telemetry, and health monitoring at scale.

Because every layer is co-designed with our hardware, customers can scale training and inference across

frontier-size models without rewriting code or managing distributed infrastructure.

***3. Flexible Deployment Models***

Our technology is designed to be delivered in the form that best accelerates a customer's AI roadmap. Our

platform is designed for flexibility—meeting organizations where they are, and scaling with them as their ambitions

grow.

• **Cerebras Cloud:** Provides high-performance AI compute through a simple API, allowing customers to

serve open-source, fine-tuned, or proprietary models with production-grade reliability.

• **Partner Clouds:** Offer seamless access to Cerebras systems through leading cloud providers including

AWS Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway,

OpenRouter, and Hugging Face, extending our reach across the global AI ecosystem.

• **On-Premises Deployments:** Deliver fully integrated AI supercomputers and install them directly in

customer environments, giving enterprises, Sovereign AI initiatives, national laboratories, and defense

organizations complete control over data, performance, and operations. We also operate and manage large

clusters of AI supercomputers for some of our customers.

• **Hybrid Deployments:** Enable customers to move fluidly between on-premises and cloud environments

through a unified software stack, maintaining consistent performance and workflows as they scale.

Customers choose the consumption model that fits their needs—buying inference by the token, running training

workloads by the week or month, reserving dedicated capacity for long-term production deployments, or purchasing

on-premises infrastructure.

![business1b.jpg](business1b.jpg)

***4. AI Model Services***

Our AI experts accelerate customers' ability to take AI applications from concept to production. With deep

experience training frontier-scale models across modalities, our team helps customers select model architectures,

prepare large-scale training data, and train and fine-tune models for production. We also design optimized

deployments for customers—training draft or speculative decoding models and tuning configurations to balance

latency, throughput, and cost for each application.

We excel at turning AI ambition into business results. By augmenting customer teams with advanced AI

expertise, we help customers design, build, and deploy custom models that often outperform existing state of the art,

giving customers a meaningful competitive advantage.

Together, our hardware platform, unified software, and AI model services form an integrated platform that

becomes increasingly valuable over time. As customers build models, workflows, and applications on Cerebras, the

platform can become deeply embedded in their AI development and operations, leading to durable relationships.

***What This Means for Customers***

Our customers, which include hyperscalers, foundation model labs, AI native and digital native businesses,

enterprises, and leaders of Sovereign AI initiatives, complete tasks dramatically faster than on GPU-based systems.

Faster reasoning improves user experience, increases engagement, accelerates iteration, and enables new classes of

AI applications. This speed advantage compounds in production environments, where reduced latency and shorter

training cycles have meaningful business impact.

**Key Customer Benefits**

Through our full-stack AI offerings, we deliver tangible improvements across four key dimensions that define

AI value in the real world: **speed, quality, cost, and simplicity**.

***1. Speed: Real-Time Reasoning Unlocks New Benefits From AI***

Our systems achieve dramatically faster inference than GPU clusters, enabling applications such as real-time

coding agents, nearly instant deep research, and digital twins that were previously impractical or impossible.

Customers describe the leap in inference speed as going from dial-up to broadband—an advancement that redefines

what AI can do.

New classes of products that customers have built and use daily with Cerebras include:

• **Real-time coding agents:** Copilots that read, write, and debug code nearly instantly—turning AI into an

interactive programming partner.

• **Nearly instant deep research agents:** Systems that analyze thousands of documents in seconds,

accelerating market, scientific, and policy research.

• **Digital twins:** Lifelike AI personas that think, speak, and react in real time. With Cerebras, avatars respond

naturally and carry interactive conversations.

***2. Quality: More Accurate Responses Faster***

On GPUs, latency forces a tradeoff between speed and intelligence. Developers often have to limit the accuracy

of a response in order to have it delivered in a reasonable amount of time. Our offerings are designed to remove this

tradeoff. Customers run long-context, multi-step reasoning models interactively, delivering higher-quality results

without comparable delays.

*Example:*

On GPT-oss-120B, OpenAI's leading open-source model, Cerebras processes tokens nine times faster than the

fastest hyperscaler, allowing developers to use substantially more reasoning tokens while maintaining the same end-

to-end task completion time.

We turn quality from a limitation into a feature; customers can now serve the largest models at full strength, in

real time.

***3. Cost: Higher Performance at Lower Power***

Moving data from one chip to another is one of the most power-intensive parts of AI compute. And power is the

largest contributor to operating expenses in AI compute.

Our wafer-scale architecture keeps data on-chip, reducing data movement significantly, which in turn reduces

power consumption. It also eliminates layers of costly and complex networking equipment. By way of comparison,

moving a bit of data on the WSE-3 consumes a fraction of the energy required to move the same bit of data over

GPU interconnects.

Because our performance advantages stem from fundamental architectural efficiency, we expect these benefits

to endure across future generations that continue to build on our wafer-scale technology.

***4. Simplicity: One Platform; No Distributed Programming; Easy to Train and Deploy Models***

We eliminate the complexity of distributed programming across GPU clusters, which is one of the most

challenging aspects of AI deployment. Even extremely large models run without code changes, and scale

automatically and seamlessly across clusters of Cerebras systems. Because training, fine-tuning, and inference all

occur on a unified platform, customers avoid the operational overhead of moving between different compute

environments, enabling inference, fine tuning, and training from scratch on the same cluster. Cerebras Compiler's

PyTorch integration makes model customization and compilation simple, the Inference Serving Stack enables

deployment of frontier-sized models in minutes, and our AI experts support customers throughout the model life

cycle to accelerate results.

**Factors Preventing GPUs From Being Faster at AI** 

AI inference speed is limited by how fast data moves between memory and compute; this is called **memory**

**bandwidth**.

When a large language model generates a response, it predicts one word (token) at a time. Each token generated

requires a large amount of data—all of the model weights—to be moved from memory to compute. Because each

token depends on the previous one, this work **cannot be parallelized**, making AI inference speed fundamentally

limited by memory bandwidth.

![business2a.jpg](business2a.jpg)

GPUs were designed for graphics workloads. Graphics can tolerate slower memory movement because the

highly parallelizable workload allows the GPU to keep many compute cores busy while more data is moved over,

masking the memory latency. This made high-capacity off-chip memory, placed far away from the compute

processor, a strong architectural choice for graphics.

But the tradeoff of off-chip memory is speed. Off-chip memory connects to the compute processors through a

narrow data "pipe" with low memory bandwidth. This was the right tradeoff for graphics, but it creates a critical

limitation for AI speed, where data movement is the bottleneck. The result is a GPU "memory wall" for AI, where a

GPU's memory bandwidth cannot keep up with compute for AI workloads, and thereby limits the speed with which

AI answers can be generated.

These are not software issues. They are the **physical limits of the memory + GPU architecture.**

In order to be fast, we believe AI requires a fundamentally different architecture that solves the memory wall.

Such architecture must provide vastly more memory bandwidth to enable data to move more quickly between

memory and compute, which can thereby accelerate the generation of AI responses.

**Our Technology**

***Wafer-Scale Integration: The Foundation***

Cerebras started with a simple question: How could a new class of processors be designed with the singular goal

of solving the compute challenges presented by AI? Beginning with a clean slate, how could we avoid the trade-offs

made for graphics and other workloads to ensure that every transistor, every single part of the processor, was

optimized for the requirements of AI?

Our answer is wafer-scale integration. Wafer-scale integration enabled us to use a vastly faster memory and

avoid the complexity of switches and routers and associated complexity necessary to link together thousands of

GPUs.

SRAM is the fastest memory to date. But existing industry players could not use as much SRAM because they

could not fit it on their chip. By building a chip 58 times larger than NVIDIA's B200 chip, we can maximize fast,

on-chip SRAM and get the benefits of two worlds: (1) enough memory capacity because we built such a big chip,

and (2) the benefits of the massive bandwidth provided by SRAM. Wafer scale enabled us to deliver a solution with

2,625 times more memory bandwidth than NVIDIA's B200 package, which is how we are able to deliver inference

at extremely fast speeds.

The second fundamental advantage provided by wafer-scale integration is that it kept the wafer intact. Instead of

building a wafer, cutting into hundreds of small GPUs, and using expensive, power-hungry switches, and complex

cables to wire them back together, our solution consists of one processor that is the size of an entire silicon wafer.

This reduced the need, cost, managerial complexity, and power draw of much of the networking stack required to

build a GPU solution.

Our wafer-scale solution unifies compute and memory and communications on the same piece of silicon,

eliminating the data-movement bottlenecks that slow GPU systems.

***The Underpinnings of Wafer-Scale Integration***

We solved a problem that flummoxed the compute industry for its entire history: how to build chips the size of

full silicon wafers. The advantages of size were well known. But no company had ever brought a wafer scale

solution to market.

To make wafer-scale commercially viable, we invented and productized two foundational semiconductor

technologies:

• **Multi-die interconnect:** Traditionally, die—regions of silicon containing an integrated circuit—are

individually stamped onto a silicon wafer and then cut up ("diced") into small, separate chips. Prior to

Cerebras, the largest known chip was about 840 mm<sup>2</sup>. We developed the technology to interconnect these

otherwise independent die together at the wafer level, at the semiconductor fabrication plant. The inter-die

connectivity uses a special cross-reticle connection that we invented that is integrated into our overall

fabrication process. This allowed us to use existing processes, to do something we believe had never been

done before—namely, deliver a wafer that communicated across the entire 46,250 mm<sup>2</sup> of silicon and

therefore is a single massive processor.

• **Fault-tolerant architecture:** A primary factor in the commercial viability of a semiconductor is the yield.

Flaws are present in wafers. Large chips have a higher probability of hitting such a flaw. Traditionally,

chips with flaws have been thrown out or "down binned," that is, sold as a less capable part. Thus, using

traditional techniques, larger chips have lower yield and are therefore more expensive. We designed the

architecture to absorb and route around defects using redundant building blocks—similar to a hyperscale

data center but on the wafer. Flaws are designed to be recognized, shut down, and routed around.

Redundant building blocks are used to re-form a logically functional whole. This approach had been

previously used in memory manufacturing to achieve near perfect yield, but to our knowledge, prior to

Cerebras had not been used to build processors.

These innovations made wafer-scale computing commercially viable for the first time in semiconductor history.

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***The Cerebras Chip, System, and Software***

Cerebras delivers a full-stack AI infrastructure solution. It contains innovations at each layer. At the base is the

Cerebras WSE, our wafer-scale processor. Each WSE is integrated into a CS-3 system with advanced power

delivery, cooling, and system management. Multiple CS-3 systems link together to form Cerebras AI

supercomputers that are deployed in data centers around the world.

Lightweight management and orchestration software operate these systems as one logical computer, while our

training and inference platforms make it simple to run large models at scale. Because each layer is designed with the

others in mind, the platform delivers consistent performance, reduced infrastructure complexity, and faster time to

deployment and results.

***1. The Chip: Cerebras Wafer-Scale Engine***

At the heart of our platform is the **Cerebras WSE**, the world's largest and fastest commercialized AI processor.

A single WSE replaces an entire cluster of GPUs by combining 900,000 compute cores and 44 gigabytes of on-chip

memory on one piece of silicon, with 21 petabytes per second of on-chip memory bandwidth. The WSE-3 is 58

times larger than NVIDIA's B200 chip. The WSE-3 also has 19 times more transistors, 250 times more on-chip

memory, and 2,625 times more memory bandwidth than NVIDIA's B200 package, which contains two individual

chips.

We believe our architecture solves for memory bandwidth, which is a primary bottleneck in modern AI. By

keeping compute and memory on a single chip, WSE-3 eliminates the off-chip data transfers that dominate GPU

latency and power consumption. As a result, our systems are faster, simpler to program, and more power-efficient

than GPUs on AI tasks.

Fast inference depends on memory bandwidth. Below, we show the traditional GPU architecture with HBM, a

type of off chip DRAM, and a GPU. For the GPU to generate a single word based on an inference prompt for a

70 billion parameter model, it must move more than 140 gigabytes of data from memory to compute. That is roughly

100 1-hour HD movies. This is to generate a single word. And this must be done again and again for each word in

sequence.

![business4a.jpg](business4a.jpg)

The speed of generating a response is limited by the rate at which data can move from memory to computer. In

the figure below, we show the underpinning of our performance advantage. We have a 2,625 times larger pipe

between memory and compute. More data can move though our pipes, meaning we generate "words" (tokens) much

more quickly.

![business5b.jpg](business5b.jpg)

***2. CS-3: System Innovation for Wafer-Scale Compute***

The WSE-3 is deployed inside the **CS-3 system**, a data center-ready appliance engineered to support wafer-

scale operation and integrate seamlessly into enterprise and Sovereign AI environments. The CS-3 provides the

power delivery, cooling, networking, and system management required to operate a wafer-scale processor reliably

and at scale. Multiple CS-3 systems can be connected to form Cerebras AI supercomputers, which function as a

single logical computer for large-scale training and inference.

![businessart2c.jpg](businessart2c.jpg)

***3. Cerebras Software: Making Wafer-Scale Simple***

Our software platform extends our hardware advantage by making wafer-scale computing simple to use and

highly efficient. Our software spans the full AI life cycle—from programming and compiling models, to training and

inference, to orchestration across large clusters. Each layer is co-designed with our hardware to deliver maximum

performance with minimal developer effort.

**Model Programming and Compilation.** Our Cerebras Compiler (**CSoft)** makes it simple to run large language

models on our systems. CSoft is core to our solution and provides intuitive usability for developers. CSoft eliminates

the need for low-level programming in CUDA or other hardware-specific languages.

For both training and inference, our CSoft platform enables developers to easily represent and map large

language models onto the Cerebras Wafer-Scale Engine using familiar frameworks such as PyTorch. Starting from a

user's PyTorch model, the CSoft graph compiler automatically maps model operations to the WSE, creating an

optimized executable without user-level intervention.

CSoft allows machine-learning users to accelerate training and inference on models of any size, scaled across

any configuration of the Cerebras AI supercomputer, just by changing one number in a configuration file, simulating

a single-device programming experience without the complexities of distributed programming. This drastically

reduces operational overhead and speeds up developer iteration time and business impact.

**Inference Serving Stack.** Our **Cerebras Inference Serving Stack** manages model hosting, scaling, and

request routing across Cerebras systems and clusters. It provides real-time observability and load balancing,

enabling ultra-low-latency inference for production workloads. Customers can serve both open-source and

proprietary models through standard APIs, including industry-standard endpoints, with consistent performance

across on-premises and cloud deployments.

**Orchestration and Life Cycle Management.** Our **Cerebras Cluster Manager** orchestration software unifies

multiple CS-3 systems into a single logical computer, managing scheduling, telemetry, and health monitoring. Built-

in observability of all hardware and software components is designed to ensure reliability and high utilization across

on-premises and in cloud environments. This orchestration layer also allows customers to switch seamlessly

between training and inference on the same systems. With simple commands, CS-3 systems can be reconfigured

from large-scale model training to real-time inference, driving utilization and shortening deployment cycles.

Together, these components form a unified software platform that integrates seamlessly with our hardware to

deliver a complete, end-to-end AI computing system that can be deployed on customer premises or in the cloud.

Because our software and hardware are co-designed, customers can train and deploy frontier-scale models with

consistent and simple workflows—without rewriting code or managing distributed infrastructure.

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**Technology and Roadmap**

Wafer-scale integration is not a single achievement—it is a collection of technologies and processes with a

multi-generation roadmap. Each successive WSE generation (from 16 nanometer to 7 nanometer and now to 5

nanometer) has delivered substantial improvements in performance, memory bandwidth, efficiency, yield, and

manufacturability, without requiring changes to how developers program or deploy models.

Competing approaches—such as multi-die packages and chiplet based designs—remain constrained by the

physics of small chips and limited off-chip memory bandwidth. Even with advances in packaging technology, these

architectures cannot match the bandwidth, locality, or simplicity of computation that result from keeping compute

and memory together on a single piece of silicon.

Our roadmap builds on the advantages of wafer-scale integration. We intend to invest heavily in research and

development to continue to expand on-chip memory and memory bandwidth, improve interconnect density, and

leverage advancements in process technology to increase transistor counts and reduce power in future WSE

generations. As a result, we expect that future generations of WSEs will have faster compute, and more and faster

memory and communication onto and off of the wafer.

Because the WSE presents itself as a single programmable device, these improvements compound naturally in

both performance and simplicity, without introducing the complexity of massive distributed compute clusters of

GPU solutions.

The same architectural foundation also supports long-term extensibility across emerging AI workloads. As

models grow in size, increase in reasoning depth, and shift toward real-time, multi-step interactions, they place even

greater emphasis on memory bandwidth and locality—all areas where wafer-scale architectures possess inherent,

structural advantages.

We believe wafer-scale computing positions us as a leader in AI infrastructure, providing a long-term

technology roadmap designed to scale with the requirements of modern and future AI systems.

**Competitive Strengths**

**1. Our culture of fearless engineering has enabled us to do pioneering engineering work; we are the**

**only company ever to deliver a wafer-scale processor to market.** Our culture of fearless engineering

enables us to solve problems that others failed to solve or were afraid to tackle. As a result, we have solved

problems that had remained unsolved for the entire 75-year history of the compute industry, namely wafer-

scale integration. A culture of fearless engineering is a foundation for our continued innovation.

**2. We have durable advantages rooted in our unique silicon architecture.** We believe wafer-scale

integration is a fundamental advantage in AI compute, enabling large amounts of high-speed memory and

hundreds of thousands of compute cores to reside close together on the same piece of silicon. We have now

delivered three generations of wafer scale processors at the 16, 7, and 5 nanometer nodes. We believe these

will be the foundation of our future generations of silicon.

**3. We are an end-to-end systems company.** From inception, we co-designed our wafer-scale engine, our

CS-system, and our software stack for optimal AI performance. We were among the first in the AI

community to deliver water cooling to the processor, enabling us to run colder and extend our processors'

lifetime. The co-design of processor, system, and software is a meaningful competitive advantage.

**4. We are building the fastest inference infrastructure in the world.** On Cerebras infrastructure, AI

responses are up to 15 times faster than leading GPU-based solutions as benchmarked on leading open-

source models. Third-party benchmarker Artificial Analysis wrote in August 2024, "Cerebras Inference is

achieving the fastest speeds we have ever benchmarked on Artificial Analysis." Speed is customer

experience. It enables more accurate answers in less time. It enables applications that require real-time

interaction such as coding agents, research agents, and voice interfaces. Speed changes the way companies

design their experiences; it changes team structures and behaviors; it changes expectations and the

perception of what is possible, which can make returning to slower speeds more painful.

**5. We have met and exceeded the needs of some of the largest and most demanding customers in the AI**

**market.** The learning curve to meet the needs of Sovereign AI initiatives and AI foundation model labs is

steep. By combining our AI services with our integrated hardware and software platform, we deliver a

single solution that accelerates model development, simplifies deployment, and eases the operational

burden for our customers.

**6. We operate at massive scale with more than 100 exaflops of deployed compute.** In collaboration with

our partners, we have trained some of the largest models in the industry, gaining unique experience and

providing rare insight. We license space in six data centers in North America, providing geographic

redundancy and regional deployment options for customers with data residency or network time

requirements.

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![business2c.jpg](business2c.jpg)

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**Our Business Model: Make Buying Easy, by Reaching Customers Where They Are**

The AI market is one of the fastest-growing technology sectors in history. Within this rapidly evolving

landscape, we engage customers through a combination of direct sales and an ecosystem of strategic partners.

Our sales organization, together with our partners' sales teams, delivers our high-performance AI solutions

through multiple consumption models: (i) on premises, (ii) through our own Cerebras Cloud, (iii) via partners'

clouds, or (iv) through hybrid combinations of these approaches. This flexible delivery model allows customers to

adopt our technology in the manner that best aligns with their procurement preferences, operational requirements,

and infrastructure strategies.

Our product portfolio spans on-premises AI supercomputing systems, cloud-based compute for training and

inference, and forward-deployed AI services to help customers accelerate the creation and deployment of AI

capabilities.

***On-Premises Solutions***

Cerebras AI supercomputers support both model training and inference and are deployed directly within a

customer's environment. This deployment model is well suited for customers with regulated and high-security

environments that require full control over data, infrastructure, and system behavior. Our on-premises customers

include large enterprises, national laboratories, the U.S. Department of Defense, and Sovereign AI initiatives.

*Commercial Model for On-Premises Deployments*

On-premises customers procure our AI supercomputers through a traditional purchase-order process with

payment received upon delivery or acceptance. Each system combines tightly integrated hardware and software and

includes a renewable software subscription for continuous updates and upgrades, generating a recurring revenue

stream. On-premises deployments are often paired with our forward-deployed AI services, in which we assist

customers with data preparation, model architecture design, training management, inference optimization, and, in

select cases, ongoing system operations.

***Cloud Solutions***

We also provide access to our high-performance compute through Cerebras Cloud and through our partner

cloud platforms, which include AWS Marketplace, Microsoft Marketplace, IBM watsonx Model Gateway, Vercel

AI Gateway, OpenRouter, and Hugging Face. These offerings enable customers to utilize the full capabilities of our

AI supercomputers without incurring the capital expenditures associated with building or maintaining on-premises

infrastructure, and without the operational complexity of assembling and managing training or inference software

stacks. Provisioning is highly streamlined, allowing customers to begin using our cloud resources within minutes.

Cerebras Cloud serves a broad spectrum of users—from individual developers using our entry-level tier to some

of the world's largest enterprises. Customers run open-source, fine-tuned, and proprietary models for both training

and inference workloads. Across all use cases, our cloud offerings provide access to ultra-high-performance AI

compute.

Customers procure cloud capacity from us and our cloud partners through two primary models: Dedicated

Capacity and On-Demand.

*Dedicated Cloud Capacity*

Customers can contract for dedicated AI compute capacity for training or inference over defined terms. These

contracts are generally structured as take-or-pay commitments, under which customers pay for dedicated compute

capacity irrespective of utilization.

Dedicated capacity provides availability and is well suited for production deployments and large-scale

workloads. Customers in this model include leading hyperscalers, foundation model labs, AI native and digital

native businesses, enterprises, and Sovereign AI initiatives operating open-source, fine-tuned, or proprietary models.

Dedicated capacity contracts also include access to tailored workload telemetry that enables customers to optimize

performance on our systems. This deep integration supports long-term engagement and increases platform

stickiness.

*On-Demand Cloud Capacity*

For customers with variable or unpredictable workload requirements, we offer a consumption-based "pay-as-

you-go" option. In this model, customers either purchase tokens—which represent units of compute—as they

consume them, or pre-purchase token bundles and draw down their balance as workloads run.

Enterprise customers are billed monthly, while individual developers access the service through a self-service

portal. The on-demand model allows customers to scale elastically and is particularly effective for dynamic

inference workloads. Historically, many customers have begun with on-demand usage and transitioned to dedicated

capacity as their workloads expand.

**Customers and Go-to-Market Strategy**

Our customers include many of the world's leading AI organizations. These span frontier model developers; AI-

native companies; as well as enterprises, research institutions, and national laboratories. Across these segments,

customers rely on our solutions to accelerate model development and to deploy AI capabilities at production scale.

Our growth is driven by a combination of direct enterprise engagement, channel partnerships, and product-led

expansion.

**Direct Sales.** We employ a targeted named-account strategy built on deep technical and commercial

engagement. Dedicated account teams work closely with customer executives to identify business-critical workloads

and with engineering leaders to integrate Cerebras systems, optimize performance, and scale deployments. This

hands-on engagement builds operational trust and frequently results in the expansion of initial projects into multi-

system or multi-year commitments.

Alongside our direct sales force, we maintain a dedicated team of AI experts. This team provides customers

with access to leading AI expertise, so that they are positioned to leverage our technology effectively.

**Channel and Technology Partnerships.** To broaden our market reach, we leverage a diversified network of

channel and technology partners. Cerebras solutions are accessible through AWS Marketplace, Microsoft

Marketplace, IBM watsonx Model Gateway, Vercel AI Gateway, OpenRouter, and Hugging Face, allowing

developers and enterprises to incorporate Cerebras performance seamlessly into existing workflows and deployment

environments.

**Product-Led Growth**. Our product-led growth motion introduces developers, startups, and emerging AI

organizations to Cerebras through our self-serve inference platform and API. These early interactions often seed

future named-account relationships. In addition, partnerships with cloud providers, system integrators, and software

platforms that embed Cerebras capabilities into established workflows further expand access and reinforce our

enterprise sales motion.

We further extend our presence through integrations with widely used open-source development environments

Cloud, directly where developers build and iterate. These channels enhance visibility within software-developer

communities, foster product-led adoption of our self-serve offerings, and extend the reach of our platform beyond

traditional enterprise sales.

**Sales and Marketing**

Our sales and marketing strategy centers on deep market understanding and customer-centric product

development. We leverage our extensive market knowledge, proven track record in delivering large-scale compute

solutions, and close customer collaborations to optimize our product roadmap. This is designed to ensure our

solutions consistently deliver significant value to our customers.

We focus our sales and marketing efforts on industry leaders, specifically large enterprises domestically and

abroad with rich data assets. Our customers are seeking to leverage their rich proprietary data and combine it with

Cerebras's industry leading compute and AI expertise to build a durable competitive advantage. Among our

customers, word of success travels quickly, and as a result, it is very important to our future that we maintain strong

and collaborative relationships and that we invest in the success of our customers. We utilize master purchase

agreements, purchase orders, and statements of work, to define work scope, price, quantities, delivery terms,

warranties, and software subscriptions. We predominantly sell our solutions directly to customers via on-premises

hardware or via the cloud, based on a dedicated capacity or consumption-based model.

**Research and Development**

We are committed to relentless innovation in both hardware and software to address the rapidly-evolving

computational needs of AI.

We dedicate significant resources to ongoing research and development. We invest heavily in attracting and

retaining a global team of highly skilled engineers across dedicated facilities in the United States, Canada, and India.

This unwavering commitment to innovation fuels our growth and positions us as a leader in the AI landscape.

**Manufacturing and Suppliers**

We operate a fabless manufacturing model, strategically partnering with industry leaders for the production of

our AI compute systems which include ICs, boards, and systems. Our core manufacturing partners include:

TSMC, a leading semiconductor foundry, fabricates our cutting-edge WSEs. Advanced Semiconductor

Engineering ("ASE") handles specialized processes, including the deposition of redistribution layers, and we

manage final wafer packaging, assembly, and testing in our Sunnyvale, California facility.

We also use a small number of third parties to manufacture subassemblies and critical components such as

printed circuit boards, I/O subsystems, cooling assemblies and power delivery modules. The manufacturing process

is subject to extensive testing and verification.

Our supply chain is designed for flexibility and for quality, as we plan to ramp up production to meet the

growing global demand for our AI compute systems. Simultaneously, we are committed to rigorous quality control

throughout the manufacturing process to confirm reliability in even the most demanding environments at our

customer facilities. Our contract manufacturing partners perform system assembly, extensive testing, and

verification protocols are in place at every stage including post assembly. Final system-level burn-in and test is

conducted by Cerebras. Our quality processes include high production test coverage, full product traceability, and

extensive post assembly burn-in. We employ a dedicated quality team that continuously monitors feedback during

manufacturing and after deployment. This data-driven approach allows us to improve our product quality and

reliability, and help us meet the stringent demands of our customers worldwide.

**Intellectual Property**

Protecting our intellectual property and proprietary technology, including our AI products and solutions, is an

important aspect of our business. We rely on a combination of intellectual property rights, including patent,

trademark, trade secret, and other related laws in the United States and internationally as well as confidentiality

procedures and contractual provisions to protect, maintain, and enforce our proprietary technology, intellectual

property rights, and brand. Our intellectual property portfolio includes patents, trademarks, proprietary software, and

trade secrets.

As of December 31, 2025, we owned &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issued patents and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pending patent applications globally. Of

these, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are issued U.S. patents and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are pending U.S. patent applications. Our issued patents and pending

patent applications generally relate to the design and fabrication of large-scale (e.g., wafer-scale) processors, the

assembly, packaging, and cooling of processors, and hardware, and software architectures for accelerated deep

learning and for inference. The expiration dates of the U.S.-issued patents are between &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , not taking

into account any applicable patent term extensions. We routinely review our development efforts to assess the

existence and patentability of new inventions.

We have a policy of requiring employees and consultants to execute confidentiality agreements upon the

commencement of an employment or consulting relationship with us. Our employee and independent contractor

agreements also require relevant employees and independent contractors to assign to us all rights to any inventions

made or conceived during their employment or engagement with us. In addition, we typically require individuals and

entities with which we discuss potential business relationships to sign non-disclosure agreements that contain

customary confidentiality provisions.

**Competition**

We offer a purpose-built AI compute platform. Our hardware primarily competes against solutions from

NVIDIA Corporation, Advanced Micro Devices, Inc., Intel Corporation, as well as AI accelerators developed by

hyperscalers and private companies. We also compete against full-service cloud service providers such as

Amazon.com, Inc. (AWS), Microsoft Corporation (Azure), Alphabet Inc. (Google Cloud Platform), and Oracle

Corporation, as well as AI-optimized specialized clouds such as CoreWeave, Inc. and other neo-clouds.

We believe that our ability to remain competitive will depend on how well we are able to anticipate the features

and functions that customers will require and whether we are able to deliver consistent volumes of our products and

services at acceptable levels of quality and at competitive prices. We expect competition to increase from both

existing competitors and new market entrants with products that may be lower priced than ours or may provide

better performance or additional features not provided by our products and services. In addition, it is possible that

new competitors or alliances among competitors could emerge and acquire significant market share. Some of our

competitors have greater marketing, financial, distribution, and manufacturing resources than we do and may be

more able to adapt to customers or technological changes. We expect an increasingly competitive environment in the

future.

**Human Capital**

As of December 31, 2025, we had &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employees, including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the United States, and we have

employees located internationally, including in Canada and India. We maintain a full-time workforce and

supplement our workforce with contractors and consultants.

To our knowledge, none of our employees are represented by a labor union or party to a collective bargaining

agreement. We consider our relationships with our employees to be good. Our human capital resources objectives

include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating our existing and new

employees. The principal purposes of our equity incentive plans are to attract, retain, and reward personnel through

the granting of stock-based compensation awards in order to increase stockholder value and the success of our

company by motivating such individuals to perform to the best of their abilities and achieve our objectives.

**Facilities**

Our corporate headquarters is located in Sunnyvale, California, where we lease approximately 68,000 square

feet for office space, research and development, and testing, pursuant to a lease agreement that expires in November

2027, subject to the terms thereof. We lease additional facilities in Canada, and India for research and development.

We also enter into agreements for offsite colocation facilities to house and operate our AI supercomputers. We

enter into these agreements for our own corporate purposes as well as on behalf of our customers. Currently, these

data center facilities are in California, Oklahoma, and Canada.

We believe that our facilities are suitable to meet our current needs. We intend to expand our facilities or add

new facilities as we grow, and we believe that suitable additional or alternative spaces will be available on

commercially reasonable terms, if required.

**Government Regulations**

We are subject to many U.S. federal and state laws, rules, and regulations, as well as laws, rules, and regulations

imposed by various non-U.S. governmental authorities, including those related to AI, intellectual property, tax,

import and export requirements, anti-corruption, economic and trade sanctions, national security and foreign

investment, foreign exchange controls and cash repatriation restrictions, data privacy and security requirements,

competition, advertising, employment, product regulations, environment, health, and safety requirements, and

consumer laws. These laws and regulations are complex, are constantly evolving, and may be interpreted, applied,

created, or amended, in a manner that could harm our business.

The import and export of our offerings are subject to laws and regulations, including international treaties, U.S.

and various non-U.S. export controls and sanctions laws, customs regulations, and other trade rules. The scope,

nature, and severity of such controls varies widely across different countries and may change frequently over time.

Such laws, rules, and regulations may delay the introduction of some of our offerings or impact our competitiveness

through restricting our ability to do business in certain countries or territories or with certain parties (including

certain governments) or certain jurisdictions. U.S. export restrictions also require us to obtain licenses from the U.S.

Department of Commerce to allow the export or transfer of our offerings, and there can be no assurance that export

permissions will be granted. These restrictive governmental actions and any similar measures that may be imposed

on U.S. companies by other governments could limit our ability to conduct business globally.

See the section titled "Risk Factors" for additional information regarding risks we face related to government

regulation.

**Legal Proceedings**

From time to time, we may be subject to legal proceedings, claims, and investigations in the ordinary course of

business. We are not presently a party to any litigation to which the outcome, we believe, if determined adversely to

us, would individually or taken together have a material adverse effect on us. We cannot predict the results of any

such proceedings, claims, or investigations, and despite the potential outcomes, the existence thereof may have a

material adverse impact on us due to diversion of management time and attention as well as the financial costs

related to resolving such matters.

**MANAGEMENT**

**Executive Officers and Directors**

The following table sets forth information regarding our executive officers and directors as of December 1,

2025:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| ***Executive Officers and Employee Director:*** |  |  |
| Andrew D. Feldman.................................................. | 56 | Chief Executive Officer, President, and Director |
| Robert Komin............................................................ | 63 | Chief Financial Officer |
| Sean Lie..................................................................... | 45 | Chief Technology Officer |
| Dhiraj Mallick........................................................... | 53 | Chief Operating Officer |
| ***Non-Employee Directors:*** |  |  |
| Paul Auvil.................................................................. | 62 | Director |
| Glenda Dorchak......................................................... | 71 | Director |
| Thomas Lantzsch....................................................... | 65 | Director |
| Lior Susan................................................................. | 41 | Director |
| Steve Vassallo........................................................... | 54 | Director |
| Eric Vishria............................................................... | 46 | Director |

---

_______________

(1)Member of the audit committee.

(2)Member of the compensation committee.

(3)Member of the nominating and corporate governance committee.

***Executive Officers and Employee Director***

***Andrew D. Feldman*** is one of our co-founders and has served as our Chief Executive Officer and President and

as a member of our board of directors since April 2016. From February 2012 to June 2014, Mr. Feldman served as

Corporate Vice President and General Manager at Advanced Micro Devices, Inc. ("AMD"), a semiconductor

company. From November 2007 to February 2012, Mr. Feldman served as Chief Executive Officer at SeaMicro, a

dense microserver company acquired by AMD. From August 2003 to December 2006, Mr. Feldman served as Vice

President, Marketing and Product Management at Force10 Networks, Inc., a computer networking company

acquired by Dell, Inc. From March 2000 to August 2003, Mr. Feldman served as Vice President, Corporate

Marketing and Corporate Development at Riverstone Networks Inc., a networking switching hardware company.

Mr. Feldman holds an M.B.A. from Stanford University and a B.A. in Economics and Political Science from

Stanford University.

We believe Mr. Feldman is qualified to serve as a member of our board of directors because of the perspective

and experience he brings as our co-founder and Chief Executive Officer. See "—Involvement in Certain Legal

Proceedings" for certain details regarding historical legal proceedings involving Mr. Feldman.

***Robert Komin*** has served as our Chief Financial Officer and Treasurer since March 2024. Mr. Komin

previously served as Chief Financial Officer of Sunrun Inc. ("Sunrun"), a residential solar and storage company,

from March 2015 to May 2020, and then continued as a consultant until January 2021. From September 2013 to

January 2015, Mr. Komin served as Chief Financial Officer at Flurry, Inc., a mobile analytics and advertising

company. From August 2012 to August 2013, Mr. Komin served as Chief Financial Officer at Ticketfly, Inc., a

music ticketing and marketing services provider. From January 2010 to July 2012, Mr. Komin served as Chief

Operating Officer and Chief Financial Officer at Linden Research, Inc., a creator of virtual digital entertainment and

cybercurrency. Mr. Komin previously served as a member of the board of directors and chairman of the audit

committee of Bird Global Inc., a micromobility company, from June 2021 to April 2024. Mr. Komin holds an

M.B.A. from Harvard Business School and a B.S. in Accounting and General Science from the University of

Oregon.

***Sean Lie*** is one of our co-founders and has served in various roles since 2016, including most recently as our

Chief Technology Officer since April 2022. From April 2012 to June 2015, Mr. Lie served as Chief Architect, Data

Center Server Solutions at AMD. From March 2008 to March 2012, Mr. Lie served as Lead Hardware Architect of

the IO virtualization fabric ASIC at SeaMicro. From July 2004 to February 2008, Mr. Lie worked as a

microprocessor architect at AMD in the advanced architecture team. Mr. Lie holds an M.Eng. and a B.S. in

Electrical Engineering and Computer Science from the Massachusetts Institute of Technology.

***Dhiraj Mallick*** has served as our Chief Operating Officer since September 2023. From June 2018 to September

2023, Mr. Mallick served as our Senior Vice President of Engineering and Operations. From November 2015 to

May 2018, Mr. Mallick served as Vice President of Innovation, Pathfinding and Architecture, Data Center Group at

Intel Corporation, a multinational technology company. From April 2012 to August 2015, Mr. Mallick served as

General Manager and Corporate Vice President at AMD. Since January 2020, Mr. Mallick has served on the Global

Advisory Group of the Global Semiconductor Alliance, a semiconductor and technology industry organization.

Mr. Mallick holds an M.S. in Electrical Engineering from Stanford University and a B.S. in Electrical Engineering

from the University of Rochester.

***Non-Employee Directors***

***Paul Auvil*** has served as a member of our board of directors since July 2024. Mr. Auvil previously served as

Chief Financial Officer of Proofpoint, Inc., an enterprise security company, from March 2007 to February 2023.

From September 2006 to March 2007, Mr. Auvil was an entrepreneur-in-residence with Benchmark, a venture

capital firm. From August 2002 to July 2006, Mr. Auvil served as Chief Financial Officer at VMware, Inc., a cloud-

computing and virtualization company. From April 1998 to January 2002, Mr. Auvil served as Chief Financial

Officer at Vitria Technology, Inc., an eBusiness platform company. Mr. Auvil held various executive positions at

VLSI Technology, Inc., a semiconductor and circuit manufacturing company, from August 1988 to March 1998,

including serving as the Vice President of the Internet and Secure Products Division. Mr. Auvil has served as a

member of the boards of directors of Modern Treasury Corp., a fintech company, since October 2024, Chainalysis

Inc., a blockchain data platform, since November 2024, and Elastic N.V., a platform for search-powered solutions,

since October 2023. Mr. Auvil previously served as a member of the boards of directors of 1Life Healthcare, Inc.

(doing business as One Medical), a primary care organization acquired by Amazon, Inc., from September 2019 to

February 2023, Quantum Corporation, a data storage company, from August 2007 to November 2017, Marin

Software Incorporated, a cloud-based advertisement management platform company, from October 2009 to April

2017, and OpenTV Corp., a provider of interactive television software and services, from January 2010 to April

2010. Mr. Auvil holds an M.M. from the Kellogg Graduate School of Management at Northwestern University and a

B.E. in Electrical Engineering from Dartmouth College.

We believe Mr. Auvil is qualified to serve as a member of our board of directors because of his extensive

experience in the technology industry and as an executive and a member of the boards of directors of technology

companies.

***Glenda Dorchak*** has served as a member of our board of directors since July 2024. Ms. Dorchak previously

served as Executive Vice President and General Manager of Global Business for Spansion Inc., a flash memory

manufacturer, from April 2012 to June 2013. Ms. Dorchak served as Chief Executive Officer of VirtualLogix, Inc., a

virtualization software solutions company, from January 2009 to October 2010, and as Chief Executive Officer of

Intrinsyc Software, a software company, from July 2006 to November 2008. From March 2001 to July 2006,

Ms. Dorchak served in various roles at Intel Corporation, including as Vice President and Chief Operating Officer

Intel Communications Group, Vice President and General Manager Intel Broadband Products Group, and Vice

President and General Manager Intel Consumer Electronics Group. Ms. Dorchak served as Chairman and Chief

Executive Officer at Value America, an e-retailer, from September 1998 to November 2000. From July 1974 to

September 1998, Ms. Dorchak held various management and executive positions at IBM Corporation, a

semiconductor and circuit manufacturing company, including General Manager and Director of IBM Direct, and

Director, General Business, of IBM Personal Systems Group North America. Ms. Dorchak has served as a member

of the board of directors of Globalfoundries Inc., a semiconductor contract manufacturing and design company,

since June 2019. She previously served as a member of the boards of directors of Wolfspeed, Inc., a silicon carbide

product provider, from January 2020 to August 2025, Ansys Inc., an engineering simulation software company,

from July 2018 to July 2025, Viavi Solutions Inc., a provider of network test, monitoring, and assurance solutions,

from November 2019 to October 2021, Mellanox Technologies, Ltd., a multinational supplier of computer

networking products, from June 2009 to April 2020, Quantenna Communications, a communication device

company, from June 2018 to June 2019, and Energy Focus Inc., a developer of energy-efficient LED lighting

systems and controls, from July 2015 to February 2019.

We believe Ms. Dorchak is qualified to serve as a member of our board of directors because of her experience

in our industry and as a member of the boards of directors of public companies.

***Thomas Lantzsch*** has served as a member of our board of directors since September 2024. Mr. Lantzsch

previously served as Senior Vice President and General Manager, Internet of Things, of Intel Corporation from

January 2017 to January 2023. From December 2006 to November 2016, Mr. Lantzsch served as Executive Vice

President of Strategy and Corporate Development of Arm Inc., a semiconductor company. Mr. Lantzsch has served

as a member of the board of directors of Canatu Oyj, a carbon nanomaterial developer company, since November

2023. Mr. Lantzsch holds an M.S. in Finance from the Naveen Jindal School of Management at the University of

Texas at Dallas and a B.S. in Electrical Engineering from Michigan State University.

We believe Mr. Lantzsch is qualified to serve as a member of our board of directors because of his expertise and

experience working with and for technology and semiconductor companies.

***Lior Susan*** has served as a member of our board of directors since April 2023. Since January 2015, Mr. Susan

has served as Founder and Managing Partner of Eclipse, an investment firm. Mr. Susan is a co-founder of Bright

Machines, Inc., a software company, and has served as its Executive Chairman since January 2018 and as its Chief

Executive Officer from January 2018 to May 2018, from December 2021 to December 2022, and from August 2023

to the present. From June 2012 to January 2015, Mr. Susan served as Founder and General Partner at LabIX, the

hardware investment platform of Flextronics International Ltd., an end-to-end supply chain solutions company.

Mr. Susan served as an Advisor at Intucell Ltd., a self-optimizing network software company, from April 2008 until

it was sold to Cisco in 2012. Mr. Susan has served as a member of the board of directors of Owlet, Inc., a health

technology company, since March 2015, and has served as the chairman of its board of directors since July 2021. He

also serves as a member of the boards of directors of several private companies, including Augury, Inc., Bright

Machines, Inc., Cybertoka Ltd., Datapelago, Inc, Dutch Pet, Inc., Prime Minute, Inc., Skyryse, Inc., The Heart

Company, Inc., and Usrsa Major Technologies, Inc. Mr. Susan previously served as a member of the board of

directors of Lucira Health, Inc., a medical diagnostics company, from August 2020 to December 2022. Mr. Susan is

a former member of an elite Special Forces unit in the Israel Defense Force.

We believe Mr. Susan is qualified to serve as a member of our board of directors because of his expertise and

experience working with and investing in technology companies.

***Steve Vassallo*** has served as a member of our board of directors since May 2016. Since October 2007,

Mr. Vassallo has served as a general partner and in various other roles at Foundation Capital, a venture capital firm.

From September 2004 to September 2006, Mr. Vassallo served as Vice President of Product and Engineering at

Ning Interactive Inc., a social platform. From May 1999 to September 2002, Mr. Vassallo served as director of

engineering at Immersion Corporation, a haptic technology company. Mr. Vassallo previously served as a member

of the board of directors of Sunrun from May 2008 to June 2019. Mr. Vassallo also serves as a member of the boards

of directors of several private companies. Mr. Vassallo holds an M.B.A. from Stanford University, an M.S. in

Electromechanical Engineering from Stanford University, and a B.S. in Mechanical Engineering from Worcester

Polytechnic Institute.

We believe Mr. Vassallo is qualified to serve on our board of directors because of his extensive experience in

the technology industry.

***Eric Vishria*** has served as a member of our board of directors since May 2016. Since July 2014, Mr. Vishria

has served as a General Partner of Benchmark, a venture capital firm. From August 2013 to August 2014,

Mr. Vishria served as Vice President, Digital Magazines and Verticals at Yahoo! Inc., a web services provider. From

November 2008 to August 2013, Mr. Vishria served as co-founder and Chief Executive Officer of RockMelt, Inc., a

social media web browser. He has served as a member of the board of directors of Confluent, Inc., a data solutions

company, since September 2014. Mr. Vishria previously served as a member of the board of directors of Amplitude,

Inc., a digital optimization company, from December 2014 to June 2025. He also serves as a member of the boards

of directors of several private companies. Mr. Vishria holds a B.S. in Mathematical and Computational Science from

Stanford University.

We believe Mr. Vishria is qualified to serve on our board of directors because of his extensive experience as a

venture capital investor and a member of the boards of directors of other technology companies.

**Involvement in Certain Legal Proceedings**

Andrew D. Feldman was previously one of six named defendants in the action *SEC v. Pereira*, No. 3:06-

cv-06384-CRB (N.D. Cal.), in which the SEC alleged, among other things, that Mr. Feldman, as Vice President,

Corporate Marketing and Corporate Development of Riverstone Networks, Inc., negotiated, reviewed, approved, or

was otherwise aware of sales transactions in 2001 and 2002 that were improperly accounted for by Riverstone and

aided and abetted Riverstone in violating U. S. securities laws. Without admitting or denying the allegations of the

complaint, Mr. Feldman settled the claims against him in 2008 by entering into an agreement with the SEC

permanently restraining and enjoining Mr. Feldman from violating federal securities laws and requiring

Mr. Feldman to pay $289,507 plus interest. In connection with the same alleged facts, Mr. Feldman also pled guilty

in December 2007 to one count of circumventing accounting controls of an issuer in violation of 15 U.S.C.

sections 78m(b)(5) and 78ff, and was sentenced to three years of probation and fined $5,000 in connection with an

action brought by the U.S. Department of Justice captioned *USA v. Feldman*, No. 3:07-cr-07-00731-0001-CRB

(N.D. Cal.).

**Family Relationships**

There are no family relationships among any of our executive officers or directors.

**Board Structure and Composition** 

***Director Independence***

Our board of directors currently consists of seven members. Our board of directors has determined that all of

our directors, other than Mr. Feldman, qualify as independent directors in accordance with the Nasdaq Listing Rules.

Mr. Feldman is not considered independent by virtue of his position as an executive officer of the company. Under

the Nasdaq Listing Rules, the definition of independence includes a series of objective tests, such as that the director

is not, and has not been for at least three years, one of our employees and that neither the director nor any of his or

her family members has engaged in various types of business dealings with us. In addition, as required by the

Nasdaq Listing Rules, our board of directors has made a subjective determination as to each independent director

that no relationships exists that, in the opinion of our board of directors, would interfere with the exercise of

independent judgment in carrying out the responsibilities of a director. In making these determinations, our board of

directors reviewed and discussed information provided by the directors and us with regard to each director's

relationships as they may relate to us and our management.

***Classified Board of Directors***

In accordance with our amended and restated certificate of incorporation, which will be effective immediately

prior to the completion of this offering, our board of directors will be divided into three classes with staggered three-

year terms. At each annual general meeting of stockholders, the successors to directors whose terms then expire will

be elected to serve from the time of election and qualification until the third annual meeting following their election.

Our directors will be divided among the three classes as follows:

• The Class I directors will be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and their terms will expire at the annual

meeting of stockholders to be held in 2027;

• The Class II directors will be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and their terms will expire at the annual meeting of

stockholders to be held in 2028; and

• The Class III directors will be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and their terms will expire at the annual meeting of

stockholders to be held in 2029.

We expect that any additional directorships resulting from an increase in the number of directors will be

distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors.

The division of our board of directors into three classes with staggered three-year terms may delay or prevent a

change of our management or a change in control.

***Leadership Structure of the Board of Directors***

Our amended and restated bylaws and corporate governance guidelines to be adopted immediately following the

effectiveness of the registration statement of which this prospectus forms a part will provide our board of directors

with flexibility to combine or separate the positions of chairperson of the board of directors and Chief Executive

Officer and to implement a lead director in accordance with its determination regarding which structure would be in

the best interests of our company.

Our board of directors currently believes that our existing leadership structure, under which our chief executive

officer, Mr. Feldman, serves as chairman of our board of directors, is effective.

Our board of directors will continue to periodically review our leadership structure and may make such changes

in the future as it deems appropriate.

Our board of directors has elected Eric Vishria to serve as lead independent director. As lead independent

director, Mr. Vishria will preside at all meetings of the board of directors at which the chairman of the board of

directors is not present, including executive sessions, and perform such additional responsibilities as set forth in our

corporate governance guidelines.

***Voting Arrangements***

The election of the members of our board of directors is currently governed by our amended and restated voting

agreement that we entered into with certain holders of our capital stock and the related provisions of our current

amended and restated certificate of incorporation. Pursuant to our amended and restated voting agreement and

current amended and restated certificate of incorporation, Mr. Feldman was elected by certain holders of our

common stock, voting together as a single class, and Messrs. Susan, Vassallo, and Vishria were elected by the

holders of our Series A redeemable convertible preferred stock.

Our amended and restated voting agreement will terminate and the provisions of our current amended and

restated certificate of incorporation by which our directors were elected will be amended and restated in connection

with this offering. After this offering, the number of directors will be fixed by our board of directors, subject to the

terms of our amended and restated certificate of incorporation and amended and restated bylaws that will become

effective immediately prior to the completion of this offering. Each of our current directors will continue to serve as

a director until the election and qualification of his or her successor, or until his or her earlier death, resignation, or

removal.

**Role of Board in Risk Oversight Process**

Risk assessment and oversight are an integral part of our governance and management processes. Our board of

directors encourages management to promote a culture that incorporates risk management into our corporate strategy

and day-to-day business operations. Management discusses strategic and operational risks at regular management

meetings, and conducts specific strategic planning and review sessions during the year that include a focused

discussion and analysis of the risks facing us. Throughout the year, senior management reviews these risks with the

board of directors at regular board meetings as part of management presentations that focus on particular business

functions, operations or strategies, and presents the steps taken by management to mitigate or eliminate such risks.

Our board of directors does not have a standing risk management committee, but rather administers this

oversight function directly through our board of directors as a whole, as well as through various standing committees

of our board of directors that address risks inherent in their respective areas of oversight. While our board of

directors is responsible for monitoring and assessing strategic risk exposure, our audit committee is responsible for

overseeing our major financial and cybersecurity risk exposures and the steps our management has taken to monitor

and control these exposures. The audit committee also approves or disapproves any related person transactions. Our

nominating and corporate governance committee monitors the effectiveness of our corporate governance guidelines.

Our compensation committee assesses and monitors whether any of our compensation policies and programs has the

potential to encourage excessive risk-taking. The risk oversight process also includes receiving regular reports from

our committees and members of senior management to enable our board of directors to understand our risk

identification, risk management, and risk mitigation strategies with respect to areas of potential material risk,

including operations, finance, legal, regulatory, cybersecurity, strategic and reputational risk.

**Board Committees**

Effective as of the date the registration statement of which this prospectus forms a part is declared effective by

the SEC, our board of directors will have three standing committees: an audit committee; a compensation

committee; and a nominating and corporate governance committee. Each committee is governed by a charter that

will be available on our website following completion of this offering. Members serve on these committees until

their resignation or until otherwise determined by our board of directors.

***Audit Committee***

Effective as of the date the registration statement of which this prospectus forms a part is declared effective by

the SEC, the members of our audit committee will consist of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will be

the chairperson of our audit committee. The composition of our audit committee meets the requirements for

independence under the current Nasdaq Listing Rules and Rule 10A-3 of the Exchange Act. Each member of our

audit committee is financially literate. In addition, our board of directors has determined that&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is an "audit

committee financial expert" within the meaning of the SEC rules. This designation does not impose on such

directors any duties, obligations, or liabilities that are greater than are generally imposed on members of our audit

committee and our board of directors. Our audit committee is directly responsible for, among other things:

• appointing, retaining, compensating, and overseeing the work of our independent registered public

accounting firm;

• assessing the independence and performance of the independent registered public accounting firm;

• reviewing with our independent registered public accounting firm the scope and results of the firm's annual

audit of our financial statements;

• overseeing the financial reporting process and discussing with management and our independent registered

public accounting firm the financial statements that we will file with the SEC;

• pre-approving all audit and permissible non-audit services to be performed by our independent registered

public accounting firm;

• reviewing policies and practices related to risk assessment and management;

• reviewing our accounting and financial reporting policies and practices and accounting controls, as well as

compliance with legal and regulatory requirements;

• reviewing cybersecurity matters;

• reviewing, overseeing, approving, or disapproving any related-person transactions;

• reviewing with our management the scope and results of management's evaluation of our disclosure

controls and procedures and management's assessment of our internal control over financial reporting,

including the related certifications to be included in the periodic reports we will file with the SEC; and

• establishing procedures for the confidential anonymous submission of concerns regarding questionable

accounting, internal controls, or auditing matters, or other ethics or compliance issues.

***Compensation Committee***

Effective as of the date the registration statement of which this prospectus forms a part is declared effective by

the SEC, the members of our compensation committee will consist of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will be the chairperson of our compensation committee. Each of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is a

non-employee director, as defined by Rule 16b-3 promulgated under the Exchange Act and meets the requirements

for independence under the current Nasdaq Listing Rules. Our compensation committee is responsible for, among

other things:

• reviewing and approving the compensation of our executive officers, including reviewing and approving

corporate goals and objectives with respect to compensation;

• authority to act as an administrator of our equity incentive plans;

• reviewing and approving, or making recommendations to our board of directors with respect to, incentive

compensation and equity plans;

• reviewing and recommending that our board of directors approve the compensation for our non-employee

directors; and

• establishing and reviewing general policies relating to compensation and benefits of our employees.

***Nominating and Corporate Governance Committee***

Effective as of the date the registration statement of which this prospectus forms a part is declared effective by

the SEC, the members of our nominating and corporate governance committee will consist of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,

and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will be the chairperson of our nominating and corporate governance committee. Each of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; meet the requirements for independence under the current Nasdaq Listing Rules.

Our nominating and corporate governance committee is responsible for, among other things:

• identifying and recommending candidates for membership on our board of directors, including the

consideration of nominees submitted by stockholders, and on each of the board's committees;

• reviewing and recommending our corporate governance guidelines and policies;

• reviewing proposed waivers of the code of business conduct and ethics for directors and executive officers;

• overseeing the process of evaluating the performance of our board of directors; and

• assisting our board of directors on corporate governance matters.

**Code of Business Conduct and Ethics**

In connection with this offering, our board of directors will adopt a code of business conduct and ethics that

applies to all of our employees, officers, and directors, including our Chief Executive Officer, Chief Financial

Officer, and other executive and senior financial officers. Upon completion of this offering, the full text of our code

of business conduct and ethics will be posted on the investor relations section of our website. We intend to disclose

future amendments to our code of business conduct and ethics, or any waivers of such code, on our website or in

public filings.

**Indemnification and Insurance**

We maintain directors' and officers' liability insurance. Our amended and restated certificate of incorporation

and amended and restated bylaws will include provisions limiting the liability of directors and officers and

indemnifying them under certain circumstances. We have entered or will enter into indemnification agreements with

each of our directors and officers to provide our directors and officers with additional indemnification and related

rights. See the section titled "Description of Capital Stock—Limitations on Liability and Indemnification Matters"

for additional information.

**Compensation Committee Interlocks and Insider Participation**

None of the members of our board of directors who will serve on our compensation committee upon the

effectiveness of the registration statement of which this prospectus forms a part is or has been an officer or employee

of our company. None of our executive officers currently serves, or in the past fiscal year has served, as a member of

a compensation committee (or if no committee performs that function, the board of directors) of any other entity that

has an executive officer serving as a member of our board of directors.

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Executive Compensation** 

The following is a discussion and analysis of compensation arrangements of our named executive officers

("NEOs"). This discussion contains forward looking statements that are based on our current plans, considerations,

expectations and determinations regarding future compensation programs. Actual compensation programs that we

adopt may differ materially from currently planned programs as summarized in this discussion. As an "emerging

growth company" as defined in the JOBS Act, we are not required to include a Compensation Discussion and

Analysis section and have elected to comply with the scaled disclosure requirements applicable to emerging growth

companies.

We seek to ensure that the total compensation paid to our executive officers is reasonable and competitive.

Compensation of our executive officers is structured around the achievement of individual performance and near-

term corporate targets as well as long-term business objectives.

Our NEOs for the year ended December 31, 2025 were:

• Andrew D. Feldman, our Chief Executive Officer and President;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , our &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , our &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

**Summary Compensation Table** 

The following table sets forth total compensation paid to our NEOs for 2025.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal** <br>**Position**<br>| **Year** | **Salary**<br>**($)**<br>| **Bonus** <br>**($)**<br>| **Stock** <br>**Awards**<br>**($)**<sup>(1)</sup><br>| **Option** <br>**Awards**<br>**($)**<sup>(1)</sup><br>| **Non-Equity** <br>**Incentive Plan** <br>**Compensation**<br>**($)**<sup>(2)</sup><br>| **All Other** <br>**Compensation**<br>**($)**<br>| **Total**<br>**($)**<br>|
| Andrew D. Feldman |  |  |  |  |  |  |  |  |
| *Chief Executive* <br>*Officer*................<br>| 2025 |  |  |  |  |  |  |  |
|  | 2025 |  |  |  |  |  |  |  |
|  | 2025 |  |  |  |  |  |  |  |

---

_______________

(1)Amounts shown represent the grant date fair value of stock options and RSUs granted during 2025 as calculated

in accordance with ASC Topic 718. See "Stock-Based Compensation" in Note 12 to our audited consolidated

financial statements included elsewhere in this prospectus for the assumptions used in calculating this amount.

(2)Amounts shown represent performance-based cash bonuses earned based on the achievement of a certain

corporate financial objective during 2025.

**Narrative to Summary Compensation Table**

***Annual Base Salaries***

We pay each of our NEOs a base salary to compensate them for services rendered to our company. The base

salary payable to each NEO is intended to provide a fixed component of compensation reflecting the executive's

skill set, experience, role, and responsibilities.

For 2025, the compensation committee of our board of directors established the annual base salary of each NEO

for 2025 as follows: Mr. Feldman, $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ; and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

Our board of directors and compensation committee may adjust base salaries from time to time in their

discretion.

***Annual Bonuses***

We maintain an annual performance-based cash bonus program in which each of our NEOs participated in

2025. Under our annual performance-based cash bonus program, our compensation committee has established a

target bonus opportunity for each NEO, with the NEO earnings based on the achievement of a certain corporate

financial objective established by our compensation committee. The target bonus opportunity established for each

NEO for 2025 was as follows: Mr. Feldman, $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ; and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

Our board of directors and compensation committee may adjust annual target bonus opportunities or award

discretionary bonuses from time to time.

***Equity-Based Compensation***

We have granted stock options and RSUs to our NEOs to attract and retain them, as well as to align their

interests with the interests of our stockholders. Our stock options are generally exercisable prior to vesting (with any

unvested shares subject to repurchase at the original exercise price upon any termination of service) and generally

vest over one, three or four years, subject to continued service to the company. Our RSUs generally require

satisfaction of both a service-based vesting condition, which is generally satisfied over a four-year period, and a

liquidity-based vesting condition, which will be satisfied upon completion of this offering.

In connection with this offering, we intend to adopt a 2026 Incentive Award Plan, referred to below as the 2026

Plan, in order to facilitate the grant of cash and equity incentives to employees (including our NEOs), directors, and

consultants of our company and certain of our affiliates and to enable us to obtain and retain services of these

individuals, which is essential to our long-term success. We expect that the 2026 Plan will become effective on the

business day immediately prior to the date of effectiveness of the registration statement of which this prospectus

forms a part, subject to approval of such plan by our stockholders. For additional information about the 2026 Plan,

see the section titled "Equity Compensation Plans" below.

**Other Elements of Compensation** 

***Retirement Savings and Health and Welfare Benefits***

We currently maintain a 401(k) retirement savings plan for our employees, including our NEOs, who satisfy

certain eligibility requirements. Our NEOs are eligible to participate in the 401(k) plan on the same terms as other

full-time employees. The U.S. Internal Revenue Code of 1986, as amended (the "Code") allows eligible employees

to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the

401(k) plan. We believe that providing a vehicle for tax-deferred retirement savings though our 401(k) plan adds to

the overall desirability of our executive compensation package and further incentivizes our employees, including our

NEOs, in accordance with our compensation policies.

All of our full-time employees, including our NEOs, are eligible to participate in our health and welfare plans,

including medical, dental, and vision benefits; medical and dependent care flexible spending accounts; short-term

and long-term disability insurance; and life and accidental death and dismemberment insurance.

***Perquisites and Other Personal Benefits***

We provide perquisites and other personal benefits to our NEOs when we believe it is necessary to attract or

retain the NEO. None of our NEOs received any perquisites during 2025.

**Outstanding Equity Awards at 2025 Year End** 

The following table lists all outstanding equity awards held by our NEOs as of December 31, 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Name** | <br>**Vesting** <br>**Commencement** <br>**Date**<br>| **Number of** <br>**Securities** <br>**Underlying** <br>**Unexercised** <br>**Options (#)** <br>**Exercisable**<br>| **Number of** <br>**Securities** <br>**Underlying** <br>**Unexercised** <br>**Options (#)** <br>**Unexercisable**<br>| **Option** <br>**Exercise** <br>**Price**<br>**($)**<br>| **Option** <br>**Expiration** <br>**Date**<br>| **Number** <br>**of Shares** <br>**or Units** <br>**of Stock** <br>**That** <br>**Have Not** <br>**Vested**<br>**(#)**<br>| **Market** <br>**Value of** <br>**Shares or** <br>**Units of** <br>**Stock That** <br>**Have Not** <br>**Vested**<br>**($)**<br>|
| Andrew D. Feldman..... |  |  |  |  |  |  |  |

---

**Executive Compensation Arrangements** 

We are party to offer letters with each of our NEOs, other than Mr. Feldman. Each offer letter provides for an

initial base salary, target bonus opportunity, initial equity award, and participation in our benefits plans.

**Equity Compensation Plans**

The following summarizes the material terms of the long-term incentive compensation plan and employee stock

purchase plan in which our NEOs will be eligible to participate following this offering and our existing equity plans,

under which we have previously made periodic grants of equity and equity-based awards to our NEOs and other

employees.

***2026 Incentive Award Plan***

We intend to adopt the 2026 Plan, which will become effective on the business day immediately prior to the

date of effectiveness of the registration statement of which this prospectus forms a part. The principal purpose of the

2026 Plan is to attract, retain and motivate selected employees, directors, and consultants through the granting of

stock-based compensation awards and cash-based performance bonus awards. The material terms of the 2026 Plan,

as it is currently contemplated, are summarized below.

*Share Reserve.* Under the 2026 Plan, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock will be initially reserved

for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock appreciation

rights ("SARs"), restricted stock awards, RSU awards, and other stock-based awards. The number of shares initially

reserved for issuance or transfer pursuant to awards under the 2026 Plan will be increased by (i) the number of

shares represented by awards outstanding under the 2016 Plan, that become available for issuance under the

counting provisions described below following the effective date and (ii) an annual increase on the first day of each

fiscal year beginning in 2027 and ending in 2036, equal to the lesser of (A) 5% of the shares of our Class A common

stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (B) such

smaller number of shares of stock as determined by our board of directors; provided, however, that no more than

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of stock may be issued upon the exercise of incentive stock options.

The following counting provisions will be in effect for the share reserve under the 2026 Plan:

• to the extent that an award (including an award granted under the 2016 Plan (a "Prior Plan Award"))

terminates, expires, or lapses for any reason or an award is settled in cash without the delivery of shares,

any shares subject to the award at such time will be available for future grants under the 2026 Plan;

• to the extent shares are tendered or withheld to satisfy the grant, exercise price, or tax withholding

obligation with respect to any award under the 2026 Plan or Prior Plan Award, such tendered or withheld

shares will be available for future grants under the 2026 Plan;

• to the extent shares subject to stock appreciation rights are not issued in connection with the stock

settlement of stock appreciation rights on exercise thereof, such shares will be available for future grants

under the 2026 Plan;

• to the extent that shares of our Class A common stock are repurchased by us prior to vesting so that shares

are returned to us, such shares will be available for future grants under the 2026 Plan;

• the payment of dividend equivalents in cash in conjunction with any outstanding awards or Prior Plan

Awards will not be counted against the shares available for issuance under the 2026 Plan; and

• to the extent permitted by applicable law or any exchange rule, shares issued in assumption of, or in

substitution for, any outstanding awards of any entity acquired in any form of combination by us or any of

our subsidiaries will not be counted against the shares available for issuance under the 2026 Plan.

In addition, the sum of the grant date fair value of all equity-based awards and the maximum that may become

payable pursuant to all cash-based awards to any individual for services as a non-employee director during any

calendar year may not exceed $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

*Administration*. The compensation committee of our board of directors is expected to administer the 2026 Plan

unless our board of directors assumes authority for administration. The compensation committee must consist of at

least three members of our board of directors, each of whom is intended to qualify as a "non-employee director" for

purposes of Rule 16b-3 under the Exchange Act and an "independent director" within the meaning of the rules of the

applicable stock exchange, or other principal securities market on which shares of our Class A common stock are

traded. The 2026 Plan provides that our board of directors or compensation committee may delegate its authority to

grant awards to employees other than executive officers and certain senior executives of the company to a committee

consisting of one or more members of our board of directors or one or more of our officers, other than awards made

to our non-employee directors, which must be approved by our full board of directors.

Subject to the terms and conditions of the 2026 Plan, the administrator has the authority to select the persons to

whom awards are to be made, to determine the number of shares to be subject to awards and the terms and

conditions of awards, and to make all other determinations and to take all other actions necessary or advisable for

the administration of the 2026 Plan. The administrator is also authorized to adopt, amend or rescind rules relating to

administration of the 2026 Plan. Our board of directors may at any time remove the compensation committee as the

administrator and revest in itself the authority to administer the 2026 Plan. The full board of directors will

administer the 2026 Plan with respect to awards to non-employee directors.

*Eligibility*. Awards under the 2026 Plan may be granted to individuals who are then our officers, employees, or

consultants or are the officers, employees, or consultants of certain of our subsidiaries. Such awards also may be

granted to our directors. Only employees of our company or certain of our subsidiaries may be granted incentive

stock options.

*Awards*. The 2026 Plan provides that the administrator may grant or issue stock options, SARs, restricted stock,

RSUs, other stock- or cash-based awards and dividend equivalents, or any combination thereof. Each award will be

set forth in a separate agreement with the person receiving the award and will indicate the type, terms, and

conditions of the award.

• *Nonstatutory Stock Options* ("NSOs") will provide for the right to purchase shares of our Class A common

stock at a specified price which may not be less than fair market value on the date of grant, and usually will

become exercisable (at the discretion of the administrator) in one or more installments after the grant date,

subject to the participant's continued employment or service with us and/or subject to the satisfaction of

corporate performance targets and individual performance targets established by the administrator. NSOs

may be granted for any term specified by the administrator that does not exceed ten years.

• *Incentive Stock Options* ("ISOs") will be designed in a manner intended to comply with the provisions of

Section 422 of the Code and will be subject to specified restrictions contained in the Code. Among such

restrictions, ISOs must have an exercise price of not less than the fair market value of a share of Class A

common stock on the date of grant, may only be granted to employees, and must not be exercisable after a

period of ten years measured from the date of grant. In the case of an ISO granted to an individual who

owns (or is deemed to own) at least 10% of the total combined voting power of all classes of our capital

stock, the 2026 Plan provides that the exercise price must be at least 110% of the fair market value of a

share of Class A common stock on the date of grant and the ISO must not be exercisable after a period of

five years measured from the date of grant.

• *Restricted Stock* may be granted to any eligible individual and made subject to such restrictions as may be

determined by the administrator. Restricted stock, typically, may be forfeited for no consideration or

repurchased by us at the original purchase price if the conditions or restrictions on vesting are not met. In

general, restricted stock may not be sold or otherwise transferred until restrictions are removed or expire.

Purchasers of restricted stock, unlike recipients of options, will have voting rights and will have the right to

receive dividends, if any, prior to the time when the restrictions lapse, however, extraordinary dividends

will generally be placed in escrow, and will not be released until restrictions are removed or expire.

• *RSUs* may be awarded to any eligible individual, typically without payment of consideration, but subject to

vesting conditions based on continued employment or service or on performance criteria established by the

administrator. Like restricted stock, RSUs may not be sold, or otherwise transferred or hypothecated, until

vesting conditions are removed or expire. Unlike restricted stock, stock underlying RSUs will not be issued

until the RSUs have vested, and recipients of RSUs generally will have no voting or dividend rights prior to

the time when vesting conditions are satisfied.

• *SARs* may be granted in connection with stock options or other awards, or separately. SARs granted in

connection with stock options or other awards typically will provide for payments to the holder based upon

increases in the price of our Class A common stock over a set exercise price. The exercise price of any SAR

granted under the 2026 Plan must be at least 100% of the fair market value of a share of our Class A

common stock on the date of grant. SARs under the 2026 Plan will be settled in cash or shares of our

Class A common stock, or in a combination of both, at the election of the administrator.

• *Other Stock or Cash Based Awards are awards* of cash, fully vested shares of our Class A common stock

and other awards valued wholly or partially by referring to, or otherwise based on, shares of our Class A

common stock. Other stock- or cash-based awards may be granted to participants and may also be available

as a payment form in the settlement of other awards, as standalone payments and as payment in lieu of base

salary, bonus, fees or other cash compensation otherwise payable to any individual who is eligible to

receive awards. The administrator will determine the terms and conditions of other stock- or cash-based

awards, which may include vesting conditions based on continued service, performance and/or other

conditions.

• *Dividend Equivalents* represent the right to receive the equivalent value of dividends paid on shares of our

Class A common stock and may be granted alone or in tandem with awards other than stock options or

SARs. Dividend equivalents are credited as of dividend payments dates during the period between a

specified date and the date such award terminates or expires, as determined by the administrator. In

addition, dividend equivalents with respect to shares covered by a performance award will only be paid to

the participant at the same time or times and to the same extent that the vesting conditions, if any, are

subsequently satisfied and the performance award vests with respect to such shares.

Any award may be granted as a performance award, meaning that the award will be subject to vesting and/or

payment based on the attainment of specified performance goals.

*Change in Control*. In the event of a change in control, unless the administrator elects to terminate an award in

exchange for cash, rights, or other property, or cause an award to accelerate in full prior to the change in control,

such award will continue in effect or be assumed or substituted by the acquirer, provided that any performance-

based portion of the award will be subject to the terms and conditions of the applicable award agreement. In the

event the acquirer refuses to assume or replace awards granted, prior to the completion of such transaction, awards

issued under the 2026 Plan will be subject to accelerated vesting such that 100% of such awards will become vested

and exercisable or payable, as applicable. The administrator may also make appropriate adjustments to awards under

the 2026 Plan and is authorized to provide for the acceleration, cash-out, termination, assumption, substitution or

conversion of such awards in the event of a change in control or certain other unusual or nonrecurring events or

transactions.

*Adjustments of Awards*. In the event of any stock dividend or other distribution, stock split, reverse stock split,

reorganization, combination or exchange of shares, merger, consolidation, split-up, spin-off, recapitalization,

repurchase, or any other corporate event affecting the number of outstanding shares of our Class A common stock or

the share price of our Class A common stock that would require adjustments to the 2026 Plan or any awards under

the 2026 Plan in order to prevent the dilution or enlargement of the potential benefits intended to be made available

thereunder, the administrator will make appropriate, proportionate adjustments to: (i) the aggregate number and type

of shares subject to the 2026 Plan; (ii) the number and kind of shares subject to outstanding awards and terms and

conditions of outstanding awards (including, without limitation, any applicable performance targets or criteria with

respect to such awards); and (iii) the grant or exercise price per share of any outstanding awards under the 2026

Plan.

*Amendment and Termination*. The administrator may terminate, amend or modify the 2026 Plan at any time and

from time to time. However, we must generally obtain stockholder approval to the extent required by applicable law,

rule or regulation (including any applicable stock exchange rule). Notwithstanding the foregoing, an option may be

amended to reduce the per share exercise price below the per share exercise price of such option on the grant date

and options may be granted in exchange for, or in connection with, the cancellation or surrender of options having a

higher per share exercise price without receiving additional stockholder approval.

No ISOs may be granted pursuant to the 2026 Plan after the tenth anniversary of the effective date of the 2026

Plan, and no additional annual share increases to the 2026 Plan's aggregate share limit will occur from and after

such anniversary. Any award that is outstanding on the termination date of the 2026 Plan will remain in force

according to the terms of the 2026 Plan and the applicable award agreement.

***2016 Equity Incentive Plan***

We currently maintain the 2016 Plan, which became effective on May 5, 2016 upon its adoption by our board of

directors and approval of our stockholders. Following this offering and in connection with the effectiveness of our

2026 Plan, the 2016 Plan will terminate and no further awards will be granted under the 2016 Plan. However, all

outstanding awards will continue to be governed by their existing terms.

*Administration.* Our board of directors, the compensation committee, or another committee thereof appointed by

our board of directors, has the authority to administer the 2016 Plan and the awards granted under it. The

administrator has the authority to select the service providers to whom awards will be granted under the 2016 Plan,

the number of shares to be subject to those awards under the 2016 Plan, and the terms and conditions of the awards

granted. In addition, the administrator has the authority to construe and interpret the 2016 Plan and to adopt rules for

the relating to the 2016 Plan and exercise such other powers that it deems necessary and desirable to promote the

bests interests of the company and that are consistent with the terms of the 2016 Plan.

*Share Reserve.* We have reserved an aggregate of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock for issuance

under the 2016 Plan. As of December 31, 2025, after giving effect to the Option Exercise and the RSU Net

Settlement, options to purchase a total of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock were

outstanding,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of restricted stock acquired upon exercise of options prior to vesting were

outstanding,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RSUs covering shares of our Class A common stock were outstanding,

and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares remained available for future grants.

*Awards*. The 2016 Plan provides that the administrator may grant or issue options, including ISOs and NSOs,

restricted stock, and RSUs to employees, directors, and consultants, provided that only employees may be granted

ISOs.

• *Stock Options*. The 2016 Plan provides for the grant of ISOs or NSOs. ISOs may be granted only to

employees. NSOs may be granted to employees, directors, or consultants. The exercise price of ISOs

granted to employees who at the time of grant own stock representing more than 10% of the voting power

of all classes of our Class A common stock may not be less than 110% of the fair market value per share of

our Class A common stock on the date of grant, and the exercise price of ISOs granted to any other

employees may not be less than 100% of the fair market value per share of our Class A common stock on

the date of grant. The exercise price of NSOs to employees, directors, or consultants may not be less than

100% of the fair market value per share of our Class A common stock on the date of grant.

• *Restricted Stock*. The 2016 Plan provides for the grant of restricted stock. Each share of restricted stock that

is accepted will be governed by a restricted stock purchase agreement, which will detail the restrictions on

transferability, risk of forfeiture, and other restrictions the administrator approves. In general, restricted

stock acquired upon exercise of a stock purchase right may not be sold, transferred, pledged, hypothecated,

margined, or otherwise encumbered until restrictions are removed or expire. Holders of restricted stock,

unlike recipients of stock options, will have voting rights and will have the right to receive dividends, if

any, prior to the time when the restrictions lapse.

• *RSUs*. The 2016 Plan provides for the grant of RSUs. Each RSU represents the unfunded, unsecured right

to receive a share of our Class A common stock or an amount of cash or other consideration equal to the

fair market value of a share of our Class A common stock. The terms of each award of RSUs are set forth

in a RSU agreement.

• *SARs*. The 2016 Plan provides for the grant of SARs. SARs may be settled in cash or shares (which may

consist of restricted stock or RSUs or a combination thereof, having a value equal to multiplying the

difference between the fair market value on the date of exercise over the exercise price and the number of

shares with respect to which the SARs are being exercised). All grants of SARs made will be evidenced by

an award agreement.

*Adjustments of Awards.* In the event of any dividend or other distribution, reorganization, merger, consolidation,

combination, repurchase, liquidation, dissolution, or sale, transfer, exchange, or other disposition of substantially all

of our assets, or exchange of shares or other similar corporate transaction or event, the administrator will make

adjustments to the number and class of shares available for issuance under the 2016 Plan and the number, class, and

price of shares subject to outstanding awards, in order to prevent dilution or enlargement of benefits.

*Change in Control.* In the event of a change in control, any outstanding awards acquired under the 2016 Plan

shall be subject to the agreement evidencing the change of control. The successor or acquiring entity may elect for

such outstanding awards to be assumed or substituted. Otherwise, in the event of a merger or change in control, the

change of control agreement has broad discretion to determine the treatment of each outstanding award, including

providing for awards to terminate or accelerate or for awards to terminate in exchange for cash or other property.

*Amendment and Termination.* Our board of directors may amend or terminate the 2016 Plan or any portion

thereof at any time. However, no amendment may impair the rights of a holder of an outstanding option grant

without the holder's consent, and any action by our board of directors to increase the number of shares subject to the

plan or extend the term of the plan is subject to the approval of our stockholders. Additionally, an amendment of the

plan shall be subject to the approval of our stockholders, where such approval by our stockholders of an amendment

is required by applicable law. Following this offering and in connection with the effectiveness of our 2016 Plan, the

2016 Plan will terminate and no further awards will be granted under the 2016 Plan.

***2026 Employee Stock Purchase Plan***

We intend to adopt the ESPP, which will become effective on the business day immediately prior to the date of

effectiveness of the registration statement of which this prospectus forms a part. The ESPP is designed to allow our

eligible employees to purchase shares of our Class A common stock, at periodic intervals, with their accumulated

payroll deductions. The ESPP is intended to qualify under Section 423 of the Code. The material terms of the ESPP,

as it is currently contemplated, are summarized below.

*Administration*. Subject to the terms and conditions of the ESPP, our compensation committee will administer

the ESPP. Our compensation committee can delegate administrative tasks under the ESPP to the services of an agent

and/or employees to assist in the administration of the ESPP. The administrator will have the discretionary authority

to administer and interpret the ESPP. Interpretations and constructions of the administrator of any provision of the

ESPP or of any rights thereunder will be conclusive and binding on all persons. We will bear all expenses and

liabilities incurred by the ESPP administrator.

*Share Reserve*. The maximum number of our shares of our Class A common stock that will be authorized for

sale under the ESPP is equal to the sum of (i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and (ii) an annual increase

on the first day of each fiscal year beginning in 2027 and ending in 2036, equal to the lesser of (A) 1% of the shares

of Class A common stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal

year and (B) such number of shares of Class A common stock as determined by our board of directors; provided,

however, no more than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock may be issued under the ESPP. The shares

reserved for issuance under the ESPP may be authorized but unissued shares or reacquired shares.

*Eligibility*. Employees eligible to participate in the ESPP for a given offering period generally include

employees who are employed by us or one of our subsidiaries on the first day of the offering period. Our employees

(and, if applicable, any employees of our subsidiaries) who customarily work less than five months in a calendar

year or are customarily scheduled to work less than 20 hours per week will not be eligible to participate in the ESPP.

Finally, an employee who owns (or is deemed to own through attribution) 5% or more of the combined voting power

or value of all our classes of stock or of one of our subsidiaries will not be allowed to participate in the ESPP.

*Participation*. Employees will enroll under the ESPP by completing a payroll deduction form permitting the

deduction from their compensation of at least 1% of their compensation but not more than 15% of their base

compensation. Such payroll deductions may be expressed as either a whole number percentage or a fixed dollar

amount, and the accumulated deductions will be applied to the purchase of shares on each purchase date. However, a

participant may not purchase more than 100,000 shares in each offering period and may not accrue the right to

purchase shares of Class A common stock at a rate that exceeds $25,000 in fair market value of shares of our

Class A common stock (determined at the time the option is granted) for each calendar year the option is outstanding

(as determined in accordance with Section 423 of the Code). The ESPP administrator has the authority to change

these limitations for any subsequent offering period.

*Offering*. Under the ESPP, participants are offered the option to purchase shares of our Class A common stock

at a discount during a series of successive offering periods, the duration and timing of which will be determined by

the ESPP administrator. However, in no event may an offering period be longer than 27 months in length.

The option purchase price will be the lower of 85% of the closing trading price per share of our Class A

common stock on the first trading date of an offering period in which a participant is enrolled or 85% of the closing

trading price per share on the purchase date, which will occur on the last trading day of each purchase period within

an offering period.

Unless a participant has previously cancelled his or her participation in the ESPP before the purchase date, the

participant will be deemed to have exercised his or her option in full as of each purchase date. Upon exercise, the

participant will purchase the number of whole shares that his or her accumulated payroll deductions will buy at the

option purchase price, subject to the participation limitations listed above.

A participant may cancel his or her payroll deduction authorization at any time prior to the end of the offering

period. Upon cancellation, the participant will have the option to either (i) receive a refund of the participant's

account balance in cash without interest or (ii) exercise the participant's option for the current offering period for the

maximum number of shares of Class A common stock on the applicable purchase date, with the remaining account

balance refunded in cash without interest. Following at least one payroll deduction, a participant may also decrease

(but not increase) his or her payroll deduction authorization once during any offering period. If a participant wants to

increase or decrease the rate of payroll withholding, he or she may do so effective for the next offering period by

submitting a new form before the offering period for which such change is to be effective.

A participant may not assign, transfer, pledge or otherwise dispose of (other than by will or the laws of descent

and distribution) payroll deductions credited to a participant's account or any rights to exercise an option or to

receive shares of our Class A common stock under the ESPP, and during a participant's lifetime, options in the

ESPP shall be exercisable only by such participant. Any such attempt at assignment, transfer, pledge, or other

disposition will not be given effect.

*Adjustments upon Changes in Recapitalization, Dissolution, Liquidation, Merger, or Asset Sale*. In the event of

any increase or decrease in the number of issued shares of our Class A common stock resulting from a stock split,

reverse stock split, stock dividend, combination, or reclassification of the Class A common stock, or any other

increase or decrease in the number of shares of Class A common stock effected without receipt of consideration by

us, we will proportionately adjust the aggregate number of shares of our Class A common stock offered under the

ESPP, the number and price of shares which any participant has elected to purchase under the ESPP and the

maximum number of shares which a participant may elect to purchase in any single offering period. If there is a

proposal to dissolve or liquidate us, then the ESPP will terminate immediately prior to the consummation of such

proposed dissolution or liquidation, and any offering period then in progress will be shortened by setting a new

purchase date to take place before the date of our dissolution or liquidation. We will notify each participant of such

change in writing prior to the new exercise date. If we undergo a merger with or into another corporation or sell all

or substantially all of our assets, each outstanding option will be assumed or an equivalent option substituted by the

successor corporation or the parent or subsidiary of the successor corporation. If the successor corporation refuses to

assume the outstanding options or substitute equivalent options, then any offering period then in progress will be

shortened by setting a new purchase date to take place before the date of our proposed sale or merger. We will notify

each participant of such change in writing prior to the new exercise date.

*Amendment and Termination*. Our board of directors may amend, suspend, or terminate the ESPP at any time.

However, the board of directors may not amend the ESPP without obtaining stockholder approval within 12 months

before or after such amendment to the extent required by applicable laws.

**Director Compensation** 

For the year ended December 31, 2025, we did not have a formalized non-employee director compensation

program, and none of our non-employee directors was paid cash compensation or granted an option or stock award

in connection with the non-employee director's service to us during 2025.

In connection with this offering, we intend to adopt a non-employee director compensation program that will

provide for annual retainers for board and committee service and the automatic grant of initial and annual equity

awards.

Under our non-employee director compensation program (the "Director Compensation Program") that will

become effective upon the completion of this offering, our non-employee directors will receive cash compensation,

paid quarterly in arrears, as follows:

• Each non-employee director will receive a cash retainer in the amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year.

• The non-employee chair of our board of directors will receive an additional cash retainer in the amount of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year.

• The chair of the Audit Committee receives a cash retainer in the amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year for such

chairperson's service on the Audit Committee. Each non-chairperson member of the Audit Committee

receives a cash retainer in the amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year for such member's service on the Audit

Committee.

• The chair of the Compensation Committee will receive a cash retainer in the amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year

for such chairperson's service on the Compensation Committee. Each non-chairperson member of the

Compensation Committee receives a cash retainer in the amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year for such member's

service on the Compensation Committee.

• The chair of the Nominating and Corporate Governance Committee will receive a cash retainer in the

amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year for such chairperson's service on the Nominating and Corporate Governance

committee. Each non-chairperson member of the Nominating and Corporate Governance committee will

receive a cash retainer in the amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per year for such member's service on the Nominating

and Corporate Governance committee.

Under the Director Compensation Program, each non-employee director on the date the non-employee director

is appointed to our board of directors will automatically be granted that number of RSUs (the "Initial Grant") under

the 2026 Plan determined by dividing $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the closing trading price of a share of our Class A common

stock on the date of grant. The Initial Grant will vest in substantially equal quarterly installments over three years,

subject to continued service through the applicable vesting date. In addition, on the date of each annual meeting of

our stockholders, each non-employee director who will continue to serve as a non-employee director immediately

following such annual meeting will automatically be granted that number of RSUs (the "Annual Grant") under the

2026 Plan determined by dividing $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the closing trading price of a share of our Class A common stock

on the date of grant. The Annual Grant will vest in full on the earlier of the (i) first anniversary of the grant date and

(ii) immediately prior to the annual meeting of our stockholders following the date of grant, subject to continued

service through the applicable vesting date.

Pursuant to the Director Compensation Program, upon a change in control transaction, all outstanding equity

awards held by our non-employee directors will vest in full.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

The following includes a summary of transactions since January 1, 2023 and any currently proposed

transactions, to which we were or are to be a participant, in which (i) the amount involved exceeded or will exceed

$120,000; and (ii) any of our directors, executive officers, or holders of more than 5% of our capital stock, or any

affiliate or member of the immediate family of the foregoing persons or entities, had or will have a direct or indirect

material interest, other than compensation and other arrangements that are described under the section titled

"Executive and Director Compensation."

We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the

transactions described below were comparable to terms available or the amounts that we would pay or receive, as

applicable, in arm's-length transactions.

**Redeemable Convertible Preferred Stock Financings**

***Series F-1 Redeemable Convertible Preferred Stock Financing***

In May 2024, we entered into a Series F-1 redeemable convertible preferred stock purchase agreement, as

subsequently amended and restated in August 2025, with various investors pursuant to which we agreed to issue and

sell 5,798,089 shares of our Series F-1 redeemable convertible preferred stock at a purchase price of $14.66 per

share, for aggregate gross proceeds of approximately $85.0 million. In July and August 2024, various investors

purchased an aggregate of 2,728,512 shares of our Series F-1 redeemable convertible preferred stock for an

aggregate purchase price of approximately $40.0 million.

In September 2024, Alpha Wave Ventures II, LP, an existing stockholder, purchased 3,069,577 shares of our

Series F-1 redeemable convertible preferred stock for an aggregate purchase price of approximately $45.0 million.

Entities affiliated with Alpha Wave collectively beneficially own more than 5% of our outstanding capital stock

following the purchase of our Series F-1 redeemable convertible preferred stock. See the section titled "Principal

and Selling Stockholders" for additional information.

***Series G Redeemable Convertible Preferred Stock Financing***

In September 2025, we entered into a Series G redeemable convertible preferred stock purchase agreement with

various investors pursuant to which we issued and sold an aggregate of 30,359,557 shares of our Series G

redeemable convertible preferred stock at a purchase price of $36.2324 per share, for an aggregate purchase price of

approximately $1.1 billion in multiple closings through October 2025.

The table below sets forth the number of shares of our Series G redeemable convertible preferred stock

purchased by holders of more than 5% of our capital stock and their affiliated entities. None of our directors or

executive officers purchased shares of Series G redeemable convertible preferred stock.

---

| | | |
|:---|:---|:---|
| **Name**<sup>(1)</sup> | **Shares of** <br>**Series G** <br>**Redeemable** <br>**Convertible** <br>**Preferred Stock**<br>| **Aggregate** <br>**Purchase Price**<br>|
| Entities affiliated with Alpha Wave<sup>(2)</sup>.................................................................... | 1241982 | $44999989 |
| Entities affiliated with Benchmark<sup>(3)</sup>...................................................................... | 689990 | $24999994 |
| Entities affiliated with Fidelity<sup>(4)</sup>............................................................................ | 19319724 | $699999968 |

---

_______________

(1)See the section titled "Principal and Selling Stockholders" for additional information regarding these

stockholders and their equity holdings.

(2)Entities affiliated with Alpha Wave collectively beneficially own more than 5% of our outstanding capital stock.

(3)Entities affiliated with Benchmark collectively beneficially own more than 5% of our outstanding capital stock.

Eric Vishria, a member of our board of directors, is a General Partner of Benchmark.

(4)Entities affiliated with Fidelity collectively beneficially own more than 5% of our outstanding capital stock

following the purchase of our Series G redeemable convertible preferred stock.

**Tender Offer**

In December 2025, we completed a tender offer for shares of our outstanding Class A common stock from

certain of our employees and purchased an aggregate of 2,156,765 shares of our outstanding Class A common stock

at a purchase price of $36.2324 per share, for an aggregate gross purchase price of $78.1 million (the "2025 Tender

Offer"). We repurchased an aggregate of 27,599 shares of our Class A common stock from Robert Komin, our Chief

Financial Officer, and an aggregate of 27,599 shares of our Class A common stock from Dhiraj Mallick, our Chief

Operating Officer, in the 2025 Tender Offer, for an aggregate gross purchase price of $1.0 million and $1.0 million,

respectively.

**Registration Rights**

We are party to an amended and restated investors' rights agreement which provides, among other things, that

certain holders of our capital stock, including entities affiliated with Alpha Wave, Benchmark, Eclipse, Fidelity, and

Foundation Capital, each of which hold more than 5% of our outstanding capital stock, have the right to demand that

we file a registration statement. This agreement also provides that such parties and others, including Andrew

D. Feldman, our Chief Executive Officer, President, and a member of our board of directors, have the right to

request that their shares of our capital stock be included on a registration statement that we are otherwise filing. See

the section titled "Description of Capital Stock—Registration Rights" for additional information regarding these

registration rights.

**Right of First Refusal**

Pursuant to our equity compensation plans and certain agreements with our stockholders, including a right of

first refusal and co-sale agreement with certain holders of our capital stock, including entities affiliated with Alpha

Wave, Benchmark, Eclipse, Fidelity, and Foundation Capital, each of which hold more than 5% of our outstanding

capital stock, Mr. Feldman, and Dhiraj Mallick, our Chief Operating Officer, we or our assignees have a right to

purchase shares of our capital stock which certain stockholders propose to sell to other parties. This right under the

right of first refusal and co-sale agreement will terminate upon the effectiveness of the registration statement of

which this prospectus forms a part.

Since January 1, 2023, we have waived our right of first refusal in connection with secondary sales of shares of

our capital stock, including sales by certain of our executive officers.

**Voting Agreement**

We are party to an amended and restated voting agreement under which certain holders of our capital stock,

including entities affiliated with Alpha Wave, Benchmark, Eclipse, Fidelity, and Foundation Capital, each of which

hold more than 5% of our outstanding capital stock, and Mr. Feldman have agreed as to the manner in which they

will vote their shares of our capital stock on certain matters, including with respect to the election of directors. Upon

the effectiveness of the registration statement of which this prospectus forms a part, the voting agreement will

terminate and none of our stockholders will have any special rights regarding the election or designation of members

of our board of directors.

**Other Transactions**

We have entered into offer letter agreements with certain of our executive officers that, among other things,

provide for certain compensatory and change in control benefits. For a description of these agreements with our

named executive officers, see the section titled "Executive and Director Compensation—Executive Compensation

Arrangements."

We have also granted stock options, RSUs, and restricted stock to our executive officers and directors. For a

description of these equity awards, see the section titled "Executive and Director Compensation—Outstanding

Equity Awards at 2025 Year End."

**Director and Officer Indemnification**

We have entered into indemnification agreements with certain of our current executive officers and directors,

and intend to enter into new indemnification agreements with each of our current executive officers and directors

before the completion of this offering.

Our amended and restated certificate of incorporation also provides that, to the fullest extent permitted by law,

we will indemnify any officer or director of our company against all damages, claims, and liabilities arising out of

the fact that the person is or was our officer or director, or served any other enterprise at our request as an officer or

director. Amending this provision will not reduce our indemnification obligations relating to actions taken before an

amendment.

**Related Person Transaction Policy**

We have a written related person transaction policy, to be effective upon the completion of this offering, that

applies to our executive officers, directors, director nominees, holders of more than 5% of any class of our voting

securities and any member of the immediate family of, and any entity affiliated with, any of the foregoing persons.

Such persons will not be permitted to enter into a related person transaction with us without the prior consent of our

audit committee, or other independent members of our board of directors in the event it is inappropriate for our audit

committee to review such transaction due to a conflict of interest. Any request for us to enter into a transaction with

an executive officer, director, director nominee, principal stockholder, or any of their immediate family members or

affiliates, in which the amount involved exceeds $120,000 must first be presented to our audit committee for review,

consideration, and approval. In approving or rejecting any such proposal, our audit committee will consider the

relevant facts and circumstances available and deemed relevant to our audit committee, including, but not limited to,

the commercial reasonableness of the terms of the transaction and the materiality and character of the related

person's direct or indirect interest in the transaction. All of the transactions described in this section occurred prior

to the adoption of this policy.

**PRINCIPAL AND SELLING STOCKHOLDERS**

The following table contains information about the beneficial ownership of our common stock as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ,

2026, (i) immediately prior to the completion of this offering and (ii) as adjusted to the sale of shares of our Class A

common stock offered by this prospectus, assuming no exercise of the underwriters' over-allotment option to

purchase additional shares from us, by:

• each of our directors;

• each of our named executive officers;

• all directors and executive officers as a group;

• each of the selling stockholders; and

• each person, or group of persons, known to us who beneficially owns more than 5% of our capital stock;.

We have based percentage ownership of our common stock before this offering on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our

Class A common stock and no shares of our Class N common stock outstanding, in each case, as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026,

and assume the occurrence of each of the filing and effectiveness of our amended and restated certificate of

incorporation, which will be in effect immediately prior to the completion of this offering, the Preferred Stock

Conversion, the Option Exercise, and the RSU Net Settlement, in each case as if it had occurred as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ,

2026, but do not give effect to any voting proxies that will expire in connection with this offering. The exact number

of shares of our Class A common stock that will be withheld from a stockholder in connection with the RSU Net

Settlement will differ based on the stockholder's personal tax rates. The percentage ownership of our common stock

after this offering also assumes the foregoing and the issuance and sale of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock

by us in this offering, and assumes no exercise of the underwriters' over-allotment option.

In accordance with the rules of the SEC, beneficial ownership includes voting or investment power with respect

to securities and includes the shares issuable pursuant to stock options that are exercisable within 60 days of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 or issuable pursuant to RSUs which are subject to vesting and settlement conditions expected to

occur within 60 days of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 (including those for which the liquidity-based vesting condition will be

satisfied in connection with this offering). Shares issuable pursuant to stock options are deemed outstanding for

computing the percentage of the person holding such options but are not outstanding for computing the percentage

of any other person.

For further information regarding material transactions between us and certain of our stockholders, see the

section titled "Certain Relationships and Related Party Transactions." Unless otherwise indicated, the address for

each listed stockholder is: c/o Cerebras Systems Inc., 1237 E. Arques Avenue, Sunnyvale, California 94085. Except

as indicated in the footnotes to the following table or pursuant to applicable community property laws, we believe,

based on information furnished to us, that each stockholder named in the table has sole voting and investment power

with respect to the shares set forth opposite such stockholder's name.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Beneficially Owned Before this** <br>**Offering** | **Shares Beneficially Owned Before this** <br>**Offering** | **Shares Beneficially Owned Before this** <br>**Offering** |  | **Shares Beneficially Owned After this Offering** | **Shares Beneficially Owned After this Offering** | **Shares Beneficially Owned After this Offering** |
| | **Class A Common Stock** | **Class A Common Stock** | **% of Total** <br>**Voting** <br>**Power** | **Shares of** <br>**Class A** <br>**Common** <br>**Stock Being** <br>**Offered** | **Class A Common Stock** | **Class A Common Stock** | **% of Total** <br>**Voting** <br>**Power** |
| <br>**Name of Beneficial Owner** | **Shares** | **%** | **% of Total** <br>**Voting** <br>**Power** | **Shares of** <br>**Class A** <br>**Common** <br>**Stock Being** <br>**Offered** | **Shares** | **%** | **% of Total** <br>**Voting** <br>**Power** |
| **Named Executive Officers and Directors:** |  |  |  |  |  |  |  |
| Andrew D. Feldman<sup>(1)</sup>............................................. |  |  |  |  |  |  |  |
| Paul Auvil<sup>(2)</sup>............................................................. |  |  |  |  |  |  |  |
| Glenda Dorchak<sup>(3)</sup>.................................................... |  |  |  |  |  |  |  |
| Thomas Lantzsch<sup>(4)</sup>.................................................. |  |  |  |  |  |  |  |
| Lior Susan<sup>(5)</sup>............................................................. |  |  |  |  |  |  |  |
| Eric Vishria<sup>(6)</sup>........................................................... |  |  |  |  |  |  |  |
| Steve Vassallo<sup>(7)</sup>....................................................... |  |  |  |  |  |  |  |
| All current executive officers and directors as a <br>group (10 persons)<sup>(8)</sup>............................................<br>|  |  |  |  |  |  |  |
| **Other 5% or Greater Stockholders:** |  |  |  |  |  |  |  |
| Entities affiliated with Alpha Wave<sup>(9)</sup>..................... |  |  |  |  |  |  |  |
| Entities affiliated with Benchmark<sup>(10)</sup>...................... |  |  |  |  |  |  |  |
| Entities affiliated with Eclipse<sup>(11)</sup>............................ |  |  |  |  |  |  |  |
| Entities affiliated with Fidelity<sup>(12)</sup>............................ |  |  |  |  |  |  |  |
| Entities affiliated with Foundation Capital<sup>(13)</sup>......... |  |  |  |  |  |  |  |
| **Selling Stockholders:** |  |  |  |  |  |  |  |
| All selling stockholders who beneficially own, in <br>the aggregate, less than 1% of our common <br>stock....................................................................<br>|  |  |  |  |  |  |  |

---

_______________

\*Represents beneficial ownership of less than 1%.

(1)Represents (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares underlying options to purchase

shares of Class A common stock that are exercisable within 60 days of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026; and (iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares

issuable upon settlement of RSUs that will have satisfied the service-based and liquidity-based vesting

conditions in connection with this offering, before giving effect to the RSU Net Settlement.

(2)Represents&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock.

(3)Represents &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares underlying options to purchase shares of Class A common stock that are

exercisable within 60 days of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026.

(4)Represents &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares issuable upon settlement of RSUs that will have satisfied the service-based and

liquidity-based vesting conditions in connection with this offering.

(5)See footnote (11) for shares held by the entities affiliated with Eclipse. Mr. Susan, the Founder and Managing

Partner of Eclipse, is a member of our board of directors.

(6)See footnote (10) for shares held by the entities affiliated with Benchmark. Mr. Vishria, a general partner of

Benchmark, is a member of our board of directors.

(7)See footnote (13) for shares held by the entities affiliated with Foundation Capital. Mr. Vassallo, a general

partner of Foundation Capital, is a member of our board of directors.

(8)Represents (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock beneficially owned by our current executive officers

and directors as a group; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares underlying options to purchase shares of Class A common stock

that are exercisable within 60 days of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026; (iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares issuable upon settlement of RSUs

that will have satisfied the service-based and liquidity-based vesting conditions in connection with this offering,

before giving effect the RSU Net Settlement; and (iv) an additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares that may be acquired upon

the settlement of outstanding RSUs within 60 days of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026.

(9)Represents (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Alpha Wave Ventures II, LP ("Alpha Wave

Ventures"); (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Alpha Wave Holdings, LP ("Alpha Wave

Holdings"); and (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Falcon Q LP ("Falcon Q," and together

with Alpha Wave Ventures and Alpha Wave Holdings, "Alpha Wave"). Alpha Wave Ventures GP, Ltd ("Alpha

Wave Ventures GP") is the general partner of Alpha Wave Ventures and may be deemed to exercise voting and

dispositive control over the shares held by Alpha Wave Ventures. Alpha Wave Ventures GP is a joint venture

between Alpha Wave Global, LP ("Alpha Wave Global") and Lunate Capital Holding RSC LTD ("Lunate").

Lunate is majority owned by Chimera Investment LLC ("Chimera"). Chimera is controlled by its board of

directors. The managing partners of Lunate Capital Limited, a wholly owned investment manager subsidiary of

Lunate, manage the investment activities of Lunate. Richard Gerson is the Chairman and Chief Investment

Officer of Alpha Wave Global. Alpha Wave Global is the Investment Manager for Alpha Wave Holdings and

Falcon Q. Mr. Gerson therefore may be deemed to exercise voting and dispositive control over the shares held

by the entities affiliated with Alpha Wave. The address for all entities affiliated with Alpha Wave is c/o Alpha

Wave Global, LP, 667 Madison Ave, 19th Floor, New York, New York 10065. The address for Lunate is Unit

No. 1, Floor 8, 9, 10, 11, 12, Al Maryah Tower, Abu Dhabi Global Market Square, Al Maryah Island, Abu

Dhabi, United Arab Emirates.

(10)Represents (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Benchmark Capital Partners VIII, L.P. ("BCP

VIII"), for itself and as nominee for Benchmark Founders' Fund VIII, L.P. ("BFF VIII") and Benchmark

Founders' Fund VIII-B, L.P. ("BFF VIII-B") and (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by

Benchmark Capital Partners IX, L.P. ("BCP IX"), for itself and as nominee for Benchmark Founders' Fund IX,

L.P. ("BFF IX"), Benchmark Founders' Fund IX-A, L.P. ("BFF IX-A"), and Benchmark Founders' Fund IX-B,

L.P. ("BFF IX-B"). Benchmark Capital Management Co. VIII, L.L.C. ("BCMC VIII") is the general partner of

each of BCP VIII, BFF VIII, and BFF VIII-B and may be deemed to have sole voting and investment power

with respect to the shares held by BCP VIII. Mr. Vishria, a member of our board of directors, Matthew R.

Cohler, Peter H. Fenton, J. William Gurley, An-Yen Hu, Mitchell H. Lasky, and Chetan Puttagunta are the

managing members of BCMC VIII. Benchmark Capital Management Co. IX, L.L.C. ("BCMC IX") is the

general partner of each of BCP IX, BFF IX, BFF IXA, and BFF IX-B and may be deemed to have sole voting

and investment power with respect to the shares held by BCP IX. Mr. Vishria, a member of our board of

directors, Peter H. Fenton, J. William Gurley, An-Yen Hu, and Chetan Puttagunta are the managing members of

BCMC IX. The address for all entities affiliated with Benchmark is 2965 Woodside Road, Woodside, California

94062. (11)Represents (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Eclipse Continuity Fund I, L.P. ("Eclipse

Continuity Fund"); (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Eclipse SPV II, L.P. ("Eclipse SPV

II"); (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Eclipse SPV XIII, L.P. ("Eclipse SPV XIII"); and

(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Eclipse Ventures Fund I, L.P. ("Eclipse Fund," and

together with Eclipse Continuity Fund, Eclipse SPV II, and Eclipse SPV XIII, "Eclipse Entities"). Mr. Susan is

the sole managing member of the general partner of each of the Eclipse Entities and may be deemed to have

voting, investment, and dispositive power with respect to the shares held by such entities. The address for the

Eclipse Entities is 514 High Street, Palo Alto, California 94301.

(12)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

(13)Represents (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Foundation Capital Leadership Fund II, L.P.

("Foundation Leadership Fund"); (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by Foundation Capital

VIII Principals Fund, LLC ("Foundation Capital VIII Principals"); and (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A

common stock held by Foundation Capital VIII, L.P. ("Foundation Capital VIII," and together with Foundation

Leadership Fund and Foundation Capital VIII Principals, "Foundation Capital"). Foundation Capital

Management Co. VIII, L.L.C. is the General Partner of Foundation Capital VIII and the Manager of Foundation

Capital VIII Principals and has sole voting and investment power. Ashu Garg, Paul R. Holland, Charles P.

Moldow, and Steven P. Vassallo are the Managers of Foundation Capital Management Co. VIII, L.L.C. and

share such powers. Foundation Capital Management Co. LF II, L.L.C. is the General Partner of Foundation

Capital Leadership Fund and has sole voting and investment power. Ashu Garg, Charles P. Moldow, and Steven

P. Vassallo are the Managers of Foundation Capital Management Co. LF II, L.L.C. and share such powers. The

address for all entities affiliated with the Foundation Capital is 550 High Street, 3rd Floor, Palo Alto, California

94301. 155

**DESCRIPTION OF CAPITAL STOCK**

*The following summary describes our capital stock and certain provisions of our amended and restated*

*certificate of incorporation and our amended and restated bylaws, which will become effective immediately prior to*

*the completion of this offering, the amended and restated investors' rights agreement to which we and certain of our*

*stockholders are parties, and of the Delaware General Corporation Law. Because the following is only a summary,*

*it does not contain all of the information that may be important to you. For a complete description, you should refer*

*to our amended and restated certificate of incorporation, amended and restated bylaws, and amended and restated*

*investors' rights agreement, copies of which are filed as exhibits to the registration statement of which this*

*prospectus is part.*

**General**

Immediately following the completion of this offering, our authorized capital stock will consist of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock, par value $0.00001 per share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class N common stock,

par value $0.00001 per share, and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of undesignated preferred stock, par value $0.00001 per share.

As of December 31, 2025, after giving effect to (i) the filing and effectiveness of our amended and restated

certificate of incorporation, (ii) the Preferred Stock Conversion, (iii) the Option Exercise, and (iv) the RSU Net

Settlement, there were &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock outstanding, held by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; stockholders of

record, and no shares of our Class N common stock or preferred stock outstanding.

**Common Stock**

We have two classes of authorized common stock: Class A common stock and Class N common stock. The

rights of holders of Class A common stock and Class N common stock are identical, except with respect to voting

and conversion rights.

***Voting Rights***

Each holder of our Class A common stock is entitled to one vote per share and each holder of our Class N

common stock is entitled to no votes per share. The holders of our Class A common stock will generally vote as a

single class on all matters submitted to a vote of our stockholders, unless otherwise required by Delaware law or our

amended and restated certificate of incorporation. Delaware law could require either holders of our Class A common

stock or Class N common stock to vote separately as a single class in the following circumstances:

• if we were to seek to amend our amended and restated certificate of incorporation to increase or decrease

the par value of a class of our capital stock, then that class would be required to vote separately to approve

the proposed amendment; and

• if we were to seek to amend our amended and restated certificate of incorporation in a manner that alters or

changes the powers, preferences, or special rights of a class of our capital stock in a manner that affected its

holders adversely, then that class would be required to vote separately to approve the proposed amendment.

Our amended and restated certificate of incorporation does not provide for cumulative voting for the election of

directors. As a result, the holders of a majority of shares of our Class A common stock can elect all of the directors

then standing for election. Our amended and restated certificate of incorporation establishes a classified board of

directors, to be divided into three classes with staggered three-year terms. Only one class of directors will be elected

at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective

three-year terms.

***Conversion Rights***

***Class N Common Stock***

Each share of Class N common stock will convert automatically into one share of Class A common stock upon

any transfer, whether or not for value, except for certain permitted transfers, as set forth in our amended and restated

certificate of incorporation. Permitted transferees include entities under common control with or controlled by such

holder of our Class N common stock or if the holder provides prior written notice to us electing for the transfer to

not result in a conversion. Once converted into Class A common stock, the Class N common stock will not be

reissued.

***Dividends***

Subject to preferences that may be applicable to any then outstanding preferred stock, holders of our common

stock are entitled to receive dividends as may be declared from time to time by our board of directors out of legally

available funds; provided, however, that if a dividend is paid in the form of common stock (or rights to acquire, or

securities convertible into or exchangeable for, such shares), then the holders of the Class A common stock shall

receive shares of Class A common stock (or rights to acquire, or securities convertible into or exchangeable for, such

shares, as the case may be) and holders of Class N common stock shall receive shares of Class N common stock (or

rights to acquire, or securities convertible into or exchangeable for, such shares, as the case may be), unless a

disparate dividend treatment of the shares of each such class is approved by the affirmative vote of the holders of a

majority of the then-outstanding shares of Class A common stock and Class N common stock, each voting

separately as a class.

***Right to Receive Liquidation Distributions***

In the event of our liquidation, dissolution, or winding up, holders of our common stock will be entitled to share

ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and

other liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any then

outstanding shares of preferred stock.

***No Preemptive or Similar Rights***

Our common stock is not entitled to preemptive rights and is not subject to redemption or sinking fund

provisions. The rights, preferences, and privileges of the holders of our common stock will be subject to, and may be

adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate in

the future.

**Preferred Stock**

Pursuant to the provisions of our amended and restated certificate of incorporation, each currently outstanding

share of redeemable convertible preferred stock will automatically be converted into one share of common stock

effective upon the completion of this offering. Following this offering, no shares of redeemable convertible

preferred stock will be outstanding.

Following the completion of this offering, our board of directors will be authorized, subject to limitations

prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number

of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of

each series and any of its qualifications, limitations, or restrictions, in each case without further vote or action by our

stockholders. Our board of directors can also increase or decrease the number of shares of any series of preferred

stock, but not below the number of shares of that series then outstanding, without any further vote or action by our

stockholders. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights

that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of

preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes,

could, among other things, have the effect of delaying, deferring, or preventing a change in control of our company

and might adversely affect the price of our common stock and the voting and other rights of the holders of our

common stock. We have no current plans to issue any shares of preferred stock.

**Stock Options**

As of December 31, 2025, we had outstanding options to purchase an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our

Class A common stock, with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, issued pursuant to the 2016

Plan.

In connection with the Option Exercise, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock will be cash exercised,

with a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share.

**Restricted Stock Units**

As of December 31, 2025, we had outstanding RSUs representing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock,

issuable upon satisfaction of service-based and liquidity-based vesting conditions and issued pursuant to the 2016

Plan.

In connection with the RSU Net Settlement, we will issue &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock, after

withholding an aggregate of an estimated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock, to satisfy associated estimated

tax withholding and remittance obligations.

**Registration Rights**

Following the completion of this offering, and subject to the lock-up agreements entered into in connection with

this offering and market standoff agreements, the holders of an aggregate of up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A

common stock and their permitted transferees will be entitled to rights with respect to the registration of these shares

under the Securities Act. These rights are provided under the terms of an amended and restated investors' rights

agreement between us and the holders of these shares, which was entered into in connection with our redeemable

convertible preferred stock financings, and include Form S-1 and Form S-3 demand registration rights and

piggyback registration rights. In any registration made pursuant to such amended and restated investors' rights

agreement, all fees, costs, and expenses of underwritten registrations will be borne by us and all selling expenses,

including all underwriting discounts, selling commissions, and stock transfer taxes, will be borne by the holders of

the shares being registered. We will not be required to bear the expenses in connection with the exercise of the

demand registration rights of a registration if the request is subsequently withdrawn at the request of the selling

stockholders holding a majority of securities to be registered. In an underwritten public offering, the underwriters

have the right, subject to specified conditions, to limit the number of shares such holders may include.

The registration rights terminate (i) upon a deemed liquidation event or stock sale, each as defined in the

amended and restated investors' rights agreement, (ii) five years following the completion of this offering, or (iii) at

such time as any particular stockholder may sell all of its shares during any 90-day period pursuant to Rule 144 or

another similar exemption under the Securities Act.

***Form S-1 Demand Registration Rights***

The holders of an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock, or their permitted transferees,

are entitled to Form S-1 demand registration rights. Under the terms of the amended and restated investors' rights

agreement, at any time beginning 180 days after the effective date of the registration statement of which this

prospectus forms a part, the holders representing a majority of the then-outstanding shares that are entitled to

registration rights can request that we file a registration statement on Form S-1 covering all or some of their shares

as soon as practicable, and in any event within 90 days after the date of such request, if the aggregate price to the

public of the shares offered is at least $25.0 million (net of underwriting discounts, selling commissions, and stock

transfer taxes). We may be required to effect up to two registrations pursuant to this provision of the amended and

restated investors' rights agreement. We may postpone the filing of a registration statement once for up to 90 days in

a 12-month period if our board of directors determines that the filing would be materially detrimental to us. We are

not required to effect a Form S-1 demand registration under certain additional circumstances specified in the

amended and restated investors' rights agreement, including during the period beginning 60 days prior to our good

faith estimate of the date of filing and ending on a date 180 days after the effective date of a registration statement

filed by our initiation.

***Form S-3 Demand Registration Rights***

The holders of an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock, or their permitted transferees,

are also entitled to Form S-3 demand registration rights. Under the terms of the amended and restated investors'

rights agreement, at any time once we are eligible to file a registration statement on Form S-3, the holders

representing a majority of the then-outstanding shares that are entitled to registration rights can request that we file a

registration statement on Form S-3 covering all or some of their shares, as soon as practicable, and in any event

within 45 days of such request, if the aggregate price to the public of the shares offered is at least $5.0 million (net

of underwriting discounts, selling commissions, and stock transfer taxes). The holders may only require us to effect

at most two registration statements on Form S-3 in any 12-month period. We may postpone the filing of a

registration statement once for up to 90 days in a 12-month period if our board of directors determines that the filing

would be materially detrimental to us. We are not required to effect a Form S-3 registration under certain additional

circumstances specified in the amended and restated investors' rights agreement, including during the period

beginning 30 days prior to our good faith estimate of the date of filing and ending on a date 90 days after the

effective date of a registration statement filed by our initiation.

***Piggyback Registration Rights***

If we register any of our securities for public sale, holders of an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A

common stock entitled to registration rights, or their permitted transferees, will have the right to include their shares

in the registration statement. However, this right does not apply to a registration relating to the sale of securities

pursuant to any company stock plan, a registration relating to an SEC Rule 145 transaction, a registration on any

form that does not include substantially the same information as would be required to be included in a registration

statement covering the sale of the common stock, or a registration in which the only common stock being registered

is common stock issuable upon conversion of debt securities that are also being registered. The underwriters of any

underwritten offering will have the right to limit the number of shares registered by these holders if they determine

that marketing factors require limitation, in which case the number of shares to be registered will be apportioned pro

rata among these holders, according to the total amount of securities entitled to be included by each holder.

However, the number of shares to be registered by these holders cannot be reduced unless all other securities of such

holders are first entirely excluded from the underwriting.

**Anti-Takeover Provisions**

Certain provisions of Delaware law, our amended and restated certificate of incorporation and our amended and

restated bylaws, which will become effective immediately prior to the completion of this offering, which are

summarized below, may have the effect of delaying, deferring, or discouraging another person from acquiring

control of us. They are also designed, in part, to encourage persons seeking to acquire control of us to negotiate first

with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate

with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us

because negotiation of these proposals could result in an improvement of their terms.

***Delaware Law***

We are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware

corporation from engaging in any business combination with any interested stockholder for a period of three years

after the date that such stockholder became an interested stockholder, with the following exceptions:

• the business combination or transaction which resulted in the stockholder becoming an interested

stockholder was approved by the board of directors prior to the time that the stockholder became an

interested stockholder;

• upon consummation of the transaction which resulted in the stockholder becoming an interested

stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation

outstanding at the time the transaction commenced, excluding shares owned by directors who are also

officers of the corporation and shares owned by employee stock plans in which employee participants do

not have the right to determine confidentially whether shares held subject to the plan will be tendered in a

tender or exchange offer; or

• at or subsequent to the time the stockholder became an interested stockholder, the business combination

was approved by the board of directors and authorized at an annual or special meeting of the stockholders,

and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock

which is not owned by the interested stockholder.

In general, Section 203 defines a "business combination" to include mergers, asset sales and other transactions

resulting in financial benefit to a stockholder and an "interested stockholder" as a person who, together with

affiliates and associates, owns, or within three years did own, 15% or more of the corporation's outstanding voting

stock. These provisions may have the effect of delaying, deferring, or preventing changes in control of our company.

***Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws***

Our amended and restated certificate of incorporation and our amended and restated bylaws, which will become

effective immediately prior to the completion of this offering, will include a number of provisions that could deter

hostile takeovers or delay or prevent changes in control of our board of directors or management team, including the

following:

***Classified Board***

Our amended and restated certificate of incorporation will further provide that our board of directors is divided

into three classes, Class I, Class II, and Class III, with each class serving staggered three-year terms. In addition,

directors may only be removed from the board of directors for cause. The existence of a classified board could delay

a potential acquirer from obtaining majority control of our board of directors, and the prospect of that delay might

deter a potential acquirer. See the section titled "Management—Board Structure and Composition" for additional

information.

***Board of Directors Vacancies***

Our amended and restated certificate of incorporation and our amended and restated bylaws will authorize only

our board of directors to fill vacant directorships, including newly created seats. In addition, the number of directors

constituting our board of directors will be permitted to be set only by a resolution adopted by a majority vote of our

entire board of directors. These provisions would prevent a stockholder from increasing the size of our board of

directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees.

This will make it more difficult to change the composition of our board of directors and will promote continuity of

management.

***Stockholder Action; Special Meeting of Stockholders***

Our amended and restated certificate of incorporation will provide that our stockholders may not take action by

written consent, but may only take action at annual or special meetings of our stockholders. As a result, a holder

controlling a majority of our capital stock would not be able to amend our amended and restated bylaws or remove

directors without holding a meeting of our stockholders called in accordance with our amended and restated bylaws.

Our amended and restated certificate of incorporation will further provide that special meetings of our stockholders

may be called only by a majority of our board of directors, the chairperson of our board of directors, our Chief

Executive Officer, or our President, thus prohibiting a stockholder from calling a special meeting. These provisions

might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a

majority of our capital stock to take any action, including the removal of directors.

***Advance Notice Requirements for Stockholder Proposals and Director Nominations***

Our amended and restated bylaws will provide advance notice procedures for stockholders seeking to bring

business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual

meeting of stockholders. Our amended and restated bylaws will also specify certain requirements regarding the form

and content of a stockholder's notice. These provisions might preclude our stockholders from bringing matters

before our annual meeting of stockholders or from making nominations for directors at our annual meeting of

stockholders if the proper procedures are not followed. We expect that these provisions may also discourage or deter

a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or

otherwise attempting to obtain control of our company.

***No Cumulative Voting***

The Delaware General Corporation Law provides that stockholders are not entitled to cumulate votes in the

election of directors unless a corporation's certificate of incorporation provides otherwise. Our amended and restated

certificate of incorporation will not provide for cumulative voting.

***Amendment of Charter and Bylaws Provisions***

Amendments to our amended and restated certificate of incorporation will require the approval of 66 2/3% of

the outstanding voting power of our common stock. Our amended and restated bylaws will provide that approval of

stockholders holding 66 2/3% of our outstanding voting power voting as a single class is required for stockholders to

amend or adopt any provision of our bylaws. In addition, amendments to our amended and restated certificate of

incorporation or our amended and restated bylaws that amend, alter, change, adopt, or repeal any provision in a

manner that modifies the voting, conversion, or other powers, preferences, or other special rights or privileges, or

restrictions of the Class N common stock will require the approval of a majority of the then-outstanding shares of

Class N common stock, voting as a separate class.

***Issuance of Undesignated Preferred Stock***

Our board of directors will have the authority, without further action by our stockholders, to issue up

to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of undesignated preferred stock with rights and preferences, including voting rights, designated

from time to time by our board of directors. The existence of authorized but unissued shares of preferred stock

would enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by

means of a merger, tender offer, proxy contest, or other means.

***Choice of Forum***

Our amended and restated certificate of incorporation and amended and restated bylaws will provide that, unless

we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be

the exclusive forum for the following types of actions or proceedings under Delaware statutory or common law: any

derivative action or proceeding brought on our behalf; any action asserting a claim of breach of fiduciary duty owed

by any of our directors, officers or stockholders to us or to our stockholders; any action asserting a claim against us

arising pursuant to the Delaware General Corporation Law, our amended and restated certificate of incorporation or

our amended and restated bylaws (as either may be amended from time to time); or any action asserting a claim

against us that is governed by the internal affairs doctrine. As a result, any action brought by any of our stockholders

with regard to any of these matters will need to be filed in the Court of Chancery of the State of Delaware and

cannot be filed in any other jurisdiction; provided that, the exclusive forum provision will not apply to suits brought

to enforce any liability or duty created solely by the Exchange Act or any other claim for which the federal courts

have exclusive jurisdiction; and provided further that, if and only if the Court of Chancery of the State of Delaware

dismisses any such action for lack of subject matter jurisdiction, such action may be brought in another state or

federal court sitting in the State of Delaware. Our amended and restated certificate of incorporation and amended

and restated bylaws will also provide that the federal district courts of the United States of America will be the

exclusive forum for the resolution of any complaint asserting a cause or causes of action against us or any defendant

arising under the Securities Act. Such provision is intended to benefit and may be enforced by us, our officers and

directors, employees, and agents, including the underwriters and any other professional or entity who has prepared

or certified any part of this prospectus. Nothing in our amended and restated certificate of incorporation and

amended and restated bylaws preclude stockholders that assert claims under the Exchange Act from bringing such

claims in state or federal court, subject to applicable law.

If any action the subject matter of which is within the scope described above is filed in a court other than a court

located within the State of Delaware (a "Foreign Action"), in the name of any stockholder, such stockholder shall be

deemed to have consented to the personal jurisdiction of the state and federal courts located within the State of

Delaware in connection with any action brought in any such court to enforce the applicable provisions of our

amended and restated certificate of incorporation and amended and restated bylaws and having service of process

made upon such stockholder in any such action by service upon such stockholder's counsel in the Foreign Action as

agent for such stockholder. Although our amended and restated certificate of incorporation and amended and

restated bylaws will contain the choice of forum provision described above, it is possible that a court could find that

such a provision is inapplicable for a particular claim or action or that such provision is unenforceable.

This choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that it finds

favorable for disputes with us or any of our directors, officers, other employees or stockholders, which may

discourage lawsuits with respect to such claims or make such lawsuits more costly for stockholders, although our

stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and

regulations thereunder.

**Limitations on Liability and Indemnification Matters**

Our amended and restated certificate of incorporation will limit the liability of our directors and officers to the

fullest extent permitted by the Delaware General Corporation Law, and our amended and restated bylaws will

provide that we will indemnify them to the fullest extent permitted by such law. We expect to enter into

indemnification agreements with our current directors and executive officers prior to the completion of this offering

and expect to enter into a similar agreement with any new directors or executive officers. Further, pursuant to our

indemnification agreements and directors' and officers' liability insurance, our directors and executive officers will

be indemnified and insured against the cost of defense, settlement, or payment of a judgment under certain

circumstances. In addition, as permitted by Delaware law, our amended and restated certificate of incorporation will

include provisions that eliminate the personal liability of our directors and executive officers for monetary damages

resulting from breaches of certain fiduciary duties as a director or officer. The effect of this provision is to restrict

our rights and the rights of our stockholders in derivative suits to recover monetary damages against a director or

officer for breach of fiduciary duties as a director or officer.

These provisions may be held not to be enforceable for violations of the federal securities laws of the

United States.

**Listing**

We have applied to list our Class A common stock on the Nasdaq Global Market under the symbol "CBRS."

**Transfer Agent and Registrar**

The transfer agent and registrar for our Class A common stock and Class N common stock will

be Computershare Trust Company, N.A. The address of the transfer agent and registrar is 250 Royall Street, Canton,

Massachusetts 02021.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there has been no public market for our common stock. Future sales of substantial

amounts of our Class A common stock in the public market could adversely affect market prices prevailing from

time to time. Furthermore, because only a limited number of shares will be available for sale shortly after this

offering due to existing contractual and legal restrictions on resale as described below, there may be sales of

substantial amounts of our Class A common stock in the public market after the restrictions lapse. This may

adversely affect the prevailing market price and our ability to raise equity capital in the future.

Upon the completion of this offering, based on the number of shares of our capital stock outstanding as of

December 31, 2025, we will have an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our Class A common stock and no shares of

our Class N common stock outstanding, after giving effect to (i) the filing and effectiveness of our amended and

restated certificate of incorporation, which will occur immediately prior to the completion of this offering; (ii) the

Preferred Stock Conversion; (iii) the Option Exercise; and (iv) the RSU Net Settlement, and assuming no exercise of

any additional options or settlement of additional RSUs subsequent to December 31, 2025; and assuming no

exercise of the underwriters' over-allotment option to purchase additional shares from us.

Of these shares, all of the shares of Class A common stock sold in this offering by us or the selling stockholders,

plus any shares sold by us, if any, upon exercise of the underwriters' over-allotment option, will be freely tradable

without restrictions or further registration under the Securities Act, except for any shares purchased by our

"affiliates," as that term is defined in Rule 144 under the Securities Act, whose sales would be subject to the

Rule 144 resale restrictions described below, other than the holding period requirement.

The remaining shares of Class A common stock and shares of Class A common stock subject to stock options

will be on issuance deemed "restricted securities," as that term is defined in Rule 144 under the Securities Act.

These restricted securities are eligible for public sale only if they are registered under the Securities Act or if they

qualify for an exemption from registration under Rules 144 or 701 under the Securities Act, which are summarized

below.

We expect that substantially all of these shares will be subject to the lock-up period under the lock-up

agreements and market standoff agreements described below. Upon the expiration of the lock-up period, we estimate

that approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares will be available for sale in the public market, subject in some cases to

applicable volume limitations under Rule 144.

**Rule 144**

In general, a person who has beneficially owned restricted shares of our common stock for at least six months

would be entitled to sell such securities, provided that (i) such person is not deemed to have been one of our

affiliates at the time of, or at any time during the 90 days preceding, a sale; and (ii) we are subject to the Exchange

Act periodic reporting requirements for at least 90 days before the sale. Persons who have beneficially owned

restricted shares of our common stock for at least six months but who are our affiliates at the time of, or any time

during the 90 days preceding, a sale, would be subject to additional restrictions, by which such person would be

entitled to sell within any three-month period only a number of securities that does not exceed the greater of either of

the following:

• 1% of the number of shares of our Class A common stock then outstanding, which will equal

approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares immediately after this offering, assuming no exercise of the underwriters'

over-allotment option; or

• the average weekly trading volume of shares of our Class A common stock on the Nasdaq Global Market

during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that sale;

provided, in each case, that we are subject to the Exchange Act periodic reporting requirements for at least 90

days before the sale. Such sales both by affiliates and by non-affiliates must also comply with the manner of sale,

current public information and notice provisions of Rule 144 to the extent applicable.

**Rule 701**

In general, under Rule 701 as currently in effect, any of our employees, directors, officers, consultants, or

advisors who acquired common stock from us in connection with a written compensatory stock or option plan or

other written agreement in compliance with Rule 701 before the effective date of the registration statement of which

this prospectus is a part (to the extent such common stock is not subject to a lock-up agreement) and who are not our

"affiliates" as defined in Rule 144 during the immediately preceding 90 days, is entitled to rely on Rule 701 to resell

such shares beginning 90 days after the date of this prospectus in reliance on Rule 144, but without complying with

the notice, manner of sale, public information requirements or volume limitation provisions of Rule 144. Persons

who are our "affiliates" may resell those shares beginning 90 days after the date of this prospectus without

compliance with minimum holding period requirements under Rule 144 (subject to the terms of the lock-

up agreement referred to below, if applicable).

**Lock-Up and Market Standoff Agreements**

In connection with this offering, we, our executive officers and directors, the selling stockholders, and certain

other record holders that together represent approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our Class A common stock, stock options, and

other securities convertible into, exercisable, or exchangeable for our Class A common stock have entered into or

will enter into lock-up agreements with the underwriters pursuant to which we and they have agreed to not, among

other things and subject to certain exceptions, offer, sell, contract to sell, pledge, or otherwise dispose of, (or enter

into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by

actual disposition or effective economic disposition due to cash settlement or otherwise) any shares of Class A

common stock or securities convertible into or exchangeable for shares of our Class A common stock during the

period from the date of this prospectus continuing through the date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days after the date of this prospectus (the

"Lock-up Period").

Furthermore, (i) an additional approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding Class A common stock and securities

directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to

the market standoff provisions in our amended and restated investors' rights agreement, pursuant to which such

holders agreed to not lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any

option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly

or indirectly, any shares of our Class A common stock or any securities convertible into or exercisable or

exchangeable for our Class A common stock held immediately prior to the effectiveness of this registration

statement, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the

economic consequences of ownership of such securities during the Lock-up Period and (ii) an additional

approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding Class A common stock and securities directly or indirectly convertible

into or exchangeable or exercisable for our Class A common stock are subject to restrictions contained in market

standoff agreements with us that include restrictions on the sale, transfer, or other disposition of shares during the

Lock-up Period. The forms and specific restrictive provisions within these market standoff provisions vary among

security holders. For example, although some of these market standoff agreements do not specifically restrict

hedging transactions and others may be subject to different interpretations between us and security holders as to

whether they restrict hedging, our insider trading policy prohibits hedging by all of our current directors, officers,

employees, contractors, and consultants. Sales, short sales, or hedging transactions involving our equity securities,

whether before or after this offering and whether or not we believe them to be prohibited, could adversely affect the

price of our Class A common stock.

As a result of the foregoing, substantially all of our outstanding shares of Class A common stock and securities

directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to a

lock-up agreement or market standoff provisions during the Lock-up Period. We have agreed to enforce all such

market standoff restrictions on behalf of the underwriters and not to amend or waive any such market standoff

provisions during the Lock-up Period without the prior consent of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , on behalf of the

underwriters, provided that we may release shares from such restrictions to the extent such shares would be entitled

to release under the form of lock-up agreement with the underwriters signed by our directors and executive officers,

the selling stockholders, and certain other record holders of our securities as described herein.

See the section titled "Underwriters" for information about exceptions to the lock-up agreements and market

standoff agreements described above and a further description of these agreements. Upon the expiration of the Lock-

up Period, substantially all of the securities subject to such transfer restrictions will become eligible for sale, subject

to the limitations discussed above.

**Registration Rights**

We have granted Form S-1 and Form S-3 demand and piggyback registration rights to certain of our

stockholders. Registration of the sale of these shares under the Securities Act would result in these shares becoming

freely tradable without restriction under the Securities Act immediately upon the effectiveness of the registration,

except for shares purchased by affiliates. See the section titled "Description of Capital Stock—Registration Rights"

for additional information.

**Equity Incentive Plans**

We intend to file with the SEC one or more registration statements on Form S-8 under the Securities Act to

register all of the shares of our Class A common stock issuable or issuable and reserved for issuance under the 2016

Plan, the 2026 Plan, and the ESPP. Shares covered by such registration statement will be eligible for sale in the

public market, subject to the Rule 144 limitations, vesting restrictions, and the lock-up agreements described above,

if applicable.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS**

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S.

Holders (as defined below) of the purchase, ownership, and disposition of our Class A common stock issued

pursuant to this offering, but does not purport to be a complete analysis of all potential tax effects. The effects of

other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local, or non-U.S. tax laws are

not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"),

Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative

pronouncements of the U.S. Internal Revenue Service (the "IRS"), in each case in effect as of the date hereof. These

authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be

applied retroactively in a manner that could adversely affect a Non-U.S. Holder of our Class A common stock. We

have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no

assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences

of the purchase, ownership, and disposition of our Class A common stock.

This discussion is limited to Non-U.S. Holders that hold our Class A common stock as a "capital asset" within

the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address

all U.S. federal income tax consequences relevant to a Non-U.S. Holder's particular circumstances, including the

impact of the Medicare contribution tax on net investment income and the alternative minimum tax. In addition, it

does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

• U.S. expatriates and former citizens or long-term residents of the United States;

• persons holding our Class A common stock as part of a hedge, straddle, or other risk reduction strategy or

as part of a conversion transaction or other integrated investment;

• banks, insurance companies, and other financial institutions;

• brokers, dealers, or traders in securities;

• "controlled foreign corporations," "foreign controlled foreign corporations," "passive foreign investment

companies," and corporations that accumulate earnings to avoid U.S. federal income tax;

• partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes

(and investors therein);

• tax-exempt organizations or governmental organizations;

• persons deemed to sell our Class A common stock under the constructive sale provisions of the Code;

• persons who hold or receive our Class A common stock pursuant to the exercise of any employee stock

option or otherwise as compensation;

• tax-qualified retirement plans; and

• "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests

of which are held by qualified foreign pension funds.

If an entity treated as a partnership for U.S. federal income tax purposes holds our Class A common stock, the

tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership,

and certain determinations made at the partner level. Accordingly, partnerships holding our Class A common stock

and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax

consequences to them.

**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE.**

**INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION**

**OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS**

**ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP, AND DISPOSITION OF OUR**

**CLASS A COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR**

**UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER**

**ANY APPLICABLE INCOME TAX TREATY.**

**Definition of a Non-U.S. Holder** 

For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our Class A common stock that

is neither a "U.S. person" nor an entity treated as a partnership for U.S. federal income tax purposes. A U.S. person

is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

• an individual who is a citizen or resident of the United States;

• a corporation created or organized under the laws of the United States, any state thereof, or the District of

Columbia;

• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

• a trust that (i) is subject to the primary supervision of a U.S. court and all substantial decisions of which are

subject to the control of one or more "United States persons" (within the meaning of Section 7701(a)(30) of

the Code), or (ii) has a valid election in effect to be treated as a United States person for U.S. federal

income tax purposes.

**Distributions** 

As described in the section titled "Dividend Policy," we do not anticipate declaring or paying any cash

dividends in the foreseeable future. However, if we do make distributions of cash or property on our Class A

common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid

from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.

Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and first be

applied against and reduce a Non-U.S. Holder's adjusted tax basis in its Class A common stock, but not below zero.

Any excess will be treated as capital gain and will be treated as described under the subsection titled "—Sale or

Other Taxable Disposition" below.

Subject to the discussion below regarding effectively connected income, dividends paid to a Non-U.S. Holder

will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower

rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS

Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate).

A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty

rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the

IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable

tax treaties.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade

or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder

maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S.

Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S.

Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are

effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the

regular rates applicable to U.S. persons. A Non-U.S. Holder that is a corporation also may be subject to a branch

profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively

connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any

applicable tax treaties that may provide for different rules.

**Sale or Other Taxable Disposition** 

A Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other

taxable disposition of our Class A common stock unless:

• the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the

United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a

permanent establishment in the United States to which such gain is attributable);

• the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more

during the taxable year of the disposition and certain other requirements are met; or

• our Class A common stock constitutes a U.S. real property interest ("USRPI") by reason of our status as a

U.S. real property holding corporation ("USRPHC") for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net

income basis at the regular rates applicable to U.S. persons. A Non-U.S. Holder that is a corporation also may be

subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on

such effectively connected gain, as adjusted for certain items.

A Non-U.S. Holder described in the second bullet point above will be subject to U.S. federal income tax at a

rate of 30% (or such lower rate specified by an applicable income tax treaty) on gain realized upon the sale or other

taxable disposition of our Class A common stock, which may be offset by certain U.S. source capital losses of the

Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-

U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe we currently are not, and do not anticipate becoming, a

USRPHC. Because the determination of whether we are a USRPHC depends, however, on the fair market value of

our USRPIs relative to the fair market value of our non-U.S. real property interests and our other business assets,

there can be no assurance we currently are not a USRPHC or will not become one in the future. Even if we are or

were to become a USRPHC, gain arising from the sale or other taxable disposition of our Class A common stock by

a Non-U.S. Holder will not be subject to U.S. federal income tax if our Class A common stock is "regularly traded,"

as defined by applicable Treasury Regulations, on an established securities market, and such Non-U.S. Holder

owned, actually and constructively, 5% or less of our Class A common stock throughout the shorter of the five-year

period ending on the date of the sale or other taxable disposition or the Non-U.S. Holder's holding period.

Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for

different rules.

**Information Reporting and Backup Withholding** 

Payments of dividends on our Class A common stock will not be subject to backup withholding, provided the

Non-U.S. Holder certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or

W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS

in connection with any distributions on our Class A common stock paid to the Non-U.S. Holder, regardless of

whether such distributions constitute dividends or whether any tax was actually withheld. In addition, proceeds of

the sale or other taxable disposition of our Class A common stock within the United States or conducted through

certain U.S.-related brokers generally will not be subject to backup withholding or information reporting if the

applicable withholding agent receives the certification described above or the Non-U.S. Holder otherwise establishes

an exemption. Proceeds of a disposition of our Class A common stock conducted through a non-U.S. office of a non-

U.S. broker that does not have certain enumerated relationships with the United States generally will not be subject

to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an

applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is

established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be

allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required

information is timely furnished to the IRS.

**Additional Withholding Tax on Payments Made to Foreign Accounts** 

Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (such Sections commonly referred

to as the Foreign Account Tax Compliance Act ("FATCA")) on certain types of payments made to non-U.S.

financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on

dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or

other disposition of, our Class A common stock paid to a "foreign financial institution" or a "non-financial foreign

entity" (each as defined in the Code), unless (i) the foreign financial institution undertakes certain diligence and

reporting obligations, (ii) the non-financial foreign entity either certifies it does not have any "substantial United

States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States

owner, or (iii) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption

from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting

requirements in (i) above, it must enter into an agreement with the U.S. Department of the Treasury requiring,

among other things, that it undertake to identify accounts held by certain "specified United States persons" or

"United States owned foreign entities" (each as defined in the Code), annually report certain information about such

accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other

account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with

the United States governing FATCA may be subject to different rules.

Under applicable Treasury Regulations and administrative guidance, withholding under FATCA generally

applies to payments of dividends on our Class A common stock. While withholding under FATCA would have

applied also to payments of gross proceeds from the sale or other disposition of our Class A common stock

beginning on January 1, 2019, proposed Treasury Regulations eliminate FATCA withholding on payments of gross

proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury

Regulations are issued.

Prospective investors should consult their tax advisors regarding the potential application of withholding under

FATCA to their investment in our Class A common stock.

**UNDERWRITERS**

Under the terms and subject to the conditions in an underwriting agreement to be dated the date of this

prospectus, the underwriters named below, for whom Morgan Stanley & Co. LLC is acting as representative, will

severally agree to purchase, and we and the selling stockholders will agree to sell to them, severally, the number of

shares of our Class A common stock indicated below:

---

| | |
|:---|:---|
| **Name** | **Number of** <br>**Shares**<br>|
| Morgan Stanley & Co. LLC................................................................................................................ |  |
| Citigroup Global Markets Inc.............................................................................................................. |  |
| Barclays Capital Inc............................................................................................................................. |  |
| UBS Securities LLC............................................................................................................................ |  |
| Mizuho Securities USA LLC............................................................................................................... |  |
| TD Securities (USA) LLC................................................................................................................... |  |
| Needham & Company, LLC................................................................................................................ |  |
| Craig-Hallum Capital Group LLC....................................................................................................... |  |
| Wedbush Securities Inc....................................................................................................................... |  |
| Rosenblatt Securities Inc..................................................................................................................... |  |
| Academy Securities, Inc...................................................................................................................... |  |
| Total: .............................................................................................................................................. |  |

---

The underwriters and the representative are collectively referred to as the "underwriters" and the

"representative," respectively. The underwriters are offering the shares of Class A common stock subject to their

acceptance of the shares from us and the selling stockholders, and subject to prior sale. The underwriting agreement

will provide that the obligations of the several underwriters to pay for and accept delivery of the shares of Class A

common stock offered by this prospectus are subject to the approval of certain legal matters by their counsel and to

certain other conditions. The underwriters will be obligated to take and pay for all of the shares of Class A common

stock offered by this prospectus if any such shares are taken. However, the underwriters will not be required to take

or pay for the shares covered by the underwriters' option to purchase additional shares described below.

The underwriters initially propose to offer part of the shares of Class A common stock directly to the public at

the offering price listed on the cover page of this prospectus and part to certain dealers at a price that represents a

concession not in excess of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share under the public offering price. After the initial offering of the shares

of Class A common stock, the offering price and other selling terms may from time to time be varied by the

representative. Sales of any shares of Class A common stock made outside of the United States may be made by

affiliates of the underwriters.

We will grant to the underwriters an option, exercisable for 30 days from the date of this prospectus, to purchase

up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of Class A common stock from us at the public offering price listed on the cover

page of this prospectus, less the underwriting discounts and commissions. The underwriters may exercise this option

solely for the purpose of covering over-allotments, if any, made in connection with the offering of the shares of

Class A common stock offered by this prospectus. To the extent the option is exercised, each underwriter will

become obligated, subject to certain conditions, to purchase about the same percentage of the additional shares of

Class A common stock as the number listed next to the underwriter's name in the preceding table bears to the total

number of shares of Class A common stock listed next to the names of all underwriters in the preceding table.

The following table shows the per share and total public offering price, underwriting discounts and

commissions, and proceeds before expenses to us and the selling stockholders. These amounts are shown assuming

both no exercise and full exercise of the underwriters' option to purchase up to an additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of

Class A common stock from us.

---

| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  | <br>**Per Share** | **No Exercise** | **Full Exercise** |
| Public offering price....................................................................... | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Underwriting discounts and commissions to be paid by us........... | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Underwriting discounts and commissions to be paid by the <br>selling stockholders....................................................................<br>| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Proceeds, before expenses, to us.................................................... | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Proceeds, before expenses, to selling stockholders........................ | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

The estimated offering expenses payable by us, exclusive of the underwriting discounts and commissions, are

approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . We will agree to reimburse the underwriters for expenses relating to clearance of this

offering with the Financial Industry Regulatory Authority up to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

The underwriters have informed us that they do not intend sales to discretionary accounts to exceed 5% of the

total number of shares of Class A common stock offered by them.

We have applied to list our Class A common stock on the Nasdaq Global Market under the symbol "CBRS".

In connection with this offering, we, our executive officers and directors, the selling stockholders, and certain

other record holders that together represent approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our Class A common stock, stock options, and

other securities convertible into, exercisable, or exchangeable for our Class A common stock have entered into or

will enter into lock-up agreements with the underwriters pursuant to which we and they have agreed to not, among

other things and subject to certain exceptions, offer, sell, contract to sell, pledge, or otherwise dispose of, (or enter

into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by

actual disposition or effective economic disposition due to cash settlement or otherwise) any shares of Class A

common stock or securities convertible into or exchangeable for shares of our Class A common stock during the

period from the date of this prospectus continuing through the date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days after the date of this prospectus (the

"Lock-up Period").

Furthermore, (i) an additional approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding Class A common stock and securities

directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to

the market standoff provisions in our amended and restated investors' rights agreement, pursuant to which such

holders agreed to not lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any

option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly

or indirectly, any shares of our Class A common stock or any securities convertible into or exercisable or

exchangeable for our Class A common stock held immediately prior to the effectiveness of this registration

statement, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the

economic consequences of ownership of such securities during the Lock-up Period and (ii) an additional

approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding Class A common stock and securities directly or indirectly convertible

into or exchangeable or exercisable for our Class A common stock are subject to restrictions contained in market

standoff agreements with us that include restrictions on the sale, transfer, or other disposition of shares during the

Lock-up Period. The forms and specific restrictive provisions within these market standoff provisions vary among

security holders. For example, although some of these market standoff agreements do not specifically restrict

hedging transactions and others may be subject to different interpretations between us and security holders as to

whether they restrict hedging, our insider trading policy prohibits hedging by all of our current directors, officers,

employees, contractors, and consultants. Sales, short sales, or hedging transactions involving our equity securities,

whether before or after this offering and whether or not we believe them to be prohibited, could adversely affect the

price of our Class A common stock.

As a result of the foregoing, substantially all of our outstanding shares of Class A common stock and securities

directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to a

lock-up agreement or market standoff provisions during the Lock-up Period. We have agreed to enforce all such

market standoff restrictions on behalf of the underwriters and not to amend or waive any such market standoff

provisions during the Lock-up Period without the prior consent of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , on behalf of the underwriters, provided

that we may release shares from such restrictions to the extent such shares would be entitled to release under the

form of lock-up agreement with the underwriters signed by our directors and executive officers, the selling

stockholders, and certain other record holders of our securities as described herein.

In order to facilitate the offering of our Class A common stock, the underwriters may engage in transactions that

stabilize, maintain, or otherwise affect the price of our Class A common stock. Specifically, the underwriters may

sell more shares than they are obligated to purchase under the underwriting agreement, creating a short position. A

short sale is covered if the short position is no greater than the number of shares available for purchase by the

underwriters under the option to purchase additional shares. The underwriters can close out a covered short sale by

exercising the option to purchase additional shares or purchasing shares in the open market. In determining the

source of shares to close out a covered short sale, the underwriters will consider, among other things, the open

market price of shares compared to the price available under the option to purchase additional shares. The

underwriters may also sell shares in excess of the option to purchase additional shares, creating a naked short

position. The underwriters must close out any naked short position by purchasing shares in the open market. A

naked short position is more likely to be created if the underwriters are concerned that there may be downward

pressure on the price of our Class A common stock in the open market after pricing that could adversely affect

investors who purchase in this offering. As an additional means of facilitating this offering, the underwriters may bid

for, and purchase, shares of Class A common stock in the open market to stabilize the price of our Class A common

stock. These activities may raise or maintain the market price of our Class A common stock above independent

market levels or prevent or retard a decline in the market price of our Class A common stock. The underwriters are

not required to engage in these activities and may end any of these activities at any time.

We, the selling stockholders, and the underwriters will agree to indemnify each other against certain liabilities,

including liabilities under the Securities Act.

A prospectus in electronic format may be made available on websites maintained by one or more underwriters,

or selling group members, if any, participating in this offering. The representative may agree to allocate a number of

shares of Class A common stock to underwriters for sale to their online brokerage account holders. Internet

distributions will be allocated by the representative to underwriters that may make Internet distributions on the same

basis as other allocations.

**Other Relationships**

The underwriters and their respective affiliates are full service financial institutions engaged in various

activities, which may include securities trading, commercial and investment banking, financial advisory, investment

management, investment research, principal investment, hedging, financing, and brokerage activities. Certain of the

underwriters and their respective affiliates have, from time to time, performed, and may in the future perform,

various financial advisory and investment banking services for us, for which they received or will receive customary

fees and expenses.

In addition, in the ordinary course of their various business activities, the underwriters and their respective

affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related

derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of

their customers and may at any time hold long and short positions in such securities and instruments. Such

investment and securities activities may involve our securities and instruments. The underwriters and their

respective affiliates may also make investment recommendations or publish or express independent research views

in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long

or short positions in such securities and instruments.

**Pricing of the Offering**

Prior to this offering, there has been no public market for our Class A common stock. The initial public offering

price will be determined by negotiations between us and the representative. Among the factors considered in

determining the initial public offering price will be our future prospects and those of our industry in general, our

sales, earnings and certain other financial and operating information in recent periods, and the price-earnings ratios,

price-sales ratios, market prices of securities, and certain financial and operating information of companies engaged

in activities similar to ours. Neither we nor the selling stockholders, nor the underwriters, can assure investors that

an active trading market will develop for shares of our Class A common stock, or that the shares will trade in the

public market at or above the initial public offering price.

**Selling Restrictions**

***European Economic Area***

In relation to each Member State of the European Economic Area (each a "Relevant State"), no shares of our

Class A common stock have been offered or will be offered pursuant to the offering to the public in that Relevant

State prior to the publication of a prospectus in relation to the shares of our Class A common stock which has been

approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant

State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus

Regulation, except that offers of shares of our Class A common stock may be made to the public in that Relevant

State at any time under the following exemptions under the Prospectus Regulation:

(a)to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation;

(b)to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the

Prospectus Regulation), subject to obtaining the prior consent of the representative for any such offer; or

(c)in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of shares of our Class A common stock shall require us or any underwriter to

publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to

Article 23 of the Prospectus Regulation, and each person who initially acquires any shares of our Class A common

stock or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with each

of the underwriters and the Company that it is a "qualified investor" within the meaning of Article 2(e) of the

Prospectus Regulation.

In the case of any shares of our Class A common stock being offered to a financial intermediary as that term is

used in Article 5 of the Prospectus Regulation, each such financial intermediary will be deemed to have represented,

acknowledged and agreed that the shares of our Class A common stock acquired by it in the offer have not been

acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale

to, persons in circumstances which may give rise to an offer of any shares of our Class A common stock to the

public other than their offer or resale in a Relevant State to qualified investors as so defined or in circumstances in

which the prior consent of the representative has been obtained to each such proposed offer or resale.

For the purposes of this provision, the expression an "offer to the public" in relation to shares of our Class A

common stock in any Relevant State means the communication in any form and by any means of sufficient

information on the terms of the offer and any shares of our Class A common stock to be offered so as to enable an

investor to decide to purchase or subscribe for any shares of our Class A common stock, and the expression

"Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

***United Kingdom***

No shares of our Class A common stock have been offered or will be offered pursuant to the offering to the

public in the UK prior to the publication of a prospectus in relation to the shares of our Class A common stock

which (i) has been approved by the Financial Conduct Authority or (ii) is to be treated as if it had been approved by

the Financial Conduct Authority in accordance with the transitional provisions in Article 74 (transitional provisions)

of the Prospectus Amendment etc. (EU Exit) Regulations 2019/1234, except that shares of our Class A common

stock may be offered to the public in the UK at any time:

(a)to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation;

(b)to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the

UK Prospectus Regulation), subject to obtaining the prior consent of the representative for any such offer;

or

(c)in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000

("FSMA");

provided that no such offer of shares of our Class A common stock shall require us or any of the underwriters to

publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the

UK Prospectus Regulation. For the purposes of this provision, the expression an "offer to the public" in relation to

the shares of our Class A common stock in the UK means the communication in any form and by any means of

sufficient information on the terms of the offer and any shares of our Class A common stock to be offered so as to

enable an investor to decide to purchase or subscribe for any shares of our Class A common stock, and the

expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by

virtue of the European Union (Withdrawal) Act 2018, as amended by the European Union Withdrawal Agreement

Act 2020.

In addition, in the UK, this document is being distributed only to, and is directed only at, and any offer

subsequently made may only be directed at, persons who are "qualified investors" (as defined in the Prospectus

Regulation) (i) who have professional experience in matters relating to investments falling within Article 19(5) of

the FSMA (Financial Promotion) Order 2005, as amended (the "Order") and/or (ii) who are high net worth

companies (or persons to whom it may otherwise be lawfully communicated) falling within Article 49(2)(a) to (d) of

the Order (all such persons together being referred to as "relevant persons") or otherwise in circumstances which

have not resulted and will not result in an offer to the public of the shares of our Class A common stock in the UK

within the meaning of the FSMA.

Any person in the UK that is not a relevant person should not act or rely on the information included in this

document or use it as basis for taking any action. In the UK, any investment or investment activity that this

document relates to may be made or taken exclusively by relevant persons.

***Hong Kong***

The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are

advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this

document, you should obtain independent professional advice. Shares of our Class A common stock have not been

offered or sold and may not be offered or sold by means of any document other than (i) in circumstances which do

not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous

Provisions) Ordinance (Cap. 32, Laws of Hong Kong), (ii) to "professional investors" as defined in the Securities

and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any rules made thereunder, or (iii) in other

circumstances which do not result in the document being a "prospectus" within the meaning of the Companies

(Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32, Laws of Hong Kong). No advertisement,

invitation, or document relating to shares of our Class A common stock has been or may be issued or has been or

may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere),

which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if

permitted to do so under the laws of Hong Kong) other than with respect to shares of our Class A common stock that

are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as

defined in the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any rules made thereunder.

***Japan***

No registration pursuant to Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan

(Law No. 25 of 1948, as amended) (the "FIEL") has been made or will be made with respect to the solicitation of the

application for the acquisition of the shares of Class A common stock.

Accordingly, the shares of Class A common stock have not been, directly or indirectly, offered or sold and will

not be, directly or indirectly, offered or sold in Japan or to, or for the benefit of, any resident of Japan (which term as

used herein means any person resident in Japan, including any corporation or other entity organized under the laws

of Japan) or to others for re-offering or re-sale, directly or indirectly, in Japan or to, or for the benefit of, any resident

of Japan except pursuant to an exemption from the registration requirements, and otherwise in compliance with, the

FIEL and the other applicable laws and regulations of Japan.

***For Qualified Institutional Investors ("QII")***

Please note that the solicitation for newly issued or secondary securities (each as described in Paragraph 2,

Article 4 of the FIEL) in relation to the shares of Class A common stock constitutes either a "QII only private

placement" or a "QII only secondary distribution" (each as described in Paragraph 1, Article 23-13 of the FIEL).

Disclosure regarding any such solicitation, as is otherwise prescribed in Paragraph 1, Article 4 of the FIEL, has not

been made in relation to the shares of Class A common stock. The shares of Class A common stock may only be

transferred to QIIs.

***For Non-QII Investors***

Please note that the solicitation for newly issued or secondary securities (each as described in Paragraph 2,

Article 4 of the FIEL) in relation to the shares of Class A common stock constitutes either a "small number private

placement" or a "small number private secondary distribution" (each as is described in Paragraph 4, Article 23-13 of

the FIEL). Disclosure regarding any such solicitation, as is otherwise prescribed in Paragraph 1, Article 4 of the

FIEL, has not been made in relation to the shares of Class A common stock. The shares of Class A common stock

may only be transferred en bloc without subdivision to a single investor.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly,

this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription

or purchase, of shares of our Class A common stock may not be circulated or distributed, nor may the shares of our

Class A common stock be offered or sold, or be made the subject of an invitation for subscription or purchase,

whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor pursuant to

Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), (ii) to a relevant person, or

any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275

of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of

the SFA.

Where shares of our Class A common stock are subscribed or purchased under Section 275 by a relevant person

which is:

(a)a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business

of which is to hold investments and the entire share capital of which is owned by one or more individuals,

each of whom is an accredited investor; or

(b)a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each

beneficiary of the trust is an individual who is an accredited investor, securities or securities-based

derivatives contracts (each as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries'

rights and interest in that trust shall not be transferable within six months after that corporation or that trust

has acquired shares of our Class A common stock under Section 275 of the SFA except:

(1)to an institutional investor or to a relevant person, or to any person pursuant to Section 275(1A), and in

accordance with the conditions, specified in Section 275 of the SFA;

(2)where no consideration is or will be given for the transfer;

(3)where the transfer is by operation of law;

(4)as specified in Section 276(7) of the SFA; or

(5)as specified in Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and

Securities based Derivatives Contracts) Regulation 2018.

Solely for purposes of the notification requirements under Section 309B(1)(c) of the SFA, we have determined,

and hereby notify all relevant persons, that the shares are "prescribed capital markets products" (as defined in the

Securities and Futures (Capital Markets Products) Regulations 2018) and Excluded Investment Products (as defined

in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on

Recommendations on Investment Products).

***Dubai International Financial Centre***

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai

Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type

specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person.

The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The

DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no

responsibility for the prospectus. The shares of our Class A common stock to which this prospectus relates may be

illiquid and/or subject to restrictions on their resale. Prospective purchasers of the shares offered should conduct

their own due diligence on the shares. If you do not understand the contents of this prospectus, you should consult an

authorized financial advisor.

***Canada***

Shares of our Class A common stock may be sold only to purchasers purchasing, or deemed to be purchasing, as

principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or

subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National

Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

Any resale of the shares of Class A common stock must be made in accordance with an exemption from, or in a

transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for

rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided

that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the

securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions

of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a

legal advisor.

Pursuant to section 3A.3 (or, in the case of securities issued or guaranteed by the government of a non-Canadian

jurisdiction, section 3A.4) of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are

not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in

connection with this offering.

***Brazil***

The offer and sale of our shares of Class A common stock has not been, and will not be, registered with the

Brazilian Securities Commission, Comissão de Valores Mobiliários ("CVM"), and, therefore, will not be carried out

by any means that would constitute a public offering in Brazil under CVM Resolution No. 160, dated July 13, 2022,

as amended ("CVM Resolution 160") or unauthorized distribution under Brazilian laws and regulations. The shares

of our Class A common stock will be authorized for trading on organized non-Brazilian securities markets and may

only be offered to Brazilian Professional Investors (as defined by applicable CVM regulation), who may only

acquire our shares of Class A common stock through a non-Brazilian account, with settlement outside Brazil in non-

Brazilian currency. The trading of these securities on regulated securities markets in Brazil is prohibited.

***Switzerland***

Shares of our Class A common stock may not be publicly offered in Switzerland and will not be listed on the

SIX Swiss Exchange ("SIX"), or on any other stock exchange or regulated trading facility in Switzerland. This

document does not constitute a prospectus within the meaning of, and has been prepared without regard to the

disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the

disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other

stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or

marketing material relating to the shares of our Class A common stock or the offering may be publicly distributed or

otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, us or the shares of

our Class A common stock have been or will be filed with or approved by any Swiss regulatory authority. In

particular, this document will not be filed with, and the offer of our Class A common stock will not be supervised

by, the Swiss Financial Market Supervisory Authority, and the offer of Class A common stock has not been and will

not be authorized under the Swiss Federal Act on Collective Investment Schemes ("CISA"). The investor protection

afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of

the shares of our Class A common stock.

***Australia***

No placement document, prospectus, product disclosure statement, or other disclosure document has been

lodged with the Australian Securities and Investments Commission in relation to this offering. This prospectus does

not constitute a prospectus, product disclosure statement, or other disclosure document under the Corporations

Act 2001 (the "Corporations Act") and does not purport to include the information required for a prospectus, product

disclosure document statement, or other disclosure document under the Corporations Act.

Any offer in Australia of our Class A common stock may only be made to persons ("Exempt Investors") who

are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional

investors" (within the meaning of section 708(11) of the Corporations Act), or otherwise pursuant to one or more

exemptions contained in section 708 of the Corporations Act so that it is lawful to offer our Class A common stock

without disclosure to investors under Chapter 6D of the Corporations Act.

The Class A common stock applied for by Exempt Investors in Australia must not be offered for sale in

Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where

disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption

under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document

which complies with Chapter 6D of the Corporations Act. Any person acquiring securities must observe such

Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives,

financial situation, or particular needs of any particular person. It does not contain any securities recommendation or

financial product advice. Before making an investment decision, investors need to consider whether the information

in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice

on those matters.

***Israel***

In the State of Israel, this prospectus shall not be regarded as an offer to the public to purchase shares of Class A

common stock under the Israeli Securities Law, 5728—1968, which requires a prospectus to be published and

authorized by the Israel Securities Authority, if it complies with certain provisions of Section 15 of the Israeli

Securities Law, 5728—1968, including, inter alia, if: (i) the offer is made, distributed or directed to not more than

35 investors, subject to certain conditions (the "Addressed Investors"), or (ii) the offer is made, distributed or

directed to certain qualified investors defined in the First Addendum of the Israeli Securities Law, 5728—1968,

subject to certain conditions (the "Qualified Investors"). The Qualified Investors shall not be taken into account in

the count of the Addressed Investors and may be offered to purchase securities in addition to the 35 Addressed

Investors. We have not and will not take any action that would require it to publish a prospectus in accordance with

and subject to the Israeli Securities Law, 5728—1968. We have not and will not distribute this prospectus or make,

distribute, or direct and offer to subscribe for our Class A common stock to any person within the State of Israel,

other than to Qualified Investors and up to 35 Addressed Investors.

Qualified Investors may have to submit written evidence that they meet the definitions set out in the First

Addendum to the Israeli Securities Law, 5728—1968. In particular, we may request, as a condition to be offered

Class A common stock, that Qualified Investors will each represent, warrant, and certify to us and/or to anyone

acting on our behalf: (i) that it is an investor falling within one of the categories listed in the First Addendum to the

Israeli Securities Law, 5728—1968; (ii) which of the categories listed in the First Addendum to the Israeli Securities

Law, 5728—1968 regarding Qualified Investors is applicable to it; (iii) that it will abide by all provisions set forth in

the Israeli Securities Law, 5728—1968 and the regulations promulgated thereunder in connection with the offer to

be issued Class A common stock; (iv) that the shares of Class A common stock that it will be issued are, subject to

exemptions available under the Israeli Securities Law, 5728—1968: (a) for its own account; (b) for investment

purposes only; and (c) not issued with a view to resale within the State of Israel, other than in accordance with the

provisions of the Israeli Securities Law, 5728—1968; and (v) that it is willing to provide further evidence of its

Qualified Investor status. Addressed Investors may have to submit written evidence in respect of their identity and

may have to sign and submit a declaration containing, inter alia, the Addressed Investor's name, address, and

passport number or Israeli identification number.

**LEGAL MATTERS**

The validity of the shares of Class A common stock offered hereby will be passed upon for us by Latham &

Watkins LLP. Davis Polk & Wardwell LLP, Redwood City, California, is acting as counsel for the underwriters in

connection with certain legal matters related to this offering. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , has acted as counsel for the selling

stockholders in connection with certain legal matters related to this offering.

**CHANGE IN INDEPENDENT ACCOUNTANT**

On November 10, 2025, we dismissed BDO USA, P.C. ("BDO") as our independent accountant and

subsequently engaged KPMG LLP ("KPMG") to audit our consolidated financial statements in accordance with the

standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of

America as of and for the year ending December 31, 2025. We previously engaged BDO to audit our consolidated

financial statements in accordance with the standards of the PCAOB and in accordance with auditing standards

generally accepted in the United States as of and for the years ended December 31, 2023 and 2024. The decision to

dismiss BDO and engage KPMG was approved by the audit committee of our board of directors.

The reports of BDO on our consolidated financial statements as of and for the years ended December 31, 2023

and 2024 did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to

uncertainties, audit scope, or accounting principles.

During the years ended December 31, 2023 and 2024, and through the period ended November 10, 2025, there

were:

• no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions thereto)

with BDO on any matter of accounting principles or practices, financial statement disclosure, or auditing

scope or procedure, which disagreements, if not resolved to its satisfaction, would have caused BDO to

make reference in connection with its opinion to the subject matter of the disagreement.

• no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K and the related

instructions thereto other than the material weaknesses in the internal control over financial reporting

relating to (i) inadequate or missing resources who possess an appropriate level of expertise to timely

review account reconciliations and identify, select, and apply U.S. generally accepted accounting principles

pertaining to several financial statement areas, including revenue recognition, inventory, and equity

administration and (ii) the failure to maintain adequate IT general controls, including ineffective

segregation of duties.

We have provided BDO with a copy of the foregoing disclosures and have requested that BDO furnish us with a

letter addressed to the SEC stating whether it agrees with the statements made by us as set forth above and, if not,

stating the respects in which it does not agree. A copy of BDO's letter, dated December 22, 2025, is filed as

Exhibit 16.1 to this registration statement.

During the years ended December 31, 2023 and 2024, and through the period ended November 10, 2025,

neither we, nor anyone acting on our behalf, consulted with KPMG on matters that involved the application of

accounting principles to a specified transaction, either completed or proposed, the type of audit opinion that might

be rendered on our financial statements, or any other matter that was the subject of a disagreement as that term is

used in Item 304 (a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K or a

reportable event as that term is used in Item 304(a)(1)(v) and the related instructions to Item 304 of Regulation S-K.

**EXPERTS**

The consolidated financial statements of Cerebras Systems Inc. as of December 31, 2024 and for the year then

ended included in this prospectus and in the registration statement have been so included in reliance on the report of

BDO USA, P.C., an independent registered public accounting firm, given on the authority of said firm as experts in

auditing and accounting*.*

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the

Securities Act, with respect to the shares of Class A common stock being offered by this prospectus. This

prospectus, which constitutes part of the registration statement, does not contain all of the information in the

registration statement and its exhibits. For further information with respect to us and our Class A common stock, we

refer you to the registration statement and its exhibits. Statements contained in this prospectus as to the contents of

any contract or any other document referred to are not necessarily complete, and in each instance, we refer you to

the copy of the contract or other document filed as an exhibit to the registration statement. Each of these statements

is qualified in all respects by this reference.

You may read our SEC filings, including this registration statement, over the Internet at the SEC's website at

*www.sec.gov*. Upon the completion of this offering, we will be subject to the information reporting requirements of

the Exchange Act and we will file reports, proxy statements, and other information with the SEC. These reports,

proxy statements, and other information will be available for review at the SEC's website referred to above. We also

maintain a website at *www.cerebras.ai*, at which, following the completion of this offering, you may access these

materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the

SEC. Information contained on, or that can be accessed through, our website does not constitute part of this

prospectus or the registration statement of which it forms a part, and the inclusion of our website address in this

prospectus is an inactive textual reference only.

**INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| **Consolidated Financial Statements for the Year Ended December 31, 2024** |  |
| <u>[Report of Independent Registered Public Accounting Firm](#ibd339ea2eafe457fa4b52fadf16fc05d_425)</u>...................................................................... | <u>[F-2](#ibd339ea2eafe457fa4b52fadf16fc05d_425)</u> |
| <u>[Consolidated Balance Sheet](#ibd339ea2eafe457fa4b52fadf16fc05d_429)</u>...................................................................................................................... | <u>[F-3](#ibd339ea2eafe457fa4b52fadf16fc05d_429)</u> |
| <u>[Consolidated Statement of Operations](#ibd339ea2eafe457fa4b52fadf16fc05d_440)</u>...................................................................................................... | <u>[F-4](#ibd339ea2eafe457fa4b52fadf16fc05d_440)</u> |
| <u>[Consolidated Statement of Comprehensive Loss](#ibd339ea2eafe457fa4b52fadf16fc05d_451)</u>...................................................................................... | <u>[F-5](#ibd339ea2eafe457fa4b52fadf16fc05d_451)</u> |
| <u>[Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders' Deficit](#ibd339ea2eafe457fa4b52fadf16fc05d_462)</u>............ | <u>[F-6](#ibd339ea2eafe457fa4b52fadf16fc05d_462)</u> |
| <u>[Consolidated Statement of Cash Flows](#ibd339ea2eafe457fa4b52fadf16fc05d_476)</u>..................................................................................................... | <u>[F-7](#ibd339ea2eafe457fa4b52fadf16fc05d_476)</u> |
| <u>[Notes to the Consolidated Financial Statements](#ibd339ea2eafe457fa4b52fadf16fc05d_488)</u>........................................................................................ | <u>[F-8](#ibd339ea2eafe457fa4b52fadf16fc05d_488)</u> |

---

**Report of Independent Registered Public Accounting Firm**

Shareholders and Board of Directors

Cerebras Systems Inc.

Sunnyvale, California

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheet of Cerebras Systems Inc. (the "Company") as of

December 31, 2024, the related consolidated statements of operations, comprehensive loss, changes in redeemable

convertible preferred stock and stockholders' deficit, and cash flows for the year ended December 31, 2024, and the

related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated

financial statements present fairly, in all material respects, the financial position of the Company at December 31,

2024, and the results of its operations and its cash flows for the year then ended**,** in conformity with accounting

principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our

responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We

are a public accounting firm registered with the Public Company Accounting Oversight Board (United States)

("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal

securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the

PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing

standards generally accepted in the United States of America. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether the consolidated financial statements are free of material

misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform,

an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an

understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the

effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated

financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such

procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated

financial statements. Our audit also included evaluating the accounting principles used and significant estimates

made by management, as well as evaluating the overall presentation of the consolidated financial statements. We

believe that our audit provides a reasonable basis for our opinion.

/s/ BDO USA, P.C.

We served as the Company's auditor from 2020 to 2025.

San Jose, California

September 18, 2025

**CEREBRAS SYSTEMS INC.**

**CONSOLIDATED BALANCE SHEET**

(in thousands, except per share and share amounts)

---

| | |
|:---|:---|
|  | **December 31,** |
|  | **2024** |
| **ASSETS** |  |
| Current assets: |  |
| Cash and cash equivalents............................................................................................................................................. | $220208 |
| Restricted cash............................................................................................................................................................... | 361757 |
| Investments.................................................................................................................................................................... | 116943 |
| Accounts receivable....................................................................................................................................................... | 137436 |
| Inventories..................................................................................................................................................................... | 174492 |
| Prepaid expenses and other current assets..................................................................................................................... | 19643 |
| Total current assets.............................................................................................................................................................. | 1030479 |
| Property and equipment, net................................................................................................................................................ | 43174 |
| Right-of-use assets............................................................................................................................................................... | 36571 |
| Other assets.......................................................................................................................................................................... | 2514 |
| Total assets.......................................................................................................................................................................... | $1112738 |
| **LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS'** <br>**DEFICIT**<br>|  |
| Current liabilities: |  |
| Accounts payable........................................................................................................................................................... | $25630 |
| Deferred revenue, current.............................................................................................................................................. | 38537 |
| Customer deposits.......................................................................................................................................................... | 640317 |
| Forward contract liability.............................................................................................................................................. | 363336 |
| Accrued and other current liabilities.............................................................................................................................. | 110315 |
| Total current liabilities......................................................................................................................................................... | 1178135 |
| Deferred revenue, net of current portion............................................................................................................................. | 18885 |
| Other liabilities.................................................................................................................................................................... | 32443 |
| Total liabilities..................................................................................................................................................................... | 1229463 |
| Commitments and contingencies (Note 17) |  |
| Redeemable convertible preferred stock, $0.00001 par value per share: 105,750,455 shares authorized and 82,899,159<br>shares issued and outstanding as of December 31, 2024................................................................................................<br>| $850066 |
| Stockholders' deficit............................................................................................................................................................ |  |
| Common stock, $0.00001 par value; 204,519,000 shares authorized and 53,372,691 shares issued and outstanding <br>as of December 31, 2024...........................................................................................................................................<br>| 1 |
| Additional paid in capital.............................................................................................................................................. | 176233 |
| Treasury stock, 300,138 shares of common stock as of December 31, 2024................................................................ | (88) |
| Accumulated other comprehensive income................................................................................................................... | 220 |
| Accumulated deficit....................................................................................................................................................... | (1143157) |
| Total stockholders' deficit................................................................................................................................................... | (966791) |
| Total liabilities, redeemable convertible preferred stock, and stockholders' deficit........................................................... | $1112738 |

---

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

**CEREBRAS SYSTEMS INC.**

**CONSOLIDATED STATEMENT OF OPERATIONS**

(in thousands, except per share data)

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Revenue |  |
| Hardware.......................................................................................................................................... | $211965 |
| Cloud and other services.................................................................................................................. | 78287 |
| Total revenue........................................................................................................................................ | 290252 |
| Cost of sales |  |
| Hardware.......................................................................................................................................... | 137310 |
| Cloud and other services.................................................................................................................. | 30204 |
| Total cost of sales.................................................................................................................................. | 167514 |
| Gross profit........................................................................................................................................... | 122738 |
| Operating expenses |  |
| Research and development............................................................................................................... | 158234 |
| Sales and marketing......................................................................................................................... | 20980 |
| General and administrative.............................................................................................................. | 44962 |
| Total operating expenses....................................................................................................................... | 224176 |
| Loss from operations............................................................................................................................. | (101438) |
| Other expense, net................................................................................................................................. | (378237) |
| Loss before income taxes...................................................................................................................... | (479675) |
| Income tax expense.......................................................................................................................... | 1927 |
| Net loss.................................................................................................................................................. | $(481602) |
| Net loss per share – basic and diluted................................................................................................... | $(9.90) |
| Weighted average number of common shares outstanding, basic and diluted..................................... | 48972 |

---

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

**CEREBRAS SYSTEMS INC.**

**CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS**

**(in thousands)**

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Net loss.................................................................................................................................................. | $(481602) |
| Foreign currency translation adjustments, net of tax............................................................................ | (304) |
| Available-for-sale investments: |  |
| Change in net unrealized loss on debt securities, net of tax............................................................. | (579) |
| Comprehensive loss.............................................................................................................................. | $(482485) |

---

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

**CEREBRAS SYSTEMS INC.**

**CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Redeemable Convertible** <br>**Preferred Stock** | **Redeemable Convertible** <br>**Preferred Stock** | **Common Stock** | **Common Stock** | **Additional** <br>**Paid-in** <br>**Capital** | **Treasury Stock** | **Treasury Stock** | **Accumulated** <br>**Other** <br>**Comprehensive** <br>**Income (Loss)** | **Accumulated** <br>**Deficit** | **Total** <br>**Stockholders'** <br>**Deficit** |
| <br>**(in thousands)** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional** <br>**Paid-in** <br>**Capital** | **Shares** | **Amount** | **Accumulated** <br>**Other** <br>**Comprehensive** <br>**Income (Loss)** | **Accumulated** <br>**Deficit** | **Total** <br>**Stockholders'** <br>**Deficit** |
| **Balance as of January 1, 2024**.... | 77033 | $722780 | 45362 | $— | $101578 | (300) | $(88) | $1103 | $(661555) | $(558962) |
| Issuance of shares of <br>Series F-1 redeemable <br>convertible preferred stock, <br>net of issuance costs............<br>| 5798 | 84898 |  |  |  |  |  |  |  |  |
| Settlement of Series F-1 <br>redeemable convertible <br>preferred stock forward <br>contract liability...................<br>|  | 37928 |  |  |  |  |  |  |  |  |
| Deemed dividend on issuance <br>of Series F-1 redeemable <br>convertible preferred stock..<br>|  | 3182 |  |  | (3182) |  |  |  |  | (3182) |
| Issuance of shares of Series E <br>redeemable convertible <br>preferred stock upon <br>exercise of warrant...............<br>| 68 | 1278 |  |  |  |  |  |  |  |  |
| Shares issued upon exercise of <br>stock options, net of <br>repurchases of early <br>exercised stock options........<br>|  |  | 8011 | 1 | 17667 |  |  |  |  | 17668 |
| Vesting of early exercised <br>stock options........................<br>|  |  |  |  | 1733 |  |  |  |  | 1733 |
| Stock-based compensation....... |  |  |  |  | 57525 |  |  |  |  | 57525 |
| Conversion of stock-based <br>liability classified awards to <br>stock-based equity <br>classified awards..................<br>|  |  |  |  | 912 |  |  |  |  | 912 |
| Foreign currency translation <br>adjustments, net of tax.........<br>|  |  |  |  |  |  |  | (304) |  | (304) |
| Change in net unrealized loss <br>on debt securities, net of tax<br>|  |  |  |  |  |  |  | (579) |  | (579) |
| Net loss........................................... |  |  |  |  |  |  |  |  | (481602) | (481602) |
| **Balance as of December 31, 2024** | 82899 | $850066 | 53373 | $1 | $176233 | (300) | $(88) | $220 | $(1143157) | $(966791) |

---

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

**CEREBRAS SYSTEMS INC.**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

(in thousands)

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |
| Net loss................................................................................................................................................................................... | $(481602) |
| Adjustments to reconcile net loss to net cash flows provided by operating activities: |  |
| Depreciation and amortization expense............................................................................................................................ | 11537 |
| Stock-based compensation............................................................................................................................................... | 58564 |
| Amortization of premium and accretion of discount on investments, net........................................................................ | (6545) |
| Non-cash lease expense.................................................................................................................................................... | 7607 |
| Write-offs and provision for excess and obsolete inventories.......................................................................................... | 3563 |
| Provision for product warranties...................................................................................................................................... | 12525 |
| Change in fair value of forward contract liability............................................................................................................ | 401264 |
| Other................................................................................................................................................................................. | 1594 |
| Changes in operating assets and liabilities:...................................................................................................................... |  |
| Accounts receivable.................................................................................................................................................... | (130672) |
| Inventories.................................................................................................................................................................. | (144969) |
| Prepaid expenses and other assets.............................................................................................................................. | (17051) |
| Accounts payable........................................................................................................................................................ | 9010 |
| Deferred revenue........................................................................................................................................................ | 38196 |
| Customer deposits....................................................................................................................................................... | 640317 |
| Other liabilities........................................................................................................................................................... | 48640 |
| Net cash flows provided by operating activities..................................................................................................................... | 451978 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |
| Purchases of property and equipment............................................................................................................................... | (23435) |
| Purchases of investments.................................................................................................................................................. | (302898) |
| Maturities and sales of investments.................................................................................................................................. | 309548 |
| Net cash flows used in investing activities............................................................................................................................. | (16785) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |
| Proceeds from sale of shares of Series F-1 redeemable convertible preferred stock, net of issuance costs..................... | 84898 |
| Proceeds from exercise of stock options.......................................................................................................................... | 27752 |
| Repurchases of early exercised stock options.................................................................................................................. | (28) |
| Payments of deferred offering costs................................................................................................................................. | (326) |
| Net cash flows provided by financing activities..................................................................................................................... | 112296 |
| Effect of exchange rate on cash.............................................................................................................................................. | (304) |
| Increase in cash, cash equivalents, and restricted cash........................................................................................................... | 547185 |
| Cash, cash equivalents, and restricted cash beginning of period............................................................................................ | 34780 |
| Cash, cash equivalents, and restricted cash end of period...................................................................................................... | $581965 |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |
| Transfer of property and equipment out of inventories.......................................................................................................... | $18452 |
| Transfer of property and equipment into inventories............................................................................................................. | 2456 |
| Purchases of property and equipment included in accounts payable and accrued and other current liabilities..................... | 4286 |
| Vesting of early exercised options.......................................................................................................................................... | 1733 |
| Right-of-use assets obtained in exchange for lease obligations............................................................................................. | 43659 |
| Unpaid deferred financing costs included in accrued and other current liabilities................................................................. | 337 |
| Settlement of Series F-1 redeemable convertible preferred stock forward contract liability................................................. | 37928 |
| Deemed dividend upon issuance of Series F-1 redeemable convertible preferred stock....................................................... | 3182 |

---

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

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 – Nature of Operations**

Cerebras Systems Inc. (the "Company" or "Cerebras") was incorporated in Delaware in April 2016. Cerebras is

an enterprise artificial intelligence ("AI") company that designs and deploys an AI compute platform, purpose-built

for accelerating AI's most complex workloads. The Company's Wafer-Scale Engine ("WSE"), a chip encompassing

an entire silicon wafer, is specifically designed to tackle the computational demands of Generative AI ("GenAI")

applications. The Company architects AI systems, utilizing the WSE, and the integrated software that connects these

systems into a cluster to form supercomputers. The AI compute platform is designed to reduce training times and

inference latencies, while reducing programming complexity. The Company leverages this technology to train AI

models in collaboration with its customers and to provide inference services. Since its inception, Cerebras

Systems Inc. has dedicated resources to research and development activities that support its current projects and

future development efforts. The Company is headquartered in Sunnyvale, California.

**Note 2 – Basis of Presentation and Liquidity**

The Company has financed operations to date primarily through equity financing arrangements and has incurred

operating losses and negative cash flows since its inception. As of December 31, 2024, the Company had a total

cash, cash equivalents, and restricted cash balance of $582.0 million, investments of $116.9 million, which were

classified as available-for-sale, and an accumulated deficit of $1,143.2 million. During the year ended December 31,

2024, net loss incurred was $481.6 million and net cash provided by operations was $452.0 million. The Company

expects to continue to incur operating losses to support the development and marketing of its products, for the

expansion of its product portfolio, and to continue its research and development activities. Notwithstanding these

expectations, the Company generated positive cash flows from operations during 2024, primarily due to customer

deposits of over $640.3 million. The Company's activities are subject to significant risks and uncertainties, including

market acceptance of the Company's products, as well as the timing and extent of spending on research and

development. The Company's management plans to monitor expenses and raise additional capital through strategic

alliances. During the year ended December 31, 2024, the Company raised $84.9 million through the issuance of

Series F-1 redeemable convertible preferred stock, net of issuance costs. Management believes that the Company's

current cash and cash equivalents and investments are adequate to meet its needs for the next 12 months from the

issuance of these consolidated financial statements.

The Company's ability to access capital when needed is not assured and, if capital is not available on acceptable

terms to the Company when, and in the amounts, needed, the Company could be required to delay, scale back or

abandon some or all of its development programs and other operations, which could materially harm the Company's

business, financial condition, and results of operations.

If the Company is unable to obtain further funding, the Company may be forced to delay, reduce, or eliminate

some or all of its research and development programs, product portfolio expansion, or commercialization efforts,

which could adversely affect its business prospects.

These consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with

generally accepted accounting principles in the United States of America ("GAAP"). The consolidated financial

statements include the accounts and operations of the Company and its wholly owned subsidiaries. All intercompany

accounts and transactions have been eliminated upon consolidation. Certain amounts reported in the prior year

financial statements have been reclassified to conform to the current year presentation. These changes in

presentation do not affect previously reported results.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with GAAP requires management to make

estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent

assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and

expenses during the reporting period.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Areas of significant estimates include, but are not limited to, revenue recognition, including the determination of

the standalone selling price ("SSP") of performance obligations, estimate for credit losses, useful life of property,

plant and equipment, product warranty accruals, impairment of long-lived assets, the market value of and demand

for inventory, valuation allowance on deferred income tax assets, the fair value of common stock, and other

assumptions used to measure stock-based compensation, forward contract liability, and warrant liability. The

Company bases its estimates on historical experience, known trends, and other market-specific or other relevant

factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its

estimates when there are changes in circumstances, facts, and experience. Changes in estimates are recorded

prospectively in the period in which they become known. Actual results could significantly differ from those

estimates.

**Note 3 – Recent Accounting Pronouncements**

***Recently Adopted Accounting Pronouncement***

In November 2023, the FASB issued ASU 2023-07 *Segment Reporting – Improvements to Reportable Segment*

*Disclosures*, which updates reportable segment disclosure requirements, primarily through enhanced disclosures

about significant segment expenses and information used to assess segment performance. The guidance is effective

for the Company's annual periods beginning in 2024 and interim periods beginning in the first quarter of fiscal year

2025. The Company adopted the standard on December 31, 2024. See Note 6 for additional information.

***Recent Accounting Pronouncements Not Yet Adopted***

In December 2023, the FASB issued ASU No. 2023-09 *Income Taxes (Topic 740): Improvements to Income*

*Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 requires disaggregated information about a reporting entity's

effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 is effective for public

business entities for annual periods beginning after December 15, 2024. For all other entities, the standard is

effective for annual periods beginning after December 15, 2025. Early adoption is permitted. The Company is

currently evaluating the impact of ASU 2023-09 on its consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03 *Income Statement-Reporting Comprehensive Income-*

*Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses* ("ASU

2024-03") a new accounting standard requiring disclosures of certain additional expense information on an annual

and interim basis, including, among other items, the amounts of purchases of inventory, employee compensation,

depreciation and intangible asset amortization included within each income statement expense caption, as applicable.

ASU 2023-03 is effective for public business entities for annual periods beginning after December 15, 2026, and

interim periods within annual periods beginning after December 15, 2027. Early adoption is permitted. The

Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements.

**Note 4 – Significant Accounting Policies**

***Risks and Uncertainties***

*Credit Risk*

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of

cash, cash equivalents, investments, and accounts receivable. Investments are made with the primary objective of

preservation of capital and maintenance of liquidity. The Company believes that the quality of financial instruments

minimizes the exposure to concentration of credit risk. The Company holds cash, cash equivalents, and restricted

cash at several major financial institutions, which may exceed insurance limits set by the Federal Deposit Insurance

Corporation ("FDIC"). The Company has not historically experienced any losses due to such concentration of credit

risk.

The Company has no significant off-balance sheet risk, such as foreign exchange contracts, options contracts, or

other hedging arrangements.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The Company believes its credit policies are prudent and reflect normal industry terms and business risk. The

Company's exposure to credit risk for accounts receivable is indicated by the carrying value of its accounts

receivable. The Company does not require customers to provide collateral to support accounts receivable. If deemed

necessary, credit reviews of significant customers may be performed prior to extending credit. The determination of

a customer's ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue,

cash, and net earnings. Expected credit losses for uncollectible receivable balances consider both current conditions

and reasonable and supportable forecasts of future conditions. Current conditions considered include predefined

aging criteria, as well as specified events that indicate the balance due is not collectible. Reasonable and supportable

forecasts used in determining the probability of future collections consider publicly available macroeconomic data

and whether future credit losses are expected to differ from historical losses. The Company currently does not have

an allowance for credit losses and expects to collect the full balance of accounts receivable.

*Customer Concentration*

Revenue from significant customers, meaning those representing 10% or more of total revenue, was composed

of one customer accounting for 85% of the Company's revenue for the year ended December 31, 2024. Accounts

receivable from significant customers, those representing 10% or more of the total accounts receivable, was

composed of one customer accounting for 91% of the Company's accounts receivable balance as of December 31,

2024. *Supplier Concentration*

Certain materials used by the Company in the manufacturing of its products are available from a limited number

of suppliers. Shortages could occur in these materials due to an interruption of supply or increased demand in the

industry. Three suppliers accounted for 21%, 14%, and 11%, respectively, of total purchases for the year ended

December 31, 2024.

*Other Risks and Uncertainties*

The Company is subject to certain other risks and uncertainties, including, but not limited to, changes in any of

the following areas that the Company believes could have a material adverse effect on its future financial position or

results of operations: the Company's ability to advance the development of its products; market acceptance of its

products; performance of third-party data center vendors; competition from other companies with greater financial

resources or expertise; protection of intellectual property; litigation or claims brought by or made against the

Company relating to intellectual property or other factors; and its ability to attract and retain employees necessary to

support its growth.

The Company's business and operations may be affected by worldwide economic conditions, which may

continue to be impacted by global macroeconomic challenges, such as the effects of the ongoing conflict between

Russia and Ukraine, tensions between the United States and China, conflicts in the Middle East, uncertainty in the

financial markets, including disruptions in the banking industry and inflationary trends.

***Revenue Recognition***

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers*,

which provides a five-step framework through which revenue is recognized when control of promised goods or

services is transferred to a customer at an amount that reflects the consideration to which the Company expects to be

entitled in exchange for those goods or services. To determine revenue recognition for arrangements that the

Company concludes are within the scope of ASC 606, management performs the following five steps: (i) identifies

the contract(s) with a customer; (ii) identifies the performance obligations in the contract(s); (iii) determines the

transaction price, including whether there are any constraints on variable consideration; (iv) allocates the transaction

price to the performance obligations; and (v) recognizes revenue when (or as) the Company satisfies a performance

obligation.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Revenue is recognized when control of the promised goods or services, through performance obligations by the

Company, is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in

exchange for the performance obligations.

The Company combines and accounts for multiple contracts as a single contract when they are negotiated

together with the same customer at or near the same time in order to achieve a single commercial objective, or when

the contracts are related in other ways.

Transaction price may be comprised of fixed consideration, variable consideration, significant financing

component, non-cash consideration, and consideration payable to a customer. The Company's contracts are typically

for fixed consideration.

For all contracts with customers that have more than one performance obligation, the Company allocates the

transaction price to each separate performance obligation based on the relative SSP of each performance obligation.

The best evidence of an SSP, if available, is the observable price charged in similar circumstances and to similar

customers. If an SSP is not directly observable, the Company estimates SSP using various observable inputs

including historical internal pricing data, cost-plus expected margin analysis, market conditions, and information

about the size and/or purchase volume of the customer, due to the limited standalone sales history.

The Company generates revenue primarily from the sale of AI systems, support services, operations and

management services, cloud-based computing services, and custom AI modeling services.

***Hardware Sales Revenue and Installation, Integration, and Acceptance Testing***

Hardware revenue primarily consists of sales of the Company's AI systems and other equipment. Revenue from

the sale of AI systems is recognized upon transfer of control of promised goods to customers at a point in time.

Revenue is recognized in an amount that reflects the consideration the Company expects to receive in exchange for

those goods, net of allowances for returns, customer programs, and any taxes collected from customers. Generally,

control of the goods transfers to the customer upon shipment, or delivery, depending on shipping terms, in the

absence of installation, integration, and acceptance testing requirements. In certain cases, the Company may be

contracted to install the hardware at the customer's facility, and subsequent to installation, the Company may

provide further integration services and conduct acceptance testing. When installation, integration, and acceptance

testing is bundled with the hardware, control of the goods is transferred upon meeting the contractual acceptance

provisions. Transaction price allocated to installation and integration services is recognized at a point in time upon

completion of services, which generally coincides with the timing of customer acceptance and recognition of

revenue for the AI system. Revenue for installation and integration services is included in Cloud and other services

on the consolidated statement of operations.

***Other Equipment***

Customers regularly contract with the Company to purchase other equipment as needed, such as racks, coolant

distribution units, and power supply units. In arrangements where another party is involved in providing specified

goods or services to a customer, the Company evaluates whether it is the principal or agent. In this evaluation, the

Company considers if control of the specified goods or services is obtained before they are transferred to the

customer, as well as other indicators such as the party primarily responsible for fulfillment, inventory risk, and

discretion in establishing price. Revenue recognized from sales of additional equipment follows similar revenue

recognition patterns as hardware sales.

***Support Services***

The Company sells support services—including software updates, and customer care support in one-year, two-

year, or three-year terms. The support services represent an obligation of the Company to stand-ready to provide an

undefined quantity of support over the duration of the service term. Under the provisions of the arrangement,

customers may make requests of the Company to deliver some or all of the customer support services at some point

during the period defined in the contract, or the delivery of some or all of the services on a when-and-if-available

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

basis may be in the control of the entity (i.e., software updates). The customer benefits from the Company's stand-

ready obligation evenly throughout the contract period, and as a result, revenue is recognized ratably over the

service term.

***Operations and Management Services***

The Company provides a comprehensive suite of services to manage and operate clusters of systems located at

data centers leased by the Company, where customer-owned equipment is installed, as well clusters of systems at

customer premises. These services include managing and maintaining large-scale infrastructure, regular software

updates, hardware maintenance, and 24x7 monitoring of system and facility health. Revenue is recognized on a

straight-line basis over the service term as the customer simultaneously receives and consumes the benefits of the

services provided.

***Cloud-based Computing Services***

The Company also provides cloud-based computing services to customers. In each case, the totality of services

provided represents a single integrated solution tailored to the customer's specific needs. As such, the performance

obligations to the customers consists of a single integrated solution delivered as a series of distinct daily services.

The customers benefit from the services over the contract term and as such revenue is recognized over time as

services are provided.

***AI Modeling Services***

The Company also generates revenue from custom AI modeling service agreements with customers, whereby

the Company is engaged to help customers throughout the AI workflow, starting with developing strategy, designing

and building the model, and deploying the final model. The totality of services in such arrangements are broken into

different milestones within the contract. In certain contracts, each milestone builds upon progress achieved in earlier

milestones. Upon completion of each milestone, the Company provides a deliverable to the customer in certain

contracts, which must be accepted by the customer in order to proceed with the next phase of the contract. Each

milestone is typically for fixed consideration. If an SSP is not directly observable, the Company estimates SSP using

various observable inputs including cost-plus expected margin analysis due to the limited standalone sales history.

The Company recognizes revenue from AI modeling services over time as services are provided or at a point in time

upon completion and acceptance by the customer of contract deliverables, depending on the terms of the agreement.

The Company generally warrants its products to be free of defects generally for a period of one to two years.

This assurance-type warranty is not considered a separate performance obligation, and thus, no transaction price is

allocated to it. The Company estimates its warranty costs based on historical warranty claim experience and includes

such costs in the cost of sales.

***Contract Assets and Liabilities***

The payment terms and conditions in the Company's customer contracts vary. In some cases, customers prepay

for their goods and services; in other cases, after appropriate credit evaluations, payment is due in arrears, typically

no longer than one year. When the timing of the Company's delivery of hardware and provision of services is

different from the timing of the payments made by customers, the Company recognizes either a contract asset or a

contract liability.

Contract assets represent deferred cost of sales related to revenue that has not yet been recognized, and unbilled

receivables related to revenue that has been recognized but not yet invoiced. Contract liabilities are recorded in

deferred revenue and represent amounts that have been invoiced, or received in advance, but have not yet been

recognized as revenue.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**Cash and Cash Equivalents**

Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three

months or less at the time of purchase. The Company's cash and cash equivalents are invested in various investment

grade institutional money market funds and interest-bearing accounts.

**Restricted Cash**

Restricted cash includes cash and cash equivalents that are not readily available for use in the Company's

operating activities. Restricted cash is primarily attributable to cash advances received from customers that the

Company is contractually restricted to use for the limited purposes of satisfying obligations under contracts with its

customers. See "—Customer Deposits" for additional information.

**Investments**

Investments consist primarily of time deposits, U.S. Treasury securities, and corporate debt securities that have

an initial maturity of greater than three months at the time of purchase but less than or equal to one year at period-

end.

The Company classifies its investments in debt securities as available for sale. These available-for-sale debt

securities are reported at fair value. The fair value of interest-bearing debt securities includes accrued interest. Debt

securities are carried at fair value, with the unrealized gains and losses reported as a component of accumulated

other comprehensive loss ("AOCI"), except for the changes in allowance for expected credit losses, which are

recorded in other income (expense), net. The Company determines any realized gains or losses on the sale of, or

maturity of, debt securities on a specific identification method, and the Company records such realized gains and

losses in other income (expense), net.

All of the Company's available-for-sale debt securities are evaluated at each reporting date for credit losses. If

the Company intends to sell a security, or if it is more likely than not that the Company will be required to sell the

security before recovery of its amortized cost basis, the security is written down to its fair value and the entire

unrealized loss is recognized in earnings. For all other available-for-sale debt securities in an unrealized loss

position, the Company evaluates whether a credit loss exists based on available information relevant to the

collectability of the security, including past events, current conditions, and reasonable and supportable forecasts. The

portion of the unrealized loss attributable to credit factors is recognized in earnings, limited to the total unrealized

loss, with the remaining unrealized loss recognized in accumulated other comprehensive income (loss). There were

no credit losses or impairment charges for the year ended December 31, 2024.

**Fair Value of Financial Instruments**

The Company determines fair value measurements used in its consolidated financial statements based upon the

price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant

assumptions developed based on market data obtained from independent sources (observable inputs), and (ii) an

entity's own assumptions about market participant assumptions developed based on the best information available in

the circumstances (unobservable inputs).

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted

prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs

(Level 3). The three levels of the fair value hierarchy are described below:

• Level 1 inputs are quoted prices in active markets for identical assets and liabilities;

• Level 2 inputs, other than quoted prices included within Level 1, are observable for the asset or liability

either directly or indirectly; and

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

• Level 3 inputs are not observable in the market.

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of

unobservable inputs when measuring fair value.

The carrying amounts of the Company's financial instruments consisting of cash and cash equivalents, accounts

receivable, accounts payable, and accrued liabilities approximate fair value due to their relatively short maturities.

See Note 8, Note 9, Note 12, and Note 13.

**Accounts Receivable**

The Company has trade receivables which are recorded at the invoiced amount and do not bear interest. The

Company evaluates the collectability of accounts receivable on a regular basis based on economic assessment of

market conditions and review of customer financial history. There was no allowance for credit losses recorded as of

December 31, 2024.

**Inventories**

Inventories consist of raw materials, work-in-progress and finished goods and are stated at the lower of cost or

net realizable value. Costs are measured on a weighted average cost basis. Net realizable value is the estimated

selling price of the Company's products in the ordinary course of business less reasonably predictable costs of

completion, disposal, and transportation. Inventories are written down to their net realizable value if they have

become obsolete, have a cost basis in excess of expected net realizable value, or are in excess of expected demand.

Once inventory is written down, its new value is maintained until it is sold, scrapped, or written down for further

valuation losses. The valuation of inventories requires the Company to make judgments based on currently available

information about the likely method of disposition and current and future product demand relative to the remaining

product life. Process and product development life cycle corresponds with substantive engineering milestones. These

engineering milestones are regularly and consistently applied in assessing the point at which activities and

associated costs change in nature from research and development to cost of sales and when cost of sales can be

capitalized as inventory. Inventory costs consist primarily of the cost of semiconductors, memory products, and

other component parts purchased from subcontractors, including wafer fabrication, assembly, testing, and

manufacturing support costs, including labor and overhead associated with such purchases, final test yield fallout,

and shipping costs. Inventory is valued at the lower of cost or net realizable value, based upon assumptions about

future demand and market conditions.

The valuation of inventory also requires the Company to estimate obsolete and excess inventory, as well as

inventory that is not of salable quality. Cost of sales is charged for inventory provisions to write down inventory to

the lower of cost or net realizable value or to completely write off excess or obsolete inventory. Most inventory

provisions relate to write-downs for inventory that is not salable quality.

**Property and Equipment, Net**

Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions

and improvements to property and equipment are capitalized and repairs and maintenance costs are expensed as

incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the

respective accounts and any related gain or loss is recognized.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Property and equipment are depreciated using the straight-line method over the estimated useful lives of the

property and equipment as follows:

---

| | |
|:---|:---|
| **Asset Category**  | **Useful Life (Years)** |
| Computer equipment......................................................... | 1.5 – 3 |
| Furniture and fixtures........................................................ | 3 |
| Software............................................................................ | 3 |
| Machinery and equipment................................................ | 7 |
| Leasehold improvements.................................................. | Lesser of estimated useful life or remaining lease term |

---

Estimated useful lives are periodically assessed to determine if changes are appropriate. When assets are retired

or otherwise disposed of, the cost of these assets and related accumulated depreciation or amortization are removed

from the accounts and any resulting gains or losses are included in loss from operations in the period of disposal.

**Leases**

***Lessee Accounting***

The Company determines if an arrangement is a lease at its inception. Operating leases with lease terms of more

than 12 months are included in right-of-use assets and operating lease liabilities in the consolidated balance sheet.

Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the

obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are

recognized at commencement date based on the present value of lease payments over the lease term. The Company

uses its incremental borrowing rate based on the information available at the commencement date in determining the

present value of lease payments if an implicit rate is not available.

The right-of-use assets also includes any rent prepayments, lease incentives upon receipt, and straight-line rent

expense impacts, which represent the differences between operating lease liabilities and right-of-use assets. Lease

terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise

that option. Lease and non-lease components have been combined.

**Impairment of Long-Lived Assets**

The Company assesses the recoverability of its long-lived assets, including property and equipment and right-

of-use assets, for indicators of impairment. If events or changes in circumstances indicate that an asset may be

impaired, the Company evaluates recoverability by comparing the asset's carrying amount to the estimated

undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount exceeds

the estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount

exceeds the assets fair value. When quoted market prices are not available, fair value is estimated using expected

future cash flow discounted at a rate commensurate with the risks associated with the assets recovery. No

impairment of long-lived assets was identified for the year ended December 31, 2024.

**Customer Deposits**

In April 2024, the Company entered into an agreement with an entity affiliated with Group 42 Holding Ltd

(together with its affiliates, "G42") (the "G42 April 2024 Agreement") pursuant to which G42, or a third party

nominee affiliated with G42, indicated its intent to issue purchase orders for AI supercomputer products and services

for a minimum value of $300 million. Pursuant to the G42 April 2024 Agreement, the Company received a

prepayment of $300 million from G42 in May 2024 to be used for payments to third-party vendors to manufacture

high-performance computing infrastructure. If the purchase orders are not issued by G42, any portion of the

prepayment not paid to the Company's third-party vendors will be payable to G42 on demand and the Company's

rights to inventory purchased with the prepayment will transfer to G42.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

In May 2024, the Company entered into another agreement with G42 (the "G42 May 2024 Agreement")

pursuant to which the Company agreed to certain product pricing commitments with G42 through the end of 2025,

and G42 agreed that it will purchase, or will cause a third party that may be affiliated or unaffiliated and under a

commercial agreement with G42 to purchase, high-performance computing systems, installation, and support

services in an aggregate amount of approximately $1.43 billion (the "Purchase Commitment"). During the third

quarter of 2024, the Company received certain purchase orders from G42 and another customer, including another

prepayment of $350.0 million, representing a portion of the Purchase Commitment. As of December 31, 2024, the

Company recorded customer deposits of $640.3 million on the consolidated balance sheet.

In the first quarter of 2025, the Company and G42 agreed in principle to revise the G42 May 2024 Agreement to

remove the product pricing commitments and Purchase Commitment. In the third quarter of 2025, the G42 May

2024 Agreement was terminated in its entirety in connection with the restatement of the Series F-1 and F-2 Preferred

Stock Purchase Agreement (as defined in Note 12) to remove G42 as an investor. See Note 18 for further

information.

**Forward Contract Liability**

The Company determined that its obligation to issue, and the Company's investors' obligation to purchase,

shares of Series F-1 and Series F-2 redeemable convertible preferred stock at a fixed price in the future represented a

freestanding financial instrument ("forward contract liability") and is classified as a liability because the underlying

shares of forward contract liability are redeemable upon the occurrence of certain events outside the control of the

Company. This liability is measured at fair value upon initial recognition and at each subsequent reporting date

through the settlement date, with changes in fair value for each reporting period recognized in other income

(expense), net on the consolidated statement of operations. See Note 12 and 18 for further information.

**Provision for Product Warranties**

The Company offers product warranties ranging from one to two years against any defective products. These

standard warranties are assurance-type warranties, and the Company does not offer any services beyond the

assurance that the product will continue working as specified. Therefore, these warranties are not considered

separate performance obligations in the arrangement. Based on historical experience, the Company accrues for

estimated returns of defective products at the time revenue is recognized. The Company monitors warranty

obligations and may make revisions to its warranty reserve if actual costs of product repair and replacement are

significantly higher or lower than estimated. Accruals for anticipated future warranty costs are charged to cost of

sales. Warranty accruals are based on estimates that are updated on an ongoing basis taking into consideration inputs

such as new product introductions, changes in the volume of claims compared with the Company's historical

experience, and the changes in the cost of servicing warranty claims. The Company accounts for the effect of such

changes in estimates prospectively. The following table shows the changes in provision for product warranty during

the year ended December 31, 2024 (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Balance at beginning of year................................................................................................................. | $3633 |
| Additions during the year...................................................................................................................... | 41190 |
| Utilization during the year.................................................................................................................... | (27780) |
| Balance at end of year........................................................................................................................... | $17043 |

---

**Research and Development Costs**

Research and development costs are expensed in the period incurred. Research and development expenses

primarily consist of costs incurred in performing research and development activities and include salaries, stock-

based compensation, employee benefits, tape-out costs, which include layout services, mask sets, prototype

components, system qualification and testing incurred before releasing new system designs into production, data

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

center costs, depreciation and amortization, professional services fees, cloud computing costs and facilities

expenses.

The Company expenses software development costs, including costs to develop the software component of

hardware to be sold, leased, or marketed to external users, before technological feasibility is reached. Technological

feasibility is typically reached shortly before the release of such products and as a result, development costs that

meet the criteria for capitalization were not material for the periods presented.

**Income Taxes**

The Company accounts for income taxes under the asset and liability method, which requires the recognition of

deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") for the expected future tax consequences of

events that have been included in the consolidated financial statements. Under this method, DTAs and DTLs are

determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by

using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change

in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date.

The Company recognizes DTAs to the extent that these assets are more likely than not to be realized. In making

such a determination, all available positive and negative evidence are considered, including future reversals of

existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent

operations. If it is determined that the DTAs in the future in excess of their net recorded amount can be realized, an

adjustment to the DTA valuation allowance will be made, which would reduce the provision for income taxes. Due

to the Company's historical operating performance and net losses, the net deferred tax assets have been fully offset

by a valuation allowance.

The Company records uncertain tax positions on the basis of a two-step process in which (1) determine whether

it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position

and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax

benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority is realized.

Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company's

policy is to recognize interest and penalties related to the underpayment of income taxes as a component of the

provision for income taxes.

**Stock-Based Compensation**

The Company's 2016 Equity Incentive Plan (as amended, the "Equity Incentive Plan") provides for the

Company to grant incentive stock options ("ISOs"), non-statutory stock options ("NSOs"), restricted stock units

("RSUs"), and restricted stock awards ("RSAs") to employees, advisers, and directors. The Company measures

stock-based compensation awards exchanged for employee services at fair value on the date of the grant and

recognizes expense on a straight-line basis over the award's vesting period. The requisite service period generally

equals the vesting period of the awards. The Company estimates the grant date fair value using the Black-Scholes

option-pricing model. The fair value of RSUs and RSAs are based on the Company's stock price on the date of

grant. The Company estimates forfeitures at the date of grant, based on historical experience, and revises, if

necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company's estimates may be

impacted by certain variables, including, but not limited to, stock price volatility, employee retirement eligibility

dates, the Company's performance, and related tax impacts. For certain equity awards that have both service and

performance conditions, the Company recognizes the expense over the requisite service period if it is probable that

the performance conditions will be achieved. The Company reassesses the achievement of the performance

conditions at each reporting date and adjusts the stock-based compensation accordingly.

**Treasury Stock**

The Company records repurchases of common shares as treasury stock at cost and records subsequent

retirements of treasury shares at cost. The amount of cash or other assets transferred to repurchase an equity award is

charged to equity to the extent that the amount paid does not exceed the fair value of the equity instrument being

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

repurchased at the repurchase date. Any amount paid in excess of fair value is attributed to the other elements of the

transaction and accounted for according to their substance. When treasury shares are retired, the excess of the

repurchase price over the par value of the shares acquired is allocated to both retained earnings and additional paid-

in capital. The portion allocated to additional paid-in capital is calculated on a pro rata basis of the shares to be

retired and the total shares issued and outstanding as of the date of retirement.

**Foreign Currency Translation and Transaction Gains and Losses**

The functional currencies of the Company's wholly owned subsidiaries in India, Canada and Japan are the

Indian Rupee, Canadian Dollar, and Yen, respectively. Accordingly, asset and liability accounts of these subsidiaries

are translated into U.S. dollars using the current exchange rate in effect at the balance sheet date and equity accounts

are translated into U.S. dollars using historical rates. The revenues and expenses are translated using the average

exchange rates in effect during the period, and gains and losses from foreign currency translation adjustments are

included as a component of accumulated other comprehensive income in the consolidated balance sheet. Foreign

currency translation adjustments are recorded in other comprehensive income (loss) in the consolidated statement of

operations and comprehensive loss and were $0.3 million during the year ended December 31, 2024.

Foreign currency transaction gains and losses are included in other income (expense), net in the consolidated

statement of operations and comprehensive loss and were not material during the year ended December 31, 2024.

**Comprehensive Loss**

The Company is required to report all components of comprehensive loss, including net loss, in the financial

statements in the period in which they are recognized. Comprehensive gain or loss is defined as a change in equity

of a business enterprise during a period, resulting from transactions and other events and circumstances from non-

owner sources. The Company's currency translation adjustment and unrealized gains and losses from marketable

securities are the components of other comprehensive income (loss) that are excluded from the reported net loss for

all periods presented.

**Note 5 – Revenue**

***Disaggregation of Revenue***

The Company recognizes revenue classified in hardware at a point in time, and revenue classified in cloud and

other services either at a point in time or over time. Revenue by point in time and over time was as follows (in

thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Hardware revenue recognized point in time......................................................................................... | $211965 |
| Cloud and other services revenue recognized point in time................................................................. | 628 |
| Cloud and other services revenue recognized over time...................................................................... | 77659 |
| Total revenue ................................................................................................................................... | $290252 |

---

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The deferred revenue balance represents payments received for performance obligations not yet satisfied. The

following table shows the changes in deferred revenue during the year ended December 31, 2024 (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Balance at beginning of period............................................................................................................. | $19226 |
| Deferred revenue additions during period........................................................................................ | 124133 |
| Revenue recognized during period................................................................................................... | (85937) |
| Balance at end of period....................................................................................................................... | $57422 |
| Less: Long-term portion of deferred revenue.................................................................................. | (18885) |
| Balance at end of period – current portion............................................................................................ | $38537 |

---

Revenue recognized during the year ended December 31, 2024 that was included in deferred revenue as of

December 31, 2023 was $13.7 million.

Contract assets represent deferred cost of sales related to revenue that has not yet been recognized and unbilled

receivables related to revenue that has been recognized but not yet invoiced. The balance of contract assets was

$10.2 million as of December 31, 2024 in prepaid expenses and other current assets. Contract liabilities are recorded

in deferred revenue and represent amounts that have been invoiced or received in advance but have not yet been

recognized as revenue.

Revenue allocated to remaining performance obligations that is unsatisfied (or partially unsatisfied), which

includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was

$90.4 million as of December 31, 2024. The Company expects to recognize approximately 61% of this revenue over

the next 12 months and the remainder thereafter. This excludes revenue related to performance obligations for

contracts with a length of one year or less.

**Note 6 – Segment and Geographical Information**

The Company operates as one operating and reportable segment. Operating segments are defined as components

of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker

("CODM"), which is the Company's Chief Executive Officer, in deciding how to allocate resources and assess

performance. Net loss is the Company's primary measure of profit or loss, and all costs and expenses categories on

the Company's consolidated statement of operations, as well as stock-based compensation, depreciation, and

amortization expenses, are significant. The Company's CODM reviews net profit or loss on a quarterly basis to

assess overall operating performance, evaluate profitability, and determine resource allocation, including capital

spending and operating expense priorities. See Note 14 for additional information about the Company's stock-based

compensation expense. See Note 10 for additional information about the Company's depreciation and amortization

expense. The Company's other segment items primarily includes change in fair value of forward contract liabilities,

and interest and dividend income. The measure of segment assets is reported on the consolidated balance sheet as

total assets.

Revenue by geographic area is designated based upon the billing location of the customer. Revenue by

geographic areas was as follows (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| United States......................................................................................................................................... | $282685 |
| Europe................................................................................................................................................... | 7567 |
| Total revenue.................................................................................................................................... | $290252 |

---

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

As of December 31, 2024, substantially all of the Company's property and equipment was located in the United

States.

**Note 7 – Net Loss Per Share**

Basic net loss per share is computed by dividing reported net loss attributable to common stockholders by the

weighted-average number of common shares outstanding for the reported period.

The Company's potential common share equivalents were as follows (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Redeemable convertible preferred stock............................................................................................... | 82899 |
| Restricted stock..................................................................................................................................... | 4909 |
| Early exercised shares subject to repurchase........................................................................................ | 1373 |
| Options to purchase common stock...................................................................................................... | 35034 |
| Total potential common stock excluded from net loss per share .................................................... | 124215 |

---

In computing diluted earnings per share, common share equivalents are not considered in periods in which a net

loss is reported, as the inclusion of the common share equivalents would be antidilutive. Since the Company was in

a net loss for all periods presented in these consolidated financial statements, diluted net loss per share was the same

as basic net loss per share.

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
|  | **(in thousands,** <br>**except per share** <br>**data)**<br>|
| **Numerator:** |  |
| Net loss............................................................................................................................................. | $(481602) |
| Deemed dividend upon issuance of Series F-1 redeemable convertible preferred stock................. | (3182) |
| Net loss attributable to common stockholders................................................................................. | $(484784) |
| **Denominator:** |  |
| Weighted-average common shares outstanding............................................................................... | 48972 |
| Net loss per common share – basic and diluted.................................................................................... | $(9.90) |

---

**Note 8 – Investments**

The Company classifies its U.S. Treasury securities, which are accounted for as available-for-sale, and time

deposits within Level 2 in the fair value hierarchy because it uses quoted market prices to the extent available or

alternative pricing sources and models utilizing market observable inputs to determine fair value. There were no

transfers between Level 1 and Level 2 as of December 31, 2024.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following tables summarize the Company's investments (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Fair Value** <br>**Hierarchy**<br>| **Amortized** <br>**Cost**<br>| **Gross** <br>**Unrealized** <br>**Gains**<br>| **Gross** <br>**Unrealized** <br>**Losses**<br>| **Accrued** <br>**Interest** <br>| **Fair Value** |
| U.S. Treasury securities......... | Level 2 | $115124 | $1204 | $— | $6 | $116334 |
| Time deposits......................... | Level 2 | 609 |  |  |  | 609 |
| Total.................................. |  | $115733 | $1204 | $— | $6 | $116943 |

---

The Company recognized no gross realized gains or losses for the year ended December 31, 2024. The

Company reflects these gains and losses as a component of other income (expense), net.

All of the Company's investments have a stated contractual maturity date of less than one year.

**Note 9 – Fair Value Measurements**

Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements**  | **Fair Value Measurements**  | **Fair Value Measurements**  | |
| <br>**Balance Sheet Captions** | <br>**As of** <br>**December 31,** <br>**2024**<br>| **Level 1** | **Level 2** | **Level 3** | **Total Gains** <br>**(Losses)**<sup>(1)</sup><br>|
| Cash and cash equivalents........... |  |  |  |  |  |
| Money market funds.............. | $216748 | $216748 | $— | $— | $— |
| Restricted cash............................ |  |  |  |  |  |
| Money market funds.............. | 361757 | 361757 |  |  |  |
| Investments................................. |  |  |  |  |  |
| U.S. Treasury securities......... | 116334 |  | 116334 |  | 1204 |
| Time deposits......................... | 609 |  | 609 |  |  |
| Total Investments.............. | 116943 |  | 116943 |  | 1204 |
| Forward contract liability............ | 363336 |  |  | 363336 | (401264) |
| Other liabilities............................ |  |  |  |  |  |
| Warrants................................. | $— | $— | $— | $— | $(165) |

---

_______________

(1)Unrealized gains from the remeasurement of U.S. Treasury securities has been recognized in AOCI. Losses

from remeasurement of the Forward contract liability and Warrants have been recognized as other income

(expense).

**Note 10 – Balance Sheet Details**

Inventories was composed of the following (in thousands):

---

| | |
|:---|:---|
|  | **As of December 31,** |
|  | **2024** |
| Raw materials........................................................................................................................................ | $77168 |
| Work in progress................................................................................................................................... | 37838 |
| Finished goods...................................................................................................................................... | 59486 |
| Total inventories............................................................................................................................... | $174492 |

---

As of December 31, 2024, the Company's provision for excess and obsolete inventory was $0.9 million.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

During the year ended December 31, 2024, the Company recorded a charge of approximately $3.6 million to

cost of sales related to provision for excess, obsolete, and scrapped inventory, primarily related to the transition to

the next generation of the Company's product offering.

Prepaid expenses and other current assets consisted of the following (in thousands):

---

| | |
|:---|:---|
|  | **As of December 31,** |
|  | **2024** |
| Unbilled receivables.............................................................................................................................. | $9252 |
| Prepaid expenses................................................................................................................................... | 6461 |
| Other receivables.................................................................................................................................. | 2479 |
| Other current assets............................................................................................................................... | 1451 |
| Total prepaid expenses and other current assets.............................................................................. | $19643 |

---

Property and equipment, net consisted of the following (in thousands):

---

| | |
|:---|:---|
|  | **As of December 31,** |
|  | **2024** |
| Computer equipment............................................................................................................................. | $48251 |
| Software................................................................................................................................................ | 1584 |
| Machinery and equipment .................................................................................................................... | 4817 |
| Leasehold improvements...................................................................................................................... | 3950 |
| Furniture and fixtures............................................................................................................................ | 12 |
| Construction in progress....................................................................................................................... | 7775 |
| Property and equipment................................................................................................................... | 66389 |
| Less: accumulated depreciation............................................................................................................ | (23215) |
| Total property and equipment, net................................................................................................... | $43174 |

---

During the year ended December 31, 2024, the Company recognized $3.1 million, $6.5 million, and

$1.9 million of depreciation expense in cost of sales, research and development expenses, and general and

administrative expenses on the consolidated statement of operations, respectively.

Accrued and other current liabilities was composed of the following (in thousands):

---

| | |
|:---|:---|
|  | **As of December 31,** |
|  | **2024** |
| Accrued expenses.................................................................................................................................. | $58428 |
| Product warranty liability..................................................................................................................... | 17043 |
| Operating lease liability, current........................................................................................................... | 13303 |
| Accrued compensation.......................................................................................................................... | 9271 |
| Liability related to early exercised options........................................................................................... | 8534 |
| Other..................................................................................................................................................... | 3736 |
| Total accrued and other current liabilities........................................................................................ | $110315 |

---

Accrued expenses includes $9.3 million pertaining to a litigation settlement. See Note 18 for additional

information.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Other liabilities were composed of the following (in thousands):

---

| | |
|:---|:---|
|  | **As of December 31,** |
|  | **2024** |
| Operating lease liability, non-current................................................................................................... | $27370 |
| Other liabilities...................................................................................................................................... | 5073 |
| Total other liabilities........................................................................................................................ | $32443 |

---

Other liabilities includes $4.7 million pertaining to a litigation settlement. See Note 18 for additional

information.

**Note 11 – Other Expense, Net**

Other expense, net was comprised of the following (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Change in fair value of forward contract liabilities.............................................................................. | $(401264) |
| Interest and dividend income................................................................................................................ | 23228 |
| Other..................................................................................................................................................... | (201) |
| Total other expense, net................................................................................................................... | $(378237) |

---

**Note 12 – Redeemable Convertible Preferred Stock**

The Company had the following shares of redeemable convertible preferred stock, $0.00001 par value per

share, authorized, issued, and outstanding as of December 31, 2024 (in thousands, except for share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As of December 31, 2024** | **Shares** <br>**Authorized**<br>| **Shares Issued** <br>**and Outstanding**<br>| **Liquidation** <br>**Preference**<br>| **Net Carrying** <br>**Value**<br>|
| Series A redeemable convertible preferred stock.. | 31731394 | 31731394 | $26972 | $26924 |
| Series B redeemable convertible preferred stock... | 9076079 | 9076079 | 25000 | 24955 |
| Series C redeemable convertible preferred stock... | 7264680 | 7264680 | 65000 | 64952 |
| Series D redeemable convertible preferred stock.. | 4943849 | 4943849 | 79822 | 79735 |
| Series E redeemable convertible preferred stock... | 14916649 | 14916649 | 272096 | 273301 |
| Series F redeemable convertible preferred stock... | 9168419 | 9168419 | 254376 | 254191 |
| Series F-1 redeemable convertible preferred stock | 28649385 | 5798089 | 85000 | 126008 |
| Total.................................................................. | 105750455 | 82899159 | $808266 | $850066 |

---

In May 2024, the Company entered into a Series F-1 redeemable convertible preferred stock purchase

agreement (the "Series F-1 Preferred Stock Agreement") with various investors to issue up to 27,285,129 shares of

the Company's Series F-1 redeemable convertible preferred stock ("Series F-1 Preferred Stock"), of which

22,851,296 shares were allocated to be purchased by G42 for an aggregate purchase price of $335 million, subject to

regulatory approval (the "G42 Primary Purchase"). The agreement also provided G42 with an option to purchase

certain additional shares in the Company at a 17.5% discount to the then-current fair market value, contingent upon

G42 purchasing between $500.0 million and $5.0 billion of additional products and services (the "G42 Option"). In

July 2024, the Company and G42 filed a Joint Voluntary Notice with the Committee on Foreign Investment in the

United States ("CFIUS") seeking regulatory approval of the G42 Primary Purchase, which remained pending

through the end of 2024.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The Series F-1 Preferred Stock Agreement was subsequently amended in July 2024 to increase the total number

of shares of Series F-1 Preferred Stock offered for sale to 28,649,385 shares, and amended and restated in September

2024 to change the securities to be purchased by G42 from Series F-1 Preferred Stock to Series F-2 redeemable

convertible preferred stock ("Series F-2 Preferred Stock"), which had the same rights, preferences and privileges as

the Series F-1 Preferred Stock except voting rights (as amended and restated, the "Series F-1 and F-2 Preferred

Stock Purchase Agreement"). Between July and September 2024, all shares of the Series F-1 Preferred Stock not

allocated to the G42 Primary Purchase were purchased by various investors for gross proceeds of $85 million. The

Series F-1 and F-2 Preferred Stock Purchase Agreement provided that either the Company or G42 could terminate

the agreement if the closing of the G42 Primary Purchase does not occur by April 15, 2025.

Following engagement with CFIUS, the Company and G42 agreed in principle in the first quarter of 2025 to

amend the Series F-1 and F-2 Preferred Stock Purchase Agreement to remove G42 as a party, and to enter into a new

stock purchase agreement for the purchase of non-voting redeemable convertible preferred stock if G42

consummates the G42 Primary Purchase. The Company and G42 also agreed in principle to revise the G42 May

2024 Agreement to remove product pricing and volume commitments. Based on the foregoing representations,

CFIUS granted the Company's request to withdraw the Joint Voluntary Notice on March 27, 2025.

Because the G42 Primary Purchase was not consummated by April 15, 2025, no new stock purchase agreement

was ultimately entered into, and consistent with the agreement in principle, the Series F-1 and F-2 Agreement was

restated in the third quarter of 2025 to remove G42 as a party, including the termination of the G42 Option. The G42

May 2024 Agreement was also terminated in its entirety.

The commitments made by certain investors to purchase shares of the Series F-1 Preferred Stock and Series F-2

Preferred Stock at a future date for a fixed price of $14.66 per share represented a forward contract between the

Company and the counterparties. Shares of the Series F-2 Preferred Stock were pari passu with shares of the Series

F-1 Preferred Stock, with the exception that the shares of Series F-2 Preferred Stock did not carry voting rights, and

had the same economic value. The forward contracts are classified as a liability and were remeasured to fair value at

each reporting date, with changes in fair value recorded to other income (expense), net. In September 2024, one of

the investors settled their forward contract liability by purchasing shares of Series F-1 redeemable convertible

preferred stock, and that forward contract was remeasured at a fair value of $27.02 per share as of the settlement

date. The forward contracts were considered to be a Level 3 liability in the fair value hierarchy due to certain

unobservable inputs. The primary input in the valuation of the forward contract liability were the fair values of the

Series F-1 Preferred Stock and Series F-2 Preferred Stock, which were determined in accordance with the applicable

elements of the American Institute of Certified Public Accountants guide, Valuation of Privately Held Company

Equity Securities Issued as Compensation, and derived from a hybrid method that considered both an option pricing

model ("OPM") and the probability weighted expected return method ("PWERM") to allocate the values among the

various classes of securities to arrive at the fair values of the Series F-1 Preferred Stock and Series F-2 Preferred

Stock. The OPM was based on the Black-Scholes-Merton option pricing model, which allowed for the identification

for a range of possible future outcomes, each with an associated probability. The OPM was appropriate to use when

the range of possible future outcomes was difficult to predict and thus created highly speculative forecasts. PWERM

involved a forward-looking analysis of the possible future outcomes of the enterprise including an initial public

offering as well as non-initial public offering market-based outcomes. As of December 31, 2024, the fair value of

the Series F-2 Preferred Stock was $30.56 per share.

The following table provides a reconciliation of the beginning and ending balances for forward contract liability

measured at fair value using significant unobservable inputs (in thousands):

---

| | |
|:---|:---|
| Balance as of January 1, 2024............................................................................................................... | $— |
| Fair value at inception of contract.................................................................................................... |  |
| Change in fair value......................................................................................................................... | 401264 |
| Settlement of Series F-1 redeemable convertible preferred stock forward contract liability .......... | (37928) |
| Balance as of December 31, 2024......................................................................................................... | $363336 |

---

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

For the year ended December 31, 2024, the change in fair value related to forward contract liability was

recognized in other income (expense), net.

**Note 13 – Common Stock**

As of December 31, 2024, the Company was authorized to issue 204,519,000 shares of common stock,

$0.00001 par value per share. As of December 31, 2024, the Company had 53,372,691 shares of common stock

issued and outstanding, of which 1,373,428 shares of common stock were subject to repurchase as of such date for

early exercised stock options. As of December 31, 2024, the Company had 300,138 shares of common stock held as

treasury shares, which may be used for issuance under the Equity Incentive Plan. All shares that were issued upon

early exercise of stock options are considered legally issued and outstanding. However, for accounting purposes,

only shares that are fully vested or are not subject to repurchase are considered issued and outstanding.

Below is a reconciliation of shares issued and outstanding:

---

| | |
|:---|:---|
|  | **December 31,** |
|  | **2024** |
| Total shares of common stock legally issued and outstanding (including shares issued upon early <br>exercise of stock options)..................................................................................................................<br>| 53372691 |
| Less: Shares subject to repurchase for early exercised stock options................................................... | (1373000) |
| Total shares issued and outstanding not subject to repurchase........................................................ | 51999691 |

---

The voting, dividend, and liquidation rights of the holders of the Company's shares of common stock are

subject to and qualified by the rights, powers, and preferences of the holders of shares of the Company's redeemable

convertible preferred stock. Each share of common stock entitles the holder to one vote on all matters submitted to a

vote of the Company's stockholders. Common stockholders are entitled to receive dividends, if any, as may be

declared by the board of directors, subject to the preferential dividend rights of the preferred shares. Through

December 31, 2024, no cash dividends had been declared or paid by the Company.

***Warrants***

In 2020, the Company entered into an equity arrangement with one of its customers whereby the Company

issued a warrant that is exercisable for up to 68,213 shares of its Series E redeemable convertible preferred stock.

The warrant is classified as a liability and remeasured to fair value and falls under Level 3 of the fair value

hierarchy. The Company provided services and issued the warrant to the customer, and the customer paid the

consideration to the Company for the provision of services. The warrant had a contractual term of seven years and

an exercise price of $0.00001 per share. The customer was able to either exercise the warrant at the exercise price or

convert a portion of the warrant into a number of shares of the Company's Series E redeemable convertible preferred

stock adjusted to equal the fair market value, less the exercise price. The warrant was exercised and settled in August

2024. The fair value of warrants is determined using a Black-Scholes option-pricing model as of the grant date. The

amount representing the fair value of the equity provided to the customer from the warrant is recognized as

adjustments of revenue in the consolidated statement of operations and comprehensive loss over the term of such

commercial agreement or based on the achievement of certain performance targets in accordance with ASC 505-50.

As of the settlement date, fair value of the warrant accrued was determined using the following assumptions:

---

| | |
|:---|:---|
|  | **August 7, 2024** |
| Remaining contractual life (years)........................................................................................................ | 3.00 |
| Expected volatility (%)......................................................................................................................... | 59.48 |
| Expected risk-free interest rate (%)...................................................................................................... | 3.81 |
| Dividend yield (%)................................................................................................................................ |  |

---

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following table provides a reconciliation of the beginning and ending balances for the Level 3 warrant

liability measured at fair value using significant unobservable inputs (in thousands):

---

| | |
|:---|:---|
|  | **Warrant** <br>**Liability**<br>|
| Balance as of January 1, 2024............................................................................................................... | $1113 |
| Change in fair value......................................................................................................................... | 165 |
| Exercise and settlement of warrant liability..................................................................................... | (1278) |
| Balance as of December 31, 2024......................................................................................................... | $— |

---

For the year ended December 31, 2024, the change in fair value related to the warrant was recognized in other

expense, net.

**Note 14 – Stock-Based Compensation**

The Equity Incentive Plan provides for the Company to grant ISOs, NSOs, RSUs, and RSAs to employees,

advisers, and directors. As of December 31, 2024, there were 65,711,838 equity awards authorized, respectively.

***Stock Options***

Stock options represent the right to purchase shares of common stock on the date of exercise at a stated exercise

price. The exercise price of a stock option generally must be at least equal to the fair market value of the common

stock on the date of grant. Options vest over periods of two years or more and are exercisable over a period of time

not to exceed 10 years from the grant date. For the year ended December 31, 2024, the Company recorded aggregate

stock-based compensation expense of $58.6 million.

Approximately $1.0 million of the compensation expense recognized for each of the year ended December 31,

2024, was attributed to certain share-based awards, which provided the employee the option to choose between

equity or cash, of which approximately $0.6 million was included in accrued and other current liabilities on the

consolidated balance sheet as of December 31, 2024.

Approximately $30.7 million of the compensation expense recognized for the year ended December 31, 2024,

was attributed to sales of shares of common stock by certain current and former employees of the Company to

certain economic interest holders in the Company, through secondary market transactions, where the excess price

paid above fair value for shares was recorded as stock-based compensation expense.

The terms of the plan permit certain option holders to exercise options before their options are vested, subject to

certain limitations. Upon early exercise, the awards become subject to a restricted stock agreement. The shares of

restricted stock granted upon early exercise of the options are subject to the same vesting provisions in the original

stock option awards. Shares issued as a result of early exercise that have not been vested are subject to repurchase by

the Company upon termination of the purchaser's employment, at the price paid by the purchaser. Such shares are

not deemed to be issued for accounting purposes until they vest.

The liability is reclassified into common stock and additional paid-in capital as the shares vest and the

repurchase right lapses. As of December 31, 2024, 1,373,000 unvested shares were held by employees. Accordingly,

the Company recorded the unvested portion of the exercise proceeds of $8.5 million as a liability from the early

exercise in the accompanying consolidated balance sheet as of December 31, 2024.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the Company's stock option activity and related information:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of** <br>**Shares**<br>| **Weighted** <br>**Average** <br>**Exercise Price**<br>| **Aggregate** <br>**Intrinsic Value** <br>**(in thousands)**<br>| **Weighted** <br>**Average** <br>**Remaining** <br>**Life**<br>|
| Outstanding, as of January 1, 2024.................................. | 33705603 | $4.02 | $59924 | 7.24 |
| Granted........................................................................ | 10637779 | $6.60 |  |  |
| Exercised during period............................................... | (8016521) | $3.46 |  |  |
| Forfeited...................................................................... | (1284296) | $5.29 |  |  |
| Expired........................................................................ | (8636) | $7.37 |  |  |
| Outstanding and Exercisable, as of December 31, 2024.. | 35033929 | $4.85 | $777294 | 7.25 |

---

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock

options and the fair value of the Company's shares of common stock for those options that had exercise prices lower

than the fair value of the Company's shares of common stock. The total intrinsic value for stock options exercised

during the year ended December 31, 2024, was $72.0 million.

The weighted-average grant date fair value of options granted was $5.21 per share for the year ended

December 31, 2024.

As of December 31, 2024, the total remaining unrecognized compensation expense related to non-vested stock

options was $60.8 million which will be amortized over the weighted-average period of 2.33 years.

The fair value of each option award is determined on the date of grant using the Black-Scholes option-pricing

model. The calculation of fair value includes several assumptions that require management's judgment. The absence

of a public market for the Company's common stock requires the Company's board of directors with assistance from

management and external valuation experts, to estimate the fair value of its common stock for purposes of granting

options and for determining stock-based compensation expense by using a reasonable method of valuation and

considering several objective and subjective factors, including obtaining contemporaneous independent third-party

valuations, actual and forecasted operating and financial results, market conditions and performance of comparable

publicly traded companies, developments and milestones in the Company, the rights and preferences of redeemable

convertible preferred stock and common stock, and transactions involving the Company's stock. The fair value of

the Company's common stock was determined in accordance with applicable elements of the American Institute of

Certified Public Accountants guide, Valuation of Privately Held Company Equity Securities Issued as

Compensation.

The estimated fair value of stock options was determined using the Black-Scholes option-pricing model with the

following weighted-average assumptions:

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Expected term of options (years).......................................................................................................... | 6.01 |
| Expected volatility (%)......................................................................................................................... | 59.2 |
| Risk-free interest rate (%)..................................................................................................................... | 3.68 - 4.68 |
| Expected dividend yield (%)................................................................................................................. |  |

---

*Expected term:* The expected term of the stock options represents the period of time stock options are expected

to be outstanding and is based on the "simplified method." Under this method, the term is estimated using the

midpoint between the requisite service period and the contractual term of the option. This method is used due to the

lack of sufficient historical exercise data.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

*Expected volatility:* The expected volatility is a measure of the amount by which a financial variable, such as a

share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. As

the Company does not yet have a sufficient history of its own volatility, the Company has identified several public

entities of similar complexity and industry and calculates historical volatility based on the volatilities of these

companies.

*Risk-free interest rate:* The risk-free interest rate is based on U.S. Treasury yield curve in effect at the time of

grant.

*Expected dividend yield:* No dividends have been paid or expected to be paid by the Company.

Total stock-based compensation expense for year ended December 31, 2024 was as follows (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Cost of sales.......................................................................................................................................... | $921 |
| Research and development................................................................................................................... | 41397 |
| Sales and marketing.............................................................................................................................. | 8723 |
| General and administrative................................................................................................................... | 7523 |
| Total stock-based compensation expense............................................................................................. | $58564 |

---

***RSUs***

RSUs represent a right to receive one share of common stock for each RSU that vests. Unless otherwise

determined by the Compensation Committee at the time of grant, vesting ceases on the date the participant no longer

provides services to the Company and unvested shares are forfeited. If an RSU has not been forfeited, then on the

date specified in the RSUs, the Company delivers to the holder a number of whole shares of common stock.

Dividend equivalents, if any, are not credited in respect of shares covered by the RSUs, except as otherwise

permitted by the Compensation Committee. As of December 31, 2024, the Company had 4,909,256 non-vested

RSUs. The Company has granted RSUs that vest on satisfaction of both service- and liquidity-based vesting

conditions.

The following table summarizes RSU activity and related information:

---

| | | |
|:---|:---|:---|
|  | **Number of** <br>**Shares**<br>| **Weighted** <br>**Average Grant** <br>**Date Fair Value**<br>|
| Non-Vested, as of January 1, 2024............................................................................ | 1516408 | $5.36 |
| Granted.................................................................................................................. | 3404848 | $23.77 |
| Vested................................................................................................................... |  | $— |
| Forfeited................................................................................................................ | 12000 | $24.56 |
| Non-Vested, as of December 31, 2024...................................................................... | 4909256 | $18.08 |

---

As of December 31, 2024, the total remaining unrecognized compensation expense related to non-vested

restricted stock was $79.1 million. This unrecognized compensation expense will be recognized when the liquidity-

based vesting condition becomes probable for certain restricted stock that have a performance condition, and

service-based vesting condition will be satisfied over the weighted-average period of 1.75 years. No restricted stock

vested in 2024.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**Note 15 – Income Taxes**

The components of loss before income taxes are as follows (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Domestic............................................................................................................................................... | $(482424) |
| Foreign.................................................................................................................................................. | 2749 |
| Loss before income taxes...................................................................................................................... | $(479675) |

---

The components of the income tax expense are as follows (in thousands):

---

| | |
|:---|:---|
|  | **December 31,** |
|  | **2024** |
| Current |  |
| Federal.............................................................................................................................................. | $527 |
| State.................................................................................................................................................. | 898 |
| Foreign............................................................................................................................................. | 213 |
| Total current tax expense...................................................................................................................... | 1638 |
| Deferred |  |
| Federal.............................................................................................................................................. |  |
| State.................................................................................................................................................. |  |
| Foreign............................................................................................................................................. | 289 |
| Total deferred tax expense.................................................................................................................... | 289 |
| Total income tax expense...................................................................................................................... | $1927 |

---

A reconciliation of the Company's recorded income tax expense to the U.S. statutory rate is as follows (in

thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Income taxes computed at U.S. federal statutory rate.......................................................................... | $(100732) |
| State taxes............................................................................................................................................. | 898 |
| Foreign rate differential........................................................................................................................ | 327 |
| Forward contract revaluation................................................................................................................ | 84265 |
| Stock based compensation.................................................................................................................... | 5111 |
| Tax credits, net of FIN48 reserves........................................................................................................ | (3298) |
| Change in valuation allowance............................................................................................................. | 15712 |
| Other..................................................................................................................................................... | (356) |
| Income tax expense............................................................................................................................... | $1927 |

---

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Deferred income taxes arise from temporary differences between the carrying value of assets and liabilities for

financial reporting purposes and income tax reporting purposes, as well as net operating losses and tax credit

carryforwards. Significant components of the Company's deferred tax assets and liabilities are as follows:

---

| | |
|:---|:---|
|  | **December 31,** |
|  | **2024** |
| Deferred Tax Assets: |  |
| Net operating losses......................................................................................................................... | $86111 |
| Allowances and accruals.................................................................................................................. | 11107 |
| Tax credits........................................................................................................................................ | 30876 |
| Stock-based compensation............................................................................................................... | 7438 |
| Lease liability................................................................................................................................... | 9673 |
| Capitalized research and development............................................................................................. | 63796 |
| Other................................................................................................................................................. | 439 |
| Gross deferred tax assets....................................................................................................................... | 209440 |
| Less: Valuation Allowance................................................................................................................... | (200259) |
| Net deferred tax assets.......................................................................................................................... | 9181 |
| Deferred Tax Liabilities: |  |
| Right-of-use asset............................................................................................................................. | (8671) |
| Other................................................................................................................................................. | (916) |
| Gross deferred tax liabilities................................................................................................................. | (9587) |
| Net deferred tax liabilities..................................................................................................................... | $(406) |

---

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the

appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets

and establishes a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will

not be realized. The Company weighs all available positive and negative evidence, including its earnings history and

results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax

planning strategies. Due to the weight of objectively verifiable negative evidence, including its history of losses in

the United States, the Company believes that it is more likely than not that its U.S. federal and state deferred tax

assets will not be realized. Accordingly, the Company has recorded a valuation allowance on such deferred tax

assets. The valuation allowance against our various deferred tax assets increased by $16.0 million during the year

ended December 31, 2024.

As of December 31, 2024, the Company had federal, state, and foreign net operating loss carryforwards in the

amount of $272.6 million, $330.1 million, and $0, respectively, available to offset future taxable income. The

federal net operating loss has an indefinite carryforward period but is limited to offset 80% of taxable income in the

year utilized. The state net operating loss carryforwards have various carryover periods and will begin to expire as

early as 2036.

As of December 31, 2024, the Company had federal, California, and Canadian research and development credit

carryforwards of $33.2 million, $27.6 million, and $1.9 million, respectively. The federal research and development

credits will begin to expire in 2038, the California research and development credits have no expiration, and the

Canadian research and development credits will begin to expire in 2041.

Utilization of our net operating loss and credits may be subject to annual limitations due to the ownership

change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The

Company's net operating loss carryforwards and credits could expire before utilization if subject to annual

limitations.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the activity related to the Company's unrecognized tax benefits (in thousands):

---

| | |
|:---|:---|
|  | **December 31,** |
|  | **2024** |
| Gross unrecognized tax benefits, beginning of year............................................................................. | $25739 |
| Gross increases related to prior-year positions..................................................................................... | 34 |
| Gross decreases related to prior-year positions.................................................................................... |  |
| Gross increases related to current-year positions.................................................................................. | 5772 |
| Gross unrecognized tax benefits, end of year....................................................................................... | $31545 |

---

All of the Company's tax years remain open for examination by U.S. federal and state tax authorities. The non-

U.S. tax returns remain open for examination for the years 2020 and onwards. Due to our federal and state valuation

allowance, none of the unrecognized tax benefits as of December 31, 2024 would affect the effective tax rate if

recognized. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. We do

not believe our unrecognized tax benefits will significantly change in the next 12 months.

U.S. income tax has not been recognized on the excess of the amount for financial reporting over the tax basis

of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. As a result of the "Tax

Cuts and Jobs Act of 2017" ("Tax Act"), the tax impact of future distributions of foreign earnings would generally

be limited to withholding tax from local jurisdictions. The amount of the deferred tax liability on the excess of the

amount for financial reporting over the tax basis of investments in foreign subsidiaries is not material.

**Note 16 – Leases**

The Company's lease obligations consist of operating leases for data centers and offices. The extension periods

have not been included in the determination of the right-of-use assets or the lease liability for operating leases as the

Company did not consider it reasonably certain that it would exercise these options. The Company has elected not to

recognize right-of-use assets and operating lease liabilities that arise from short-term (12 months or less) leases for

any class of underlying assets. The Company has elected not to separate lease and non-lease components for any

class of underlying asset.

In August 2024, the Company entered into a 39-month lease agreement with the owner and landlord of a data

center in Stockton, California, adding capacity to the November 2023 lease at the facility. The lease commenced

September 1, 2024, terminates on November 30, 2027, and is an operating lease. Monthly recurring charges for rent

and power are $0.5 million per month from December 2024 through December 2025, increasing to $0.6 million per

month through November 2027. The agreement also includes variable monthly charges for power usage in excess of

fixed contractual amounts. Monthly recurring charges for rent and power are abated during the first three months of

the term of the lease.

In June 2024, the Company entered into an agreement to modify the lease for its headquarters located in

Sunnyvale, California, to extend the term of the existing lease from December 1, 2024 to November 30, 2027. The

lease is an operating lease, and the Company expects to pay total rent of approximately $5.5 million for the extended

term of the lease. The agreement also includes variable monthly charges for building operating costs.

In February 2024, the Company entered into a 55-month lease agreement for office space in Toronto, Canada.

The lease commenced April 8, 2024, and terminates on March 16, 2029. The lease is an operating lease, and the

Company expects to pay a total rent of $1.2 million for the term of the lease. The agreement also includes variable

monthly charges for building operating costs.

In November 2023, the Company entered into a 41-month lease agreement with the owner and landlord of a

data center in Stockton, California. The lease commenced January 4, 2024, terminates on May 31, 2027, and is an

operating lease. Monthly recurring charges for rent and power are $0.6 million per month from June 2024 through

May 2026, increasing to $0.7 million per month through May 2027. The agreement also includes variable monthly

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

charges for metered power usage. Monthly recurring charges for rent and power shall be abated during the first five

months of the term of the lease.

As of December 31, 2024, future minimum lease payments of the Company's operating lease liabilities were

due as follows (in thousands):

---

| | |
|:---|:---|
| | **December 31,** <br>**2024**<br>|
| <br>**Year ending December 31,** | **Operating Leases** |
| 2025..................................................................................................................................................... | $16833 |
| 2026..................................................................................................................................................... | 17346 |
| 2027..................................................................................................................................................... | 12211 |
| 2028..................................................................................................................................................... | 254 |
| Thereafter............................................................................................................................................. | 32 |
| Total future lease payments................................................................................................................. | $46676 |
| Less: Imputed interest.......................................................................................................................... | (6003) |
| Present value of operating lease liabilities........................................................................................... | $40673 |

---

As of December 31, 2024, the remaining weighted-average lease term was 2.7 years, and weighted-average

discount rate used to determine the operating lease liability was 10.6%. During the year ended December 31, 2024,

the Company incurred total operating lease expenses of $10.5 million. During the year ended December 31, 2024,

the Company incurred variable lease costs of $0.3 million. During the year ended December 31, 2024, the

Company's costs related to short-term lease arrangements were $8.1 million.

Supplemental cash flow information related to leases was as follows (in thousands):

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,**<br>|
|  | **2024** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |
| Operating cash flows for operating leases....................................................................................... | $6442 |
| Right-of-use assets obtained in exchange for lease obligations: |  |
| Operating leases............................................................................................................................... | $43659 |

---

**Note 17 – Commitments and Contingencies**

The Company has entered into certain contracts to receive consulting and other services that represent

unconditional purchase obligations to purchase goods or services that are enforceable and legally binding. Purchase

commitments exclude agreements that are cancellable without penalty and unconditional purchase commitments

with a remaining term of one year or less. As of December 31, 2024, future payments related to non-cancelable

commitments under these contracts are due as follows: $10.4 million (2025), and $3.9 million (2026).

In the ordinary course of business, the Company may be subject from time to time to various proceedings,

lawsuits, disputes, or claims. Although the Company cannot predict with assurance the outcome of any litigation, it

does not believe there are currently any such actions that, if resolved unfavorable, would have a material impact on

the Company's financial condition, results of operations, or cash flows.

**CEREBRAS SYSTEMS INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**Note 18 – Subsequent Events**

The Company has evaluated all transactions through September 18, 2025, the date these consolidated financial

statements were available to be issued, and has determined that there are no other events that would require

disclosure in or adjustment to these financial statements except as discussed below.

In January and February 2025, the Company entered into 60-month lease agreements for new data centers in

Oklahoma City, Oklahoma and in Montreal, Canada. As a result monthly commitments for rent and power are

$2.0 million per month with an initial direct cost to set-up of $12.2 million.

In April 2021, Rex Computing, Inc. ("Rex") filed a patent infringement suit against the Company in the U.S.

District Court of Delaware, alleging that certain products of the Company infringe patents held by Rex. Without

admission as to the merits of the action, the parties entered into a settlement agreement on May 12, 2025, under

which the Company agreed to pay Rex $14.0 million in consideration of a full release of claims. The settlement

amount is payable in three equal installments. The first installment was paid on May 13, 2025 and the next two

installments will be paid on or before November 15, 2025 and May 15, 2026, respectively. Because the settlement

provides additional evidence about conditions that existed as of December 31, 2024, the Company has recognized

the related loss and accrued liability in the consolidated financial statements.

In May 2024, and as subsequently amended and restated in September 2024, the Company entered into the

Series F-1 and F-2 Preferred Stock Purchase Agreement with various investors pursuant to which the Company

agreed to issue and sell 5,798,089 shares of Series F-1 Preferred Stock and 22,851,296 shares of the Series F-2

Preferred Stock, each at a purchase price of $14.66 per share. Pursuant to the Series F-1 and F-2 Preferred Stock

Purchase Agreement, G42 agreed to purchase 22,851,296 shares of Series F-2 Preferred Stock for an aggregate

purchase price of $335.0 million by April 15, 2025, subject to approval by CFIUS. A letter agreement containing

certain investor rights and product pricing and volume commitments was also entered into in May 2024. See

Note 12 for additional information.

G42's proposed purchase of Series F-2 Preferred Stock was not consummated by April 15, 2025. No extension

or waiver of that date was executed, and no Series F-2 Preferred Stock was issued to G42.

![cerebraslogoa.jpg](cerebraslogoa.jpg)

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution**

The following table sets forth the costs and expenses, other than underwriting discounts and commissions,

payable by the registrant in connection with the sale of the Class A common stock being registered. All amounts are

estimates except for the Securities and Exchange Commission (the "SEC") registration fee, the Financial Industry

Regulatory Authority ("FINRA") filing fee, and the Nasdaq Stock Market LLC listing fee.

---

| | |
|:---|:---|
|  | **Amount to Be** <br>**Paid**<br>|
| SEC registration fee.............................................................................................................................. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \* |
| FINRA filing fee................................................................................................................................... | \* |
| Nasdaq Stock Market LLC listing fee.................................................................................................. | \* |
| Transfer agent's fees and expenses....................................................................................................... | \* |
| Printing and engraving expenses.......................................................................................................... | \* |
| Legal fees and expenses........................................................................................................................ | \* |
| Accounting fees and expenses.............................................................................................................. | \* |
| Blue Sky fees and expenses.................................................................................................................. | \* |
| Miscellaneous expenses........................................................................................................................ | \* |
| Total................................................................................................................................................. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \* |

---

_______________

\*To be completed by amendment.

**Item 14. Indemnification of Directors and Officers**

Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and

officers as well as other employees and individuals against expenses (including attorneys' fees), judgments, fines,

and amounts paid in settlement actually and reasonably incurred by such person in connection with any threatened,

pending, or completed actions, suits, or proceedings in which such person is made a party by reason of such person

being or having been a director, officer, employee, or agent to the registrant. The Delaware General Corporation

Law provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be

entitled under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise. Article 9 of the

registrant's amended and restated certificate of incorporation, to be in effect immediately prior to the completion of

this offering, provides for indemnification by the registrant of its directors, officers, and employees to the fullest

extent permitted by the Delaware General Corporation Law. The registrant has entered or will enter into

indemnification agreements with each of its current directors, executive officers, and certain other officers to provide

these directors and officers additional contractual assurances regarding the scope of the indemnification set forth in

the registrant's amended and restated certificate of incorporation and amended and restated bylaws, each to be in

effect immediately prior to the completion of this offering, and to provide additional procedural protections. There is

no pending litigation or proceeding involving a director or executive officer of the registrant for which

indemnification is sought.

Section 102(b)(7) of the Delaware General Corporation Law permits a corporation to provide in its certificate of

incorporation that a director or officer of the corporation shall not be personally liable to the corporation or its

stockholders for monetary damages for breach of fiduciary duty as a director or officer, except for liability (i) for

any breach of the director's or officer's duty of loyalty to the corporation or its stockholders, (ii) for acts or

omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) in the case

of directors, for unlawful payments of dividends or unlawful stock repurchases, redemptions, or other distributions,

or (iv) for any transaction from which the director or officer derived an improper personal benefit, provided that

officers may not be indemnified for actions by or in the right of the corporation. The registrant's amended and

restated certificate of incorporation, to be in effect immediately prior to the completion of this offering, provides for

such limitation of liability.

The registrant maintains standard policies of insurance under which coverage is provided (a) to its directors and

officers against loss rising from claims made by reason of breach of duty or other wrongful act and (b) to the

registrant with respect to payments that may be made by the registrant to such officers and directors pursuant to the

above indemnification provision or otherwise as a matter of law.

The proposed form of underwriting agreement to be filed as Exhibit 1.1 to this registration statement provides

for indemnification of directors and officers of the registrant by the underwriters against certain liabilities.

**Item 15. Recent Sales of Unregistered Securities**

Since January 1, 2023, the registrant made sales of the following unregistered securities:

***Option and Common Stock Issuances***

Since January 1, 2023, the registrant granted to its employees, consultants, and other service providers options

to purchase an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of its Class A common stock under its 2016 Equity Incentive Plan (as

amended, the "2016 Plan"), at exercise prices ranging from $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share.

Since January 1, 2023, the registrant issued and sold to its employees, consultants, and other service providers

an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of its Class A common stock upon the exercise of stock options under its 2016 Plan,

at exercise prices ranging from $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, for a weighted-average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

Since January 1, 2023, the registrant granted to its employees, consultants, and other service providers restricted

stock units covering an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of its Class A common stock under its 2016 Plan.

In August 2022, the registrant sold an aggregate of 599,880 shares of its Class A common stock to an accredited

investor at a purchase price of $16.7525 per share, for an aggregate purchase price of $10.0 million.

***Redeemable Convertible Preferred Stock Issuances***

In July and August 2024, the registrant sold an aggregate of 2,728,512 shares of its Series F-1 redeemable

convertible preferred stock to five accredited investors at a purchase price of $14.66 per share, for an aggregate

purchase price of $40.0 million. In September 2024, the registrant issued and sold 3,069,577 shares of its Series F-1

redeemable convertible preferred stock to an accredited investor at a purchase price of $14.66 per share, for a

purchase price of $45.0 million.

In August 2024, the registrant issued 68,213 shares of its Series E redeemable convertible preferred stock to an

accredited investor pursuant to a warrant with an exercise price of $0.00001 per share.

In September and October 2025, the registrant sold an aggregate of 30,359,557 shares of its Series G

redeemable convertible preferred stock to five accredited investors at a purchase price of $36.2324 per share, for an

aggregate purchase price of $1.1 billion.

The registrant believes these offers, sales, and issuances were exempt from registration under the Securities Act

of 1933, as amended (the "Securities Act"), in reliance upon Section 4(a)(2) of the Securities Act or Regulation D

promulgated thereunder, or Rule 701 promulgated under the Securities Act as transactions by an issuer not involving

a public offering or pursuant to benefit plans and contracts relating to compensation as provided under Rule 701.

The recipients of the securities in each of these transactions represented their intentions to acquire the securities for

investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate

legends were placed upon the stock certificates issued in these transactions. All recipients had adequate access,

through their relationships with the registrant, to information about the registrant.

**Item 16. Exhibits and Financial Statement Schedules**

See the Exhibit Index attached to this registration statement, which Exhibit Index is incorporated herein by

reference.

Schedules not listed above have been omitted because the information required to be set forth therein is not

applicable or is shown in the financial statements or notes thereto.

**Item 17. Undertakings**

(a)Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors,

officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the

registrant has been advised that in the opinion of the SEC such indemnification is against public policy as

expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for

indemnification against such liabilities (other than the payment by the registrant of expenses incurred or

paid by a director, officer, or controlling person of the registrant in the successful defense of any action,

suit, or proceeding) is asserted by such director, officer or controlling person in connection with the

securities being registered hereunder, the registrant will, unless in the opinion of its counsel the matter has

been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether

such indemnification by it is against public policy as expressed in the Securities Act and will be governed

by the final adjudication of such issue.

(b)The undersigned registrant hereby undertakes that:

(1)For purposes of determining any liability under the Securities Act, the information omitted from the

form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained

in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the

Securities Act shall be deemed to be part of this registration statement as of the time it was declared

effective.

(2)For the purpose of determining any liability under the Securities Act, each post-effective amendment

that contains a form of prospectus shall be deemed to be a new registration statement relating to the

securities offered therein, and the offering of such securities at that time shall be deemed to be the

initial bona fide offering thereof.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number**<br>| **Exhibit Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1\* | Amended and Restated Certificate of Incorporation, as currently in effect  |
| 3.2\* | Form of Amended and Restated Certificate of Incorporation, to be in effect immediately prior to the <br>completion of this offering <br>|
| 3.3 | Bylaws, as currently in effect  |
| 3.4\* | Form of Amended and Restated Bylaws, to be in effect immediately prior to the completion of this <br>offering<br>|
| 4.1\* | Reference is made to Exhibits 3.1 through 3.4 |
| 4.2\* | Form of Class A Common Stock Certificate  |
| 4.3 | Amended and Restated Investors' Rights Agreement, dated as of September 19, 2025, by and among <br>the Registrant and the investors listed therein <br>|
| 5.1\* | Opinion of Latham & Watkins LLP |
| 10.1(a) | Standard Industrial/Commercial Single-Tenant Lease, dated as of January 27, 2022, by and between <br>the Registrant and Xinbei Tech, Inc.<br>|
| 10.1(b) | First Amendment to Standard Industrial/Commercial Single-Tenant Lease, dated as of June 2, 2023, by <br>and between the Registrant and Xinbei Tech, Inc.<br>|
| 10.1(c) | Second Amendment to Standard Industrial/Commercial Single-Tenant Lease, dated as of June 4, 2024, <br>by and between the Registrant and Xinbei Tech, Inc.<br>|
| 10.2(a)# | 2016 Equity Incentive Plan, as amended |
| 10.2(b)# | Form of Notice of Stock Option Grant and Stock Option Agreement under the 2016 Equity Incentive <br>Plan<br>|
| 10.2(c)# | Form of Notice of Restricted Stock Unit Award Grant and Restricted Stock Unit Agreement under the <br>2016 Equity Incentive Plan<br>|
| 10.3(a)\*# | 2026 Incentive Award Plan |
| 10.3(b)\*# | Form of Stock Option Grant Notice and Stock Option Agreement under the 2026 Incentive Award Plan |
| 10.3(c)\*# | Form of Restricted Stock Unit Award Grant Notice and Restricted Stock Unit Award Agreement under <br>the 2026 Incentive Award Plan<br>|
| 10.4\*# | 2026 Employee Stock Purchase Plan |
| 10.5\*# | Non-Employee Director Compensation Program |
| 10.6\*# | Form of Indemnification and Advancement Agreement between the Registrant and each of its <br>Directors and Executive Officers<br>|
| 16.1 | Letter Regarding Change in Certifying Accountant |
| 21.1\* | List of Subsidiaries of the Registrant |
| 23.1\* | Consent of BDO USA, P.C., independent registered public accounting firm  |
| 23.2\* | Consent of Latham & Watkins LLP (included in Exhibit 5.1) |
| 24.1\* | Power of Attorney (reference is made to the signature page to the Registration Statement)  |
| 107.1\* | Filing Fee Table |

---

_______________

\*To be filed by amendment.

#Indicates management contract or compensatory plan.

†Portions of this exhibit (indicated by asterisks) have been omitted in accordance with Item 601(b)(10)(iv) of

Regulation S-K because they are both not material and are the type that the Registrant treats as private or

confidential.

+Portions of this exhibit have been omitted in accordance with Item 601(a)(5) of Regulation S-K. The Registrant

undertakes to furnish a copy of all omitted schedules and exhibits to the SEC upon its request.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this

registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of

Sunnyvale, State of California, on the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; day of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026.

---

| | |
|:---|:---|
| **CEREBRAS SYSTEMS INC.** | **CEREBRAS SYSTEMS INC.** |
| By: |  |
| Name: | Andrew D. Feldman |
| Title: | Chief Executive Officer |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes

and appoints Andrew D. Feldman, Robert Komin, and Shirley X. Li, and each of them, his or her true and lawful

attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name,

place, and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to

this registration statement and any and all additional registration statements pursuant to Rule 462(b) of the Securities

Act of 1933, as amended, and to file the same, with all exhibits thereto, and all other documents in connection

therewith, with the Securities and Exchange Commission, granting unto each said attorney-in-fact and agents full

power and authority to do and perform each and every act in person, hereby ratifying and confirming all that said

attorneys-in-fact and agents or either of them or their or his or her substitute or substitutes may lawfully do or cause

to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been

signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
|  | Chief Executive Officer, President, and Director<br>(Principal Executive Officer) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Andrew D. Feldman | Chief Executive Officer, President, and Director<br>(Principal Executive Officer) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Chief Financial Officer<br>(Principal Financial Officer) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Robert Komin | Chief Financial Officer<br>(Principal Financial Officer) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Chief Accounting Officer<br>(Principal Accounting Officer) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Yagnesh Patel | Chief Accounting Officer<br>(Principal Accounting Officer) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Paul Auvil | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Glenda Dorchak | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Thomas Lantzsch | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Lior Susan | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Steve Vassallo | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |
| Eric Vishria | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 |

---

## Exhibit 3.3

**Exhibit 3.3**

**<u>CEREBRAS SYSTEMS INC.</u>**

a Delaware Corporation

**<u>BYLAWS</u>**

As Adopted April 6, 2016

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**<u>CEREBRAS SYSTEMS INC.</u>**

a Delaware Corporation

**<u>BYLAWS</u>**

As Adopted April 6, 2016

**ARTICLE I.**

**STOCKHOLDERS**

**Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Meetings</u>**. Unless members of the Board of Directors of the Corporation (the "***Board***") are elected by written consent in lieu of an annual meeting, as permitted by Section 211 of the Delaware General Corporation Law (the "***DGCL***") and these Bylaws, an annual meeting of stockholders shall be held for the election of directors at such date and time as the Board shall each year fix. The meeting may be held either at a place, within or without the State of Delaware, or by means of remote communication as the Board in its sole discretion may determine. Any proper business may be transacted at the annual meeting.

**Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings</u>**. Special meetings of stockholders for any purpose or purposes may be called at any time by the Chairperson of the Board, the Chief Executive Officer, the President, the holders of shares of the Corporation that are entitled to cast not less than ten percent (10%) of the total number of votes entitled to be cast by all stockholders at such meeting, or by a majority of the "***Whole Board***," which shall mean the total number of authorized directors, whether or not there exist any vacancies in previously authorized directorships. Special meetings may not be called by any other person or persons. If a special meeting of stockholders is called by any person or persons <u>other than</u> by a majority of the members of the Board, then such person or persons shall request such meeting by delivering a written request to call such meeting to each member of the Board, and the Board shall then determine the time and date of such special meeting, which shall be held not more than one hundred twenty (120) days nor less than thirty-five (35) days after the written request to call such special meeting was delivered to each member of the Board. The special meeting may be held either at a place, within or without the State of Delaware, or by means of remote communication as the Board in its sole discretion may determine.

**Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Meetings</u>**. Notice of all meetings of stockholders shall be given in writing or by electronic transmission in the manner provided by law (including, without limitation, as set forth in Section 7.1.1 of these Bylaws) stating the date, time and place, if any, of the meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Unless otherwise required by applicable law or the Certificate of Incorporation of the Corporation (the "***Certificate of Incorporation***"), such notice shall be given not less than ten (10), nor more than sixty (60), days before the date of the meeting to each stockholder of record entitled to vote at such meeting.

**Section 1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjournments</u>**. The chairperson of the meeting shall have the power to adjourn the meeting to another time, date and place (if any). Any meeting of stockholders may adjourn from time to time, and notice need not be given of any such adjourned meeting if the

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time, date and place (if any) thereof and the means of remote communications (if any) by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken; *<u>provided</u>*, *<u>however</u>*, that if the adjournment is for more than thirty (30) days, or if a new record date is fixed for the adjourned meeting, then a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. At the adjourned meeting the Corporation may transact any business that might have been transacted at the original meeting. To the fullest extent permitted by law, the Board may postpone or reschedule any previously scheduled special or annual meeting of stockholders before it is to be held, in which case notice shall be provided to the stockholders of the new date, time and place, if any, of the meeting as provided in Section 1.3 above.

**Section 1.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum</u>**. At each meeting of stockholders the holders of a majority of the voting power of the shares of stock entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business, unless otherwise required by applicable law. If a quorum shall fail to attend any meeting, the chairperson of the meeting or the holders of a majority of the shares entitled to vote who are present, in person or by proxy, at the meeting may adjourn the meeting. Shares of the Corporation's stock belonging to the Corporation (or to another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation are held, directly or indirectly, by the Corporation), shall neither be entitled to vote nor be counted for quorum purposes; *<u>provided</u>*, *<u>however</u>*, that the foregoing shall not limit the right of the Corporation or any other corporation to vote any shares of the Corporation's stock held by it in a fiduciary capacity and to count such shares for purposes of determining a quorum.

**Section 1.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization</u>**. Meetings of stockholders shall be presided over by such person as the Board may designate, or, in the absence of such a person, the Chairperson of the Board, or, in the absence of such person, the President of the Corporation, or, in the absence of such person, such person as may be chosen by the holders of a majority of the voting power of the shares entitled to vote who are present, in person or by proxy, at the meeting. Such person shall be chairperson of the meeting and, subject to Section 1.11 hereof, shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of discussion as seems to him or her to be in order. The Secretary of the Corporation shall act as secretary of the meeting, but in such person's absence the chairperson of the meeting may appoint any person to act as secretary of the meeting.

**Section 1.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting; Proxies</u>**. Each stockholder entitled to vote at a meeting of stockholders, or to take corporate action by written consent without a meeting, may authorize another person or persons to act for such stockholder by proxy. Such a proxy may be prepared, transmitted and delivered in any manner permitted by applicable law. Except as may be required in the Certificate of Incorporation, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Unless otherwise provided by applicable law, the Certificate of Incorporation or these Bylaws, every matter other than the election of directors shall be decided by the affirmative vote of the holders of a majority of the voting power of the shares of stock

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entitled to vote on such matter that are present in person or represented by proxy at the meeting and are voted for or against the matter.

**Section 1.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Fixing Date for Determination of Stockholders of Record</u>**. In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or to take corporate action by written consent without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board may fix, except as otherwise required by law, in advance, a record date, which shall not precede the date upon which the resolution fixing the record date is adopted by the Board and which shall not be more than sixty (60), nor less than ten (10), days before the date of such meeting, nor, except as provided in Section 1.8.2 below, more than sixty (60) days prior to any other action. If no record date is fixed by the Board, then the record date shall be as provided by applicable law. To the fullest extent provided by law, a determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting: *<u>provided</u>*, *<u>however</u>*, that the Board may fix a new record date for the adjourned meeting.

**Section 1.9&nbsp;&nbsp;&nbsp;&nbsp;<u>List of Stockholders Entitled to Vote</u>**. A complete list of stockholders entitled to vote at any meeting of stockholders, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in the name of each stockholder, shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten (10) days prior to the meeting, either on a reasonably accessible electronic network as permitted by law (provided that the information required to gain access to the list is provided with the notice of the meeting) or during ordinary business hours at the principal place of business of the Corporation. If the meeting is held at a location where stockholders may attend in person, the list shall also be produced and kept at the time and place of the meeting during the whole time thereof and may be inspected by any stockholder who is present at the meeting. If the meeting is held solely by means of remote communication, then the list shall be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access the list shall be provided with the notice of the meeting.

**Section 1.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Action by Written Consent of Stockholders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Procedure</u>. Unless otherwise provided by the Certificate of Incorporation, any action required or permitted to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed in the manner permitted by law by the holders of outstanding stock having not less than the number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation by delivery to its registered office in the State of Delaware, to its principal place of business or to an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the agent of the Corporation's registered office in the State of

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Delaware shall be by hand or by certified or registered mail, return receipt requested. Written stockholder consents shall bear the date of signature of each stockholder who signs the consent in the manner permitted by law and shall be delivered to the Corporation as provided in Section 1.10.2 below. No written consent shall be effective to take the action set forth therein unless, within sixty (60) days of the earliest dated consent delivered to the Corporation in the manner required by law, written consents signed by a sufficient number of stockholders to take the action set forth therein are delivered to the Corporation in the manner required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Consent</u>. A telegram, cablegram or other electronic transmission consenting to an action to be taken and transmitted by a stockholder or proxy holder, or a person or persons authorized to act for a stockholder or proxy holder, shall be deemed to be written, signed and dated for the purposes of this section, provided that any such telegram, cablegram or other electronic transmission sets forth or is delivered with information from which the Corporation can determine (a) that the telegram, cablegram or other electronic transmission was transmitted by the stockholder or proxy holder or by a person or persons authorized to act for the stockholder or proxy holder and (b) the date on which such stockholder or proxy holder or authorized person or persons transmitted such telegram, cablegram or electronic transmission. The date on which such telegram, cablegram or electronic transmission is transmitted shall be deemed to be the date on which such consent was signed. No consent given by telegram, cablegram or other electronic transmission shall be deemed to have been delivered until such consent is reproduced in paper form and until such paper form shall be delivered to the Corporation by delivery to its registered office in the State of Delaware, its principal place of business or an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to a Corporation's registered office shall be made by hand or by certified or registered mail, return receipt requested. Notwithstanding the foregoing limitations on delivery, consents given by telegram, cablegram or other electronic transmission may be otherwise delivered to the principal place of business of the Corporation or to an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded if, to the extent and in the manner provided by resolution of the Board. Any copy, facsimile or other reliable reproduction of a consent in writing may be substituted or used in lieu of the original writing for any and all purposes for which the original writing could be used, provided that such copy, facsimile or other reproduction shall be a complete reproduction of the entire original writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Consent</u>. Prompt notice of the taking of corporate action by stockholders without a meeting by less than unanimous written consent of the stockholders shall be given to those stockholders who have not consented thereto in writing and, who, if the action had been taken at a meeting, would have been entitled to notice of the meeting, if the record date for such meeting had been the date that written consents signed by a sufficient number of holders to take the action were delivered to the Corporation as required by law. If the action which is consented to is such as would have required the filing of a certificate under the DGCL (the "***Certificate of Action***") if such action had been voted on by stockholders at a meeting thereof, then if the DGCL so requires, the certificate so filed shall state, in lieu of any statement required by the DGCL concerning any vote of stockholders, that written stockholder consent has been given in accordance with Section 228 of the DGCL.

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**Section 1.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Inspectors of Elections</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicability</u>. Unless otherwise required by the Certificate of Incorporation or by the DGCL, the following provisions of this Section 1.11 shall apply only if and when the Corporation has a class of voting stock that is: (a) listed on a national securities exchange; (b) authorized for quotation on an interdealer quotation system of a registered national securities association; or (c) held of record by more than two thousand (2,000) stockholders. In all other cases, observance of the provisions of this Section 1.11 shall be optional, and at the discretion of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Appointment</u>. The Corporation shall, in advance of any meeting of stockholders, appoint one or more inspectors of election to act at the meeting and make a written report thereof. The Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting of stockholders, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Inspector's Oath</u>. Each inspector of election, before entering upon the discharge of his duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of such inspector's ability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties of Inspectors</u>. At a meeting of stockholders, the inspectors of election shall (a) ascertain the number of shares outstanding and the voting power of each share, (b) determine the shares represented at a meeting and the validity of proxies and ballots, (c) count all votes and ballots, (d) determine and retain for a reasonable period of time a record of the disposition of any challenges made to any determination by the inspectors, and (e) certify their determination of the number of shares represented at the meeting, and their count of all votes and ballots. The inspectors may appoint or retain other persons or entities to assist the inspectors in the performance of the duties of the inspectors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Opening and Closing of Polls</u>. The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced by the chairperson of the meeting at the meeting. No ballot, proxies or votes, nor any revocations thereof or changes thereto, shall be accepted by the inspectors after the closing of the polls unless the Court of Chancery upon application by a stockholder shall determine otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Determinations</u>. In determining the validity and counting of proxies and ballots, the inspectors shall be limited to an examination of the proxies, any envelopes submitted with those proxies, any information provided in connection with proxies in accordance with any information provided pursuant to Section 21l(a)(2)(B)(i) of the DGCL, or Sections 21l(e) or 212(c)(2) of the DGCL, ballots and the regular books and records of the Corporation, except that the inspectors may consider other reliable information for the limited purpose of reconciling proxies and ballots submitted by or on behalf of banks, brokers, their nominees or similar persons which represent more votes than the holder of a proxy is authorized by the record owner to cast or more votes than the stockholder holds of record. If the inspectors consider other reliable information for the limited purpose permitted herein, the inspectors at the time they

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make their certification of their determinations pursuant to this Section 1.11 shall specify the precise information considered by them, including the person or persons from whom they obtained the information, when the information was obtained, the means by which the information was obtained and the basis for the inspectors' belief that such information is accurate and reliable.

**ARTICLE II.**

**BOARD OF DIRECTORS**

**Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Number; Qualifications</u>**. The Board shall consist of one or more members. The initial number of directors shall be Two (2), and, thereafter, unless otherwise required by law or the Certificate of Incorporation, shall be fixed from time to time by resolution of a majority of the Whole Board or the stockholders of the Corporation holding at least a majority of the voting power of the Corporation's outstanding stock then entitled to vote at an election of directors. No decrease in the authorized number of directors constituting the Board shall shorten the term of any incumbent director. Directors need not be stockholders of the Corporation.

**Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Election; Resignation; Removal; Vacancies</u>**. The Board shall initially consist of the person or persons elected by the incorporator or named in the Corporation's initial Certificate of Incorporation. Each director shall hold office until the next annual meeting of stockholders and until such director's successor is elected and qualified, or until such director's earlier death, resignation or removal. Any director may resign at any time upon written notice to the Corporation. Subject to the rights of any holders of Preferred Stock then outstanding: (a) any director or the entire Board may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors and (b) any vacancy occurring in the Board for any reason, and any newly created directorship resulting from any increase in the authorized number of directors to be elected by all stockholders having the right to vote as a single class, may be filled by the stockholders, by a majority of the directors then in office, although less than a quorum, or by a sole remaining director.

**Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Regular Meetings</u>**. Regular meetings of the Board may be held at such places, within or without the State of Delaware, and at such times as the Board may from time to time determine. Notice of regular meetings need not be given if the date, times and places thereof are fixed by resolution of the Board.

**Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings</u>**. Special meetings of the Board may be called by the Chairperson of the Board, the President or a majority of the members of the Board then in office and may be held at any time, date or place, within or without the State of Delaware, as the person or persons calling the meeting shall fix. Notice of the time, date and place of such meeting shall be given, orally, in writing or by electronic transmission (including electronic mail), by the person or persons calling the meeting to all directors at least four (4) days before the meeting if the notice is mailed, or at least twenty-four (24) hours before the meeting if such notice is given by telephone, hand delivery, telegram, telex, mailgram, facsimile, electronic mail or other means of electronic transmission. Unless otherwise indicated in the notice, any and all business may be transacted at a special meeting.

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**Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Remote Meetings Permitted</u>**. Members of the Board, or any committee of the Board, may participate in a meeting of the Board or such committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to conference telephone or other communications equipment shall constitute presence in person at such meeting.

**Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum; Vote Required for Action</u>**. At all meetings of the Board a majority of the Whole Board shall constitute a quorum for the transaction of business. If a quorum shall fail to attend any meeting, a majority of those present may adjourn the meeting to another place, date or time without further notice thereof. Except as otherwise provided herein or in the Certificate of Incorporation, or required by law, the vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board.

**Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization</u>**. Meetings of the Board shall be presided over by the Chairperson of the Board, or in such person's absence by the President, or in such person's absence by a chairperson chosen at the meeting. The Secretary shall act as secretary of the meeting, but in such person's absence the chairperson of the meeting may appoint any person to act as secretary of the meeting.

**Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Written Action by Directors</u>**. Any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or such committee, as the case may be, consent thereto in writing or by electronic transmission, and the writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board or committee, respectively, in the minute books of the Corporation. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

**Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Powers</u>**. The Board may, except as otherwise required by law or the Certificate of Incorporation, exercise all such powers and manage and direct all such acts and things as may be exercised or done by the Corporation.

**Section 2.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation of Directors</u>**. Members of the Board, as such, may receive, pursuant to a resolution of the Board, fees and other compensation for their services as directors, including without limitation their services as members of committees of the Board.

**ARTICLE III.**

**COMMITTEES**

**Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Committees</u>**. The Board may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of the committee, the member or members thereof present at any meeting of such committee who are not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at

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the meeting in place of any such absent or disqualified member. Any such committee, to the extent provided in a resolution of the Board, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation and may authorize the seal of the Corporation to be affixed to all papers that may require it; but no such committee shall have the power or authority in reference to the following matters: (a) approving, adopting, or recommending to the stockholders any action or matter (other than the election or removal of members of the Board) expressly required by the DGCL to be submitted to stockholders for approval or (b) adopting, amending or repealing any bylaw of the Corporation.

**Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Committee Rules</u>**. Unless the Board otherwise provides, each committee designated by the Board may make, alter and repeal rules for the conduct of its business. In the absence of such rules each committee shall conduct its business in the same manner as the Board conducts its business pursuant to Article II of these Bylaws.

**ARTICLE IV.**

**OFFICERS**

**Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Generally</u>**. The officers of the Corporation shall consist of a Chief Executive Officer (who may be the Chairperson of the Board or the President), a Secretary and a Treasurer and may consist of such other officers, including a Chief Financial Officer, Chief Technology Officer and one or more Vice Presidents, as may from time to time be appointed by the Board. All officers shall be elected by the Board: *<u>provided</u>*, *<u>however</u>*, that the Board may empower the Chief Executive Officer of the Corporation to appoint any officer other than the Chairperson of the Board, the Chief Executive Officer, the President, the Chief Financial Officer or the Treasurer. Each officer shall hold office until such person's successor is appointed or until such person's earlier resignation, death or removal. Any number of offices may be held by the same person. Any officer may resign at any time upon written notice to the Corporation. Any vacancy occurring in any office of the Corporation by death, resignation, removal or otherwise may be filled by the Board.

**Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Chief Executive Officer</u>**. Subject to the control of the Board and such supervisory powers, if any, as may be given by the Board, the powers and duties of the Chief Executive Officer of the Corporation are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To act as the general manager and, subject to the control of the Board, to supervision, direction and control of the business and affairs of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Article I, Section 1.6, to preside at all meetings of the stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Article I, Section 1.2, to call special meetings of the stockholders to be held at such times and, subject to the limitations prescribed by law or by these Bylaws, at such places as he or she shall deem proper; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;To affix the signature of the Corporation to all deeds, conveyances, mortgages, guarantees, leases, obligations, bonds, certificates and other papers and

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instruments in writing which have been authorized by the Board or which, in the judgment of the Chief Executive Officer, should be executed on behalf of the Corporation; to sign certificates for shares of stock of the Corporation; and, subject to the direction of the Board, to have general charge of the property of the Corporation and to supervise and control all officers, agents and employees of the Corporation.

The President shall be the Chief Executive Officer of the Corporation unless the Board shall designate another officer to be the Chief Executive Officer. If there is no President, and the Board has not designated any other officer to be the Chief Executive Officer, then the Chairperson of the Board shall be the Chief Executive Officer.

**Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Chairperson of the Board</u>**. The Chairperson of the Board shall have the power to preside at all meetings of the Board and shall have such other powers and duties as provided in these Bylaws and as the Board may from time to time prescribe.

**Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>President</u>**. The President shall be the Chief Executive Officer of the Corporation unless the Board shall have designated another officer as the Chief Executive Officer of the Corporation. Subject to the provisions of these Bylaws and to the direction of the Board, and subject to the supervisory powers of the Chief Executive Officer (if the Chief Executive Officer is an officer other than the President), and subject to such supervisory powers and authority as may be given by the Board to the Chairperson of the Board, and/or to any other officer, the President shall have the responsibility for the general management and control of the business and affairs of the Corporation and the general supervision and direction of all of the officers, employees and agents of the Corporation (other than the Chief Executive Officer, if the Chief Executive Officer is an officer other than the President) and shall perform all duties and have all powers that are commonly incident to the office of President or that are delegated to the President by the Board.

**Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Vice President</u>**. Each Vice President shall have all such powers and duties as are commonly incident to the office of Vice President, or that are delegated to him or her by the Board or the Chief Executive Officer. A Vice President may be designated by the Board to perform the duties and exercise the powers of the Chief Executive Officer in the event of the Chief Executive Officer's absence or disability.

**Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Chief Financial Officer</u>**. The Chief Financial Officer shall be the Treasurer of the Corporation unless the Board shall have designated another officer as the Treasurer of the Corporation. Subject to the direction of the Board and the Chief Executive Officer, the Chief Financial Officer shall perform all duties and have all powers that are commonly incident to the office of Chief Financial Officer.

**Section 4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Treasurer</u>**. The Treasurer shall have custody of all moneys and securities of the Corporation. The Treasurer shall make such disbursements of the funds of the Corporation as are authorized and shall render from time to time an account of all such transactions. The Treasurer shall also perform such other duties and have such other powers as are commonly incident to the office of Treasurer, or as the Board or the Chief Executive Officer may from time to time prescribe.

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**Section 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Chief Technology Officer</u>**. The Chief Technology Officer shall have responsibility for the general research and development activities of the Corporation, for supervision of the Corporation's research and development personnel, for new product development and product improvements, for overseeing the development and direction of the Corporation's intellectual property development and such other responsibilities as may be given to the Chief Technology Officer by the Board, subject to: (a) the provisions of these Bylaws; (b) the direction of the Board; (c) the supervisory powers of the Chief Executive Officer of the Corporation; and (d) those supervisory powers that may be given by the Board to the Chairperson or Vice Chairperson of the Board.

**Section 4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Secretary</u>**. The Secretary shall issue or cause to be issued all authorized notices for, and shall keep, or cause to be kept, minutes of all meetings of the stockholders and the Board. The Secretary shall have charge of the corporate minute books and similar records and shall perform such other duties and have such other powers as are commonly incident to the office of Secretary, or as the Board or the Chief Executive Officer may from time to time prescribe.

**Section 4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Delegation of Authority</u>**. The Board may from time to time delegate the powers or duties of any officer to any other officers or agents, notwithstanding any provision hereof.

**Section 4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal</u>**. Any officer of the Corporation shall serve at the pleasure of the Board and may be removed at any time, with or without cause, by the Board; provided that if the Board has empowered the Chief Executive Officer to appoint any Vice Presidents of the Corporation, then such Vice Presidents may be removed by the Chief Executive Officer. Such removal shall be without prejudice to the contractual rights of such officer, if any, with the Corporation.

**ARTICLE V.**

**STOCK**

**Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificates</u>**. The shares of capital stock of the Corporation shall be represented by certificates; *<u>provided</u>*, *<u>however</u>*, that the Board may provide by resolution or resolutions that some or all of any or all classes or series of its stock may be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation (or the transfer agent or registrar, as the case may be). Notwithstanding the adoption of such resolution by the Board, every holder of stock that is a certificated security shall be entitled to have a certificate signed by or in the name of the Corporation by the Chairperson or Vice-Chairperson of the Board, or the President or a Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary, of the Corporation, certifying the number of shares owned by such stockholder in the Corporation. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such person were an officer, transfer agent or registrar at the date of issue. If any holder of uncertificated

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shares elects to receive a certificate, the Corporation (or the transfer agent or registrar, as the case may be) shall, to the extent permitted under applicable law and rules, regulations and listing requirements of any stock exchange or stock market on which the Corporation's shares are listed or traded, cease to provide annual statements indicating such holder's holdings of shares in the Corporation.

**Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Lost</u>**<u>,</u> **<u>Stolen or Destroyed Stock Certificates; Issuance of New</u> <u>Certificates</u>**. The Corporation may issue a new certificate of stock, or uncertificated shares, in the place of any certificate previously issued by it, alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, to agree to indemnify the Corporation and/or to give the Corporation a bond sufficient to indemnify it, against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate.

**Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Regulations</u>**. The issue, transfer, conversion and registration of stock certificates and uncertificated securities shall be governed by such other regulations as the Board may establish.

**ARTICLE VI.**

**INDEMNIFICATION**

**Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification of Officers and Directors</u>**. Each person who was or is made a party to, or is threatened to be made a party to, or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "***Proceeding***"), by reason of the fact that such person (or a person of whom such person is the legal representative), is or was a member of the Board or officer of the Corporation or a Reincorporated Predecessor (as defined below) or is or was serving at the request of the Corporation or a Reincorporated Predecessor as a member of the board of directors, officer or trustee of another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans (for purposes of this Article VI, an "***Indemnitee***"), shall be indemnified and held harmless by the Corporation to the fullest extent permitted by applicable law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than such law permitted the Corporation to provide prior to such amendment), against all expenses, liability and loss (including attorneys' fees, judgments, fines, ERISA excise taxes and penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such Indemnitee in connection therewith, provided such Indemnitee acted in good faith and in a manner that the Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or Proceeding, had no reasonable cause to believe the Indemnitee's conduct was unlawful. Such indemnification shall continue as to an Indemnitee who has ceased to be a director or officer and shall inure to the benefit of such Indemnitees' heirs, executors and administrators. Notwithstanding the foregoing, the Corporation shall indemnify any such Indemnitee seeking indemnity in connection with a Proceeding (or part

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thereof) initiated by such Indemnitee only if such Proceeding (or part thereof) was authorized by the Board or such indemnification is authorized by an agreement approved by the Board. As used herein, the term the "***Reincorporated Predecessor***" means a corporation that is merged with and into the Corporation in a statutory merger where (a) the Corporation is the surviving corporation of such merger; (b) the primary purpose of such merger is to change the corporate domicile of the Reincorporated Predecessor to Delaware.

**Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Advance of Expenses</u>**. The Corporation shall pay all expenses (including attorneys' fees) incurred by such an Indemnitee in defending any such Proceeding as they are incurred in advance of its final disposition; *<u>provided</u>*, *<u>however</u>*, that (a) if the DGCL then so requires, the payment of such expenses incurred by such an Indemnitee in advance of the final disposition of such Proceeding shall be made only upon delivery to the Corporation of an undertaking, by or on behalf of such Indemnitee, to repay all amounts so advanced if it should be determined ultimately by final judicial decision from which there is no appeal that such Indemnitee is not entitled to be indemnified under this Article VI or otherwise; and (b) the Corporation shall not be required to advance any expenses to a person against whom the Corporation directly brings a claim, in a Proceeding, alleging that such person has breached such person's duty of loyalty to the Corporation, committed an act or omission not in good faith or that involves intentional misconduct or a knowing violation of law, or derived an improper personal benefit from a transaction.

**Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Exclusivity of Rights</u>**. The rights conferred on any person in this Article VI shall not be exclusive of any other right that such person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, Bylaw, agreement, vote or consent of stockholders or disinterested directors, or otherwise. Additionally, nothing in this Article VI shall limit the ability of the Corporation, in its discretion, to indemnify or advance expenses to persons whom the Corporation is not obligated to indemnify or advance expenses pursuant to this Article VI.

**Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification Contracts</u>**. The Board is authorized to cause the Corporation to enter into indemnification contracts with any director, officer, employee or agent of the Corporation, or any person serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including employee benefit plans, providing indemnification or advancement rights to such person. Such rights may be greater than those provided in this Article VI.

**Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of Indemnitee to Bring Suit</u>**. The following shall apply to the extent not in conflict with any indemnification contract provided for in Section 6.4 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Right to Bring Suit</u>. If a claim under Section 6.1 or 6.2 of this Article VI is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) days, the Indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Indemnitee shall be entitled to be paid also

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the expense of prosecuting or defending such suit. In (a) any suit brought by the Indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the Indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (b) in any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final adjudication that, the Indemnitee has not met any applicable standard for indemnification set forth in applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Determination</u>. Neither the failure of the Corporation (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the applicable standard of conduct set forth in applicable law, nor an actual determination by the Corporation (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or its stockholders) that the Indemnitee has not met such applicable standard of conduct, shall create a presumption that the Indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the Indemnitee, be a defense to such suit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Burden of Proof</u>. In any suit brought by the Indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the Indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article VI, or otherwise, shall be on the Corporation.

**Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Nature of Rights</u>**. The rights conferred upon Indemnitees in this Article VI shall be contract rights and such rights shall continue as to an Indemnitee who has ceased to be a director, officer or trustee and shall inure to the benefit of the Indemnitee's heirs, executors and administrators. Any amendment, repeal or modification of any provision of this Article VI that adversely affects any right of an Indemnitee or an Indemnitee's successors shall be prospective only, and shall not adversely affect any right or protection conferred on a person pursuant to this Article VI and existing at the time of such amendment, repeal or modification.

**ARTICLE VII.**

**NOTICES**

**Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Form and Delivery</u>. Except as otherwise specifically required in these Bylaws (including, without limitation, Section 7.1.2 below) or by law, all notices required to be given pursuant to these Bylaws shall be in writing and may, (a) in every instance in connection with any delivery to a member of the Board, be effectively given by hand delivery (including use of a delivery service), by depositing such notice in the mail, postage prepaid, or by sending such notice by prepaid telegram, cablegram, overnight express courier, facsimile, electronic mail or other form of electronic transmission and (b) be effectively be delivered to a stockholder when given by hand delivery, by depositing such notice in the mail, postage prepaid or, if specifically

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consented to by the stockholder as described in Section 7.1.2 of this Article VII by sending such notice by telegram, cablegram, facsimile, electronic mail or other form of electronic transmission. Any such notice shall be addressed to the person to whom notice is to be given at such person's address as it appears on the records of the Corporation. The notice shall be deemed given (a) in the case of hand delivery, when received by the person to whom notice is to be given or by any person accepting such notice on behalf of such person, (b) in the case of delivery by mail, upon deposit in the mail, (c) in the case of delivery by overnight express courier, when dispatched, and (d) in the case of delivery via telegram, cablegram, facsimile, electronic mail or other form of electronic transmission, when dispatched.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Transmission</u>. Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provision of the DGCL, the Certificate of Incorporation, or these Bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given in accordance with Section 232 of the DGCL. Any such consent shall be revocable by the stockholder by written notice to the Corporation. Any such consent shall be deemed revoked if (a) the Corporation is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with such consent and (b) such inability becomes known to the Secretary or an Assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice; *<u>provided</u>*, *<u>however</u>*, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action. Notice given pursuant to this Section 7.1.2 shall be deemed given: (i) if by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice; (ii) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (iii) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of such posting and the giving of such separate notice; and (iv) if by any other form of electronic transmission, when directed to the stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Affidavit of Giving Notice</u>. An affidavit of the Secretary or an Assistant Secretary or of the transfer agent or other agent of the Corporation that the notice has been given in writing or by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

**Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice</u>**. Whenever notice is required to be given under any provision of the DGCL, the Certificate of Incorporation or these Bylaws, a written waiver of notice, signed by the person entitled to notice, or waiver by electronic transmission by such person, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders, directors or members of a committee of directors need be specified in any waiver of notice.

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**ARTICLE VIII.**

**INTERESTED DIRECTORS**

**Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Interested Directors</u>**. No contract or transaction between the Corporation and one or more of its members of the Board or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of its directors or officers are members of the board of directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board or committee thereof that authorizes the contract or transaction, or solely because his, her or their votes are counted for such purpose, if: (a) the material facts as to his, her or their relationship or interest and as to the contract or transaction are disclosed or are known to the Board or the committee, and the Board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; (b) the material facts as to his, her or their relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified by the Board, a committee thereof, or the stockholders.

**Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum</u>**. Interested directors may be counted in determining the presence of a quorum at a meeting of the Board or of a committee which authorizes the contract or transaction.

**ARTICLE IX.**

**MISCELLANEOUS**

**Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Fiscal Year</u>**. The fiscal year of the Corporation shall be determined by resolution of the Board.

**Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Seal</u>**. The Board may provide for a corporate seal, which may have the name of the Corporation inscribed thereon and shall otherwise be in such form as may be approved from time to time by the Board.

**Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Records</u>**. Any records maintained by the Corporation in the regular course of its business, including its stock ledger, books of account and minute books, may be kept on or by means of, or be in the form of, diskettes, CDs, or any other information storage device or method, provided that the records so kept can be converted into clearly legible paper form within a reasonable time. The Corporation shall so convert any records so kept upon the request of any person entitled to inspect such records pursuant to any provision of the DGCL.

**Section 9.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Reliance upon Books and Records</u>**. A member of the Board, or a member of any committee designated by the Board shall, in the performance of such person's duties, be fully protected in relying in good faith upon records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of the Corporation's officers or employees, or committees of the Board, or by any other person as to

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matters the member reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

**Section 9.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate of Incorporation Governs</u>**. In the event of any conflict between the provisions of the Certificate of Incorporation and Bylaws, the provisions of the Certificate of Incorporation shall govern.

**Section 9.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>**. If any provision of these Bylaws shall be held to be invalid, illegal, unenforceable or in conflict with the provisions of the Certificate of Incorporation, then such provision shall nonetheless be enforced to the maximum extent possible consistent with such holding and the remaining provisions of these Bylaws (including without limitation, all portions of any section of these Bylaws containing any such provision held to be invalid, illegal, unenforceable or in conflict with the Certificate of Incorporation, that are not themselves invalid, illegal, unenforceable or in conflict with the Certificate of Incorporation) shall remain in full force and effect.

**ARTICLE X.**

**AMENDMENT**

Unless otherwise required by the Certificate of Incorporation, stockholders of the Corporation holding at least a majority of the voting power of the Corporation's outstanding voting stock then entitled to vote at an election of directors shall have the power to adopt, amend or repeal Bylaws. To the extent provided in the Certificate of Incorporation, the Board shall also have the power to adopt, amend or repeal Bylaws of the Corporation.

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**CERTIFICATION OF BYLAWS**

**OF**

**<u>CEREBRAS SYSTEMS INC.</u>**

a Delaware Corporation

I, Gary Lauterbach, certify that I am Secretary of Cerebras Systems Inc., a Delaware corporation (the "***Corporation***"), that I am duly authorized to make and deliver this certification, that the attached Bylaws are a true and complete copy of the Bylaws of the Corporation in effect as of the date of this certificate.

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| | |
|:---|:---|
| Dated April 6, 2016 | |
| | /s/ Gary Lauterbach |
| | Gary Lauterbach, Secretary |

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## Exhibit 4.3

**Exhibit 4.3**

**CEREBRAS SYSTEMS INC.**

**AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT**

This Amended and Restated Investors' Rights Agreement (this "***Agreement***") is made and entered into as of September 19, 2025 by and among Cerebras Systems Inc., a Delaware corporation (the ***"Company"***), and each of the investors listed on Schedule A hereto, each of which is referred to in this Agreement as an **"*Investor***,**"** each of the stockholders listed on Schedule B hereto, each of whom is referred to herein as a ***"Key Holder***,***"*** any Additional Purchaser (as defined in the Purchase Agreement) that becomes a party to this Agreement in accordance with Section 7.14 hereof and any holder of a Lender Warrant that becomes a party to this Agreement in accordance with Section 7.14 hereof.

**<u>RECITALS</u>**

WHEREAS, the Company and certain of the Investors and Key Holders are parties to that certain Amended and Restated Investors' Rights Agreement dated as of June 25, 2024 (the ***"Prior Agreement"***);

WHEREAS, the Company and certain of the Investors are parties to that certain Series G Preferred Stock Purchase Agreement, dated of even date herewith, by and among the Company and certain of the Investors, as amended from time to time (the ***"Purchase Agreement"***); and

WHEREAS, to induce the Company to enter into the Purchase Agreement and to induce certain of the Investors to invest funds in the Company pursuant to the Purchase Agreement, the Investors and the Company hereby agree to amend and restate the Prior Agreement in its entirety as set forth herein and that this Agreement shall govern the rights of the Investors to cause the Company to register shares of Common Stock issuable to the Investors, to receive certain information from the Company, and to participate in future equity offerings by the Company, and shall govern certain other matters as set forth in this Agreement;

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter set forth, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.<u>DEFINITIONS</u>.** For purposes of this Agreement:

***"Affiliate"*** means, with respect to any specified Person, such Person's principal or any other Person who or which, directly or indirectly, controls, is controlled by, or is under common control with such Person or such Person's principal, including, without limitation, any general partner, managing member or partner, officer or director of such Person such Person's principal or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person or such Person's principal (but, for the avoidance of doubt, excluding any portfolio companies under the management of such Persons, principals or venture capital funds). For purposes of this definition, the terms ***"controlling," "controlled by,"*** or ***"under common control with"*** shall mean the possession, directly or indirectly, of (a) the power to direct or cause the direction of the

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management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise, or (b) the power to elect or appoint at least 50% of the directors, managers, general partners, or persons exercising similar authority with respect to such Person. Affiliates in relation to Falcon Q LP, Alpha Wave Ventures II, LP and Alpha Wave Holdings, LP (collectively, "***Falcon Edge***") shall also (x) include all investment funds, persons or accounts under the management of Falcon Edge Capital LP or any of its Affiliates and shall include RMG Holdings, LLC, Mr. Richard Matthew Gerson, Mr. Navroz Darius Udwadia, Blue Wolf Capital Limited and Mr. Ryan Francis Khoury (together, the "***Falcon Edge Related Parties***") and (y) exclude all portfolio companies under the management of Falcon Edge Related Parties.

***"Automatic Shelf Registration Statement"*** shall have the meaning given to that term in SEC Rule 405.

***"Budget"*** shall have the meaning given to that term in Section 2.1.1.

***"business day"*** means a weekday on which banks are open for general banking business in San Francisco, California.

***"Code"*** means the Internal Revenue Code of 1986, as amended.

***"Common Stock"*** means shares of the Company's common stock, $0.00001 par value per share.

"***Competitor***" means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), (i) in the design, production or manufacture and sale of (a) semiconductor chips and wafers, integrated circuit chip sets, systems-on-a-chip, microprocessors, components, devices, units and packaging, and/or (b) computing systems, appliances, and other hardware equipment and/or (c) software (including, but not limited to, source code, object code, algorithms), in each case that is capable of use in accelerated machine learning or artificial intelligence work, as well as the provision of related services, and/or (ii) in the business of providing cloud services for artificial intelligence training, inference and other related services; provided no venture capital fund or its Affiliates shall, either now or in the future, be deemed to be a Competitor solely because of such fund's or such fund's Affiliates' investment in a Competitor of the Company; provided further that in no event shall Falcon Edge be deemed to be a Competitor of the Company under this Agreement.

***"Damages"*** means any loss, damage, or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, or liability (or any action in respect thereof) arises out of or is based upon (a) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, and any free-writing prospectus and any issuer information (as defined in Rule 433 of the Securities Act) filed or required to be filed pursuant to Rule 433(d) under the Securities Act or any other document incident to such registration prepared by or on behalf of the Company or used or referred to by

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the Company; (b) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (c) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

***"Demand Notice"*** means notice sent by the Company to the Holders specifying that a demand registration has been requested as provided in Section 3.1.1.

***"Derivative Securities"*** means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants.

***"Deemed Liquidation Event"*** has the meaning set forth for such term in the certificate of incorporation of the Company most recently filed with the Delaware Secretary of State that contains such a definition.

***"Exchange Act"*** means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

***"Excluded Registration"*** means (a) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to an equity incentive, stock option, stock purchase, or similar plan; (b) a registration relating to an SEC Rule 145 transaction; (c) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (d) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

***"Fidelity"*** or ***"Lead Investor***" means, collectively, Fidelity Securities Fund: Fidelity Blue Chip Growth Fund, Fidelity Blue Chip Growth Commingled Pool, Fidelity Blue Chip Growth Multi-Asset Base Fund, Fidelity Securities Fund: Fidelity Blue Chip Growth K6 Fund, Fidelity Blue Chip Growth Institutional Trust, Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund, FIAM Target Date Blue Chip Growth Commingled Pool, Fidelity Select Portfolios: Select Semiconductors Portfolio, Fidelity Advisor Series VII: FA Semiconductors Fund, Fidelity Advisor Series VII: Fidelity Advisor Technology Fund, Fidelity Select Portfolios: Select Technology Portfolio, Variable Insurance Products Fund IV: VIP Technology Portfolio, Variable Insurance Products Fund III: Growth Opportunities Portfolio, Fidelity Advisor Series I: Fidelity Advisor Growth Opportunities Fund, Fidelity Advisor Series I: Fidelity Advisor Series Growth Opportunities Fund, Fidelity U.S. Growth Opportunities Investment Trust, Fidelity NorthStar Fund - Sub D, Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund, Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund, Fidelity Growth Company Commingled Pool, Fidelity Mt. Vernon Street Trust : Fidelity Growth Company K6 Fund, Fidelity Canadian Growth Company Fund, Fidelity Special Situations Fund, Fidelity Global Innovators Investment Trust , Fidelity Venture Capital Fund I LP, Fidelity Contrafund Commingled Pool, Fidelity Contrafund: Fidelity Contrafund K6, Fidelity Contrafund: Fidelity Contrafund, Fidelity Contrafund: Fidelity Advisor New Insights Fund, Fidelity Global Growth

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and Value Investment Trust, Fidelity Insights Investment Trust, Fidelity Contrafund: Fidelity Series Opportunistic Insights Fund, and Variable Insurance Products Fund II: VIP Contrafund Portfolio.

***"Form S-1"*** means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

***"Form S-3"*** means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to other documents filed by the Company with the SEC.

***"Free Writing Prospectus"*** means a free-writing prospectus, as defined in Rule 405 under the Securities Act.

***"Fully Exercising Investor"*** shall have the meaning set forth in Section 4.2.

***"GAAP"*** means generally accepted accounting principles in the United States.

***"Holder"*** means any holder of Registrable Securities who is a party to this Agreement.

***"Immediate Family Member"*** means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein.

***"Initiating Holders"*** means, collectively, Holders who properly initiate a registration request under this Agreement.

***"Investor Notice"*** shall have the meaning set forth in Section 4.2.

***"IPO"*** means the Company's first underwritten public offering of its Common Stock under the Securities Act.

***"Key Holder Registrable Securities"*** means (a) the shares of Common Stock held by the Key Holders, and (b) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of such shares.

***"Lender Registrable Securities"*** means (a) the Common Stock issuable or issued upon the exercise of any Lender Warrant and (b) the Common Stock issuable or issued upon conversion of the Preferred Stock issuable or issued pursuant to the exercise of any Lender Warrant; provided, however, that before the holder of any Lender Warrant shall be entitled to exercise any rights under this Agreement, such holder must either (i) become a party to this Agreement as a "Lender" or (ii) agree to be bound by the terms of this Agreement related to registration rights applicable to the Lender Registrable Securities in a separate written agreement between such holder and the Company (including, without limitation, in a Lender Warrant).

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***"Lender Warrant"*** means any warrant to purchase shares of capital stock of the Company issued to banks, equipment lessors or other financial institutions pursuant to a debt financing or equipment leasing transaction where the Company's Board of Directors (the ***"Board"***), including at least one of the Preferred Directors (as such term is defined in the Restated Certificate), has approved the grant to the holder thereof of "piggyback" registration rights.

***"Major Investor"*** means any Investor that, individually or together with such Investor's Affiliates, holds at least 2,794,108 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

"***MOZN***" means MOZN Holding Limited together with any of its Affiliates.

***"New Securities"*** means, collectively, equity securities of the Company, whether or not currently authorized, Derivative Securities and any rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for (in each case, directly or indirectly) such equity securities; provided however, that "New Securities" shall exclude: (a) Exempted Securities (as defined in the Restated Certificate); and (b) up to 30,359,560 shares of Series G Preferred Stock.

***"Offer Notice"*** shall have the meaning set forth in Section 4.1.

***"Person"*** means any individual, corporation, partnership, trust, limited liability company, association or other entity.

"***Preferred Directors***" shall have the meaning set forth for such term in the certificate of incorporation of the Company most recently filed with the Delaware Secretary of State that contains such a definition.

***"Preferred Stock"*** means, collectively, the Series A Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock, the Series D Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock, the Series F-1 Preferred Stock and the Series G Preferred Stock.

***"Pro Rata Amount"*** means, for each Major Investor, that portion of the New Securities identified in an Offer Notice which equals the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by such Major Investor bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities).

***"Registrable Securities"*** means (a) the Common Stock issuable or issued upon conversion of shares of the Preferred Stock held by the Investors; (b) the Key Holder Registrable Securities, provided, however, that such Key Holder Registrable Securities shall not be deemed Registrable Securities and the Key Holders shall not be deemed Holders for the purposes of

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Sections 2.1, 2.2, 3.1, 3.10, 4 and 7.6; (c) the Lender Registrable Securities, provided, however, that such Lender Registrable Securities shall not be deemed Registrable Securities and the Lenders shall not be deemed Holders for the purposes of Sections 2.1, 2.2, 3.1, 3.10, 4 and 7.6; and (d) any Common Stock of the Company, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, currently held by the Investors or acquired by the Investors; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 7.1, and excluding for purposes of Section 3 any shares for which registration rights have terminated pursuant to Section 6.2 of this Agreement. Notwithstanding the foregoing, the Company shall in no event be obligated to register any Preferred Stock, and Holders of Registrable Securities will not be required to convert their Preferred Stock into Common Stock in order to exercise the registration rights granted hereunder, until immediately before the closing of the offering to which the registration relates.

***"Registrable Securities then outstanding"*** means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

***"Restated Certificate"*** means the Company's Amended and Restated Certificate of Incorporation (as may be amended from time to time).

***"Restricted Securities"*** means the securities of the Company required to bear the legend set forth in Section 3.12.2 hereof.

***"SEC"*** means the Securities and Exchange Commission.

***"SEC Rule 144"*** means Rule 144 promulgated by the SEC under the Securities Act.

***"SEC Rule 145"*** means Rule 145 promulgated by the SEC under the Securities Act.

***"SEC Rule 405"*** means Rule 405 promulgated by the SEC under the Securities Act.

***"Securities Act"*** means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

***"Selling Expenses"*** means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in Section 3.6.

***"Selling Holder Counsel"*** means one counsel for the selling Holders.

***"Series A Preferred Stock"*** means shares of the Company's Series A Preferred Stock, par value $0.00001 per share.

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***"Series B Preferred Stock"*** means shares of the Company's Series B Preferred Stock, par value $0.00001 per share.

***"Series C Preferred Stock"*** means shares of the Company's Series C Preferred Stock, par value $0.00001 per share.

***"Series D Preferred Stock"*** means shares of the Company's Series D Preferred Stock, par value $0.00001 per share.

***"Series E Preferred Stock"*** means shares of the Company's Series E Preferred Stock, par value $0.00001 per share.

***"Series F Preferred Stock"*** means shares of the Company's Series F Preferred Stock, par value $0.00001 per share.

***"Series F-1 Preferred Stock"*** means shares of the Company's Series F-1 Preferred Stock, par value $0.00001 per share.

***"Series G Preferred Stock"*** means shares of the Company's Series G Preferred Stock, par value $0.00001 per share.

 ***"Standoff Period"*** means the period commencing on the date of the final prospectus relating to the IPO of the Company's Common Stock and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days).

***"Stock Sale"*** means a sale by the Company's stockholders, in one transaction or series of related transactions, of equity securities that represent, immediately prior to such transaction or transactions, a majority by voting power of the equity securities of the Company pursuant to an agreement approved by the Board and entered into by the Company.

***"Voting Agreement"*** means that certain Amended and Restated Voting Agreement dated of even date hereof by and among the Company and the Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.<u>INFORMATION RIGHTS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1<u>Delivery of Financial Statements</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Information to be Delivered</u>. The Company shall deliver the following to each Major Investor, *<u>provided</u>* that the Board has not reasonably determined that such Major Investor is a Competitor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable, but in any event within fifteen (15) days of being made available to the Company after the end of each fiscal year of the Company, but in any event within 120 days after the end of such fiscal year, (i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and (iii) a statement of stockholders' equity as of the end of such year, all of which shall be audited and certified by

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independent public accountants of nationally recognized standing selected by the Company, unless otherwise approved by the Board (including at least one Preferred Director).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, unaudited statements of income and of cash flows for such fiscal quarter, and an unaudited balance sheet and a statement of stockholders' equity as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable, but in any event within thirty (30) days of the end of each month, an unaudited income statement and statement of cash flows for such month, and an unaudited balance sheet and statement of stockholders' equity as of the end of such month, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable, but in any event within thirty (30) days before the end of each fiscal year, a budget and business plan for the next fiscal year, approved by the Board and prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months (the "***Budget***") and, promptly after prepared, any other budgets or revised budgets prepared by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable, but in any event within 45 days after the end of each quarter of each fiscal year of the Company and upon request, a statement showing the number of shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Consolidation</u>. If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to Section 2.1.1 shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Suspension or Termination</u>. Notwithstanding anything else in this Section 2.1 to the contrary but subject to Section 6.1, the Company may cease providing the information set forth in this Section 2.1 during the period starting with the date sixty (60) days before the Company's good-faith estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; *<u>provided</u>* that the Company's covenants under this Section 2.1

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shall be reinstated at such time as the Company is no longer actively employing its reasonable efforts to cause such registration statement to become effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Inspection</u>.** The Company shall permit each Major Investor, at such Major Investor's expense, and on such Major Investor's written request, to visit and inspect the Company's properties; examine its books of account and records; and discuss the Company's affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; *<u>provided</u>*, *<u>however</u>*, that the Company shall not be obligated pursuant to this Section 2.2 to provide access to any information that it reasonably and in good faith considers to be confidential information (unless covered by an enforceable confidentiality agreement, in form reasonably acceptable to the Company), a trade secret or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>.** Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Section 2 unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 2.3 by such Investor), (b) is or has been independently developed or conceived by the Investor without use of the Company's confidential information, or (c) is or has been made known or disclosed to the Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; *<u>provided</u>*, *<u>however</u>*, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any existing Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, but only if such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iii) as may otherwise be required by law if the Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.<u>REGISTRATION RIGHTS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1<u>Demand Registration</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Form S-1 Demand</u>. If at any time after the earlier of (a) five (5) years after the date of this Agreement or (b) one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from Holders of a majority of the Registrable Securities then outstanding that the Company file a Form S-1 registration statement with respect to any Registrable Securities then outstanding (and the Registrable Securities subject to such request have an anticipated aggregate offering price, net of Selling Expenses, of at least $25,000,000), then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) use commercially reasonable efforts to as soon as practicable, and in any event within ninety (90) days after the date such request is given by the Initiating Holders,

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file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days after the date the Demand Notice is given, and in each case, subject to the limitations of Section 3.1.3 and Section 3.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Form S-3 Demand</u>. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of a majority of the Registrable Securities then outstanding that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $5,000,000, then the Company shall (a) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (b) use commercially reasonable efforts to as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Section 3.1.3 and Section 3.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Delay</u>. Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Section 3.1 a certificate signed by the Company's chief executive officer stating that in the good faith judgment of the Board it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (a) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (b) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (c) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly, for a period of not more than ninety (90) days after the request of the Initiating Holders is given; *<u>provided</u>*, *<u>however</u>*, that (i) the Company may not invoke this right more than once in any twelve (12) month period and (ii) the Company shall not register any securities for its own account or that of any other stockholder during such ninety (90) day period other than an Excluded Registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations</u>. The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 3.1.1: (a) during the period that is sixty (60) days before the Company's good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (b) after the

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Company has effected two (2) registrations pursuant to Section 3.1.1; or (c) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 3.1.2. The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 3.1.2: (i) during the period that is thirty (30) days before the Company's good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (ii) if the Company has effected two (2) registrations pursuant to Section 3.1.2 within the twelve (12) month period immediately preceding the date of such request. A registration shall not be counted as "effected" for purposes of this <u>Section 3.1.4</u> until such time as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one registration on Form S-1 or S-3, as applicable, pursuant to <u>Section 3.6</u>, in which case such withdrawn registration statement shall be counted as "effected" for purposes of this <u>Section 3.1.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Registration</u>.** If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of Section 3.3, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 3.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Section 3.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3<u>Underwriting Requirements</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Inclusion</u>. If, pursuant to Section 3.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 3.1, and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Company, subject only to the reasonable approval of the holders of a majority of Registrable Securities held by the Initiating Holders. In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 3.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting; <u>provided</u>, <u>however</u>, that no Holder (or any of their assignees) shall be required to make any representations, warranties or indemnities except as they relate to such Holder's ownership of shares and authority to enter into the underwriting agreement and to such Holder's

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intended method of distribution, and the liability of such Holder shall be several and not joint, and limited to an amount equal to the net proceeds from the offering received by such Holder. Notwithstanding any other provision of this Section 3.3, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned or held by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; *<u>provided</u>*, *<u>however</u>*, that the number of Registrable Securities owned or held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Underwriter Cutback</u>. In connection with any offering involving an underwriting of shares of the Company's capital stock pursuant to Section 3.2, the Company shall not be required to include any of the Holders' Registrable Securities in such underwriting unless the Holders seeking to sell Registrable Securities in such offering accept the terms of the underwriting as agreed upon between the Company and its underwriters. If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned or held by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (a) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, (b) the number of Registrable Securities included in the offering be reduced below 30% of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder's securities are included in such offering or (c) notwithstanding clause (b) above, any Registrable Securities which are not Key Holder Registrable Securities be excluded from such underwriting unless all Key Holder Registrable Securities are first excluded from such offering For purposes of the provision in this Section 3.3.2 concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners,

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retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned or held by all Persons included in such "selling Holder," as defined in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Not Effected</u>. For purposes of Section 3.1, a registration shall not be counted as "effected" if, as a result of an exercise of the underwriter's cutback provisions in Section 3.3.1, fewer than fifty percent (50%) of the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations of the Company</u>.** Whenever required under this Section 3 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective as promptly as practicable, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; *<u>provided</u>*, *<u>however</u>*, that (i) such 120-day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such 120 day period shall be extended for up to sixty (60) days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;prepare and file with the SEC such amendments and supplements to such registration statement, the prospectus and, if required, any Free Writing Prospectus used in connection with such registration statement as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus and any Free Writing Prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; *<u>provided</u>* that the Company shall not be required to qualify to do business or to file a general consent to

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service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;use its reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company's officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus or Free-Writing Prospectus forming a part of such registration statement has been filed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus or Free-Writing Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;use its commercially reasonable efforts to obtain for the underwriters one or more "cold comfort" letters, dated the effective date of the related registration statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), signed by the Company's independent public accountants in customary form and covering such matters of the type customarily covered by "cold comfort" letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;use its commercially reasonable efforts to obtain for the underwriters on the date such securities are delivered to the underwriters for sale pursuant to such registration a legal opinion of the Company's outside counsel with respect to the registration statement, each amendment and supplement thereto, the prospectus included therein

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(including the preliminary prospectus) and such other documents relating thereto in customary form and covering such matters of the type customarily covered by legal opinions of such nature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;to the extent the Company is a well-known seasoned issuer (as defined in SEC Rule 405 at the time any request for registration is submitted to the Company in accordance with Section 3.1, if so requested, file an Automatic Shelf Registration Statement to effect such registration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;if at any time when the Company is required to re-evaluate its well-known seasoned issuer status for purposes of an outstanding Automatic Shelf Registration Statement used to effect a request for registration in accordance with Section 3.1.2 the Company determines that it is not a well-known seasoned issuer and (i) the registration statement is required to be kept effective in accordance with this Agreement and (ii) the registration rights of the applicable Holders have not terminated, use commercially reasonable efforts to promptly amend the registration statement on a form the Company is then eligible to use or file a new registration statement on such form, and keep such registration statement effective in accordance with the requirements otherwise applicable under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Furnish Information</u>.** It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 3 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder's Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Expenses of Registration</u>.** All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to Section 3, including all registration, filing, and qualification fees; printers' and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements of one Selling Holder Counsel, not to exceed $50,000 per registration, shall be borne and paid by the Company; *<u>provided</u>*, *<u>however</u>*, that (a) the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 3.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to Section 3.1.1 or Section 3.1.2, as the case may be, and (b) if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company not known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information, then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to Section 3.1.1 or Section 3.1.2. All Selling Expenses relating to Registrable Securities registered pursuant to this Section 3 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Delay of Registration</u>.** No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.** If any Registrable Securities are included in a registration statement under this Section 3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Indemnification</u>. To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; *<u>provided</u>*, *<u>however</u>*, that the indemnity agreement contained in this Section 3.8.1 shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, conditioned, or delayed nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Selling Holder Indemnification</u>. To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; *<u>provided</u>*, *<u>however</u>*, that (a) the indemnity agreement contained in this Section 3.8.2 shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld, conditioned or delayed, and (b) that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Sections 3.8.2 and 3.8.4 exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Procedures</u>. Promptly after receipt by an indemnified party under this Section 3.8 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 3.8, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; *<u>provided</u>*, *<u>however</u>*, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 3.8, solely to the extent that such failure prejudices the indemnifying party's ability to defend such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Contribution</u>. To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (a) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 3.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Section 3.8 provides for indemnification in such case, or (b) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Section 3.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; *<u>provided</u>*, *<u>however</u>*, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;in any such case, (A) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (B) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;in no event shall a Holder's liability pursuant to this Section 3.8.4, when combined with the amounts paid or payable by such Holder pursuant to Section 3.8.2, exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Underwriting Agreement Controls</u>. Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this Section 3.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 3, and otherwise shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Reports under the Exchange Act</u>.** With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Subsequent Registration Rights</u>.** From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of at least 65% of the Registrable Securities then outstanding, enter into any agreement with any

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holder or prospective holder of any securities of the Company that would allow such holder or prospective holder to include such securities in any registration if such agreement (a) would allow such holder or prospective holder to include a portion of its securities in any "piggyback" registration if such inclusion could reduce the number of Registrable Securities that selling Holders could be entitled to include in such registration under Sections 3.2 and 3.3.2 hereof or (b) would allow such holder or prospective holder to initiate a demand for registration of any of its securities at a time earlier than the Holders of Registrable Securities can demand registration under Section 3.1 hereof. This Section 3.10 shall not apply with respect to the grant of "piggyback" registration rights to a holder of a Lender Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.11&nbsp;&nbsp;&nbsp;&nbsp;<u>"Market Stand-off" Agreement</u>.** Each Holder hereby agrees that, during the Standoff Period, such Holder will not, without the prior written consent of the Company or the managing underwriter,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock, or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock, held immediately before the effective date of the registration statement for such offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise.

The foregoing provisions of this Section 3.11 shall apply only to the IPO and shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall be applicable to the Holders only if all officers, directors, and stockholders individually owning more than one percent (1%) of the Company's outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock) are similarly bound. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Company stockholders that are subject to such agreements, based on the number of shares subject to such agreements. For purposes of this Section 3.11, the term "Company" shall include any wholly-owned subsidiary of the Company into which the Company merges or consolidates. In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the shares subject to this Section 3.11 and to impose stop transfer instructions with respect to such shares until the end of such period. The underwriters in connection with such registration are intended third-party beneficiaries of this Section 3.11 and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 3.11 or that are necessary to give further effect thereto. The foregoing provisions of this Section 3.11 shall not apply to the sale of any securities of the Company acquired by the Holder (or any other fund or account

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managed or advised by the Holder or its Affiliates) in the IPO or in the open market subsequent to the closing of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.12<u>Restrictions on Transfer</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement Binding</u>. The Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement. Notwithstanding the foregoing, the Company shall not require any transferee of shares pursuant to an effective registration statement or, following the IPO, SEC Rule 144, in each case, to be bound by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Legends</u>. Each certificate or instrument representing (a) the Preferred Stock, (b) the Registrable Securities, and (c) any other securities issued in respect of the securities referenced in clauses (a) and (b), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Section 3.12.3) be stamped or otherwise imprinted with a legend substantially in the following form:

*THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.*

*THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.*

*THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A MARKET STAND-OFF RESTRICTION AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.*

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The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this Section 3.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Procedure</u>. The holder of each certificate representing Restricted Securities, by acceptance thereof, agrees to comply in all respects with the provisions of this Section 3. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the Company of such Holder's intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder's expense by either (a) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (b) a "no action" letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (c) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a legal opinion or "no action" letter (i) in any transaction in compliance with SEC Rule 144 or (ii) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no or nominal consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 3.12. Each certificate or instrument evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Section 3.12.2, except that such certificate shall not bear such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act. Until the IPO, no Holder shall transfer any Restricted Securities to any person or entity that is determined to be a Competitor, in the good faith judgment of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>RIGHTS TO FUTURE STOCK ISSUANCES</u>.** Subject to the terms and conditions of this Section 4 and applicable securities laws, if the Company proposes to sell any New Securities, the Company shall offer to sell a portion of New Securities to each Major Investor as described in this Section 4. A Major Investor shall be entitled to apportion the right of first refusal hereby granted to it among itself and its Affiliates in such proportions as it deems appropriate. The right of first refusal in this Section 4 shall not be applicable with respect to any Major Investor, if at the time of such subsequent securities issuance, the Major Investor is not an "accredited investor," as that term is then defined in Rule 501(a) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Company Notice</u>.** The Company shall give notice (the "***Offer Notice***") to each Major Investor, stating (a) its bona fide intention to sell such New Securities, (b) the

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number of such New Securities to be sold and (c) the price and terms, if any, upon which it proposes to sell such New Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Investor Right</u>.** By written notice (the "***Investor Notice***") to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to such Major Investor's Pro Rata Amount. In addition, at the expiration of such twenty (20) day period, each Major Investor that elects to purchase or acquire all of its Pro Rata Amount (each, a "***Fully Exercising Investor***") may, in the Investor Notice, elect to purchase or acquire, in addition to its Pro Rata Amount, a portion of the New Securities, if any, for which other Major Investors were entitled to subscribe but that are not subscribed for by such Major Investors. The amount of such overallotment that each Fully Exercising Investor shall be entitled to purchase is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. A Major Investor's election may be conditioned on the consummation of the transaction described in the Offer Notice. The closing of any sale pursuant to this Section 4.2 shall occur on the earlier of one hundred and twenty (120) days after the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to Section 4.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Sale of Securities</u>.** If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Section 4.2, the Company may, during the ninety (90) day period following the expiration of the periods provided in Section 4.2, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.<u>ADDITIONAL COVENANTS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>.** The Company shall use its commercially reasonable efforts to promptly obtain Directors and Officers liability insurance from a financially sound and reputable insurer in such amount and on such terms as determined by the Board, including at least one Preferred Director, and will use commercially reasonable efforts to cause such insurance policies to be maintained until such time as the Board determines that such insurance should be discontinued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Employee Agreements</u>.** The Company will cause each person now or hereafter employed or engaged by it or by any subsidiary (or engaged by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or

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trade secrets, or performing services that consist of the development of technology, to enter into a customary nondisclosure and proprietary rights assignment agreement or an employment or consulting agreement containing substantially similar terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Employee Vesting</u>.** Unless otherwise approved by the Board, all employees and consultants of the Company or its subsidiaries who purchase, receive options to purchase, or receive awards of shares of the Company's capital stock after the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for vesting of shares over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued employment or service (or the date of grant in the case of a grant to an existing employee or consultant), and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months. For the avoidance of doubt, no employees and consultants of the Company or its subsidiaries who purchase, receive options to purchase, or receive awards of shares of the Company's capital stock after the date hereof shall include provisions for the acceleration of vesting upon the occurrence of any event without the approval of the Board, including at least one of the Preferred Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Board Matters</u>.** The Company shall reimburse the nonemployee directors for all reasonable out-of-pocket travel expenses incurred (consistent with the Company's travel policy) in connection with attending meetings of the Board that are held outside of the San Francisco Bay Area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Right to Conduct Activities</u>.** The Company hereby agrees and acknowledges that Altimeter Growth Partners Fund IV, L.P. ("***Altimeter***") (together with its Affiliates), Eclipse SPV II, L.P. ("***Eclipse***") (together with its Affiliates), Foundation Capital VIII, L.P. ("***Foundation***") (together with its Affiliates), Moore Strategic Ventures, LLC ("***Moore***") (together with its Affiliates), Benchmark Capital Partners VIII, L.P. ("***Benchmark***") (together with its Affiliates), Coatue CT 61 LLC ("***Coatue***") (together with its Affiliates), Falcon Edge (together with its Affiliates), MOZN (together with its Affiliates), and Fidelity each are professional investment organizations, and as such review the business plans and related proprietary information of many enterprises, some of which may compete directly or indirectly with the Company's business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, Altimeter (and its Affiliates), Eclipse (and its Affiliates), Foundation (and its Affiliates), Moore (and its Affiliates), Benchmark (and its Affiliates), Coatue (and its Affiliates), Falcon Edge (and its Affiliates), MOZN (and its Affiliates) and Fidelity shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by Altimeter (or its Affiliates), Eclipse (and its Affiliates), Foundation (and its Affiliates), Foundation (and its Affiliates), Moore (and its Affiliates), Benchmark (and its Affiliates), Coatue (and its Affiliates), Falcon Edge (and its Affiliates), MOZN (and its Affiliates), and Fidelity in any entity competitive with the Company, or (ii) actions taken by any partner, officer, employee or other representative of Altimeter (or its Affiliates), Eclipse (and its Affiliates), Foundation (and its Affiliates), Foundation (and its Affiliates), Moore (and its Affiliates), Benchmark (and its Affiliates), Coatue (and its Affiliates), Falcon Edge (and its Affiliates), MOZN (and its Affiliates), and Fidelity to assist any such competitive company, whether or not such action was taken as a member of the board of

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directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve (x) Altimeter, Eclipse, Foundation, Moore, Benchmark, Coatue, Falcon Edge, MOZN, and Fidelity from liability associated with the unauthorized disclosure of the Company's confidential information, or (y) any director or officer of the Company from any liability associated with his or her fiduciary duties to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Foreign Corrupt Practices Act</u>.** The Company represents that it shall not, and shall not permit any of its subsidiaries or any of its or their respective directors, officers, managers, employees, independent contractors, representatives or agents to, promise, authorize or make any payment to, or otherwise contribute any item of value, directly or indirectly, to any third party, including any Non-U.S. Official, in each case, in violation of the Foreign Corrupt Practices Act (the "***FCPA***"), the U.K. Bribery Act, or any other applicable antibribery or anti-corruption law. The Company further represents that it shall, and shall cause each of its subsidiaries to, cease all of its or their respective activities, as well as remediate any actions taken by the Company, its subsidiaries or Affiliates, or any of their respective directors, officers, managers, employees, independent contractors, representatives or agents in violation of the FCPA, the U.K. Bribery Act, or any other applicable anti-bribery or anti-corruption law. The Company further represents that it shall, and shall cause each of its subsidiaries to, maintain systems of internal controls (including, but not limited to, accounting systems, purchasing systems and billing systems) to ensure compliance with the FCPA, the U.K. Bribery Act, or any other applicable anti-bribery or anti-corruption law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.<u>TERMINATION</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Generally</u>.** The covenants set forth in Section 2.1, Section 2.2, Section 4 and Section 5 shall terminate and be of no further force or effect upon the earliest to occur of: (a) immediately before the consummation of the IPO; (b) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act; or (c) upon a Deemed Liquidation Event or a Stock Sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Registration Rights</u>.** The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Section 3.1 or Section 3.2 shall terminate upon the earliest to occur of: (a) when all of such Holder's Registrable Securities could be sold without any restriction on volume or manner of sale in any three-month period under SEC Rule 144 or any successor; (b) upon a Deemed Liquidation Event or a Stock Sale; and (c) the fifth (5th) anniversary of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.<u>GENERAL PROVISIONS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>.** The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (a) is an Affiliate, partner, member, limited partner, retired or former partner, retired or former member, or stockholder of a Holder or such Holder's Affiliate; (b) is a Holder's Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder's Immediate Family Members; (c) after such transfer, holds at least two percent (2%) of

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the shares of Registrable Securities (or if the transferring Holder owns less than two percent (2%) of the Registrable Securities, then all Registrable Securities held by the transferring Holder); or (d) is a venture capital fund that is controlled by or under common control with one or more general partners or managing partners or managing members of, or shares the same management company with, the Holder; provided, however, that (i) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (ii) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Section 3.11. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (A) that is an Affiliate, limited partner, retired or former partner, member, retired or former member, or stockholder of a Holder or such Holder's Affiliate; (B) who is a Holder's Immediate Family Member; or (C) that is a trust for the benefit of an individual Holder or such Holder's Immediate Family Member shall be aggregated together and with those of the transferring Holder. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>.** This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware to the extent applicable, and to the extent the General Corporation Law of the State of Delaware is not applicable, the laws of the State of California, without regard to conflict of law principles that would result in the application of any law other than such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts; Facsimile</u>.** This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Titles and Subtitles</u>.** The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5<u>Notices; Electronic Notice</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. All notices, requests, and other communications given, made or delivered pursuant to this Agreement shall be in writing (including electronic mail as permitted in this Agreement) and shall be deemed effectively given, made or delivered upon the

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earlier of actual receipt or: (a) personal delivery to the party to be notified; (b) when sent, if sent by electronic mail or facsimile during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth on Schedule A hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the Company, or to such address, email address or facsimile number as subsequently modified by written notice given in accordance with this Section 7.5. If notice is given to the Company, it shall be sent to 1237 E Arques Ave, Sunnyvale, California 94085, marked "Attention: Chief Executive Officer"; and a copy (which shall not constitute notice) shall also be sent to Latham & Watkins LLP, 140 Scott Drive, Menlo Park, California 94025, Attn: Tad Freese and Sarah Axtell. If notice is given to the Investors, a copy (which shall not constitute notice) shall also be sent to Goodwin Procter LLP, 1900 N Street, NW, Washington, DC 20036, Attn: Alese Bagdol. If no email address or facsimile number is listed on Schedule A for a party (or above in the case of the Company), notices and communications given or made by email or facsimile shall not be deemed effectively given to such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Consent to Electronic Notice.</u> Each party to this Agreement consents to the delivery of any stockholder notice pursuant to the DGCL, as amended or superseded from time to time, by electronic mail pursuant to Section 232 of the DGCL (or any successor thereto) at the electronic mail address set forth below such party's name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books of the Company. Each party to this Agreement agrees to promptly notify the Company of any change in its electronic mail address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments and Waivers</u>.** This Agreement may only be amended or terminated and the observance of any term hereof may be waived (either generally or in a particular instance, and either retroactively or prospectively) only by a written instrument executed by the Company and (a) with respect to Sections 2 and 4 and any other provision of this Agreement to the extent such provision pertains to Section 2 or 4, the holders of at least 65% of the Registrable Securities then outstanding and held by the Major Investors, (b) with respect to Sections 1, 3, 5, 6 and 7 and any other provision of this Agreement to the extent such provision pertains to Section 1, 3, 5, 6 or 7, the holders of at least 65% of the Registrable Securities then outstanding, (c) with respect to Section 3.11, this Section 7.6, the definition of "Fidelity" and the definition of "Lead Investor" as it relates to Fidelity, Fidelity, or (d) with respect to Section 5.5 and any other provision of this Agreement to the extent such provision pertains to Section 5.5, Altimeter, Eclipse, Falcon Edge, MOZN, and Fidelity, solely to the extent such provision pertains to Altimeter, Eclipse, Falcon Edge, MOZN or Fidelity, or (d) with respect to either of the definitions of Affiliate or Competitor in Section 1, solely to the extent such definitions pertain to Falcon Edge, or this Section 7.6(d), Falcon Edge; provided that (i) the Company may in its sole discretion waive compliance with Section 3.12 (and the Company's failure to object promptly in writing after notification of a proposed assignment allegedly in violation of Section 3.12 shall be deemed to be a waiver); (ii) any provision hereof may be waived by any waiving

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party on such party's own behalf, without the consent of any other party; and (iii) the Company may, without the consent or approval of any other party hereto, cause additional persons to become party to this Agreement as Investors or Lenders pursuant to Section 7.14 hereto and amend Schedule A hereto accordingly. Further, this Agreement may not be amended, and no provision hereof may be waived, in each case, in any way which would adversely affect the rights of the Key Holders hereunder in a manner disproportionate to any adverse effect such amendment or waiver would have on the rights of the Investors hereunder, without also the written consent of the holders of a majority of the Registrable Securities held by the Key Holders who are then employed by the Company; provided, however, that the grant to third parties of piggyback registration rights under Section 3.2 hereof shall not be deemed to be an adverse change to the piggyback registration rights of the Key Holders under this Agreement and shall not require the consent of the Key Holders. Further, this Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Major Investor without the written consent of such Major Investor, unless such amendment, termination, or waiver applies to all Major Investors in the same fashion. Any amendment, termination, or waiver effected in accordance with this Section 7.6 shall be binding on each party hereto and all of such party's successors and permitted assigns, regardless of whether or not any such party, successor or assignee entered into or approved such amendment, termination, or waiver. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>.** In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Aggregation of Stock</u>.** All shares of Registrable Securities held or acquired by affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.** The Prior Agreement is amended and restated hereby in its entirety. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled and replaced with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Third Parties</u>.** Except as set forth in Section 3.11 of this Agreement, nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties hereto and their successors and assigns, any rights or remedies under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Delays or Omissions</u>.** No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other

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party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Dispute Resolution</u>.** The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the federal or state courts located in the Northern District of California for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the federal or state courts located in the Northern District of California, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that a party is not subject to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution based upon judgment or order of such court(s), that any suit, action or proceeding arising out of or based upon this Agreement commenced in the federal or state courts located in the Northern District of California is brought in an inconvenient forum, that the venue of such suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Should any party commence a suit, action or other proceeding arising out of or based upon this Agreement in a forum other than the federal or state courts located in the Northern District of California, or should any party otherwise seek to transfer or dismiss such suit, action or proceeding from such court(s), that party shall indemnify and reimburse the other party for all legal costs and expenses incurred in enforcing this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Attorneys' Fees</u>.** If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Investors and Lenders</u>.** Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company's Series G Preferred Stock after the date hereof, any purchaser of such shares of Series G Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement, and thereafter shall be deemed an "Investor" for all purposes hereunder. In addition, notwithstanding anything to the contrary contained herein, if the Company issues any Lender Warrant, any recipient of a Lender Warrant may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement, and thereafter shall be deemed a "Lender" for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor or Lender, so long as such additional Investor or Lender has agreed in writing to be bound by all of the obligations as an "Investor" or a "Lender" hereunder, as applicable.

**[SIGNATURE PAGES FOLLOW]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>COMPANY</u>:** | **<u>COMPANY</u>:** |
| **CEREBRAS SYSTEMS INC.** | **CEREBRAS SYSTEMS INC.** |
| By: | /s/ Andrew Feldman |
| Name: | Andrew Feldman |
| Title: | Chief Executive Officer |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity Securities Fund: Fidelity Blue Chip Growth Fund** | **Fidelity Securities Fund: Fidelity Blue Chip Growth Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Blue Chip Growth Commingled Pool** | **Fidelity Blue Chip Growth Commingled Pool** |
| **By: Fidelity Management Trust Company, as Trustee** | **By: Fidelity Management Trust Company, as Trustee** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Blue Chip Growth Multi-Asset Base Fund**<br>**by its manager Fidelity Investments Canada ULC** | **Fidelity Blue Chip Growth Multi-Asset Base Fund**<br>**by its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Securities Fund: Fidelity Blue Chip Growth K6 Fund** | **Fidelity Securities Fund: Fidelity Blue Chip Growth K6 Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Blue Chip Growth Institutional Trust** | **Fidelity Blue Chip Growth Institutional Trust** |
| **By its manager Fidelity Investments Canada ULC** | **By its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity Securities Fund: Fidelity Blue Chip Growth Fund** | **Fidelity Securities Fund: Fidelity Blue Chip Growth Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **FIAM Target Date Blue Chip Growth Commingled Pool** | **FIAM Target Date Blue Chip Growth Commingled Pool** |
| **By: Fidelity Institutional Asset Management Trust Company as Trustee** | **By: Fidelity Institutional Asset Management Trust Company as Trustee** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Select Portfolios: Select Semiconductors Portfolio** | **Fidelity Select Portfolios: Select Semiconductors Portfolio** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Advisor Series VII: FA Semiconductors Fund** | **Fidelity Advisor Series VII: FA Semiconductors Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Advisor Series VII: Fidelity Advisor Technology Fund** | **Fidelity Advisor Series VII: Fidelity Advisor Technology Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity Select Portfolios: Select Technology Portfolio** | **Fidelity Select Portfolios: Select Technology Portfolio** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Variable Insurance Products Fund IV: VIP Technology Portfolio** | **Variable Insurance Products Fund IV: VIP Technology Portfolio** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Variable Insurance Products Fund III: Growth Opportunities Portfolio** | **Variable Insurance Products Fund III: Growth Opportunities Portfolio** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Advisor Series I: Fidelity Advisor Growth Opportunities Fund** | **Fidelity Advisor Series I: Fidelity Advisor Growth Opportunities Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Advisor Series I: Fidelity Advisor Series Growth Opportunities Fund** | **Fidelity Advisor Series I: Fidelity Advisor Series Growth Opportunities Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity U.S. Growth Opportunities Investment Trust** | **Fidelity U.S. Growth Opportunities Investment Trust** |
| **by its manager Fidelity Investments Canada ULC** | **by its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity NorthStar Fund – Sub D** | **Fidelity NorthStar Fund – Sub D** |
| **by its manager Fidelity Investments Canada ULC** | **by its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund** | **Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund** | **Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Growth Company Commingled Pool** | **Fidelity Growth Company Commingled Pool** |
| **By: Fidelity Management Trust Company, as Trustee** | **By: Fidelity Management Trust Company, as Trustee** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity Mt. Vernon Street Trust: Fidelity Growth Company K6 Fund** | **Fidelity Mt. Vernon Street Trust: Fidelity Growth Company K6 Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Canadian Growth Company Fund** | **Fidelity Canadian Growth Company Fund** |
| **by its manager Fidelity Investments Canada ULC** | **by its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Special Situations Fund** | **Fidelity Special Situations Fund** |
| **by its manager Fidelity Investments Canada ULC** | **by its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Global Innovators Investment Trust** | **Fidelity Global Innovators Investment Trust** |
| **by its manager Fidelity Investments Canada ULC** | **by its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Venture Capital Fund I LP** | **Fidelity Venture Capital Fund I LP** |
| **By: Fidelity Diversifying Solutions LLC as Investment Manager** | **By: Fidelity Diversifying Solutions LLC as Investment Manager** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity Contrafund Commingled Pool** | **Fidelity Contrafund Commingled Pool** |
| **By: Fidelity Management Trust Company, as Trustee** | **By: Fidelity Management Trust Company, as Trustee** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Contrafund: Fidelity Contrafund K6** | **Fidelity Contrafund: Fidelity Contrafund K6** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Contrafund: Fidelity Contrafund** | **Fidelity Contrafund: Fidelity Contrafund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Contrafund: Fidelity Advisor New Insights Fund** | **Fidelity Contrafund: Fidelity Advisor New Insights Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Global Growth and Value Investment Trust** | **Fidelity Global Growth and Value Investment Trust** |
| **By its manager Fidelity Investments Canada ULC** | **By its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Fidelity Insights Investment Trust** | **Fidelity Insights Investment Trust** |
| **By its manager Fidelity Investments Canada ULC** | **By its manager Fidelity Investments Canada ULC** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Fidelity Contrafund: Fidelity Series Opportunistic Insights Fund** | **Fidelity Contrafund: Fidelity Series Opportunistic Insights Fund** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |
| **Variable Insurance Products Fund II: VIP Contrafund Portfolio** | **Variable Insurance Products Fund II: VIP Contrafund Portfolio** |
| By: | /s/ Chris Maher |
| Name: | Chris Maher |
| Title: | Authorized Signatory |

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**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **VAAI CEREBRAS HOLDINGS L.P.** | **VAAI CEREBRAS HOLDINGS L.P.** |
| By: VAAI Cerebras GP Holdings, LLC, its General Partner | By: VAAI Cerebras GP Holdings, LLC, its General Partner |
| By: | /s/ Gavin Baker |
| Name: | Gavin Baker |
| Title: | Authorized Officer |
| **ATREIDES FOUNDATION MASTER FUND LP** | **ATREIDES FOUNDATION MASTER FUND LP** |
| By: Atreides Foundation Fund GP, LLC, its General Partner | By: Atreides Foundation Fund GP, LLC, its General Partner |
| By: | /s/ Gavin Baker |
| Name: | Gavin Baker |
| Title: | Managing Member |
| **SERIES S DIS, A SERIES OF ATREIDES SPECIAL CIRCUMSTANCES FUND, LLC** | **SERIES S DIS, A SERIES OF ATREIDES SPECIAL CIRCUMSTANCES FUND, LLC** |
| By: Atreides Special Circumstances, LLC, its Managing Member | By: Atreides Special Circumstances, LLC, its Managing Member |
| By: | /s/ Gavin Baker |
| Name: | Gavin Baker |
| Title: | Managing Member |
| **ATREIDES ARRAKIS MASTER FUND, LP** | **ATREIDES ARRAKIS MASTER FUND, LP** |
| By: Atreides Ventures GP, LLC, its General Partner | By: Atreides Ventures GP, LLC, its General Partner |
| By: | /s/ Gavin Baker |
| Name: | Gavin Baker |
| Title: | Managing Member |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **TIGER GLOBAL PIP 16 LLC** | **TIGER GLOBAL PIP 16 LLC** |
| By: Tiger Global PIP Management, LLC, its Manager | By: Tiger Global PIP Management, LLC, its Manager |
| By: Tiger Global Management, LLC, its Manager | By: Tiger Global Management, LLC, its Manager |
| By: | /s/ Richard Fortunato |
| Name: | Richard Fortunato |
| Title: | Legal Counsel |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **CLAURE GROUP LLC** | **CLAURE GROUP LLC** |
| By: | /s/ Joan Papadakis |
| Name: | Joan Papadakis |
| Title: | COO |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **HANABI CAPITAL FUND I, L.P.** | **HANABI CAPITAL FUND I, L.P.** |
| By: Hanabi Capital Fund I GP, LLC | By: Hanabi Capital Fund I GP, LLC |
| Its: General Partner | Its: General Partner |
| By: | /s/ Michelangelo Volpi |
| Name: | Michelangelo Volpi |
| Title: | Managing Member |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **ALTIMETER PARTNERS FUND, L.P.** | **ALTIMETER PARTNERS FUND, L.P.** |
| By: Altimeter General Partner, LLC | By: Altimeter General Partner, LLC |
| Its: General Partner | Its: General Partner |
| By: | /s/ John J. Kiernan III |
| Name: | John J. Kiernan III |
| Title: | Chief Financial Officer |
| **ALTIMETER PRIVATE PARTNERS FUND II, L.P.** | **ALTIMETER PRIVATE PARTNERS FUND II, L.P.** |
| By: Altimeter Private General Partner II, LLC | By: Altimeter Private General Partner II, LLC |
| Its: General Partner | Its: General Partner |
| By: | /s/ John J. Kiernan III |
| Name: | John J. Kiernan III |
| Title: | Authorized Person |
| **ALTIMETER GROWTH PARTNERS FUND III, L.P.** | **ALTIMETER GROWTH PARTNERS FUND III, L.P.** |
| By: Altimeter Growth General Partner III, LLC | By: Altimeter Growth General Partner III, LLC |
| Its: General Partner | Its: General Partner |
| By: | /s/ John J. Kiernan III |
| Name: | John J. Kiernan III |
| Title: | Authorized Person |
| **ALTIMETER GROWTH PARTNERS FUND IV, L.P.** | **ALTIMETER GROWTH PARTNERS FUND IV, L.P.** |
| By: Altimeter Growth General Partner IV, LLC | By: Altimeter Growth General Partner IV, LLC |
| Its: General Partner | Its: General Partner |
| By: | /s/ John J. Kiernan III |
| Name: | John J. Kiernan III |
| Title: | Authorized Person |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **BENCHMARK CAPITAL PARTNERS IX, L.P.** | **BENCHMARK CAPITAL PARTNERS IX, L.P.** |
| as nominee for<br>Benchmark Capital Partners IX, L.P.,<br>Benchmark Founders' Fund IX, L.P.,<br>Benchmark Founders' Fund IX-A, L.P., and<br>Benchmark Founders' Fund IX-B, L.P. | as nominee for<br>Benchmark Capital Partners IX, L.P.,<br>Benchmark Founders' Fund IX, L.P.,<br>Benchmark Founders' Fund IX-A, L.P., and<br>Benchmark Founders' Fund IX-B, L.P. |
| By: Benchmark Capital Management Co. IX, L.L.C.,<br>its general partner | By: Benchmark Capital Management Co. IX, L.L.C.,<br>its general partner |
| By: | /s/ An-Yen Hu |
| Name: | An-Yen Hu |
| Title: | Managing Member |
| **BENCHMARK CAPITAL PARTNERS VIII, L.P.** | **BENCHMARK CAPITAL PARTNERS VIII, L.P.** |
| as nominee for<br>Benchmark Capital Partners VIII, L.P.,<br>Benchmark Founders' Fund VIII, L.P.,<br>and Benchmark Founders' Fund VIII-B, L.P. | as nominee for<br>Benchmark Capital Partners VIII, L.P.,<br>Benchmark Founders' Fund VIII, L.P.,<br>and Benchmark Founders' Fund VIII-B, L.P. |
| By: Benchmark Capital Management Co. VIII, L.L.C.,<br>its general partner | By: Benchmark Capital Management Co. VIII, L.L.C.,<br>its general partner |
| By: | /s/ An-Yen Hu |
| Name: | An-Yen Hu |
| Title: | Managing Member |

---

------

IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **WAFER SCALE INVESTMENTS LLC** | **WAFER SCALE INVESTMENTS LLC** |
| By: | /s/ Zachary Frankel |
| Name: | Zachary Frankel |
| Title: | Manager |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **ALPHA WAVE HOLDINGS, LP** | **ALPHA WAVE HOLDINGS, LP** |
| By: | /s/ Cathy Weist |
| Name: | Cathy Weist |
| Title: | Authorized Signatory |
| **ALPHA WAVE VENTURES II, LP** | **ALPHA WAVE VENTURES II, LP** |
| By: | /s/ Cathy Weist |
| Name: | Cathy Weist |
| Title: | Authorized Signatory |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **FALCON Q LP** | **FALCON Q LP** |
| By: | /s/ Cathy Weist |
| Name: | Cathy Weist |
| Title: | Authorized Signatory |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **ADAMS STREET LEADERS FUND II LP** | **ADAMS STREET LEADERS FUND II LP** |
| By: ASP Carry Partners Leaders II GP, its General Partner | By: ASP Carry Partners Leaders II GP, its General Partner |
| By: Adams Street Leaders GP-GP LLC, its General Partner | By: Adams Street Leaders GP-GP LLC, its General Partner |
| By: Adams Street Partners, LLC, its Managing Member | By: Adams Street Partners, LLC, its Managing Member |
| By: | /s/ Stephen Bluestein |
| Name: | Stephen Bluestein |
| Title: | Partner |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

------

IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **FLAT CAPITAL AB** | **FLAT CAPITAL AB** |
| By: | /s/ Hanna Andreen |
| Name: | Hanna Andreen |
| Title: | CEO |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **DIEGO DAYENOFF** | **DIEGO DAYENOFF** |
| By: | /s/ Diego Dayenoff |
| Name: | Diego Dayenoff |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **BATAVIA MANAGEMENT LLC** | **BATAVIA MANAGEMENT LLC** |
| By: | /s/ Saurabh Jalan |
| Name: | Saurabh Jalan |
| Title: | Manager |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **THE JOAN PAPADAKIS REVOCABLE TRUST** | **THE JOAN PAPADAKIS REVOCABLE TRUST** |
| By: | /s/ Joan Papadakis |
| Name: | Joan Papadakis |
| Title: | Trustee |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **DYLAN FIELD** | **DYLAN FIELD** |
| By: | /s/ Dylan Field |
| Name: | Dylan Field |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **COATUE PRIVATE FUND II LP** | **COATUE PRIVATE FUND II LP** |
| By: Coatue Private II GP LLC, its General Partner | By: Coatue Private II GP LLC, its General Partner |
| By: | /s/ Brent Duddie |
| Name: | Brent Duddie |
| Title: | Authorized Signatory |
| **COATUE CT 61 LLC** | **COATUE CT 61 LLC** |
| By: | /s/ Brent Duddie |
| Name: | Brent Duddie |
| Title: | Authorized Signatory |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **ECLIPSE VENTURES FUND I, L.P.** | **ECLIPSE VENTURES FUND I, L.P.** |
| By: Eclipse Ventures GP I, LLC, its General Partner | By: Eclipse Ventures GP I, LLC, its General Partner |
| By: | /s/ Greg Lyon |
| Name: | Greg Lyon |
| Title: | CFO |
| **ECLIPSE CONTINUITY FUND I, L.P.** | **ECLIPSE CONTINUITY FUND I, L.P.** |
| By: Eclipse Continuity GP I, LLC, its General Partner | By: Eclipse Continuity GP I, LLC, its General Partner |
| By: | /s/ Greg Lyon |
| Name: | Greg Lyon |
| Title: | CFO |
| **ECLIPSE SPV II, L.P.** | **ECLIPSE SPV II, L.P.** |
| By: Eclipse SPV II GP, LLC, its General Partner | By: Eclipse SPV II GP, LLC, its General Partner |
| By: | /s/ Greg Lyon |
| Name: | Greg Lyon |
| Title: | CFO |
| **ECLIPSE SPV XIII, L.P.** | **ECLIPSE SPV XIII, L.P.** |
| By: Eclipse SPV XIII GP, LLC, its General Partner | By: Eclipse SPV XIII GP, LLC, its General Partner |
| By: | /s/ Greg Lyon |
| Name: | Greg Lyon |
| Title: | CFO |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

------

IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **FOUNDATION CAPITAL VIII, L.P.** | **FOUNDATION CAPITAL VIII, L.P.** |
| By: Foundation Capital Management Co. VIII, LLC, its Manager | By: Foundation Capital Management Co. VIII, LLC, its Manager |
| By: | /s/ Steve Vassallo |
| Name: | Steve Vassallo |
| Title: | Manager |
| **FOUNDATION CAPITAL VIII PRINCIPALS FUND, LLC** | **FOUNDATION CAPITAL VIII PRINCIPALS FUND, LLC** |
| By: Foundation Capital Management Co. VIII, LLC, its Manager | By: Foundation Capital Management Co. VIII, LLC, its Manager |
| By: | /s/ Steve Vassallo |
| Name: | Steve Vassallo |
| Title: | Manager |
| **FOUNDATION CAPITAL LEADERSHIP FUND II, L.P.** | **FOUNDATION CAPITAL LEADERSHIP FUND II, L.P.** |
| By: Foundation Capital Management Co. LF II, LLC, its Manager | By: Foundation Capital Management Co. LF II, LLC, its Manager |
| By: | /s/ Steve Vassallo |
| Name: | Steve Vassallo |
| Title: | Manager |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

------

IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **Gherardesca Capital LP** | **Gherardesca Capital LP** |
| By: | /s/ Byron Rodriguez |
| Name: | Byron Rodriguez |
| Title: | General Partner |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **FLYBRIDGE ASSOCIATES OPPORTUNITIES 2022, L.P.** | **FLYBRIDGE ASSOCIATES OPPORTUNITIES 2022, L.P.** |
| By: Flybridge Opportunities 2022 G.P., L.L.C. | By: Flybridge Opportunities 2022 G.P., L.L.C. |
| Its General Partner | Its General Partner |
| By: | /s/ Charles M. Hazard, Jr. |
| Name: | Charles M. Hazard, Jr. |
| Title: | Managing Member |
| **FLYBRIDGE OPPORTUNITIES 2022, L.P.** | **FLYBRIDGE OPPORTUNITIES 2022, L.P.** |
| By: Flybridge Opportunities 2022 G.P., L.L.C. | By: Flybridge Opportunities 2022 G.P., L.L.C. |
| Its General Partner | Its General Partner |
| By: | /s/ Charles M. Hazard, Jr. |
| Name: | Charles M. Hazard, Jr. |
| Title: | Managing Member |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **1789-PACIFIC ALLIANCE US GROWTH EQUITY FUND, LP** | **1789-PACIFIC ALLIANCE US GROWTH EQUITY FUND, LP** |
| By: 1789-Pacific Alliance GP, LLC, its general partner | By: 1789-Pacific Alliance GP, LLC, its general partner |
| By: 1789-Pacific Alliance Partners, LLC, its sole member | By: 1789-Pacific Alliance Partners, LLC, its sole member |
| By: | /s/ Omeed Malik |
| Name: | Omeed Malik |
| Title: | Manager |
| **1789 CAPITAL FUND I, LP** | **1789 CAPITAL FUND I, LP** |
| By: 1789 Capital Fund I GP, LLC, its general partner | By: 1789 Capital Fund I GP, LLC, its general partner |
| By: 1789 Capital Holdings, LLC, its sole member | By: 1789 Capital Holdings, LLC, its sole member |
| By: Knights Court, LLC, its manager | By: Knights Court, LLC, its manager |
| By: | /s/ Omeed Malik |
| Name: | Omeed Malik |
| Title: | Manager |
| **1789 PARALLEL FUND I, LP** | **1789 PARALLEL FUND I, LP** |
| By: 1789 Capital Fund I GP, LLC, its general partner | By: 1789 Capital Fund I GP, LLC, its general partner |
| By: 1789 Capital Holdings, LLC, its sole member | By: 1789 Capital Holdings, LLC, its sole member |
| By: Knights Court, LLC, its manager | By: Knights Court, LLC, its manager |
| By: | /s/ Omeed Malik |
| Name: | Omeed Malik |
| Title: | Manager |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>INVESTORS</u>:** | **<u>INVESTORS</u>:** |
| **DSH I a Series of SLRTE I LLC** | **DSH I a Series of SLRTE I LLC** |
| By: | /s/ Mohib Jafri |
| Name: | Mohib Jafri |
| Title: | Office of the Issuers Administrator via Demeter Strategic Holdings LLC |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>KEY HOLDERS</u>:** | **<u>KEY HOLDERS</u>:** |
| **ANDREW FELDMAN** | **ANDREW FELDMAN** |
| | /s/ Andrew Feldman |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **VY FUND I, LP** | **VY FUND I, LP** |
| **<u>PROXYHOLDER</u>:** | **<u>PROXYHOLDER</u>:** |
| | /s/ Andrew Feldman |
| Name: | Andrew Feldman |
| **VY FUND I HH, L.P.** | **VY FUND I HH, L.P.** |
| **<u>PROXYHOLDER</u>:** | **<u>PROXYHOLDER</u>:** |
| | /s/ Andrew Feldman |
| Name: | Andrew Feldman |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>KEY HOLDERS</u>:** | **<u>KEY HOLDERS</u>:** |
| **GARY LAUTERBACH** | **GARY LAUTERBACH** |
| | /s/ Gary Lauterbach |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | |
|:---|:---|
| **<u>KEY HOLDERS</u>:** | **<u>KEY HOLDERS</u>:** |
| **THE GARY AND VALERIE LAUTERBACH REVOCABLE LIVING TRUST** | **THE GARY AND VALERIE LAUTERBACH REVOCABLE LIVING TRUST** |
| By: | /s/ Gary Lauterbach |
| Name: | Gary Lauterbach |
| Title: | Trustee |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

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| | | |
|:---|:---|:---|
| **<u>KEY HOLDERS</u>:** | **<u>KEY HOLDERS</u>:** | **<u>KEY HOLDERS</u>:** |
| **JEAN-PHILIPPE FRICKER** | **JEAN-PHILIPPE FRICKER** | **JEAN-PHILIPPE FRICKER** |
|  | /s/ Jean-Philippe Fricker | /s/ Jean-Philippe Fricker |
| **JEAN-PHILIPPE FRICKER AND**<br>**ANNE-FRANCE FRICKER, TRUSTEES**<br>**OF THE FRICKER REVOLCABLE TRUST**<br>**DATED AUGUST 10, 2020** | **JEAN-PHILIPPE FRICKER AND**<br>**ANNE-FRANCE FRICKER, TRUSTEES**<br>**OF THE FRICKER REVOLCABLE TRUST**<br>**DATED AUGUST 10, 2020** | **JEAN-PHILIPPE FRICKER AND**<br>**ANNE-FRANCE FRICKER, TRUSTEES**<br>**OF THE FRICKER REVOLCABLE TRUST**<br>**DATED AUGUST 10, 2020** |
| By: |  | /s/ Jean-Philippe Fricker |
| Name: | Name: | Jean-Philippe Fricker |
| Title: | Title: | Trustee |
| By: |  | /s/ Anne-France Fricker |
| Name: | Name: | Anne-France Fricker |
| Title: | Title: | Trustee |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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IN WITNESS WHEREOF, the parties have executed this **Amended and Restated Investors' Rights Agreement** as of the date first written above.

---

| | |
|:---|:---|
| **<u>KEY HOLDERS</u>:** | **<u>KEY HOLDERS</u>:** |
| **SEAN LIE** | **SEAN LIE** |
| | /s/ Sean Lie |

---

**[SIGNATURE PAGE TO CEREBRAS SYSTEMS INC. SERIES G AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]**

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**<u>SCHEDULE A</u>**

**List of Investors**

---

| |
|:---|
| **Name and Address of Investor** |
| Altimeter Partners Fund, L.P.<br>c/o Altimeter Capital Management, LP<br>[\*\*\*]<br>with a copy to: <br>General Counsel<br>Altimeter Capital Management, LP<br>[\*\*\*] |
| Altimeter Private Partners Fund II, L.P.<br>c/o Altimeter Capital Management, LP<br>[\*\*\*]<br>with a copy to: <br>General Counsel<br>Altimeter Capital Management, LP<br>[\*\*\*] |
| Altimeter Growth Partners Fund III, L.P.<br>c/o Altimeter Capital Management, LP<br>[\*\*\*]<br>with a copy to:<br>General Counsel<br>Altimeter Capital Management, LP<br>[\*\*\*] |
| Altimeter Growth Partners Fund IV, L.P.<br>c/o Altimeter Capital Management, LP<br>[\*\*\*]<br>with a copy to:<br>General Counsel<br>Altimeter Capital Management, LP<br>[\*\*\*] |
| Moore Strategic Ventures, LLC<br>[\*\*\*] |
| Baidu Capital, L.P.<br>[\*\*\*] |

---

------

---

| |
|:---|
| VY Fund I, LP<br>c/o Vy Capital Management Company Limited<br>[\*\*\*] |
| The Washington University<br>[\*\*\*] |
| Mount Rainier Investment Limited<br>c/o Tencent Holdings Limited<br>[\*\*\*]<br>with a copy to:<br>Tencent Building, Keji Zhongyi Avenue,<br>[\*\*\*] |
| Coatue CT 61 LLC<br>[\*\*\*] |
| Coatue Private Fund II LP<br>[\*\*\*] |
| Foundation Capital VIII, L.P.<br>[\*\*\*] |
| Foundation Capital VIII Principals Fund, LLC<br>[\*\*\*] |
| Benchmark Capital Partners VIII, L.P.<br>[\*\*\*] |
| Eclipse Ventures Fund I, L.P.<br>[\*\*\*] |
| Eclipse Continuity Fund I, L.P.<br>[\*\*\*] |
| Eclipse SPV II, L.P.<br>[\*\*\*] |
| Adam D'Angelo Revocable Trust<br>[\*\*\*] |
| Christopher A. Cole<br>[\*\*\*] |
| Ugglasset Handelsbolag (Limited Partnership)<br>[\*\*\*] |
| SEB Fund Services S.A. for and on behalf of IOR FCP-SIF<br>SEB Private Banking<br>[\*\*\*] |
| Leslie Family Trust U/A 2/7/96<br>[\*\*\*] |
| Leslie Enterprises LP<br>[\*\*\*] |
| Altman Family LLC<br>[\*\*\*] |

---

------

---

| |
|:---|
| A&E Investment LLC<br>[\*\*\*] |
| Kushagra Vaid<br>[\*\*\*] |
| Emerging Technologies Fund II LLC<br>[\*\*\*] |
| Emerging Technologies Fund III LLC<br>[\*\*\*] |
| Lemida, LLC<br>[\*\*\*] |
| Fathom Capital, L.P.<br>[\*\*\*] |
| Greg Brockman<br>[\*\*\*] |
| Ilya Sutskever<br>[\*\*\*] |
| SV Angel VI, L.P.<br>[\*\*\*] |
| Sindhu Family Trust<br>[\*\*\*] |
| The Nicholas and Asena McKeown 2012 Revocable Trust<br>[\*\*\*] |
| &nbsp;&nbsp;Nagarani Chandika<br>11101 Chadwick Pl.<br>Cupertino CA 95014 |
| Specialized Fund I, LLC<br>[\*\*\*] |
| Rothschild Revocable Living Trust<br>[\*\*\*] |
| Philip Ferolito<br>[\*\*\*] |
| Andreas Bechtolsheim<br>[\*\*\*] |
| Trevor Blackwell<br>[\*\*\*] |
| John Schulman<br>[\*\*\*] |
| Argean Dynasty LLC<br>Argean Capital<br>[\*\*\*] |
| David and Sima Haya Perlmutter<br>[\*\*\*] |

---

------

---

| |
|:---|
| OFPP LLC<br>c/o Open Field Capital<br>[\*\*\*] |
| Davis Investment Holdings, LLC<br>[\*\*\*] |
| Anthony E. Maslowski Trust<br>[\*\*\*] |
| CAZ Partners Fund, L.P.<br>[\*\*\*] |
| CAZ PEA2 Cerebras Aggregator, L.P.<br>[\*\*\*] |
| CAZ BB Aggregator, L.P.<br>[\*\*\*] |
| In-Q-Tel, Inc.<br>[\*\*\*] |
| Foundation Capital Leadership Fund II, L.P.<br>[\*\*\*] |
| Dharma Revocable Living Trust<br>c/o Bradley Horowitz<br>[\*\*\*] |
| &nbsp;&nbsp;Roger Biscay |
| Alpha Wave Holdings, LP<br>[\*\*\*]<br>with a copy to:<br>Alpha Wave Global LP<br>[\*\*\*] |
| Alpha Wave Ventures II, LP<br>[\*\*\*]<br>with a copy to:<br>Alpha Wave Global LP<br>[\*\*\*] |
| Falcon Q LP<br>c/o Maples and Calder<br>[\*\*\*]<br>with a copy to:<br>Alpha Wave Global LP<br>[\*\*\*] |

---

------

---

| |
|:---|
| Mozn Holding Limited<br>[\*\*\*]<br>Address for Notice:<br>G42, Level 12, Capital Gate Tower<br>[\*\*\*] |
| Harvard Management Private Equity Corporation<br>c/o Harvard Management Company, Inc.<br>[\*\*\*] |
| Pomegranate AI LLC<br>[\*\*\*] |
| Totem Turing Accelerator, LP<br>c/o Totem Point Management, LLC<br>[\*\*\*] |
| CE Fund I, A Series of AngelList-GP-Funds-I, LP<br>[\*\*\*] |
| Advanced Micro Devices, Inc.<br>[\*\*\*] |
| Qualcomm Ventures LLC<br>[\*\*\*] |
| Atreides Foundation Master Fund LP<br>[\*\*\*] |
| Atreides Arrakis Master Fund, LP<br>[\*\*\*] |
| Valor R&D Series LLC – Series IQ<br>[\*\*\*] |
| Emerging Fund, L.P.<br>[\*\*\*] |
| Fidelity Securities Fund: Fidelity Blue Chip Growth Fund<br>Mag & Co.<br>c/o Brown Brothers Harriman & Co.<br>[\*\*\*] |
| Fidelity Blue Chip Growth Commingled Pool<br>Mag & Co.<br>c/o Brown Brothers Harriman & Co.<br>[\*\*\*] |
| Fidelity Blue Chip Growth Multi-Asset Base Fund<br>[\*\*\*] |
| Fidelity Securities Fund: Fidelity Blue Chip Growth K6 Fund<br>[\*\*\*] |
| Fidelity Blue Chip Growth Institutional Trust<br>[\*\*\*] |

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| |
|:---|
| Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund<br>[\*\*\*] |
| FIAM Target Date Blue Chip Growth Commingled Pool<br>[\*\*\*] |
| Fidelity Select Portfolios: Select Semiconductors Portfolio<br>[\*\*\*] |
| Fidelity Advisor Series VII: FA Semiconductors Fund<br>[\*\*\*] |
| Fidelity Advisor Series VII: Fidelity Advisor Technology Fund<br>[\*\*\*] |
| Fidelity Select Portfolios: Select Technology Portfolio<br>[\*\*\*] |
| Variable Insurance Products Fund IV: VIP Technology Portfolio<br>[\*\*\*] |
| Variable Insurance Products Fund III: Growth Opportunities Portfolio<br>[\*\*\*] |
| Fidelity Advisor Series I: Fidelity Advisor Growth Opportunities Fund<br>[\*\*\*] |
| Fidelity Advisor Series I: Fidelity Advisor Series Growth Opportunities Fund<br>[\*\*\*] |
| Fidelity U.S. Growth Opportunities Investment Trust<br>[\*\*\*] |
| Fidelity NorthStar Fund - Sub D<br>[\*\*\*] |
| Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund<br>[\*\*\*] |
| Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund<br>[\*\*\*] |
| Fidelity Growth Company Commingled Pool<br>[\*\*\*] |
| Fidelity Mt. Vernon Street Trust : Fidelity Growth Company K6 Fund<br>[\*\*\*] |
| Fidelity Canadian Growth Company Fund<br>[\*\*\*] |
| Fidelity Special Situations Fund<br>[\*\*\*] |
| Fidelity Global Innovators Investment Trust <br>[\*\*\*] |
| Fidelity Venture Capital Fund I LP<br>[\*\*\*] |
| Fidelity Contrafund Commingled Pool <br>[\*\*\*] |

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| |
|:---|
| Fidelity Contrafund: Fidelity Contrafund K6<br>[\*\*\*] |
| Fidelity Contrafund: Fidelity Contrafund<br>[\*\*\*] |
| Fidelity Contrafund: Fidelity Advisor New Insights Fund<br>[\*\*\*] |
| Fidelity Global Growth and Value Investment Trust <br>[\*\*\*] |
| Fidelity Insights Investment Trust <br>[\*\*\*] |
| Fidelity Contrafund: Fidelity Series Opportunistic Insights Fund<br>[\*\*\*] |
| Variable Insurance Products Fund II: VIP Contrafund Portfolio<br>[\*\*\*] |
| VAAI Cerebras Holdings L.P.<br>[\*\*\*] |
| Atreides Foundation Master Fund LP<br>[\*\*\*] |
| Atreides Special Circumstances Fund, LLC – Series S Dis<br>[\*\*\*] |
| Tiger Global PIP 16 LLC<br>[\*\*\*] |
| Claure Group LLC<br>[\*\*\*] |
| Hanabi Capital Fund I, L.P.<br>[\*\*\*] |
| Benchmark Capital Partners IX, L.P.<br>[\*\*\*] |
| Adams Street Leaders Fund II LP<br>[\*\*\*] |
| Flat Capital AB<br>[\*\*\*] |
| Diego Dayenoff<br>[\*\*\*] |
| Batavia Management LLC<br>[\*\*\*] |
| The Joan Papadakis Revocable Trust<br>[\*\*\*] |
| Dylan Field<br>C/O ICONIQ Capital<br>[\*\*\*] |
| Wafer Scale Investments LLC<br>[\*\*\*] |

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| |
|:---|
| Gherardesca Capital LP<br>[\*\*\*] |
| Flybridge Opportunities 2022, L.P.<br>[\*\*\*] |
| Flybridge Associates Opportunities 2022, L.P.<br>[\*\*\*] |
| 1789-Pacific Alliance US Growth Equity Fund, LP<br>[\*\*\*] |
| 1789 Capital Fund I, LP<br>[\*\*\*] |
| 1789 Parallel Fund I, LP<br>[\*\*\*] |
| DSH I a Series of SLRTE I LLC<br>c/o Seed Labs<br>[\*\*\*] |

---

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**<u>SCHEDULE B</u>**

**List of Key Holders**

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| | |
|:---|:---|
| **Name and Address of Key Holder** | **Number of Shares of Common Stock Initially Held** |
| &nbsp;&nbsp;Andrew Feldman<br>[\*\*\*] | 9000000 |
| &nbsp;&nbsp;Sean Lie<br>[\*\*\*] | 6000000 |
| &nbsp;&nbsp;JP Fricker<br>[\*\*\*] | 3000000 |
| &nbsp;&nbsp;Michael James<br>[\*\*\*] | 6000000 |
| &nbsp;&nbsp;Gary Lauterbach<br>[\*\*\*] | 6000000 |

---

## Exhibit 10.1

**Exhibit 10.1(a)**

![exhibit10a.jpg](exhibit10a.jpg)

**STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE - NET**

**(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)**

**1.&nbsp;&nbsp;&nbsp;&nbsp;Basic Provisions ("Basic Provisions").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;**Parties.** This Lease ("**Lease**"), dated for reference purposes only <u>January</u> <u>27,</u> <u>2022</u> , is made by and between <u>Xinbei</u> <u>Tech,</u> <u>Inc.,</u> <u>a</u> <u>California</u> <u>corporation</u> ("**Lessor**") and <u>Cerebras</u> <u>Systems,</u> <u>Inc.,</u> <u>a</u> <u>Delaware corporation</u> ("**Lessee**"), (collectively the "**Parties**," or individually a "**Party**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;**Premises:** That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, commonly known as (street address, city, state, zip): <u>1237</u> <u>E, Arques</u> <u>Avenue, Sunnyvale,</u> <u>California</u> <u>94085</u> ("**Premises**"). The Premises are located in the County of <u>Santa</u> <u>Clara</u> , and are generally described as (describe briefly the nature of the property and , if applicable, the "**Project**," if the property is located within a Project): <u>N/A</u> . (See also Paragraph 2)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;**Term:** <u>One</u> <u>(1)</u> years and <u>zero</u> <u>(0)</u> months ("**Original Term**") commencing <u>December</u> <u>1,</u> <u>2022</u> ("**Commencement Date**") and ending <u>November</u> <u>30,</u> <u>2023</u> ("**Expiration Date**"). (See also Paragraph 3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;**Early Possession:** Lessee is currently in possession of the Premises. If the Premises are available Lessee may have non-exclusive possession of the Premises commencing<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ("**Early Possession Date**"). (See also Paragraphs 3.2 and 3.3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;**Base Rent:** <u>$181,811.20</u> per month ("**Base Rent**"), payable on the <u>first</u> <u>(1st)</u> day of each month commencing <u>December</u> <u>1,</u> <u>2022</u> . (See also Paragraph 4)

☐ If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph __________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6**&nbsp;&nbsp;&nbsp;&nbsp;Base Rent and Other Monies Paid Upon Execution:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Base Rent:** <u>$181,811.20</u> for the period <u>December</u> <u>1-31,</u> <u>2022</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Security Deposit:** <u>$181,811.20</u> ("**Security Deposit**"). (See also Paragraph 5)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Association Fees**: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> for the period <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**Other:** <u>$43,909.12</u> for <u>Estimated</u> <u>Operating</u> <u>Expenses</u> <u>for</u> <u>December</u> <u>1-31,</u> <u>2022</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**Total Due Upon Execution of this Lease:** <u>$407,531.52</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7&nbsp;&nbsp;&nbsp;&nbsp;**Agreed Use**: <u>General</u> <u>office</u> <u>and</u> <u>research,</u> <u>development</u> <u>and</u> <u>related</u> <u>legal</u> <u>uses</u> . (See also Paragraph 6)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8&nbsp;&nbsp;&nbsp;&nbsp;**Insuring Party.** Lessor is the "**Insuring Party**" unless otherwise stated herein. (See also Paragraph 8)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9&nbsp;&nbsp;&nbsp;&nbsp;**Real Estate Brokers.** (See also Paragraph 15 and 25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Representation**: Each Party acknowledges receiving a Disclosure Regarding Real Estate Agency Relationship, confirms and consents to the following agency relationships in this Lease with the following real estate brokers ("**Broker(s)**") and/or their agents ("Agent(s)"):

Lessor's Brokerage Firm <u>Cushman & Wakefield U.S., Inc.</u> License No. <u>01880493</u> Is the broker of (check one): 🗹the Lessor; or ☐ both the Lessee and Lessor (dual agent).

Lessor's Agent <u>Tenny Tsai</u> License No. <u>00966186</u> is (check one): 🗹the Lessor's Agent (salesperson or broker associate); or ☐ both the Lessee's Agent and the Lessor's Agent (dual agent).

Lessee's Brokerage Firm <u>S5 Advisory</u> License No. <u>01917419</u> Is the broker of (check one): 🗹the Lessee; or ☐ both the Lessee and Lessor (dual agent).

Lessee's Agent <u>Sushma Malhotra</u> License No. <u>01459988</u> is (check one): 🗹the Lessee's Agent (salesperson or broker associate); or ☐ both the Lessee's Agent and the Lessor's Agent (dual agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Payment to Brokers.** Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> or <u>7&nbsp;&nbsp;&nbsp;&nbsp;</u> % of the total Base Rent) for the brokerage services rendered by the Brokers. Upon the full execution and delivery of this Lease, 2.5% shall be paid to Lessee's Brokerage Firm and 1% shall be paid to Lessor's Brokerage Firm; on December 1, 2022, upon Lessee's continued occupancy of the Premises, another 2.5% shall be paid to Lessee's Brokerage Firm and 1% shall be paid to Lessor's Brokerage Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10&nbsp;&nbsp;&nbsp;&nbsp;**Guarantor.** The obligations of the Lessee under this Lease are to be guaranteed by <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ("**Guarantor**"). (See also Paragraph 37)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11&nbsp;&nbsp;&nbsp;&nbsp;**Attachments.** Attached hereto are the following, all of which constitute a part of this Lease:

🗹 an Addendum consisting of Paragraphs <u>51</u> through <u>58</u> ;

☐ a plot plan depicting the Premises;

☐ a current set of the Rules and Regulations;

☐ a Work Letter;

☐ other (specify): <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.

**2.&nbsp;&nbsp;&nbsp;&nbsp;Premises.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;**Letting**. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is

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|:---|:---|:---|
| /s/ Chen | /s/ A F | |
| Chen | | |
| INITIALS<br>© 2019 AIR CRE. All Rights Reserved. STN-27.30, Revised 10-22-2020 | INITIALS | Last Edited: 1/28/2022 8:50 AM<br>Page 1 of 19 |

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not subject to adjustment should the actual size be determined to be different. **NOTE: Lessee is advised to verify the actual size prior to executing this Lease.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;**Condition**. Lessee is currently in possession of the Premises pursuant to a sublease from Verizon Smart Communities, LLC which sublease expires on November 30, 2022. This Lease will permit Lessee to continue its occupancy of the Premises. Accordingly, Lessee agrees to accept the condition of the Premises in its current condition, subject to use thereof by Lessee and otherwise subject to normal wear and tear on December 1, 2022.Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs ("**Start Date**"), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("**HVAC**"), loading doors, sump pumps, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be in good operating condition on said date, that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the "**Building**") shall be free of material defects, and that the Premises do not contain hazardous levels of any mold or fungi defined as toxic under applicable state or federal law. If a non-compliance with said warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor shall, as Lessor's sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, malfunction or failure, rectify same at Lessor's expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and other elements of the Building. If Lessee does not give Lessor the required notice within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of Lessee at Lessee's sole cost and expense. Lessor also warrants, that unless otherwise speciﬁed in writing, Lessor is unaware of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan secured by the Premises; and (iii) any bankruptcy proceeding affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;**Compliance**. Lessor warrants that to the best of its knowledge the improvements on the Premises comply with the building codes, applicable laws, covenants or restrictions of record, regulations, and ordinances ("**Applicable Requirements**") that were in effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 50), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. **NOTE: Lessee is responsible for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed.** If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor's expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee's sole cost and expense.Applicable Requirements mean building codes, applicable laws, covenants or restrictions of record, regulations and ordinances. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building ("**Capital Expenditure**"), Lessor and Lessee shall allocate the cost of such work as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however, that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notiﬁes Lessee, in writing, within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the diﬀerence between the actual cost thereof and an amount equal to 6 months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If such Capital Expenditure is not the result of the speciﬁc and unique use of the Premises by Lessee (such as, governmentally mandated seismic modiﬁcations), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Rent is due, an amount equal to 1/144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notiﬁes Lessor, in writing, within 10 days after receipt of Lessor's termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor's share of such costs have been fully paid. If Lessee is unable to finance Lessor's share, or if the balance of the Rent due and payable for the remainder of this Lease is not suﬃcient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modiﬁcation to the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such Capital Expenditure at its own expense. Lessee shall not, however, have any right to terminate this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;**Acknowledgements**. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the electrical, HVAC and ﬁre sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Lessee's intended use, (c) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Lessor, (e) the square footage of the Premises was

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|:---|:---|:---|
| /s/ Chen | /s/ A F | |
| Chen | | |
| INITIALS<br>© 2019 AIR CRE. All Rights Reserved. STN-27.30, Revised 10-22-2020 | INITIALS | Last Edited: 1/28/2022 8:50 AM<br>Page 2 of 19 |

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not material to Lessee's decision to lease the Premises and pay the Rent stated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or warranties concerning Lessee's ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor's sole responsibility to investigate the ﬁnancial capability and/or suitability of all proposed tenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;**Lessee as Prior Owner/Occupant**. The warranties made by Lessor in Paragraph 2 shall be of no force or eﬀect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work.

**3.&nbsp;&nbsp;&nbsp;&nbsp;Term.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;**Term**. The Commencement Date, Expiration Date and Original Term of this Lease are as speciﬁed in Paragraph 1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;**Early Possession**. Any provision herein granting Lessee Early Possession of the Premises is subject to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall be in eﬀect during such period. Any such Early Possession shall not aﬀect the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;**Delay In Possession**. Lessor agrees to use commercially reasonable eﬀorts to deliver exclusive possession of the Premises to Lessee by the Commencement Date. If, despite said eﬀorts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such failure aﬀect the validity of this Lease or change the Expiration Date. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;**Lessee Compliance**. Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisﬁed.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Rent.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;**Rent Deﬁned**. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("**Rent**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;**Payment**. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without oﬀset or deduction (except as speciﬁcally permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier's check. Payments will be applied ﬁrst to accrued late charges and attorney's fees, second to accrued interest, then to Base Rent, Insurance and Real Property Taxes, and any remaining amount to any other outstanding charges or costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;**Association Fees**. In addition to the Base Rent, Lessee shall pay to Lessor each month an amount equal to any owner's association or condominium fees levied or assessed against the Premises. Said monies shall be paid at the same time and in the same manner as the Base Rent.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Security Deposit.** Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee's faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suﬀer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor suﬃcient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor's reasonable judgment, to account for any increased wear and tear that the Premises may suﬀer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the ﬁnancial condition of Lessee is, in Lessor's reasonable judgment, signiﬁcantly reduced, Lessee shall deposit such additional monies with Lessor as shall be suﬃcient to cause the Security Deposit to be at a commercially reasonable level based on such change in ﬁnancial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within 3090 days after the expiration or termination of this Lease and surrender of the Premises to Lessor in the condition required by this Lease, Lessor

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shall return that portion of the Security Deposit not used or applied by Lessor. Lessor shall upon written request provide Lessee with an accounting showing how that portion of the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. THE SECURITY DEPOSIT SHALL NOT BE USED BY LESSEE IN LIEU OF PAYMENT OF THE LAST MONTH'S RENT.

**6.&nbsp;&nbsp;&nbsp;&nbsp;Use.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;**Use**. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, ﬁsh, or reptiles. Lessor shall not unreasonably withhold or delay its consent to any written request for a modiﬁcation of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein, and/or is not signiﬁcantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notiﬁcation of same, which notice shall include an explanation of Lessor's objections to the change in the Agreed Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;**Hazardous Substances**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Reportable Uses Require Consent**. The term "**Hazardous Substance**" as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee's expense) with all Applicable Requirements. "**Reportable Use**" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be ﬁled with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary oﬃce supplies (copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modiﬁcations (such as concrete encasements) and/or increasing the Security Deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Duty to Inform Lessor**. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Lessee Remediation**. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third partyof its agents or invitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**Lessee Indemniﬁcation**. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys' and consultants' fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third partyof its agents or invitees (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee). Lessee's obligations shall include, but not be limited to, the eﬀects of any contamination or injury to person, property or the environment created or suﬀered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. **No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless speciﬁcally so agreed by Lessor in writing at the time of such agreement.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;**Lessor Indemniﬁcation**. Except as otherwise provided in paragraph 8.7, Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee's occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor's obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;**Investigations and Remediations**. Lessor shall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's occupancy, unless such remediation measure is required as a result of Lessee's use (including "Alterations", as deﬁned in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor's investigative and remedial responsibilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;**Lessor Termination Option**. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and eﬀect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and eﬀect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and eﬀect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date speciﬁed in Lessor's notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;**Lessee's Compliance with Applicable Requirements**. Except as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable ﬁre insurance underwriter or rating bureau, and the recommendations of Lessor's engineers and/or consultants which relate in any manner to the Premises, without regard to whether said Applicable Requirements are now in eﬀect or become eﬀective after the Start Date. Lessee shall, within 10 days after receipt of Lessor's written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee's compliance with any Applicable Requirements speciﬁed by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii) any mustiness or other odors that might indicate the presence of mold in the Premises. In addition, Lessee shall provide copies of all relevant material safety data sheets (**MSDS**) to Lessor within 10 days of the receipt of a written request therefor. In addition, Lessee shall provide Lessor with copies of its business license, certiﬁcate of occupancy and/or any similar document within 10 days of the receipt of a written request therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;**Inspection; Compliance**. Lessor and Lessor's "**Lender**" (as deﬁned in Paragraph 30) and consultants authorized by Lessor shall have the right to enter into Premises at any time in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting and/or testing the condition of the Premises and/or for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1(e)) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets (**MSDS**) to Lessor within 10 days of the receipt of a written request therefor. Lessee acknowledges that any failure on its part to allow such inspections or testing will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely diﬃcult to ascertain. Accordingly, should the Lessee fail to allow such inspections and/or testing in a timely fashion the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for the remainder to the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to allow such inspection and/or testing. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to such failure nor prevent the exercise of any of the other rights and remedies granted hereunder.

**7.&nbsp;&nbsp;&nbsp;&nbsp;Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;**Lessee's Obligations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**In General**. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole expense, keep the interior of the Premises, Utility Installations (intended for Lessee's exclusive use, no matter where located), and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, ﬁre protection system, ﬁxtures, walls (interior and exterior), foundations, ceilings, roofs, roof drainage systems, ﬂoors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping such portions of the Premises in good order, condition and repair, shall exercise and perform good maintenance practices, speciﬁcally including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. LesseeLessor shall, during the term of this Lease, keep the exterior appearance of the Building in a ﬁrst-class condition (including, e.g. graﬃti removal) consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Service Contracts**. Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) ﬁre extinguishing systems, including ﬁre alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, and (vi) clariﬁers. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Failure to Perform**. If Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee's behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**Replacement**. Subject to Lessee's indemniﬁcation of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from Lessee's failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease or any extension thereof, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (i.e. 1/144th of the cost per month). Lessee shall pay Interest on the unamortized balance but may prepay its obligation at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;**Lessor's Obligations**. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction), and 14 (Condemnation), and Paragraphs 52-56 (Addendum), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the interior of the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;**Utility Installations; Trade Fixtures; Alterations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Deﬁnitions**. The term "**Utility Installations**" refers to all ﬂoor and window coverings, air and/or vacuum lines, power panels, electrical distribution, security and ﬁre protection systems, communication cabling, lighting ﬁxtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term "**Trade Fixtures**" shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modiﬁcation of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "**Lessee Owned Alterations and/or Utility Installations**" are deﬁned as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Consent**. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof or any existing walls, will not aﬀect the electrical, plumbing, HVAC, and/or life safety systems, do not trigger the requirement for additional modiﬁcations and/or improvements to the Premises resulting from Applicable Requirements, such as compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and speciﬁcations prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and suﬃcient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and speciﬁcations. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Liens; Bonds**. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor's attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4&nbsp;&nbsp;&nbsp;&nbsp;**Ownership; Removal; Surrender; and Restoration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Ownership**. Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any speciﬁed part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Removal**. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Surrender; Restoration**. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, in the same condition as Lessee has previously agreed pursuant to the Agreement of Sublease between Verizon Smart Communities LLC, as Sublessor, and Lessee, as Sublessee, dated September <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> , 2020, as subsequently amended, reasonable wear and tear and casualty excepted with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing and the provisions of Paragraph 7.1(a), if the Lessee occupies the Premises for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the

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installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall also completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third partyof its agents or invitees (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises) to the level speciﬁed in Applicable Requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below.

**8.&nbsp;&nbsp;&nbsp;&nbsp;Insurance; Indemnity.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;**Payment For Insurance**. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within 10 days following receipt of an invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;**Liability Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Carried by Lessee**. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad as the Insurance Service Organization's "Additional Insured-Managers or Lessors of Premises" Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an "**insured contract**" for the performance of Lessee's indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Carried by Lessor**. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;**Property Insurance - Building, Improvements and Rental Value**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Building and Improvements**. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of ﬂood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inﬂation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Rental Value**. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reﬂect the projected Rent otherwise payable by Lessee, for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Adjacent Premises**. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee's acts, omissions, use or occupancy of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;**Lessee's Property; Business Interruption Insurance; Worker's Compensation Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Property Damage**. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Business Interruption**. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;**Worker's Compensation Insurance**. Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may be required by Applicable Requirements. Such policy shall include a 'Waiver of Subrogation' endorsement. Lessee shall provide Lessor with a copy of such endorsement along with the certiﬁcate of insurance or copy of the policy required by paragraph 8.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;**No Representation of Adequate Coverage**. Lessor makes no representation that the limits or forms of coverage of insurance speciﬁed herein are adequate to cover Lessee's property, business operations or obligations under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;**Insurance Policies**. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII, as set forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start

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Date, deliver to Lessor certiﬁed copies of policies of such insurance or certiﬁcates with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modiﬁcation except after 30 days prior written notice to Lessor. Lessee shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or "insurance binders" evidencing renewal thereof, or Lessor may increase his liability insurance coverage and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6&nbsp;&nbsp;&nbsp;&nbsp;**Waiver of Subrogation**. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7&nbsp;&nbsp;&nbsp;&nbsp;**Indemnity**. Except for Lessor's gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with, a Breach of the Lease by Lessee and/or the use and/or occupancy of the Premises and/or Project by Lessee and/or by Lessee's employees, contractors or invitees. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemniﬁed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8&nbsp;&nbsp;&nbsp;&nbsp;**Exemption of Lessor and its Agents from Liability**. Notwithstanding the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from ﬁre, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, ﬁre sprinklers, wires, appliances, plumbing, HVAC or lighting ﬁxtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places, (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agents to enforce the provisions of any other lease in the Project, or (iii) injury to Lessee's business or for any loss of income or proﬁt therefrom. Instead, it is intended that Lessee's sole recourse in the event of such damages or injury be to ﬁle a claim on the insurance policy(ies) that Lessee is required to maintain pursuant to the provisions of paragraph 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9&nbsp;&nbsp;&nbsp;&nbsp;**Failure to Provide Insurance**. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely diﬃcult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certiﬁcates evidencing the existence of the required insurance, the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance speciﬁed in this Lease.

**9.&nbsp;&nbsp;&nbsp;&nbsp;Damage or Destruction.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;**Deﬁnitions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"**Premises Partial Damage**" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;"**Premises Total Destruction**" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"**Insured Loss**" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;"**Replacement Cost**" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;"**Hazardous Substance Condition**" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance, in, on, or under the Premises which requires restoration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;**Partial Damage - Insured Loss**. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and eﬀect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not suﬃcient to eﬀect such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee's responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially

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reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and eﬀect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and eﬀect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to ﬂood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;**Partial Damage - Uninsured Loss**. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and eﬀect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be eﬀective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and eﬀect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date speciﬁed in the termination notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;**Total Destruction**. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;**Damage Near End of Term**. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease eﬀective 60 days following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee's receipt of Lessor's written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and eﬀect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date speciﬁed in the termination notice and Lessee's option shall be extinguished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6&nbsp;&nbsp;&nbsp;&nbsp;**Abatement of Rent; Lessee's Remedies**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Abatement**. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Remedies**. If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date speciﬁed in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and eﬀect. "Commence" shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever ﬁrst occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;**Termination; Advance Payments**. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor.

**10.&nbsp;&nbsp;&nbsp;&nbsp;Real Property Taxes.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;**Deﬁnition**. As used herein, the term "**Real Property Taxes**" shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises or the Project, Lessor's right to other income therefrom, and/or Lessor's business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Building address. Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;**Payment of Taxes**. In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real Property Tax installment due at least 20 days prior to the applicable delinquency date. If any such installment shall cover any period of time prior to or after the expiration or termination of this Lease, Lessee's share of such installment shall be prorated. In the event Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that such taxes be paid in advance to Lessor by Lessee monthly in advance with the payment of the Base Rent. Such monthly payments shall be an amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month in which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount of such equal monthly advance payments shall be adjusted as required to

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provide the funds needed to pay the applicable taxes. If the amount collected by Lessor is insuﬃcient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sum as is necessary. Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any such advance payments may be treated by Lessor as an additional Security Deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;**Joint Assessment**. If the Premises are not separately assessed, Lessee's liability shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4&nbsp;&nbsp;&nbsp;&nbsp;**Personal Property Taxes**. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor's real property, Lessee shall pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee's property.

**11.&nbsp;&nbsp;&nbsp;&nbsp;Utilities and Services.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered or billed to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;Within ﬁfteen days of Lessor's written request, Lessee agrees to deliver to Lessor such information, documents and/or authorization as Lessor needs in order for Lessor to comply with new or existing Applicable Requirements relating to commercial building energy usage, ratings, and/or the reporting thereof.

**12.&nbsp;&nbsp;&nbsp;&nbsp;Assignment and Subletting.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;**Lessor's Consent Required**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "**assign or assignment**") or sublet all or any part of Lessee's interest in this Lease or in the Premises without Lessor's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 2550% or more of the voting control of Lessee shall constitute a change in control for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition, ﬁnancing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. "**Net Worth of Lessee**" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;An assignment or subletting without consent shall, at Lessor's option, be a Default curable after notice per Paragraph 13.1(d), or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written notice, increase the monthly Base Rent to 110% of the Base Rent then in eﬀect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in eﬀect, and (ii) all ﬁxed and non-ﬁxed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Lessee's remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time consent is requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, allowing a de minimis portion of the Premises, ie. 20 square feet or less, to be used by a third party vendor in connection with the installation of a vending machine or payphone shall not constitute a subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp;**Terms and Conditions Applicable to Assignment and Subletting**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Regardless of Lessor's consent, no assignment or subletting shall : (i) be eﬀective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or Breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Lessor's consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee, without ﬁrst exhausting Lessor's remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor's determination as to the ﬁnancial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modiﬁcation of the Premises, if any, together with a fee of $500 as consideration for Lessor's considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has speciﬁcally consented to in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Lessor's consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is speciﬁcally consented to by Lessor in writing. (See Paragraph 39.2)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, Lessee may, without Lessor's prior written consent, sublet or assign the Lease to: (i) a subsidiary, affiliate, division or corporation controlled or under the common control with Lessee; (ii) a purchaser of substantially of all Lessee's capital stock or assets located in the Premises, provided that no transfer shall be effective until Lessee has notified Lessor of the name and contact information of the Sublessee or Assignee. For the purpose of the Lease, sale or transfer of Lessee's capital stock, including without limitation, a transfer in connection with the merger, consolidation or non-bankruptcy reorganization of Lessee and any sale through any public exchange, shall not be deemed an assignment, subletting, or any other transfer of the Lease or the Premises, provided that such capital stock remains outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;&nbsp;&nbsp;**Additional Terms and Conditions Applicable to Subletting**. The following terms and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee's obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee's then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee's obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, speciﬁed in such notice. The sublessee shall have a right of reimbursement and oﬀset from and against Lessee for any such Defaults cured by the sublessee.

**13.&nbsp;&nbsp;&nbsp;&nbsp;Default; Breach; Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1&nbsp;&nbsp;&nbsp;&nbsp;**Default; Breach**. A "**Default**" is deﬁned as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A "**Breach**" is deﬁned as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The abandonment of the Premises; the vacating of the Premises prior to the expiration or termination of this Lease without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism; or failure to deliver to Lessor exclusive possession of the entire Premises in accordance herewith prior to the expiration or termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulﬁll any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity a second time then, the Lessor may elect to treat such conduct as a non-curable Breach rather than a Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certiﬁcate or ﬁnancial statements, (v) a requested subordination, <u>(</u>vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the beneﬁt of creditors; (ii) becoming a "**debtor**" as deﬁned in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition ﬁled against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's

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assets located at the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or eﬀect, and not aﬀect the validity of the remaining provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The discovery that any ﬁnancial statement of Lessee <u>or</u> <u>of</u> <u>any</u> <u>Guarantor</u> given to Lessor was materially false.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>I</u>f the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy ﬁling, (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach of its guaranty obligation on an anticipatory basis, and Lessee's failure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined ﬁnancial resources of Lessee and the Guarantors that existed at the time of execution of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2&nbsp;&nbsp;&nbsp;&nbsp;**Remedies**. If Lessee fails to perform any of its aﬃrmative duties or obligations beyond any applicable notice and cure period, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Eﬀorts by Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover any damages to which Lessor is otherwise entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, eﬀorts to relet, and/or the appointment of a receiver to protect the Lessor's interests, shall not constitute a termination of the Lessee's right to possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3&nbsp;&nbsp;&nbsp;&nbsp;**Inducement Recapture.** Any agreement for free or abated rent or other charges, the cost of tenant improvements for Lessee paid for or performed by Lessor, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee's entering into this Lease, all of which concessions are hereinafter referred to as "**Inducement Provisions**," shall be deemed conditioned upon Lessee's full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or eﬀect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless speciﬁcally so stated in writing by Lessor at the time of such acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4&nbsp;&nbsp;&nbsp;&nbsp;**Late Charges**. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely diﬃcult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 105% of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5&nbsp;&nbsp;&nbsp;&nbsp;**Interest**. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall bear interest from the 31st day after it was due. The interest ("**Interest**") charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6&nbsp;&nbsp;&nbsp;&nbsp;**Breach by Lessor**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;**Notice of Breach**. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished to Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation is such that more than 30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;**Performance by Lessee on Behalf of Lessor**. In the event that neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee's expense and oﬀset from Rent the actual and reasonable cost to perform such cure, provided however, that such oﬀset shall not exceed an amount equal to the greater of one month's Base Rent or the Security Deposit, reserving Lessee's right to seek reimbursement from Lessor for any such expense in excess of such oﬀset. Lessee shall document the cost of said cure and supply said documentation to Lessor.

**14.&nbsp;&nbsp;&nbsp;&nbsp;Condemnation.** If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively "**Condemnation**"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever ﬁrst occurs. If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee's option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and eﬀect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation paid by the condemnor for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation.

**15.&nbsp;&nbsp;&nbsp;&nbsp;Brokerage Fees.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1&nbsp;&nbsp;&nbsp;&nbsp; **Additional Commission**. In addition to the payments owed pursuant to Paragraph 1.9 above, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee or anyone aﬃliated with Lessee acquires any rights to the Premises or other premises owned by Lessor and located within the same Project, if any, within which the Premises is located, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by agreement or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the fee schedule of the Brokers in eﬀect at the time the Lease was executed. The provisions of this paragraph are intended to supersede the provisions of any earlier agreement to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2&nbsp;&nbsp;&nbsp;&nbsp;**Assumption of Obligations**. Any buyer or transferee of Lessor's interest in this Lease shall be deemed to have assumed Lessor's obligation hereunder. Brokers shall be third party beneﬁciaries of the provisions of Paragraphs 1.9, 15, 22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to pay such amounts within 10 days after said notice, Lessee shall pay said monies to its Broker and oﬀset such amounts against Rent. In addition, Lessee's Broker shall be deemed to be a third party beneﬁciary of any commission agreement entered into by and/or between Lessor and Lessor's Broker for the limited purpose of collecting any brokerage fee owed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3&nbsp;&nbsp;&nbsp;&nbsp;**Representations and Indemnities of Broker Relationships**. Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, ﬁrm, broker, agent or ﬁnder (other than the Brokers and Agents, if any) in connection with this Lease, and that no one other than said named Brokers and Agents is entitled to any commission or ﬁnder's fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, ﬁnder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' fees reasonably incurred with respect thereto.

**16.&nbsp;&nbsp;&nbsp;&nbsp;Estoppel Certiﬁcates.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Party (as "**Responding Party**") shall within 10 days after written notice from the other Party (the "**Requesting Party**") execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current "**Estoppel Certiﬁcate**" form published by AIR CRE, plus such additional information, conﬁrmation and/or statements as may be reasonably requested by the Requesting Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Responding Party shall fail to execute or deliver the Estoppel Certiﬁcate within such 10 day period, the Requesting Party may execute an Estoppel Certiﬁcate stating that: (i) the Lease is in full force and eﬀect without modiﬁcation except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party's performance, and (iii) if Lessor is the Requesting Party, not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certiﬁcate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certiﬁcate. In addition, Lessee acknowledges that any failure on its part to provide such an Estoppel Certiﬁcate will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely diﬃcult to ascertain. Accordingly, should the Lessee fail to execute and/or deliver a requested Estoppel Certiﬁcate in a timely fashion the monthly Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for remainder of the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to provide the Estoppel Certiﬁcate. Such increase in Base Rent shall in no event constitute a waiver of

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Lessee's Default or Breach with respect to the failure to provide the Estoppel Certiﬁcate nor prevent the exercise of any of the other rights and remedies granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If Lessor desires to ﬁnance, reﬁnance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within 10 days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such ﬁnancial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee's ﬁnancial statements for the past 3 years. All such ﬁnancial statements shall be received by Lessor and such lender or purchaser in conﬁdence and shall be used only for the purposes herein set forth.

**17.&nbsp;&nbsp;&nbsp;&nbsp;Deﬁnition of Lessor.** The term "**Lessor**" as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove deﬁned.

**18.&nbsp;&nbsp;&nbsp;&nbsp;Severability.** The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way aﬀect the validity of any other provision hereof.

**19.&nbsp;&nbsp;&nbsp;&nbsp;Days.** Unless otherwise speciﬁcally indicated to the contrary, the word "**days**" as used in this Lease shall mean and refer to calendar days.

**20.&nbsp;&nbsp;&nbsp;&nbsp;Limitation on Liability.** The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, or its partners, members, directors, oﬃcers or shareholders, and the obligations of Lessee under this Lease shall not constitute personal obligations of Lessee, or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members, directors, oﬃcers or shareholders, or any of their personal assets for such satisfaction.

**21.&nbsp;&nbsp;&nbsp;&nbsp;Time of Essence.** Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.

**22.&nbsp;&nbsp;&nbsp;&nbsp;No Prior or Other Agreements; Broker Disclaimer**. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be eﬀective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and ﬁnancial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party.

**23.&nbsp;&nbsp;&nbsp;&nbsp;Notices.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1&nbsp;&nbsp;&nbsp;&nbsp;**Notice Requirements**. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certiﬁed or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, or by email, and shall be deemed suﬃciently given if served in a manner speciﬁed in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the other specify a diﬀerent address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2&nbsp;&nbsp;&nbsp;&nbsp;**Date of Notice**. Any notice sent by registered or certiﬁed mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices delivered by hand, or transmitted by facsimile transmission or by email shall be deemed delivered upon actual receipt. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3&nbsp;&nbsp;&nbsp;&nbsp;**Options.** Notwithstanding the foregoing, in order to exercise any Options (see paragraph 39), the Notice must be sent by Certiﬁed Mail (return receipt requested), Express Mail (signature required), courier (signature required) or some other methodology that provides a receipt establishing the date the notice was received by the Lessor.

**24.&nbsp;&nbsp;&nbsp;&nbsp;Waivers.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or eﬀect whatsoever unless speciﬁcally agreed to in writing by Lessor at or before the time of deposit of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

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**25.&nbsp;&nbsp;&nbsp;&nbsp;Disclosures Regarding The Nature of a Real Estate Agency Relationship.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;*<u>Lessor's</u> <u>Agent</u>*. A Lessor's agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor's agent or subagent has the following aﬃrmative obligations: *<u>To the</u> <u>Lessor</u>*: A ﬁduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessor. *<u>To</u> <u>the Lessee</u> <u>and</u> <u>the</u> <u>Lessor</u>*: (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially aﬀecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any conﬁdential information obtained from the other Party which does not involve the aﬃrmative duties set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;*<u>Lessee's</u> <u>Agent</u>*. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only for a Lessee has the following aﬃrmative obligations. *<u>To the</u> <u>Lessee</u>*: A ﬁduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. *<u>To the</u> <u>Lessee and</u> <u>the Lessor</u>*: (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially aﬀecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any conﬁdential information obtained from the other Party which does not involve the aﬃrmative duties set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;*<u>Agent Representing</u> <u>Both</u> <u>Lessor and</u> <u>Lessee</u>*. A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following aﬃrmative obligations to both the Lessor and the Lessee: (a) A ﬁduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. (b) Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not, without the express permission of the respective Party, disclose to the other Party conﬁdential information, including, but not limited to, facts relating to either Lessee's or Lessor's ﬁnancial position, motivations, bargaining position, or other personal information that may impact rent, including Lessor's willingness to accept a rent less than the listing rent or Lessee's willingness to pay rent greater than the rent oﬀered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualiﬁed to advise about real estate. If legal or tax advice is desired, consult a competent professional. Both Lessor and Lessee should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs and attorneys' fees), of any Broker with respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Lessor and Lessee agree to identify to Brokers as "Conﬁdential" any communication or information given Brokers that is considered by such Party to be conﬁdential.

**26.&nbsp;&nbsp;&nbsp;&nbsp;No Right To Holdover**. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. At or prior to the expiration or termination of this Lease Lessee shall deliver exclusive possession of the Premises to Lessor. For purposes of this provision and Paragraph 13.1(a), exclusive possession shall mean that Lessee shall have vacated the Premises, removed all of its personal property therefrom and that the Premises have been returned in the condition speciﬁed in this Lease. In the event that Lessee does not deliver exclusive possession to Lessor as speciﬁed above, then Lessor's damages during any holdover period shall be computed at the amount of the Rent (as deﬁned in Paragraph 4.1) due during the last full month before the expiration or termination of this Lease (disregarding any temporary abatement of Rent that may have been in eﬀect), but with Base Rent being 150% of the Base Rent payable during such last full month. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee.

**27.&nbsp;&nbsp;&nbsp;&nbsp;Cumulative Remedies.** No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

**28.&nbsp;&nbsp;&nbsp;&nbsp;Covenants and Conditions; Construction of Agreement.** All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.

**29.&nbsp;&nbsp;&nbsp;&nbsp;Binding Eﬀect; Choice of Law.** This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. Signatures to this Lease accomplished by means of electronic signature or similar technology shall be legal and binding.

**30.&nbsp;&nbsp;&nbsp;&nbsp;Subordination; Attornment; Non-Disturbance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1&nbsp;&nbsp;&nbsp;&nbsp;**Subordination**. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively, "**Security Device**"), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modiﬁcations, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as "**Lender**") shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security

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Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2&nbsp;&nbsp;&nbsp;&nbsp;**Attornment**. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will automatically become a new lease between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor's obligations, except that such new owner shall not: (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any oﬀsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month's rent, or (d) be liable for the return of any security deposit paid to any prior lessor which was not paid or credited to such new owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3&nbsp;&nbsp;&nbsp;&nbsp;**Non-Disturbance**. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a "**Non-Disturbance Agreement**") from the Lender which Non-Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, if requested by Lessee, use its commercially reasonable eﬀorts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee's option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.4&nbsp;&nbsp;&nbsp;&nbsp;**Self-Executing**. The agreements contained in this Paragraph 30 shall be eﬀective without the execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, ﬁnancing or reﬁnancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.

**31.&nbsp;&nbsp;&nbsp;&nbsp;Attorneys' Fees.** If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter deﬁned) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, "**Prevailing Party**" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' fees reasonably incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation).

**32.&nbsp;&nbsp;&nbsp;&nbsp;Lessor's Access; Showing Premises; Repairs.** Lessor and Lessor's agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material adverse eﬀect on Lessee's use of the Premises. All such activities shall be without abatement of rent or liability to Lessee.

**33.&nbsp;&nbsp;&nbsp;&nbsp;Auctions.** Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor's prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction.

**34.&nbsp;&nbsp;&nbsp;&nbsp;Signs.** Lessor may place on the Premises ordinary "For Sale" signs at any time and ordinary "For Lease" signs during the last 6 months of the term hereof. Except for ordinary "for sublease" signs, Lessee shall not place any sign upon the Premises without Lessor's prior written consent. All signs must comply with all Applicable Requirements.

**35.&nbsp;&nbsp;&nbsp;&nbsp;Termination; Merger.** Unless speciﬁcally stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessor's failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor's election to have such event constitute the termination of such interest.

**36.&nbsp;&nbsp;&nbsp;&nbsp;Consents.** All requests for consent shall be in writing. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise speciﬁcally stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor's consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days following such request.

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**37.&nbsp;&nbsp;&nbsp;&nbsp; Guarantor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.1&nbsp;&nbsp;&nbsp;&nbsp; **Execution**. The Guarantors, if any, shall each execute a guaranty in the form most recently published by AIR CRE, and each such Guarantor shall have the same obligations as Lessee under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.2&nbsp;&nbsp;&nbsp;&nbsp; **Default**. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor's behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certiﬁed copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current ﬁnancial statements, (c) an Estoppel Certiﬁcate, or (d) written conﬁrmation that the guaranty is still in eﬀect.

**38.&nbsp;&nbsp;&nbsp;&nbsp;Quiet Possession.** Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof.

**39.&nbsp;&nbsp;&nbsp;&nbsp;Options.** If Lessee is granted any Option, as defined below, then the following provisions shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.1&nbsp;&nbsp;&nbsp;&nbsp;**Deﬁnition**. "**Option**" shall mean: (a) the right to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first oﬀer to lease either the Premises or other property of Lessor; (c) the right to purchase, the right of ﬁrst oﬀer to purchase or the right of ﬁrst refusal to purchase the Premises or other property of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.2&nbsp;&nbsp;&nbsp;&nbsp;**Options Personal To Original Lessee**. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.3&nbsp;&nbsp;&nbsp;&nbsp;**Multiple Options**. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.4&nbsp;&nbsp;&nbsp;&nbsp;**Effect of Default on Options**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise an Option because of the provisions of Paragraph 39.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;An Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee commits a Breach of this Lease.

**40.&nbsp;&nbsp;&nbsp;&nbsp;Multiple Buildings.** If the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees that it will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management, safety, and care of said properties, including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessee also agrees to pay its fair share of common expenses incurred in connection with such rules and regulations.

**41.&nbsp;&nbsp;&nbsp;&nbsp;Security Measures.** Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties.

**42.&nbsp;&nbsp;&nbsp;&nbsp;Reservations**. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions.

**43.&nbsp;&nbsp;&nbsp;&nbsp;Performance Under Protest.** If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest" and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid "under protest" within 6 months shall be deemed to have waived its right to protest such payment.

**44.&nbsp;&nbsp;&nbsp;&nbsp;Authority; Multiple Parties; Execution.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

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| /s/ Chen | /s/ A F | |
| Chen | | |
| INITIALS<br>© 2019 AIR CRE. All Rights Reserved. STN-27.30, Revised 10-22-2020 | INITIALS | Last Edited: 1/28/2022 8:50 AM<br>Page 17 of 19 |

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**45.&nbsp;&nbsp;&nbsp;&nbsp;Conﬂict.** Any conﬂict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions.

**46.&nbsp;&nbsp;&nbsp;&nbsp;Oﬀer**. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an oﬀer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.

**47.&nbsp;&nbsp;&nbsp;&nbsp;Amendments.** This Lease may be modiﬁed only in writing, signed by the Parties in interest at the time of the modiﬁcation. As long as they do not materially change Lessee's obligations hereunder, Lessee agrees to make such reasonable non-monetary modiﬁcations to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal ﬁnancing or reﬁnancing of the Premises.

**48.&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS LEASE.**

**49.&nbsp;&nbsp;&nbsp;&nbsp;Arbitration of Disputes.** An Addendum requiring the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease ☐ is ☑ is not attached to this Lease.

**50.&nbsp;&nbsp;&nbsp;&nbsp;Accessibility; Americans with Disabilities Act.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Premises:

☑ have not undergone an inspection by a Certiﬁed Access Specialist (CASp). Note: A Certiﬁed Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.

☐ have undergone an inspection by a Certiﬁed Access Specialist (CASp) and it was determined that the Premises met all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it received a copy of the inspection report at least 48 hours prior to executing this Lease and agrees to keep such report conﬁdential.

☐ have undergone an inspection by a Certiﬁed Access Specialist (CASp) and it was determined that the Premises did not meet all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it received a copy of the inspection report at least 48 hours prior to executing this Lease and agrees to keep such report conﬁdential except as necessary to complete repairs and corrections of violations of construction related accessibility standards.

In the event that the Premises have been issued an inspection report by a CASp the Lessor shall provide a copy of the disability access inspection certiﬁcate to Lessee within 7 days of the execution of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Since compliance with the Americans with Disabilities Act (ADA) and other state and local accessibility statutes are dependent upon Lessee's speciﬁc use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee's use of the Premises requires modiﬁcations or additions to the Premises in order to be in compliance with ADA or other accessibility statutes, Lessee agrees to make any such necessary modiﬁcations and/or additions at Lessee's expense.

**LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.**

---

| | | |
|:---|:---|:---|
| /s/ Chen | /s/ A F | |
| Chen | | |
| INITIALS<br>© 2019 AIR CRE. All Rights Reserved. STN-27.30, Revised 10-22-2020 | INITIALS | Last Edited: 1/28/2022 8:50 AM<br>Page 18 of 19 |

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**ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY AIR CRE OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:**

**1.&nbsp;&nbsp;&nbsp;&nbsp;SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.**

**2.&nbsp;&nbsp;&nbsp;&nbsp;RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE.**

**WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED.**

The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures.

Executed at: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

On: <u>Feb</u> <u>7,</u> <u>2022</u>

**By LESSOR**:

<u>Xinbei</u> <u>Tech,</u> <u>Inc.,</u> <u>a</u> <u>California</u> <u>corporation</u>

By:&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/ Te-Ning Chen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name Printed: <u>Te-Ning</u> <u>Chen</u>

Title: <u>President</u> 

Phone: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Fax: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Email: <u>[\*\*\*]</u>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name Printed: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Title: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Phone: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Fax: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Federal ID No.: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

**BROKER**

<u>Cushman</u> <u>&</u> <u>Wakefield</u> <u>U.S.,</u> <u>Inc.</u>

Attn: <u>Tenny</u> <u>Tsai</u>

Title: <u>Senior</u> <u>Managing</u> <u>Director</u>

Address: <u>[\*\*\*]</u> 

Phone: <u>[\*\*\*]</u>

Fax: <u>[\*\*\*]</u>

Email: <u>[\*\*\*]</u>

Federal ID No.: <u>[\*\*\*]</u>

Broker DRE License #: <u>01880493</u>

Agent DRE License #: <u>00966186</u>

Executed at: <u>50</u> <u>Adair</u> <u>Lane</u> Portola Valley CA 94028

On: <u>Jan</u> <u>31,</u> <u>2022&nbsp;&nbsp;&nbsp;&nbsp;</u> 

**By LESSEE**:

<u>Cerebras</u> <u>Systems,</u> <u>Inc.,</u> <u>a</u> <u>Delaware</u> <u>corporation</u>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Andrew Feldman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Name Printed: <u>Andrew</u> <u>Feldman</u>

Title: <u>CEO</u><u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Phone: <u>[\*\*\*]</u>

Fax: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Email: <u>[\*\*\*]</u>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name Printed: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Title: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Phone: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Fax: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Email: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Address: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Federal ID No.: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

**BROKER**

<u>S5</u> <u>Advisory</u>

Attn: <u>Sushma</u> <u>Malhotra</u>

Title: <u>Executive</u> <u>Managing</u> <u>Director</u>

Address: <u>[\*\*\*]</u>

Phone: <u>[\*\*\*]</u>

Fax: <u>[\*\*\*]</u>

Email: <u>[\*\*\*]</u>

Federal ID No.: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Broker DRE License #: <u>01917419</u>

Agent DRE License #: <u>01459988</u>

**AIR CRE \* https://www.aircre.com \* 213-687-8777 \* contracts@aircre.com**

**NOTICE: No part of these works may be reproduced in any form without permission in writing.**

---

| | | |
|:---|:---|:---|
| /s/ Chen | /s/ A F | |
| Chen | | |
| INITIALS<br>© 2019 AIR CRE. All Rights Reserved. STN-27.30, Revised 10-22-2020 | INITIALS | Last Edited: 1/28/2022 8:50 AM<br>Page 19 of 19 |

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**Addendum to AIRCRE Lease entitled Standard Industrial/Commercial Single-Tenant Lease – Net by and between Xinbei Tech Inc., a California corporation ("Lessor"), and Cerebras Systems, Inc., a Delaware corporation ("Lessee"), dated January 27, 2022.**

In the event of any conflict between the provisions of this Addendum and the printed provisions of the Lease, this Addendum shall control.

**51.&nbsp;&nbsp;&nbsp;&nbsp;**The Premises, the building on which the Premises are located, and the land on which the building are located are owned by Lessor. Lessor currently leases the Premises to Verizon Smart Communities LLC, a Delaware limited liability company ("Verizon"), and Lessee currently subleases the Premises from Verizon. The lease to Verizon and the sublease from Verizon to Lessee is scheduled to expire on November 30, 2022. It is the intent of the parties to continue Lessee's occupancy of the Premises in a manner and on the terms similar to that which existed when Verizon was the Sublessor and Lessee was the Sublessee, unless the provisions of this Lease expressly provide otherwise.

**52.&nbsp;&nbsp;&nbsp;&nbsp;**Notwithstanding the provisions of paragraph 7.1 of the Lease, and subject to any damage or destruction caused by Lessee, its employees, contractors and invitees, further subject to Lessee's payment of the Operating Expenses, (1) Lessor, as part of the Operating Expenses, shall be responsible for the operation, maintenance, repair and replacement of the roof membrane, roof drainage systems, fire protection systems, landscaping, driveways, parking lots, fences, retaining walls, and walkways, and (2) Lessor, at Lessor's cost, shall be responsible for the operation, maintenance, repair and replacement of the building structure, load bearing walls and foundations. Notwithstanding anything in the Lease to the contrary, any capital repairs or capital replacements required under Paragraph 7.1 of the Lease shall be made by Lessor and amortized on a straight line basis over twelve years as an Operating Expense.

**53.&nbsp;&nbsp;&nbsp;&nbsp;**Pursuant to paragraph 7.1(b) of the Lease, Lessor shall procure and maintain the service contracts relating to the obligations of Lessor under paragraph 52, above.

**54.&nbsp;&nbsp;&nbsp;&nbsp;**Operating Expense Payments. During each month of the term, on the same date that the Base Rent is due, Lessee shall pay to Lessor and amount equal to 1/12<sup>th</sup> of the annual cost, as reasonably estimated by Lessor from time to time, of the Operating Expenses for the Premises, including the land, the building and other improvements (e.g., parking areas) thereon. Payments thereof for any partial calendar months shall be prorated in the same manner that Base Rent is prorated.

**55.&nbsp;&nbsp;&nbsp;&nbsp;**Operating Expenses means all costs and expenses incurred by Lessor with respect to the ownership, maintenance, and operation of the Premises during the lease term, including (1) (a) all taxes, assessments and governmental charges (collectively, "Taxes") that accrue against the Premises, or any portion thereof, including any alterations or improvements thereto, (b) all Taxes that accrue against Lessee's persona property in or on the Premises, (c) any costs to contest the amount, validity or application of any Taxes against Lessor, or liens resulting therefrom, (d) all capital levies or other Taxes assessed or imposed on Lessor, on the Rent payable to Lessor, and (e) any franchise, excise, use, margin, transaction, sales or privilege tax, assessment, charge or levy measured by or based, in whole or in part, on the Rent, or any portion thereof, provided, that Taxes shall not include any net income taxes imposed upon Lessor unless such net income taxes are in substitution for any Taxes payable under this Lease; (2) all insurance obtained by Lessor under this Lease, including property, liability and all other coverages deemed reasonable by Lessor; (3) utilities not paid by Lessee; (4) management fees, not to exceed 3% of the Base Rent to be paid by Lessee, and (5) maintenance, repair and replacement of any portion of the Premises, including any

------

improvements and alterations thereon, paving, parking, driveways, nonstructural roof components, roof membrane, mowing, landscaping, exterior painting, window washing, utility lines, fire protection systems, HVAC systems and other mechanical and building systems not paid by Lessee, security services, if any, trash collection, sweeping and removal, and additions or alterations made by Lessor to comply with Applicable Requirements or that are appropriate to the continued operation of the Premises for its intended use, provided that the cost of any capital repairs, replacements, additions or alterations shall be amortized on a straight line basis over twelve years. Notwithstanding the foregoing, Operating Expenses shall not include (a) those items set forth in paragraph 52(2), above; (b) depreciation or deductibles; (c) debt service; (d) costs of repairs to the extent Lessor is reimbursed by insurance or condemnation proceeds or warranties; (e) costs of leasing space in the Building, including brokerage commissions, lease concessions, rental abatements and construction allowances; (f) costs of selling, financing or refinancing the Building; (g) fines, penalties or interest resulting from late payment of Taxes or Operating Expenses, unless caused by Lessee's failure to make the payments required under this Lease; (h) organizational expenses of creating or operating the entity that constitutes Lessor; (i) reserves; (j) capital improvements other than those required by law or made to keep the Premises in good condition as required by the Lease; or (k) damages paid to Lessee hereunder.

If Lessee's total payments of Operating Expenses for any calendar year are less than the actual amount of Operating Expenses for such year, the Lessee shall pay the difference to Lessor within 30 days after demand therefor from Lessor; but if Lessee's total payments are more, Lessor shall refund the excess to Lessee within 30 days after such amount is determined. The estimated Operating Expenses set forth in this Lease are only estimates, and Lessor makes no guaranty or warranty that such estimates are exact. Lessee or its authorized representatives shall have the right at any time within sixty (60) days after Lessor provides an annual statement of actual Operating Expenses to Lessee (or within thirty (30) days thereafter if Lessor fails to timely provide such statement) to audit the books, records and papers of Lessor relating to Operating Expenses, and shall have the right to make copies thereof, and if Operating Expenses are found by Lessee to be overstated for any year, and Lessor agrees, Lessor shall, within thirty (30) days after demand, pay the overage to Lessee, and if overstated by more than 5%, Lessee's reasonable costs of such audit.

**56.&nbsp;&nbsp;&nbsp;&nbsp;**Improvements. Upon the execution of this Lease, Lessor shall install, subject to applicable laws, 6 charging stations to charge electric vehicles in a location to be reasonably determined by Lessor in the parking area for the Premises, for Lessee's exclusive use. The installation of such stations shall be at Lessor's sole cost and expense, but may also reduce the number of parking spaces available for general use. The foregoing improvements shall belong to Lessor and the operation, repair and/or replacement, and maintenance of such improvements shall be included in Operating Expenses.

**57.&nbsp;&nbsp;&nbsp;&nbsp;**Condition of Premises. Lessor and Lessee shall walk through the Premises to determine the condition of the Premises (1) thirty (30) days prior to the expiration of this Lease, and (2) one (1) day prior to such expiration date to determine the condition of the Premises. Lessor shall at those times indicate to Lessee whether the Premises are in the condition required by this Lease.

**58.&nbsp;&nbsp;&nbsp;&nbsp;**Paragraph 50(b) of the Lease is subject to the same terms and conditions as Paragraph 2.3(c) of the Lease.

## Exhibit 10.1

**Exhibit 10.1(b)**

![exhibit10.jpg](exhibit10.jpg)

<u>First</u> **AMENDMENT TO LEASE**

THIS AMENDMENT TO LEASE is made and entered into as of <u>June 2, 2023</u> , by and between <u>Xinbei Tech, Inc., a California corporation</u> ("Lessor") and <u>Cerebras Systems, Inc., a Delaware corporation</u> ("Lessee").

WHEREAS, on or about <u>January 27, 2022</u> a Lease was entered into by and between Lessor and Lessee relating to certain real property commonly known as (street address, city, state, zip): <u>1237 E, Arques Avenue, Sunnyvale, California 94085</u> (the "Premises"), and

WHEREAS, Lessor and Lessee ☐ have have not previously amended said Lease, and

WHEREAS, the Lessor and Lessee now desire to amend said Lease,

NOW, THEREFORE, for payment of TEN DOLLARS and other good and valuable consideration to Lessor, the receipt and sufficiency of which is hereby acknowledged, the parties mutually agree to make the following additions and modifications to the Lease:

TERM: The Expiration Date is hereby □ advanced extended to <u>November 30, 2024</u> .

☐ AGREED USE: The Agreed Use is hereby modified to:.

BASE RENT ADJUSTMENT: Monthly Base Rent shall be as follows: <u>Beginning of December 1, 2023 through November 30, 2024. The monthly base rent shall be $2.48/sq.ft. or $170,147.84. Estimated NNN expenses currently is about $.69 per square foot</u> .

OTHER: <u>Leasing commission per separate agreement. There shall not be any option to renew at the end of renewal period. Unless an extension with the terms and conditions mutually agreed between Landlord and Tenant</u> .

This Amendment shall not be construed against the party preparing it, but shall be construed as if all parties jointly prepared this Amendment and any uncertainty and ambiguity shall not be interpreted against any one party. Signatures to this Amendment accomplished by means of electronic signature or similar technology shall be legal and binding.

All other terms and conditions of this Lease shall remain unchanged and shall continue in full force and effect except as specifically amended herein.

EXECUTED as of the day and year first above written.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **By Lessor:** | **By Lessor:** | **By Lessor:** | | **By Lessor:** | **By Lessor:** | **By Lessor:** | |
|  | Xinbei Tech, Inc., a California corporation | Xinbei Tech, Inc., a California corporation | Xinbei Tech, Inc., a California corporation |  | Cerebras Systems, Inc., a Delaware corporation | Cerebras Systems, Inc., a Delaware corporation | Cerebras Systems, Inc., a Delaware corporation |
| By: | /s/ Te-Ning Chen | /s/ Te-Ning Chen | /s/ Te-Ning Chen | By: | /s/ Andrew Feldman | /s/ Andrew Feldman | /s/ Andrew Feldman |
| Name Printed: | Name Printed: | Name Printed: | Te-Ning Chen | Name Printed: | Name Printed: | Name Printed: | Andrew Feldman |
| Title: | Title: | President | President | Title: | Title: | CEO | CEO |
| Phone: | Phone: | Phone: |  | Phone: | Phone: | Phone: |  |
| Fax: | Fax: |  |  | Fax: | Fax: |  |  |
| Email: | Email: | [\*\*\*] | [\*\*\*] | Email: | Email: | [\*\*\*] | [\*\*\*] |
| By: |  |  |  | By: |  |  |  |
| Name Printed: | Name Printed: | Name Printed: |  | Name Printed: | Name Printed: | Name Printed: |  |
| Title: | Title: |  |  | Title: | Title: |  |  |
| Phone: | Phone: | Phone: |  | Phone: | Phone: | Phone: |  |
| Fax: | Fax: |  |  | Fax: | Fax: |  |  |
| Email: | Email: |  |  | Email: | Email: |  |  |
| Address: | Address: | Address: |  | Address: | Address: | Address: |  |
| Federal ID No.: | Federal ID No.: | Federal ID No.: |  | Federal ID No.: | Federal ID No.: | Federal ID No.: |  |

---

**AIR CRE \* https://www.aircre.com \* 213-687-8777 \* contracts@aircre.com**

**NOTICE: No part of these works may be reproduced in any form without permission in writing.**

---

| | | |
|:---|:---|:---|
| /s/ TNC | /s/ CSICAF | |
| INITIALS | INITIALS | |
| <br>© 2017 AIR CRE. All Rights Reserved.<br>ATL-1.02, Revised 10-22-2020 | | Last Edited: 6/2/20231:21 PM<br>Page 1 of 1 |

---

## Exhibit 10.1

**Exhibit 10.1(c)**

![exhibit102.jpg](exhibit102.jpg)

**SECOND AMENDMENT TO LEASE**

THIS SECOND AMENDMENT TO LEASE is made and entered into as of June 4, 2024, by and between Xinbei Tech, Inc., a California corporation ("Lessor") and Cerebras Systems, Inc., a Delaware corporation ("Lessee").

WHEREAS, on or about January 27, 2022, a Lease was entered into by and between Lessor and Lessee relating to certain real property commonly known as (street address, city, state, zip): **1237 E., Arques Avenue, Sunnyvale, California 94085** (the "Premises"), and on June 2, 2023, a First Amendment to Lease was entered into between Lessor and Lessee. The foregoing Lease and the First Amendment to Lease are hereafter referred to as the <br>"Lease".

WHEREAS, Lessor and Lessee now desire to amend the Lease,

NOW, THEREFORE, for good and valuable consideration to Lessor and Lessee, the receipt and sufficiency of which are hereby acknowledged, the Lessor and Lessee agree to further amend the Lease as set forth below:

**TERM:** The Expiration Date is hereby extended from December 1, 2024, to November 30, 2027.

**BASE RENT ADJUSTMENT:** Monthly Base Rent shall be as follows:

Beginning on December 1, 2024, through November 30, 2026, the Monthly Base Rent shall be $156,426.24, but the Monthly Base Rent due on December 1, 2024, for December 2024, shall be abated so long as Lessee is not in breach under this Lease prior to December 1, 2024.

Beginning on December 1, 2026, through November 30, 2027, the Monthly Base Rent shall be 161,119.03.

The estimated Operating Expenses currently are about $.69 per rentable square foot of the Premises.

**OTHER**: Lessor shall pay (1) to S5 Advisory, a leasing commission and (2) to Cushman & Wakefield (C&W), a commission pursuant per separate agreement between Lessor and S5 Advisory, and Lessor and Cushman & Wakefield, respectively. Lessee shall have no further option to extend the term of this Lease.

Lessor shall provide Lessee an improvement allowance as follows\*:

---

| | |
|:---|:---|
| **Work** | **Allowance** |
| Reseal the asphalt parking lot: | Up to $88,700 |
| Repair kitchen floor damaged by seeping underground water: | Up to $79,825 |
| Replace hand free faucets in all bathrooms\*\*: | Up to $11,000 |
| Add 6 additional EV chargers with Chargelink and replace existing<br>6 Chargepoint chargers with Chargelink. | Up to $80,000 |
| Replace current HVAC control system to Pelican Control System: | Up to $34,000 |

---

\* Lessee must provide to Lessor the bids and names of each proposed contractor prior to committing to such contractor and Lessor shall have the right (1) to reasonably approve such contractor, or (2) to substitute its own contractor for any contractor proposed by Lessee, provided that (2) the cost does not increase as a result of such substitution, and (b) Lessee has reasonably approved the contractor proposed by Lessor). Approval or disapproval of a contractor must occur within four weeks after one party submits the name of a contractor to the other. The foregoing allowances shall only be valid if Lessee provides bids and names of contractors during the period from the execution of this Lease until June 30, 2025. Payment of any allowance to Lessee shall be made within 30 days after lien-free completion, Lessor's reasonable approval of the work performed, and evidence of payment by Lessee, if applicable. Lessor shall also have the right to pay Lessee's contractor directly.

\*\*Lessee shall have the right to replace such faucets itself, without a contractor, provided it does so in the equivalent manner of a licensed contractor and comply with applicable law.

This Second Amendment shall not be construed against the party preparing it, but shall be construed as if all parties jointly prepared this Second Amendment and any uncertainty and ambiguity shall not be interpreted against any one party. Signatures to this Second Amendment accomplished by means of electronic signature or similar technology shall be legal and binding.

All other terms and conditions of this Lease shall remain unchanged and shall continue in full force and effect except as specifically amended herein.

------

EXECUTED as of the day and year first above written.

---

| |
|:---|
| **By Lessor:** |
| Xinbei Tech, Inc., a California corporation |
| By: /s/ Te-Ning Chen |
| Name Printed: Te-Ning Chen |
| Title: President |
| Phone: |
| Fax: |
| Email: [\*\*\*] |
| Federal ID No.: |
| **By Lessee:** |
| Cerebras Systems, Inc., a Delaware corporation |
| By: /s/ Andrew Feldman |
| Name Printed: Andrew Feldman |
| Title: CEO |
| Phone: [\*\*\*] |
| Fax: |
| Email: [\*\*\*] |
| Federal ID No.: |

---

**AIR CRE \* <u>https://www.aircre.com</u> \* 213-687-8777 \* contracts@aircre.com**

**NOTICE: No part of these works may be reproduced in any form without permission in writing.**

## Exhibit 10.2

**Exhibit 10.2(a)**

**CEREBRAS SYSTEMS INC**.

**2016 EQUITY INCENTIVE PLAN**

**As Adopted on May 5**, **2016 and Amended on January 23**, **2017**, **June 20**, **2017**, **July 5**, **2017**, **July 17**, **2018**,

**May 14**, **2019**, **September 10**, **2019**, **November 25**, **2019**, **May 18**, **2021**,

**November 16**, **2021**, **June 29**, **2022**, **February 14**, **2023**, **September 25**, **2023,**

 **January 16**, **2024, June 13, 2024, February 15, 2025, and September 19, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;<u>PURPOSE</u>**. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of the Company, its Parent and Subsidiaries by offering eligible persons an opportunity to participate in the Company's future performance through the grant of Awards covering Shares. Capitalized terms not defined in the text are defined in Section 14 hereof. Although this Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701, grants may be made pursuant to this Plan that do not qualify for exemption under Rule 701 or Section 25102(o). Any requirement of this Plan that is required in law only because of Section 25102(o) need not apply if the Committee so provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;SHARES SUBJECT TO THE PLAN**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Shares Available</u>**. Subject to Sections 2.2 and 11 hereof, the total number of Shares reserved and available for grant and issuance pursuant to this Plan will be 81,357,316 Shares. Subject to Sections 2.2 and 11 hereof, (A) in the event that Shares previously issued under the Plan; (B) in the event that Shares that otherwise would have been issuable under the Plan are withheld by7 the Company in payment of the Purchase Price, Exercise Price or withholding obligations, such Shares shall remain available for issuance under the Plan; and (C) in the event that an outstanding Option, Restricted Stock Unit of SAR for any reason expires or is cancelled, forfeited or terminated, the Shares allocable to the unexercised or unsettled portion of such Option Restricted Stock Unit of SAR, as applicable, shall remain available for issuance under the Plan. To the extent an Award is settled in cash, the cash settlement shall not reduce the number of Shares remaining available for issuance under the Plan. At all times the Company will reserve and keep available a sufficient number of Shares as will be required to satisfy the requirements of all Awards granted and outstanding under this Plan. In no event shall the total number of Shares issued (counting each reissuance of a Share that was previously issued and then reacquired by the Company pursuant to a forfeiture provision, right of first refusal, or repurchase by the Company as a separate issuance) under the Plan upon exercise of ISOs (as defined in Section 4 hereof) exceed 147,069,154 Shares (adjusted in proportion to any adjustments under Section 2.2 hereof) over the term of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustment of Shares</u>**. In the event that the Company's Common Stock is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision,

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combination, reclassification or other change in the capital structure of the Company affecting Shares without consideration, then in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan (a) the number and class of Shares reserved for issuance under this Plan, (b) the Exercise Prices of and number and class of Shares subject to outstanding Options and SARs, and (c) the Purchase Prices of and/or number and class of Shares subject to other outstanding Awards will (to the extent appropriate) be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and compliance with applicable securities or other laws; provided, however, that fractions of a Share will not be issued but will either be paid in cash at the Fair Market Value of such fraction of a Share or will be rounded down to the nearest whole Share, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;PLAN FOR BENEFIT OF SERVICE PROVIDERS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility</u>**. The Committee will have the authority to select persons to receive Awards. ISOs may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company. NQSOs (as defined in Section 4 hereof) and all other types of Awards may be granted to employees, officers, directors and consultants of the Company or any Parent or Subsidiary of the Company; *<u>provided</u>* such consultants render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction when Rule 701 is to apply to the Award granted for such services. A person may be granted more than one Award under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>No Obligation to Employ</u>**. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Subsidiary of Parent of the Company or limit in any way the right of the Company or any Subsidiary or Parent of the Company to terminate Participant's employment or other relationship at any time, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;<u>OPTIONS</u>**. The Committee may grant Options to eligible persons described in Section 3 hereof and will determine whether such Options will be Incentive Stock Options within the meaning of the Code ("***ISOs***") or Nonqualified Stock Options ("***NQSOs***"), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Option Grant</u>**. Each Option granted under this Plan will be evidenced by an Award Agreement which will expressly identify the Option as an ISO or an NQSO ("***Stock Option Agreement***"), and will be in such form and contain such provisions (which need not be the same for each Participant) as the Committee may from time to time approve, and which will comply with and be subject to the terms and conditions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Date of Grant</u>**. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option, unless a later date is otherwise

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specified by the Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Period</u>**. Options may be exercisable within the time or upon the events determined by the Committee in the Award Agreement and may be awarded as immediately exercisable but subject to repurchase pursuant to Section 10 hereof or may be exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option Agreement governing such Option; provided, however, that (a) no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and (b) no ISO granted to a person who directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Subsidiary or Parent of the Company ("***Ten Percent Stockholder***") will be exercisable after the expiration of five (5) years from the date the ISO is granted, but in no event shall an Option granted to an employee who is a non-exempt employee for purposes of overtime pay under the U.S. Fair Labor Standards Act of 1938 be exercisable earlier than six (6) months after its date of grant. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines. In addition, if an Option is determined to otherwise be subject to Section 409A of the Code, such Option shall be exercisable for the Shares subject to such Option no later than the end of the applicable short-term deferral period determined under Section 409A of the Code by the Committee, except as otherwise determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Price</u>**. The Exercise Price of an Option will be determined by the Committee when the Option is granted and shall not be less than the Fair Market Value per Share on the date of grant unless expressly determined in writing by the Committee; provided that the Exercise Price of an ISO granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased must be made in accordance with Section 8 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Method of Exercise</u>**. Options may be exercised only by delivery to the Company of a stock option exercise agreement (accepted via written, electronic or other means) (the "***Exercise Agreement***") in a form approved by the Committee (which need not be the same for each Participant). The Exercise Agreement will state (a) the number of Shares being purchased, (b) the restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and (c) such representations and agreements regarding Participant's investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable securities or other laws. Each Participant's Exercise Agreement may be modified by (i) agreement of Participant and the Company or (ii) substitution by the Company, upon becoming a public company, in order to add the payment terms set forth in Section 8.1 that apply to a public company and such other terms as shall be necessary or advisable in order to exercise a public company option. Upon exercise of an Option, Participant shall execute and deliver to the Company the Exercise Agreement then in effect, together with payment in full of the Exercise Price for the number of Shares being purchased and satisfaction of any applicable Tax-Related Obligations (as defined in Section 8.2 hereof). No adjustment will

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be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 2.2 of the Plan. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>**. Subject to earlier termination pursuant to Sections 11 and 13.3 hereof and notwithstanding the exercise periods set forth in the Stock Option Agreement, exercise of an Option will always be subject to the following terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Other than Death or Disability or for Cause</u>. If the Participant is Terminated for any reason other than death, Disability or for Cause, then the Participant may exercise such Participant's Options only to the extent that such Options are exercisable as to Vested Shares upon the Termination Date, except as otherwise determined by the Committee or required by applicable law. Such Options must be exercised by the Participant, if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months after the Termination Date (or within such shorter time period, not less than thirty (30) days, or within such longer time period after the Termination Date as may be determined by the Committee or required by applicable law, with any exercise beyond three (3) months after the date Participant ceases to be an employee deemed to be an NQSO) but in any event, no later than the expiration date of the Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Death or Disability</u>. If the Participant is Terminated because of Participant's death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant's Options may be exercised only to the extent that such Options are exercisable as to Vested Shares on the Termination Date, except as otherwise determined by the Committee ore required by applicable law. Such Options must be exercised by Participant (or Participant's legal representative or authorized assignee), if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within such longer time period, after the Termination Date as may be determined by the Committee or required by applicable law, with any exercise beyond (a) three (3) months after the date Participant ceases to be an employee when the Termination is for any reason other than the Participant's death or disability, within the meaning of Section 22(e)(3) of the Code, or (b) twelve (12) months after the date Participant ceases to be an employee when the Termination is for Participant's disability, within the meaning of Section 22(e)(3) of the Code, deemed to be an NQSO) but in any event no later than the expiration date of the Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>For Cause</u>. If the Participant is Terminated for Cause, the Participant may exercise such Participant's Options, but not to an extent greater than such Options are exercisable as to Vested Shares upon the Termination Date and Participant's Options shall expire on such Participant's Termination Date, or at such later time and on such conditions as are determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Exercise</u>**. The Committee may specify a reasonable minimum number of Shares that may be purchased on any exercise of an Option, provided that

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such minimum number will not prevent Participant from exercising the Option for the full number of Shares for which it is then exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on ISOs</u>**. The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which ISOs are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company or any Parent or Subsidiary of the Company) will not exceed One Hundred Thousand Dollars ($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a Participant during any calendar year exceeds One Hundred Thousand Dollars ($100,000), then the Options for the first One Hundred Thousand Dollars ($100,000) worth of Shares to become exercisable in such calendar year will be ISOs and the Options for the amount in excess of One Hundred Thousand Dollars ($100,000) that become exercisable in that calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date (as defined in Section 13.1 hereof) to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISOs, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Modification</u>**<u>,</u> **<u>Extension or Renewal</u>**. The Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant's rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to Section 4.10 hereof, the Committee may reduce the Exercise Price of outstanding Options without the consent of Participants by a written notice to them; provided, however, that the Exercise Price may not be reduced below the minimum Exercise Price that would be permitted under Section 4.4 hereof for Options granted on the date the action is taken to reduce the Exercise Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>No Disqualification</u>**. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant, to disqualify any Participant's ISO under Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>RESTRICTED STOCK</u>**. A Restricted Stock Award is an offer by the Company to sell to an eligible person Shares that are subject to certain specified restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may purchase, the Purchase Price, the restrictions to which the Shares will be subject, and all other terms and conditions of the Restricted Stock Award, subject to the following terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Form of Restricted Stock Award</u>**. All purchases under a Restricted Stock Award made pursuant to this Plan will be evidenced by an Award Agreement ("***Restricted Stock Purchase Agreement***") that will be in such form (which need not be the same for each

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Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. The Restricted Stock Award will be accepted by the Participant's execution and delivery of the Restricted Stock Purchase Agreement and full payment for the Shares to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is delivered to the person. If such person does not execute and deliver the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within such thirty (30) days, then the offer will terminate, unless otherwise determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase Price</u>**. The Purchase Price of Shares sold pursuant to a Restricted Stock Award will be determined by the Committee on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance with Section 8 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends and Other Distributions</u>**. Participants holding Restricted Stock Awards will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Committee provides otherwise at the time the Award is granted. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Restricted Stock Awards with respect to which they were paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictions</u>**. Restricted Stock Awards may be subject to the restrictions set forth in Sections 9 and 10 hereof or, with respect to a Restricted Stock Award to which Section 25102(o) is to apply, such other restrictions not inconsistent with Section 25102(o).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;RESTRICTED STOCK UNITS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Awards of Restricted Stock Units</u>**. A Restricted Stock Unit ("***RSU***") is an Award covering a number of Shares that may be settled in cash, or by issuance of those Shares at a date in the future, or by a combination of cash and Shares. No Purchase Price shall apply to an RSU settled in Shares. All grants of RSUs will be evidenced by an Award Agreement (the "***RSU Agreement***") that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. No RSU will have a term longer than ten (10) years from the date the RSU is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Form and Timing of Settlement</u>**. To the extent permissible under applicable law, the Committee may permit a Participant to defer payment (including settlement) under an RSU to a date or dates after the RSU has vested, provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the Code (or any successor) and any regulations or rulings promulgated thereunder, to the extent the Participant is subject to Section 409A of the Code. Payment may be made in the form of cash or whole Shares or a combination thereof, all as the Committee determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividend Equivalent Payments</u>**. The Board may permit Participants holding RSUs to receive dividend equivalent payments on outstanding RSUs if and when

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dividends are paid to stockholders on Shares. In the discretion of the Board, such dividend equivalent payments may be paid in cash or Shares and they may either be paid at the same time as dividend payments are made to stockholders or delayed until Shares are issued pursuant to the RSU grants and may be subject to the same vesting or performance requirements as the RSUs. If the Board permits dividend equivalent payments to be made on RSUs, the terms and conditions for such dividend equivalent payments will be set forth in the RSU Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;STOCK APPRECIATION RIGHTS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Awards of SARs</u>**. Stock Appreciation Rights ("***SARs***") may be settled in cash, or Shares (which may consist of Restricted Stock or RSUs) or a combination thereof, having a value equal to the value determined by multiplying the difference between the Fair Market Value on the date of exercise over the Exercise Price and the number of Shares with respect to which the SAR is being exercised. All grants of SARs made pursuant to this Plan will be evidenced by an Award Agreement (the "***SAR Agreement***") that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Period and Expiration Date</u>**. A SAR will be exercisable within the times or upon the occurrence of events determined by the Committee and set forth in the SAR Agreement. The SAR Agreement shall set forth the expiration date; provided that no SAR will be exercisable after the expiration of ten (10) years from the date the SAR is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Price</u>**. The Committee will determine the Exercise Price of the SAR when the SAR is granted, which may not be less than the Fair Market Value on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>**. Subject to earlier termination pursuant to Sections 11 and 13 hereof and notwithstanding the exercise periods set forth in the SAR Agreement, exercise of SARs will always be subject to the following terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Other than Death or Disability or for Cause</u>. If the Participant is Terminated for any reason other than death, Disability or for Cause, then the Participant may exercise such Participant's SARs only to the extent that such SARs are exercisable as to Vested Shares upon the Termination Date or as otherwise determined by the Committee or as required by applicable law. SARs must be exercised by the Participant, if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within three (3) months after the Termination Date (or within such shorter time period, not less than thirty (30) days, or within such longer time period after the Termination Date as may be determined by the Committee or as required by applicable law) but in any event, no later than the expiration date of the SARs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Death or Disability</u>. If the Participant is Terminated because of Participant's death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause), then Participant's SARs may be exercised only to the extent that such SARs are exercisable as to Vested Shares on the Termination Date or as otherwise

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determined by the Committee or as required by applicable law. Such SARs must be exercised by Participant (or Participant's legal representative or authorized assignee), if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date determined by the Committee, within twelve (12) months after the Termination Date (or within such shorter time period, not less than six (6) months, or within such longer time period after the Termination Date as may be determined by the Committee or as required by applicable law) but in any event no later than the expiration date of the SARs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>For Cause</u>. If the Participant is Terminated for Cause, the Participant may exercise such Participant's SARs, but not to an extent greater than such SARs are exercisable as to Vested Shares upon the Termination Date and Participant's SARs shall expire on such Participant's Termination Date, or at such later time and on such conditions as are determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;PAYMENT FOR PURCHASES AND EXERCISES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment in General</u>**. Payment for Shares acquired pursuant to this Plan may be made in cash equivalents (including by check or Automated Clearing House ("***ACH***") transfer) or, where expressly approved for the Participant by the Committee and subject to compliance with applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;by cancellation of indebtedness of the Company owed to the Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;by surrender of shares of the Company that are clear of all liens, claims, encumbrances or security interests and: (i) for which the Company has received "full payment of the purchase price" within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares) or (ii) that were obtained by Participant in the public market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid (i) imputation of income under Sections 483 and 1274 of the Code and (ii) unfavorable accounting treatment as determined by the Committee; provided, however, that Participants who are not employees or directors of the Company will not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the Shares; provided, further, that the portion of the Exercise Price or Purchase Price, as the case may be, equal to the par value (if any) of the Shares must be paid in cash or other legal consideration permitted by the laws under which the Company is then incorporated or organized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;by waiver of compensation due or accrued to the Participant from the Company for services rendered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;by participating in a formal cashless exercise program implemented by the Committee in connection with the Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;provided that a public market for the Company's common stock exists, by exercising through a "same day sale" commitment from the Participant and a broker-dealer whereby the Participant irrevocably elects to exercise the Award and to sell a portion of the Shares so purchased sufficient to pay the total Exercise Price or Purchase Price, and whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price or Purchase Price directly to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;by any combination of the foregoing or any other method of payment approved by the Committee.

For avoidance of uncertainty: ACH transfers that have been received by the Company into its bank account designated for receipt of such transfers under this Section 8.1 shall be deemed to have been received for all purposes under this Plan as of the date on which such transfers were initiated from the transferor's account and made irrevocable by the transferor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;**<u>Withholding Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding Generally</u>. Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy the maximum tax withholding requirements as to income tax, social insurance, payroll tax, fringe benefits tax, payment on account and other tax-related obligations (collectively, "***Tax-Related Obligations***") prior to the delivery of any written or electronic certificate or certificates for such Shares. Whenever, under this Plan, payments in satisfaction of Awards are to be made in cash by the Company, such payment will be net of an amount sufficient to satisfy applicable tax withholding requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Withholding</u>. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Committee may in its sole discretion allow the Participant to satisfy up to the maximum Tax-Related Obligations in the employee's applicable jurisdictions by electing to have the Company withhold from the Shares to be issued up to the number of Shares having a Fair Market Value on the date that the amount of tax to be withheld is to be determined that is not more than the maximum Tax-Related Obligations in the employee's applicable jurisdictions; or to arrange a mandatory "sell to cover" on Participant's behalf (without further authorization) but in no event will the Company withhold Shares or "sell to cover" if such withholding would result in adverse accounting or compliance consequences to the Company. The maximum Tax-Related Obligations are based on the applicable rates of the relevant tax authorities (for example, federal, state and local), including the employee's share of payroll or similar taxes, as provided in the tax law, regulations or the authority's administrative practices, not to exceed the highest statutory rate in that jurisdiction. Any elections to have Shares withheld or sold for this purpose will be made in accordance with the requirements established by the Committee for such elections and be in writing in a form acceptable to the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;RESTRICTIONS ON AWARDS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability</u>**. Except as permitted by the Committee, Awards granted under this Plan, and any interest therein, will not be transferable or assignable by Participant, other than by will or by the laws of descent and distribution, and, with respect to NQSOs for Participants in the U.S., by instrument to an inter vivos or testamentary trust in which the NQSOs are to be passed to beneficiaries upon the death of the trustor (settlor), or by gift to "family member" as that term is defined in Rule 701, and may not be made subject to execution, attachment or similar process. For the avoidance of doubt, the prohibition against assignment and transfer applies to Awards and any Shares underlying the Awards prior to the issuance of the Shares, and pursuant to the foregoing sentence shall be understood to include, without limitation, a prohibition against any pledge, hypothecation, or other transfer, including any short position, any "put equivalent position" or any "call equivalent position" (in each case, as defined in Rule 16a-1 promulgated under the Exchange Act). Unless an Award is transferred pursuant to the terms of this Section, during the lifetime of the Participant an Award will be exercisable only by the Participant or Participant's legal representative and any elections with respect to an Award may be made only by the Participant or Participant's legal representative. The terms of an Award shall be binding upon the executor, administrator, successors and assigns of the Participant who is a party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Securities Law and Other Regulatory Compliance</u>**. Although this Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act, Awards may be made pursuant to this Plan that do not qualify for exemption under Rule 701 or Section 25102(o). Any requirement of this Plan which is required in law only because of Section 25102(o) need not apply with respect to a particular Award to which Section 25102(o) will not apply. An Award will not be effective unless such Award is in compliance with all applicable U.S. and non-U.S. federal, state and local securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Company's equity securities may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise, settlement or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue Shares or deliver certificates for Shares under this Plan prior to (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable, and/or (b) compliance with any exemption, completion of any registration or other qualification of such Shares under any U.S. and non-U.S. federal, state or local law or ruling of any governmental body that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the exemption, registration, qualification or listing requirements of any securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Exchange and Buyout of Awards</u>**. The Committee may, at any time or from time to time, authorize the Company, with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. Without prior stockholder approval the Committee may reprice Options or SARs (and

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where such repricing is a reduction in the Exercise Price of outstanding Options or SARs, the consent of the affected Participants is not required provided written notice is provided to them). The Committee may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the Committee and the Participant may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;RESTRICTIONS ON SHARES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Privileges of Stock Ownership</u>**. No Participant will have any of the rights of a stockholder with respect to any Shares until such Shares are issued to the Participant. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock. The Participant will have no right to retain such stock dividends or stock distributions with respect to Unvested Shares that are repurchased as described in this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights of First Refusal and Repurchase</u>**. At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) in the Award Agreement (a) a right of first refusal to purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party, provided that such right of first refusal terminates upon (i) subject to any applicable market standoff restrictions, the effective date of the first sale of common stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC under the Securities Act (other than a registration statement relating solely to the issuance of common stock pursuant to a business combination or an employee incentive or benefit plan); (ii) any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving corporation or any direct or indirect Parent thereof is registered under the Exchange Act; or (iii) any transfer or conversion of Shares made pursuant to a statutory conversion of the Company into another form of legal entity if the common equity (or comparable equity security) of entity resulting from such conversion is registered under the Exchange Act; and (b) a right to repurchase Unvested Shares held by a Participant for cash and/or cancellation of purchase money indebtedness owed to the Company by the Participant following such Participant's Termination at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement to Vote Shares</u>**. At the discretion of the Committee, the Company may require that, as a condition to the receipt of the Shares upon issuance of an Award, exercise of an Option or SAR or settlement of an RSU, the Participant and any transferee of the Shares agree to vote such Shares pursuant to the terms of a Voting Agreement by and between the Company and certain of its stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Escrow</u>**<u>;</u> **<u>Pledge of Shares</u>**. To enforce any restrictions on a Participant's Shares, the Committee may require the Participant to deposit all written or electronic certificates

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representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or terminated. The Committee may cause a legend or legends referencing such restrictions to be placed on the written or electronic certificate. Any Participant who is permitted to execute a promissory note as partial or full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant's obligation to the Company under the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant's Shares or other collateral. In connection with any pledge of the Shares, Participant will be required to execute and deliver a written pledge agreement in such form as the Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Securities Law Restrictions</u>**. All written or electronic certificates for Shares or other securities delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable U.S. and non-U.S. federal, state or local securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Company's equity securities may be listed or quoted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;CORPORATE TRANSACTIONS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Acquisitions or Other Combinations</u>**. In the event that the Company is subject to an Acquisition or Other Combination, outstanding Awards acquired under the Plan shall be subject to the agreement evidencing the Acquisition or Other Combination, which need not treat all outstanding Awards in an identical manner. Such agreement, without the Participant's consent, shall provide for one or more of the following with respect to all outstanding Awards as of the effective date of such Acquisition or Other Combination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The continuation of such outstanding Awards by the Company (if the Company is the successor entity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The assumption of outstanding Awards by the successor or acquiring entity (if any) in such Acquisition or Other Combination (or by any of its Parents, if any), which assumption, will be binding on all Participants; provided that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or upon the settlement of any award that is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) and Section 409A of the Code. For the purposes of this Section 11, an Award will be considered assumed if, following the Acquisition or Other Combination, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Acquisition or Other Combination, the consideration (whether stock, cash, or other securities or property) received in the Acquisition or Other Combination by holders of Shares for each Share held on the effective date of the transaction

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(and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Acquisition or Other Combination is not solely common stock of the successor corporation or its Parent, the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the settlement of an RSU, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Acquisition or Other Combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The substitution by the successor or acquiring entity in such Acquisition or Other Combination (or by any of its Parents, if any) of equivalent awards with substantially the same terms for such outstanding Awards (except that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) and Section 409A of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The full or partial exercisability or vesting and accelerated expiration of outstanding Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The settlement of the Fair Market Value of such outstanding Award (whether or not then vested or exercisable) in cash, cash equivalents, or securities of the successor entity (or its Parent, if any) followed by the cancellation of such Awards; provided however, that such Award may be cancelled without consideration if such Award has no value, as determined by the Committee, in its discretion. Subject to Section 409A of the Code, such payment may be made in installments and may be deferred until the date or dates when the Award would have become exercisable or vested. Such payment may be subject to vesting based on the Participant's continued service, provided that without the Participant's consent, the vesting schedule shall not be less favorable to the Participant than the schedule under which the Award would have become vested or exercisable. For purposes of this Section 11.1(e), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The termination in its entirety of any outstanding Award, without payment of any consideration, that is not exercised in accordance with its terms upon or prior to consummation of the transactions contemplated by the Acquisition or Other Combination within a time specified by the Committee, in its discretion, for such exercise, whether or not such Award is then fully exercisable.

Immediately following an Acquisition or Other Combination, outstanding Awards shall terminate and cease to be outstanding, except to the extent such Awards, have been continued, assumed or substituted, as described in Sections 11.1(a), (b) and/or (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Assumption of Awards by the Company</u>**. The Company, from time to time, also may substitute or assume outstanding awards granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (a) granting an Award

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under this Plan in substitution of such other entity's award or (b) assuming and/or converting such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other entity had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another entity, the terms and conditions of such award will remain unchanged (except that the exercise price and the number and nature of shares issuable upon exercise of any such option or stock appreciation right, or any award that is subject to Section 409A of the Code, will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option or SAR in substitution for and rather than assuming an existing option or stock appreciation right, such new Option or SAR may be granted with a similarly adjusted Exercise Price and number of underlying Shares and such other changes approved by the Committee, subject to the consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Committee Authority</u>**. This Plan will be administered by the Committee. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan. Without limitation, the Committee will have the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;prescribe, amend, expand, modify and rescind or terminate rules and regulations relating to this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;approve persons to receive Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;determine the form and terms of Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;determine the number of Shares or other consideration subject to Awards granted under this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair Market Value in connection with circumstances that impact the Fair Market Value, if necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or awards under any other incentive or compensation plan of the Company or any Parent or Subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;grant waivers of any conditions of this Plan or any Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;determine the terms of vesting, exercisability, settlement and payment of Awards to be granted pursuant to this Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;correct any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award, any Award Agreement, or any Exercise Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;determine whether an Award has been vested or become exercisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;extend the vesting period beyond a Participant's Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;adopt rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and administration of the Plan to accommodate or facilitate requirements of local law and procedures outside of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;delegate any of the foregoing to a subcommittee consisting of one or more directors or executive officers pursuant to a specific delegation as may otherwise be permitted by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;change the vesting schedule of Awards under the Plan prospectively in the event that the Participant's service status changes between full and part time status in accordance with Company policies relating to work schedules and vesting of Awards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;make all other determinations necessary or advisable in connection with the administration of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Standalone</u>**<u>,</u> **<u>Tandem and Substitute Awards</u>**. Awards granted under the Plan may, in the sole discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other Award granted under the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Committee Composition and Discretion</u>**. The Board may delegate full administrative authority over the Plan and Awards to a Committee consisting of at least one member of the Board (or such greater number as may then be required by applicable law). Unless in contravention of any express terms of this Plan or Award, any determination made by the Committee with respect to any Award will be made in its sole discretion either (a) at the time of grant of the Award, or (b) subject to Section 4.9 hereof, at any later time. Any such determination will be final and binding on the Company and on all persons having an interest in any Award under this Plan. To the extent permitted by applicable law, the Committee may delegate to one or more directors or officers of the Company the authority to grant an Award under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Nonexclusivity of the Plan</u>**. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without

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limitation, the granting of stock options and other equity awards otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>**. This Plan and all agreements hereunder shall be governed by and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;EFFECTIVENESS**, **AMENDMENT AND TERMINATION OF THE PLAN**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Adoption and Stockholder Approval</u>**. This Plan will become effective on the date that it is adopted by the Board (the "***Effective Date***"). This Plan will be approved by the stockholders of the Company (excluding Shares issued pursuant to this Plan), consistent with applicable laws, within twelve (12) months before or after the Effective Date. Upon the Effective Date, the Committee may grant Awards pursuant to this Plan; provided, however, that: (a) no Option or SAR may be exercised prior to initial stockholder approval of this Plan; (b) no Option or SAR granted pursuant to an increase in the number of Shares approved by the Board shall be exercised prior to the time such increase has been approved by the stockholders of the Company; (c) in the event that initial stockholder approval is not obtained within the time period provided herein, all Awards for which only the exemption from California's securities qualification requirements provided by Section 25102(o) can apply shall be canceled, any Shares issued pursuant to any such Award shall be canceled and any purchase of such Shares issued hereunder shall be rescinded; and (d) Awards (to which only the exemption from California's securities qualification requirements provided by Section 25102(o) can apply) granted pursuant to an increase in the number of Shares approved by the Board which increase is not approved by stockholders within the time then required under Section 25102(o) shall be canceled, any Shares issued pursuant to any such Awards shall be canceled, and any purchase of Shares subject to any such Award shall be rescinded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term of Plan</u>**. Unless earlier terminated as provided herein, this Plan will automatically terminate ten (10) years after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment or Termination of Plan</u>**. Subject to Section 4.9 hereof, the Board may at any time (a) terminate or amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan and (b) terminate any and all outstanding Options, SARs or RSUs upon a dissolution or liquidation of the Company, followed by the payment of creditors and the distribution of any remaining funds to the Company's stockholders; provided, however, that the Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such stockholder approval pursuant to Section 25102(o) or pursuant to the Code or the regulations promulgated under the Code as such provisions apply to ISO plans. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Award previously granted under the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;<u>DEFINITIONS</u>**. For all purposes of this Plan, the following terms will have the following meanings.

"***Acquisition***," for purposes of Section 11, means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any consolidation or merger in which the Company is a constituent entity or is a party in which the voting stock and other voting securities of the Company that are outstanding immediately prior to the consummation of such consolidation or merger represent, or are converted into, securities of the surviving entity of such consolidation or merger (or of any Parent of such surviving entity) that, immediately after the consummation of such consolidation or merger, together possess less than fifty percent (50%) of the total voting power of all voting securities of such surviving entity (or of any of its Parents, if any) that are outstanding immediately after the consummation of such consolidation or merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;a sale or other transfer by the holders thereof of outstanding voting stock and/or other voting securities of the Company possessing more than fifty percent (50%) of the total voting power of all outstanding voting securities of the Company, whether in one transaction or in a series of related transactions, pursuant to an agreement or agreements to which the Company is a party and that has been approved by the Board, and pursuant to which such outstanding voting securities are sold or transferred to a single person or entity, to one or more persons or entities who are Affiliates of each other, or to one or more persons or entities acting in concert; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the sale, lease, transfer or other disposition, in a single transaction or series of related transactions, by the Company and/or any Subsidiary or Subsidiaries of the Company, of all or substantially all the assets of the Company and its Subsidiaries taken as a whole, (or, if substantially all of the assets of the Company and its Subsidiaries taken as a whole are held by one or more Subsidiaries, the sale or disposition (whether by consolidation, merger, conversion or otherwise) of such Subsidiaries of the Company), except where such sale, lease, transfer or other disposition is made to the Company or one or more wholly owned Subsidiaries of the Company.

Notwithstanding the foregoing, the following transactions shall not constitute an "***Acquisition***": (1) the closing of the Company's first public offering pursuant to an effective registration statement filed under the Securities Act or (2) any transaction the sole purpose of which is to change the state of incorporation of the Company or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction.

"***Affiliate***" of a specified person means a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified (where, for purposes of this definition, the term "***control***" (including the terms ***controlling***, ***controlled by*** and ***under common control with***) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

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"***Award***" means any award pursuant to the terms and conditions of this Plan, including any Option, Restricted Stock Unit, Stock Appreciation Right or Restricted Stock Award.

"***Award Agreement***" means, with respect to each Award, the executed written or electronic agreement between the Company and the Participant setting forth the terms and conditions of the Award as approved by the Committee. For purposes of the Plan, the Award Agreement may be accepted by a Participant via written, electronic or other means, subject to requirements under applicable law.

"***Board***" means the Board of Directors of the Company.

"***Cause***" means Termination because of (a) Participant's unauthorized misuse of the Company or a Parent or Subsidiary of the Company's trade secrets or proprietary information, (b) Participant's conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude, (c) Participant's committing an act of fraud against the Company or a Parent or Subsidiary of the Company or (d) Participant's gross negligence or willful misconduct in the performance of his or her duties that has had or will have a material adverse effect on the Company or Parent or Subsidiary of the Company' reputation or business.

"***Code***" means the U.S. Internal Revenue Code of 1986, as amended. "***Committee***" means the committee created and appointed by the Board to administer this Plan, or if no committee is created and appointed, the Board.

"***Company***" means Cerebras Systems Inc., or any successor corporation. "***Disability***" means a Participant is unable to perform the duties of his or her customary position of employment by reason of any medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for a continuous period of not less than twelve (12) months. The Committee may require such medical or other evidence as it deems necessary to judge the nature and permanency of the Participant's condition.

"***Exchange Act***" means the U.S. Securities Exchange Act of 1934, as amended. "***Exercise Price***" means the price per Share at which a holder of an Option or a SAR may purchase Shares issuable upon exercise of the Option or the SAR.

"***Fair Market Value***" means, as of any date, the value of a Share determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;if such Share is then publicly traded on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the Share is listed or admitted to trading as reported in <u>The Wall Street</u> <u>Journal</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;if such Share is publicly traded but is not listed or admitted to trading on a national securities exchange, the average of the closing bid and ask prices on the date of determination as reported by <u>The Wall Street Journal</u> (or as otherwise reported by any newspaper or other source as the Committee may determine); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;if none of the foregoing is applicable to the valuation in question, by the Committee in good faith.

"***Option***" means an award of an option to purchase Shares pursuant to Section 4 of this Plan.

"***Other Combination***" for purposes of Section 11 means any (a) consolidation or merger in which the Company is a constituent entity and is not the surviving entity of such consolidation or merger or (b) any conversion of the Company into another form of entity; provided that such consolidation, merger or conversion does not constitute an Acquisition.

"***Parent***" of a specified entity means, any entity that, either directly or indirectly, owns or controls such specified entity, where for this purpose, "***control***" means the ownership of stock, securities or other interests that possess at least a majority of the voting power of such specified entity (including indirect ownership or control of such stock, securities or other interests).

"***Participant***" means a person who receives an Award under this Plan.

"***Plan***" means this 2016 Equity Incentive Plan, as amended from time to time. "***Purchase Price***" means the price at which a Participant may purchase Restricted Stock pursuant to this Plan.

"***Restricted Stock***" means Shares purchased pursuant to a Restricted Stock Award under this Plan.

"***Restricted Stock Award***" means an award of Shares pursuant to Section 5 hereof.

"***Restricted Stock Unit***" or "***RSU***" means an award made pursuant to Section 6 hereof.

"***Rule 701***" means Rule 701 *et seq.* promulgated by the SEC under the Securities Act.

"***SEC***" means the U.S. Securities and Exchange Commission.

"***Section 25102***(***o***)" means Section 25102(o) of the California Corporations Code. "***Securities Act***" means the U.S. Securities Act of 1933, as amended.

"***Shares***" means shares of the Company's Common Stock reserved for issuance under this Plan, as adjusted pursuant to Sections 2.2 and 11 hereof, and any successor security.

"***Stock Appreciation Right***" or "***SAR***" means an award granted pursuant to Section 7 hereof.

"***Subsidiary***" means any entity (other than the Company) in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain owns stock or other equity securities representing fifty percent (50%) or more of the total combined voting power of all classes of stock or other equity securities in one of the other entities in such chain.

------

"***Termination***" or "***Terminated***" means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director or consultant to the Company or a Parent or Subsidiary of the Company. A Participant will not be deemed to have ceased to provide services while the Participant is on a bona fide leave of absence, if such leave was approved by the Company in writing. In the case of an approved leave of absence, the Committee may make such provisions respecting crediting of service, including suspension of vesting of the Award (including pursuant to a formal policy adopted from time to time by the Company) it may deem appropriate. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the "***Termination Date***").

"***Unvested Shares***" means "***Unvested Shares***" as defined in the Award Agreement for an Award.

"***Vested Shares***" means "***Vested Shares***" as defined in the Award Agreement for an Award.

\* \* \* \* \* \* \* \* \* \* \*

## Exhibit 10.2

**Exhibit 10.2(b)**

<u>EARLY EXERCISE FORM</u>

***OPTION GRANT NO***.

**<u>NOTICE OF STOCK OPTION GRANT</u>**

**CEREBRAS SYSTEMS INC**.

**2016 EQUITY INCENTIVE PLAN**

The Optionee named below ("***Optionee***") has been granted an option (this "***Option***") to purchase shares of Common Stock, $0.00001 par value per share (the "***Common Stock***"), of Cerebras Systems Inc., a Delaware corporation (the "***Company***"), pursuant to the Company's 2016 Equity Incentive Plan, as amended from time to time (the "***Plan***") on the terms, and subject to the conditions, described below and in the Stock Option Agreement attached hereto as **<u>Exhibit A</u>**, including its annexes (the "***Stock Option Agreement***").

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| | |
|:---|:---|
| **Optionee:** | |
| **Maximum Number of Shares Subject to this Option (the "*Shares*"):** | |
| **Exercise Price Per Share:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Date of Grant:** | |
| **Vesting Start Date:** | |
| **Exercise Schedule:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Expiration Date:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Tax Status of Option:**<br>(Check *<u>Only</u>* One Box): | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Vesting Schedule**: [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ]. | |

---

**General**; **Agreement**: By their mutual acceptance of this Option, Optionee and the Company agree that this Option is granted under and governed by this Notice of Stock Option Grant (this "***Grant Notice***") and by the provisions of the Plan and the Stock Option Agreement. The Plan and the Stock Option Agreement are incorporated herein by reference. Capitalized terms used but not defined herein shall have the meanings given to them in the Plan or in the Stock Option Agreement, as applicable.

By acceptance of this Option, Optionee acknowledges receipt of a copy of this Grant Notice, the Plan and the Stock Option Agreement, represents that Optionee has carefully read and is familiar with their provisions, and hereby accepts the Option subject to all of their respective terms and conditions. Optionee acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Optionee should consult a tax adviser prior to such exercise or disposition. Optionee agrees and acknowledges that the Vesting Schedule may change prospectively in the event that Optionee's service status changes between full and part time status in accordance with Company policies relating to work schedules and vesting of equity awards.

**Execution and Delivery**: This Grant Notice may be executed and delivered electronically whether via the Company's intranet or the Internet site of a third party or via email or any other means of electronic delivery specified by the Company. By Optionee's acceptance hereof (whether written, electronic or otherwise), Optionee agrees, to the fullest extent permitted by law, that in lieu of receiving documents in paper format, Optionee accepts the electronic delivery of any documents that the Company (or any third party the Company may designate), may deliver in connection with this grant (including the Plan, this Grant Notice, the Stock Option Agreement, the information described in Rules 701(e)(2), (3), (4) and (5) under the Securities Act (the "***701 Disclosures***"), account statements, or other communications or information) whether via the Company's intranet or the Internet site of such third party or via email or such other means of electronic delivery specified by the Company.

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<u>EARLY EXERCISE FORM</u>

---

| | | |
|:---|:---|:---|
| **CEREBRAS SYSTEMS INC.** | **CEREBRAS SYSTEMS INC.** | |
| By /Signature: | | Optionee Signature: |
| Typed Name: | | Optionee's Name: |
| Title: | | |
| **ATTACHMENT**: | Exhibit A – Stock Option Agreement | Exhibit A – Stock Option Agreement |

---

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<u>EXHIBIT A</u>

<u>EARLY EXERCISE FORM</u>

**<u>STOCK OPTION AGREEMENT</u>**

**CEREBRAS SYSTEMS INC**.

**2016 EQUITY INCENTIVE PLAN**

This Stock Option Agreement (this "***Agreement***") is made and entered into as of the date of grant (the "***Date of Grant***") set forth on the Notice of Stock Option Grant attached as the facing page to this Agreement (the "***Grant Notice***") by and between Cerebras Systems Inc., a Delaware corporation (the "***Company***"), and the optionee named on the Grant Notice ("***Optionee***"). Capitalized terms not defined in this Agreement shall have the meaning ascribed to them in the Company's 2016 Equity Incentive Plan, as amended from time to time (the "***Plan***"), or in the Grant Notice, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;GRANT OF OPTION**. The Company hereby grants to Optionee an option (this "***Option***") to purchase up to the total number of shares of Common Stock of the Company, $0.00001 par value per share (the "***Common Stock***"), set forth in the Grant Notice as the Shares (the "***Shares***") at the Exercise Price Per Share set forth in the Grant Notice (the "***Exercise Price***"), subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan. If designated as an Incentive Stock Option in the Grant Notice, this Option is intended to qualify as an incentive stock option (the "***ISO***") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "***Code***"), except that if on the Date of Grant Optionee is not subject to U.S. income tax, then this Option shall be a NQSO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;EXERCISE PERIOD**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Period of Option</u>**. Subject to the conditions set forth in this Agreement, all or part of this Option may be exercised at any time after the Date of Grant. Shares purchased by exercising this Option may be subject to the Repurchase Option as set forth in Section 7 below. This Option will become vested during its term as to portions of the Shares in accordance with the Vesting Schedule set forth in the Grant Notice. Notwithstanding any provision in the Plan or this Agreement to the contrary, on or after Optionee's Termination Date, this Option may not be exercised with respect to any Shares that are Unvested Shares on Optionee's Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Vesting of Option Shares</u>**. Shares with respect to which this Option is vested at a given time pursuant to the Vesting Schedule set forth in the Grant Notice are "***Vested Shares***." Shares with respect to which this Option is not vested at a given time pursuant to the Vesting Schedule set forth in the Grant Notice are "***Unvested Shares***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Expiration</u>**. The Option shall expire on the Expiration Date set forth in the Grant Notice or earlier as provided in Section 3 below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination for Any Reason Except Death</u>**<u>,</u> **<u>Disability or Cause</u>**. Except as provided in subsection 3.2 in a case in which Optionee dies within three (3) months after Optionee is Terminated other than for Cause, if Optionee is Terminated for any reason (other than Optionee's death or Disability or for Cause), then (a) on and after Optionee's Termination Date, this Option shall expire immediately with respect to any Shares that are Unvested Shares and may not be exercised with respect to any Shares that are Unvested Shares on Optionee's Termination Date and (b) this Option to the extent (and only to the extent) that it is exercisable with respect to Vested Shares on Optionee's Termination Date, may be exercised by Optionee no later than three (3) months after Optionee's Termination Date (but in no event may this Option be exercised after the Expiration Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination Because of Death or Disability</u>**. If Optionee is Terminated because of Optionee's death or Disability (or if Optionee dies within three (3) months of the date of Optionee's Termination for any reason other than for Cause), then (a) on and after Optionee's Termination Date, this Option shall expire immediately with respect to any Shares that are Unvested Shares and may not be exercised with respect to any Shares that are Unvested Shares on Optionee's Termination Date and (b) this Option, to the extent (and only to the extent) that it is exercisable with respect to Vested Shares on Optionee's Termination Date, may be exercised by Optionee (or Optionee's legal representative) no later than twelve (12) months after Optionee's Termination Date, but in no event later than the Expiration Date. Any exercise of this Option beyond (i) three (3) months after the date Optionee ceases to be an employee when Optionee's Termination is for any reason other than Optionee's death or disability, within the meaning of Section 22(e)(3) of the Code; or (ii) twelve (12) months after the date Optionee ceases to be an employee when the termination is for Optionee's disability, within the meaning of Section 22(e)(3) of the Code, is deemed to be an NQSO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination for Cause</u>**. If Optionee is Terminated for Cause, then Optionee may exercise this Option, but only with respect to any Shares that are Vested Shares on Optionee's Termination Date, and this Option shall expire on Optionee's Termination Date, or at such later time and on such conditions as may be affirmatively determined by the Committee. On and after Optionee's Termination Date, this Option shall expire immediately with respect to any Shares that are Unvested Shares and may not be exercised with respect to any Shares that are Unvested Shares on Optionee's Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>No Obligation to Employ</u>**. Nothing in the Plan or this Agreement shall confer on Optionee any right to continue in the employ of, or other relationship with, the Company or any Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate Optionee's employment or other relationship at any time, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;MANNER OF EXERCISE**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Option Exercise Notice and Agreement</u>**. To exercise this Option, Optionee (or in the case of exercise after Optionee's death or incapacity, Optionee's executor,

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administrator, heir or legatee, as the case may be) must provide an electronic notice or deliver to the Company an executed Stock Option Exercise Notice and Agreement in the form attached hereto as **<u>Annex A</u>**, or in such other form as may be approved by the Committee from time to time (the "***Exercise Agreement***") and payment for the shares being purchased in accordance with this Agreement. The Exercise Agreement shall set forth, among other things, (i) Optionee's election to exercise this Option, (ii) the number of Shares being purchased, (iii) any representations, warranties and agreements regarding Optionee's investment intent and access to information as may be required by the Company to comply with applicable securities laws in connection with any exercise of this Option and (iv) any other agreements required by the Company. If someone other than Optionee exercises this Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise this Option and such person shall be subject to all of the restrictions contained herein as if such person were Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Exercise</u>**. This Option may not be exercised unless such exercise is in compliance with all applicable federal and state securities laws, as they are in effect on the date of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment</u>**. The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares being purchased in cash (by check, Automated Clearing House ("***ACH***") or wire transfer), or where permitted by law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;by cancellation of indebtedness of the Company owed to Optionee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;by surrender of shares of the Company that are free and clear of all security interests, pledges, liens, claims or encumbrances and: (i) for which the Company has received "full payment of the purchase price" within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares) or (ii) that were obtained by Optionee in the public market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;by participating in a formal cashless exercise program implemented by the Committee in connection with the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;provided that a public market for the Common Stock exists, subject to compliance with applicable law, by exercising as set forth below, through a "same day sale" commitment from Optionee and a broker-dealer whereby Optionee irrevocably elects to exercise this Option and to sell a portion of the Shares so purchased sufficient to pay the total Exercise Price, and whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;by any combination of the foregoing or any other method of payment approved by the Committee that constitutes legal consideration for the issuance of Shares.

For avoidance of uncertainty: ACH transfers that have been successfully received by the Company into its bank account designated via welcome@carta.com for receipt of such transfers

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shall be deemed to have been received for all purposes of this Option as of the date on which such transfer were initiated from the Optionee's account and made irrevocable by Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Withholding</u>**. Prior to the issuance of the Shares upon exercise of the Option, Optionee must pay or provide for any applicable federal, state and local withholding obligations of the Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon exercise of the Option by requesting that the Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; or to arrange a mandatory "sell to cover" on Participant's behalf (without further authorization); but in no event will the Company withhold Shares or "sell to cover" if such withholding would result in adverse accounting consequences to the Company. In case of stock withholding or a sell to cover, the Company shall issue the net number of Shares to Optionee by deducting the Shares retained from the Shares issuable upon exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuance of Shares</u>**. Provided that the Exercise Agreement and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares issuable upon a valid exercise of this Option registered in the name of Optionee, Optionee's authorized assignee, or Optionee's legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;COMPLIANCE WITH LAWS AND REGULATIONS**. The Plan and this Agreement are intended to comply with Section 25102(o) and Rule 701. Any provision of this Agreement that is inconsistent with Section 25102(o) or Rule 701 shall, without further act or amendment by the Company or the Committee, be reformed to comply with the requirements of Section 25102(o) and/or Rule 701. The exercise of this Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Optionee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Common Stock may be listed at the time of such issuance or transfer. Optionee understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;NONTRANSFERABILITY OF OPTION**. This Option may not be transferred in any manner other than by will or by the laws of descent and distribution, and, with respect to NQSOs, by instrument to a testamentary trust in which the options are to be passed to beneficiaries upon the death of the trustor (settlor) or a revocable trust, or by gift to "immediate family" as that term is defined in 17 C.F.R. 240.16a-1(e), and may be exercised during the lifetime of Optionee only by Optionee or in the event of Optionee's incapacity, by Optionee's legal representative. The terms of this Option shall be binding upon the executors, administrators, successors and assigns of Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;COMPANY**'**S REPURCHASE OPTION FOR UNVESTED SHARES**. If Optionee is Terminated for any reason, or no reason, including without limitation, Optionee's death, Disability, voluntary resignation or termination by the Company with or without Cause and Optionee has acquired Unvested Shares by exercising this Option, then the Company and/or

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its assignee(s) shall have the option to repurchase all or a portion of Optionee's Unvested Shares (as defined in Section 2.2 of this Agreement) as of the Termination Date on the terms and conditions set forth in this Section 7 (the "***Repurchase Option***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination and Termination Date</u>**. In case of any dispute as to whether Optionee is Terminated, the Committee shall have discretion to determine whether Optionee has been Terminated and the effective date of such Termination (the "***Termination Date***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Repurchase Option</u>**. Subject to the foregoing provisions of this Section, at any time within ninety (90) days after Optionee's Termination Date, the Company and/or its assignee(s), may elect to repurchase any or all of Optionee's Unvested Shares by giving Optionee written notice of exercise of the Repurchase Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Calculation of Repurchase Price for Unvested Shares</u>**. The Company or its assignee shall have the option to repurchase from Optionee (or from Optionee's personal representative as the case may be) the Unvested Shares at Optionee's Exercise Price, as such may be proportionately adjusted for any stock split or similar change in the capital structure of the Company as set forth in Section 2.2 of the Plan (the "***Repurchase Price***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Repurchase Price</u>**. The Repurchase Price shall be payable, at the option of the Company or its assignee, by check or by cancellation of all or a portion of any outstanding <u>indebtedness</u> owed by Optionee to the Company and/or such assignee, or by any combination thereof. The Repurchase Price shall be paid without interest within the term of the Repurchase Option as described in Section 7.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of Termination Unaffected</u>**. Nothing in this Agreement shall be construed to limit or <u>otherwise</u> affect in any manner whatsoever the right or power of the Company (or any Parent or Subsidiary of the Company) to terminate Optionee's employment or other relationship with Company (or any Parent or Subsidiary of the Company) at any time, for any reason or no reason, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;RESTRICTIONS ON TRANSFER**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Disposition of Shares</u>**. Optionee hereby agrees that Optionee shall make no disposition of any of the Shares (other than as permitted by this Agreement) unless and until:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Optionee shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Optionee shall have complied with all requirements of this Agreement applicable to the disposition of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Optionee shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed disposition does not require registration of the Shares under the Securities Act or under any

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applicable state securities laws or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption from registration available under the Securities Act (including Rule 144) or applicable state securities laws have been taken; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Optionee shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not result in the contravention of any transfer restrictions applicable to the Shares pursuant to the provisions of the regulations promulgated under Section 25102(o), Rule 701 or under any other applicable securities laws or adversely affect the Company's ability to rely on the exemption(s) from registration under the Securities Act or under any other applicable securities laws for the grant of the Option, the issuance of Shares thereunder or any other issuance of securities under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restriction on Transfer</u>**. Optionee shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Shares which are subject to the Company's Repurchase Option or the Right of First Refusal described below, except as permitted by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferee Obligations</u>**. Each person (other than the Company) to whom the Shares are transferred by means of one of the permitted transfers specified in this Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Agreement and that the transferred Shares are subject to (i) both the Company's Repurchase Option and the Company's Right of First Refusal granted hereunder and (ii) the market stand-off provisions of Section 9 below, to the same extent such Shares would be so subject if retained by Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;MARKET STANDOFF AGREEMENT**. Optionee agrees that, subject to any early release provisions that apply pro rata to stockholders of the Company according to their holdings of Common Stock (determined on an as-converted into Common Stock basis), Optionee will not, for a period of up to one hundred eighty (180) days (plus up to an additional thirty five (35) days to the extent reasonably requested by the Company or such underwriter(s) to accommodate regulatory restrictions on the publication or other distribution of research reports or earnings releases by the Company, including NASD and NYSE rules) following the effective date of the registration statement filed with the SEC relating to the initial underwritten sale of Common Stock of the Company to the public under the Securities Act (the "***IPO***"), directly or indirectly sell, offer to sell, grant any option for the sale of, or otherwise dispose of any Common Stock or securities convertible into Common Stock, <u>except</u> <u>for</u>: (i) transfers of Shares permitted under Section 10.6 hereof so long as such transferee furnishes to the Company and the managing underwriter their written consent to be bound by this Section 9 as a condition precedent to such transfer; and (ii) sales of any securities to be included in the registration statement for the IPO. For the avoidance of doubt, the provisions of this Section shall only apply to the IPO. The restricted period shall in any event terminate two (2) years after the closing date of the IPO. In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the Shares subject to this Section and to impose stop

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transfer instructions with respect to the Shares until the end of such period. Optionee further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing restrictions on transfer. For the avoidance of doubt, the foregoing provisions of this Section shall not apply to any registration of securities of the Company (a) under an employee benefit plan or (b) in a merger, consolidation, business combination or similar transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.&nbsp;&nbsp;&nbsp;&nbsp;COMPANY**'**S RIGHT OF FIRST REFUSAL**. Unvested Shares may not be sold or otherwise transferred, or pledged by Optionee or made subject to a security interest, pledge or other lien without the Company's prior written consent, which may be withheld in the Company's sole and absolute discretion. Before any Vested Shares held by Optionee or any transferee of such Vested Shares (either sometimes referred to herein as the "***Holder***") may be sold or otherwise transferred (including, without limitation, a transfer by gift or operation of law), the Company and/or its assignee(s) will have a right of first refusal to purchase the Vested Shares to be sold or transferred (the "***Offered Shares***") on the terms and conditions set forth in this Section (the "***Right of First Refusal***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Proposed Transfer</u>**. The Holder of the Offered Shares will deliver to the Company a written notice (the "***Notice***") stating: (i) the Holder's bona fide intention to sell or otherwise transfer the Offered Shares; (ii) the name and address of each proposed purchaser or other transferee (the "***Proposed Transferee***"); (iii) the number of Offered Shares to be transferred to each Proposed Transferee; (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Offered Shares (the "***Offered Price***"); and (v) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to the Company's Right of First Refusal at the Offered Price as provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Right of First Refusal</u>**. At any time within thirty (30) days after the date of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all) the Offered Shares proposed to be transferred to any one or more of the Proposed Transferees named in the Notice, at the purchase price, determined as specified below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase Price</u>**. The purchase price for the Offered Shares purchased under this Section will be the Offered Price, *<u>provided</u>* that if the Offered Price consists of no legal consideration (as, for example, in the case of a transfer by gift) then the purchase price will be the fair market value of the Offered Shares as determined in good faith by the Committee. If the Offered Price includes consideration other than cash, then the value of the non-cash consideration, as determined in good faith by the Committee, will conclusively be deemed to be the cash equivalent value of such non-cash consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment</u>**. Payment of the purchase price for the Offered Shares will be payable, at the option of the Company and/or its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding purchase money indebtedness owed by the Holder to the Company (or to such assignee, in the case of a purchase of Offered Shares by such assignee) or by any combination thereof. The purchase price will be paid without interest within

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sixty (60) days after the Company's receipt of the Notice, or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Holder</u>**<u>'</u>**<u>s Right to Transfer</u>**. If all of the Offered Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Offered Shares to each Proposed Transferee at the Offered Price or at a higher price, *<u>provided</u>* that (i) such sale or other transfer is consummated within ninety (90) days after the date of the Notice, (ii) any such sale or other transfer is effected in compliance with all applicable securities laws, and (iii) each Proposed Transferee agrees in writing that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee. If the Offered Shares described in the Notice are not transferred to each Proposed Transferee within such ninety (90) day period, then a new Notice must be given to the Company pursuant to which the Company will again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exempt Transfers</u>**. Notwithstanding anything to the contrary in this Section, the following transfers of Vested Shares will be exempt from the Right of First Refusal: (i) the transfer of any or all of the Vested Shares during Optionee's lifetime by gift or on Optionee's death by will or intestacy to any member(s) of Optionee's "Immediate Family" (as defined below) or to a trust for the benefit of Optionee and/or member(s) of Optionee's Immediate Family, *<u>provided</u>* that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Vested Shares in the hands of such transferee or other recipient; (ii) any transfer of Vested Shares made pursuant to a statutory merger, statutory consolidation of the Company with or into another corporation or corporations or a conversion of the Company into another form of legal entity (except that the Right of First Refusal will continue to apply thereafter to such Vested Shares, in which case the surviving corporation of such merger or consolidation or the resulting entity of such conversion shall succeed to the rights of the Company under this Section unless the agreement of merger or consolidation or conversion expressly otherwise provides); or (iii) any transfer of Vested Shares pursuant to the winding up and dissolution of the Company. As used herein, the term "***Immediate Family***" will mean Optionee's spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child, grandchild or adopted grandchild of Optionee or Optionee's spouse, or the spouse of any of the above or Spousal Equivalent, as defined herein. As used herein, a person is deemed to be a "***Spousal Equivalent***" provided the following circumstances are true: (i) irrespective of whether or not Optionee and the Spousal Equivalent are the same sex, they are the sole spousal equivalent of the other for the last twelve (12) months, (ii) they intend to remain so indefinitely, (iii) neither are married to anyone else, (iv) both are at least 18 years of age and mentally competent to consent to contract, (v) they are not related by blood to a degree of closeness that which would prohibit legal marriage in the state in which they legally reside, (vi) they are jointly responsible for each other's common welfare and financial obligations, and (vii) they reside together in the same residence for the last twelve (12) months and intend to do so indefinitely.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Right of First Refusal</u>**. The Right of First Refusal will terminate as to all Shares: (i) on the effective date of the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC under the Securities Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit plan); (ii) on any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving corporation or any direct or indirect parent corporation thereof is registered under the Exchange Act; or (iii) on any transfer or conversion of Shares made pursuant to a statutory conversion of the Company into another form of legal entity if the common equity (or comparable equity security) of entity resulting from such conversion is registered under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Encumbrances on Vested Shares</u>**. Optionee may grant a lien or security interest in, or pledge, hypothecate or encumber Vested Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or other encumbrance is made, agrees in a writing satisfactory to the Company that: (i) such lien, security interest, pledge, hypothecation or encumbrance will not adversely affect or impair the Right of First Refusal or the rights of the Company and/or its assignee(s) with respect thereto and will not apply to such Vested Shares after they are acquired by the Company and/or its assignees under this Section; and (ii) the provisions of this Agreement will continue to apply to such Vested Shares in the hands of such party and any transferee of such party. Optionee may not grant a lien or security interest in, or pledge, hypothecate or encumber, any Unvested Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.&nbsp;&nbsp;&nbsp;&nbsp;RIGHTS AS A STOCKHOLDER**. Optionee shall not have any of the rights of a stockholder with respect to any Shares unless and until such Shares are issued to Optionee. Subject to the terms and conditions of this Agreement, Optionee will have all of the rights of a stockholder of the Company with respect to the Shares from and after the date that Shares are issued to Optionee pursuant to, and in accordance with, the terms of the Exercise Agreement until such time as Optionee disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Repurchase Option or the Right of First Refusal. Upon an exercise of the Repurchase Option or the Right of First Refusal, Optionee will have no further rights as a holder of the Shares so purchased upon such exercise, other than the right to receive payment for the Shares so purchased in accordance with the provisions of this Agreement, and Optionee will promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company for transfer or cancellation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.&nbsp;&nbsp;&nbsp;&nbsp;ESCROW**. As security for Optionee's faithful performance of this Agreement, Optionee agrees, immediately upon receipt of the stock certificate(s) evidencing the Shares, to deliver such certificate(s) to the Secretary of the Company or other designee of the Company (the "***Escrow Holder***"), who is hereby appointed to hold such certificate(s) and to take all such actions and to effectuate all such transfers and/or releases of such Shares as are in accordance with the terms of this Agreement. Optionee and the Company agree that Escrow Holder will not be liable to any party to this Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of

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Escrow Holder under this Agreement. Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by this Agreement and will not be liable for any act or omission taken by Escrow Holder in good faith reliance on such documents, the advice of counsel or a court order. The Shares will be released from escrow upon termination of both the Repurchase Option and the Right of First Refusal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.&nbsp;&nbsp;&nbsp;&nbsp;RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Legends</u>**. Optionee understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or U.S. Federal securities laws, the Company's Certificate of Incorporation or Bylaws, any other agreement between Optionee and the Company, or any agreement between Optionee and any third party (and any other legend(s) that the Company may become obligated to place on the stock certificate(s) evidencing the Shares under the terms of any agreement to which the Company is or may become bound or obligated):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "***SECURITIES ACT***"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON RESALE AND TRANSFER, INCLUDING THE REPURCHASE OPTION AND RIGHT OF FIRST REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH SALE AND TRANSFER RESTRICTIONS, INCLUDING THE REPURCHASE OPTION AND RIGHT OF FIRST REFUSAL, ARE BINDING ON TRANSFEREES OF THESE SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY

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NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF CERTAIN PUBLIC OFFERINGS OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Stop-Transfer Instructions</u>**. Optionee agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate "stop-transfer" instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Refusal to Transfer</u>**. The Company will not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares, or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares have been so transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN TAX CONSEQUENCES**. Set forth below is a brief summary as of the Effective Date of the Plan of some of the federal tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of ISO</u>**. If the Option qualifies as an ISO, there will be no regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference item for federal alternative minimum tax purposes and may subject Optionee to the alternative minimum tax in the year of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Nonqualified Stock Option</u>**. If the Option does not qualify as an ISO, there may be a regular federal income tax liability upon the exercise of the Option. Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Optionee is a current or former employee of the Company, the Company may be required to withhold from Optionee's compensation or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Disposition of Shares</u>**. The following tax consequences may apply upon disposition of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Incentive Stock Options</u>. If the Shares are held for more than twelve (12) months after the date of purchase of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated as long term capital gain for federal income tax purposes. If Vested Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any gain realized on such disposition will be treated as compensation

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income (taxable at ordinary income rates in the year of the disposition) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. To the extent the Shares were exercised prior to vesting coincident with the filing of an 83(b) Election, the amount taxed because of a disqualifying disposition will be based upon the excess, if any, of the fair market value on the date of <u>vesting</u> over the exercise price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Nonqualified Stock Options</u>. If the Shares are held for more than twelve (12) months after the date of purchase of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 83</u>**<u>(</u>**<u>b</u>**<u>)</u> **<u>Election for Unvested Shares</u>**. With respect to Unvested Shares, which are subject to the Repurchase Option, unless an election is filed by Optionee with the Internal Revenue Service (and, if necessary, the proper state taxing authorities), <u>within thirty (30) days</u> of the purchase of the Unvested Shares, electing pursuant to Section 83(b) of the Code (and similar state tax provisions, if applicable) to be taxed currently on any difference between the Exercise Price of the Unvested Shares and their Fair Market Value on the date of purchase, there may be a recognition of taxable income (including, where applicable, alternative minimum taxable income) to Optionee, measured by the excess, if any, of the Fair Market Value of the Unvested Shares at the time they cease to be Unvested Shares, over the Exercise Price of the Unvested Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;GENERAL PROVISIONS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Interpretation</u>**. Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>**. The Plan, the Grant Notice and the Exercise Agreement are each incorporated herein by reference. This Agreement, the Grant Notice, the Plan and the Exercise Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all prior undertakings and agreements with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;NOTICES**. Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following: (i) at the time of personal delivery, if delivery is in person; (ii) at the time an electronic confirmation of receipt is received, if delivery is by email; (iii) at the time of transmission by facsimile, addressed to the other party at its facsimile number specified herein (or hereafter modified by subsequent notice to the parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; (iv) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (v) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries. Any notice

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for delivery outside the United States will be sent by email, facsimile or by express courier. Any notice not delivered personally or by email will be sent with postage and/or other charges prepaid and properly addressed to Optionee at the last known address or facsimile number on the books of the Company, or at such other address or facsimile number as such other party may designate by one of the indicated means of notice herein to the other parties hereto or, in the case of the Company, to it at its principal place of business. Notices to the Company will be marked "Attention: Chief Financial Officer." Notices by facsimile shall be machine verified as received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;SUCCESSORS AND ASSIGNS**. The Company may assign any of its rights under this Agreement including its rights to purchase Shares under both the Right of First Refusal and Repurchase Option. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Optionee and Optionee's heirs, executors, administrators, legal representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.&nbsp;&nbsp;&nbsp;&nbsp;GOVERNING LAW**. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within California. If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.&nbsp;&nbsp;&nbsp;&nbsp;FURTHER ASSURANCES**. The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.&nbsp;&nbsp;&nbsp;&nbsp;TITLES AND HEADINGS**. The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to "sections" and "exhibits" will mean "sections" and "exhibits" to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.&nbsp;&nbsp;&nbsp;&nbsp;COUNTERPARTS**. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.&nbsp;&nbsp;&nbsp;&nbsp;SEVERABILITY**. If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as

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made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

\* \* \* \* \*

**Attachments**:

<u>Annex A</u>: Form of Stock Option Exercise Notice and Agreement

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**ANNEX A**

**FORM OF STOCK OPTION EXERCISE NOTICE AND AGREEMENT**

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<u>EARLY EXERCISE FORM</u>

**<u>STOCK OPTION EXERCISE NOTICE AND AGREEMENT</u>**

**CEREBRAS SYSTEMS INC.**

**2016 EQUITY INCENTIVE PLAN**

**\*<u>NOTE</u>: *You <u>must</u> sign this Notice on Page 3 before submitting it to Cerebras Systems Inc. (the "Company").***

**OPTIONEE INFORMATION:** *Please provide the following information about yourself ("****Optionee****")*:

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| | |
|:---|:---|
| Name: | Social Security Number: |
| Address: | Employee Number: |
| | Email Address: |

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**OPTION INFORMATION:** *Please provide this information on the option being exercised* (*the* "***Option***"):

Grant No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ]

Date of Grant: [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Type of Stock Option: [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ]

Option Price per Share: $[<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> ]

Total number of shares of Common Stock of the Company

subject to the Option:

**EXERCISE INFORMATION:**

Number of shares of Common Stock of the Company for which the Option is now being exercised [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ]. (These shares are referred to below as the "***Purchased Shares***.")

Total Exercise Price Being Paid for the Purchased Shares: $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Form of payment enclosed ***[check all that apply]***:

☐Check for $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> , payable to "***Cerebras Systems Inc.***"

☐Certificate(s) for <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> shares of Common Stock of the Company. These shares will be valued as of the date this notice is received by the Company. ***[Requires Company consent.]***

☐By Automated Clearing House ("***ACH***") transfer in the amount of $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

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<u>EARLY EXERCISE FORM</u>

**AGREEMENTS, REPRESENTATIONS AND ACKNOWLEDGMENTS OF OPTIONEE:&nbsp;&nbsp;&nbsp;&nbsp;**By signing this Stock Option Exercise Notice and Agreement, Optionee hereby agrees with, and represents to, the Company as follows:

**1. Terms Governing**. I acknowledge and agree with the Company that I am acquiring the Purchased Shares by exercise of this Option subject to all other terms and conditions of the Notice of Stock Option Grant and the Stock Option Agreement that govern the Option, including without limitation the terms of the Company's 2016 Equity Incentive Plan, as it may be amended (the "***Plan***").

**2. Investment Intent; Securities Law Restrictions**. I represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment for my account only, and not with a view to, or for resale in connection with, any "distribution" of the Purchased Shares within the meaning of the Securities Act of 1933, as amended (the "***Securities Act***"). I understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption from such registration requirement and that the Purchased Shares must be held by me indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that registration is not required. I acknowledge that the Company is under no obligation to register the Purchased Shares under the Securities Act or under any other securities law.

**3. Restrictions on Transfer: Rule 144**. I will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act, the Securities Exchange Act of 1934, or the rules promulgated thereunder (including Rule 144 under the Securities Act described below "Rule 144")) or of any other applicable securities laws. I am aware of Rule 144, which permits limited public resales of securities acquired in a non-public offering, subject to satisfaction of certain conditions, which include (without limitation) that: (a) certain current public information about the Company is available; (b) the resale occurs only after the holding period required by Rule 144 has been met; (c) the sale occurs through an unsolicited "broker's transaction;" and (d) the amount of securities being sold during any three-month period does not exceed specified limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied and that the Company has no plans to satisfy these conditions in the foreseeable future.

**4. Access to Information; Understanding of Risk in Investment**. I acknowledge that I have received and had access to such information as I consider necessary or appropriate for deciding whether to invest in the Purchased Shares and that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares. I am aware that my investment in the Company is a speculative investment that has limited liquidity and is subject to the risk of complete loss. I am able, without impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares.

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<u>EARLY EXERCISE FORM</u>

**5. Rights of First Refusal; Repurchase Options; Market Stand-off.** I acknowledge that the Purchased Shares remain subject to the Company's Right of First Refusal, the Company's Repurchase Option (with respect to unvested Purchased Shares) and the market stand-off covenants (sometimes referred to as the "lock-up"), all in accordance with the applicable Notice of Stock Option Grant and the Stock Option Agreement that govern the Option

**6. Form of Ownership.** I acknowledge that the Company has encouraged me to consult my own adviser to determine the form of ownership of the Purchased Shares that is appropriate for me. In the event that I choose to transfer my Purchased Shares to a trust, I agree to sign a Stock Transfer Agreement. In the event that I choose to transfer my Purchased Shares to a trust that is not an eligible revocable trust, I also acknowledge that the transfer will be treated as a "disposition" for tax purposes. As a result, the favorable ISO tax treatment will be unavailable and other unfavorable tax consequences may occur.

**7. Investigation of Tax Consequences**. I acknowledge that the Company has encouraged me to consult my own adviser to determine the tax consequences of acquiring the Purchased Shares at this time.

**8. Other Tax Matters.** I agree that the Company does not have a duty to design or administer the Plan or its other compensation programs in a manner that minimizes my tax liabilities. I will not make any claim against the Company or its Board, officers or employees related to tax liabilities arising from my options or my other compensation. In particular, I acknowledge that my options (including the Option) are exempt from Section 409A of the Internal Revenue Code only if the exercise price per share is at least equal to the fair market value per share of the Common Stock at the time the option was granted by the Board. Since shares of the Common Stock are not traded on an established securities market, the determination of their fair market value was made by the Board and/or by an independent valuation firm retained by the Company. I acknowledge that there is no guarantee in either case that the Internal Revenue Service will agree with the valuation, and I will not make any claim against the Company or its Board of Directors, officers or employees in the event that the Internal Revenue Service asserts that the valuation was too low.

**9. Spouse Consent.** I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing.

**10. Tax Withholding.** As a condition of exercising this Option, I agree to make adequate provision for foreign, federal, state or other tax withholding obligations, if any, which arise upon the grant, vesting or exercise of this Option, or disposition of the Purchased Shares, whether by withholding, direct payment to the Company, or otherwise.

**11. Reg S Legend.** I understand and agree that, if my country of residence is other than the United States, the Company may add the legend set forth below or similar legends to the certificates evidencing the Purchased Shares.

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<u>EARLY EXERCISE FORM</u>

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, AND THE COMPANY DOES NOT INTEND TO REGISTER THEM.

PRIOR TO A DATE THAT IS ONE YEAR STARTING FROM THE DATE OF SALE OF THE STOCK, THE SHARES MAY NOT BE OFFERED OR SOLD (INCLUDING OPENING A SHORT POSITION IN SUCH SECURITIES) IN THE UNITED STATES OR TO U.S. PERSONS AS DEFINED BY RULE 902(K) ADOPTED UNDER THE ACT, OTHER THAN TO DISTRIBUTORS, UNLESS THE SHARES ARE REGISTERED UNDER THE ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT IS AVAILABLE. HOLDERS OF SHARES PRIOR TO ONE YEAR STARTING FROM THE DATE OF SALE OF THE STOCK MAY RESELL SUCH SECURITIES ONLY PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT OR OTHERWISE IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S OF THE ACT, OR IN TRANSACTIONS EFFECTED OUTSIDE OF THE UNITED STATES, PROVIDED THEY DO NOT SOLICIT (AND NO ONE ACTING ON THEIR BEHALF SOLICITS) PARTICIPANTS IN THE UNITED STATES OR OTHERWISE ENGAGE(S) IN SELLING EFFORTS IN THE UNITED STATES AND PROVIDED THAT HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

A HOLDER OF THE SECURITIES WHO IS A DISTRIBUTOR, DEALER, SUB-UNDERWRITER OR OTHER SECURITIES PROFESSIONAL, IN ADDITION, CANNOT, PRIOR TO ONE YEAR STARTING FROM THE DATE OF SALE OF THE STOCK, RESELL THE SECURITIES TO A U.S. PERSON AS DEFINED BY RULE 902(K) OF REGULATION S UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT OR AN EXEMPTION FROM UNDER THE ACT IS AVAILABLE.

**<u>IMPORTANT NOTE</u>:** UNVESTED PURCHASED SHARES ARE SUBJECT TO REPURCHASE BY THE COMPANY. PLEASE CONSULT WITH YOUR TAX ADVISER CONCERNING THE ADVISABILITY OF FILING AN 83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE WHICH MUST BE FILED WITHIN THIRTY (30) DAYS AFTER THE PURCHASE OF SHARES TO BE EFFECTIVE.

**A form of Election under Section 83(b) is attached hereto as <u>Exhibit 1</u> for reference. Unless an 83(b) election is timely filed with the Internal Revenue Service (and, if necessary, the proper state taxing authorities), electing pursuant to Section 83(b) of the Internal Revenue Code (and similar state tax provisions, if applicable) to be taxed currently on any difference between the purchase price of the Unvested Purchased Shares and their fair market value on the date of purchase, there may be a recognition of taxable income (including, where applicable, alternative minimum taxable income) to you, measured by the excess, if any, of the Fair Market Value of the Unvested Purchased Shares at the time they cease to be Unvested Purchased Shares, over the purchase price of the Unvested Purchased Shares.**

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<u>EARLY EXERCISE FORM</u>

The undersigned hereby executes and delivers this Stock Option Exercise Notice and Agreement and agrees to be bound by its terms

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| | |
|:---|:---|
| **SIGNATURE:** | **DATE:** |
| Optionee's Name: | |

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**Attachments:**

**Exhibit 1** – Section 83(b) Election Form

**[Signature Page to Stock Option Exercise Notice and Agreement]**

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<u>EARLY EXERCISE FORM</u>

**EXHIBIT 1**

**<u>SECTION 83(b) ELECTION</u>**

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<u>EARLY EXERCISE FORM</u>

**ELECTION UNDER SECTION 83(b) OF THE**

**INTERNAL REVENUE CODE**

The undersigned Taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include the excess, if any, of the fair market value of the property described below at the time of transfer over the amount paid for such property, as compensation for services in the calculation of: (1) regular gross income; (2) alternative minimum taxable income; or (3) disqualifying disposition gross income, as the case may be.

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| | |
|:---|:---|
| 1. | TAXPAYER'S NAME: |
| | TAXPAYER'S ADDRESS: |
| | SOCIAL SECURITY NUMBER: |

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2. The property with respect to which the election is made is described as follows: shares of Common Stock, par value $0.00001 per share, of Cerebras Systems Inc., a Delaware corporation (the "***Company***"), which were transferred upon exercise of an option by the Company, which is Taxpayer's employer or the corporation for whom the Taxpayer performs services.

3. The date on which the shares were transferred was pursuant to the exercise of the option was <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> and this election is made for calendar year <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> .

4. The shares received upon exercise of the option are subject to the following restrictions: The Company may repurchase all or a portion of the shares at Taxpayer's original purchase price per share under certain conditions at the time of Taxpayer's termination of employment or services.

5. The fair market value of the shares (without regard to restrictions other than restrictions which by their terms will never lapse) was $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> per share x <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> shares = $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> at the time of exercise of the option.

6. The amount paid for such shares upon exercise of the option was $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> per share x <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> shares = $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.

7. The Taxpayer has submitted a copy of this statement to the Company.

8. The amount to include in gross income is $<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> . [The result of the amount reported in Item 5 minus the amount reported in Item 6.]

*THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE ("****IRS****"), AT THE OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, <u>WITHIN</u>* 

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<u>EARLY EXERCISE FORM</u>

*<u>30</u> <u>DAYS</u> AFTER THE DATE OF TRANSFER OF THE SHARES, AND MUST ALSO BE FILED WITH THE TAXPAYER'S INCOME TAX RETURNS FOR THE CALENDAR YEAR. THE ELECTION CANNOT BE REVOKED WITHOUT THE CONSENT OF THE IRS.*

Dated:  <br> Taxpayer's Signature

## Exhibit 10.2

**Exhibit 10.2(c)**

**<u>NOTICE OF RESTRICTED STOCK UNIT AWARD</u>**

**CEREBRAS SYSTEMS INC.**

**2016 EQUITY INCENTIVE PLAN**

Unless otherwise defined herein, capitalized terms in this Notice of Restricted Stock Unit Award ("**Notice of Grant**") shall have the meanings ascribed in the Company's 2016 Equity Incentive Plan, as amended (the "**Plan**").

The Participant named below has been granted an award of restricted stock units ("**RSUs**"), subject to the terms and conditions of the Plan and the Restricted Stock Unit Agreement, attached as <u>Annex A</u> (the "**RSU Agreement**") under the Plan, as follows:

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| | |
|:---|:---|
| **Participant Name**: | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Address:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Total Number of RSUs:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **RSU Grant Date:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Vesting Commencement Date:** | [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |
| **Expiration Date**: The earlier to occur of: (a) the date on which settlement of all vested RSUs granted hereunder occurs and (b) the seventh year following the Grant Date. | **Expiration Date**: The earlier to occur of: (a) the date on which settlement of all vested RSUs granted hereunder occurs and (b) the seventh year following the Grant Date. |
| **Vesting**: [<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> ] |  |

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**Settlement**: On each Vesting Date, Participant shall become entitled to receive one share of Common Stock with respect to each RSU that vests on such Vesting Date. The shares to which Participant becomes entitled will be issued to Participant on such date determined by the Company that shall in no event be later than March 15 of the calendar year following the calendar year during which such shares vested. Settlement of vested RSUs shall occur whether or not Participant is in Continuous Service at the time of settlement. No fractional RSUs or rights for fractional Shares shall be created pursuant to this Notice of Grant.

Participant understands that Participant's employment or consulting relationship with the Company is for an unspecified duration, can be terminated at any time (i. e. , is "at -will") and that nothing in this Notice of Grant, the RSU Agreement or the Plan changes the at -will nature of that relationship. Participant acknowledges that the vesting of the RSUs pursuant to this Notice of Grant is conditioned on the occurrence of an Initial Vesting Event. Participant also understands that this Notice of Grant is subject to the terms and conditions of both the RSU

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Agreement and the Plan, each of which are incorporated herein by reference. Participant has read both the RSU Agreement and the Plan.

By Participant's acceptance hereof (whether written, electronic or otherwise), Participant agrees, to the fullest extent permitted by law, that in lieu of receiving documents in paper format, Participant accepts the electronic delivery of any documents the Company, or any third party involved in administering the Plan which the Company may designate, may deliver in connection with this grant (including the Plan, the Notice of Grant, this RSU Agreement, any disclosures provided pursuant to Rule 701, account statements or other communications or information) whether via the Company's intranet or the internet site of another third party or via email, or other means of electronic delivery specified by the Company.

By Participant's and the Company's acceptance hereof (in each case, whether written, electronic or otherwise), Participant and the Company agree that this RSU is granted under and governed by the terms and conditions of the Plan, the Notice of Grant and the RSU Agreement.

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**ANNEX A**

**<u>RESTRICTED STOCK UNIT AGREEMENT</u>**

Participant has been granted RSUs subject to the terms, restrictions and conditions of the Company's 2016 Equity Incentive Plan, as amended (the "**Plan**"), the Notice of Restricted Stock Unit Award ("**Notice of Grant**") and this Restricted Stock Unit Agreement (this "**Agreement**"). Unless otherwise defined herein or in the Notice of Grant, the terms defined in the Plan shall have the same defined meanings in this Agreement.

**1.<u>No Stockholder Rights</u>.** Until such time as Shares are issued in settlement of vested RSUs, Participant shall have no ownership of the Shares allocated to the RSUs and shall have no right to dividends or to vote such Shares. As a condition to the issuance of any Shares in settlement of vested RSUs, if requested by the Company, Participant agrees to enter into a joinder to be bound by any stockholders' agreement by and between the Company and its stockholders in force from time to time.

**2.<u>Dividend Equivalents</u>.** Dividend equivalents, if any, shall not be credited to Participant in respect of Participant's RSUs, except as otherwise permitted by the Committee.

**3.<u>No Transfer</u>.** The RSUs and any interest therein shall not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, other than by will or by the laws of descent and distribution. Any transferee who receives an interest in the RSU or the underlying Shares upon the death of Participant shall acknowledge in writing that the RSU shall continue to be subject to the restrictions set forth in this Section 3.

**4.<u>Termination</u>.** The RSUs shall terminate on the Expiration Date or earlier as provided in this Section 4. If Participant's Continuous Service with the Company terminates for any reason, all RSUs for which the Service-Based Requirement has not been satisfied pursuant to the terms of the Notice of Grant and this Agreement shall be forfeited to the Company forthwith, and all rights of Participant to such RSUs shall immediately terminate. In case of any dispute as to whether Participant's Continuous Service has terminated, the Committee shall have sole discretion to determine whether Continuous Service has terminated and the effective date of such termination of Continuous Service.

**5.<u>Acknowledgement</u>.** The Company and Participant agree that the RSUs are granted under and governed by the Notice of Grant, this Agreement, and the provisions of the Plan (incorporated herein by reference). Participant (i) acknowledges receipt of a copy of each of the foregoing documents, (ii) represents that Participant has carefully read and is familiar with their provisions and (iii) hereby accepts the RSUs subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice of Grant.

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applicable securities laws. The restrictions on transfer also include a prohibition on any short position, any "put equivalent position" or any "call equivalent position" by the RSU holder with respect to the RSU itself as well as any shares issuable upon settlement of the RSU prior to the settlement thereof until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**").

**7.<u>Restrictions Binding on Transferees</u>.** All transferees of Shares or any interest therein will receive and hold such shares or interest subject to the provisions of this Agreement, including the transfer restrictions of Sections 3 and 6, and the transferee shall acknowledge the restrictions in writing. Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied.

**8.<u>Withholding of Tax</u>.** When the RSUs are vested and/or settled, the fair market value of the Shares shall be treated as income subject to withholding by the Company for income and employment taxes if Participant is or was an employee of the Company. Prior to any relevant taxable or tax withholding event, as applicable, Participant shall pay or make adequate arrangements satisfactory to the Company to satisfy any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account and other tax-related items related to the Participant's participation in this Plan and legally applicable to the Participant (collectively, "**Tax-Related Obligations**"). In this regard, Participant authorizes the Company to withhold all applicable Tax-Related Obligations legally payable by Participant from Participant's wages or other cash compensation paid to Participant by the Company and/or a Parent or Subsidiary of the Company. With the Company's consent, these arrangements may also include, if permissible under local law, (i) withholding Shares that otherwise would be issued to Participant when Participant's RSUs are settled; (ii) having the Company withhold taxes from the proceeds of the sale of the Shares, through a voluntary sale or through a mandatory sale arranged by the Company (on Participant's behalf and Participant hereby authorizes such sales by this authorization); (iii) Participant's payment of a cash amount; or (iv) any other arrangement approved by the Company; all under such rules as may be established by the Committee and in compliance with the Company's insider trading policy and 10b5-1 trading plan policy, if applicable; <u>provided</u>, <u>however</u>, that, unless otherwise determined by the Company, the method of withholding shall be through a mandatory sale under (ii) above. Depending on the withholding method, the Company and/or a Parent or Subsidiary of the Company may withhold or account for Tax-Related Obligations by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates, in which case Participant may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Shares. In the case of withholding in Shares, the Company shall issue the net number of Shares to Participant by deducting the Shares retained for Tax-Related Obligations from the Shares issuable upon vesting. For tax purposes, Participant is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares is held back solely for the purpose of paying the Tax-Related Obligations.

**9.<u>Code Section 409A</u>.** For purposes of this Agreement, to the extent the RSUs constitute deferred compensation subject to Section 409A of the Code and the regulations thereunder ("**Section 409A**"), a termination of employment will be determined consistent with the rules

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relating to a "separation from service" as defined in Section 409A. Notwithstanding anything else provided herein, to the extent any payments provided under this Agreement in connection with Participant's termination of employment constitute deferred compensation subject to Section 409A, and Participant is deemed at the time of termination of employment to be a "specified employee" under Section 409A, then the payment shall not be made or commence until the earlier of (i) the expiration of the six-month period measured from Participant's separation from service from the Company or (ii) the date of Participant's death following a separation from service; <u>provided</u>, <u>however</u>, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Participant including, without limitation, the additional tax for which Participant would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral. The first payment thereof will include a catch-up payment covering the amount that would have otherwise been paid during the period between Participant's termination of employment and the first payment date but for the application of this provision, and the balance of the installments (if any) will be payable in accordance with their original schedule. The occurrence of the Initial Vesting Event prior to the Expiration Date is intended to be a "substantial risk of forfeiture," within the meaning of Section 409A, and the settlements related to Vesting Dates are each intended to be an exempt "short-term- deferral," within the meaning of Section 409A and the Company intends that its initial tax position on its tax return will be consistent with this intent absent a change in legal guidance or other circumstance. To the extent that any provision of this Agreement is ambiguous as to its application under Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A or, in the event no exemption from Section 409A is available, comply with Section 409A. To the extent any payment under this Agreement may be classified as a "short-term- deferral" within the meaning of Section 409A, such payment shall be deemed a short-term- deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to this section are intended to constitute separate payments for purposes of Section 1. 409A-2(b)(2) of the Treasury Regulations.

**10.<u>Tax Consequences</u>.** Participant acknowledges that there will be tax consequences upon vesting and/or settlement of the RSUs and/or disposition of the Shares, if any, received in connection therewith, and Participant should consult a tax adviser regarding Participant's tax obligations prior to the settlement or disposition.

**11.<u>Compliance with Laws and Regulations</u>.** The issuance of Shares will be subject to and conditioned upon compliance by the Company and Participant (including any written representations, warranties and agreements as the Committee may request of Participant for compliance with applicable laws) with all applicable foreign and US state and federal laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company's Common Stock may be listed or quoted at the time of the issuance or transfer. Participant may not be issued any Shares if the issuance would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company's legal counsel to be necessary to the lawful issuance

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and sale of any Shares shall relieve the Company of any liability in respect of the failure to issue or sell the shares.

**12.<u>Legend on Certificates</u>.** The certificates representing the Shares issued hereunder shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan, this Agreement or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares of the Company's Common Stock are listed and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

**13.<u>Successors and Assigns</u>.** The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon Participant and Participant's heirs, executors, administrators, legal representatives, successors and assigns.

**14.<u>Entire Agreement; Severability</u>.** The Plan and the Notice of Grant are incorporated herein by reference. The Plan, the Notice of Grant and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof (including, without limitation, any commitment to make any other form of equity award (such as stock options) that may have been set forth in any employment offer letter or other agreement between the parties), provided, that any agreement entered into between Participant and the Company or any plan, program or arrangement maintained by the Company that covers Participant, in each case, that provides for accelerated vesting, whether entered into or adopted before or after the date of this Agreement, shall be deemed incorporated into and made a part of this Agreement and shall control in the event of any conflict with this Agreement. If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

**15.<u>Market Standoff Agreement</u>.** Participant agrees that, subject to any early release provisions that apply pro rata to stockholders of the Company according to their holdings of Common Stock (determined on an as-converted into Common Stock basis), Participant will not, for a period of up to 180 days (plus up to an additional 35 days to the extent reasonably requested by the Company or the underwriter(s) managing any public offering of the Company's securities to accommodate regulatory restrictions on the publication or other distribution of research reports or earnings releases by the Company, including Nasdaq and New York Stock Exchange rules) following the effective date of the registration statement filed with the Securities and Exchange Commission relating to the IPO, directly or indirectly sell, offer to sell, grant any option for the sale of, or otherwise dispose of any Common Stock or securities convertible into Common Stock, except for sales of any securities to be included in the registration statement for the IPO. For the avoidance of doubt, the provisions of this Section shall only apply to the IPO. The restricted period shall in any event terminate two (2) years after the closing date of the IPO.

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In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the Shares subject to this Section and to impose stop transfer instructions with respect to the Shares until the end of such period. Participant further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing restrictions on transfer. For the avoidance of doubt, the foregoing provisions of this Section shall not apply to any registration of securities of the Company (a) under an employee benefit plan or (b) in a merger, consolidation, business combination or similar transaction.

**16.<u>No Rights as Employee, Director or Consultant</u>.** Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to terminate Participant's Continuous Service, for any reason, with or without cause.

**17.<u>Information to Participants</u>.** If the Company is relying on an exemption from registration under Section 12(h)-1 of the Exchange Act and such information is required to be provided by Section 12(h)-1, the Company shall provide the information described in Rules 701(e)(3), (4) and (5) of the Securities Act by a method allowed under Section 12(h)-1 of the Exchange Act in accordance with Section 12(h)-1 of the Exchange Act, *<u>provided</u>*, that Participant agrees to keep the information confidential.

**18.<u>Delivery of Documents and Notices</u>.** Any document relating to participating in the Plan and/or notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery or deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, with postage and fees prepaid, addressed to the other party at the e-mail address, if any, provided for Participant by the Company or at such other address as such party may designate in writing from time to time to the other party.

**19.<u>Choice of Law and Venue</u>.** This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, as such laws are applied to contracts entered into and performed in such State. For purposes of any action, lawsuit or other proceedings brought to enforce this Agreement, relating to it, or arising from it, the parties hereby submit to and consent to the sole and exclusive jurisdiction of the courts of San Francisco County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this grant is made and/or to be performed.

\* \* \* \* \* \* \* \* \* \*

## Exhibit 16.1

**Exhibit 16.1**

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|:---|:---|:---|
| ![bdologo.jpg](bdologo.jpg) | | |
| ![bdologo.jpg](bdologo.jpg) | Tel:&nbsp;&nbsp;&nbsp;&nbsp; 408-278-0220<br>Fax:&nbsp;&nbsp;&nbsp;&nbsp; 408-278-0230<br>**www.bdo.com** | 300 Park Avenue, Suite 900<br>San Jose, CA 95110 |

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December 22, 2025

Securities and Exchange Commission

100 F Street N.E.

Washington, D.C. 20549

We have read the statements contained under the caption "Change in Independent Accountant" in the Form S-1 to be filed by Cerebras Systems Inc. on December 22, 2025. We agree with the statements contained therein insofar as they relate to our firm.

Very truly yours,

/s/ BDO USA, P.C.

BDO USA refers to BDO USA, P.C., a Virginia professional corporation, also doing business in certain jurisdictions with an alternative identifying abbreviation, such as Corp. or P.S.C.

BDO USA, P.C. is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.