# EDGAR Filing Document

**Accession Number:** 0002007691
**File Stem:** 0001185185-26-002704
**Filing Date:** 2026-6
**Character Count:** 2929321
**Document Hash:** 656c88f318b32db0382c3e896a9b347c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001185185-26-002704.hdr.sgml**: 20260629

**ACCESSION NUMBER**: 0001185185-26-002704

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 52

**FILED AS OF DATE**: 20260629

**DATE AS OF CHANGE**: 20260629

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ionic Digital Inc.
- **CENTRAL INDEX KEY:** 0002007691
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 990565447
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1224

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-297125
- **FILM NUMBER:** 261136540

**BUSINESS ADDRESS:**
- **STREET 1:** 2332 GALIANO STREET
- **STREET 2:** 2ND FLOOR
- **CITY:** CORAL GABLES
- **STATE:** FL
- **ZIP:** 33134
- **BUSINESS PHONE:** 754-273-6593

**MAIL ADDRESS:**
- **STREET 1:** 2332 GALIANO STREET
- **STREET 2:** 2ND FLOOR
- **CITY:** CORAL GABLES
- **STATE:** FL
- **ZIP:** 33134

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Arbelco Inc
- **DATE OF NAME CHANGE:** 20240110

**As filed with the U.S. Securities and Exchange Commission on June 29, 2026**

**Registration No. 333-** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

**Ionic Digital Inc.** 

(Exact Name of Registrant as Specified in Its Charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **6199** | **99-0565447** |
| (State or Other Jurisdiction of<br> Incorporation or Organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**650 Massachusetts Avenue NW, 6th Floor<br> Washington, District of Columbia 20001**

**Tel.: (754) 273-6593** 

(Address, including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

**Andy Stewart**

**Chief Executive Officer**

**Ionic Digital Inc.** 

**650 Massachusetts Avenue NW, 6th Floor**

**Washington, District of Columbia 20001**

**Tel.: (754) 273-6593** 

(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)

***Copies to:***

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Daniel Nussen**<br> **White & Case LLP**<br> **555 South Flower Street, Suite 2700**<br> **Los Angeles, California 90071-2433**<br> **Tel.: (213) 620-7795** | &nbsp;&nbsp;**Andrew J. Ericksen**<br> **White & Case LLP**<br> **609 Main Street, Suite 2900**<br> **Houston, Texas 77002**<br> **Tel.: (713) 496-9688** | **Erika L. Weinberg**<br> **Gregory P. Rodgers**<br> **Benjamin J. Cohen**<br> **Brittany D. Ruiz**<br> **Sandy Kugbei**<br> **Latham & Watkins LLP**<br> **1271 Avenue of the Americas**<br> **New York, New York 10020**<br> **Tel.: (212) 906-1200**  |

---

**Approximate date of commencement of proposed sale to the public**: From time to time 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, 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.

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| | | | |
|:---|:---|:---|:---|
| 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, as amended, 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.** 

**The information in this preliminary prospectus is not complete and may be changed. The securities may not be sold 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 is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.** 

**SUBJECT TO COMPLETION, DATED , 2026**

**PRELIMINARY PROSPECTUS**![](image_001.jpg)

**Ionic Digital Inc.** 

**Shares of Class A Common Stock** 

This prospectus relates to the registration of the resale by the selling stockholders named in this prospectus, who we refer to as the Registered Stockholders, of up to 10,800,164 shares of our Class A common stock, par value $0.00001 per share, pursuant to a direct listing on the Nasdaq Global Select Market. Prior to the listing of our shares of Class A common stock, there has been no public market for our shares of Class A common stock and there has been a limited history of sales of shares of our Class A common stock in private transactions. The purchase price of our shares of Series A Preferred Stock and Warrants in the Private Placement (each as defined herein), the only historical private transaction relating to our securities, may have little or no relation to the opening public price of shares of our Class A common stock on Nasdaq or the subsequent trading price of shares of our Class A common stock on Nasdaq. See "Sale Price History of Our Securities" for more information. The resale of the shares of Class A common stock by the Registered Stockholders is not being underwritten by any investment bank, which makes this listing different from an underwritten initial public offering. The 10,800,164 shares of Class A common stock covered by this prospectus comprise all of the shares held by the Registered Stockholders. Following the effectiveness of the registration statement of which this prospectus forms a part, the Registered Stockholders may elect to sell these shares, as and to the extent they may determine, through brokerage transactions on the Nasdaq Global Select Market at prevailing market prices, subject to the Lock-Up under the Securities Purchase Agreements (each as defined herein). In addition, the remaining 37,214,869 outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act. If the Registered Stockholders choose to sell their shares of Class A common stock, we will not receive any proceeds from the sale of such shares. For more information, see the section titled "Plan of Distribution."

The direct listing of our Class A common stock on the Nasdaq Global Select Market without underwriters is a relatively novel method for commencing public trading in shares of our Class A common stock, and consequently, the trading volume and price of shares of our Class A common stock may be more volatile than if shares of our Class A common stock were initially listed in connection with an underwritten initial public offering.

J.P. Morgan Securities LLC, or J.P. Morgan, is serving as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8) for our first day of trading on the Nasdaq Global Select Market. Jefferies LLC, or Jefferies, and BTIG, LLC, or BTIG, are also serving as our financial advisors. We have engaged such financial advisors to advise and assist us with respect to certain matters relating to our listing.

On the day that our shares of Class A common stock are initially listed for trading on the Nasdaq Global Select Market, the Nasdaq Stock Market LLC, or Nasdaq, will begin accepting, but not executing, pre-opening buy and sell orders and Nasdaq will begin to continuously generate the indicative current reference price (as defined below) for our Class A common stock on the basis of such accepted orders.

During a 10-minute "Display Only" period, market participants may enter quotes and orders for our Class A common stock in Nasdaq's systems and Nasdaq will disseminate such information, along with other indicative imbalance information, to J.P. Morgan and certain other market participants (including our other financial advisors) on Nasdaq's NOII and BookViewer tools.

Following such 10-minute "Display Only" period, a "Pre-Launch" period will begin, during which J.P. Morgan, in its capacity as our designated financial advisor, must notify Nasdaq that our shares of Class A common stock are "ready to trade." Once J.P. Morgan has notified Nasdaq that our shares of Class A common stock are ready to trade, Nasdaq will calculate the current reference price for our shares of Class A common stock, in accordance with Nasdaq's rules. If J.P. Morgan then approves proceeding at the current reference price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with J.P. Morgan and certain other market participants (including our other financial advisors).

Upon completion of such price validation checks, the applicable orders for our Class A common stock that have been entered will then be executed at such price and regular trading of our shares of Class A common stock on the Nasdaq Global Select Market will commence.

Under Nasdaq rules, the current reference price means: (i) the single price at which the maximum number of orders to buy or sell our shares of Class A common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of Class A common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e., the specified price entered in an order by a customer to buy or sell) at which our shares of Class A common stock will remain unmatched (i.e., will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with J.P. Morgan, Jefferies and BTIG, in their capacities as our financial advisors. J.P. Morgan, Jefferies and BTIG will exercise any consultation rights only to the extent that they may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder.

The Registered Stockholders will not be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will they control or influence J.P. Morgan, Jefferies and BTIG in carrying out their roles as our financial advisors. We will not be involved in the price-setting process.

J.P. Morgan will determine when our shares of Class A common stock are ready to trade and approve proceeding at the current reference price primarily based on consideration of trading volume, timing and share price. In particular, J.P. Morgan will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the current reference price. For more information, see the section titled "Plan of Distribution."

We have applied to list our Class A common stock on the Nasdaq Global Select Market under the symbol "IOND." We expect our Class A common stock to begin trading on or about , 2026.

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012. As such, in this prospectus we have taken advantage of certain reduced disclosure obligations that apply to emerging growth companies.

**Investing in our Class A common stock involves risks. See the section titled "Risk Factors" beginning on page 11 of this prospectus to read about factors you should consider before buying our Class A common stock.** 

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

**The date of this prospectus is , 2026**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_002) | iii |
| [PROSPECTUS SUMMARY](#a_003) | 1 |
| [RISK FACTORS](#a_004) | 11 |
| [MARKET AND INDUSTRY DATA](#a_005) | 44 |
| [TRADEMARKS AND TRADE NAMES](#a_006) | 44 |
| [USE OF PROCEEDS](#a_007) | 44 |
| [DIVIDEND POLICY](#a_008) | 44 |
| [CAPITALIZATION](#a_009) | 45 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_010) | 46 |
| [BUSINESS](#a_011) | 72 |
| [MANAGEMENT AND GOVERNANCE](#a_012) | 85 |
| [EXECUTIVE COMPENSATION](#a_013) | 91 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS](#a_014) | 95 |
| [PRINCIPAL AND REGISTERED STOCKHOLDERS](#a_015) | 98 |
| [SALE PRICE HISTORY OF OUR SECURITIES](#va_001) | 100 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_016) | 101 |
| [DESCRIPTION OF CAPITAL STOCK](#a_017) | 103 |
| [PLAN OF DISTRIBUTION](#a_018) | 110 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS](#a_019) | 113 |
| [LEGAL MATTERS](#a_020) | 117 |
| [CHANGE IN ACCOUNTANTS](#a_021) | 117 |
| [EXPERTS](#a_022) | 118 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_023) | 118 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#a_024) | F-1 |

---

i

[**Table of Contents**](#C_001)

**ABOUT THIS PROSPECTUS** 

This prospectus is a part of a registration statement on Form S-1 that we filed with the SEC using a "shelf" registration or continuous offering process. Under this process, the Registered Stockholders may, from time to time, sell the Class A common stock covered by this prospectus in the manner described in the section titled "Plan of Distribution." Additionally, we may provide a prospectus supplement to add information to, or update or change information contained in, this prospectus (except for the section titled "Plan of Distribution," which additions, updates, or changes that are material shall only be made pursuant to a post-effective amendment). You may obtain this information without charge by following the instructions under the section titled "Where You Can Find More Information" appearing elsewhere in this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective amendment to the registration statement together with the additional information to which we refer you in the sections of this prospectus titled "Where You Can Find More Information."

As used in this prospectus, the term "Registered Stockholders" refers to the stockholders with shares registered hereunder pursuant to the table appearing in the section titled "Registered Stockholders" and their pledgees, donees, transferees, assignees, or other successors-in-interest.

You should rely only on the information contained in this prospectus or contained in any free writing prospectus filed with the Securities and Exchange Commission, or SEC. Neither we nor the Registered Stockholders have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. Neither we nor the Registered Stockholders take responsibility for and can provide no assurance as to the reliability of, any other information that others may give you. The Registered Stockholders are offering to sell, and seeking offers to buy, shares of their Class A common stock only in jurisdictions where it is lawful to do so. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the Class A common stock. Our business, financial condition, operating results, and prospects may have changed since that date.

For investors outside of the United States: Neither we nor any of the Registered Stockholders have done anything that would permit the use or possession or distribution of this prospectus 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 Class A common stock by the Registered Stockholders and the distribution of this prospectus outside of the United States.

Unless the context otherwise requires, references in this prospectus to "Ionic Digital," "we," "our," "us" and the "Company" refers to Ionic Digital Inc., a Delaware corporation, and its consolidated subsidiaries, and "Ionic Digital Inc." or the "Parent" refer only to Ionic Digital Inc.

ii

[**Table of Contents**](#C_001)

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus includes forward-looking statements that reflect our plans, beliefs, expectations and current views with respect to, among other things, future events and financial performance. These forward-looking statements are based on the historical financial information and our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Forward-looking statements made in this prospectus speak only as of its date, and we undertake no obligation to update them in light of new information or future events, except as required by law.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often characterized by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "projects," "plans," or by discussions of strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested or implied by such forward-looking statements. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact us, include, but are not limited to:

● our ability to secure and retain customers on commercially reasonable terms or at all in our digital infrastructure business;

● our ability to establish and maintain a customer base for our digital infrastructure business and customer concentration;

● our ability to procure sufficient power for our digital infrastructure solutions and bitcoin mining operations, and to obtain required regulatory approvals to increase energy capacity;

● business interruptions, including due to power outages, shortages, capacity constraints, catastrophic disasters or other events;

● our ability to access sufficient capital for future strategic growth initiatives;

● our facilities and our ability to obtain miners may fail to keep pace with rapidly changing technology and evolving industry standards;

● additional bitcoin mining capacity from competing bitcoin miners decreases our effective network hashrate market share, and if we are unable to grow our hashrate at pace with the global network hashrate, our chance of earning bitcoin from our mining operations will decline;

● our third-party contract manufacturers, pool service providers, component suppliers and energy providers, some of which are sole source and limited source suppliers;

● the price volatility of bitcoin, the digital currency native to the Bitcoin network;

● our financial and business performance, including financial projections and business metrics;

● the ability to initially list and maintain a listing of our Class A common stock on Nasdaq, and the potential liquidity and trading of such securities;

● the dependence of our revenues on general economic conditions and the willingness of enterprises to invest in technology;

● our ability to establish and maintain proper and effective internal control over financial reporting;

● our commercial partnerships and business relationships;

● the effects of competition and regulation on our business;

● breaches of the security of our information systems, products or services or of the information systems of our third-party providers;

iii

[**Table of Contents**](#C_001)

● potential litigation and other claims, including for infringement, which could cause us to incur significant expenses or prevent us from selling our products or services;

● environmental, health and safety, laws, regulations, costs and other liabilities; and

● other factors detailed under the section titled "Risk Factors."

The factors identified above should not be construed as an exhaustive list of factors that could affect our future results and should be read in conjunction with the other cautionary statements that are included in this prospectus. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. These risks and uncertainties include, but are not limited to, those factors described under the heading "Risk Factors." If any of these trends, risks or uncertainties actually occurs or continues, our business, revenue and financial results could be harmed, and the trading prices of our Class A common stock could decline. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary note.

You should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

iv

[**Table of Contents**](#C_001)

**PROSPECTUS SUMMARY**

*The following summary highlights information contained in greater detail elsewhere in this prospectus. This summary is not complete and does not contain all of the information you should consider in making your investment decision. You should read the entire prospectus carefully before making an investment in our Class A common stock. You should carefully consider, among other things, our financial statements and related notes and the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus.*

 

*Unless the context otherwise requires, references in this prospectus to "Ionic Digital" or the "Successor," refer to Ionic Digital Inc., the Company that acquired substantially all of the assets and assumed certain liabilities from Celsius Mining LLC ("Celsius Mining" or the "Predecessor") following the Chapter 11 bankruptcy filing of Celsius Network LLC and certain of its subsidiaries and affiliates, including the Predecessor (the "Debtors"). References to the "Company," "we," "us" and "our" refer to Ionic Digital for periods on or after January 31, 2024 and to the Predecessor for periods prior to January 31, 2024.*

**Company Overview** 

Ionic Digital is a digital infrastructure solutions and cryptocurrency mining company. We began as a pure-play cryptocurrency mining company when we were formed in January 2024 to acquire all of the cryptocurrency mining assets of Celsius Mining. From our inception, our core objective has been to monetize our portfolio of powered digital infrastructure assets. Historically, we have monetized these assets by efficiently mining bitcoin. More recently, we have sought to achieve this objective by primarily leasing our digital infrastructure assets to hyperscalers, enterprise customers and other businesses for high-performance computing ("HPC") and artificial intelligence ("AI") cloud infrastructure.

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale Ward County LLC (together, with its affiliates, "Nscale"), a global hyperscaler engineered for sovereign-grade AI infrastructure at our Ward County property in West Texas. Under the lease we committed to providing Nscale with the full amount of the 234 megawatts ("MW") of current energy capacity at our Ward County property. We received our first payment under the lease in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

In February 2026, we amended the lease, which contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. In addition, Nscale will receive the tax advantages associated with our qualified data center status. We refer to the lease, as amended, as the "Nscale Agreement."

We expect the Ward County property to energize the additional 89 MW by the second half of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million during 2026 and the first half of 2027, which we plan to fund with cash on hand as well as with sales of our bitcoin held in treasury, as needed. Assuming we are able to secure the additional 89 MW by the second half of 2027, we currently anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.6 billion.

In addition, we are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. We have begun making investments in the Ward County property to support the increased power capacity, including beginning to develop the remaining 86 acres of the property to provide the infrastructure for our effort to support up to approximately 700 MW of total capacity at Ward County. At the fully expanded capacity of 700 MW, our total capital expenditures are expected to be approximately $64 million incurred primarily during the last half of 2026 and the first half of 2027. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations.

Entry into the Nscale Agreement is the culmination of a process we began in early 2025 to identify a strong counterparty and develop an attractive contract structure to better monetize our Ward County site. We believe our agreement with Nscale represents a transformative transaction that significantly increases the value of our company. Although we began as a pure-play bitcoin mining operator, we have successfully demonstrated our ability to convert and optimize our infrastructure, including transitioning our Ward County property for use as an HPC/AI data center. This transaction accelerates our strategy to build a diversified digital infrastructure solutions platform, with the flexibility to monetize our sites across data centers and other digital infrastructure applications as market conditions evolve. Our strong balance sheet also gives us the ability to better monetize sites currently mining bitcoin, expand into other markets, and develop additional powered shell data centers. The combination of an existing cryptocurrency mining business, and the Nscale Agreement, provides us with a steady income stream that includes predictable, high-margin cash flows. We believe that those strengths, together with a strong balance sheet, should position us well as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure.

With five facilities in Texas, three of which we own (including the Ward County property) and two of which we lease, as well as a strong balance sheet, we believe we are well-positioned to execute on our long-term strategy of monetizing powered digital infrastructure assets across data centers, bitcoin mining, and other energy-intensive applications.

[**Table of Contents**](#C_001)

The following table provides an overview of our energy and miner capacity at our owned and leased sites as of March 31, 2026:

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| | | |
|:---|:---|:---|
| **Facility (Location)<sup>(1)</sup>** | **Energy<br> Consumption<br> Capacity<br> (MW)** | **Estimated<br> Miner<br> Rack Space<br> Capacity** |
| *Ward County* |  |  |
| &nbsp;&nbsp;&nbsp;Ward County, Texas<sup>(2)(3)</sup> | 234 MW | N/A |
| *Midland* |  |  |
| &nbsp;&nbsp;&nbsp;East Stiles (Reagan County, Texas)<sup>(2)</sup> | 30 MW | 10080 |
| &nbsp;&nbsp;&nbsp;Garden City (Glasscock County, Texas)<sup>(2)</sup> | 12 MW | 3600 |
| &nbsp;&nbsp;&nbsp;Rebel (Glasscock County, Texas)<sup>(4)</sup> | 50 MW | 7920 |
| &nbsp;&nbsp;&nbsp;Stiles (Reagan County, Texas)<sup>(4)</sup> | 20 MW | 6480 |

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(1) *We own all miners, equipment, and improvements at all Ionic Digital-operated sites.* 

(2) *We own the land at our Ward County, East Stiles, and Garden City sites.* 

(3) *In accordance with the terms of the Nscale Agreement, we have decommissioned all mining assets at the Ward County site as of December 19, 2025.* 

(4) *We retain long-term leases of the land at our Rebel and Stiles sites.* 

***Competitive Strengths***

 ****

We believe that we possess several competitive strengths, including the following:

*Flagship, high-performance facility in Ward County.* Our Ward County site serves as the cornerstone of our operations, offering scalable infrastructure, access to cost-efficient power, and operational reliability. Strategically located in a region with favorable energy pricing and infrastructure, the Ward County property currently has 234 MW of installed capacity. The site has the potential, subject to regulatory approvals and infrastructure development, to support up to approximately 700 MW of total capacity. Expansion of this nature could increase the Company's scale and operating leverage and may enhance long-term shareholder value. However, there can be no assurance that such additional capacity will be approved, constructed, or economically developed. Our planned infrastructure is designed with the optionality to support a wide range of compute-intensive applications, including AI inference and HPC workloads. Nscale, a global hyperscaler, recently contracted to lease approximately 50 acres and access to 234 MW of power at the site under a 126-month agreement to use as a hyperscale AI campus beginning in the third quarter of 2026. We have granted Nscale a right of first refusal on additional capacity at the Ward County site, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or utilize it for our own cryptocurrency mining operations. Additionally, Nscale has granted Microsoft an option for additional power at the Ward County property, if it becomes available, starting in the second half of 2027.

We believe that with our flagship Ward County property, we are well-positioned to capture this opportunity. In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. Since the expanded power capacity under the Nscale Agreement is subject to regulatory approval, we cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated, and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. However, we expect the Ward County property to energize the additional 89 MW during the second half of 2027. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million during 2026 and the first half of 2027, which we plan to fund with cash on hand as well as with sales of our bitcoin held in treasury, as needed. Assuming we are able to secure the additional 89 MW during the second half of 2027, we anticipate the total contracted revenues under the Nscale Agreement would increase to approximately $2.6 billion.

As we seek to expand the energy capacity at the Ward County property to 700 MW, we have begun making investments to support the increased power capacity. At the fully expanded capacity of 700 MW, our total capital expenditures are expected to be approximately $64 million incurred primarily during the last half of 2026 and the first half of 2027. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations.

*Low-cost access to power.* With our strategically located data center sites across Texas, on both owned and leased land, we are able to take advantage of low-cost power. Our cryptocurrency mining operations utilize miner management software and dynamic load management strategies to optimize power consumption based on real-time market pricing and grid conditions, including participation in curtailment programs that are customary in the bitcoin mining industry. As a result, our average cost of power consumed across our Texas sites was approximately 3.6 cents per kWh for the year ended December 31, 2025 and approximately 2.1 cents per kWh for the three months ended March 31, 2026.

*Differentiated management team with deep experience in data center development.* Our management team comprises individuals drawing on diverse knowledge and skill sets acquired through extensive experience in data centers, real estate, managed digital infrastructure and other fields in the technology sector. Our leadership also incorporates extensive strategic expertise in finance and capital markets.

*Strong balance sheet.* As of March 31, 2026, we had no debt, 2,815.6 bitcoin in treasury at a fair value of approximately $192.1 million, and $34.9 million in cash and cash equivalents that is being proactively managed. We believe our strong balance sheet provides us operational flexibility in a capital expenditure intensive business and access to immediate liquidity to pursue joint ventures and strategic acquisitions. Additionally, we may liquidate bitcoin to cover operational expenses and strategic investments as necessary.

**Growth Strategy**

Our growth plans over the next 36 months center on three elements: monetizing our contracted powered digital infrastructure assets, expanding the capacity and development potential of our owned sites, and positioning our portfolio for the next phase of AI demand through acquisitions or joint ventures. In pursuing these plans, our objective is to generate high margin, incremental cash flows with a predictable dollar-based revenue which complement our longer-term investment strategy. We believe our contracted revenue, balance sheet, and experienced management team position us to pursue these opportunities as they arise. We are actively exploring a range of potential financing alternatives to support core business initiatives such as increasing energy capacity at existing owned sites, expansion to new sites, as well as potential acquisition and/or joint venture opportunities in the HPC and AI sectors.

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***Monetizing Powered Digital Infrastructure Assets***

We believe that our portfolio of powered digital infrastructure assets are attractive to hyperscalers, enterprise customers, and other businesses for HPC and AI cloud infrastructure. We believe that leasing our assets to such customers can provide attractive opportunities to monetize our assets with predictable cash flows.

*Ward County* 

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale at our Ward County property in West Texas. In February 2026, we amended the lease. Our Ward County property has a current energy capacity of 234 MW. We received our first payment under the Nscale Agreement in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

We are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. Nscale has contracted to obtain an additional 89 MW of that additional power, when such capacity becomes available, at the same price per MW as the current 234 MW. We expect the Ward County property to energize the additional 89 MW during the second half of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million during 2026 and the first half of 2027. At the fully expanded capacity of 700 MW, our total capital expenditures are currently expected to be approximately $64 million incurred primarily during the last half of 2026 and the first half of 2027. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations. Assuming we are able to secure the additional 89 MW during the second half of 2027, we anticipate that the total contracted revenues under the Nscale Agreement would increase to approximately $2.6 billion.

We expect this lease structure with Nscale will provide us with predictable cash flows while minimizing operating risk at our Ward County site, as we are not responsible for construction or site development. Under our "triple-net" lease, Nscale, as the tenant, is responsible for rental payments and ongoing expenses (including taxes, insurance and maintenance) at the Ward County property, while we are responsible for the management of, but not the cost of, substation maintenance. The Nscale Agreement does not require us to raise additional capital and provides us with significant resources to fund other growth initiatives. We expect this will strengthen our financial foundation and provide a stable source of cash flows, allowing us to monetize these assets while we continue to mine bitcoin at our other facilities.

We are in active discussions with Texas-New Mexico Power ("TNMP") and the Electric Reliability Council of Texas ("ERCOT") to increase electricity capacity from the current 234 MW to 700 MW by the end of 2027. We have submitted all required documentation, and our ability to obtain the additional power will depend primarily on the completion of two utility projects in the surrounding area that are on track to be completed in 2026 and 2027. Our expansion request was submitted during an earlier study phase relative to subsequent applicants, which may benefit sequencing of transmission evaluations; however, approval and allocation of additional capacity remain subject to regulatory and infrastructure considerations. Nothing in the Nscale Agreement requires us to increase the electricity capacity beyond 234 MW. If this expansion is approved, we plan to make the required infrastructure investments to use the increased power when available.

Other potential opportunities at the Ward County property may include building powered shell or full turnkey data centers in an effort to enter the data center development sector, pursuing strategic partnerships with established data center developers to build on our Ward County site, or a combination of these opportunities.

*Midland*

 

We currently operate four bitcoin owned and leased sites in Midland, Texas and are currently working to streamline our cryptocurrency mining operations such that these sites will be our only locations used for mining bitcoin. With the digital infrastructure solutions commencing at Ward County, we relocated our fleet of approximately 89,700 miners to storage or to Midland and have commenced the disposal of less efficient mining assets in favor of operating the most efficient miners we currently own. In addition, in February 2026, the Company elected not to renew its long-term hosting arrangement with GXD in Oklahoma. The miners at GXD constituted approximately one third of our capacity to generate hashrate as of December 31, 2025. Our mining equipment at GXD was removed from service by March 31, 2026, and management has determined that a majority of the equipment will be sold and will not be returned to service, while the most efficient miners will be relocated to the Midland sites.

Of the approximately 120,600 miners we owned during the first quarter of 2026, approximately 28,100 are or will be deployed at the Midland sites and are or will be actively hashing, approximately 19,100 miners will be retained for spare parts, and the remaining approximately 73,400 miners will be sold or scrapped. During the first quarter of 2026, we approved a formal plan for disposal of the miners and streamlining our mining fleet, selling approximately 3,500 miners during the period. We expect to continue executing the plan of sale with a completion date within the current year 2026.

The 50MW capacity at our Rebel site includes 25 MW of unused power capacity added in the fourth quarter of 2025. We also anticipate receiving approval for an additional 10 MW of capacity at our East Stiles site during 2027, an expansion for which there are few barriers, material steps, or material costs at this time.

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We intend in the near term to bring all four Midland sites to market for HPC/AI development, as we believe this represents the highest and best use of these sites. Our four Midland sites — East Stiles, Rebel, Stiles, and Garden City — collectively represent 112 MW of current power capacity across approximately 59.5 acres in West Texas, with an additional 10 MW of anticipated capacity at our East Stiles site expected to be available in 2027.

We believe each site has sufficient land to support the construction of a new HPC/AI data center facility — whether structured as a powered shell or a full turnkey deployment — and are exploring the possibility of linking all Midland sites together with fiber, creating an ultra-low latency virtual HPC/AI data center campus. We may develop these facilities independently or through joint ventures, and we are actively evaluating potential customers and partners for these sites. As our Midland sites are developed and monetized for HPC/AI use, we would expect to wind down our bitcoin mining operations over time, with the long-term goal of operating as a pure-play digital infrastructure company. While our long-term strategy contemplates increasing the contribution of digital infrastructure and HPC/AI-related activities to our business, we have not established a timetable for, or committed to, the cessation of bitcoin mining operations, and any future changes would be subject to ongoing evaluation and approval by our Board of Directors.

***Acquisitions and Partnership Opportunities***

 ****

We believe the current AI infrastructure build-out is predominantly driven by demand for large-scale capacity to train and run AI/ML modeling and inference workloads. This phase of investment is characterized by near gigawatt-scale requirements and a total cost of ownership focus that favors locations with access to abundant land and low-cost power. Our Ward County campus and four Midland sites are well-suited to this demand profile.

Looking ahead, we believe the next phase of AI infrastructure demand will be shaped by agentic computing and inference workloads — applications that require lower-latency, geographically distributed data center capacity closer to end users. To position Ionic Digital ahead of this shift, our growth strategy is focused on acquiring or leasing sites in or near the top 30 U.S. metropolitan markets. These markets are generally characterized by dense commercial and enterprise activity, and we are targeting sites with sub-100 MW power availability. We believe this scale is well-matched to the requirements of agentic and inference-oriented AI deployments, and that first-mover positioning in these markets will be increasingly valuable as AI workloads migrate from centralized training clusters toward distributed, latency-sensitive inference infrastructure.

We believe our balance sheet, experienced management team, and contracted revenue stream will enable us to raise capital for site acquisition and/or development.

***Bitcoin Treasury***

During 2025, we sold a portion of our bitcoin holdings to cover operating and capital expenditures and retained the remainder to maintain an adequate ongoing liquidity position. For context, during the year ended December 31, 2025, we mined an average of 111.4 bitcoin per month and sold an average of 84.1 bitcoin per month to cover expenses and preserve liquidity. During the three months ended March 31, 2026, we mined an average of 31.9 bitcoin per month and sold zero bitcoin. With the monthly fixed lease payments under the Nscale Agreement beginning in August 2026, we expect to have a steady and increasing stream of cash inflows, which we anticipate will enable us to retain a greater portion of our mined bitcoin, expanding our bitcoin holdings in treasury and supporting broader treasury management initiatives unless we find more compelling investment opportunities that necessitate the liquidation of bitcoin holdings. We do not expect to use cash flows from our digital infrastructure solutions business to fund purchases of bitcoin.

Our Board of Directors has not adopted any formal policies relating to how much of our bitcoin we hold in treasury or when we purchase, or sell our bitcoin holdings. Our Board of Directors, together with the members of our management team, periodically manage the amount of bitcoin we hold in treasury and when we sell our bitcoin holdings based on, among other things, market conditions and our liquidity needs.

In addition, while our Board of Directors has approved certain parameters within which management is authorized to pursue bitcoin hedging strategies, we are not currently engaged in any hedging transactions. We may deploy derivatives as part of hedging strategies intended to manage the value risk of bitcoin held, considering market liquidity and our treasury objectives. We may also employ other derivative trading strategies, which may include selling bitcoin call options or buying bitcoin put options, as a monetization strategy or, in certain cases, through structured arrangements such as collar options, to manage downside price exposure related to our physical mining operations.

As we continue to shift our business to leasing digital infrastructure assets, we anticipate that our primary operating revenues will be derived from non-mining activities denominated in U.S. dollars. As our Midland sites are developed and monetized for HPC/AI use, we would expect our bitcoin mining operations — and the bitcoin we generate from those operations — to decline over time. Accordingly, we view our existing bitcoin treasury as a capital allocation asset to be managed and deployed in support of our broader growth strategy, including potential site acquisitions and development, rather than as a long-term balance sheet holding to be indefinitely accumulated.

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**Recent Developments**

**Private Placement**

On June 26, 2026, we sold, in a private placement transaction (the "Private Placement") pursuant to securities purchase agreements (the "Securities Purchase Agreements"), an aggregate of (i) 7,547,166 shares of Series A convertible preferred stock, par value $0.00001 per share (the "Series A Preferred Stock"), at a price of $53.00 per share, (ii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $63.60 per share, (iii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $74.20 per share, and (iv) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $87.45 per share (the warrants described in clauses (ii) through (iv), collectively, the "Warrants") to certain institutional accredited investors (the "Investors") for an aggregate purchase price of $400.0 million before an estimated $16.8 million in transaction fees.

The Series A Preferred Stock is convertible into Class A common stock (i) at the option of the holder and (ii) automatically in the event we complete our listing on Nasdaq or another national securities exchange, complete a merger or other transaction that results in our or the surviving company's common equity being listed on Nasdaq or another national securities exchange, or complete a firm commitment underwritten public offering of our Class A common stock. The Investors have agreed that they will not transfer or otherwise dispose of the Series A Preferred Stock, the Class A common stock issued upon conversion of the Series A Preferred Stock, the Warrants, or the shares of Class A common stock issuable upon exercise of the Warrants at a price of less than $70.00 per share until six months after our securities are first listed on Nasdaq or another national securities exchange (the "Lock-Up"). With respect to 2% of each tranche of the Warrants, no Lock-Up applies.

We are registering the resale of the shares of Class A common stock issuable upon conversion of the Series A Preferred Stock and issuable upon exercise of the Warrants on the registration statement of which this prospectus forms a part, and the Investors are among the Registered Stockholders described herein with respect to such shares of Class A common stock.

***Unaudited Pro Forma Impact of Private Placement on Earnings Per Share***

 ****

Upon completion of the direct listing to which this prospectus relates, the Series A Preferred Stock will automatically convert on a one-to-one basis into shares of Class A common stock. The unaudited pro forma information presented in the table below includes the pro forma effect of the automatic conversion as if it had occurred at the beginning of each period presented. Basic and diluted net loss per share for the three months ended March 31, 2026, and for the year ended December 31, 2025, computed using the weighted average number of shares of our Class A common stock outstanding during the respective period, are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Successor** | **Successor** |
| <br>($ in thousands, except per share amounts) | **Three Months Ended<br> March 31, 2026** | **Three Months Ended<br> March 31, 2026** | **Year Ended<br> December 31, 2025** | **Year Ended<br> December 31, 2025** |
|  | **Actual** | **Pro Forma** | **Actual** | **Pro Forma** |
| Numerator |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(12984) | $(12984) | $(247723) | $(247723) |
| Denominator |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted-average Class A common stock outstanding, basic | 37374261 | 44921427 | 37374261 | 44921427 |
| Basic and diluted net loss per share, Class A common stock | $(0.35) | $(0.29) | $(6.63) | $(5.51) |

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The 3,018,858 Warrants issued in conjunction with the preferred stock offering are anti-dilutive as the Company is in a loss position for the periods presented. The Warrants would become dilutive in tranches of 1,006,286 shares during periods of positive earnings when our Class A common stock trades above $63.60, $74.20, and $87.45 per share for each respective tranche. We have not yet finalized the accounting treatment for the issuance of the Warrants, the features of which may create a warrant derivative liability that we would record in our financial statements. The pro forma net loss amount shown above does not give effect to any potential material changes in fair value that may result from accounting for such potential warrant derivative liability or the issuance of the Series Z Preferred Stock discussed below.

***Issuance of Series Z Preferred Stock***

In June 2026, we issued 40,000 shares of Series Z Preferred Stock for an aggregate of $0.40 in proceeds. The shares of Series Z Preferred Stock have 1,000 votes per share of Series Z Preferred Stock, but do not have any economic rights with respect to dividends, liquidation or otherwise. The holder of the Series Z Preferred Stock has agreed that it will vote such stock in the same proportion as votes cast by holders of the Class A common stock on any matter submitted to stockholders at our 2026 annual meeting of stockholders. The shares of Series Z Preferred Stock are not included in the pro forma adjustments above due to immateriality. The shares of Series Z Preferred Stock will be automatically redeemed for $0.40 in the aggregate following the conclusion of our 2026 annual meeting of stockholders, which is scheduled to occur on July 13, 2026. The Series Z Preferred Stock is intended to ensure the presence of a quorum to conduct an annual meeting of stockholders within the time period required by Delaware law.

**Corporate Information** 

We were incorporated on January 5, 2024 as a Delaware corporation. Our address is 650 Massachusetts Avenue NW, 6th Floor, Washington, District of Columbia 20001. Our telephone number is (754) 273-6593.

Our website address is *https://www.ionicdigital.com*. Information contained on our website or connected thereto does not constitute part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

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**Emerging Growth Company** 

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in their periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities, and the prices of our securities may be more volatile.

Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparisons of our financial statements with certain other public companies difficult or impossible because of the potential differences in accounting standards used.

We will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this listing, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common equity that is held by non-affiliates exceeds $700 million as of the end of the prior fiscal year's second fiscal quarter; and (2) the date on which we have issued more than $1.00 billion in non-convertible debt during the prior three-year period.

**Summary Risk Factors**

Our business is subject to numerous risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this prospectus summary, which represent challenges we face in connection with the successful implementation of our business strategy and the growth of our business. In particular, the following considerations, among others, may offset our competitive strengths or have a negative effect on our business strategy, which could cause a decline in the price of shares of our Class A common stock and result in a loss of all or a portion of your investment:

● We have an evolving business model and are at an early stage of development for our digital infrastructure business.

● As a recently formed company with a high degree of executive turnover since we began our operations, there is significant uncertainty regarding our ability to effectively operate our business and implement our strategy.

*Risks Related to Our Digital Infrastructure Business*

● Our digital infrastructure business has and is expected to continue to have significant customer concentration and failure to attract, grow and retain a diverse and balanced customer base could harm our digital infrastructure business and operating results.

● It may take significant time and expenditures to develop our digital infrastructure solutions through continued development at our existing and future sites, and our efforts may not be successful.

● Our digital infrastructure solutions development depends upon the demand for data centers.

● Any delays or unexpected costs developing our existing space, developable land and newly acquired properties may delay and harm our growth prospects, future operating results and financial condition.

● Our expansion efforts may not drive sufficient customer demand in the future to realize expected returns on these investments.

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*Risks Related to Our Cryptocurrency Mining Business*

● If the bitcoin reward for solving blocks and the related transaction fees are not sufficiently high, we may not have an adequate incentive to continue mining and may cease mining operations, which would likely result in our failure to achieve profitability in that particular line of business.

● Our cryptocurrency assets may be subject to loss, damage, theft, or restriction on access. Additionally, incorrect or fraudulent cryptocurrency transactions may be irreversible.

● Our success in our cryptocurrency mining business depends on external factors affecting the Bitcoin industry.

● Additional bitcoin mining capacity from competing bitcoin miners will trigger increases in mining difficulty, and if we are unable to grow our hashrate at pace with the global network hashrate, our chance of earning bitcoin from our mining operations will decline over the coming years.

● To the extent that the profit margins of bitcoin mining operations are not sufficiently high, bitcoin mining operators are more likely to immediately sell bitcoins earned by mining or previously held on the balance sheet into the bitcoin exchange markets, resulting in a reduction in the price of bitcoin that could adversely affect us.

● If a malicious actor or botnet obtains control in excess of 50% of the processing power active on the Bitcoin network, it is possible that such actor or botnet could manipulate the blockchain in a manner that adversely affects our business.

● Demand for bitcoin is driven, in part, by it being generally recognized as the most prominent and secure cryptocurrency. Cryptocurrencies other than bitcoin could have features that make them more desirable to a material portion of the cryptocurrency user base, resulting in a reduction in demand for bitcoin, which could have a negative effect on the price of bitcoin and adversely affect an investment in us.

● A material decline in the value of bitcoin could have an adverse effect on our results of operations, our liquidity and the strength of our balance sheet.

● Transaction fees may decrease demand for bitcoin which could adversely affect our business.

*Risks Related to All Our Operations*

● We may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power (including as a result of failure to obtain necessary approvals).

● Failure of critical systems at the facilities operated by us or third parties could have a material adverse effect on our business, prospects, financial condition, and results of operations.

● Our reliance on a third-party mining pool service provider for our mining revenue payouts may have a negative impact on our operations. For example, should the mining pool operator be subject to cyber-attacks, we may have limited recourse against the mining pool operator with respect to rewards to be paid to us.

● We depend on third parties, including electric grid operators, and electric utility providers and may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power.

● We have a significant concentration of our operations in Texas and, thus, are particularly exposed to changes in the competitive landscape, regulatory environment, market conditions and natural disasters in that state.

● Our operations and strategic goals are capital-intensive. We may be unable to access sufficient additional capital for future strategic growth initiatives.

● Our operations may be adversely affected by energy shortages and rising energy prices.

● We are required to obtain, and to comply with, government and utility company permits and approvals.

● We are subject to a rapidly evolving regulatory landscape and any adverse changes to our or our co-hosting customers' failure to comply with any laws or regulations could adversely affect our business, prospects or operations.

● If we were deemed to be an investment company under the Investment Company Act, applicable restrictions could make it impractical or impossible for us to continue our business as contemplated and could have a material adverse effect on our business, financial condition and results of operations.

● Since we will not be subject to the Investment Company Act, we will not be subject to its substantive provisions, including but not limited to, provisions requiring diversification of investments, limiting leverage and restricting investments in illiquid assets.

● Blockchain technology may expose us to sanctioned or blocked persons or may result in unintentional or inadvertent violations of trade compliance and economic sanctions laws and regulations.

● Bitcoin's and other cryptocurrencies' status as a "security" or other regulated instrument in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a cryptocurrency, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, which may adversely affect our business, prospects, results of operations or financial condition.

● The nature of the cryptocurrency segment of our business requires the application of complex financial accounting rules. Because there has been limited guidance provided and precedent set for financial accounting of bitcoin and other cryptocurrencies, the determination that we have made for how to account for cryptocurrencies transactions may be subject to change.

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● Regulatory developments regarding cryptocurrencies and cryptocurrency markets could have a material adverse effect on our business, prospects, results of operations or financial condition.

● Our business may be subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with existing or future energy regulations or requirements. We are required to obtain, and to comply with, government permits and approvals.

● If we fail to establish and maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed.

● The registration and listing of our Class A common stock differ significantly from an underwritten initial public offering.

● An active, liquid, and orderly market for our Class A common stock may not develop or be sustained. You may be unable to sell your shares of Class A common stock at or above the price you bought them for or for the value of the shares agreed upon by the creditors and debtors of the Celsius bankruptcy at the time the shares were issued.

**Summary Consolidated Financial and Other Data**

The following tables summarize our consolidated financial and other data for the periods and as of the dates indicated and are presented on a Predecessor and Successor basis. References to "Successor" or "Company" relate to our results of operations and financial position subsequent to January 31, 2024. References to "Predecessor" relate to the results of operations and financial position of Celsius Mining, LLC prior to and including January 31, 2024. We derived (i) the summary consolidated statement of operations data for the three months ended March 31, 2026 and 2025 and the summary consolidated balance sheet data as of March 31, 2026 from our unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this prospectus and (ii) the summary consolidated statement of operations data for the year ended December 31, 2025, the eleven months ended December 31, 2024 and one month ended January 31, 2024 and the summary consolidated balance sheet data as of December 31, 2025 and 2024 from our audited consolidated financial statements and the notes thereto included elsewhere in this prospectus.

Our historical results are not necessarily indicative of the results that may be expected in any future period. In addition, our consolidated financial and other data for the Successor period are not entirely comparable to the consolidated financial and other data for the Predecessor periods. The information set forth below should be read in conjunction with, and is qualified in its entirety by reference to, the section of this prospectus titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the notes thereto included elsewhere in this prospectus.

***Condensed Consolidated Statement of Operations Data***

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** |
| Cryptocurrency mining revenue | $7401 | $41081 |
| Digital infrastructure leasing revenue | 43955 |  |
| Other revenue | 84 |  |
| &nbsp;&nbsp;&nbsp;**Total revenue** | $**51440** | $**41081** |
| Total operating expenses | 81092 | 76846 |
| &nbsp;&nbsp;&nbsp;**Operating loss** | $**(29652)** | $**(35765)** |
| Other income, net | 327 | 341 |
| Loss before provision for income taxes | $(29325) | $(35424) |
| Benefit for income taxes | (16341) | (7393) |
| &nbsp;&nbsp;&nbsp;**Net loss** | $**(12984)** | $**(28031)** |
| **Adjusted gross profit<sup>(1)</sup>** | $**45372** | $**15868** |
| **Adjusted EBITDA<sup>(1)</sup>** | $**(17272)** | $**(18640)** |

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(1) *Adjusted gross profit and Adjusted EBITDA are financial measures not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). See "—Non-GAAP Financial Measures" below.* 

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|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
| <br>***($ in thousands)*** | **Year Ended**<br> **December 31,** <br> **2025** | **Eleven Months Ended**<br> **December 31,**<br> **2024** | **One Month Ended**<br> **January 31,**<br> **2024** |
| Cryptocurrency mining revenue | $135561 | $138428 | $15381 |
| Digital infrastructure leasing revenue | 5837 |  |  |
| **Total revenue** | $**141398** | $**138428** | $**15381** |
| Total operating expenses | 452764 | 96950 | 20172 |
| **Operating income (loss)** | $**(311366)** | $**41478** | $**(4791)** |
| Other income (expense), net | (2418) | 10972 | (5575) |
| Income (loss) before provision for income taxes | $(313784) | $52450 | $(10366) |
| Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |
| **Adjusted gross profit<sup>(1)</sup>** | $**53400** | $**47942** | $**5713** |
| **Adjusted EBITDA<sup>(1)</sup>** | $**(11223)** | $**84960** | $**1425** |

---

(1) *Adjusted gross profit and Adjusted EBITDA are financial measures not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). See "—Non-GAAP Financial Measures" below.* 

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***Consolidated Balance Sheet Data***

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **As of** <br> **March 31, 2026** | **As of**<br> **December 31,**<br> **2025** | **As of**<br> **December 31,**<br> **2024** |
| Cash and cash equivalents | $34916 | $43510 | $48393 |
| Cryptocurrency assets | 192085 | 237947 | 223438 |
| Other current assets | 16295 | 21887 | 12005 |
| Total assets | 554030 | 605004 | 817893 |
| Total liabilities | 17159 | 61597 | 30263 |

---

 **

***Non-GAAP Financial Measures***

 **

We use Adjusted gross profit and Adjusted EBITDA, financial measures not calculated in accordance with GAAP, to supplement our consolidated financial statements, which are presented in accordance with GAAP.

We define Adjusted gross profit as gross profit exclusive of depreciation. Our Chief Operating Decision Maker ("CODM") relies on Adjusted Gross Profit when making decisions regarding the allocation of resources to operating segments.

We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, and amortization, further adjusted by certain non-recurring or infrequent costs and income, including the costs and realized gains or losses related to the decommissioning of cryptocurrency mining sites, unrealized gain or loss on energy derivatives and other investments, one-time gains or losses on certain litigation settlements, share-based compensation, impairment on intangible and long-lived assets, and other non-recurring costs incurred. We rely on Adjusted EBITDA to evaluate our business, measure our performance, and make strategic decisions. Our management team uses Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation) and other items (such as one-time costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting the business in addition to measures calculated under GAAP.

Likewise, we believe that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing our historical financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.

Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measures. Gross profit is the GAAP measure most directly comparable to Adjusted gross profit. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. You are encouraged to evaluate each of these adjustments and the reasons our management considers them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. We may also incur unusual or non-recurring items in the future that may affect Adjusted EBITDA, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our historical results as reported under GAAP. Adjusted EBITDA may be defined differently by other companies in our industry and our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

For a reconciliation of the most directly comparable financial measures presented in accordance with GAAP to Adjusted gross profit and Adjusted EBITDA, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Trends and Factors Affecting Performance—Adjusted Gross Profit" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Trends and Factors Affecting Performance—Adjusted EBITDA."

**Key Operating Indicators**

We also consider the following non-financial metrics in assessing the productivity and efficiency of our cryptocurrency mining operations. The following table presents our key operating indicators as of the dates indicated, as well as information on the Bitcoin network as of such dates.

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of<br> March 31, <br> 2026** | **As of<br> March 31,<br> 2025** |
| Total miners owned<sup>(1)</sup> | 120563 | 139223 |
| Total hashrate (Eh/s)<sup>(2)</sup> | 12.2 | 14.0 |
| Active miners<sup>(3)</sup> | 23200 | 116500 |
| Hashrate contributed (Eh/s)<sup>(4)</sup> | 2.0 | 8.9 |
| Network hashrate (Eh/s)<sup>(5)</sup> | 980.8 | 816.8 |

---

(1) *"Total miners owned" represents an approximation of the entirety of our fleet of miners, including both miners deployed and miners in storage, during the final month of the periods presented.* 

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(2) *"Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented, based on manufacturers' specifications.* 

(3) *"Active miners" represents the approximate total number of miners hashing at our owned and leased sites and hosted facilities during the final month of the periods presented.* 

(4) *"Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.* 

(5) *"Network hashrate" is the total computational power of miners used globally in the Bitcoin network during the final month of the periods presented. Data sourced from CoinMetrics.io.* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)<sup>(6)</sup>** |
|  | **As of**<br> **December 31,**<br> **2025** | **As of**<br> **December 31,**<br> **2024** | **As of**<br> **January 31,**<br> **2024** |
| Total miners owned<sup>(1)</sup> | 125100 | 127200 | 127800 |
| Total hashrate (Eh/s)<sup>(2)</sup> | 12.6 | 12.7 | 12.7 |
| Active miners<sup>(3)</sup> | 40600 | 106700 | 65800 |
| Hashrate contributed (Eh/s)<sup>(4)</sup> | 2.9 | 9.3 | 6.0 |
| Network hashrate (Eh/s)<sup>(5)</sup> | 1048.5 | 778.5 | 521.3 |

---

(1) *"Total miners owned" represents an approximation of the entirety of our fleet of miners, including both miners deployed and miners in storage, during the final month of the periods presented.* 

(2) *"Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented, based on manufacturers' specifications.* 

(3) *"Active miners" represents the approximate total number of miners hashing at our owned, leased, and hosted facilities during the final month of the periods presented.* 

(4) *"Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.* 

(5) *"Network hashrate" is the total computational power of miners used globally in the Bitcoin network during the final month of the periods presented. Data sourced from CoinMetrics.io.* 

(6) *Data for the Predecessor is approximated based on available records and performance data, which may originate from sources different than those currently employed by Ionic Digital.* 

 ****

***Bitcoin earned***

Our management views total bitcoin earned as a key metric for our cryptocurrency mining business. Trends in total bitcoin earned were previously, and will continue to be, impacted by our ability to deploy additional miners, and by our ability to maintain high miner uptime and efficiency. Management monitors this metric over monthly and quarterly periods. Across all of our owned, leased, and hosted sites, we earned bitcoin in the amounts summarized below, net of pool participation fees. These values represent the total bitcoin we earned, net of mining pool participation fees and exclusive of the revenue share paid to hosting partners in bitcoin. Bitcoin earned for each quarter is summarized in the table below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in- Possession)** |
| <br>**Quarter** | **Three Months Ended March 31, 2026** | **Year Ended December 31,** <br> **2025** | **Eleven Months Ended**<br> **December 31,**<br> **2024** | **One Month Ended**<br> **January 31,**<br> **2024** |
| First quarter | 96 | 440 | 640 | 358 |
| Second quarter |  | 380 | 610 |  |
| Third quarter |  | 325 | 374 |  |
| Fourth quarter |  | 192 | 451 |  |
| &nbsp;&nbsp;&nbsp;**Total bitcoin earned** | **96** | **1337** | **2075** | **358** |

---

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**RISK FACTORS**

*Investing in our securities involves risks. You should consider carefully the risks and uncertainties described below, together with all of the other information in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes, before deciding whether to purchase any of our securities. Our business, prospects, results of operations and financial condition could also be harmed by risks and uncertainties that are not presently known to us or that we currently believe are not material. If any of these risks actually occur, our business, prospects, results of operations and financial condition could be materially and adversely affected.* 

**Risks Related to Our Company**

***Due to our limited operating and financial history, our historical financial information may not be indicative of our future results of operations.***

 ****

Ionic Digital was formed in January 2024 and has a limited operating and financial history. Although we acquired the bitcoin mining assets and assumed certain liabilities of Celsius Mining, we operate our business in a different manner than the Predecessor entity. In addition, after terminating our relationship with U.S. Data Management Group, LLC ("Hut 8") in December 2024, we have eliminated certain hosted sites and now manage our owned and leased sites operations. See the section titled "Business – Company History" for more information. Moreover, in 2025 we began a shift from a pure-play bitcoin mining company to a company principally focused on providing digital infrastructure solutions.

Accordingly, our future financial condition and results of operations may not be comparable to Celsius Mining's or our historical financial condition and results of operations.

As a result of our limited operating and financial history, our ability to accurately forecast the future results of our operations is limited and subject to a number of uncertainties, including our ability to plan for and model future growth. The historical financial information contained in this prospectus may not be indicative of our future results of operations. Our ability to generate revenues is principally dependent on our ability to generate rental revenues on our Ward County property and any future facilities that we may lease to third parties for HPC, AI, or other purposes, and to successfully execute our bitcoin mining operations, which we have been undertaking with our current management for a limited period of time. We may be unable to successfully execute on differentiation strategies beyond bitcoin mining, and we cannot assure you that our facilities leasing strategy will be successful.

We also face the types of risks and uncertainties experienced by new and growing companies in rapidly changing industries. If our assumptions regarding these risks, uncertainties, and future growth are incorrect or change, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations, and our business could suffer.

***We have an evolving business model and are at an early stage of development for our digital infrastructure business.***

 ****

We were founded as a pure-play cryptocurrency mining company, but we are evolving our business model to better leverage our digital infrastructure assets. In October 2025, we entered into our first arrangement to lease our Ward County property to a third party for HPC use. Other than a $45.6 million advance payment in November 2025, monthly fixed lease payments to be received under that agreement do not commence until August 2026. Accordingly, we have no history upon which an evaluation of our prospects and future performance in this sector can be made. To stay current with the industry, our business model may continue to evolve as well. From time to time, we may modify aspects of our business model. We are subject to the risks and uncertainties of a new business, including the risk that we may never further develop, complete development of, or successfully market any of our proposed services. We cannot offer any assurance that these or any other modifications will be successful or will not result in harm to the business. We may not be able to manage growth effectively, which could damage our reputation, limit our growth and negatively affect our operating results.

[**Table of Contents**](#C_001)

Our intent in growing and developing this business is to reduce the impact of variability on our revenue and hosting costs by entering into long-term lease arrangements with leading tenants in the AI, HPC and enterprise sector. However, we cannot provide assurance that we will successfully enter into arrangements on acceptable terms or that our tenants will perform their obligations to us. Our ability to achieve our diversified capital strategy depends on a variety of factors, including, but not limited to, our ability to identify suitable tenants and strategic partnership opportunities, optimize our mining capabilities, and obtain rights to additional sites or the capital to develop additional facilities for other leases or for use in our own bitcoin mining operations. We also cannot provide any assurance that our diversified capital strategy will be realized or result in the benefit we hope to achieve. If one or more of our underlying assumptions regarding these initiatives prove to have been incorrect, we may not be able to realize fully, or realize in the anticipated timeframe, the expected benefits from our future growth plans which could, in turn, have a material adverse effect on our business, prospects, results of operations or financial condition.

***As a recently formed company with a high degree of executive turnover since we began our operations, there is significant uncertainty regarding our ability to effectively operate our business and implement our strategy.***

Ionic Digital is a recently formed company with a small number of executive officers and employees. Since we began our operations, we experienced frequent turnover among our executive officers and have enlisted multiple interim senior executives. A number of budgeted management and operational roles in accounting, finance, and operations that we intend to fill over time are currently vacant. Our success in executing our business strategy is dependent, to a significant degree, on our ability to hire and retain highly qualified personnel with relevant expertise. Competition for qualified employees in the digital infrastructure and cryptocurrency industries in general, and in the bitcoin mining sector in particular, is intense. There can be no assurance we will be able to attract and hire qualified individuals to fill these roles or to fill them within an appropriate time frame, or that we will be able to retain those individuals key to operating our business.

Our limited staff and the short tenure of our management team indicates there is uncertainty regarding our ability to, among other things:

● implement our business and operational strategy;

● identify, hire, and retain the needed personnel to implement our business plan;

● manage growth;

● maintain the accounting and finance functions necessary for a publicly-traded company; and/or

● respond to evolving market and operating conditions.

If our management and employees are unable to effectively achieve or respond to any of the above-mentioned key areas, it could have a material adverse effect on our business, prospects, results of operations, and financial condition.

 ****

**Risks Related to Our Operations**

<u>Risks Related to Our Digital Infrastructure Solutions Business</u>

***Our digital infrastructure business has and is expected to continue to have significant customer concentration.***

 ****

We currently have only one customer in our digital infrastructure business, and we expect to generate a large portion of our digital infrastructure solutions from a small number of customers for the foreseeable future. If we were to lose one or more of our large customers, our operating results could suffer dramatically.

In October 2025, we entered into an agreement with Nscale for a 126-month "triple-net" lease of our Ward County property. Rental payments under the Nscale Agreement are scheduled to commence on August 1, 2026. After an initial 18-month ramp up period, annual fixed rent payable under the lease at 234 MW capacity is $182.5 million (or $250.5 million with the additional 89 MW of capacity secured), with 3% annual increases scheduled to occur after the fifth year of the lease term.

As of the date of this prospectus, this is our only material facility lease. As a result of the risks our customer faces, it is not possible for us to predict the future level of demand for our services that will be generated by this customer or the future demand for the products and services of this customer. Should this customer suffer from harm or loss, its business could be negatively impacted. If our customer failed to perform under the lease for any reason, and we are not able to timely replace this customer with one or more comparable revenue-generating customers or to collect on guarantees from the customers' partners, our ability to generate any revenue from our Ward County property could be materially adversely affected, which in turn would have a material adverse effect on our financial condition, results of operations and cash flows.

Furthermore, we expect that the limited number of customers will continue to account for a high percentage of our digital infrastructure solutions for the foreseeable future. The concentration of our customer base increases risks related to the financial condition of our customers, and the deterioration in financial condition of a single customer or the failure of a single customer to perform its obligations could have a material adverse effect on our results of operations and cash flow.

***As we further pursue a strategy of monetizing our digital infrastructure assets, failure to attract, grow and retain a diverse and balanced customer base, including key anchor customers, could harm our business and operating results.***

Our ability to attract, grow and retain a diverse and balanced customer base, some of which we hope to be anchor customers that attract other customers, may affect our ability to maximize our revenues. Our ability to attract customers to our data centers will depend on a variety of factors, including our ability to secure power, the presence of carriers, the data center's operating reliability and security and our ability to effectively market our product offerings. Our inability to develop, provide, or effectively execute any of these factors may hinder the development, growth, and retention of a diverse and balanced customer base and adversely affect our business, financial condition, and results of operations.

[**Table of Contents**](#C_001)

***It may take significant time and expenditure to develop our digital infrastructure solutions through continued development at our existing and planned sites, and our efforts may not be successful.***

 ****

The continued development of our existing and any future facilities is subject to various factors beyond our control. There may be difficulties in integrating new equipment into existing infrastructure, constraints on our ability to connect to or procure the expected electricity supply capacity at our facilities, defects in design, construction or installed equipment, diversion of management resources, insufficient funding or other resource constraints. Actual costs for development may exceed our planned budget.

We intend to expand by acquiring and developing additional sites, taking into account a number of important characteristics such as availability of renewable energy, electrical infrastructure and related costs, geographic location and the local regulatory environment. We may have difficulty finding sites that satisfy our requirements at a commercially viable price or our timing requirements. Furthermore, there may be significant competition for suitable data center sites, and government regulators, including local permitting officials, which may restrict our ability to set up data center operations in certain locations.

Leveraging sites that we have contractually secured may ultimately fail to complete due to factors beyond our control. In addition, the ability to secure connection agreements to access power sources and permits, approvals and/or licenses to construct and operate our facilities could be delayed in regulatory processes, may not be successful or may be cost prohibitive. Actions by government regulators, or the issuance of any new regulations, that restrict our ability to operate HPC/AI data centers or bitcoin mining data centers may reduce the availability and/or increase the cost of electricity in the geographic locations in which our operating facilities are located or could otherwise adversely impact our business.

Development and construction delays, cost overruns, changes in market circumstances, environmental or community constraints, an inability to continue to find suitable data center locations as part of our expansion and other factors may adversely affect our business, prospects, results of operations and financial condition. We will continue to review our expansion plans in light of evolving market conditions. Any such delays, and any failure to increase our energy or hashrate capacity in the future, could adversely impact our business, prospects, results of operations and financial condition.

***Our digital infrastructure development business depends upon the demand for data centers.***

We are pursuing a strategy of owning, developing and operating data centers. A reduction in the demand for data center space, power or connectivity would have a greater adverse effect on our leasing or business and financial condition than if we owned a portfolio with a less specialized use. These development activities make us particularly susceptible to general economic slowdowns as well as adverse developments in the data center, internet and data communications and broader technology industries, including to any decline in investment in AI. Any such slowdown or adverse development could lead to reduced corporate IT spending or reduced demand for data center space. Reduced demand could also result from business relocations, including to areas that we do not currently serve. Changes in industry practice or in technology could also reduce demand for the physical data center space we provide. Our financial condition, results of operations, cash flow, cash available for distribution, and ability to satisfy any future debt service obligations could be materially adversely affected as a result of any or all of these factors.

***Any delays or unexpected costs developing our existing space, developable land or newly acquired properties may delay and harm our growth prospects, future operating results and financial condition.***

We are currently in the process of repurposing our Ward County property and we may in the future continue to build out additional HPC/AI, enterprise, or other data center facilities on a speculative basis at significant cost. Our successful development of this and future projects is subject to many risks, including those associated with:

● delays in construction or changes to the development plans or specifications;

● financing availability, including our ability to obtain construction financing or permanent financing, or increases in interest rates or credit spreads;

● delays or denials of entitlements or permits, including zoning, siting, utility and other permits, or other delays resulting from requirements of public agencies and utility companies;

● budget overruns, increased prices for raw materials or building supplies, or lack of availability and/or increased costs for specialized data center components, including long lead time items such as transformers or generators;

● construction site accidents and other casualties;

● labor availability, costs, disputes and work stoppages with contractors, subcontractors or others that are constructing the project;

● failure of contractors to perform on a timely basis or at all, or other misconduct on the part of contractors;

● access to sufficient power and related costs of providing such power to our customers;

● environmental issues;

● supply chain constraints;

● fire, flooding, earthquakes and other natural disasters;

● pandemics; and

● geological, construction, excavation and equipment problems.

Development activities, regardless of whether they are ultimately successful, also typically require a substantial portion of our management's time and attention. This may distract our management from focusing on other operational activities of our business. If we are unable to complete development projects successfully, our business may be adversely affected.

[**Table of Contents**](#C_001)

***We may be unable to purchase or lease vacant or development space, renew leases, or re-lease space as leases expire.***

We may continue to add new space to our development inventory and to continue to develop additional space from this inventory. A portion of the space that we develop may be developed on a speculative basis, meaning that we do not have a signed customer agreement for the space when we begin the development process. We cannot assure you that once we have developed space or land we will be able to successfully lease it at all, or at rates we consider favorable or expected at the time we commenced development. Further, once development of a data center facility is complete, we incur certain operating expenses even if there are no customers occupying any space. If we are not able to complete development in a timely manner or successfully lease the space that we develop, if development costs are higher than we currently estimate, or if rental rates are lower than expected when we began the project or are otherwise undesirable, our financial condition, results of operations, cash flow, cash available for distribution and ability to satisfy our debt service obligations could be materially adversely affected.

We may also develop space specifically for customers pursuant to agreements signed prior to beginning of the development process. In those cases, if we fail to meet our development obligations under those agreements, these customers may be able to terminate the agreements and we would be required to find a new customer for this space. In addition, in certain circumstances we may lease data center facilities prior to their completion. If we fail to complete the facilities in a timely manner, the customer may be entitled to terminate its agreement, seek damages or penalties against us or pursue other remedies and we may be required to find a new customer for the space.

***As we continue to pursue expansion efforts and invest in our digital infrastructure assets, there may not be sufficient customer demand in the future to realize expected returns on these investments.***

We expect to seek to expand our digital infrastructure footprint. In connection with our expansion plans, we may be required to commit significant operational and financial resources, but there can be no guarantee we will have sufficient customer demand in those markets to support these assets once they are built. This risk may be greater in a market where we have not operated previously. Consequently, if any of our properties have significant vacancies for an extended period of time, our results of operations and business and financial condition will be adversely affected, the impact of which could be material. In addition, unanticipated technological changes could affect customer requirements for data centers, and we may not have built such requirements into our new facilities. If any of these developments or contingencies were to occur, it could make it difficult for us to realize expected or acceptable returns on our investments.

***Our new services and changes to existing services could fail to attract or retain users or generate revenue and profits, or otherwise adversely affect our business.***

Our ability to retain, increase, and engage our customer base and to increase our revenue depends heavily on our ability to continue to evolve our existing services and to create successful new services, both independently and in conjunction with developers or other third parties. We may introduce significant changes to our existing services or acquire or introduce new and unproven services, including using technologies with which we have little or no prior development or operating experience. These efforts, including the introduction of new services or changes to existing services, may result in new or enhanced governmental or regulatory scrutiny, litigation, ethical concerns, or other complications that could adversely affect our business, reputation, or financial results. If our new services fail to engage users or developers, or if our business plans are unsuccessful, we may fail to attract or retain users or to generate sufficient revenue, operating margin, or other value to justify our investments, and our business may be adversely affected.

***If we incorrectly estimate our capacity requirements and related capital expenditures, our results of operations could be adversely affected.***

We are continuously evaluating our capacity requirements in order to effectively manage our capital expenditures and operating results. However, we may be unable to accurately project our future capacity needs or sufficiently allocate resources to address such needs. If we underestimate these requirements, we may not be able to provide sufficient service to existing customers or may be required to limit new customer acquisition, both of which may materially and adversely impair our results of operations.

***Even if we have additional space available for lease at any one of our data centers, our ability to lease this space to existing or new customers could be constrained by our ability to provide sufficient electrical power.***

As current and future customers increase their power footprint in our data centers over time, the corresponding reduction in available power could limit our ability to increase occupancy rates or network density within our existing data centers. Furthermore, our aggregate maximum contractual obligation to provide power and cooling to our customers may exceed the physical capacity at such data centers if customers were to quickly increase their demand for power and cooling. If we are not able to increase the available power and/or cooling or move the customer to another location within our data centers with sufficient power and cooling to meet such demand, we could lose the customer as well as be exposed to liability under our customer agreements. In addition, our power and cooling systems are difficult and expensive to upgrade. Accordingly, we may not be able to efficiently upgrade or change these systems to meet new demands without incurring significant costs that we may not be able to pass on to our customers. Any such material loss of customers, liability or additional costs could adversely affect our business, financial condition and results of operations.

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<u>Risks Related to Our Cryptocurrency Mining Business</u>

***We may be unable to purchase miners at scale or face delays or difficulty in obtaining new miners at scale, which could materially and adversely affect our business, financial condition, and results of operations.***

 ****

In some historical periods the industry has experienced, and we expect may experience again in the future, a scarcity of advanced mining machines, as few manufacturers are capable of producing a sufficient number of mining machines of adequate quality to meet demand. We also face competition in acquiring miners from major manufacturers, and at any given time, miners may only be available for pre-order months in advance. There may be periods of shortage in new miners available for purchase or delays in delivery schedules for new miner purchases. There is no assurance that manufacturers of miners or other equipment necessary for our business or our growth will be able to keep pace with demand, or potential surges in demand, for mining equipment. It is uncertain how manufacturers will respond to increased global demand and whether they will be able to fulfill purchase orders fully and in a timely manner. In the event that manufacturers of miners or other suppliers are not able to keep pace with, or fail to satisfy, demand, we may not be able to purchase miners or other equipment in sufficient quantities or on the delivery schedules required to meet our business needs. Similarly, ongoing challenges to the global supply chain, coupled with increased demand for computer chips and semiconductors and resulting shortages, have resulted in production cost increases affecting the miners we employ in our bitcoin mining operations and other digital infrastructure equipment for our data centers, and their manufacturers have passed on increased production costs to purchasers like us. Additionally, should any suppliers default on purchase agreements with us, we may need to pursue recourse under international jurisdictions, which could be costly and time-consuming, with outcomes that are uncertain. Furthermore, there is no guarantee that we would succeed in recovering any deposits paid for such purchases (including advance deposits that may be required), which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We depend on third party manufacturers of miners, who in turn rely on components and raw materials that may be subject to price fluctuations or shortages, including application-specific integrated circuits ("ASICs") that have been subject to periods of significant shortage and where innovation has made certain models outdated or obsolete.***

 ****

We depend on third parties for equipment necessary to the operation of our business, including for new miners. There continue to be rapid advances (and announcements of coming future advances) in the power, speed, reliability and/or energy efficiency of miners, with the same or lower operating costs than older model miners, from various manufacturers. Some of these advances are in turn being driven by major advances in ASICs which are manufactured by a small number of global companies.

The volatility of ASIC prices has increased in recent years because of the global chip shortage, which began in 2020 and was exacerbated by the COVID-19 pandemic and subsequent supply chain issues, causing ASICs to be in short supply during this same period, according to various press reports. The ASIC is the key component of a mining machine as it determines the efficiency of the device. The production of ASICs typically requires highly sophisticated silicon wafers, which currently only a small number of fabrication facilities in the world are capable of producing. Since we have limited operating history, we may not be able to order ASICs or other equipment or services without advance payments because ASIC manufacturers and suppliers typically do not guarantee reserve capacity or supplies without substantial order deposits. Ongoing or future chip shortages could have a material adverse effect on our business, prospects, results of operations or financial condition.

Our ability to source new miners, ASICs, or other critical components for our facilities in a timely manner and at acceptable prices and quality levels is critical to our potential expansion. We are exposed to the risk of disruptions or other failures in the overall global supply chain for bitcoin mining and related data center hardware. This is particularly relevant to the ASIC production since there is only a small number of fabrication facilities capable of such production, which increases our risk exposure to manufacturing disruptions or other supply chain failures, but it also applies to other infrastructure hardware necessary for operating our facilities, such as transformers, cables, and switch gear.

***Our reliance on a third-party mining pool service provider for our mining revenue payouts may have a negative impact on our operations. For example, should the mining pool operator be subject to cyber-attacks, we may have limited recourse against the mining pool operator with respect to rewards to be paid to us.***

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We receive bitcoin mining rewards by contributing our computing power to a third-party mining pool operator, which uses this computing power to operate nodes and validate blocks on the blockchain. Mining pools allow miners to combine processing power, increasing their chances of solving a block and getting paid by the network. We currently utilize a mining pool that pays us bitcoin rewards based on a contractual "Full-Pay-Per-Share" ("FPPS") formula, which calculates payouts primarily based on the hashrate (i.e., the computing power) we contribute to the mining pool as a percentage of total network hashrate, along with other inputs. Under the FPPS formula, we are entitled to compensation with respect to each block that is mined on the Bitcoin network, even if that block is not successfully validated by the mining pool in which we participate. This payout formula is designed to provide a more predictable stream of income as opposed to a payout formula based only on blocks mined by the pool.

Should a mining pool operator's systems suffer downtime due to a cyber-attack, software malfunction, or other similar issues, these events will negatively impact our ability to mine and receive mining rewards.

Furthermore, we are dependent on the accuracy of the mining pool operator's record-keeping to accurately record the total processing power provided by us and other mining pool participants in order to assess the proportion of that total processing power we provide. While we have internal methods of tracking our contributed processing power, the mining pool operator uses its own recordkeeping to determine our proportion of a given reward. We have little means of recourse against mining pool operators if we determine the proportion of the reward paid out to us by the mining pool operator is incorrect, other than leaving the pool. If we are unable to consistently obtain accurate proportionate rewards from mining pool operators, we may experience reduced reward for our efforts, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Because our miners are designed specifically to mine bitcoin and may not be readily adaptable to other uses, a sustained decline in bitcoin's value could adversely affect our business and results of operations.***

We have invested substantial capital in acquiring miners using ASIC chips designed specifically to mine bitcoin using the 256-bit secure hashing algorithm ("SHA-256") as efficiently and as rapidly as possible on our assumption that we will be able to use them to mine bitcoin and generate revenue from our operations. Therefore, our mining operations focus exclusively on mining bitcoin, and our mining revenue is based on the value of the bitcoin we mine. The value of bitcoin could potentially decline due to the development and acceptance of competing blockchain platforms or technologies, including competing cryptocurrencies which our miners may not be able to mine. Accordingly, if the value of bitcoin declines and fails to recover, the revenue we generate from our bitcoin mining operations will likewise decline. Moreover, because our miners use these highly specialized ASIC chips, we may not be able to successfully repurpose them in a timely manner, if at all, to other uses following a sustained decline in bitcoin's value or if the bitcoin blockchain stops using SHA-256 for solving blocks. This would result in a material adverse effect on our business.

***Bitcoin mining algorithms may transition to proof of stake validation or other alternative validation methods over proof of work, which could make us less competitive and ultimately adversely affect our business.***

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Proof of stake is a possible alternative method for validating blockchain transactions. Should bitcoin's algorithm shift from a proof of work validation method to a proof of stake method, mining would require less energy and may render any company that maintains advantages in the current climate (for example, resulting from lower priced electricity, better mining equipment, or location of facilities) less competitive. Like proof of stake, other alternative consensus algorithms such as delegated proof of stake, proof of space time and proof of capacity are validation methods that require less energy consumption than proof of work. Furthermore, blockchain technologies are rapidly developing resulting in the possibility of innovation and the development of new validation methods. If the method by which bitcoin transactions are validated changes in a way that results in our losing our competitive advantage, we would lose the benefit of our capital investments. The occurrence of any such risk could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We may not adequately respond to rapidly changing technology, which may negatively affect our business.***

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Competitive conditions within the bitcoin mining industry require that we use sophisticated technology in the operation of our business. Blockchain technology generally, and bitcoin mining specifically, is characterized by rapid technological changes, new product introductions, enhancements, and evolving industry standards. New technologies, techniques, or products could emerge that might offer better performance than the software and other technologies that we currently utilize, and we may have to manage transitions to these new technologies to remain competitive. We may not be successful, generally or relative to our competitors in the bitcoin mining industry, in timely implementing new technology into our systems, or doing so in a cost-effective manner. During the course of implementing any such new technology into our operations, we may experience system interruptions and failures during such implementation. Furthermore, there can be no assurances that we will recognize, in a timely manner or at all, the benefits that we may expect as a result of implementing new technology into our operations. Failure to respond to any such rapidly changing technology could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Bitcoin mining equipment is subject to malfunction, technological obsolescence, and physical degradation.***

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Our miners are subject to malfunctions and normal wear and tear. At any point in time, a certain number of our miners are typically off-line for maintenance or repair. The physical degradation of our miners will require us to replace miners that are no longer functional. Because we utilize many units of the same miner models, if there is a model-wide component malfunction, whether in the hardware or the software that operates these miners, the percentage of offline miners could increase substantially, thereby disrupting our operations. Any major bitcoin miner malfunction out of the typical range of downtime for normal maintenance and repair could cause a significant disruption in our ability to continue mining, which could result in lower yields and harm our reputation and business.

A hardware replacement or upgrading process may require substantial capital investment and we may face challenges in doing so on a timely and cost-effective basis, which could put us at a competitive disadvantage. We may also be impacted by disruptions in the supply chain for cryptocurrency hardware. See "—We may be unable to purchase miners at scale or face delays or difficulty in obtaining new miners at scale, which could materially and adversely affect our business, financial condition, and results of operations." Any of the risks above could have a material adverse effect on our business, prospects, financial condition, and operating results.

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***Any long-term outage or limitation of the internet connection at our sites could materially impact our operations and financial performance.***

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Our ability to validate and verify bitcoin transactions, either directly or through a mining pool, is dependent on our ability to connect to the Bitcoin network or mining pools through the internet. Any extended downtime, limitations in bandwidth, or other constraints may affect our ability to contribute some or all of our computing power to the network or mining pools. We have backup internet connections at our operations, but any backup internet connections may not be sufficient to support all of our mining equipment in an affected location for the duration of the outage under certain network configurations. The effects of any such events could have a material adverse effect on our operating results and financial condition.

***The bitcoin reward for successfully solving a block is expected to halve several times in the future and bitcoin market value may not adjust to compensate us for the reduction in the reward we receive from our mining effort.***

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Halving is a process incorporated into many proof of work consensus algorithms that reduces the reward paid to miners over time according to a pre-determined schedule. This reduction in reward spreads out the release of bitcoin over a long period of time resulting in an even smaller number of bitcoin being mined. At a predetermined block, the mining reward is cut in half, hence the term "halving." For bitcoin, the reward was initially set at 50 bitcoin per block. This was cut in half to 25 on November 28, 2012 at block 210,000, then again to 12.5 on July 9, 2016 at block 420,000, and again to 6.25 on May 11, 2020 at block 630,000, and most recently to 3.125 on April 19, 2024 at block 840,000. This process will recur until the total amount of bitcoin in existence reaches 21 million, which is presently expected to occur around 2140, but could happen before that date. While the price of bitcoin has had a history of price fluctuations around the halving of its rewards, there is no guarantee that the price change will be favorable or would compensate for the reduction in mining reward. If a corresponding and proportionate increase in the trading price of bitcoin or proportionate technological advances making bitcoin mining more efficient does not follow these anticipated halving events, the revenue that we would earn from our bitcoin mining operations would see a corresponding decrease, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***If the bitcoin reward for solving blocks and the related transaction fees are not sufficiently high, we may not have an adequate incentive to continue mining and may cease mining operations, which would likely result in our failure to achieve profitability.***

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As the number of bitcoin awarded for solving a block in a blockchain decreases and/or if transaction fees for bitcoin mining are not sufficiently high, the ability of miners like us to achieve profitability would be adversely affected. Decreased bitcoin rewards for solving blocks may adversely affect our and other miners' incentive to expend processing power to solve blocks, and ultimately may cause us and other miners to cease mining operations. Mining operators ceasing operations would reduce the collective processing power on the network, which would adversely affect the confirmation process for transactions (i.e., temporarily decreasing the speed at which blocks are added to a blockchain until the next scheduled adjustment in difficulty for block solutions) and make the Bitcoin network more vulnerable to a malicious actor or botnet obtaining control in excess of 50% of the processing power active on a blockchain, potentially permitting such actor or botnet to manipulate a blockchain in a manner that adversely affects our activities or the market value of bitcoin. A reduction in confidence in the confirmation process or processing power of the network could result and might be irreversible. Such events could have a material adverse effect on our ability to continue to pursue our strategy at all, which in turn could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Our bitcoin holdings are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.***

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Historically, the bitcoin market has been characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies markets, relative anonymity, a developing regulatory landscape, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic, virtual form and decentralized network. During times of market instability, we may not be able to sell our bitcoin at favorable prices or at all. For example, a number of bitcoin trading venues temporarily halted deposits and withdrawals in 2022. As a result, our bitcoin holdings may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents. If we are unable to sell our bitcoin, enter into capital raising transactions, or otherwise generate funds using our bitcoin holdings, or if we are forced to sell our bitcoin at a significant loss, in order to meet our working capital requirements, our business and financial condition could be negatively impacted.

***Our cryptocurrency assets may be subject to loss, damage, theft, or restriction on access. Additionally, incorrect or fraudulent cryptocurrency asset transactions may be irreversible.***

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We currently hold custody of our bitcoin with regulated financial institutions that act as qualified custodians under U.S. federal banking oversight. These custodians employ custody frameworks that differ from traditional "cold wallet" storage models by utilizing a combination of biometric authentication, hardware security modules, and multi-party approval processes. In the case of Anchorage Digital Bank, digital assets are held within a federally chartered trust bank structure employing hardware-isolated private key management and multi-party computation approval workflows, while Fidelity Digital Assets holds bitcoin within omnibus wallets under its New York trust company charter, using hardware security modules, multi-person authorization for transactions, and partial offline storage for long-term safekeeping. These architectures are designed to eliminate single points of failure and provide both strong protection and secure access to assets on demand. While these systems enhance operational efficiency and aim to mitigate many of the risks associated with traditional cold wallet storage and single-operator key control, they do not eliminate all risks.

Our cryptocurrency assets may be an appealing target to hackers or malware distributors seeking to destroy, damage, or steal such cryptocurrency assets. Hackers or malicious actors may attempt to steal bitcoin, such as by attacking the Bitcoin network's source code, exchange miners, nodes, third-party platforms, storage locations or software, our general computer systems or networks, by means of phishing or other human-based attacks, or by other means. We may be unable to prevent loss, damage, or theft, whether caused intentionally, accidentally, or by act of God. Access to our cryptocurrency assets could also be restricted by natural events (such as an earthquake or flood causing an outage in connectivity) or human actions (such as a terrorist attack). Any of these events could have a material adverse effect on our business, prospects, results of operations or financial condition. Further, it is possible that, through computer or human error, theft, or criminal action, our digital assets could be transferred in incorrect amounts or to unauthorized third parties or accounts. In general, bitcoin transactions are irrevocable; stolen or incorrectly transferred cryptocurrency assets may be irretrievable, and we may have extremely limited or no effective means of recovering such bitcoin. As a result, any incorrectly executed or fraudulent bitcoin transactions could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***The loss or destruction of private keys required to access any bitcoin held in custody for our own account may be irreversible. If our custodians are unable to access the private keys associated with our bitcoin or if they experience a hack or other data loss relating to their ability to access any bitcoin, it could cause regulatory scrutiny, reputational harm, and other losses.***

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Bitcoin is generally controllable only by the possessor of the unique private key relating to the digital wallet in which the bitcoin is held. While blockchain protocols make public key addresses publicly available, private keys must be safeguarded and kept private to prevent a third party from accessing the associated bitcoin. To the extent that any of the private keys relating to any of the wallets containing our bitcoin is lost, destroyed, or otherwise compromised or unavailable, and no backup of the private key is accessible, our custodians will be unable to access the bitcoin held in the related wallet. Further, we cannot provide assurance that wallets containing our bitcoin will not be hacked or compromised. Cryptocurrency assets and blockchain technologies have been, and may in the future be, subject to security breaches, hacking, or other malicious activities. Any loss of private keys, hack or other compromise of digital wallets used to store our bitcoin could adversely affect our ability to access or sell our bitcoin and subject us to significant financial losses. As such, any loss of private keys due to a hack, employee or service provider misconduct or error, or other compromise by third parties could result in significant losses and could have a material adverse effect on our business, prospects, results of operations or financial condition. The insurance or indemnity provisions of our custody agreements, or other agreements, with a custodian who holds our bitcoin may not cover any such losses.

***We may be subject to various additional risks associated with our bitcoin held by third-party custodians.***

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We have implemented various measures that are designed to secure the bitcoin we hold, including storing substantially all of the bitcoin we own in custody accounts at Anchorage Digital Bank and Fidelity Digital Assets, and negotiating contractual arrangements intended to safeguard our bitcoin and establish that our property interest in custodially-held bitcoin is not subject to claims of our custodians' creditors.

However, it is possible that bitcoin stored with even the most qualified custodians and exchanges may be subject to hacking and thefts. See "—Our cryptocurrency assets may be subject to loss, damage, theft, or restriction on access. Additionally, incorrect or fraudulent cryptocurrency asset transactions may be irreversible." For example, in March 2025 the cryptocurrency asset exchange ByBit was the subject of a hack in which over $1.5 billion of customer cryptocurrency assets were lost. While we do not use ByBit as a custodian or hold our bitcoin on an exchange, and ByBit was ultimately able to make its customers whole through use of reserves and insurance policies, there is no contractual guarantee that our custodians will do the same. The insurance policies of our third-party custodians, which cover losses of bitcoin up to an aggregate amount of $200 million across all of its custodial arrangements may cover only a fraction of the value of the entirety of our cryptocurrency holdings, and there can be no guarantee that such insurance will be maintained as part of the custodial services we have or that such coverage will cover losses with respect to our bitcoin.

In addition, we believe that existing law and the terms and conditions of our contractual arrangements with our custodians would not result in the bitcoin held by our custodians being considered part of the custodian's bankruptcy estate were the custodian to file for bankruptcy. Applicable insolvency law is not fully developed with respect to the holding of cryptocurrencies in custodial accounts, but it is possible that a bankruptcy court or trustee could take the view that we are a general unsecured creditor of the custodian, inhibiting our ability to exercise ownership rights with respect to such cryptocurrency assets. For example, a bankruptcy court in Delaware ruled on July 18, 2025 that the cryptocurrencies held by Prime Trust LLC, a Nevada trust company and a subsidiary of Prime Core Technologies Inc., on behalf of users would be distributed proportionately to all unsecured creditors as such assets were part of the debtors' bankruptcy estate because of commingling between customer accounts and those of debtors. Any such outcome could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Cryptocurrency assets held by us are not subject to FDIC or SIPC protections.***

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Bitcoin we hold with our custodians and transact with our trade execution partners does not enjoy the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Thus, in the event of an insolvency of one of our custodians, we will not be protected by these schemes.

***Our bitcoin strategy may subject us to regulatory and other risks.***

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Our bitcoin holdings do not serve as collateral for any indebtedness as of the date of this prospectus. We may also consider pursuing strategies to create income streams or otherwise generate funds using our bitcoin holdings. These types of bitcoin-related transactions are the subject of enhanced regulatory oversight. These and any other bitcoin-related transactions we may enter into, beyond simply mining, acquiring and holding bitcoin, may subject us to additional regulatory compliance requirements and scrutiny, including under federal and state money services regulations, money transmitter licensing requirements and various commodity and securities laws and regulations.

On March 17, 2026, the SEC and Commodities Futures Trading Commission ("CFTC") issued a new interpretive release (SEC Interpretive Rel. 33-11412) entitled Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets (the "Interpretive Release"). In the Interpretive Release, the SEC significantly clarified its views on the application of the federal securities laws to certain types of crypto assets and transactions involving crypto assets. The Interpretive Release classifies crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities. Applying the traditional Howey test, the Interpretive Release explains that, in the SEC's interpretation, digital commodities, digital collectibles, digital tools, and stablecoins will generally not be considered securities so long as they are not the subject of an "investment contract," which is defined as any contract, transaction, or scheme whereby a person invests money in a common enterprise and reasonably expects profits to be derived from the efforts of others.

Under the Interpretive Release, a digital commodity is a crypto asset that is intrinsically linked to and derives its value from the programmatic operation of a crypto system that is functional, as well as supply and demand dynamics, rather than from the expectation of profits from the essential managerial efforts of others. Specific examples of digital commodities named by the SEC in the Interpretive Release include Bitcoin, Litecoin, and Dogecoin, among several others. The Interpretive Release also addresses several types of digital asset activities, including protocol mining and staking. Protocol mining on a proof-of-work network, either individually or as part of a pool, will generally not require the registration of transactions under the Securities Act, as the miners contribute their own computational resources in exchange for crypto asset rewards.

While the Interpretive Release provides comfort that the SEC does not view Bitcoin and certain other digital assets we hold or plan to hold as securities in and of themselves, certain transactions in such digital assets may nonetheless be considered investment contracts, and thus securities for purposes of the federal securities laws. The Interpretive Release provides further comfort that specific transactions in non-securities digital assets, such as certain staking and mining services, would not be considered investment contracts. However, the Interpretive Release does not discuss all digital asset-related activities and transactions that we may undertake, and it is possible that certain of those activities or transactions could be determined to involve an investment contract, and thus, the holding, offer or sale of a security by us for purposes of federal securities laws. Moreover, the Interpretive Release represents the interpretation of the SEC only, and thus is not binding on any other person (including private litigants) nor dispositive of how a court applying the U.S. federal securities may evaluate the regulatory characterization of any particular digital asset. Accordingly, although it provides improved comfort and clarity, the Interpretive Release is not dispositive and there remains regulatory risk and uncertainty regarding the U.S. regulatory treatment of digital assets, including Bitcoin.

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<u>Risks Related to All of Our Operations</u>

***We may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power (including as a result of failure to obtain necessary approvals).***

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Any power outages, shortages, capacity constraints or significant increases in the cost of power may have an adverse effect on our business, prospectus, results of operations and financial condition.

We rely on third parties, third party infrastructure, governments, and global supplies to provide a sufficient amount of power to maintain our digital infrastructure solutions and bitcoin mining operations to meet the needs of our current and future digital infrastructure solutions customers. Any limitation on the delivered energy supply could limit our ability to operate our bitcoin mining and HPC/AI data centers. These limitations could have a negative impact or limit our ability to grow our business, which could negatively affect our financial performance and results of operations. HPC/AI data centers require access to significant quantities of electricity. Limitations on generation, transmission and distribution may limit our ability to obtain sufficient power capacity for potential expansion sites or existing markets. Utility companies may impose onerous operating conditions to any approval or provision of power or we may experience significant delays and substantial increased costs to provide the level of electrical service required by our current or future data center designs.

***Failure of critical systems at the facilities operated by us or third parties could have a material adverse effect on our business, prospects, financial condition, and results of operations.***

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The critical systems at the facilities where our miners are located, whether operated by us or third parties, are subject to failure. Any such failure, including a breakdown in critical plant, equipment or services, routers, switches or other equipment, power supplies or network connectivity, power loss, equipment failure, human error and accidents, network connectivity downtime and fiber cuts, security breaches, animal incursions, water damage, extreme temperatures, public health emergencies, terrorism, fire, earthquake, hurricane, tornado, flood and other natural disasters, whether or not within our control, could result in damaged equipment, significant business disruption, and reduced revenue. Frequent or persistent interruptions in our facilities could cause current or potential partners to believe that our systems are unreliable, leading them to switch to our competitors or to avoid or reduce the use of our services, and could permanently harm our reputation and brand. Moreover, to the extent that any system failure or similar event results in damage to our business partners, these partners could seek significant compensation or contractual penalties from us for their losses. Those claims, even if unsuccessful, would likely be time-consuming and costly for us to address. Problems with the reliability or security of our systems would harm our reputation, and damage to our reputation and the cost of remedying these problems could negatively affect our business, prospects, results of operations or financial condition. The destruction or severe impairment of any of the facilities operated by us or third parties could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We depend on third parties, including electric grid operators, and electric utility providers and may be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power.***

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Any power outages, shortages, capacity constraints or significant increases in the cost of power may have an adverse effect on our business and our results of operations. We may be harmed by increased costs to procure power, prolonged power outages shortages or capacity constraints as well as insufficient access to power. Any power outages, shortages, capacity constraints or significant increases in the cost of power may have a material adverse effect on our business, prospects, our results of operations or financial condition.

We depend on third parties, including electric grid operators and electric utility providers, third party infrastructure, governments and global supplies to provide a sufficient amount of power to maintain our HPC data center and bitcoin mining operations to meet the needs of our current and future HPC data center customers. Any limitation on the delivered energy supply could limit our ability to operate our bitcoin mining and HPC data centers. HPC data centers require access to significant quantities of electricity. Limitations on generation, transmission and distribution may limit our ability to obtain sufficient power capacity for potential expansion sites or existing markets. Utility companies may impose onerous operating conditions to any approval or provision of power or we may experience significant delays and substantial increased costs to provide the level of electrical service required by our current or future data center designs. A significant concentration of our current operations are in Texas where ERCOT, a non-profit corporation subject to oversight by the Public Utility Commission of Texas and the Texas Legislature, manages the electric utility grid and therefore, determines the prices of electricity in Texas. Oncor Electric Delivery Company LLC ("Oncor"), and TNMP, for-profit electricity transmission and distribution businesses regulated by the Public Utility Commission of Texas, physically deliver electricity to our sites in Texas. We require approvals from ERCOT, Oncor, and/or TMNP to expand our operations in Texas, which can be onerous to obtain. If either of them were to delay or deny required approvals, our business plans could be disrupted (including to increase the capacity of our Ward County property). We also require approvals from both ERCOT and Oncor to continue to operate our current bitcoin mining operations. If either of them were to change their policies or contracts required to operate bitcoin mining facilities, our operations could be disrupted. Any of these risks could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We have a significant concentration of our operations in Texas and, thus, are particularly exposed to changes in the competitive landscape, regulatory environment, market conditions and natural disasters in that state.***

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We currently operate all of our digital infrastructure site and owned and leased facilities in Texas, which represents a significant concentration of our operations. Consequently, we are particularly exposed to changes in the competitive landscape, regulatory environment, market conditions, and natural disasters in that state. Texas, through its regulatory and economic incentives, has encouraged Bitcoin mining companies to locate their operations in the state. As such, we may face increased competition in Texas for suitable Bitcoin mining data center sites and skilled workers. Additionally, if the regulatory and economic environment in Texas were to become less favorable to bitcoin mining companies, including by way of increased taxes, our heavy concentration of sites in Texas means our business, prospects, financial condition, or operating results could be materially adversely affected. Finally, Texas is not connected to a power grid outside of the state. If Texas faces other unforeseen events, such as severe weather, natural disasters, or environmental-related issues, that cause extended periods of disrupted power (as happened during an ice storm in February 2021), our operations may be significantly disrupted. These natural disasters and weather-related disturbances could have a material adverse effect on our business, prospects, results of operations or financial condition.

Our property insurance may cover all or a portion of the replacement cost of any loss or damage to our facilities, including miners, up to a $50 million policy limit but does not cover any business interruption of our activities. Our insurance therefore may not be adequate to cover the losses we suffer as a result of any of these events. In the event of an uninsured loss or a loss in excess of insured limits at any of our facilities, such facilities may not be adequately repaired in a timely manner, or at all, and we may lose some or all of the future revenues anticipated to be derived from such facilities.

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***We participate in energy demand response programs in Texas and may be required to temporarily suspend mining operations prior to or during periods of high energy grid strain, which could materially harm our business.***

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In our bitcoin mining operations, we are a non-mission critical operation under the current rules and policies of ERCOT, TNMP and Oncor and we therefore are eligible to, and do, participate in demand response programs. As a result, we may be required to temporarily shut off operations to reduce demand and stabilize the electrical grid for mission critical operations, when necessary, such as in extreme weather events. The State of Texas currently distributes funds to offset foregone operational revenue to bitcoin miners required to shut off operations as part of demand response programs. Payments or credits from demand response programs are included as a reduction to our cost of revenues in our income statement. If the State of Texas were to restrict benefits to bitcoin miners required to temporarily suspend operations, the resulting periods of lost revenue could have a material adverse effect on our business, prospects, results of operations or financial condition.

***We may not be able to compete with other companies, many of whom have greater resources and experience.***

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We may not be able to compete successfully against present or future competitors as our resources may be limited in comparison with larger providers of similar services. The digital infrastructure and cryptocurrency mining industries have attracted various high-profile and well-established operators, some of which have substantially greater liquidity and financial resources than we may have.

Additionally, the number of digital infrastructure and bitcoin and other cryptocurrency mining companies has increased in recent years. With the limited resources that we have available, we may experience difficulties in expanding and improving our network of computers to remain competitive. Competition from existing and future competitors, particularly those that have access to competitively priced energy, including energy providers themselves, could result in our inability to secure acquisitions and partnerships that we may need to expand our business in the future. For example, competitors could offshore their business to, or commence operations in, countries where energy may be significantly less expensive, such as in the Middle East. This competition from other entities with greater resources, experience, and reputations may result in our failure to maintain or expand our business, as we may never be able to successfully execute our business plan. If we are unable to acquire new miners, or if our cost for new miners is excessively high, we may not be able to keep up with our competitors. If we are unable to expand and remain competitive, our business could be negatively affected, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Our operations and strategic goals are capital-intensive. We may be unable to access sufficient additional capital for future strategic growth initiatives.***

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Investments in digital infrastructure development and leasing and the expansion of our miner fleet and our existing facilities are capital-intensive projects, and we anticipate that future strategic growth initiatives will likewise continue to be capital-intensive. We expect to be able to raise additional capital to fund these and other future strategic growth initiatives; however, we may be unable to do so in a timely manner, in sufficient quantities, or on terms acceptable to us, if at all. If we are unable to raise the additional capital needed to execute our future strategic growth initiatives, we may be less competitive in our industry and the results of our operations and financial condition may suffer, which may, in turn, materially and adversely affect the market price for our securities.

***Our operations may be adversely affected by energy shortages and rising energy prices.***

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Our mining operations require significant amounts of energy. Increasing regional, national and global demand for energy and the limited growth of new energy sources are affecting the available supply of energy. A variety of factors, including the proliferation of hyperscale facilities and data centers and the widespread adoption of energy intensive technologies like AI, electric vehicles and industrial or manufacturing operations, could result in a limited supply of energy, intensive competition for scarce resources (including renewable sources) of energy and/or sharply escalating energy prices. Additionally, changes in energy laws and regulations in various jurisdictions may impact energy allocation rules and the ability to access energy. These limitations on energy supply and increased energy prices may increase our cost to earn bitcoin to a point that our revenues, cost of doing business, results of operations, and operating cash flows are negatively impacted.

***Our financial performance may be affected by price fluctuations in the power market, as well as other market factors that are beyond our control.***

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Our revenues, cost of doing business, results of operations, and operating cash flows generally may be impacted by price fluctuations in the power market and other market factors beyond our control. Market prices for power, capacity, and other ancillary services are unpredictable and tend to fluctuate substantially. Unlike most other commodities, electric power can only be stored on a very limited basis and for a very limited time, and generally must be produced concurrently with its consumption. As a result, power prices are subject to significant volatility due to supply and demand imbalances, especially in the day-ahead and spot markets.

Long- and short-term power prices may also fluctuate substantially due to other factors outside of our control, including:

● environmental regulations and legislation;

● obtaining required regulatory approvals to increase energy capacity;

● electric supply disruptions, such as plant outages and transmission disruptions;

● changes in power transmission infrastructure;

● fuel transportation capacity constraints or inefficiencies;

● changes in law, including judicial decisions;

● weather conditions, such as extreme weather conditions and seasonal fluctuations, including the effects of climate change;

● changes and volatility in commodity prices and the supply of commodities, including but not limited to natural gas, fuel, coal and oil;

● changes in the demand for power or in patterns of power usage, including the potential development of demand-side management tools and practices, distributed generation, and more efficient end-use technologies;

● development of new fuels, new technologies and new methods for producing power;

● economic and political conditions;

● supply and demand for energy commodities;

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● supply chain disruption of fuel or of electrical components needed to transmit energy;

● availability of competitively priced alternative energy sources; and

● changes in capacity prices and capacity markets.

Such factors and the associated fluctuations in power and prices could affect wholesale power generation profitability and the cost of power for our bitcoin mining.

***Cyber-attacks, data breaches or malware may disrupt our operations and trigger significant liability for us, which could harm our operating results and financial condition, damage our reputation, or otherwise materially harm our business.***

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We rely on our own and third party computer systems, hardware, software, technology infrastructure and online sites and networks for both internal and external operations that are critical to our business (collectively, "IT Systems"). We experience cyber-attacks, such as phishing, and other attempts to gain unauthorized access to our systems on a regular basis, and we anticipate continuing to be subject to such attempts. While to date no incidents have had a material impact on our operations or financial results, we cannot guarantee that material incidents will not occur in the future. We face numerous and evolving cybersecurity risks that threaten the confidentiality, integrity and availability of our IT Systems and confidential information. The volume and sophistication of cyber-attacks may increase, including if AI capabilities are implemented by malicious actors that can circumvent security controls, evade detection and remove forensic evidence, and there is an ongoing risk that some or all of our bitcoin could be lost or stolen as a result of one or more of these incursions.

Any integration of AI in our or any third party's operations, products or services is expected to pose new or unknown cybersecurity risks and challenges. As we increase in size, we may become a more appealing target of hackers, malware, cyber-attacks, or other security threats, and, despite our implementation of strict security measures and frequent security audits, it is impossible to eliminate all vulnerabilities. For instance, we may not be able to ensure the adequacy of the security measures employed by third parties, such as our service providers. Likewise, our IT Systems and confidential information are vulnerable to a range of cybersecurity risks and threats, including malicious code embedded in open-source software, or misconfigurations, "bugs" or other vulnerabilities in commercial software that is integrated into our (or our service providers') IT systems, products or services. Additionally, though we provide cybersecurity training for employees, we cannot guarantee that we will not be affected by further phishing attempts. Efforts to limit the ability of malicious actors to disrupt the operations of the internet or undermine our own security efforts may be costly to implement and may not be successful. Such breaches, whether attributable to a vulnerability in our systems or otherwise, could result in claims of liability against us, damage our reputation, and materially harm our business.

As with any computer code generally, flaws in digital asset cryptographic primitives such as hash functions, Merkle trees, and digital signatures or similar cryptographic methods, and the implementations of any digital asset protocol software, including those used by Bitcoin, have been and may be vulnerable to exploitation by malicious actors. Several such errors and defects have been found in multiple cryptocurrency networks, including Bitcoin, previously, including those that would have allowed attackers to shut down a cryptocurrency network through denial of service, disable functionality for users and expose users' information, or take or create cryptocurrency balances. There can also be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our IT Systems and confidential information. Our devices, as well as our miners, computer systems, and those of third parties that we use in our operations, may be vulnerable to cyber-security risks, including cyber-attacks such as viruses and worms, phishing attacks, denial-of-service attacks, physical or electronic break-ins, employee theft or misuse, and similar disruptions from unauthorized tampering with our miners and computer systems or those of third parties that we use in our operations. We could be hacked and certain of our assets, including bitcoin, could be stolen. Any adverse impact to the availability, integrity, or confidentiality of our IT Systems or confidential information can result in legal claims or proceedings (such as class actions), regulatory investigations and enforcement actions, fines and penalties, negative reputational impacts that cause us to lose existing or future customers, and/or significant incident response, system restoration or remediation and future compliance costs. Such events could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin that we mine or otherwise acquire or hold.

***We have in the past, and may in the future, engage in derivatives transactions, including for the purpose of hedging our exposure to bitcoin prices, and such transactions may expose us to material risks that could adversely impact our business, operating results, and financial condition.***

Derivative transactions are financial contracts whose value depends on, or is derived from, the price or level of some other underlying product, asset, rate, or index, such as the value of a particular commodity. Derivatives transactions include, but are not limited to, swaps, options, and futures. Derivatives may be employed both for the purpose of obtaining investment exposure and for the purpose of hedging or mitigating exposure to a particular asset or risk. Derivative transactions are complex, carry their own special risks, and may expose us to significant risk of loss.

We have in the past, and may in the future, engage in derivative transactions. For example, we may, but are not obligated to, enter into derivative transactions to seek to protect against reductions in the market price of bitcoin. Where derivative transactions are entered into with the intention of reducing or mitigating our exposure to a particular asset or risk, there is no guarantee that such transactions will be effective to eliminate or reduce our exposure to the risks being hedged, including due to potential imperfect correlation between the derivative instrument and the relevant risk or underlying asset. Moreover, if we do engage in derivative transactions for hedging purposes, such transactions may also limit the opportunity for gain if the risk being hedged does not materialize. Our success in utilizing derivative transactions for hedging purposes will be subject to our ability to correctly predict market fluctuations and movements and our ability to monitor any such transactions that we enter into. Therefore, while we may enter into such transactions to seek to reduce risks, unanticipated market movements and fluctuations may result in a poorer overall performance than if we had not entered into such transactions.

In addition, derivatives may carry a high degree of embedded leverage and consequently, are highly price sensitive to changes in interest rates, government policies, economic forecasts, and other factors which generally have a much less direct impact on the price levels of the underlying instruments. The risks generally associated with derivatives include the risk that: (1) the value of the derivative will change in a detrimental manner; (2) before purchasing a derivative, we will not have the opportunity to observe its performance under all market conditions; (3) counterparty credit risk, in that another party to the derivative (especially where the derivative is entered into on a bilateral or over-the-counter basis) may fail to comply with the terms of the derivative contract; (4) liquidity risk, in that the derivative may be difficult to purchase or sell or we may otherwise encounter difficulties exiting or closing a position; and (5) the derivative may involve leverage, such that adverse changes in the value of the underlying asset could result in a loss substantially greater than the amount invested in the derivative itself or in heightened price sensitivity to market fluctuations. Moreover, derivatives transactions are subject to a range of regulatory requirements which may, in certain circumstances, require the Company to comply with mandatory central clearing and/or margin obligations. Such regulatory requirements may result in additional costs or otherwise affect the viability of Company's use of derivatives, whether for purposes of hedging or monetization strategies, and there can be no assurance that such derivatives activities will not be subject to additional or more stringent regulations in the future.

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**Risks Related to the Bitcoin Industry**

***Our success depends on external factors affecting the Bitcoin industry.***

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The Bitcoin industry has historically been subject to various risks relating to bitcoin, as an asset, which have adversely affected the market price of bitcoin. Ownership of bitcoin has, historically, been concentrated in a relatively small number of persons or entities that, collectively, hold a significant number of bitcoin (referred to as "whales" in the Bitcoin industry). While ownership of bitcoin has diversified significantly in recent years, whales continue to exist whose market activity (for example, sales of large numbers of bitcoin) could have an adverse effect on the demand for, and market price of, bitcoin, which could have an adverse effect on our business and results of operation. In addition, there has been an increase in the number of bitcoin treasury initiatives, where companies hold bitcoin on their balance sheet on a long-term basis in anticipation of price increases and as a reserve asset, and of bitcoin exchange-traded products which hold bitcoin and provide investors with exposure to it without requiring them to hold the bitcoin themselves. The rise of these vehicles, which hold bitcoin on a long-term basis, has reduced the supply of liquid bitcoin in the markets. Further, while larger, increasingly regulated exchanges with greater transparency and oversight have begun to proliferate, the bitcoin economy remains nascent and largely opaque. The venues for bitcoin transactions may experience greater operational problems and be exposed to a greater risk of facilitating unethical, fraudulent or illicit transactions (such as "wash trading"), than traditional financial markets and securities exchanges. Cryptocurrency trading platforms may also be susceptible to "front-running" activity, which is the process by which someone uses technology or market advantage to obtain prior knowledge of upcoming transactions allowing bad actors to take advantage of forthcoming price movement and make economic gains at the cost of those who introduced the transactions. Front-running is a frequent activity on centralized and decentralized cryptocurrency trading platforms. Further, venues for bitcoin transactions do not typically make complete information regarding their ownership structure, management teams, corporate practices, and regulatory compliance available to the public, who are, therefore, unable to verify the impartiality of such venues in respect of the bitcoin transactions they facilitate. As a result of such lack of regulation and transparency, as well as the risk posed by bitcoin whales, wash trading and front-running, the public may lose confidence in bitcoin transactions and the price integrity of the cryptocurrency, which could adversely affect the market price of bitcoin, perhaps materially, which would have an adverse impact on our business and results of operations.

***Additional bitcoin mining capacity from competing bitcoin miners will trigger increases in mining difficulty, and if we are unable to grow our hashrate at pace with the global network hashrate, our chance of earning bitcoin from our mining operations will decline.***

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The barriers to entry for new bitcoin miners are relatively low, which can give rise to additional network capacity from competing bitcoin miners. Generally, a bitcoin miner's chance of solving a block on the bitcoin blockchain and earning a bitcoin reward is a function of the miner's hashrate, relative to the global network hashrate. As greater adoption of bitcoin occurs, we expect that the demand for bitcoin will continue to increase, drawing more mining companies into the industry and thereby increasing the global network hashrate. The bitcoin protocol responds to increasing total hashrate by increasing the difficulty of bitcoin mining. If this difficulty increases at a significantly higher rate than we expect, we would need to increase our hashrate at the higher rate to maintain our market share and generate equivalent block rewards. Accordingly, to maintain our chances of earning new bitcoin rewards and remaining competitive in our industry, we must seek to continually add new miners to grow our hashrate at pace with the growth in the bitcoin global network hashrate. However, as demand has increased and scarcity in the supply of new miners has resulted, the price of new miners has increased sharply, and we expect this process to continue in the future as demand for bitcoin increases. Therefore, if the price of bitcoin is not sufficiently high to allow us to fund our hashrate growth through new miner acquisitions and if we are otherwise unable to access additional capital to acquire these miners, our hashrate may stagnate and we may fall behind our competitors. A decrease in our effective network hashrate market share would result in a reduction in our share of block rewards and transaction fees, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The impact of geopolitical and economic events, such as armed conflicts and changes in international trade policies, on macroeconomic conditions and our business, including the supply and demand for cryptocurrencies and volatility in energy prices, is uncertain.***

 

Geopolitical crises may motivate large-scale purchases of bitcoin and other cryptocurrencies, which could increase the price of bitcoin and other cryptocurrencies rapidly. Our business and the infrastructure on which our business relies is vulnerable to damage or interruption from geopolitical crises and economic downturns such as recessions, rising inflation, tariffs, social, political and economic risks, conflicts and acts of war, sanctions and other restrictive actions by the United States and/or other countries. Changes in legal, regulatory and trade policies and priorities from the U.S. government could increase market volatility and uncertainty, which could have an adverse impact on macroeconomic factors that affect our business. This may increase the likelihood of a subsequent price decrease as crisis-driven purchasing behavior dissipates, adversely affecting the value of our inventory following such downward adjustment. Such risks are similar to the risks of purchasing commodities in general uncertain times, such as the risk of purchasing, holding or selling gold. Alternatively, as an emerging asset class with limited acceptance as a payment system or commodity, global crises and general economic downturn may discourage investment in bitcoin as investors focus their investment on less volatile asset classes as a means of hedging their investment risk.

In addition, armed conflicts, wars, acts of terrorism, and other geopolitical instability may cause significant disruption to global energy markets, resulting in high volatility in fuel and other commodity prices, disruptions in energy supply chains, and constraints on the availability and delivery of fuels and other inputs necessary for electricity generation. The ongoing conflicts in Ukraine and the Middle East could adversely affect the price and availability of the fuels and other commodities we rely upon, as well as the infrastructure through which such fuels are delivered. Disruptions in energy supply or significant increases in energy costs resulting from such conflicts could increase our operating costs, reduce our margins, and impair our ability to deliver electricity to our customers on commercially acceptable terms. Instability and unrest arising from armed conflicts may also lead to economic sanctions, embargoes, and other restrictive measures that could further disrupt commodity markets and supply chains.

Global trade conditions and consumer trends that originated during the COVID-19 pandemic continue to persist and may also have long-lasting adverse impact on us and our industry. There are continued risks arising from new pandemics, epidemics or outbreaks of disease which may exacerbate port congestion and intermittent supplier shutdowns and delays, resulting in additional expenses to expedite delivery of new miners, as well as critical materials needed for our expansion plans. Further, miner manufacturers have been impacted by the constrained supply of the semiconductors used in the production of the highly specialized ASIC chips miners we rely on, and by increased labor costs to manufacture new miners as workforces and global supply chains may further be impacted by global outbreaks of various epidemics or disease, ultimately leading to continually higher prices for new miners. The global supply chain may also be materially impacted by recent significant changes to international trade policies and tariffs affecting imports and exports. A significant majority of the ASIC chips, processors and other advanced computing hardware necessary for our industries and the industries of our business partners are primarily manufactured in Taiwan, South Korea, Japan, and other jurisdictions that are subject to evolving U.S. trade policy. Tariffs or other trade restrictions can be announced with little or no advance notice, making it difficult to anticipate or mitigate their effects. Furthermore, retaliatory measures imposed by other countries in response to U.S. trade actions could further disrupt global supply chains. Thus, until the global supply chain crisis is resolved, and these extraordinary pressures are alleviated, we expect to continue to incur higher than usual costs to obtain and deploy new miners, and we may face difficulties obtaining the new miners we need at prices or in quantities we find acceptable, if at all, and our business and results of operations may suffer as a result.

As an alternative to fiat currencies that are backed by central governments, bitcoin, which is relatively new, is subject to supply and demand forces. How such supply and demand will be impacted by geopolitical and macroeconomic events is largely uncertain but could be harmful to us and investors in our Class A common stock. Political or economic crises may motivate large-scale acquisitions or sales of bitcoin either globally or locally. Such events could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin we mine or otherwise acquire or hold.

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***Enhanced tariff, import/export restrictions, or other trade barriers may have an adverse impact on global economic conditions.***

There have been, and continue to be, uncertainties with respect to the global economy and trade relations between the United States and other countries globally, including trade policies, treaties, tariffs, and customs duties and taxes. Implementation of more restrictive trade policies or the renegotiation of existing U.S. trade agreements or trade agreements of other countries where we procure supplies and materials for our digital infrastructure could negatively impact our business results of operations, cash flows, and financial condition. Tariffs, sanctions and other barriers to trade could adversely affect the business of our customers and suppliers, which could in turn negatively impact our net revenue and results of operations. If tariffs, trade restrictions or trade barriers are expanded or increased, then our exposure to future taxes and duties on imported products and components could be significant and could have a material effect on our financial results.

We cannot predict the extent to which the United States or other countries will impose new or additional quotas, duties, tariffs, taxes, or other similar restrictions upon the import of goods and services in the future, nor can we predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business. The continuing adoption or expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for our HPC data centers, our costs, our customers, our suppliers, and the U.S. economy, which in turn could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Banks and financial institutions vary in the services they provide to businesses that engage in blockchain technology or that accept cryptocurrencies as payment.***

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Although a number of significant U.S. banks and financial institutions allow customers to carry and invest in bitcoin, the acceptance and use by banks and other institutions of cryptocurrencies, including bitcoin, varies. This risk may be further exacerbated in the current environment in light of several high-profile bankruptcies in the cryptocurrencies industry, as well as recent bank failures, which have disrupted investor confidence in cryptocurrencies and led to a rapid escalation of oversight of the cryptocurrency industry. For example, certain banks have implemented enhanced know-your-customer and anti-money laundering requirements in connection with potential cryptocurrency customers. These enhanced requirements may make it more difficult or impossible for cryptocurrency-related companies to find banking or financial services. If we are unable to engage in traditional banking and custody arrangements with banking institutions, it would experience increased operating costs which could have a material adverse effect on our business, prospects, results of operations or financial condition.

Additionally, a number of companies and individuals or businesses associated with cryptocurrencies may have had and may continue to have their existing banking services discontinued with financial institutions in response to government action, particularly in China, where regulatory response to cryptocurrencies has been to exclude their use for ordinary consumer transactions. In May 2021, the Chinese government called for a crackdown on bitcoin mining and trading. In September 2021, Chinese regulators instituted the China Ban, which banned all cryptocurrency transactions. In January 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement on risks associated with cryptocurrency businesses, which, among other regulatory statements, led many U.S. banks to decline to provide banking services to cryptocurrency-related businesses. Although this and other limiting statements have been withdrawn in 2025, there is no guarantee that subsequent administrations could issue similar guidance, or that banks and other financial institutions could determine on their own that cryptocurrency-related businesses pose unsustainable risks.

The usefulness of bitcoin, the only cryptocurrency that we currently mine, as a payment system and the public perception of bitcoin could be damaged if banks or financial institutions were to close the accounts of businesses engaging in bitcoin and/or other cryptocurrency-related activities. This could occur as a result of compliance risk, cost, government regulation or public pressure. The risk applies to securities firms, clearance and settlement firms, national stock and derivatives on commodities exchanges, the over-the-counter market, and The Depository Trust Company, which, if any of such entities adopts or implements similar policies, rules or regulations, could negatively affect its relationships with financial institutions and impede our ability to convert bitcoin to fiat currencies. Such factors could have a material adverse effect on our ability to continue as a going concern or to pursue its strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The further development and acceptance of cryptocurrencies including bitcoin, which represent a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of cryptocurrencies may adversely affect an investment in us.***

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The use of cryptocurrencies to, among other things, buy and sell goods and services and complete transactions, is part of a new and rapidly evolving industry that employs cryptocurrencies, including bitcoin, based upon a computer-generated mathematical or cryptographic protocol. Large-scale acceptance of bitcoin as a means of payment has not, and may never, occur. The growth of this industry in general, and the use of bitcoin in particular, is subject to a high degree of uncertainty, and the acceptance of developing protocols may occur unpredictably and contribute to price volatility that could have a material adverse effect on our business, prospects, results of operations or financial condition.

Banks and other established financial institutions may refuse to process funds for bitcoin transactions, process wire transfers to or from bitcoin miners, bitcoin-related companies or service providers, or maintain accounts for persons or entities transacting in bitcoin or other cryptocurrencies. Conversely, a significant portion of bitcoin demand is generated by investors seeking a long-term store of value or speculators seeking to profit from the short- or long-term holding of the asset. Price volatility undermines the role of bitcoin as a medium of exchange, as retailers are much less likely to accept such a volatile asset as a form of payment. Market capitalization for bitcoin as a medium of exchange and payment method may always remain low. The relative lack of acceptance of bitcoin in the retail and commercial marketplace, or a reduction of such use, limits the ability of end users to use bitcoin to pay for goods and services. Such lack of acceptance or decline in acceptances could have a material adverse effect on our ability to pursue our business plan, which in turn could have a material adverse effect on our business, prospects, results of operations or financial condition.

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To the extent that we hold bitcoin on our balance sheet, a reduction in the value of that bitcoin could have a material adverse effect on our business, prospects, results of operations or financial condition.

Furthermore, between 2022 and 2023, some of the well-known cryptocurrency market participants, including Celsius Network LLC, Voyager Digital Ltd., Three Arrows Capital, Genesis Global Holdco, LLC, FTX Trading Ltd. ("FTX"), BlockFi Inc., Prime Trust and certain of their affiliates declared bankruptcy, which may over time have a significant impact on further development and acceptance of bitcoin and other cryptocurrencies as those bankruptcies exposed how unpredictable and turbulent the cryptocurrencies industry can be. These failures of important institutions in the cryptocurrency and bitcoin asset industry highlight the risk of systemic interconnectedness between major market participants and the effect it could have on the industry as a whole.

The closure or temporary shutdown of major cryptocurrency exchanges and trading platforms due to fraud or business failure, could disrupt investor confidence in bitcoin and other cryptocurrencies and lead to further regulation of bitcoin and/or bitcoin mining. All this in turn could have a negative impact on further development and acceptance of cryptocurrencies and cryptocurrencies, including bitcoin. Other factors that could affect further development and acceptance of cryptocurrencies and bitcoin include, but are not limited to:

● worldwide growth in the adoption and use of bitcoin as a medium to exchange;

● governmental and quasi-governmental regulation of bitcoin and its use, or restrictions on or regulation of access to and operation of the Bitcoin network or similar cryptocurrency systems;

● changes in consumer demographics and public tastes and preferences;

● the maintenance and development of the open-source software protocol of the Bitcoin network;

● the increased consolidation of contributors to the bitcoin blockchain through bitcoin mining pools;

● the availability and popularity of bitcoin and other cryptocurrencies and other forms or methods of buying and selling goods and services, including new means of using fiat currencies;

● the use of the networks supporting bitcoin and other cryptocurrencies for developing smart contracts and distributed applications;

● general economic conditions and the regulatory environment relating to bitcoin and other cryptocurrencies;

● environmental or tax restrictions, excise taxes or other additional costs on the use of electricity to mine bitcoin;

● an increase in bitcoin transaction costs and any related reduction in the use of and demand for bitcoin; and

● negative consumer sentiment and perception of bitcoin or other cryptocurrencies.

***Our operations, investment strategies and profitability may be adversely affected by competition from other methods of investing in bitcoin.***

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We compete with other users and companies that are mining bitcoin and other potential financial vehicles, including securities backed by or linked to bitcoin through entities similar to us. Market and financial conditions, and other conditions beyond our control, may make it more attractive to invest in other financial vehicles, or to invest in bitcoin directly, which could limit the market for our shares and reduce our liquidity. The emergence of other financial vehicles such as exchange traded products ("ETPs") and cryptocurrency treasury companies have been scrutinized by regulators and such scrutiny and the negative impressions or conclusions resulting from such scrutiny could be applicable to us and impact our ability to successfully pursue our strategy or operate at all, or to establish or maintain a public market for our securities. Such circumstances could have a material adverse effect on our ability to continue as a going concern or to pursue our strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin we mine, or bitcoin we otherwise acquire or hold for our own account.

***The rise of cryptocurrency treasury companies and cryptocurrency ETPs could increase price volatility in cryptocurrencies.***

Due to the recent increase in the number of other companies pursuing a cryptocurrency strategy in bitcoin as well as the rise of cryptocurrency ETPs, ownership of bitcoin may become more concentrated. The abandonment of cryptocurrency treasury strategies, the failure by such other companies to satisfy their debt or other financial obligations, market concerns as to the viability or creditworthiness of such companies, the loss or disposition of substantial bitcoin by such other companies, regulatory or legal judgments or actions against such other companies due to their adoption of a cryptocurrency treasury strategy, or any other similar actions or negative outcomes impacting such other companies, whether due to any of the various risk factors described herein or for any other reason, could cause a significant decrease in the price of bitcoin. In addition, cryptocurrency ETPs may be required to sell their holdings of bitcoin in order to fund redemptions. Any sales of large numbers of bitcoin by these other parties could have an adverse effect on the demand for, and market price of, bitcoin, which could have an adverse effect on our business, prospects, results of operations or financial condition.

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***Forks in the bitcoin blockchain may occur in the future, which may affect the value of bitcoin held by us.***

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To the extent that a significant majority of users and miners on a cryptocurrency network install software that changes the cryptocurrency network or properties of a cryptocurrency, including the irreversibility of transactions and limitations on the mining of new cryptocurrencies, the cryptocurrency network would be subject to new protocols and software. However, if less than a significant majority of users and miners on the cryptocurrency network consent to the proposed modification, and the modification is not compatible with the software prior to its modification, the consequence would be what is known as a "fork" of the network, with one prong running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of the cryptocurrency running in parallel that lack interchangeability and necessitate an exchange-type transaction to convert currencies between the two forks. Additionally, it may be unclear following a fork which fork represents the original asset and which is the new asset. Different metrics adopted by industry participants to determine which is the original asset may include: referring to the wishes of the core developers of a cryptocurrency, which blockchains have the greatest amount of hashing power contributed by miners or validators; or which blockchains have the longest chain.

The Ethereum network, another blockchain, previously forked in 2016 as a consequence of a hack by a decentralized autonomous organization. Hard forks can lead to new security concerns. For instance, when the Bitcoin Cash and Bitcoin Cash SV network split in November 2018, "replay" attacks, in which transactions from one network were rebroadcast on the other network to achieve "double-spending," plagued platforms that traded bitcoin, resulting in significant losses to some cryptocurrency trading platforms. Another possible result of a hard fork is an inherent decrease in the level of security due to the splitting of some mining power across networks, making it easier for a malicious actor to exceed 50% of the mining power of that network, thereby making cryptocurrency networks that rely on proof-of-work more susceptible to attack in the wake of a fork. A fork in the Bitcoin network could adversely affect our ability to operate or the market value of bitcoin and therefore, an investment in our securities. The mining pools to which we contribute hashrate would need to decide which fork of the blockchain to support, which may result in interruptions to our rewards and may also decrease the value of these rewards as value is attributed to the other fork. We may not be able to realize the economic benefit of a fork, either immediately or ever, which could have a material adverse effect on our business, prospects, results of operations or financial condition. If we hold bitcoin at the time of a hard fork of bitcoin into two cryptocurrencies, our custodians may not support both assets, and so we may not be able, or it may not be practical, however, to secure or realize the economic benefit of the new asset for various reasons. Additionally, laws, regulation or other factors may prevent us from benefiting from the new asset even if there is a safe and practical way to custody and secure the new asset.

***Intellectual property rights claims may adversely affect the operation of some or all cryptocurrency networks.***

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Third parties have asserted and may assert intellectual property claims relating to the holding and transfer of cryptocurrencies and their source code. Regardless of the merit of any intellectual property or other legal action, any threatened action that reduces confidence in some or all cryptocurrency networks' long-term viability or the ability of end-users to hold and transfer cryptocurrencies could have a material adverse effect on our business, prospects, results of operations or financial condition.

Additionally, a meritorious intellectual property claim could prevent us and other end-users from accessing some or all cryptocurrency networks or holding or transferring their cryptocurrencies. As a result, any intellectual property claims against us or other large cryptocurrency network participants could have a material adverse effect on our business, prospects, results of operations or financial condition.

***To the extent that the profit margins of bitcoin mining operations are not sufficiently high, bitcoin mining operators are more likely to immediately sell bitcoins earned by mining or previously held on the balance sheet into the bitcoin exchange markets, resulting in a reduction in the price of bitcoin that could adversely affect us.***

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Bitcoin mining operations have evolved away from individual users mining with computer processors, graphics processing units and first-generation ASIC servers. Currently, new processing power brought onto the Bitcoin network is predominantly added by "professionalized" mining operations. Many professionalized mining operations use proprietary hardware or sophisticated ASIC machines acquired directly from manufacturers of miners. As a result, professionalized mining operations are of a greater scale than prior Bitcoin network miners and have in some cases raised debt capital. Some of these professionalized mining operations immediately sell bitcoins they earn from mining operations into a bitcoin exchange market.

The immediate selling of newly mined bitcoins increases the supply of bitcoins on the bitcoin exchange market (the "float"), which may create downward pressure on the price of bitcoin. The extent to which the value of bitcoin mined by a professionalized mining operation exceeds that operation's cost of capital and operating costs determines the profit margin of such an operation. A professionalized mining operation may be more likely to sell a higher percentage of its newly acquired bitcoin rapidly if it is operating at a low profit margin, and it may partially or completely cease operations if its profit margin is negative. In a low profit margin environment, a higher percentage of output could be sold into the bitcoin exchange markets more rapidly, thereby potentially reducing bitcoin prices. Lower bitcoin prices could result in further tightening of profit margins, particularly for professionalized mining operations with higher costs and more limited access to capital, creating a negative effect that could further reduce the price of bitcoin until mining operations with higher operating costs become unprofitable and remove mining power from the Bitcoin network. The network effect of reduced profit margins resulting in greater sales of newly mined bitcoin could result in a reduction in the price of bitcoin. The occurrence of any such risk could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Increased scrutiny and changing expectations from stakeholders with respect to our environmental, social, and governance (ESG) practices and the impacts of climate change may result in additional costs or risks.***

Companies across many industries are facing increasing scrutiny related to their ESG practices. Investor advocacy groups, certain institutional investors, investment funds and other influential investors are also increasingly focused on ESG practices and in recent years have placed increasing importance on the non-financial impacts of their investments. Furthermore, increased public awareness and concern regarding environmental risks, including global climate change, has resulted and may continue to result in increased public scrutiny of our business and our industry, and our management team may divert significant time and energy away from our operations and towards responding to such scrutiny and reassuring our employees.

In addition, the physical risks of climate change may impact the availability and cost of materials and natural resources, sources and supply of energy, demand for bitcoin and other cryptocurrencies, and could increase our insurance and other operating costs, including, potentially, to repair damage incurred as a result of extreme weather events or to renovate or retrofit facilities to better withstand extreme weather events. If environmental laws or regulations or industry standards are either changed or adopted and impose significant operational restrictions and compliance requirements on our operations, or if our operations are disrupted due to the physical impacts of climate change, our business, capital expenditures, results of operations, financial condition and competitive position could be negatively impacted.

***We may face risks of internet disruptions, which could have an adverse effect on our ability to operate our business.***

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Our business of mining cryptocurrencies is dependent upon the internet. A significant disruption in internet connectivity could disrupt a cryptocurrency network's operations until the disruption is resolved and have an adverse effect on the price of cryptocurrencies and our ability to mine bitcoins. A broadly accepted and widely adopted decentralized network is necessary for most cryptocurrencies networks, including bitcoin, to function as intended. Features of cryptocurrency networks, such as decentralization, open source protocol, and reliance on peer-to-peer connectivity, are essential to preserve the stability of the network and decrease the risk of fraud or cyber-attacks. A disruption of the internet or a cryptocurrency network would affect our ability to mine cryptocurrencies.

***Our miners may mechanically fail before the end of their expected useful life.***

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Our miners are exposed to extreme environmental conditions and temperature fluctuations. None of our fleet is covered by a manufacturers' warranty, and we routinely purchase previously used, refurbished miners. Widespread fleet failures, even if repairable, will reduce our ability to mine bitcoin at levels and efficiencies we expect.

***The book value of our miners presented in our financials may exceed the value at which they could be sold in a deliberate arms-length transaction (their "fair value").***

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The fair value of a bitcoin miner fluctuates based on market factors such as the price of bitcoin and the global hashrate. As such, there are likely times the Company could not sell its miners for the amount shown on the balance sheet, even factoring in recorded depreciation.

**Risks Related to the Bitcoin Network**

***If a malicious actor or botnet obtains control in excess of 50% of the processing power active on the Bitcoin network, it is possible that such actor or botnet could manipulate the blockchain in a manner that adversely affects our business.***

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If a malicious actor or botnet obtains a majority of the processing power dedicated to mining on the Bitcoin network, it may be able to alter the blockchain by constructing alternate blocks if it is able to solve for such blocks faster than the remainder of the miners on the blockchain can add valid blocks. In such alternate blocks, the malicious actor or botnet could control, exclude or modify the ordering of transactions. Using alternate blocks, the malicious actor could "double-spend" its own cryptocurrencies (i.e., spend the same cryptocurrencies in more than one transaction) and prevent the confirmation of other users' transactions for so long as it maintains control. To the extent that such malicious actor or botnet does not yield its majority control of the processing power or the cryptocurrency community does not reject the fraudulent blocks as malicious, reversing any changes made to the blockchain may not be possible. Further, a malicious actor or botnet could create a flood of transactions in order to slow down confirmations of transactions on the Bitcoin network. Such changes could have a material adverse effect on our business, prospects, results of operations or financial condition.

Although there have been no reports of such activity on the Bitcoin network, certain mining pools may have exceeded the 50% threshold on the Bitcoin network in the past. The possible crossing of the 50% threshold indicates a greater risk that a single mining pool could exert authority over the validation of cryptocurrency transactions, and this risk is heightened if over 50% of the processing power on the Bitcoin network falls within the jurisdiction of a single governmental authority. To the extent that the bitcoin ecosystem, including the core developers and the administrators of mining pools, does not act to ensure greater decentralization of mining processing power, the feasibility of a malicious actor obtaining control of the processing power on the Bitcoin network will increase, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Flaws in the source code of bitcoin or the underlying cryptography could leave the Bitcoin network vulnerable to a multitude of attack vectors.***

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If the source code or cryptography underlying bitcoin proves to be flawed or ineffective, malicious actors may be able to steal bitcoin held by others, which could negatively impact the demand for bitcoin and therefore adversely impact the price of bitcoin. In the past, flaws in the source code for bitcoin have been discovered. Several errors and defects have been publicly found and corrected, including those that disabled some functionality for users and exposed users' personal information. Discovery of flaws in or exploitations of the source code that allow malicious actors to take or create money in contravention of known network rules have occurred. In addition, the cryptography underlying bitcoin could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in digital computing, algebraic geometry, and quantum computing, could result in such cryptography becoming ineffective and could allow a malicious actor to obtain control in excess of 50% of the processing power on the Bitcoin network, as further described herein. In any of these circumstances, a malicious actor may be able to steal bitcoin held by others, which could adversely affect the demand for bitcoin and therefore adversely impact the price of bitcoin. Even if the affected cryptocurrency is not bitcoin, any reduction in confidence in the source code or cryptography underlying cryptocurrencies generally could negatively impact the demand for bitcoin and therefore could have a material adverse effect on our business, prospects, results of operations or financial condition.

Furthermore, a malicious actor may also obtain control over the Bitcoin network through its influence over core or influential developers. For example, this could allow the malicious actor to stymie legitimate network development efforts or attempt to introduce malicious code to the network under the guise of a software improvement proposal by such a developer, which could adversely impact the bitcoin ecosystem and subject us to risks of malicious action, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Demand for bitcoin is driven, in part, by it being generally recognized as the most prominent and secure cryptocurrency. Cryptocurrencies other than bitcoin could have features that make them more desirable to a material portion of the cryptocurrency user base, resulting in a reduction in demand for bitcoin, which could have a negative effect on the price of bitcoin and adversely affect an investment in us.***

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Bitcoin, as an asset, holds "first-to-market" advantages over other cryptocurrencies. This first-to-market advantage is driven in large part by having the largest market capitalization and the largest mining power in use to secure its blockchain and transaction verification system. Having a large mining network results in greater user confidence regarding the security and long-term stability of a cryptocurrency's network and its blockchain; as a result, the advantage of more users and miners makes a cryptocurrency more secure, which makes it more attractive to new users and miners, resulting in a network effect that strengthens the first-to-market advantage. Despite the first-mover advantage of the Bitcoin network over other cryptocurrency networks, it is possible that another cryptocurrency could become materially more popular due to either a perceived or exposed shortcoming of the Bitcoin network protocol that is not immediately addressed by the bitcoin contributor community or a perceived advantage of another cryptocurrency that includes features not incorporated into bitcoin. If a cryptocurrency obtains significant market share (either in market capitalization, mining power or use as a payment technology), this could reduce bitcoin's market share and have a negative effect on the demand for, and price of, bitcoin and could have a material adverse effect on our business, prospects, results of operations or financial condition. It is possible that we could mine alternative cryptocurrencies in the future, but we may not have as much experience mining such assets, which may put us at a competitive disadvantage.

***The open-source structure of many cryptocurrency network protocols, including bitcoin, means that the contributors to the protocol are generally not directly compensated for their contributions in maintaining and developing the protocol. A failure to properly monitor and upgrade the protocol could damage the Bitcoin network and our value.***

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The Bitcoin network operates based on an open-source protocol maintained by contributors, largely on the bitcoin Core project on GitHub. As an open-source project, bitcoin is not represented by an official organization or authority and its software is available free of charge in accordance with the terms of open-source licenses, such as the MIT License. As the Bitcoin network protocol is not commercially licensed and its use does not generate revenues for contributors, contributors are generally not compensated for maintaining and updating the Bitcoin network protocol. The lack of guaranteed financial incentives for contributors to maintain or develop the Bitcoin network and the lack of guaranteed resources to adequately address emerging issues with the Bitcoin network may reduce incentives to address the issues adequately or in a timely manner. Changes to the Bitcoin network could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Significant Bitcoin network contributors could propose amendments to the Bitcoin network's protocols and software that, if accepted and authorized by the Bitcoin network, could adversely affect us.***

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Significant Bitcoin network contributors could propose refinements, improvements or other changes to the Bitcoin network's source code through one or more software upgrades that alter the protocols and software that govern the Bitcoin network and the properties of bitcoin, including the irreversibility of transactions and limitations on the mining of new bitcoin. Proposals for upgrades and discussions relating thereto take place on online forums. For example, there is an ongoing debate regarding altering the bitcoin blockchain by increasing the size of blocks to accommodate a larger volume of transactions. Although some proponents support an increase, other market participants oppose an increase to the block size as it may deter miners from confirming transactions and concentrate power into a smaller group of miners. Additionally, the Bitcoin network could change its mining algorithm in a fashion which could render our mining equipment obsolete. To the extent that a significant majority of the users and miners on the Bitcoin network install such software upgrade(s), the Bitcoin network would be subject to new protocols and software that could have a material adverse effect on our business, prospects, results of operations or financial condition. See "Risk Factors—Risks Related to the Bitcoin Industry—Forks in the bitcoin blockchain may occur in the future which may affect the value of bitcoin held by Ionic Digital."

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***Competition from central bank digital currencies ("CBDCs") and stablecoins could adversely affect the value of bitcoin.***

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Central banks in some countries have started to introduce digital forms of legal tender. For example, China's CBDC project was made available to consumers in January 2022, and governments from Russia to the European Union have been discussing potential creation of new digital currencies. A 2021 survey of central banks by the Bank for International Settlements found that 86% are actively researching the potential for CBDCs, 60% were experimenting with the technology and 14% were deploying pilot projects. Whether or not they incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replacing, bitcoin and other cryptocurrencies as a medium of exchange or store of value.

Other alternative cryptocurrencies that compete with bitcoin in certain ways include "stablecoins," which are designed to maintain a constant price related to or based on some other asset or traditional currency because of, for instance, their issuers' promise to hold high-quality liquid assets (such as U.S. dollar deposits and short-term U.S. treasury securities) equal to the total value of stablecoins in circulation. On July 18, 2025, President Trump signed into law the Guiding and Establishing National Innovation for US Stablecoins Act (the "GENIUS Act"), establishing a legislative framework for the regulation of payment stablecoins and marking the first federal legislation for the regulation of cryptocurrencies in the U.S. Stablecoins have grown rapidly as an alternative to other cryptocurrencies as a medium of exchange and store of value, particularly on decentralized applications, and their use as an alternative to bitcoin could expand further.

As a result of increased competition from new types of cryptocurrencies such as CBDCs and stablecoins, the value of bitcoin could decrease, which could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The decentralized nature of cryptocurrency systems may lead to slow or inadequate responses to crises, which may negatively affect our business.***

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The decentralized nature of the governance and administration of cryptocurrency systems may lead to ineffective decision making that slows development or prevents a network from overcoming emergent obstacles. Governance of many cryptocurrency systems is by voluntary consensus and open competition with no clear leadership structure or authority. To the extent lack of clarity in governance of the Bitcoin network leads to ineffective decision making that slows development and growth of bitcoin or slows a response to a problem such as addressing a critical vulnerability in the cryptographic primitives or software implementation of bitcoin, these events could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The development and market acceptance of competing blockchain platforms or technologies may cause consumers to use alternative distributed ledgers or other alternatives.***

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The development and acceptance of competing blockchain platforms or technologies may cause consumers to use alternative distributed ledgers or an alternative to distributed ledgers altogether. Our business utilizes presently existing digital ledgers and blockchains, and we could face difficulty adapting to emergent digital ledgers, blockchains, or alternatives thereto. This may adversely affect us and our exposure to various blockchain technologies and prevent us from realizing the anticipated profits from our investments. Such circumstances could have a material adverse effect on our ability to continue as a going concern or to pursue our strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition and potentially the value of any bitcoin we mine, or bitcoin we otherwise acquire or hold for our own account.

**Risks Related to the Price of Bitcoin**

***A material decline in the value of bitcoin could have an adverse effect on our results of operations, our liquidity and the strength of our balance sheet.***

Our operating results depend on the value of bitcoin as it is presently the only cryptocurrency that we mine. This means that our operating results will be subject to swings based upon increases or decreases in the value of bitcoin (which has ranged from a high of approximately $124,720 to a low of approximately $39,524 between January 1, 2024 and March 31, 2026, based on the daily quoted spot price of bitcoin at 00:00:00 UTC per Coinbase). These changes in the value of bitcoin will also cause the value assigned to the bitcoin we hold on our balance sheet to fluctuate. Furthermore, any negative impacts on our liquidity as a result of changes in the value of bitcoin may affect our business plans to expand into the digital infrastructure industry and could have a material adverse effect on our business, prospects, results of operations or financial position.

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If other cryptocurrencies were to achieve acceptance at the expense of bitcoin causing the value of bitcoin to decline, or if bitcoin were to switch its proof of work encryption to an algorithm for which our miners are not specialized, or if the value of bitcoin were to decline for other reasons, particularly if such decline were significant or over an extended period of time, our operating results and financial statement presentation would be adversely affected. In such circumstances, there could be balance sheet impairments, a material adverse effect on our ability to continue as a going concern or to pursue our strategy at all, which could have a material adverse effect on our business, prospects, results of operations or financial condition. The market price of bitcoin, which has historically been volatile and is impacted by a variety of factors (including those discussed herein), is determined primarily using data from various exchanges, over-the-counter markets and derivative platforms. Furthermore, such prices may be subject to factors such as those that impact commodities, more so than business activities, which could be subjected to additional influence from fraudulent or illegitimate actors, real or perceived scarcity, and political, economic, regulatory or other conditions. Pricing may be the result of, and may continue to result in, speculation regarding future appreciation in the value of bitcoin, or our share price, inflating and making their market prices more volatile or creating "bubble" type risks for bitcoin and holders of shares of our Class A common stock.

***Transaction fees may decrease demand for bitcoin which could adversely affect our business.***

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As the number of bitcoin rewards awarded for solving a block in a blockchain decreases, the incentive for miners to continue to contribute to the Bitcoin network may transition from a set reward per block to transaction fees. This transition might be accomplished by certain miners independently electing to record in the blocks they solve only those transactions that include payment of a transaction fee. In the event that transaction fees paid for bitcoin transactions become too high, the marketplace might become reluctant to accept bitcoin as a means of payment and existing users may be motivated to switch from bitcoin to another cryptocurrency or to fiat currency. Either the requirement from certain miners of higher transaction fees in exchange for recording transactions in a blockchain or a software upgrade that automatically charges fees for all transactions might decrease demand for bitcoin and prevent the expansion of the Bitcoin network to retail merchants and commercial businesses, resulting in a reduction in the use cases and demand for bitcoin, which might result in a decrease in the price of bitcoin. The occurrence of any such risk could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Bitcoin faces significant scaling obstacles that can lead to high fees or slow transaction settlement times.***

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Bitcoin (and cryptocurrencies, generally) face significant scaling obstacles that can lead to high fees or slow transaction settlement times and attempts to increase the volume of transactions may not be effective. Scaling cryptocurrencies is essential to the widespread acceptance of cryptocurrencies as a means of payment, including bitcoin. Many cryptocurrency networks face significant scaling challenges. For example, cryptocurrencies are limited with respect to how many transactions can occur per second. Participants in the cryptocurrency ecosystem debate potential approaches to increasing the average number of transactions per second that a network can handle and have implemented mechanisms or are researching ways to increase scale, such as increasing the allowable sizes of blocks, and therefore the number of transactions per block, and sharding (a horizontal partition of data in a database or search engine), which would not require every single transaction to be included in every single miner's or validator's block. There is, however, no guarantee that any of the mechanisms in place or being explored for increasing the scale of settlement of cryptocurrency transactions will be effective.

If adoption of bitcoin (and cryptocurrencies, generally) as a means of payment does not occur on the schedule or scale we anticipate, the demand for bitcoin may stagnate or decrease, which could adversely affect future bitcoin prices, and our results of operations and financial condition, which could have a material adverse effect on the market price for our securities.

***Bitcoin holdings are insufficiently decentralized so that individuals can substantially reduce the price of bitcoin in the short term.***

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A significant portion of bitcoin is held by a small number of holders sometimes referred to as "whales." Transactions of these holders may influence the price of bitcoin. For example, in August 2025, a transaction by a single whale to sell 24,000 bitcoin worth approximately $2.7 billion over a weekend triggered a flash crash that erased $200 billion of crypto market capitalization across multiple digital currencies and resulted in forced liquidations over $550 million in leveraged positions. The concentration of bitcoin among whales can make it more susceptible to rapid and significant price swings and market manipulation. Such concentration may also affect bitcoin liquidity.

**Risks Related to Regulatory Framework**

***We are required to obtain, and to comply with, government and utility company permits and approvals.***

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We are required to obtain, and to comply with, numerous permits and licenses from federal, state and local governmental agencies and our electricity providers. The process of obtaining and renewing necessary permits and licenses can be lengthy and complex and can sometimes result in the establishment of conditions that make the project or activity for which the permit or license was sought unprofitable or otherwise unattractive. In addition, such permits or licenses may be subject to denial, revocation or modification under various circumstances. The regulatory environment surrounding such permits and approvals is rapidly evolving, in part due to the power demand from the rapid expansion of demand for data centers and related political considerations. Failure to obtain or comply with the conditions of permits or licenses, or failure to comply with applicable laws or regulations, may result in the delay or temporary suspension of our operations.

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***We are subject to a rapidly evolving regulatory landscape and any adverse changes to our or our customers' failure to comply with any laws or regulations could adversely affect our business, prospects or operations.***

Our and our customers' businesses are subject to extensive laws, rules, regulations, policies and legal and regulatory guidance, including those governing securities, commodities, cryptocurrency custody, exchange and transfer, data governance, data protection, cybersecurity and tax. These legal and regulatory regimes vary widely across U.S. federal, state and local and international jurisdictions and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another. In addition, the legal and regulatory regimes related to cryptocurrencies continue to evolve, with laws enacted at the federal level to address specific segments of the digital asset ecosystem, such as payment stablecoins, as well more comprehensive laws and regulations at the state level. Congress is also considering broader market structure legislation intended to clarify regulatory oversight responsibilities with respect to the digital asset markets. U.S. regulatory agencies have continued to evaluate the application of existing securities, commodities, and banking regulations to digital asset activities, including custody, trading, and settlement functions.

Moreover, the complexity and evolving nature of our business and the significant uncertainty surrounding the regulation of the crypto economy requires us to exercise our judgment as to whether certain laws, rules and regulations apply to us or our customers, and it is possible that governmental bodies and regulators may disagree with our or our customers' conclusions. To the extent we or our customers have not complied with such laws, rules and regulations, we could be subject to significant fines and other regulatory consequences, which could adversely affect our business, prospects or operations. As cryptocurrency has grown in popularity and in market size, the Federal Reserve Board, U.S. Congress and certain U.S. agencies (for example, the Commodity Futures Trading Commission, the SEC, the Financial Crimes Enforcement Network and the Federal Bureau of Investigation) have begun to examine the operations of cryptocurrency networks, cryptocurrency users and cryptocurrency exchange markets.

Our customers in our HPC segment may also be subject to laws and regulations relating to artificial intelligence technologies ("AI"). Several jurisdictions around the globe, including Europe and China have already proposed or enacted laws and regulations governing AI, including the EU Artificial Intelligence Act that was enacted in 2024, each of which may impose significant operational costs on our customers. A number of U.S. states have also adopted laws or are considering the passage of laws related to the use and deployment of AI and/or require disclosures in connection with the usage of AI. For example, California enacted more than a dozen new laws that regulate use of AI and automated decision systems and provide consumers with additional protections around companies' use of AI, Texas enacted the Texas Responsible AI Governance Act that prohibits specified harmful uses of AI, Colorado passed the Colorado Artificial Intelligence Act, which will require disclosures and compliance efforts associated with different uses of AI, and Utah passed the Utah Artificial Intelligence Policy Act, which requires certain disclosures to customers and confirms companies' responsibility for legal violations caused by their AI applications. However, the federal government may seek to preempt state laws purporting to regulate AI, as evidenced by the Trump administration's "Ensuring a National Policy Framework for Artificial Intelligence" Executive Order which calls for federal standards and legislation that would preempt conflicting state AI regulations and create a federal litigation task force focused on challenging state AI laws in court. These differing laws and policy objectives would require our HPC customers to expend significant resources to modify their products, services, or operations to ensure compliance or remain competitive.

Ongoing and future regulatory actions could effectively prevent our and our customers' mining operations and our ongoing or planned co-hosting operations, limiting or preventing future revenue generation by us or rendering our operations obsolete. Such actions could severely impact our ability to continue to operate and our ability to continue as a going concern or to pursue our strategy at all, which would have a material adverse effect on our business, prospects or operations.

***If we were deemed to be an investment company under the Investment Company Act, applicable restrictions could make it impractical or impossible for us to continue our business as contemplated and could have a material adverse effect on our business, financial condition and results of operations.***

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Under Sections 3(a)(1)(A) and (C) of the Investment Company Act, a company generally will be deemed to be an "investment company" for purposes of the Investment Company Act if (i) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or (ii) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an "investment company," as such term is defined in either of those sections of the Investment Company Act. We conduct our operations so that we will not be deemed an investment company, including by managing our security holdings to comply with applicable limitations under the Investment Company Act. However, to the extent that bitcoin is determined by regulators to be a security for purposes of the Investment Company Act, we may be subject to additional regulatory requirements and/or additional limitations on our portfolio which could make it impractical or impossible for us to continue our business as contemplated and could have a material adverse effect on our business, prospects, results of operations or financial condition.

We do not believe we are, and do not intend to be, engaged in the business of investing, reinvesting, or trading in securities, and we will not hold ourselves out as being engaged in those activities. Furthermore, we monitor our holdings to ensure continuing and ongoing compliance with the 40% limit described above (or similar limits available under other Investment Company Act exceptions and safe harbors). However, depending on its characteristics, a cryptocurrency may be considered a "security" under the Investment Company Act. If the SEC or its staff were to disagree with our treatment of certain assets (namely bitcoin), we would need to adjust our strategy and our assets in order to continue to comply with such limits. Any such adjustment in our strategy or assets could have a material adverse effect on our business, prospects, results of operations or financial condition. To date, the SEC staff have treated bitcoin as a commodity, and in March 2025, the SEC's Division of Corporation Finance issued guidance clarifying that the Division does not take the view that cryptocurrencies generated through proof-of-work mining are securities for purposes of the Securities Act and the Exchange Act. However, this statement does not apply to the Investment Company Act, and it is possible that the SEC may deem bitcoin and other cryptocurrencies an investment security in the future. We do not believe any of the bitcoin we own, acquire or mine are securities. As a result of our investments and cryptocurrency mining activities, it is possible that the investment securities we hold in the future could exceed applicable limits under the Investment Company Act, particularly if such SEC treatment of bitcoin changes, and, accordingly, we could determine that we have become an inadvertent investment company and do not qualify for any exemption from registration under the Investment Company Act. As of the date hereof, we do not believe that we are an inadvertent investment company. If we do become an inadvertent investment company in the future, we may take actions to cause the investment securities held by us to be less than 40% of our total assets, which may include acquiring assets with the cash or bitcoin on hand or liquidating investment securities or bitcoin or seeking a no-action letter from the SEC if we are unable to acquire sufficient assets or liquidate sufficient investment securities in a timely manner. Liquidating investment securities or bitcoin could result in losses. This may limit our ability to make certain investments or enter into joint ventures that could otherwise have a positive impact on our earnings. In any event, we do not intend to become an investment company engaged in the business of investing and trading securities.

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In general, as a consequence of our seeking to avoid the need to register under the Investment Company Act on an ongoing basis, we may be restricted from acquiring certain assets or may structure investments in a manner that would be less advantageous to us than would be the case in the absence of such requirements. No assurance can be given that the SEC or its staff will concur with our classification of our assets or that the SEC staff will not, in the future, issue further guidance that may require us to reclassify those assets for purposes of qualifying for an exclusion or exemption from registration under the Investment Company Act. Additional guidance from the SEC staff could provide additional flexibility to us, or it could further inhibit our ability to pursue the business strategies we have chosen. If the SEC or its staff take a position contrary to our view with respect to the characterization of any of the assets we hold, we may be deemed an unregistered investment company. Therefore, in order not to be required to register as an investment company, we may need to dispose of a significant portion of our assets or acquire significant other additional assets that may have lower returns than our expected portfolio, or we may need to modify our business plan to register as an investment company, which would result in significantly increased operating expenses. We cannot assure you that we would be able to complete these dispositions or acquisitions of assets on favorable terms, or at all. Consequently, any modification of our business plan could have a material adverse effect on our business, prospects, results of operations or financial condition.

There can be no assurance that we will be able to successfully avoid operating as an unregistered investment company. If the SEC determined that we were an unregistered investment company, there would be a risk that we would be subject to monetary penalties and injunctive relief in an action brought by the SEC, that we would potentially be unable to enforce contracts with third parties and that third parties could seek to obtain rescission of transactions undertaken during the period for which it was established that we were an unregistered investment company. Any of these results could have a material adverse effect on our business, prospects, results of operations or financial condition.

Ultimately, classification as an investment company under the Investment Company Act requires registration with the SEC. If an investment company fails to register, it would have to stop doing almost all business, and its contracts would become voidable. Registration is time-consuming, expensive and restrictive and would require a restructuring of our operations, and we would be very constrained in the kind of business we could do as a registered investment company. Further, we would become subject to substantial regulation concerning management, operations, transactions with affiliated persons and portfolio composition, and would need to file reports under the Investment Company Act regime. The cost of such compliance would result in us incurring substantial additional expenses, and the failure to register if required could have a material adverse effect on our business, prospects, results of operations or financial condition. Furthermore, our classification as an investment company could adversely affect our ability to engage in future combinations, acquisitions or other transactions on a tax-free basis. Finally, there is no guarantee that we would be able to register under the Investment Company Act at such time or take such other actions as may be necessary to ensure our activities comply with applicable law, which could force the us to cease operations and liquidate.

***Since we will not be subject to the Investment Company Act, we will not be subject to its substantive provisions, including but not limited to, provisions requiring diversification of investments, limiting leverage and restricting investments in illiquid assets.***

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We are not registered, and do not intend to register, as an investment company under the Investment Company Act or the similar laws of any other country or jurisdiction and, accordingly, the provisions of the Investment Company Act will not be applicable to us. These provisions require investment companies to have a majority of disinterested directors, require securities held in custody to be individually segregated at all times from the securities of any other person and to be clearly marked to identify such securities as the property of such investment company and regulate the relationship between the advisor and the investment company.

***Blockchain technology may expose us to sanctioned or blocked persons or may result in unintentional or inadvertent violations of trade compliance and economic sanctions laws and regulations.***

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We are subject to economic and trade sanctions laws and regulations, including the rules enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC"), the U.S. Department of State, the United Nations Security Council, the U.S. Department of Commerce, and other relevant sanctions and export controls authorities. These rules and regulations include prohibitions on conducting direct or indirect business with persons named on, or owned by persons named on, OFAC's various sanctions lists, including the Specially Designated Nationals and Blocked Persons list. We are also prohibited from direct or indirect dealings with persons located in, organized in, or nationals of, jurisdictions subject to U.S. embargos (as of the date of this prospectus, Cuba, Iran, North Korea, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, and the Crimea region of Ukraine), and may be prohibited from dealing with persons in other jurisdictions subject to targeted U.S. sanctions such as Venezuela, Russia, and Belarus.

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U.S. sanctions compliance obligations apply to transactions in cryptocurrencies and U.S. sanctions authorities have in recent years directed significant attention to sanctions compliance among the cryptocurrency industry. Because of the pseudonymous nature of blockchain transactions, we may inadvertently and without knowledge, directly or indirectly engage in transactions with or for the benefit of prohibited persons. The mining pools to which we contribute power do not screen transactions for sanctioned persons or wallets before including them in a block, and we do not have visibility into the transactions selected by the pool operator for inclusion. Although no regulator has affirmatively stated that such screening is required, OFAC or another regulator may take the view that such screening is required in order to avoid dealing with or facilitating transactions by sanctioned persons. Civil liability for OFAC sanctions violations are typically regarded as "strict liability" violations, meaning we may be held responsible for transacting with prohibited parties even if we have no knowledge that a particular counterparty is a prohibited person under the OFAC sanctions regulations. In addition, we may be subject to non-U.S. economic sanctions laws and regulations to the extent we conduct activity within the jurisdiction of other sanctions regimes, including those of the European Union and United Kingdom. Screening transactions for sanctions concerns may increase the compliance costs associated with the operation of a mining pool, which costs would likely be passed on to the miners themselves by the pool operator.

Although we currently have a Code of Conduct and Ethics that includes policies and procedures to promote compliance with economic sanctions, OFAC and other governmental authorities have significant discretion in the interpretation and enforcement of economic and trade sanctions laws and regulations. Moreover, economic and trade sanctions laws and regulations continue to evolve, often with little or no notice, which could raise operational or compliance challenges. If it is determined that we have transacted with prohibited persons or otherwise violated economic and trade sanctions laws and regulations, even inadvertently, this could result in substantial reputational harm, fines or penalties, and costs associated with governmental inquiries and investigations. Any or all of the foregoing could have a material adverse effect on our business, prospects, results of operations or financial condition. Despite our compliance efforts and activities we cannot assure compliance by our employees or representatives for which we may be held responsible, and any such violation could materially adversely affect our reputation, business, financial condition and results of operations.

***Bitcoin's and other cryptocurrencies' status as a "security" or other regulated financial instrument in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a cryptocurrency, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, which may adversely affect our business, prospects, results of operations or financial condition.***

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In the United States, the SEC and its staff have taken the position that certain cryptocurrencies fall within the definition of a "security" under the U.S. federal securities laws. The legal tests that are commonly employed for determining whether any given cryptocurrency is a security are established under U.S. Supreme Court case law and require a highly complex and heavily fact-driven analysis. The application of such tests is therefore highly uncertain and the SEC Staff has indicated that the determination of whether or not a cryptocurrency is a security depends on the specific characteristics and use of that particular asset. Moreover, the SEC and its staff generally do not provide advance guidance or confirmation on the status of any particular cryptocurrency as a security, although the SEC's Division of Corporation Finance has recently begun to provide informal guidance on its position regarding whether certain cryptocurrencies (like meme coins and stablecoins) and certain digital asset related activities implicate the offer or sale of a security. For example, the Division of Corporation Finance stated in its March 20, 2025, "Statement on Certain Proof-of-Work Mining Activities" that certain self-mining and mining pool activities, under the circumstances described in the statement, do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 and Section 3(a)(10) of the Securities Exchange Act of 1934. Some courts have found that certain cryptocurrencies are securities, while other courts have found that certain other cryptocurrencies under specified circumstances are not securities. Further, the SEC and its staff have taken positions that certain cryptocurrencies are "securities" — often in the context of enforcement actions.

We do not currently hold any cryptocurrencies for which the SEC or its staff has taken the position that such assets are securities and currently only intend to mine, invest in or transact in bitcoin. Prior public statements by senior officials at the SEC indicate that the SEC does not intend to take the position that bitcoin, on its own and in its current form, is a security. However, such statements are not official policy statements by the SEC and reflect only the speakers' personal views, which are not binding on the SEC or any other agency or court, and cannot be generalized to any other cryptocurrency and may evolve. Because we currently only intend to mine, invest in and transact in bitcoin, we do not have processes in place at this time to evaluate whether cryptocurrencies other than bitcoin are "securities" within the meaning of the U.S. federal securities laws. Any such processes, if developed in the future, would be risk-based assessments that do not constitute legal determinations binding on regulators or courts and would not preclude legal or regulatory action. While we believe our holdings are not securities, we cannot assure you that future legislation or regulation could not have a material adverse effect on our business, prospects, results of operations or financial condition.

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To the extent that the SEC, another relevant regulatory agency, court or foreign authority determines that any cryptocurrencies we hold, or choose to hold in the future, constitute a "security" or other form of regulated financial instrument, that determination could prevent us from continuing to hold or mine those cryptocurrencies or subject us to additional regulatory burdens in order to be permitted to do so, which could include costly or onerous registration or reporting requirements. Such a determination could also result in regulatory or enforcement sanctions, penalties and financial losses in the event we are unable to comply with, or are determined not to have previously complied with, relevant regulatory requirements or that we have incurred liability to our customers and need to compensate them for any losses or damages. For example, we could be subject to judicial or administrative sanctions for failing to offer or sell the cryptocurrency in compliance with securities registration requirements. Such an action could result in injunctions and cease and desist orders, as well as civil monetary penalties, fines, disgorgement, criminal liability, and reputational harm.

Moreover, as a result of any such determination, all transactions in such cryptocurrencies may have to be registered with the SEC or other relevant regulatory authority, or conducted in accordance with an exemption from registration, which could severely limit the liquidity, usability and transactability of the relevant cryptocurrencies. The networks on which such cryptocurrencies are used might be required to be regulated as securities intermediaries, and subject to applicable rules, which could effectively render the network impracticable for its existing purposes. Further, any determination that bitcoin is a security or another form of regulated financial instrument could draw negative publicity and cause a decline in the general acceptance of cryptocurrencies. Also, it would make it more difficult for bitcoin to be traded, cleared, and custodied as compared to other cryptocurrencies that are not considered to be securities. Lastly, any determination that a cryptocurrency we hold, or choose to hold in the future, is a "security" may require us to register as an investment company under the Investment Company Act.

***The nature of our business requires the application of complex financial accounting rules. Because there has been limited guidance provided and precedent set for financial accounting of bitcoin and other cryptocurrencies, the determination that we have made for how to account for cryptocurrencies transactions may be subject to change.***

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The accounting rules and regulations that we must comply with are complex and subject to interpretation by the Financial Accounting Standards Board ("FASB"), the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results and may even affect the reporting of transactions completed before the announcement or effectiveness of a change.

In December 2023, FASB issued Accounting Standards Update ("ASU") No. 2023-08, Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. Under the guidance, an entity is required to: measure cryptocurrencies at fair value with changes recognized in net income each reporting period, present cryptocurrencies and related fair value changes separately in the balance sheet and income statement and include various disclosures in interim and annual periods. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2024, with early adoption permitted in any interim or annual period after the issuance of the ASU. The updated guidance is effective January 1, 2025, however, we have chosen to early adopt the amendments as of January 1, 2024.

Many companies' accounting policies are subject to heightened scrutiny by regulators and the public. Further, there has been limited precedents for the financial accounting of cryptocurrencies and related valuation and revenue recognition, and limited interpretative guidance has been provided by the FASB and no official guidance by the SEC. As such, there remains significant uncertainty on how companies can account for cryptocurrency transactions, cryptocurrencies, and related revenue.

Uncertainties in or changes to regulatory or financial accounting standards could result in the need to change our accounting methods and restate our financial statements and impair our ability to provide timely and accurate financial information. Such a restatement could adversely affect the accounting for our newly earned bitcoin and more generally negatively impact our business, prospects, financial condition and results of operations. Such circumstances would have a material adverse effect on our ability to continue as a going concern, which would have a material adverse effect on our business, prospects or results of operations as well as and potentially the value of any cryptocurrencies we hold or expect to acquire for our own account and harm investors.

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***Future developments regarding the treatment of cryptocurrencies for U.S. federal, state, local and foreign tax purposes could have a material adverse effect on our business, prospects, results of operations or financial condition.***

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Due to the new and evolving nature of cryptocurrencies and the absence of comprehensive legal guidance with respect to cryptocurrency products and transactions, many significant aspects of the U.S. federal, state, local and foreign tax treatment of transactions involving cryptocurrencies, such as bitcoin, are uncertain, and it is unclear what guidance may be issued in the future regarding the treatment of cryptocurrency transactions, including mining, for such tax purposes. Current U.S. Internal Revenue Service ("IRS") guidance indicates that cryptocurrencies such as bitcoin should be treated and taxed as property, and that transactions involving the payment of cryptocurrencies such as bitcoin for goods and services should be treated as barter transactions. This treatment creates the potential for the recognition of taxable income or gain (and potential information reporting obligations) whenever a bitcoin passes from one person to another (including in off-blockchain transactions).

There can be no assurance that the IRS or any other tax authority will not alter its existing position with respect to cryptocurrencies in the future or that a court would uphold the treatment of bitcoin or other cryptocurrencies as property, rather than currency. Any such alteration of existing U.S. federal, state, local, or foreign tax authority positions or additional guidance regarding cryptocurrency products and transactions could result in adverse tax consequences for holders of cryptocurrencies and could have an adverse effect on the value of cryptocurrencies and the broader cryptocurrencies markets. Future technological and operational developments that may arise with respect to cryptocurrencies may increase the uncertainty of the treatment of cryptocurrencies for U.S. federal, state, local and foreign tax purposes. The uncertainty regarding the tax treatment of cryptocurrency transactions, as well as the potential promulgation of new U.S. federal income, state or foreign tax laws or guidance relating to cryptocurrency transactions, or changes to existing laws or guidance, could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Regulatory developments regarding cryptocurrencies and cryptocurrency markets could have a material adverse effect on our business, prospects, results of operations or financial condition.***

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Due to the new and evolving nature of cryptocurrencies, a number of governments or governmental bodies are contemplating legislative and regulatory changes with respect to the treatment of cryptocurrencies and transactions. For example, certain governments have deemed cryptocurrencies illegal or have curtailed the use of cryptocurrencies by prohibiting the acceptance of payment in bitcoin and other cryptocurrencies for consumer transactions and barring banking institutions from accepting deposits of cryptocurrencies. There is a risk that relevant authorities in any jurisdiction may impose more onerous regulation on bitcoin, for example banning its use, regulating its operation, or otherwise changing its regulatory treatment. It is also possible that regulators in the U.S. or foreign countries may interpret or apply existing laws and regulations in a manner that adversely affects the price of bitcoin or the ability of individuals or institutions such as us to own or transfer bitcoin. Any such changes may introduce a cost of compliance and could have a material adverse effect on our business, prospects, results of operations or financial condition.

In the U.S. in particular, the regulation of bitcoin and other cryptocurrencies remains the subject of significant uncertainty and ongoing change. For example, on July 18, 2025, President Trump signed into law the GENIUS Act, establishing a legislative framework for the regulation of payment stablecoins and marking the first federal legislation for the regulation of cryptocurrencies in the U.S. On July 17, 2025, the U.S. House of Representatives passed the Digital Asset Market Clarity Act of 2025 (the "CLARITY Act"), a comprehensive cryptocurrency market structure and regulation bill. The CLARITY Act, and other cryptocurrency market structure and regulation bills, remain under consideration and continue to evolve in the U.S. Senate. It is not possible to predict whether or when new laws and regulations will be enacted or adopted that change the legal framework governing cryptocurrencies or provide additional authorities to the SEC, the CFTC, or other regulators, or whether or when any other federal, state or foreign legislative or regulatory bodies will take any similar actions. It is also not possible to predict the nature of any such additional laws or authorities, how additional legislation or regulatory oversight might impact the ability of cryptocurrency markets to function, the willingness of financial and other institutions to continue to provide services to the cryptocurrencies industry, or how any new laws or regulations, or changes to existing laws or regulations, might impact the value of cryptocurrencies generally and bitcoin specifically. The consequences of any new law or regulation relating to cryptocurrencies and cryptocurrency activities could adversely affect the market price of bitcoin, as well as our ability to hold or transact in bitcoin, and in turn adversely affect the market price of our listed securities.

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***Our business may be subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with existing or future energy regulations or requirements. We are required to obtain, and to comply with, government permits and approvals.***

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Our business may be subject to extensive federal, state and local laws. Compliance with, or changes to, the requirements under these legal and regulatory regimes may cause us to incur significant additional costs or could have a material adverse effect on our business, prospects, results of operations or financial condition. Failure to comply with such requirements could result in the shutdown of a non-complying facility, the imposition of liens, fines, and/or civil or criminal liability and/or costly litigation before the agencies and/or in state or federal court.

The regulatory environment has undergone significant changes in the last several years due to state and federal policies affecting wholesale competition and the creation of incentives for the addition of large amounts of new renewable generation and, in some cases, transmission. These changes are ongoing, and we cannot predict the future design of the power markets or the ultimate effect that the changing regulatory environment will have on our business. If competitive restructuring of the electric power markets is reversed, discontinued, delayed or materially altered, our business, financial condition, results of operations and prospects could be negatively impacted.

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***We may become involved in legal proceedings from time to time, which could adversely affect us. We cannot predict the outcome of any legal proceedings with respect to our current and past business activities.***

From time to time, we may be a party to legal and regulatory proceedings, including matters involving governmental agencies or regulators, entities with whom we do business, actions by our stockholders and other proceedings, whether arising in the ordinary course of business or otherwise. We will evaluate our exposure to legal and regulatory proceedings and establish reserves, if required, for the estimated liabilities in accordance with generally accepted accounting principles. Assessing and predicting the outcome of these matters involves substantial uncertainties and contingencies. Such matters can be time-consuming, divert management's attention and resources, cause us to incur significant expenses or liabilities, or require us to change our business practices. In addition, the expenses and liabilities of litigation and other proceedings, and the timing of these expenses from period to period, are difficult to estimate, subject to change, and could adversely affect our business, financial condition and results of operations.

Responding to lawsuits brought against us and governmental inquiries or legal actions that we may initiate, can often be expensive and time-consuming and disruptive to normal business operations. Moreover, the results of complex legal proceedings and governmental inquiries could adversely affect our business, prospects, results of operations or financial condition, and we could incur substantial monetary liability and/or be required to change our business practices.

***We may be at a higher risk of litigation and other legal proceedings due to heightened regulatory scrutiny of the cryptocurrency industry, which could ultimately be resolved against us, requiring material future cash payments or charges, which could impair our financial condition and results of operations.***

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Our business may be susceptible to various claims, both in litigation and binding arbitration proceedings, legal proceedings, and government investigations, due to the heightened regulatory scrutiny following the disruptions in the cryptocurrency markets. We believe that since cryptocurrency mining, and the cryptocurrency industry generally, is a relatively new business sector, it is more likely subject to government investigation and regulatory determination, particularly following the recent cryptocurrency market participant bankruptcies described elsewhere herein. Any claims, regulatory proceedings or litigation that could arise in the course of our business could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Regulatory and legislative developments related to environmental concerns may materially adversely affect our brand, reputation, business, prospects, results of operations and financial position.***

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Given the very significant amount of electrical power required to operate bitcoin mining machines, as well as the environmental impact of mining for the rare earth metals used in the production of bitcoin mining servers, the crypto mining industry may become a target for future environmental and energy regulation. Specifically, imposition of a tax or regulatory fee in a jurisdiction where we operate or on electricity that we purchase could result in substantially higher energy costs, and due to the significant amount of electrical power required to operate mining machines, could in turn put our facilities at a competitive disadvantage.

In addition, there continues to be a lack of consistent climate legislation, which creates economic and regulatory uncertainty for our business because the bitcoin mining industry, with its energy demand, may become a target for future environmental and energy regulation. Legislation and increased regulation regarding climate change and other environmental concerns could impose significant costs on us and our suppliers, including costs related to increased energy requirements, capital equipment, environmental monitoring and reporting, costs to purchase renewable energy credits or allowances and other costs to comply with such regulations. Any future environmental regulations could also negatively impact our ability to compete with companies situated in areas not subject to such limitations.

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Moreover, in the State of Texas, we currently participate in energy demand response programs to curtail operations, return capacity to the electrical grid, and receive funds to offset foregone operational revenue when necessary, such as in extreme weather events. Furthermore, we, as well as other bitcoin miners operating primarily in the State of Texas, have recently received a mandatory survey from the U.S. Energy Information Administration (the "EIA"), seeking extensive information regarding our Facilities' use of electricity, and certain information regarding our operations although such survey was successfully challenged in court and set aside. It is possible that mandatory surveys will be used by the EIA in the future to generate negative reports regarding the bitcoin mining industry's use of power and other resources, which could spur additional negative public sentiment and adverse legislative and regulatory action against us or the bitcoin mining industry as a whole. Surveys and other regulatory actions could increase our cost of operations or otherwise make it more difficult for us to operate at our current locations.

Given the political significance and uncertainty around the impact of climate change and how it should be addressed, we cannot predict how legislation and regulation will affect our financial condition, operating performance and ability to compete. Furthermore, even without such regulation, increased awareness and any adverse publicity in the global marketplace about potential impacts on climate change and the environment by us or other companies in the same industry could harm our reputation. Any of the foregoing could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The cryptocurrencies exchanges on which bitcoin trades are relatively new and, in most cases, largely unregulated and have therefore experienced more fraud and failure compared to established, regulated exchanges for other assets. In the event that cryptocurrencies exchanges representing a substantial portion of the volume in bitcoin trading are involved in fraud or experience security failures or other operational issues, such cryptocurrencies exchanges' failures may result in a reduction in the price of bitcoin and can adversely affect us.***

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Cryptocurrencies exchanges on which bitcoin trades are new and, in most cases, largely unregulated. Furthermore, many cryptocurrencies exchanges (including several of the most prominent U.S. dollar denominated exchanges) do not provide the public with significant information regarding their ownership structure, management teams, corporate practices, or regulatory compliance. As a result, the marketplace may lose confidence in, or may experience problems relating to, cryptocurrency exchanges, including prominent exchanges handling a significant portion of the volume of bitcoin trading.

Some large cryptocurrency market participants have already experienced fraud and/or failure. The bankruptcies of FTX, and BlockFi were unexpected and significantly reduced confidence in the cryptocurrencies industry generally and bitcoin specifically. A lack of stability in the cryptocurrencies exchange market and the closure or temporary shutdown of bitcoin exchanges due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Bitcoin network and result in greater volatility in bitcoin value. These potential consequences of a cryptocurrencies exchange's failure could have a material adverse effect on our business, prospects, results of operations or financial condition.

***The characteristics of cryptocurrencies have been, and may in the future continue to be, exploited to facilitate illegal activity including, but not limited to, fraud, money laundering, tax evasion and ransomware scams, which could negatively affect us.***

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Digital currencies and the cryptocurrency industry are relatively new and, in many cases, lightly regulated or largely unregulated. Some types of digital currency have characteristics, such as the speed with which digital currency transactions can be conducted, the ability to conduct transactions without the involvement of regulated intermediaries, the ability to engage in transactions across multiple jurisdictions, the irreversible nature of certain digital currency transactions and encryption technology that anonymizes these transactions, that make digital currency particularly susceptible to use in illegal activity including, but not limited to, fraud, money laundering, tax evasion and ransomware scams. Two prominent examples of marketplaces that accepted digital currency payments for illegal activities include Silk Road, an online marketplace on the dark web that, among other things, facilitated the sale of illegal drugs and forged legal documents using digital currencies, and AlphaBay, another darknet market that utilized digital currencies to hide the locations of its servers and identities of its users. Both of these marketplaces were investigated and closed by U.S. law enforcement authorities. U.S. regulators, including the SEC, CTFC, and Federal Trade Commission, as well as non-U.S. regulators, have taken legal action against persons alleged to be engaged in Ponzi schemes and other fraudulent schemes involving digital currencies. In addition, the FBI has noted the increasing use of digital currency in various ransomware scams.

While we believe that our risk management and compliance framework, which includes thorough due diligence reviews of our counterparties and reliance on qualified custodians subject to U.S. federal and state oversight, is reasonably designed to identify and mitigate potential illicit activity, we cannot ensure that we will be able to detect any such illegal activity in all instances. Our custodians maintain segregation of client entitlements and implement controls such as sanctions and anti-money laundering screening, blockchain-analytics monitoring of inbound transfers, address whitelisting and restricted lists, and protocols to quarantine unexpected or non-attributable deposits pending enhanced review. These safeguards are intended to reduce the risk that misdirected or illicit assets are commingled with our holdings. However, because the speed, irreversibility and anonymity of certain digital currency transactions make them more difficult to track, fraudulent transactions may be more likely to occur. We, or our custodians, may be specifically targeted by individuals seeking to conduct fraudulent transfers, and it may be difficult or impossible for us to detect and avoid such transactions in certain circumstances. If one of our counterparties (or in the case of digital currency exchanges, their customers) were to engage in or be accused of engaging in illegal activities using digital currency, we could be subject to various fines and sanctions, including limitations on our activities, which could also cause reputational damage and could have a material adverse effect on our business, prospects, results of operations or financial condition.

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***Regulatory actions in one or more countries could severely affect the right to acquire, own, hold, sell or use certain cryptocurrencies or to exchange them for fiat currency, or could be subject to additional regulatory costs and burdens, which may be material.***

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As cryptocurrencies have grown in both popularity and market size, governments around the world have reacted differently to cryptocurrencies; certain governments have deemed them illegal, and others have allowed their use and trade without restriction, while some jurisdictions, such as the United States, subject the mining, ownership and exchange of cryptocurrencies to extensive, and in some cases overlapping, unclear and evolving regulatory requirements.

It is possible that state or federal regulators may seek to impose harsh restrictions or total bans on bitcoin mining which may make it impossible for us to do business without relocating our mining operations, which could be very costly and time consuming. Further, although bitcoin and bitcoin mining, as well as cryptocurrencies generally, are largely unregulated in most countries (including the United States), regulators could undertake new or intensify regulatory actions that could severely restrict the right to mine, acquire, own, hold, sell, or use cryptocurrency or to exchange it for traditional fiat currency such as the United States Dollar.

In 2021, the Chinese government declared that all digital currency-related business activities are illegal, effectively banning mining and trading in cryptocurrencies, such as bitcoin. Other countries, such as India or Russia, may take similar regulatory actions in the future that could severely restrict the right to acquire, own, hold, sell or use cryptocurrencies or to exchange them for fiat currency. In some nations, it is illegal to accept payment in bitcoin and other cryptocurrencies for consumer transactions and banking institutions are barred from accepting deposits of cryptocurrencies. Such restrictions may adversely affect us as the large-scale use of cryptocurrencies as a means of exchange is presently confined to certain regions.

In January 2025, U.S. President Donald Trump issued an executive order forming a presidential working group to establish a clear regulatory framework for cryptocurrencies, and leaders in both houses of the U.S. Congress have announced a bicameral working group with the objective of passing legislation to provide regulatory clarity for the industry. Committees in both houses of the U.S. Congress have held hearings to ensure fair access to financial services, including for companies operating in the cryptocurrency space. Additionally, President Trump and members of the U.S. Congress announced that they are studying the possibility of creating a national strategic cryptocurrency reserve to include bitcoin, and at least twelve states have introduced legislation to create strategic bitcoin reserves.

Furthermore, in the future, foreign governments may decide to subsidize or in some other way support certain large-scale cryptocurrency mining projects, thus adding hashrate to the overall network. Such circumstances could have a material adverse effect on the amount of bitcoin we may be able to mine, the value of bitcoin and any other cryptocurrencies we may potentially acquire or hold in the future and, consequently could have a material adverse effect on our business, prospects, results of operations or financial condition.

***Changes in regulatory interpretations could require us to register as a money services business or money transmitter, leading to increased compliance costs or operational shutdowns.***

The Financial Crimes Enforcement Network, a division of the U.S. Treasury Department ("FinCEN") regulates providers of certain services with respect to "convertible virtual currency," including bitcoin. Businesses engaged in the transfer of convertible virtual currencies are subject to registration and licensure requirements at the U.S. federal level and also under U.S. state laws. While FinCEN has issued guidance that cryptocurrency mining on your own behalf, without engagement in other activities, does not require registration and licensure with FinCEN, this could be subject to change as FinCEN and other regulatory agencies continue their scrutiny of the Bitcoin network and cryptocurrencies generally.

If regulatory changes or interpretations require us to register as a money services business with FinCEN under the U.S. Bank Secrecy Act, or as a money transmitter under state laws, we may be subject to extensive regulatory requirements, resulting in significant compliance costs and operational burdens. In such a case, we may incur extraordinary expenses to meet these requirements or, alternatively, may determine that continued operations are not viable. Furthermore, we may not be capable of complying with certain federal or state regulatory obligations applicable to "money services businesses" and "money transmitters", such as monitoring transactions and blocking transactions, because of the nature of the bitcoin blockchain. If we are deemed to be subject to and determine not to comply with such additional regulatory and registration requirements, we may act to dissolve and liquidate. If we decide to cease certain operations in response to new regulatory obligations, such actions could occur at a time that is unfavorable to investors.

Multiple states have implemented or proposed regulatory frameworks for cryptocurrency businesses. Compliance with such state-specific regulations may increase costs or impact our business operations. Furthermore, if we or our service providers are unable to comply with evolving federal or state regulations, we may be forced to dissolve or liquidate certain operations, which could materially impact our investors.

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***Legislative or regulatory change regarding the regulation of "commodities" by the CFTC and the regulation of bitcoin and other cryptocurrencies as "digital commodities" could subject us to additional regulatory burdens and oversight and could adversely affect the market price of bitcoin and the market price of our listed securities.***

The CFTC has stated and judicial decisions involving CFTC enforcement actions have confirmed that at least some cryptocurrencies, including bitcoin, fall within the definition of a "commodity" under the U.S. Commodity Exchange Act of 1936 (the "CEA") and the rules promulgated by the CFTC thereunder ("CFTC Rules"). While the CFTC has enforcement authority to police against fraud and manipulation in spot commodity markets (including the spot market for cryptocurrencies, such as bitcoin, that are commodities), the CFTC only has regulatory and supervisory jurisdiction with respect to "commodity interest" transactions, such as futures, options, and swaps on a commodity (including a cryptocurrency commodity) and certain leveraged, margined, or financed transactions in commodities involving retail customers. Accordingly, we are not currently regulated or supervised by the CFTC and are not subject to the legal and regulatory obligations that are applicable to CFTC-registered entities under the CEA and CFTC Rules.

As discussed above, the regulation of cryptocurrencies in the U.S. remains uncertain and subject to change, including as a result of the enactment and adoption of new laws and regulations and the pursuit of other regulatory, legislative, enforcement or judicial actions. For example, the proposed CLARITY Act recently passed by the U.S. House of Representatives and other draft cryptocurrency market structure and regulation bills have proposed granting the CFTC additional regulatory and supervisory powers with respect to spot cryptocurrencies as "digital commodities." While it is not possible to predict whether and in what form such proposals will be adopted, changes to or expansion of the jurisdiction of the CFTC with respect to spot market activities in cryptocurrencies, including bitcoin, could result in the imposition of additional regulatory obligations and burdens, which could include registration requirements. Such additional regulatory burdens and oversight could adversely affect the market price of bitcoin and in turn adversely affect the market price of our listed securities.

***Due to lack of clarity of application of commodities laws to digital asset treasury strategies, we may be deemed to be a "commodity pool" under CEA and CFTC Rules as a result of our commodity interest trading which could have a material adverse effect on our business, financial condition and results of operations.***

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Based on the current framework of the CEA and CFTC Rules, we do not believe our mining activities or the holding of spot bitcoin in our corporate treasury would, on its own, cause us to be considered a "commodity pool". The CEA and CFTC Rules define a "commodity pool" as any investment trust, syndicate, or similar form of enterprise operated for the purpose of trading in "commodity interests," such as swaps, futures, and options on a commodity underlying (including a digital asset that constitutes a commodity). Although as described above we may engage in certain derivatives transactions, we do not believe that we are a "commodity pool" as such term is defined. Accordingly, (i) no person is registered with the CFTC as a commodity pool operator ("CPO") or a commodity trading adviser ("CTA") with respect to our Company; and (ii) our shareholders will not have the regulatory protections provided to investors in a commodity pool operated or advised by a registered CPO or CTA, as applicable.

However, we note that the legal and regulatory landscape is evolving with respect to digital assets, and there is uncertainty regarding how commodity laws may be applied to operating companies that maintain significant bitcoin treasuries or engage in incidental hedging or financing transactions referencing digital commodities. For example, the CFTC has previously interpreted "for the purpose of trading" in the "commodity pool" definition as being triggered where only one swap is executed. In addition, it is possible that if the CLARITY Act were to become law as currently proposed, our holdings of bitcoin could cause us to be deemed a "commodity pool" under the Commodity Exchange Act, which would require us and certain of our associated persons to register with the Commodities Exchange Commission and comply with ongoing regulatory requirements such as reporting and supervisory requirements.

If our Company were determined to be a "commodity pool" as a result of any future change in legislation, regulation, or interpretation, we may be subject to additional regulatory requirements which may be burdensome or costly or that could make it impractical or impossible for us to continue our business as currently contemplated. For example, a commodity pool must generally be operated as a separately cognizable entity from its CPO and any person acting as a CPO or CTA with respect to a commodity pool must be registered with the CFTC and a member of the National Futures Association ("NFA"). Absent an applicable exemption, a registered CPO or CTA must generally provide investors with a "disclosure document" in compliance with the CFTC Rules and the requirements of the NFA and must comply with a range of ongoing reporting and recordkeeping requirements on registered and certain exempt commodity pool operators. Registration can be time-consuming, expensive and restrictive, and compliance with these additional regulatory requirements could result in substantial, non-recurring expenses adversely affecting an investment in our securities. If we determine not to comply with such regulations, we may be forced to cease or modify certain of our operations, which could negatively impact our investors.

In light of the unsettled application of commodity laws to digital asset treasury practices, we continuously monitor regulatory developments and seek to structure any risk management activity in a manner we believe is consistent with our status as an operating company, rather than as an enterprise operated for the purpose of trading in commodity interests. Nevertheless, the lack of clarity in this area presents regulatory risk that could adversely affect us if interpretations evolve in a manner that differs from our expectations.

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***Any actual or perceived failure to comply with new or existing laws, regulations and other requirements relating to the privacy, security and processing of personal information could adversely affect our business, prospects, results of operations or financial condition.***

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In connection with running our business, we receive, store, use and otherwise process information that relates to individuals and/or constitutes "personal data," "personal information," "personally identifiable information," or similar terms under applicable data privacy laws (collectively, "Personal Information"), including from and about actual and prospective users, as well as our employees and business contacts. We are therefore subject to federal, state and foreign laws, regulations and other requirements relating to the privacy, security and handling of Personal Information.

The application and interpretation of such requirements are constantly evolving and are subject to change, creating a complex compliance environment. In some cases, these requirements may be either unclear in their interpretation and application or they may have inconsistent or conflicting requirements with each other. Further, there has been a substantial increase in legislative activity and regulatory focus on data privacy and security in the United States and elsewhere, including in relation to cybersecurity incidents. In addition, some such requirements place restrictions on our ability to process Personal Information across our business or across country borders.

It is possible that new laws, regulations and other requirements, or amendments to or changes in interpretations of existing laws, regulations and other requirements, may require us to incur significant costs, implement new processes, or change our handling of information and business operations, which could ultimately hinder our ability to grow our business by extracting value from our data assets. In addition, any failure or perceived failure by us to comply with laws, regulations and other requirements relating to the privacy, security and handling of information could result in legal claims or proceedings (including class actions), regulatory investigations or enforcement actions. We could incur significant costs in investigating and defending such claims and, if found liable, pay significant damages or fines or be required to make changes to our business. These proceedings and any subsequent adverse outcomes may subject us to significant negative publicity and an erosion of trust. If any of these events were to occur, our business, prospects, results of operations, and financial condition could be materially adversely affected.

**Risks Related to Ownership of Our Class A Common Stock**

***We have identified material weaknesses in our internal controls over financial reporting. If we fail to remedy these material weaknesses, we may not be able to accurately report our financial condition or results of operations in the future.***

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Prior to the completion of this registration statement, we have been a private company with limited accounting personnel to adequately execute our accounting processes and limited supervisory resources with which to address our internal control over financial reporting. In connection with the preparation of our financial statements for the years ended December 31, 2025 and December 31, 2024, management identified material weaknesses in the design and operating effectiveness of our internal controls over financial reporting. 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 the annual or interim financial statements will not be prevented or detected on a timely basis.

In connection with the preparation of our financial statements as of December 31, 2025, management and its independent registered public accounting firm identified material weaknesses in internal controls: (1) lack of effective controls related to the accounting for mining revenue, bitcoin held, and the related gains and losses, (2) lack of effective IT controls over user access reviews, administrative access, segregation of duties, and change management in the our general ledger system; (3) lack of effective controls over the evaluation of goodwill impairment; and (4) lack of effective controls over the accounting for fixed assets held for use.

We have not identified any material misstatements to our financial statements resulting from the material weaknesses described above. Nevertheless, we recognize that each of the material weaknesses described above could result in misstatements to financial statement accounts and disclosures that could result in a material misstatement to the annual or interim consolidated financial statements that may not be prevented or detected on a timely basis.

We are in the process of implementing a plan to remediate the material weaknesses. Our remediation plan includes implementing additional policies, procedures and controls, all of which have and will continue to cause us to incur additional costs. When we are satisfied that the internal control over financial reporting associated with the material weaknesses has been effectively designed and operated within our Company for a sufficient period of time, we will determine if we have remediated our material weaknesses. We have not been required to provide a management assessment of internal control over financial reporting under the rules and regulations of the SEC regarding compliance with Section 404(a) of the Sarbanes-Oxley Act ("Section 404(a)"). It is possible that if we had a Section 404(a) assessment, additional material weaknesses may have been identified. Additionally, our registered independent public accounting firm has not been engaged to perform an audit of our internal control over financial reporting.

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In the future, it is possible that additional material weaknesses may be identified that we may be unable to remedy before the requisite deadline for those reports. Our ability to comply with the annual internal control over financial reporting requirements will depend on the effectiveness of our financial reporting and relevant information systems and controls across our Company. Any weaknesses or deficiencies or any failure to implement required new or improved controls, or difficulties encountered in the implementation or operation of these controls, could harm our results of operations and cause us to fail to meet our financial reporting obligations or result in material misstatements in our consolidated financial statements, which could adversely affect our business and reduce our stock price.

***If we fail to establish and maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed.***

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We have identified material weaknesses in our financial reporting. If we fail to remedy these material weaknesses, experience additional material weaknesses in the future or otherwise fail to continue to design, implement and maintain effective internal control over financial reporting, we may not be able to accurately 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.

As a result of becoming a public company, we will be required, under the rules and regulations of the SEC regarding compliance with Section 404 of the Sarbanes-Oxley Act ("Section 404"), to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting beginning with our second Annual Report on Form 10-K. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting.

To comply with the requirements of being a reporting company under the Exchange Act, including performing the evaluation needed to comply with Section 404, we will need to implement additional internal controls over financial reporting, including but not limited to controls over relevant information systems, and hire additional accounting and finance staff. This will require substantial additional professional fees and internal costs to expand our accounting and finance functions and significant management efforts. We have spent and expect to continue to spend significant time and resources designing, evaluating and testing our accounting procedures and internal controls. Prior to listing, we have never been required to test our internal control over financial reporting within a specified period. We may not be able to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal control over financial reporting is effective.

If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness in our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our Class A common stock could decline, and we could be subject to sanctions or investigations by the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to capital markets.

***The registration and listing of our Class A common stock differ significantly from an underwritten initial public offering.***

 ****

This listing is not an underwritten initial public offering of our Class A common stock. The registration and listing of our Class A common stock on Nasdaq differs from an underwritten initial public offering in several significant ways, which include the following:

● There are no underwriters. Consequently, prior to the opening of trading of our Class A common stock on Nasdaq, there will be no book building process and no price at which underwriters initially sell shares to the public to help inform efficient and sufficient price discovery with respect to opening trades on Nasdaq. Therefore, buy and sell orders submitted prior to and at the opening of trading of our Class A common stock on Nasdaq will not have the benefit of being informed by a published price range or a price at which the underwriters initially sell shares to the public, as would be the case in an underwritten initial public offering. We will not be involved in the price-setting process. Moreover, there will be no underwriters assuming risk in connection with resales of shares of our Class A common stock. Additionally, because there are no underwriters, there is no underwriters' option to purchase additional shares of our Class A common stock. In an underwritten initial public offering, the underwriters may engage in "covered" short sales in an amount of shares representing the underwriters' option to purchase additional shares. To close a covered short position, the underwriters purchase shares in the open market or exercise the underwriters' option to purchase additional shares. In determining the source of shares to close the covered short position, the underwriters typically consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the underwriters' option to purchase additional shares. Purchases in the open market to cover short positions, as well as other purchases underwriters may undertake for their own accounts, may have the effect of preventing a decline in the market price of shares. Given that there will be no underwriters' option to purchase additional shares and no underwriters engaging in stabilizing transactions, there could be greater volatility in the public price of our Class A common stock during the period immediately following the listing.

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● There is not a fixed or determined number of shares of Class A common stock available for sale in connection with the registration and listing of the Class A common stock on Nasdaq. Therefore, there can be no assurance that any Registered Stockholders or other existing stockholders will sell any of their shares of Class A common stock and there may initially be a lack of supply of shares of Class A common stock on Nasdaq. Similarly, there can be no assurance that there will be any demand for our shares of Class A common stock from our Registered Stockholders or other existing stockholders who wish to sell once our shares of Class A common stock are registered and listed. Alternatively, we may have a large number of Registered Stockholders or other existing stockholders who choose to sell their shares of Class A common stock in the near term, which may be likely as all of the shares of Class A common stock held by our existing stockholders have, since issuance, been restricted from being sold, transferred, pledged or otherwise disposed of without written authorization from the Board until the later of effectiveness of a registration statement filed by us with the SEC under the Exchange Act or the listing of the Class A common stock on Nasdaq or another registered securities exchange, which could result in potential oversupply of our Class A common stock, which could materially and adversely impact the price of our Class A common stock.

● None of our Registered Stockholders or other existing stockholders have entered into contractual lock-up agreements or other contractual restrictions on transfer, other than the Lock-Up under the Securities Purchase Agreements. In an underwritten initial public offering, it is customary for an issuer's officers, directors, and most or all of its other stockholders to enter into a 180-day contractual lock-up arrangement with the underwriters to help promote orderly trading immediately after such initial public offering. Consequently, any of our stockholders, including our directors and officers who own our Class A common stock and other significant stockholders, may sell any or all of their shares of Class A common stock, including immediately upon listing. If such sales were to occur in a significant volume in a short period of time, it may result in an oversupply of our Class A common stock in the market, which could materially and adversely impact the price of our common stock.

● We will not conduct a traditional "roadshow" with underwriters prior to the opening of trading of our Class A common stock on Nasdaq. There can be no guarantee that any investor day presentations, other investor education presentations, and other investor education meetings we may conduct will have the same impact on investor education as a traditional "roadshow" conducted in connection with an underwritten initial public offering. As a result, there may not be efficient or sufficient price discovery with respect to our Class A common stock or sufficient demand among potential investors immediately after our listing, which could result in a more volatile price of our Class A common stock.

● Since we are not conducting an underwritten initial public offering for our Class A common stock, the market price for our Class A common stock may be highly volatile and trading volume may be uncertain, which may adversely affect your ability to sell any shares of Class A common stock that you may purchase. Upon listing on Nasdaq, the public price of our Class A common stock may be more volatile than in an underwritten initial public offering and could decline significantly and rapidly.

● Because of the relatively novel listing process and the large stockholder base of our company, individual investors, retail, or otherwise, may have greater influence in setting the opening public price and subsequent public prices of our Class A common stock on Nasdaq and may participate more in our initial trading than is typical for an underwritten initial public offering. These factors could result in a public price of our Class A common stock that is higher than other investors (such as institutional investors) are willing to pay, which could cause volatility in the trading price of our Class A common stock and an unsustainable trading price if the price of our Class A common stock significantly rises upon listing and institutional investors believe our Class A common stock is worth less than retail investors, in which case the price of our Class A common stock may decline over time. Further, if the public price of our common stock is above the level that investors determine is reasonable for our Class A common stock, some investors may attempt to short our Class A common stock after trading begins, which would create additional downward pressure on the public price of our Class A common stock. Moreover, to the extent that there is a lack of consumer awareness among retail investors, such lack of consumer awareness could reduce the value of our Class A common stock and cause volatility in the trading price of our Class A common stock. These factors may be exacerbated by selling pressure from our existing stockholders as this listing process is the first opportunity any of our stockholders will have for liquidity in our shares of Class A common stock because the restrictions on transfer imposed in connection with the Plan as described under the heading "Description of Capital Stock—Common Stock—Transfer Restrictions" will expire.

***Market volatility may affect the value of an investment in our Class A common stock and could subject us to litigation.***

 ****

In addition to the potential market volatility in connection with our initial listing described immediately above, technology stocks have historically experienced high levels of volatility. The price of our Class A common stock also could be subject to wide fluctuations in response to the risk factors described in this prospectus and others beyond our control, including:

● the number of shares of our Class A common stock publicly owned and available for trading;

● overall performance of the equity markets or publicly-listed financial services and technology companies;

● our actual or anticipated operating performance and the operating performance of our competitors;

● changes in the projected operational and financial results we provide to the public or our failure to meet those 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;

● any major change in our Board of Directors, management, or key personnel;

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● if we issue additional shares of capital stock, including in the form of blockchain tokens, in connection with customer reward or loyalty programs;

● rumors and market speculation involving us or other companies in our industry;

● announcements by us or our competitors of significant innovations, new products, services, features, integrations or capabilities, acquisitions, strategic investments, partnerships, joint ventures, or capital commitments; and

● other events or factors, including those resulting from pandemics, war, incidents of terrorism, or responses to these events.

Furthermore, the stock market has recently experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies and financial services and technology companies in particular. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes, or international currency fluctuations, may negatively impact the market price of our Class A common stock. These fluctuations may be even more pronounced in the trading market for our Class A common stock shortly following the listing of our Class A common stock on Nasdaq as a result of the supply and demand forces described above. If the market price of our Class A common stock after our listing does not exceed the opening public price, you may not realize any return on your investment in us and may lose some or all of your investment. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management's attention from other business concerns, which could harm our business.

***An active, liquid, and orderly market for our Class A common stock may not develop or be sustained. You may be unable to sell your shares of Class A common stock at or above the price you bought them for or for the value of the shares agreed upon by the creditors and debtors of the Celsius bankruptcy at the time the shares were issued.***

 ****

We currently expect our Class A common stock to be listed and traded on Nasdaq. Prior to the listing of our Class A common stock on Nasdaq, there has been no public market for our Class A common stock and there has been a limited history of sales of shares of our Class A common stock in private transactions. The purchase price of our shares of Series A Preferred Stock and Warrants in the Private Placement, the only historical private transaction relating to our securities, may have little or no relation to the opening public price of shares of our Class A common stock on Nasdaq or the subsequent trading price of shares of our Class A common stock on Nasdaq. Moreover, consistent with Regulation M and other federal securities laws applicable to our listing, we have not consulted with Registered Stockholders or other existing stockholders regarding their desire or plans to sell shares in the public market following the listing or discussed with potential investors their intentions to buy our Class A common stock in the open market. While our Class A common stock may be sold after our listing of the Class A common stock on Nasdaq by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders (subject to the Lock-Up under the Securities Purchase Agreements), unlike an underwritten initial public offering, there can be no assurance that any Registered Stockholders or other existing stockholders will sell any of their shares of Class A common stock. As a result, there may initially be a lack of supply of, or demand for, Class A common stock on Nasdaq. In the case of a lack of supply of our Class A common stock, the trading price of our Class A common stock may rise to an unsustainable level. Further, institutional investors may be discouraged from purchasing our Class A common stock if they are unable to purchase a block of our Class A common stock in the open market due to a potential unwillingness of our existing stockholders to sell a sufficient amount of Class A common stock at the price offered by such institutional investors and the greater influence individual investors have in setting the trading price. If institutional investors are unable to purchase our Class A common stock, the market for our Class A common stock may be more volatile without the influence of long-term institutional investors holding significant amounts of our Class A common stock. Conversely, there can be no assurance that the Registered Stockholders and other existing stockholders will not sell all of their shares of Class A common stock, resulting in an oversupply of our Class A common stock on Nasdaq. As noted above, we may experience selling pressure from our existing stockholders as this listing process is the first opportunity any of our stockholders will have for liquidity in our shares of Class A common stock because the restrictions on transfer imposed in connection with the Plan as described under the heading "Description of Capital Stock—Common Stock—Transfer Restrictions" will expire and our stockholders are not subject to any contractual lock-ups other than the Lock-Up under the Securities Purchase Agreements. In the case of a lack of demand for our Class A common stock, the trading price of our Class A common stock could decline significantly and rapidly after the listing of our Class A common stock on Nasdaq. Therefore, an active, liquid, and orderly trading market for our Class A common stock may not initially develop or be sustained, which could significantly depress and result in significant volatility in the price of our Class A common stock. This could affect your ability to sell your shares of common stock.

***The public price of our shares of Class A common stock upon listing on Nasdaq may have little or no relationship to the historical sales prices of our securities in private transactions.***

 ****

Prior to listing on Nasdaq, there has been no public market for our shares of Class A common stock. Our shares of Class A common stock have a limited history of sales in private transactions. Historical sale prices may have little or no relation to broader market demand for our shares of Class A common stock and thus the initial public price of our shares of Class A common stock on Nasdaq once trading begins (see "Sale Price History of Our Securities" for more information). As a result, you should not place undue reliance on these historical sales prices as they may differ materially from the opening public prices and subsequent public prices of our shares of Class A common stock on Nasdaq. For additional details about how the initial listing price on Nasdaq will be determined, see "Plan of Distribution."

***We are an emerging growth company and are able to take advantage of reduced disclosure requirements applicable to "emerging growth companies," which could make our shares of Class A common stock less attractive to investors.***

 ****

We are an "emerging growth company" as defined in 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 date of this listing; (ii) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules.

We expect that we will remain an emerging growth company for at least a couple of years but cannot retain our emerging growth company status indefinitely and will under current law no longer qualify as an emerging growth company no later than December 31, 2031. References herein to "emerging growth company" has the meaning associated with it in the JOBS Act.

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For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

● being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure;

● not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;

● not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board ("PCAOB") regarding mandatory audit firm rotation or supplement to the auditor's report providing additional information about the audit and the financial statements;

● reduced disclosure obligations regarding executive compensation; and

● not being required to hold a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously adopted.

For as long as we continue to be an emerging growth company, we expect that we will take advantage of the reduced disclosure obligations available to us as a result of that classification.

***We currently do not intend to pay dividends on our Class A common stock.***

 ****

We do not anticipate that we will pay any cash dividends on shares of our Class A common stock for 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 results of operations, financial condition, contractual restrictions, restrictions imposed by applicable law and other factors our Board of Directors deems relevant.

***Our Amended and Restated Certificate of Incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, which could limit the ability of our stockholders to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.***

 ****

Our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (a) any derivative action, suit or proceeding brought on behalf of the Company; (b) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed or allegedly owed by, or other wrongdoing by, any director, officer, stockholder, employee or agent of the Company to the Company or the Company's stockholders; (c) any action, suit or proceeding asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company arising pursuant to any provision of the DGCL, the amended and restated certificate of incorporation or the amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; (d) any action, suit or proceeding to interpret, apply, enforce or determine the validity of the amended and restated certificate of incorporation or the amended and restated bylaws; (e) any action asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company governed by the internal affairs doctrine; or (f) any other action, suit or proceeding asserting an "internal corporate claim" as defined in Section 115 of the DGCL.

We note that there is uncertainty as to whether a court would enforce the provision and that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. The provision may have the effect of discouraging lawsuits against our directors and officers.

This exclusive choice of forum provision in our amended and restated certificate of incorporation may limit a stockholder's ability to bring a claim in a judicial forum that the stockholder finds favorable for disputes with us or any of our directors, officers or other employees, or could result in increased costs for a stockholder to bring a claim, particularly if the stockholder does not reside in or near Delaware, both of which may discourage such lawsuits against us and our directors, officers and employees. There is uncertainty as to the enforceability of exclusive forum provisions with respect to certain matters arising under the federal securities laws, and if a court were to find these provisions of our amended and restated certificate of incorporation or amended and restated bylaws, as amended, inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could have a material adverse effect on our business, prospects, results of operations or financial condition. The exclusive forum provision in our amended and restated certificate of incorporation is limited to the extent permitted by law.

***If securities or industry analysts do not publish research or reports or publish unfavorable research or reports about our business, our stock price and trading volume could decline.***

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The trading market for our Class A common stock will depend in part on the research and reports that securities or industry analysts publish about us, our business, our market or our competitors. We may not obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of our company, the trading price for our stock could be negatively impacted. In the event we obtain securities or industry analyst coverage, if one or more of the analysts who covers us publishes unfavorable research or reports or downgrades our stock, our stock price would likely decline. If one or more of these analysts ceases to cover us or fails to regularly publish reports on us, interest in our stock could decrease, which could cause our stock price or trading volume to decline.

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**MARKET AND INDUSTRY DATA**

This prospectus includes estimates regarding market and industry data, which are based on publicly available information, industry publications and surveys, reports from government agencies, reports by market research firms or other independent sources and our own estimates based on our management's knowledge of and experience in the market sectors in which we compete.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the estimated market and industry data included in this prospectus is generally reliable, such information is inherently uncertain and imprecise. Market and industry data is subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates.

Certain monetary amounts, percentages and other figures included in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.

**TRADEMARKS AND TRADE NAMES**

This prospectus includes our trademarks and trade names, such as Ionic Digital, which are protected under applicable intellectual property laws and are our property. Solely for convenience, trademarks, service marks and trade names referred to in this prospectus may appear without the <sup>®</sup>,™, or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names. This prospectus may also contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

**USE OF PROCEEDS**

Registered Stockholders may elect to sell shares of our Class A common stock covered by this prospectus. All shares held by the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement, subject to the Lock-Up under the Securities Purchase Agreements. To the extent any Registered Stockholder chooses to sell shares of our Class A common stock covered by this prospectus, we will not receive any proceeds from any such sales of our Class A common stock.

**DIVIDEND POLICY**

We currently intend to retain all available funds and any future earnings to fund the development and growth of our business, and therefore we do not anticipate paying any cash dividends in the foreseeable future.

Future cash dividends, if any, will be at the discretion of our Board, subject to applicable law, and will depend upon, among other things, our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors the Board may deem relevant.

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**CAPITALIZATION**

The following table sets forth our actual cash and cash equivalents and capitalization as of March 31, 2026, as follows:

● on an actual basis; and

● on a pro forma basis to give effect to (i) the June 2026 issuance and sale of 7,547,166 shares of Series A Preferred Stock at $53.00 per share for aggregate net proceeds of $383.2 million after deducting an estimated $16.8 million in transaction fees; (ii) the June 2026 issuance of warrants to purchase 1,006,286 shares of Class A common stock at an exercise price of $63.60 per share, warrants to purchase 1,006,286 shares of Class A common stock at an exercise price of $74.20 per share, and warrants to purchase 1,006,286 shares of Class A common stock at an exercise price of $87.45 per share; and (iii) the automatic conversion of all outstanding shares of Series A Preferred Stock into 7,547,166 shares of Class A common stock that will occur upon the completion of this listing, in each case as if such event had occurred on March 31, 2026.

The pro forma information shown below is for illustrative purposes only. The information below should be read in conjunction with the condensed consolidated financial statements and the related notes included elsewhere in this prospectus, and with the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Company has not yet completed its accounting analysis of the Private Placement, including the final determination of the classification and measurement of the Series A Preferred Stock and the accounting for the conversion into Class A common stock. Accordingly, the pro forma adjustments reflected herein are based on management's preliminary estimates and are subject to revision as the Company's analysis is finalized. The actual amounts recorded in the Company's financial statements may differ from those presented, and such differences could be material.

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| | **As of March 31, 2026** | **As of March 31, 2026** |
| <br>*($ in thousands, except share amounts)* | **Actual** | **Pro Forma** |
| **Cash and cash equivalents** | $34916 | $418116 |
| **Long-term debt** | $— | $— |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.00001 par value, 15,000,000 shares authorized; none issued and outstanding, actual and pro forma | $— | $— |
| &nbsp;&nbsp;&nbsp;Class A common stock, $0.00001 par value, 1,000,000,000 shares authorized; 37,374,261 shares issued and outstanding, actual; 44,921,427 shares issued and outstanding, pro forma |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 757433 | 1140633 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (220562) | (220562) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | $536871 | $920071 |
| **Total capitalization** | $536871 | $920071 |

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As disclosed in "Prospectus Summary — Recent Developments," the Company also sold Warrants as part of the Private Placement. The features of the warrants issued may create a warrant derivative liability that we would record in our financial statements. We have not yet finalized the accounting treatment for the issuance of such warrants. The stockholder's equity amount used to determine our pro forma capitalization shown in the table above does not give effect to such potentially material warrant derivative liabilities. Accordingly, the proceeds allocable to stockholder's equity may be less than the amounts presented herein and such difference may be material.

In June 2026, we also issued 40,000 shares of Series Z Preferred Stock for an aggregate of $0.40 in proceeds. The shares of Series Z Preferred Stock have 1,000 votes per share of Series Z Preferred Stock, but do not have any economic rights with respect to dividends, liquidation or otherwise. The holder of the Series Z Preferred Stock has agreed that it will vote such stock in the same proportion as votes cast by holders of the Class A common stock on any matter submitted to stockholders at our 2026 annual meeting of stockholders. The shares of Series Z Preferred Stock are not included in the pro forma adjustments above due to immateriality. The shares of Series Z Preferred Stock will be automatically redeemed for $0.40 in the aggregate following the conclusion of our 2026 annual meeting of stockholders, which is scheduled to occur on July 13, 2026. The Series Z Preferred Stock is intended to ensure the presence of a quorum to conduct an annual meeting of stockholders within the time period required by Delaware law.

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**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 together with (a) our unaudited condensed consolidated financial statements and notes as of March 31, 2026 (Successor) and for the three month periods ended March 31, 2026 and 2025 (Successor) and (b) our audited consolidated financial statements and notes as of December 31, 2025 (Successor) and December 31, 2024 (Successor) and for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor) and one month ended January 31, 2024 (Predecessor), in each case appearing elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to the Company's plans and strategy for its business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections of this prospectus, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Certain amounts may not foot due to rounding.* 

 

*In this section, references to "Ionic Digital" or the "Successor," refer to Ionic Digital Inc., the Company that acquired substantially all of the assets and assumed certain liabilities from Celsius Mining LLC (the "Predecessor" or "Celsius Mining") following the Chapter 11 bankruptcy filing of Celsius Network LLC and certain of its subsidiaries and affiliates, including the Predecessor (the "Debtors"). References to the "Company," "we," "us" and "our" refer to Ionic Digital for periods on or after January 31, 2024.*

**Overview**

We are a digital infrastructure solutions and cryptocurrency mining company. We began as a pure-play cryptocurrency mining company when we were formed in January 2024 to acquire all of the cryptocurrency mining assets of Celsius Mining. From our inception, our core objective has been to monetize our portfolio of powered digital infrastructure assets. Historically, we have monetized these assets by efficiently mining bitcoin. More recently, we have sought to achieve this objective by primarily leasing our digital infrastructure assets to hyperscalers, enterprise customers and other businesses for high-performance computing ("HPC") and artificial intelligence ("AI") cloud infrastructure.

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale Ward County LLC (together, with its affiliates, "Nscale"), a global hyperscaler engineered for sovereign-grade AI infrastructure at our Ward County property in West Texas. In February 2026, we amended the lease. We refer to the lease, as amended, as the "Nscale Agreement." We received our first payment under the Nscale Agreement in November 2025, and monthly fixed lease payments will commence in August 2026, which represent estimated total contracted revenues of approximately $1.95 billion, increasing to a potential $2.6 billion under the provisions of the amendment.

Entry into the Nscale Agreement is the culmination of a process we began in early 2025 to identify a strong counterparty and develop an attractive contract structure to better monetize our Ward County site. Although we began as a pure-play bitcoin mining operator, we have successfully demonstrated our ability to convert and optimize our infrastructure for use in the HPC/AI sector. We believe our agreement with Nscale represents a transformative transaction, significantly increasing the value of our company and accelerating our strategy to build a diversified digital infrastructure solutions platform with the flexibility to monetize our sites across data centers and other digital infrastructure applications, as market conditions evolve. Our strong balance sheet also gives us the ability to better monetize sites currently mining bitcoin, expand into other markets, and develop additional powered shell data centers. The combination of an existing cryptocurrency mining business, and the Nscale Agreement, provides us with a steady income stream that includes predictable, high-margin cash flows. We believe that those strengths, together with a strong balance sheet, should position us well as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure.

We are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW, when such capacity becomes available, at the same price per MW as the current 234 MW. Since the expanded power capacity under the Nscale Agreement is subject to regulatory approval, we cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated, and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. However, we expect the Ward County property to energize the additional 89 MW during the second half of 2027.

At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million during 2026 and the first half of 2027. At the fully expanded capacity of 700 MW, our total capital expenditures are currently expected to be approximately $64 million incurred primarily during the last half of 2026 and the first half of 2027. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use that power capacity for our own cryptocurrency mining operations.

Our cryptocurrency mining operation utilizes specialized computers, also known as "miners," which use ASIC chips to solve complex cryptographic algorithms to support the bitcoin blockchain in a process known as "solving a block." In exchange for solving the cryptographic problem required to create a new block on the bitcoin blockchain we receive block rewards, or compensation paid in bitcoin that is programmed into the bitcoin software and awarded to a miner, or a group of miners. Block rewards are fixed and the Bitcoin network is designed to reduce them periodically, approximately every four years, through halving. Most recently, in April 2024, the block reward was reduced from 6.25 to 3.125 bitcoin. The next halving event, which will reduce the block reward to 1.5625 bitcoin, is estimated to occur in April 2028.

Bitcoin miners also collect transaction fees for certain transactions they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to new blocks in the blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to confirm valid transactions as a means of collecting fees. Miners have historically accepted relatively low transaction fees, but transaction fees vary and it is difficult to predict what transaction fees will be in the future. Bitcoin miners also collect transaction fees for certain transactions they confirm.

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We contribute our computing power, or hashrate, to a third-party mining pool in exchange for a proportionate share of the block rewards and transaction fees earned by the mining pool.

As of March 31, 2026, we have 112 MW available at our owned and leased sites. We acquired 15,000 refurbished miners during 2025 and, as of March 31, 2026, we owned approximately 120,600 miners with an aggregate hashrate capacity of approximately 12.2 EH/s. As of the date of this prospectus, none of our miners serve as collateral in any financing arrangement.

After pivoting our Ward County facility to support digital infrastructure solutions, the volume of bitcoin mined has decreased in 2026. During the three months ended March 31, 2026, we mined 95.7 bitcoin, net of mining pool participation fees of 0.9 bitcoin and revenue share paid to our hosting partners of 0 bitcoin, an average of 1.1 net bitcoin mined per day. This net bitcoin mined equates to $7.4 million in cryptocurrency mining revenue during the three months ended March 31, 2026. We sold no bitcoin during this period, and as of March 31, 2026, we held a total of 2,815.6 bitcoin in treasury.

Costs of mining revenues primarily consist of energy and facilities management costs at our owned and leased sites. Operating costs for the three months ended March 31, 2026 were driven by (a) general and administrative expense; (b) changes in the fair value of our cryptocurrency held in treasury as the price of bitcoin dropped significantly in the first quarter of 2026.

During the year ended December 31, 2025, after execution of the Company's strategic transition from hosted sites to owned mining operations in West Texas, including Ward County, we mined 1,331.0 bitcoin, net of mining pool participation fees of 6.1 bitcoin and revenue share paid to our hosting partners of 6.4 bitcoin, which equates to an average of 3.6 net bitcoin mined per day. Bitcoin mined, net of pool participation fees, equated to $135.6 million in cryptocurrency mining revenue for the year ended December 31, 2025. During the same period, we sold 1,009 bitcoin at an average price of $100,547, generating aggregate gross proceeds of $101.5 million.

The components of costs of mining revenues were comparable to the first quarter of 2026 as the year ended December 31, 2025 marked a reduced reliance on our hosting partners, thereby reducing hosting fees. Operating costs for the year ended December 31, 2025 were driven by (a) impairment losses on long-lived assets resulting from the declining market conditions during the fourth quarter 2025; (b) impairment loss on goodwill allocated to the cryptocurrency mining business segment; (c) changes in the fair value of our cryptocurrency held in treasury, offset by the realized gain on sales of cryptocurrency made to fund operations during the period; and (d) depreciation expenses, which increased from the eleven months ended December 31, 2024 as the fourth building at Ward County was energized for cryptocurrency mining and began depreciating in January 2025.

Now, during 2026, we are continuing to diversify our revenue streams into other digital infrastructure solutions serving the HPC/AI sector. See "Business—Properties— Ward County." We took on no debt to accomplish these strategic initiatives and during the first quarter of 2026 recognized $44.0 million in revenue from our digital infrastructure solutions business.

Our future financial operating strategy is to prioritize stable, contracted cash flows from our digital infrastructure operations while continuing to generate revenue from bitcoin mining for as long as it remains profitable. Our existing mining assets in Midland will continue to mine bitcoin for as long as such operations remain profitable, while we commence work to develop these locations into HPC/AI facilities. We will opportunistically liquidate our bitcoin holdings to fund capital expenditures, including the expansion of our Ward County property and the development of our Midland sites for HPC/AI use. We view our bitcoin treasury principally as a source of funding flexibility, and we retain full discretion over the timing and amount of any liquidation. We anticipate using liquidity generated by our operations and bitcoin treasury in excess of working capital requirements to advance our growth strategy, which includes expanding contracted capacity at our existing sites, developing additional powered shell and turnkey data center capacity, and pursuing site acquisition opportunities.

**Trends and Key Factors Affecting Performance**

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***Ability to Access Power Capacity***

Increases in Bitcoin network hashrate drive greater demand for additional miners. Additional miners require additional power capacity that can be difficult to source at cost-effective prices or within locations that are favorable to bitcoin mining. We aim to continue to leverage our existing relationships and develop new relationships within the energy industry to secure low-cost power capacity. ****

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***Energy Costs***

Energy costs are the most significant driver of the profitability of our mining business as well as digital infrastructure solutions and can be highly volatile. Network difficulty heavily impacts the amount of energy utilized to earn a bitcoin. We manage our cost of electricity through participation in various demand response programs, power purchase agreements, and curtailment of miners when electricity prices make it unprofitable to mine bitcoin. The Predecessor entered into energy derivatives contracts, which expired in May 2024, and we may do so in the future as well. Geopolitical and macroeconomic factors, such as overseas military or economic conflict between states, can adversely affect electricity costs by raising the cost of power generation inputs such as natural gas. Other events out of our control can also impact electricity costs and availability. In certain power markets, financial hedging can be employed to protect buyers from the financial impact of significant increases in power prices.

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Electricity costs may be adversely affected by macroeconomic or geopolitical events. For example, Russia's invasion of Ukraine in February 2022 exerted pressure on the global energy market, particularly Europe's natural gas supply. Higher liquid natural gas import needs in Europe previously resulted in increased volatility and worldwide supply tensions. The conflict added further pressure to supply chain disruptions and likely supported rising inflation through higher commodity prices. The U.S. experienced elevated electricity pricing possibly due to this conflict, although we have no, and do not intend to have any, direct operations in Russia or Ukraine. The current conflict in Iran has also affected global energy and transportation markets, in particular, the volatility of oil prices due to attacks on infrastructure and blockages of the Strait of Hormuz.

Our energy costs at our owned and leased sites totaled $2.3 million for the three months ended March 31, 2026, compared to $13.3 million for the three months ended March 31, 2025. The decrease in energy cost was due to the repurposing of Ward County facility for digital infrastructure solutions during the fourth quarter of 2025, resulting in a decline of the deployed energy capacity at our owned and leased cryptocurrency mining sites to approximately 87 MW.

Our energy costs at our owned and leased sites totaled $53.6 million for the year ended December 31, 2025 (Successor), compared to $29.1 million for the eleven months ended December 31, 2024 (Successor), and $2.5 million for the one month ended January 31, 2024 (Predecessor). The increase in energy costs was due to an increase in the number of miners that were hashing throughout 2025. Of the miners acquired from the Predecessor on January 31, 2024, approximately 27,200 miners were deployed and actively hashing at our owned and leased sites at that time, which had a capacity of approximately 87 MW. After the final building at the Ward County facility came online in January 2025, and prior to the decommissioning of the Ward County facility, we had total energy capacity of approximately 321 MW at our owned and leased sites. As a result of the decommissioning of the owned mining at Ward County facility during the fourth quarter of 2025, the usable capacity at our owned and leased sites was reduced to approximately 87 MW deployed for cryptocurrency mining operations.

During all periods, we also utilized hosting service providers, for which energy costs are included within the total hosting fees. Both energy costs and hosting fees are reported as Costs of mining revenues, exclusive of depreciation in the Consolidated Statements of Operations.

***Bitcoin Market Price***

The prices of cryptocurrency assets, including bitcoin, have historically experienced substantial volatility. Changes in the market price of bitcoin may have little or no correlation to identifiable market forces and may be subject to rapidly changing investor sentiment. Bitcoin may be valued based on various factors, including its acceptance as a means of exchange by consumers and producers, scarcity, market demand and media reporting.

As we continue to shift our business to leasing digital infrastructure assets, we anticipate that our primary operating revenues will be derived from non-mining activities denominated in U.S. dollars. As our Midland sites are developed and monetized for HPC/AI use, we would expect our bitcoin mining operations — and the bitcoin we generate from those operations — to decline over time. Accordingly, we view our existing bitcoin treasury as a capital allocation asset to be managed and deployed in support of our broader growth strategy, including potential site acquisitions and development, rather than as a long-term balance sheet holding to be indefinitely accumulated.

As a result of the volatility in the price of bitcoin, the effective tax rate of 55.4% for the three months ended March 31, 2026 differed significantly from the U.S. federal statutory rate of 21%, primarily due to the establishment during the quarter of a valuation allowance against the deferred tax asset associated with unrealized losses on the Company's cryptocurrency holdings. As the Company transitions away from holding cryptocurrency on its balance sheet, the Company expects its exposure to future unrealized cryptocurrency losses and associated additional valuation allowances, and a resulting variance from the U.S. federal statutory rate of 21% due to this exposure, to diminish. See Note 12 to the condensed consolidated financial statements included elsewhere in this prospectus for additional information.

***Halving***

Changes to the quantity of bitcoin rewarded per block could directly impact our operating results. The Bitcoin network is subject to periodic scheduled changes in the quantity of bitcoin rewarded per block, known as the halving ("Halving"). Most recently, on April 19, 2024, the block reward was reduced from 6.25 to 3.125 bitcoin. The next Halving event, which will reduce the block reward to 1.5625 bitcoin per block, is estimated to occur in April 2028. This Halving process will repeat until the total amount of bitcoin rewards issued reaches 21 million and the supply of new bitcoin is exhausted, which is presently expected to occur around 2140. Potential future Halving will decrease the amount of bitcoin rewards that we will receive for the block solved, and there is no guarantee the price of bitcoin will adjust accordingly.

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***Network Difficulty***

Additional mining machines deployed onto the Bitcoin network by any participant increase the network hashrate. Increased network hashrate reduces the time spent mining new blocks. To keep the time interval between new blocks fixed at approximately 10 minutes, the Bitcoin network adjusts its "network difficulty" every 2,016 blocks (or roughly every two weeks) such that more hashes are needed to mine a new block. Difficulty is often denoted as the relative difficulty with respect to the genesis block, which requires approximately 2^32 hashes. Changes in network difficulty can adversely affect our mining revenue and margins going forward if the amount of hash time to mine a new block is increased.

***Ability to Source Additional Miners***

Our mining business will be directly impacted by our ability to increase our hashrate and our resulting share of network rewards. Our ability to increase our hashrate depends on purchasing or renting additional miners which are competitive, at cost-effective prices and lead times.

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***Ability to Access Capital Markets***

Bitcoin mining is highly capital intensive. Our ability to scale infrastructure and expand our fleet of miners may depend on our ability to access the capital markets.

***Demand for Digital Infrastructure Solutions***

The planned growth of our digital infrastructure solutions business, through increased investment in HPC/AI infrastructure over the next several years, should gradually reduce our overall exposure to volatility in the spot price of bitcoin as digital infrastructure solutions begins to account for a larger percentage of our financial results. The digital infrastructure solutions business is characterized by implementation of long-term contracts with customers spanning several years and terms and conditions resulting in stable, predictable revenue and cash flows over the contract period.

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***Our Competition and Customers***

Digital asset mining is increasingly dominated by large-scale industrial operators and, in some cases, sovereign nation-states with substantial resources. Competition spans hardware procurement, capital access, low-cost power, and high-power site development. While sector-wide transparency remains limited, available data indicates that network hashrate has continued to rise as both new entrants and existing competitors deploy additional capacity. We believe our mining fleet and low-cost power portfolio position us competitively as the industry matures.

In addition to factors underlying our mining business growth and profitability, the success of our digital infrastructure solutions business greatly depends on our ability to retain and develop opportunities with our existing customer, to secure additional infrastructure, and to attract new customers. In our digital infrastructure solutions business, we compete with data center REITs, developers, hyperscalers, and other bitcoin miners with facilities suitable for HPC workloads, primarily for high-power sites and the capital to develop them. We believe our operational track record and development expertise position us to effectively capture the strong and growing demand for high-power data center capacity.

***Cost to Earn One Bitcoin***

Our profitability in bitcoin mining was, and will continue to be, heavily dependent upon our cost to earn one bitcoin, which we calculate as Cost of mining revenues, exclusive of depreciation as reported in the Consolidated Statement of Operations, divided by the number of bitcoin earned in the period. Management believes that the cost to earn a bitcoin is a key indicator of gross profitability.

The following table provides details regarding the productivity and related costs at our owned and leased sites during the periods presented:

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands, other than Cost per kWh)*** | **Three<br> Months<br> Ended**<br> **March 31,<br> 2026** | **Three<br> Months<br> Ended**<br> **March 31,<br> 2025** |
| **Metrics: Owned and Leased sites** | | |
| Active miners at owned and leased facilities<sup>(1)</sup> | 23200 | 92900 |
| Total kWhs utilized | 108296585 | 408151921 |
| Total bitcoin mined at owned and leased facilities<sup>(2)</sup> | 68.0 | 319.0 |
| Cryptocurrency mining revenue earned at owned and leased facilities<sup>(2)</sup> | $5118 | $29809 |
| Total energy costs | $2260 | $13312 |
| Other direct costs of mining | $1399 | $2480 |
| Cost per kWh | $0.021 | $0.033 |
| Energy costs as percentage of cryptocurrency mining revenue, net | 44.1% | 44.7% |

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(1) *"Active miners" represents the approximate total number of miners hashing at our owned and leased facilities during the final month of the periods presented.* 

(2) *Total bitcoin mined is net of mining pool participation fees paid in bitcoin.* 

Energy costs are the most significant component of our cost to earn one bitcoin at owned and leased sites and are primarily driven by the number of miners deployed, miner uptime, and the underlying price of electricity. At our owned and leased sites, energy costs incurred represented 44.1% of cryptocurrency mining revenue earned at those sites during the three months ended March 31, 2026, compared with 44.7% during the three months ended March 31, 2025. The average energy cost across our owned and leased locations was $0.021 per kilowatt-hour during the three months ended March 31, 2026, compared with $0.033 per kWh during the three months ended March 31, 2025.

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The following table provides details regarding the productivity and related costs at our owned and leased facilities during the periods presented:

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-<br> Possession)** |
| <br>***($ in thousands, other than Cost per kWh)*** | **Year Ended**<br> **December 31,** <br> **2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| **Metrics: Owned and Leased Sites** | | | |
| Active miners at owned and leased facilities<sup>(1)</sup> | 24900 | 81700 | 27200 |
| Total kWhs utilized | 1475467917 | 801330632 | 54753694 |
| Total bitcoin mined at owned and leased facilities<sup>(2)</sup> | 1028.8 | 977.4 | 148.2 |
| Cryptocurrency mining revenue earned at owned and leased facilities<sup>(2)</sup> | $104917 | $67335 | $6370 |
| Total energy costs | $53563 | $29103 | $2517 |
| Other direct costs of mining | $9290 | $10225 | $460 |
| Cost per kWh | $0.036 | $0.036 | $0.046 |
| Energy costs as percentage of cryptocurrency mining revenue, net | 51.1% | 43.2% | 39.5% |

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(1) *"Active miners" represents the approximate total number of miners hashing at our owned and leased facilities during the final month of the periods presented. Data for the Predecessor is approximated based on available records and performance data, which may originate from sources different than those currently employed by Ionic Digital.* 

(2) *Total bitcoin mined is net of mining pool participation fees paid in bitcoin.* 

Energy costs are the most significant component of our cost to earn one bitcoin at owned and leased sites and are primarily driven by the number of miners deployed, miner uptime, and the underlying price of electricity. At our owned and leased sites, energy costs incurred represented 51.1% of cryptocurrency mining revenue earned at those sites during the year ended December 31, 2025 (Successor), compared with 43.2% during the eleven months ended December 31, 2024 (Successor), and 39.5% during the one month ended January 31, 2024 (Predecessor). The average energy cost across our owned and leased locations was $0.036 per kWh during the year ended December 31, 2025 (Successor), compared with $0.036 per kWh during the eleven months ended December 31, 2024 (Successor) and $0.046 per kWh during the one month ended January 31, 2024 (Predecessor), respectively.

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands, other than Cost per kWh)*** | **Three<br> Months<br> Ended<br> March 31,<br> 2026** | **Three<br> Months<br> Ended<br> March 31,<br> 2025** |
| **Metrics: Hosted Mining Sites** | | |
| Active miners at hosted facilities<sup>(1)</sup> |  | 23500 |
| Total kWhs utilized | 44883738 | 153310053 |
| Total bitcoin mined at hosted facilities<sup>(2)</sup> | 28.0 | 121.0 |
| Cryptocurrency mining revenue earned at hosted facilities | $2283 | $11272 |
| Total hosting and revenue share expense | $1944 | $9421 |
| Hosting fees per kWh | $0.043 | $0.061 |
| Hosting and revenue share expense as percentage of cryptocurrency mining revenue, net | 85.2% | 83.6% |

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(1) *"Active miners" represents the total number of miners hashing at our hosted facilities during the final month of the periods presented. In February 2026, we elected not to renew our long-term hosting arrangement with GXD.* 

(2) *Total bitcoin mined is net of mining pool participation fees paid in bitcoin.* 

For our hosted locations, the largest component of direct costs of mining is the operating fees we pay to the hosting facility. As with our owned and leased sites, energy costs are the largest component of the hosting fees. We also pay to each hosting partner a revenue share amount, whether in bitcoin or in U.S. dollars, which fluctuates based on our production of bitcoin at each respective facility. For the three months ended March 31, 2026, the hosting fees and revenue share expense was 85.2% of cryptocurrency mining revenues earned at our hosted sites. Hosting fees and revenue share expense combined were 83.6% of cryptocurrency mining revenues during the three months ended March 31, 2025.

The Company and its Predecessor also had bitcoin mining operations at hosted facilities during the periods presented. The Successor terminated the hosting agreement with USMIO Alpha LLC, a wholly-owned subsidiary of Hut 8, in November 2024, and terminated its hosting agreement with EZ Blockchain in May 2025. As of December 31, 2025, the Company's only remaining hosted bitcoin operations are with GXD in Oklahoma, the contract for which was terminated in the first quarter of 2026. The table below summarizes operating statistics for our hosted bitcoin mining sites during the periods presented.

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)** |
| <br>***($ in thousands, other than Cost per kWh)*** | **Year Ended<br> December 31, <br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| **Metrics: Hosted Mining Sites** | | | |
| Active miners at hosted facilities<sup>(1)</sup> | 15700 | 25000 | 38800 |
| Total kWhs utilized | 429478818 | 805413331 | 80855175 |
| Total bitcoin mined at hosted facilities<sup>(2)</sup> | 308.6 | 1098.1 | 209.7 |
| Cryptocurrency mining revenue earned at hosted facilities | $30644 | $71093 | $9011 |
| Total hosting and revenue share expense | $25123 | $51158 | $6691 |
| Hosting fees per kWh | $0.058 | $0.064 | $0.083 |
| Hosting and revenue share expense as percentage of cryptocurrency mining revenue, net | 82.0% | 72.0% | 74.3% |

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(1) *"Active miners" represents the total number of miners hashing at our hosted facilities during the final month of the periods presented. Data for the Predecessor is approximated based on available records and performance data, which may originate from different sources than those currently employed by Ionic Digital.* 

(2) *Total bitcoin mined is net of mining pool participation fees paid in bitcoin.* 

For our hosted locations, the largest component of direct costs of mining is the operating fees we pay to the hosting facility. As with our owned and leased sites, energy costs are the largest component of the hosting fees. We also pay to each hosting partner a revenue share amount, whether in bitcoin or in U.S. dollars, which fluctuates based on our production of bitcoin at each respective facility. For the year ended December 31, 2025 (Successor), the hosting fees and revenue share expense was 82.0% of cryptocurrency mining revenues earned at our hosted sites. Hosting fees and revenue share expense combined were 72.0% of cryptocurrency mining revenues during the eleven months ended December 31, 2024 (Successor) and 74.3% of cryptocurrency mining revenue for the one month ended January 31, 2024 (Predecessor).

The table below describes the average cost to earn one bitcoin for the three months ended March 31, 2026 and 2025, and the total energy usage and cost per each kWh utilized within both our owned, leased, and hosted facilities.

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in whole numbers, other than cryptocurrency mining revenues)*** | **Three<br> Months<br> Ended<br> March 31,<br> 2026** | **Three<br> Months<br> Ended<br> March 31,<br> 2025** |
| **Cryptocurrency mining revenues *($ in thousands)*** | $7401 | $41081 |
| **Total bitcoin earned, net of pool participation fees** | 95.7 | 439.7 |
| **Cost of revenue per one bitcoin earned at owned and leased sites:** |  |  |
| &nbsp;&nbsp;&nbsp;Cost of energy per one bitcoin earned | $33470 | $41726 |
| &nbsp;&nbsp;&nbsp;Other direct costs of mining - non energy utilities per one bitcoin earned | 20729 | 7774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost to mine one bitcoin at owned and leased sites | $54199 | $49500 |
| **Cost of revenue per one bitcoin earned at hosted sites:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hosting and revenue share expense per one bitcoin | $69028 | $78102 |
| **Total cost to earn one bitcoin** |  |  |
| &nbsp;&nbsp;&nbsp;Average cryptocurrency mining revenue per one bitcoin earned <sup>(1)</sup> | $77356 | $93438 |
| &nbsp;&nbsp;&nbsp;Average cost to earn one bitcoin <sup>(2)</sup> | $58564 | $57347 |
| &nbsp;&nbsp;&nbsp;Cost to earn one bitcoin as % of cryptocurrency mining revenue per bitcoin earned | 75.7% | 61.4% |

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| | |
|:---|:---|
| (1) | *Average revenue of each bitcoin mined is calculated as total cryptocurrency mining revenue, inclusive of owned, leased, and hosted facilities, divided by the total number of bitcoin earned during the respective periods. We use Coinbase Global, Inc. as the principal market for valuing bitcoin transactions, and measure our revenue earned based on the quoted spot price of bitcoin at 00:00:00 UTC on the date the bitcoin reward is earned.* |
|  | |
| (2) | *Average cost to earn one bitcoin is calculated as the Cost of mining revenues, exclusive of depreciation, divided by the total number of bitcoin mined during the respective period. This calculation excludes (a) the costs of financing as all miner purchases are paid in cash, and (b) the costs of leasing certain facilities which are immaterial to the overall costs.* |

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The average cost to earn one bitcoin excludes depreciation expense, a non-cash expense that we do not consider in determining the economical feasibility of operating our mining equipment. Depreciation expense reflects historical expenditures in mining assets rather than providing a current or future indicator of cash flows. As a result, we exclude depreciation of past capital investments in our historical or forecasted breakeven analysis.

If depreciation costs of our mining equipment were considered, the average cost to earn one bitcoin would increase to $93,330 for the three months ended March 31, 2026 compared with $82,703 for the three months ended March 31, 2025.

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The table below describes the average cost to earn one bitcoin for the year ended December 31, 2025 (Successor), eleven months ended December 31, 2024 (Successor) and the one month ended January 31, 2024 (Predecessor) and the total energy usage and cost per each kWh utilized within both our owned, leased, and hosted facilities.

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in- Possession)** |
| <br>**($ in whole numbers, other than cryptocurrency mining revenues)** | **Year Ended** <br> **December 31,**<br> **2025** | **Eleven Months<br> Ended<br> December 31, <br> 2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| **Cryptocurrency mining revenues *($ in thousands)*** | $135561 | $138428 | $15381 |
| **Total bitcoin earned, net of pool participation fees** | 1337 | 2075 | 358 |
| **Cost of revenue per one bitcoin earned at owned and leased sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of energy per one bitcoin earned | $52064 | $29777 | $16982 |
| &nbsp;&nbsp;&nbsp;Other direct costs of mining - non energy utilities per one bitcoin earned | 9030 | 10462 | 3104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost to mine one bitcoin at owned and leased sites | $61094 | $40239 | $20086 |
| **Cost of revenue per one bitcoin earned at hosted sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Hosting and revenue share expense per one bitcoin | $81397 | $46587 | $31913 |
| **Total cost to earn one bitcoin** |  |  |  |
| &nbsp;&nbsp;&nbsp;Average cryptocurrency mining revenue per one bitcoin earned <sup>(1)</sup> | $101358 | $66697 | $42979 |
| &nbsp;&nbsp;&nbsp;Average cost to earn one bitcoin <sup>(2)</sup> | $65779 | $43597 | $27015 |
| &nbsp;&nbsp;&nbsp;Cost to earn one bitcoin as % of cryptocurrency mining revenue per bitcoin earned | 64.9% | 65.4% | 62.9% |

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(1) *Average revenue of each bitcoin mined is calculated as total cryptocurrency mining revenue, inclusive of owned, leased, and hosted facilities, divided by the total number of bitcoin earned during the respective periods. We use Coinbase Global, Inc. as the principal market for valuing bitcoin transactions, and measure our revenue earned based on the quoted spot price of bitcoin at 00:00:00 UTC on the date the bitcoin reward is earned.* 

(2) *Average cost to earn one bitcoin is calculated as the Cost of mining revenues, exclusive of depreciation, divided by the total number of bitcoin mined during the respective period. This calculation excludes (a) the costs of financing as all miner purchases are paid in cash, and (b) the costs of leasing certain facilities which are immaterial to the overall costs.* 

The average cost to earn one bitcoin excludes depreciation expense, a non-cash expense that we do not consider in determining the economical feasibility of operating our mining equipment. Depreciation expense reflects historical expenditures in mining assets rather than providing a current or future indicator of cash flows. As a result, we exclude depreciation of past capital investments in our historical or forecasted breakeven analysis.

If depreciation costs of our mining equipment were considered, the average cost to earn one bitcoin would increase to $99,540 for the year ended December 31, 2025, compared with $59,021 for the eleven months ended December 31, 2024. If depreciation costs of the Predecessor's mining equipment were considered for the one month ended January 31, 2024, the average cost to earn one bitcoin would increase to $42,831.

**Key Operating and Financial Indicators**

In addition to our US GAAP financial results, we use Adjusted gross profit and Adjusted EBITDA, as well as the following key operating indicators to evaluate the business, identify trends and make strategic decisions.

[**Table of Contents**](#C_001)

The following table presents the Company's key operating indicators for the three months ended March 31, 2026 and 2025. While Net income (loss) is the primary financial measure that management uses to assess the Company's performance, we also assess performance using Adjusted gross profit and Adjusted EBITDA, two non-GAAP measures. For the definitions of Adjusted gross profit and Adjusted EBITDA and reconciliations to the Company's most directly comparable financial measures calculated and presented in accordance with GAAP, see "—Adjusted gross profit" and "—Adjusted EBITDA" below.

---

| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three<br> Months<br> Ended**<br> **March 31, 2026** | **Three<br> Months<br> Ended**<br> **March 31, 2025** |
| Quantity of bitcoin earned | 96 | 440 |
| Net loss | $(12984) | $(28031) |
| Adjusted gross profit | $45372 | $15868 |
| Adjusted EBITDA | $(17272) | $(18640) |

---

We also consider the following non-financial metrics in assessing the productivity and efficiency of our cryptocurrency mining operations:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of**<br> **March 31,** <br> **2026** | **As of**<br> **March 31,**<br> **2025** |
| Total miners owned<sup>(1)</sup> | 120563 | 139223 |
| Total hashrate (Eh/s)<sup>(2)</sup> | 12.2 | 14.0 |
| Active miners<sup>(3)</sup> | 23200 | 116500 |
| Hashrate contributed (Eh/s)<sup>(4)</sup> | 2.0 | 8.9 |
| Network hashrate (Eh/s)<sup>(5)</sup> | 980.8 | 816.8 |

---

(1) *"Total miners owned" represents an approximation of the entirety of our fleet of miners, including both miners deployed and miners in storage, during the final month of the periods presented.* 

(2) *"Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented, based on manufacturers' specifications.* 

(3) *"Active miners" represents the approximate total number of miners hashing at our owned, leased, and hosted facilities during the final month of the periods presented.* 

(4) *"Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.* 

(5) *"Network hashrate" is the total computational power of miners used globally in the Bitcoin network during the final month of the periods presented. Data sourced from CoinMetrics.io.* 

[**Table of Contents**](#C_001)

The Company's key operating indicators for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor), including two non-GAAP measures of Adjusted Gross Profit and Adjusted EBITDA, are presented in the following table.

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in- Possession)** |
| <br>***($ in thousands)*** | **Year Ended**<br> **December 31,**<br> **2025** | **Eleven**<br> **Months**<br> **Ended**<br> **December 31,** <br> **2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| Quantity of bitcoin earned | 1337 | 2075 | 358 |
| Net income (loss) | $(247723) | $40145 | $(10388) |
| Adjusted gross profit | $53400 | $47942 | $5713 |
| Adjusted EBITDA | $(11223) | $84960 | $1425 |

---

We also consider the following non-financial metrics in assessing the productivity and efficiency of our cryptocurrency mining operations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in- Possession)<sup>(6)</sup>** |
|  | **As of**<br> **December 31,** <br> **2025** | **As of**<br> **December 31,**<br> **2024** | **As of**<br> **January 31,**<br> **2024** |
| Total miners owned<sup>(1)</sup> | 125100 | 127200 | 127800 |
| Total hashrate (Eh/s)<sup>(2)</sup> | 12.6 | 12.7 | 12.7 |
| Active miners<sup>(3)</sup> | 40600 | 106700 | 65800 |
| Hashrate contributed (Eh/s)<sup>(4)</sup> | 2.9 | 9.3 | 6.0 |
| Network hashrate (Eh/s)<sup>(5)</sup> | 1048.5 | 778.5 | 521.3 |

---

(1) *"Total miners owned" represents an approximation of the entirety of our fleet of miners, including both miners deployed and miners in storage, during the final month of the periods presented.* 

(2) *"Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented, based on manufacturers' specifications.* 

(3) *"Active miners" represents the approximate total number of miners hashing at our owned, leased, and hosted facilities during the final month of the periods presented.* 

(4) *"Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.* 

(5) *"Network hashrate" is the total computational power of miners used globally in the Bitcoin network during the final month of the periods presented. Data sourced from CoinMetrics.io.* 

(6) *Data for the Predecessor is approximated based on available records and performance data, which may originate from different sources than those currently employed by Ionic Digital.* 

***Hashrate***

We operate mining hardware, or "miners," which produce "hash" computations to attempt to solve a new block in the bitcoin blockchain. Hash computations are measured in "hashrate" or "hashes per second."

[**Table of Contents**](#C_001)

"Total hashrate" is the combined hashrate of all miners we owned during the final month of the periods presented based on miners' specifications, including both miners deployed and miners in storage. "Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during the final month of the periods presented. Actual hashrate generated will often be less due to curtailment or maintenance downtime.

"Network hashrate" is the total hashrate or computing power contributed to the Bitcoin network. Mining pools combine the hashrate for numerous miners across the industry to increase the chances of solving a block on the bitcoin blockchain. The greater the share of a mining pool's hashrate compared to the rest of the network, the greater the probability of success that the mining pool solves a new block and earns the bitcoin reward. We currently utilize a mining pool that pays us bitcoin rewards utilizing a Full-Pay-Per-Share payout model, where miners receive a fixed payout of block rewards and transaction fees based on the hashrate they contribute to the mining pool, regardless of whether the pool successfully mines a block. While the Network hashrate does not directly influence the success of our mining efforts (see "Business—Overview of Bitcoin and the Bitcoin Mining Industry—Hashrate and Difficulty") management considers it, relative to our total hashrate, a very strong indicator of the expected results of our mining efforts.

***Bitcoin earned***

Our management views total bitcoin earned as a key metric for our cryptocurrency mining business. Trends in total bitcoin earned were previously, and will continue to be, impacted by our ability to deploy additional miners, and by our ability to maintain high miner uptime and efficiency. Management monitors this metric over monthly and quarterly periods. Across all of our owned, leased, and hosted sites, we earned 96 bitcoin and 440 bitcoin, net of pool participation fees, during the three months ended March 31, 2026 and 2025.

Across all of our owned, leased, and hosted sites, we earned 1,337 bitcoin, 2,075 bitcoin, and 358 bitcoin, net of pool participation fees, during the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, respectively. These values represent the total bitcoin earned before hosting fees. Bitcoin earned each quarter is summarized in the table below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Successor** | <br>**Successor** | <br>**Successor** | **Predecessor**<br> **(Debtor-in- Possession)** |
| <br>**Quarter** | **Three<br> Months<br> Ended<br> March 31,<br> 2026** | **Year Ended**<br> **December 31,**<br> **2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| First quarter | 96 | 440 | 640 | 358 |
| Second quarter |  | 380 | 610 |  |
| Third quarter |  | 325 | 374 |  |
| Fourth quarter | – | 192 | 451 | – |
| **Total** | **96** | **1337** | **2075** | **358** |

---

***Net income (loss) (Successor)***

For the three months ended March 31, 2026, the Company recorded a net loss of $13.0 million. During the period, we recognized $44.0 million in digital infrastructure leasing revenue related to our Ward County facility, the repurposing of which has significantly reduced cryptocurrency mining revenue by approximately 82.0% to $7.4 million, as compared to the three months ended March 31, 2025. Such digital infrastructure leasing revenue represents 14.4% of revenue earned during the three months ended March 31, 2026. Revenue was offset by changes to certain operating factors as compared to the prior three months ended March 31, 2025 that are driving the net loss in the first quarter of 2026, including (a) a decline in the fair value of bitcoin during the period, which resulted in a $53.3 million loss on the fair value of bitcoin, and (b) a $9.1 million increase in general and administrative expenses attributable primarily to the repurposing of the Ward County facility as well as the expansion of the Company's executive team. These additional expenses were offset by a decrease of 77.8% in the cost of mining revenue to $5.6 million, driven by the consolidation of the Company's cryptocurrency mining operations, as well as a $10.9 million reduction in depreciation expense resulting from the 2025 impairment of long-lived cryptocurrency mining assets.

In comparison, for the three months ended March 31, 2025, the Company recorded a net loss of $28.0 million. Cryptocurrency mining revenue of $41.1 million comprised 100% of revenue earned during the three months ended March 31, 2025 and was offset by $25.2 million costs of mining revenue, $16.5 million depreciation expense, a $45.4 million decline in the fair value of bitcoin. In addition, the Company recognized a gain of $17.6 million on the sale of bitcoin during the first quarter of 2025, which was used to fund the cryptocurrency mining operations.

For the year ended December 31, 2025, the Company recorded a net loss of $247.7 million. Cryptocurrency mining revenue comprised 95.9% of revenue earned during the year ended December 31, 2025 and was offset by numerous changes to operating factors as compared to the prior eleven months ended December 31, 2024 that are driving the net loss in 2025, including (a) a $24.3 million increase in depreciation expense resulting primarily from the energization of the final building at the Ward County facility in January 2025; (b) a decline in the fair value of bitcoin during the fourth quarter of 2025, which drove the $66.8 million loss on the fair value of bitcoin. This sustained downturn in the value of bitcoin during the fourth quarter of 2025 prompted management to evaluate the recoverability of its long-lived tangible and intangible assets as of December 31, 2025, which resulted in the recognition of an impairment loss of $150.3 million on the long-lived assets used in our mining operations, as well as a $68.2 million impairment of the goodwill allocated to our cryptocurrency mining segment. In addition, we recorded a $10.2 million realized loss on the disposal of property and equipment resulting from the sale of mining equipment previously housed at our site hosted by EZB, assets acquired from Celsius Mining determined not to be usable in the Company's future operations, and scrap from the decommissioning of cryptocurrency mining activities at our Ward County facility. Offsetting these significant losses is an increase in the number of bitcoin sold to fund operations during the year ended December 31, 2025, which resulted in $47.4 million gains on the sale of cryptocurrency, a $41.9 million increase from the eleven months ended December 31, 2024.

In comparison, net income totaled $40.1 million for the eleven months ended December 31, 2024 and was comprised primarily of bitcoin earned through mining, offset by fees paid to hosting service providers, project management fees pursuant to the Mining MSA (see "—Company History" below), and energy and labor costs at owned and leased facilities. The significant increase in the fair value of bitcoin during the eleven months ended December 31, 2024 resulted in a $71.7 million unrealized gain on the fair value of bitcoin we held. We also realized a gain on our investments in available-for-sale debt securities during the period totaling $2.4 million. See "—Results of Operations" below for a discussion of the underlying drivers of net income (loss) for the year ended December 31, 2025 and the eleven months ended December 31, 2024.

[**Table of Contents**](#C_001)

 ****

***Net (loss) (Predecessor)***

For the one month ended January 31, 2024, the Predecessor recognized a net loss of $10.4 million, which consisted of $15.4 million of revenue from net bitcoin earned through mining, offset by $9.7 million costs of mining revenue, such as energy costs and hosting fees. The net loss for the period was primarily driven by $5.4 million in reorganization costs allocated from the former affiliate companies, as well as a $6.2 million depreciation expense and a $1.8 million loss on the write-off of miners lost in transit between facilities. See "—Results of Operations" below for a full discussion of the underlying drivers of net loss for the one month ended January 31, 2024.

***Adjusted gross profit***

Adjusted gross profit is a non-GAAP financial measure. We define Adjusted gross profit as gross profit exclusive of depreciation. We rely on Adjusted gross profit to evaluate our business, measure our performance, and make strategic decisions. It is used by our Chief Operating Decision Maker ("CODM") when making decisions regarding the allocation of resources to operating segments.

We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing the Company's financial performance by excluding non-cash depreciation expense which is representative of historical investments and which we do not believe is indicative of our current operating performance. Gross profit is the GAAP measure most directly comparable to Adjusted gross profit. Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measures. You are encouraged to evaluate each of these adjustments and the reasons our management considers them appropriate for supplemental analysis.

The following tables provide a reconciliation of Gross Profit to Adjusted Gross Profit:

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three<br> Months<br> Ended**<br> **March 31,<br> 2026** | **Three<br> Months<br> Ended**<br> **March 31,<br> 2025** |
| Revenue | $51440 | $41081 |
| Cost of revenue, excluding depreciation | (6068) | (25213) |
| Depreciation | (5576) | (16457) |
| **Gross profit (loss)** | $**39796** | $**(589)** |
| Depreciation | 5576 | 16457 |
| **Adjusted gross profit** | $**45372** | $**15868** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br>***($ in thousands)*** | **Year Ended<br> December 31,<br> 2025** | **Eleven<br> Months<br> Ended<br> December 31, <br> 2024** | **One Month<br> Ended<br> January 31,<br> 2024** |
| Revenue | $141398 | $138428 | $15381 |
| Cost of revenue, excluding depreciation | (87998) | (90486) | (9668) |
| Depreciation | (66702) | (42360) | (6216) |
| **Gross profit** | $**(13302)** | $**5582** | $**(503)** |
| Depreciation | 66702 | 42360 | 6216 |
| **Adjusted gross profit** | $**53400** | $**47942** | $**5713** |

---

***Adjusted EBITDA***

Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, and amortization, further adjusted by certain non-recurring or infrequent costs and income, including the unrealized gain or loss on energy derivatives and other investments, one-time gains or losses on certain litigation settlements, share-based compensation, impairment on intangible and long-lived assets, and other infrequent costs incurred, as detailed in the table below. We rely on Adjusted EBITDA to evaluate our business, measure our performance, and make strategic decisions. Our management team uses Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation) and other items (such as one-time costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting its business in addition to measures calculated under GAAP.

We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing the Company's historical financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of its core operating performance. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. Our non-GAAP financial measure should not be considered as an alternative to the most directly comparable GAAP financial measure. You are encouraged to evaluate each of these adjustments and the reasons our management considers them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in such presentation. We may also incur unusual or non-recurring items in the future that may affect Adjusted EBITDA, and our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There can be no assurance that we will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of the Predecessor's historical results as reported under GAAP. Adjusted EBITDA may be defined differently by other companies in our industry and our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

[**Table of Contents**](#C_001)

The following tables provide a reconciliation of Net income (loss) to Adjusted EBITDA:

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three Months Ended**<br> **March 31, 2026** | **Three Months Ended**<br> **March 31, 2025** |
| **Net loss** | $**(12984)** | $**(28031)** |
| &nbsp;&nbsp;&nbsp;Interest income | 327 | 341 |
| &nbsp;&nbsp;&nbsp;Benefit from income taxes | (16341) | (7393) |
| &nbsp;&nbsp;&nbsp;Depreciation | 5576 | 16457 |
| &nbsp;&nbsp;&nbsp;Amortization | 5 | 5 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense<sup>(1)</sup> | 6448 |  |
| &nbsp;&nbsp;&nbsp;Realized gain on the sale of property and equipment | (303) | (19) |
| **Adjusted EBITDA** | $**(17272)** | $**(18640)** |

---

(1) *Share-based compensation during the three months ended March 31, 2026 relates to restricted stock units and performance restricted stock units issued to employees and board members. There was no equivalent activity for the three months ended March 31, 2025. See further details in Note 8 to the condensed consolidated financial statements dated March 31, 2026 included elsewhere in this prospectus.* 

(2) *Loss on litigation settlement during the three months ended March 31, 2025 reflects a settlement to resolve shareholder actions. There was no equivalent activity for the three months ended March 31, 2026.* 

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| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
| <br>***($ in thousands)*** | **Year Ended**<br> **December 31,**<br> **2025** | **Eleven Months**<br> **Ended**<br> **December 31,** <br> **2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |
| &nbsp;&nbsp;&nbsp;Interest (income) expense | (1215) | (1885) |  |
| &nbsp;&nbsp;&nbsp;Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| &nbsp;&nbsp;&nbsp;Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp;Amortization | 21 | 15 |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense<sup>(1)</sup> | 3500 | 1107 |  |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets<sup>(2)</sup> | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of owned and leased site:<sup>(3)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs incurred to prepare site for leasing | 5916 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized loss on the disposal of property and equipment | 5713 |  |  |
| &nbsp;&nbsp;&nbsp;Realized gain on investments<sup>(4)</sup> |  | (2422) |  |
| &nbsp;&nbsp;&nbsp;(Gain) loss on litigation settlement<sup>(5)</sup> | 3429 | (6817) |  |
| &nbsp;&nbsp;&nbsp;Other one-time liability<sup>(6)</sup> |  | 152 |  |
| &nbsp;&nbsp;&nbsp;Unrealized (gain) loss on energy derivatives |  |  | 159 |
| &nbsp;&nbsp;&nbsp;Reorganization items, net |  |  | 5416 |
| **Adjusted EBITDA** | $**(11223)** | $**84960** | $**1425** |

---

---

| | |
|:---|:---|
| (1) | *Share-based compensation during the year ended December 31, 2025 relates to restricted stock units and performance restricted stock units issued to employees and board members. Share-based compensation during the eleven months ended December 31, 2024 reflects the discount the Hut 8 service provider received on its purchase of Class A common stock on January 31, 2024. See further details in Note 8 to the consolidated financial statements included elsewhere in this prospectus.* |
|  | |
| (2) | *Impairment of the property and equipment held for use in our cryptocurrency mining operations was triggered by the sustained decline in bitcoin market conditions during the fourth quarter of 2025. This is removed as a non-cash, unusual item that management does not expect to recur.* |
|  | |
| (3) | *Represents costs incurred to prepare the Ward County assets for transfer to the tenant, as well as the loss recognized as a result of disposals of property and equipment from the decommissioning of cryptocurrency mining assets at the Ward County facility.* |
|  | |
| (4) | *Gain recognized on treasury securities held to maturity. Management does not expect to have future investment holdings other than bitcoin; thus, this is removed as a one-time gain.* |

---

(5) *Loss on litigation settlement during the year ended December 31, 2025 reflects a settlement to resolve shareholder actions. The gain on litigation settlement during the eleven months ended December 31, 2024 is resulting from the settlement of an agreement Ionic Digital assumed from its Predecessor in the asset acquisition on January 31, 2024. See further details in Note 18 to the consolidated financial statements included elsewhere in this prospectus.* 

&nbsp;&nbsp;&nbsp;&nbsp;(6) *This one-time liability represents an additional liability assumed by Ionic Digital from its Predecessor arising from a contract dispute with Mawson Infrastructure Group, which was resolved in February 2026. See further details in Note 17 to the consolidated financial statements included elsewhere in this prospectus.* 

[**Table of Contents**](#C_001)

**Results of Operations**

The results of operations in this section describe the results of the Company and its Predecessor, for the periods indicated herein. At the close of business on January 31, 2024, the Company acquired substantially all the assets and assumed certain liabilities of Celsius Mining. The Company accounted for the Business Combination in accordance with FASB ASC Topic 805, *Business Combinations*. Ionic Digital was determined to be the legal and accounting acquirer and Celsius Mining was deemed to be the accounting predecessor. The Business Combination was accounted for using the acquisition method of accounting and the Successor's financial statements reflect a new basis of accounting based on the fair value of the net assets acquired. As a result, the Company's financial information is separated into two distinct periods to indicate the different ownership and accounting bases between the periods presented: the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor), which is the period prior to consummation of the Business Combination.

 **

***Comparison of the three months ended March 31, 2026 and 2025***

 **

The following tables summarize the Successor's results of operations for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three Months Ended**<br> **March 31, 2026** | **Three Months Ended**<br> **March 31, 2025** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining | $7401 | $41081 |
| &nbsp;&nbsp;&nbsp;Digital infrastructure leasing | 43955 |  |
| &nbsp;&nbsp;&nbsp;Other | 84 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | $**51440** | $**41081** |
| Costs and operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of mining revenue, exclusive of depreciation | 5603 | 25213 |
| &nbsp;&nbsp;&nbsp;Cost of digital infrastructure solutions revenue, exclusive of depreciation | 465 |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 5576 | 16457 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 16241 | 7111 |
| &nbsp;&nbsp;&nbsp;Loss on fair value of cryptocurrency assets | 53323 | 45448 |
| &nbsp;&nbsp;&nbsp;Realized gain on sale of cryptocurrency assets |  | (17614) |
| &nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (303) | (19) |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 187 | 250 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 81092 | 76846 |
| **Operating loss** | $**(29652)** | $**(35765)** |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 327 | 341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 327 | 341 |
| Loss before provision for income taxes | $(29325) | $(35424) |
| Benefit for income taxes | (16341) | (7393) |
| **Net loss** | $**(12984)** | $**(28031)** |

---

[**Table of Contents**](#C_001)

***Comparison of the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor) and the one month ended January 31, 2024 (Predecessor)***

The following tables summarize the Successor's results of operations for the year ended December 31, 2025, the eleven months ended December 31, 2024, and the Predecessor's results of operations for the one month ended January 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
| <br>***($ in thousands)*** | **Year Ended <br> December 31,<br> 2025** | **Eleven Months Ended <br> December 31,<br> 2024** | **One <br> Month Ended <br> January 31,<br> 2024** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp;Digital infrastructure leasing | 5837 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | $**141398** | $**138428** | $**15381** |
| Costs and operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of mining revenue, exclusive of depreciation | 87976 | 90486 | 9668 |
| &nbsp;&nbsp;&nbsp;Cost of digital infrastructure solutions revenue, exclusive of depreciation | 22 |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 49026 | 40600 | 2633 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on fair value of cryptocurrency assets | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp;Realized gain on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 999 | 1105 | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 452764 | 96950 | 20172 |
| **Operating income (loss)** | $**(311366)** | $**41478** | $**(4791)** |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 1215 | 1885 |  |
| &nbsp;&nbsp;&nbsp;Realized loss on cryptocurrency derivatives | (204) |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on energy derivatives |  |  | (159) |
| &nbsp;&nbsp;&nbsp;Realized gain on investments |  | 2422 |  |
| &nbsp;&nbsp;&nbsp;Gain (loss) on litigation settlement | (3429) | 6817 |  |
| &nbsp;&nbsp;&nbsp;Other (expense) |  | (152) |  |
| &nbsp;&nbsp;&nbsp;Reorganization items, net |  |  | (5416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | (2418) | 10972 | (5575) |
| Income (loss) before provision for income taxes | $(313784) | $52450 | $(10366) |
| Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |

---

[**Table of Contents**](#C_001)

***Revenue***

 

*Cryptocurrency mining revenues*

Cryptocurrency mining revenue represents revenue earned from the mining of bitcoin. We participate in a third-party operated mining pool to which we provide the service of performing hash calculations, an output of our ordinary activities, in exchange for bitcoin. Our revenue is determined by the price of bitcoin, the hashrate generated by our miners, the block reward and transaction fee reward established by the Bitcoin network, and the network difficulty.

Cryptocurrency mining revenue for the three months ended March 31, 2026 was $7.4 million compared to $41.1 million for the three months ended March 31, 2025. The $33.7 million, or 82% decrease in cryptocurrency mining revenue was primarily due to a decline in the average price of bitcoin and a reduction in active miners resulting in a reduced average hash rate as compared to the prior period. Certain key mining metrics for the Company and for the global network overall during the three months ended March 31, 2026 and 2025 are presented in the table below:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Three Months Ended**<br> **March 31, 2026** | **Three Months Ended**<br> **March 31, 2025** |
| **Key Network & Mining Metrics** | | |
| Company: |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining revenues *($ in thousands)* | $7401 | $41081 |
| &nbsp;&nbsp;&nbsp;Average hashrate contributed (EH/s)<sup>(1)</sup> | 2.4 | 8.5 |
| &nbsp;&nbsp;&nbsp;Bitcoin mined, net of pool participation fees | 95.7 | 439.7 |
| &nbsp;&nbsp;&nbsp;Average market price of bitcoin<sup>(2)</sup> | $76721 | $93516 |
| <u><u>Network:<sup>(3)</sup></u></u> |  |  |
| &nbsp;&nbsp;&nbsp;Average network difficulty (in trillions) | 140.8 | 111.2 |
| &nbsp;&nbsp;&nbsp;Weighted average reward per block | 3.1 | 3.1 |

---

(1) *"Average hashrate contributed" is calculated as the average daily hashrate our actively hashing miners in owned, leased, and hosted facilities contributed to our mining pool during the periods presented.* 

(2) *"Average market price of bitcoin" is calculated as the average daily quoted spot price of bitcoin at 00:00:00 UTC per Coinbase for the periods presented.* 

(3) *Network data is sourced from CoinMetrics.io.* 

Cryptocurrency mining revenue for the year ended December 31, 2025 was $135.6 million compared to $138.4 million for the eleven months ended December 31, 2024. The $2.8 million, or 2%, decrease in cryptocurrency mining revenue was primarily attributable to the growth in network difficulty during 2025, which decreased the block rewards we were able to earn with our existing mining fleet. This growth in network difficulty was offset by higher bitcoin prices during much of 2025, as well as by increased mining capacity at our Ward County facility. During the eleven months ended December 31, 2024, we slowly ramped up bitcoin production with the energization of three out of four buildings at our Ward County facility, increasing the number of active miners at our owned and leased facilities by approximately 62%. Expansion continued in January 2025 with the energization of the final building at Ward County, a level of activity that was maintained until November 2025 when we began decommissioning our cryptocurrency mining operations at Ward County to enable the strategic repurposing of the facility for our new digital infrastructure business. Total bitcoin mined, net of pool participation fees, was 1,337 and 2,075 for the year ended December 31, 2025 and the eleven months ended December 31, 2024, respectively, which primarily reflected the April 2024 bitcoin halving and the termination of two hosting agreements with Alpha and EZB within a six month timeframe. Our year over year bitcoin production was also negatively impacted by the 45% increase in average network difficulty from 88.7 T during the eleven months ended December 31, 2024 to 128.6 T during the year ended December 31, 2025.

The Predecessor mined 358 bitcoin during the one month ended January 31, 2024, which equated to $15.4 million cryptocurrency mining revenue in that period. This bitcoin was earned prior to the Halving event in April 2024, which cut the bitcoin block reward in half to 3.125 per block solved and contributed to the lower number of bitcoin mined by the Successor.

[**Table of Contents**](#C_001)

The following table provides the key network and mining metrics impacting Cryptocurrency mining revenues, net during the periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
|  | **Year Ended**<br> **December 31,**<br> **2025** | **Eleven**<br> **Months**<br> **Ended**<br> **December 31,** <br> **2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| **Key Network & Mining Metrics** |  |  |  |
| Company: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining revenues *($ in thousands)* | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp;Average hashrate contributed (EH/s)<sup>(1)</sup> | 7.2 | 6.5 | 6.0 |
| &nbsp;&nbsp;&nbsp;Bitcoin mined, net of pool participation fees | 1337 | 2075 | 358 |
| &nbsp;&nbsp;&nbsp;Average market price of bitcoin<sup>(2)</sup> | $101614 | $67928 | $42911 |
| <u><u>Network:<sup>(3)</sup></u></u> |  |  |  |
| &nbsp;&nbsp;&nbsp;Average network difficulty (in trillions) | 128.6 | 88.7 | 72.0 |
| &nbsp;&nbsp;&nbsp;Weighted average reward per block | 3.1 | 3.9 | 6.3 |

---

(1) *"Average hashrate contributed" is calculated as the average daily hashrate our actively hashing miners in owned, leased, and hosted facilities contributed to our mining pool during the periods presented.* 

(2) *"Average market price of bitcoin" is calculated as the average daily quoted spot price of bitcoin at 00:00:00 UTC per Coinbase for the periods presented.* 

(3) *Network data is sourced from CoinMetrics.io.* 

[**Table of Contents**](#C_001)

*Digital infrastructure leasing revenues*

Digital infrastructure leasing revenue consists of revenue earned from leasing arrangements at our owned digital infrastructure site. For the three months ended March 31, 2026 and for the year ended December 31, 2025 we recognized $44.0 million and $5.8 million of digital infrastructure leasing revenue, representing the recognition of revenue associated with the Nscale Agreement, respectively.

There was no comparable digital infrastructure leasing revenue for the three months ended March 31, 2025 or the eleven months ended December 31, 2024, as the Ward County site was operated exclusively as a bitcoin mining facility during those periods. The commencement of digital infrastructure leasing revenue during 2025 represents an important shift in the Company's revenue mix toward contracted, long term, dollar denominated cash flows, consistent with our strategy of transitioning a portion of our infrastructure portfolio toward HPC/AI focused uses.

***Costs of revenues and operating expenses***

Cost of mining revenues, exclusive of depreciation

Cost of mining revenues, exclusive of depreciation, consists primarily of energy and labor costs to operate our owned and leased facilities and hosting fees to operate our hosted facilities. The following table details the components of Cost of mining revenue, exclusive of depreciation during the periods presented:

---

| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three Months Ended**<br> **March 31,<br> 2026** | **Three Months Ended**<br> **March 31,<br> 2025** |
| **Cost of mining revenue, exclusive of depreciation at owned and leased sites:** | | |
| &nbsp;&nbsp;&nbsp;Energy costs | $2260 | $13312 |
| &nbsp;&nbsp;&nbsp;Other direct costs of mining, non-energy utilities | 1399 | 2480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of mining revenue at owned and leased sites | $3659 | $15792 |
| **Cost of mining revenue, exclusive of depreciation at hosted sites:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hosting and revenue share expense | $1944 | $9421 |
| **Total Cost of mining revenue, exclusive of depreciation** | $**5603** | $**25213** |

---

For the three months ended March 31, 2026 the cost of mining revenues, exclusive of depreciation totaled $5.6 million compared with $25.2 million for the three months ended March 31, 2025. The cost of mining revenues, exclusive of deprecation decreased primarily due to the reduction in mining activities as compared to the prior period.

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
| <br>***($ in thousands)*** | **Year Ended**<br> **December 31, 2025** | **Eleven**<br> **Months**<br> **Ended**<br> **December 31,** <br> **2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| **Cost of mining revenue, exclusive of depreciation at owned and leased sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Energy costs | $53563 | $29103 | $2517 |
| &nbsp;&nbsp;&nbsp;Other direct costs of mining, non-energy utilities | 9290 | 10225 | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of mining revenue at owned and leased sites | $62853 | $39328 | $2977 |
| **Cost of mining revenue, exclusive of depreciation at hosted sites:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hosting and revenue share expense | $25123 | $51158 | $6691 |
| **Total Cost of mining revenue, exclusive of depreciation** | $**87976** | $**90486** | $**9668** |

---

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For the year ended December 31, 2025, costs of mining revenues, exclusive of depreciation totaled $88.0 million compared with $90.5 million for the eleven months ended December 31, 2024. The cost of mining revenues, exclusive of depreciation, remained relatively consistent for the year ended December 31, 2025 as compared to the eleven months ended December 31, 2024. The $26.0 million reduction in hosting and revenue share expense, driven by the decommissioning of our hosted sites with USMIO Alpha LLC and EZB, was offset by a $24.5 million increase in energy costs at our owned and leased sites due to the increased number of active miners during 2025 as compared with the prior period.

The Predecessor recognized $9.7 million in costs of mining revenue for the one month ended January 31, 2024, which is greater than an average month of costs of mining revenue during the year ended December 31, 2025 due to the mix of miners active at hosted sites versus owned and leased sites during the one-month ended January 31, 2024.

Electricity costs, which are a component of both owned, leased, and hosting costs of mining revenues, were and remain the most significant direct bitcoin mining expenditure. The price of electricity has historically been and may continue to be volatile.

*Cost of digital infrastructure leasing revenues*

Cost of digital infrastructure leasing revenue represents the costs incurred to decommission cryptocurrency mining operations at Ward County in preparation for occupation by the tenant in accordance with the Nscale Agreement, as well as amortization of the initial direct costs of the lease contract and costs to maintain the facilities that are largely passed through to the customer. For the three months ended March 31, 2026, Cost of digital infrastructure leasing revenue was $0.5 million. There were no Cost of digital infrastructure leasing revenue during the three months ended March 31, 2025. For the year ended December 31, 2025, the inaugural year of the contract, Cost of digital infrastructure leasing revenues was immaterial.

*Depreciation*

Depreciation expense for the three months ended March 31, 2026 totaled $5.6 million, compared with $16.5 million for the three months ended March 31, 2025. The decrease in depreciation expense of 66.1% for the three months ended March 31, 2026 was primarily attributable to the reduction of fixed assets as compared to the prior period. The reduction in fixed asset is due to the impairment of a portion of fixed assets, the sale of Cedarvale equipment, and a reduction in miners.

Depreciation expense for the year ended December 31, 2025 totaled $66.7 million, compared with $42.4 million for the eleven months ended December 31, 2024. The increase in depreciation expense of 57.5% for the year ended December 31, 2025 was primarily attributable to the cryptocurrency mining equipment at Ward County being placed in service during the entirety of 2025, rather than the partial year of depreciation expense reflected in the eleven months ended December 31, 2024 as assets were placed in service periodically as buildings were energized for bitcoin mining operations.

The Predecessor recognized $6.2 million for the one month ended January 31, 2024, which is primarily due to only one month of cost represented in the Predecessor period. 

*General and administrative ("G&A") expenses*

G&A expenses consist of service fees, professional fees, insurance, payroll, storage expenses, and sales taxes. The following table details the components of General and administrative expenses during the periods presented:

---

| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>*($ in thousands)* | **Three Months Ended**<br> **March 31,<br> 2026** | **Three Months Ended**<br> **March 31,<br> 2025** |
| **General and administrative expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Professional fees | $4784 | $4649 |
| &nbsp;&nbsp;&nbsp;Insurance expense | 1067 | 1007 |
| &nbsp;&nbsp;&nbsp;Payroll, director compensation, and related expenses | 7969 | 777 |
| &nbsp;&nbsp;&nbsp;Other G&A expense<sup>(1)</sup> | 2421 | 678 |
| &nbsp;&nbsp;&nbsp;**Total general and administrative expenses** | $**16241** | $**7111** |

---

(1) *The $2.4 million in Other G&A expense for the three months ended March 31, 2026 consisted of $1.6 million in lease fulfillment cost, $0.3 million in IT software, supplies, and SaaS, and $0.5 million in other miscellaneous expenses. The $0.7 million in Other G&A expense for the three months ended March 31, 2025 consisted of $0.3 million in security expense and $0.4 million in other miscellaneous expenses.* 

G&A expenses of $16.2 million for the three months ended March 31, 2026 represent an increase of 128.4% compared to $7.1 million for the three months ended March 31, 2025. The increase in G&A expenses is primarily due to higher compensation costs and professional fees as compared to the prior period. In addition, lease fulfillment costs were incurred in the current period as compared to no activity during the previous period.

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---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
| <br>*($ in thousands)* | **Year Ended**<br> **December 31,**<br> **2025** | **Eleven**<br> **Months**<br> **Ended**<br> **December 31,**<br> **2024** | **One Month**<br> **Ended**<br> **January 31,**<br> **2024** |
| **General and administrative expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Mining MSA fees and other service compensation | $— | $10875 | $— |
| &nbsp;&nbsp;&nbsp;Professional fees | 21859 | 16375 | 62 |
| &nbsp;&nbsp;&nbsp;Insurance expense | 4277 | 3912 | 282 |
| &nbsp;&nbsp;&nbsp;Costs to prepare site for leasing | 5916 |  |  |
| &nbsp;&nbsp;&nbsp;Payroll, director compensation, and related expenses | 7705 | 4567 | 148 |
| &nbsp;&nbsp;&nbsp;Service fees from parent company |  |  | 1791 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 5994 | 2445 |  |
| &nbsp;&nbsp;&nbsp;Other G&A expense<sup>(1)</sup> | 3275 | 2426 | 350 |
| &nbsp;&nbsp;&nbsp;**Total general and administrative expenses** | $**49026** | $**40600** | $**2633** |

---

(1) *The $3.3 million in Other G&A expense for the year ended December 31, 2025 consisted of $0.8 million in security expense, $0.7 million in technology expenses, and $1.8 million in other miscellaneous expenses. The $2.4 million in Other G&A expense for the eleven months ended December 31, 2024 consisted of $1.1 million in security expense and $1.3 million in other miscellaneous expenses.* 

G&A expenses of $49.0 million for the year ended December 31, 2025 represent an increase of 20.7% compared to $40.6 million for the eleven months ended December 31, 2024. The increase in G&A expenses is primarily attributable to higher professional fees, including $12.5 million legal fees and other advisory and compliance costs associated with preparing to operate as a public company. Increased personnel costs reflect the Company's investment in director and executive leadership to execute on our strategic plans. These increases were offset by $10.9 million in compensation paid to Hut 8 in connection with the Mining MSA.

The Predecessor recorded $2.6 million of G&A expenses for the one month ended January 31, 2024, with the difference to G&A expenses during the year ended December 31, 2025 being the higher professional fees incurred by Ionic Digital as it stood up as new entity and began operations.

(*Gain) loss on fair value of cryptocurrency*

We recorded a loss on the fair value of cryptocurrency for the three months ended March 31, 2026 totaling $53.3 million compared with a loss of $45.4 million for the three months ended March 31, 2025. This activity represents the change in fair value of bitcoin held by us between the time the bitcoin was mined and the fair value of bitcoin as of the respective period-end, and reflects the volatility in the price of a bitcoin, which declined during the first quarter of 2026 to a closing price of $68,222 as of March 31, 2026 from a period-opening price of $87,498 as of January 1, 2026. The price of bitcoin also declined in the first quarter of 2025 to a closing price of $82,470 as of March 31, 2025 from $93,354 as of December 31, 2024.

We recorded a loss on the fair value of cryptocurrency for the year ended December 31, 2025 (Successor) totaling $66.8 million, compared with a $71.7 million gain on the fair value of cryptocurrency for the eleven months ended December 31, 2024 (Successor) and a $0.2 million loss during the one month ended January 31, 2024. This activity represents the change in fair value of bitcoin held by us between the time the bitcoin was mined and the fair value of bitcoin as of the respective period-end, and reflects the volatility in the price of a bitcoin, which declined from a closing price of $93,354 as of December 31, 2024 to a closing price of $87,498 as of December 31, 2025.

*Realized gain on sale of cryptocurrency assets*

There was no realized gain on sale of cryptocurrency assets for the three months ended March 31, 2026 compared to a gain of $17.6 million for the three months ended March 31, 2025. This is a result of the company not selling any cryptocurrency assets during the current period.

The realized gain on sales of cryptocurrency assets for the year ended December 31, 2025 (Successor) totaled $47.4 million on the sale of 1,009.0 bitcoin at an average spot price of $100,547 per bitcoin. This activity compares with $5.5 million realized gain on the sale of 150.2 bitcoin during the eleven months ended December 31, 2024 (Successor) at an average spot price of $67,340.

During the one month ended January 31, 2024 (Predecessor), the realized gain on the sale of cryptocurrency of $0.5 million was primarily due to the single month of activity represented.

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(*Gain) loss on disposal of property and equipment*

The realized gain on disposal of property and equipment for the three months ended March 31, 2026 totaled $0.3 million, compared with a realized gain of $0.0 million in the same period of the prior year, driven primarily by the sale of $1.6 million of building assets and machinery and facilities equipment held for sale resulting from management's decision to repurpose the Ward County facility for digital infrastructure solutions.

The realized loss on disposal of property and equipment for the year ended December 31, 2025 totaled $10.2 million, compared with a realized gain of $0.3 million for the eleven months ended December 31, 2024 and a loss of $1.8 million in the one month ended January 31, 2024 (Predecessor). Of the loss recorded during 2025, $6.4 million related to mining equipment and other assets disposed as a result of decommissioning certain cryptocurrency mining sites, including assets previously located at the EZ Blockchain hosted facility as well as certain building and machinery and facilities equipment previously in service at the Ward County site that would no longer be required as we converted that site in accordance with the terms of the Nscale Agreement. We also recognized a loss of $3.8 million on the disposal of equipment we acquired from the Predecessor that was never placed in service by Ionic Digital.

 

*Impairment of long-lived assets*

 

Adverse changes in the economics of mining bitcoin in the fourth quarter of 2025, i.e., the sustained decline in bitcoin price without a corresponding decline in the global network hashrate difficulty, indicated the potential for impairment of the carrying value of the Company's mining-related long-lived assets. After considering our reduced capacity for cryptocurrency mining, the efficiency of our mining fleet, and the projected market conditions of bitcoin mining, we determined that the carrying value of the assets was unlikely to be recoverable. As such, for the year ended December 31, 2025, we recognized impairment losses totaling $150.3 million used in our cryptocurrency mining operations.

For the eleven months ended December 31, 2024, the Company determined that no long-lived assets were impaired. Likewise, the Predecessor determined that no long-lived assets were impaired during the one month ended January 31, 2024.

*Goodwill impairment*

 

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. In accordance with ASC 350, *Goodwill and Other Intangible Assets* ("ASC 350"), the Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable.

On October 14, 2025, the Company executed a long-term agreement to repurpose the land, land improvements, buildings, and equipment at its Ward County facility and provide digital infrastructure solutions for the HPC and AI sectors. As a result of this change, diverging operational activities with unique economic characteristics, revenue sources, and cost structures emerged, resulting in two separate businesses: digital infrastructure solutions and cryptocurrency mining. Consequently, the Company determined the digital infrastructure solutions and cryptocurrency mining activities independently meet the definition of an operating segment, and each of the two operating segments contain a single reporting unit for the purpose of evaluating the goodwill. An assessment was performed to reassign the carrying value of goodwill as of October 14, 2025 to the reporting units using a relative fair value allocation approach. As a result, $161.6 million of goodwill was assigned to the digital infrastructure solutions reporting unit and $68.2 million of goodwill was assigned to the cryptocurrency mining reporting unit.

Due to adverse changes in bitcoin mining economics, including a rapid decline in the price of bitcoin coupled with the sustained competition among bitcoin miners despite the reduced block rewards, management determined that a quantitative impairment test was triggered for the cryptocurrency mining reporting unit as of December 31, 2025. Based on our projections of future cash flows, we concluded that the goodwill for our cryptocurrency mining reporting unit was fully impaired, and an impairment loss of $68.2 million was recognized for the year ended December 31, 2025. The fair value of the digital infrastructure solutions reporting unit exceeded its carrying value at December 31, 2025, and therefore no goodwill impairment was recognized on the goodwill assigned to that reporting unit.

There was no impairment of goodwill recognized during the eleven months ended December 31, 2024. Likewise, no impairment of goodwill was recognized by the Predecessor during the one month ended January 31, 2024.

 

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*Other income (expense), net*

Other income (expense) consists primarily of interest income, gains and losses related to litigation settlements, gains on investments, and realized and unrealized losses related to derivative contracts. Other income (expense) was $(2.4) million for the year ended December 31, 2025 compared to $11.0 million for the eleven months ended December 31, 2024, with the difference of $13.4 million primarily driven by non-recurring gains in the prior period on a litigation settlement and investments of $6.8 million and $2.4 million, respectively, and $3.4 million net loss on litigation settlement in the current year.

During the one month ended January 31, 2024 (Predecessor), other income (expense) totaled $(5.6) million and consisted of an unrealized loss on the Predecessor's energy derivative contract of $0.2 million and bankruptcy reorganization costs of $5.4 million.

*Provision (benefit) for income taxes* 

The Company records its income tax expense or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to ordinary income or loss for the current period to determine the income tax provision or benefit allocated to the interim period. The income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the interim period in which they occur. Adjustments to the estimated annual effective tax rate are recognized in the period in which such estimates are revised.

For the three months ended March 31, 2026, the Company recorded an income tax benefit (including discrete items) of $16.3 million, compared to an income tax benefit (including discrete items) of $7.4 million for the three months ended March 31, 2025. The increase in the income tax benefit was primarily attributable to a larger pretax loss during the 2026 period and a higher estimated annual effective tax rate used to calculate the income tax benefit allocated to the period.

The Company's estimated annual effective tax rate (before discrete items) was 55.4% for the three months ended March 31, 2026, compared to 21.2% for the three months ended March 31, 2025. The Company's effective tax rate (including discrete items) was 55.7% and 20.9% for the three months ended March 31, 2026 and 2025, respectively. The effective tax rate for the three months ended March 31, 2026 differed significantly from the U.S. federal statutory rate of 21% primarily due to the establishment during the quarter of a valuation allowance against the deferred tax asset associated with unrealized losses on cryptocurrency holdings, which reduced the future tax benefit otherwise available from such losses, as well as an increase in the permanent difference related to non-deductible officer compensation, which increased pretax book expense without a corresponding tax deduction. See Note 12 to the condensed consolidated financial statements included elsewhere in this prospectus for additional information.

**Liquidity and Capital Resources**

We measure liquidity in terms of our ability to meet cash requirements, primarily for working capital needs, capital expenditures and general corporate purposes. On January 31, 2024, Ionic Digital acquired from Celsius Mining substantially all of its assets, including (a) the bitcoin mining assets; (b) approximately $29 million in prepaid capital investments related to Ward County; (c) $2 million in credits with manufacturers of miners, available until their expiration to purchase additional new or used miners from those vendors; and (d) approximately 540 bitcoin (valued on the Plan Effective Date at $23 million), as well as approximately $195 million in cash contributed by Celsius Network LLC (collectively, the "Acquired Assets"). No cash consideration was paid from Ionic Digital to Celsius Mining for the Acquired Assets. However, Ionic Digital issued 37 million shares of Class A common stock to the former approved creditors of Celsius Network LLC and certain of its subsidiaries and affiliates, including the Predecessor (the "Debtors").

As of March 31, 2026, Ionic Digital had on hand $34.9 million in cash and cash equivalents, and bitcoin valued at $192.1 million at that date. Our current obligations as of March 31, 2026 totaled $16.2 million and consisted primarily of trade payables and sales and property taxes. The Company had no debt as of March 31, 2026, and $1.0 million of non-current liabilities.

We anticipate having sufficient liquidity on hand for the next twelve months from revenue generated and the sale of accumulated bitcoin to fund operations, the estimated $64 million in capital expenditures to upgrade the substation in Ward County, as well as to pursue strategic opportunities. Our ability to liquidate bitcoin earned at future values will be regularly evaluated to generate cash for operations.

Our future financial operating strategy is to prioritize stable, contracted cash flows from our digital infrastructure operations while continuing to generate revenue from bitcoin mining for as long as we believe it remains profitable. Our existing mining assets in Midland will continue to mine bitcoin for as long as such operations remain profitable, while we commence work to develop these locations into HPC/AI facilities. We intend to opportunistically liquidate our bitcoin holdings to fund capital expenditures, including the expansion of our Ward County property and the development of our Midland sites for HPC/AI use. We view our bitcoin treasury principally as a source of funding flexibility, and we retain full discretion over the timing and amount of any liquidation. We anticipate using liquidity generated by our operations and bitcoin treasury in excess of working capital requirements to advance our growth strategy, which includes expanding contracted capacity at our existing sites, developing additional powered shell and turnkey data center capacity, and pursuing site acquisition opportunities.

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The risks to our liquidity outlook include events that materially diminish our access to capital markets and/or the value of our bitcoin holdings and production capabilities, including:

● Challenges in the bitcoin mining space and/or additional contagion events (such as the FTX collapse and subsequent bankruptcies of bitcoin mining companies in 2022 and 2023), which could damage the credibility of, and therefore investor confidence in, companies engaged in the cryptocurrency mining space (see "Risk Factors—Risks Related to the Bitcoin Industry—The further development and acceptance of cryptocurrencies including bitcoin, which represent a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of cryptocurrencies may adversely affect an investment in us.").

● Declines in bitcoin prices and/or production, which would impact both the value of our bitcoin holdings and the ongoing profitability of our bitcoin mining operations;

● Significant increases in transaction fees for bitcoin liquidation at cryptocurrency exchanges;

● Significant increases in electricity costs if these cost increases are not accompanied by increases in the price of bitcoin, as this trend would also reduce the profitability of our bitcoin mining operations.

We incurred no debt during three months ended March 31, 2026 or for the year ended December 31, 2025, and we seek to optimize our balance sheet, operations, and liquidity position to meet our immediate cash flow requirements, and will evaluate leveraging opportunities to meet expansion opportunities over the next twelve months.

*Predecessor Bankruptcy Proceedings*

On the Petition Date, Celsius Network LLC and some of its affiliates, including Celsius Mining, each filed voluntary petitions (the "Chapter 11 Cases") in the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") seeking relief under Chapter 11 of the United States code (the "Bankruptcy Code"). The Chapter 11 Cases were jointly administered under the caption In re Celsius Network LLC, et al., Case No. 22-10964. Celsius Mining was included in the Chapter 11 proceedings and continued to operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court through the closing of the transaction with Ionic Digital. As debtors-in-possession, certain Celsius debtors' activities were subject to review and approval by the Bankruptcy Court, including, among other things, the incurring of secured indebtedness, material asset dispositions, and other transactions outside the ordinary course of business.

The Predecessor audited consolidated financial statements included herein also reflect the application of ASC 852, *Reorganization*s ("ASC 852"). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains, and losses that are realized or incurred in the bankruptcy proceedings are recorded in Reorganization items, net on the Consolidated Statements of Operations for the one-month ended January 31, 2024.

 ****

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 **

***Cash Flows***

 

***Comparison of the three months ended March 31, 2026 and the three months ended March 31, 2025***

For the three months ended March 31, 2026 and 2025 we had a net decrease in cash and cash equivalents of $8.6 million and $8.2 million, respectively. The following table summarizes our cash flow activity for the periods presented:

---

| | | |
|:---|:---|:---|
| | **Successor** | **Successor** |
| <br>***($ in thousands)*** | **Three Months Ended**<br> **March 31,<br> 2026** | **Three Months Ended**<br> **March 31,<br> 2025** |
| Net cash used in operating activities | $(10445) | $(37625) |
| Net cash provided by investing activities | 1851 | 29428 |
| Net cash provided by financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents for the period | $(8594) | $(8197) |

---

***Comparison of the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024***

For the year ended December 31, 2025 and the eleven months ended December 31, 2024 we had a net decrease in cash and cash equivalents of $4.8 million and a net increase of $48.4 million, respectively. The following table summarizes our cash flow activity for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
| <br>***($ in thousands)*** | **Year Ended**<br> **December 31,**<br> **2025** | **Eleven** <br> **Months** <br> **Ended** <br> **December 31,**<br> **2024**  | **One** <br> **Month** <br> **Ended** <br> **January 31,** <br> **2024** |
| Net cash used in operating activities | $(96525) | $(94647) | $(21244) |
| Net cash provided by (used in) investing activities | 91642 | 136662 | (12405) |
| Net cash provided by financing activities |  | 6378 |  |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents for the period | $(4883) | $48393 | $(33649) |

---

 ****

***Operating Activities***

Net cash used in operating activities results from payments made to operate the mining business, particularly to hosting and energy providers, as well as tax payments, general and administrative expenses, and repairs and maintenance to mining equipment. Historically, these expenses are not offset by our revenues, as consideration from the mining pool operator is received in bitcoin rather than cash. With the repurposing of our Ward County facility for digital infrastructure solutions, the stable cash flows from the lease of that facility are contracted to begin in August 2026 and will provide more balanced operating cash flows.

The $10.4 million net cash used in operating activities during the three months ended March 31, 2026, represents a net loss of $13.0 million adjusted for non-cash items including $7.4 million in cryptocurrency mining revenue received in bitcoin, $5.6 million in depreciation of our miners and other long-lived assets placed in service, a $53.3 million change in the fair value of bitcoin held in treasury, $16.4 million increase in the deferred tax benefit, and $6.4 million in stock compensation expense. Other material changes to our use of cash in operating activities during the three months ended March 31, 2026 include a $39.8 million decrease in deferred revenue resulting from the recognition of digital solutions revenue at our Ward County facility. See "—Results of Operations" for further information about the modifications to our business strategy that are driving these non-cash impacts.

The $37.6 million net cash used in operating activities during the three months ended March 31, 2025, represents a net loss of $28.0 million adjusted for non-cash items including $41.1 million in cryptocurrency mining revenue received in bitcoin, $16.5 million in depreciation of our miners and other long-lived assets placed in service, a $45.4 million change in the fair value of bitcoin held in treasury, $17.6 million gain on the sale of bitcoin, and $7.5 million reduction in the deferred tax liability.

For the year ended December 31, 2025, the Company sold bitcoin held in treasury to fund its mining operations. The $96.5 million net cash used in operating activities during the year ended December 31, 2025 (Successor) represents net loss of $247.7 million adjusted for non-cash items including $135.6 million in cryptocurrency mining revenue received in bitcoin, $66.7 million in depreciation of our miners and other long-lived assets placed in service, a $66.8 million change in the fair value of bitcoin held in treasury, $47.4 million realized gain on bitcoin sold during the period, $10.2 million loss on the disposal of property and equipment, $6.0 million change in the provision for credit losses, $(66.6) million change in the deferred tax benefit, and $3.5 million in stock compensation expense. In addition, the impairment of our long-lived assets held and used was a non-cash item impacting the net loss in the amount of $150.3 million, along with an impairment of goodwill totaling $68.2 million. See "—Results of Operations" for further information about the modifications to our business strategy that are driving these non-cash impacts. Other material changes to our use of cash in operating activities during the year ended December 31, 2025 include a $7.8 million increase related to prepaid expenses and other current assets, and a $39.8 million decrease for lease payments on which revenue has been deferred.

For the eleven months ended December 31, 2024 (Successor), the Company utilized the cash balance acquired in its January 31, 2024 transaction to help fund the building of our Ward County owned mining site and support its existing mining operations. The $94.6 million net cash used in operating activities during the eleven months ended December 31, 2024 (Successor) represents net income of $40.1 million adjusted for non-cash items, including $138.4 million in cryptocurrency mining revenue received in bitcoin, $42.4 million for the depreciation of mining equipment and fixed assets placed in service at our owned and leased sites, a $71.7 million change in the fair value of bitcoin held in treasury, $5.5 million realized gains on bitcoin sold during the period, and $12.0 million in deferred tax provision. Other material changes to our use of cash during the eleven months ended December 31, 2024 include a $10.4 million increase related to a reduction of prepaid expenses and other current assets, primarily related to our shift away from mining at hosted sites in favor of energizing our own owned and leased facilities during 2024. In addition, we recorded a $12.2 million increase in accounts payable and other accrued liabilities primarily related to construction-in-progress at the Ward County facility, which was awaiting the final phase of energization for the mining operations at that site as of December 31, 2024.

During the one month ended January 31, 2024, the Predecessor's decrease in cash balance is primarily attributable to funding operations from its existing cash balance. The net cash used in operating activities of $21.2 million represents a net loss of $10.4 million, adjusted for non-cash items including $15.4 million cryptocurrency mining revenue received in bitcoin, $6.2 million depreciation of mining equipment, and a $1.8 million loss on the disposal of mining equipment. During the one month ended January 31, 2024, the Predecessor funded operating activity primarily by increasing payables to related parties.

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**Investing Activities**

During the three months ended March 31, 2026, the Company received $2.0 million in proceeds from assets held for sale, partially offset by $0.2 million in purchases of property and equipment. These investing activities resulting in net cash provided by investing activities of $1.8 million for the three months ended March 31, 2026. For the three months ended March 31, 2026, the Company did not sell any bitcoin held in treasury to fund its mining operations.

During the three months ended March 31, 2025, the Company received $32.7 million from the sale of bitcoin, which was partially offset by $3.3 million in purchases of property and equipment. These investing activities resulting in net cash provided by investing activities of $29.4 million for the three months ended March 31, 2025.

During the year ended December 31, 2025, the Company sold bitcoin held for net proceeds of $101.5 million, as well as received proceeds on the disposal of property and equipment totaling $1.2 million. Of these investing proceeds, $11.1 million was used to purchase property and equipment for the final phase of construction at the Ward County facility. These investing activities resulted in net cash inflows from investing activities of $91.6 million for the year ended December 31, 2025.

As part of the acquisition of the Predecessor's cryptocurrency mining assets on January 31, 2024, the Company received $195.7 million in cash to fund the ongoing expansion of its bitcoin mining operations in Ward County. During the eleven months ended December 31, 2024, the Company invested its cash in U.S. Treasury securities and money market funds, on which we earned a net of $2.4 million, and also sold bitcoin held for net proceeds of $10.1 million. These investing proceeds were partially offset by cash payments of $71.6 million for the purchase of property and equipment related primarily to construction of the Ward County owned mining site during the same period. These investing activities resulted in net cash inflows from investing activities of $136.7 million for the eleven months ended December 31, 2024.

During the one month ended January 31, 2024, the Predecessor used net cash of $12.4 million for investing activities, which consisted of a $20.9 million outlay for construction at the Ward County owned mining site, partially funded by $8.5 million proceeds from the sale of bitcoin held.

**Financing Activities** 

For the three months ended March 31, 2026 and March 31, 2025, the Company received $0 net cash from financing activities.

For the year ended December 31, 2025, the Company received $0 net cash from financing activities. For the eleven months ended December 31, 2024 (Successor), net cash provided by financing activities totaling $6.4 million reflects proceeds from the sale of Class A common stock in accordance with the Contribution Agreement with Hut 8.

Historically, the Predecessor was primarily financed with loans from its affiliate, Celsius UK. All loans from affiliates of the Predecessor were forgiven with the execution of the Plan on January 31, 2024.

**Contractual Obligations, Commitments and Contingencies**

Refer to Note 13 and Note 17 to our consolidated financial statements included elsewhere in this prospectus for further information regarding the Company's commitments and contingencies.

**Critical Accounting Policies and Estimates** 

The above discussion and analysis of the Company's financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of the Company's consolidated financial statements requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the consolidated financial statements.

See Note 2 to our consolidated financial statements included elsewhere in this prospectus for a summary of the Company's significant accounting policies.

The Company believes the following critical accounting policies, estimates, and assumptions may have had a material impact on reported financial condition and operating performance of the Company and may have involved significant levels of judgment to account for highly uncertain matters or are susceptible to significant change. 

Long-Lived Assets

Property and equipment are recorded at cost, net of accumulated depreciation. Judgment is necessary in estimating the Company's various assets' useful lives. This includes evaluating the Company's own usage experience with its currently owned assets, the quality of materials used in construction-related projects and, for its miners, the rate of technological advancement and market-related factors such as the price of bitcoin and the Bitcoin network hashrate, which impact the value of the miners. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements and electrical equipment are depreciated over the shorter of their estimated useful lives or the lease term. Changes in depreciation and amortization, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change.

The Company reviews its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted cash flows expected to be generated by the asset. Significant judgment is used when estimating future cash flows, particularly the price of bitcoin and the network hashrate. Any impairment loss recorded is measured as the amount by which the carrying value of the assets exceeds the fair value of the assets. Should our estimates of useful lives, undiscounted cash flows, or asset fair values change, additional and potentially material impairments may be required, which could have a material impact on our reported financial results.

[**Table of Contents**](#C_001)

 

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in a business combination. In accordance with ASC Topic 350, *Goodwill and Other Intangible Assets* ("ASC 350"), goodwill will be tested for impairment at least annually or more frequently if certain indicators suggest it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Until the fourth quarter of 2025, we operated as a single cryptocurrency mining operating segment with a single reporting unit. With our foray into digital infrastructure solutions through the lease of our Ward County facility, we began evaluating the Company as two operating segments, and have allocated our goodwill across a single reporting unit within each of those operating segments.

The allocation of goodwill to our two reporting units triggered a qualitative assessment in the fourth quarter of 2025 to determine whether it is more likely than not that the fair value of each reporting unit was less than its carrying amount.The qualitative factors considered in any qualitative assessment of goodwill included macroeconomic conditions, industry and market considerations, financial performance of the reporting unit, changes in management or business strategy, and changes in the composition of assets of each reporting unit.

If the qualitative analysis suggests that the carrying value of a reporting unit is more likely than not to be less than its fair value, the Company performs a quantitative assessment of goodwill. When quantitatively analyzing goodwill for impairment, management estimates the fair value of a reporting unit compared to the carrying value of the reporting unit, a process which incorporates a combination of the income and market valuation approaches. The income approach is a valuation technique under which the Company estimates discounted future cash flows using the financial forecast from the perspective of an unrelated market participant. Significant assumptions used in estimating future cash flows of a reporting unit include projected bitcoin prices and global hashrate, capital expenditures, operating results, growth rates, regulatory and economic conditions, and the discount rate.

As of December 31, 2025 the Company recognized a full impairment of the $68.2 million goodwill allocated to its cryptocurrency mining reporting unit. There was no goodwill impairment recognized during the three months ended March 31, 2026 or 2025, or during the eleven months ended December 31, 2024.

Share-based compensation

The Company accounts for share-based compensation in accordance with ASC 718, *Stock Compensation*. Share-based compensation expense is recognized for stock-based awards granted to employees, directors, consultants, and other service providers based on the grant-date fair value of the awards.

The fair value of share-based compensation awards is amortized over the vesting period, which is defined as the period during which a recipient is required to provide service in exchange for an award. Awards with both market and service conditions are expensed over the vesting period for each separately vesting tranche.

For more complex performance awards, including awards with market-based conditions, the fair value is estimated using the Black-Scholes-Merton option pricing model or Monte-Carlo simulations, which require the use of subjective assumptions, including the expected term of the option or the restricted stock units, the impact of dilution, expected price volatility of the underlying share, the expected dividend yield, and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company receives the services that entitle the employees to receive payment. Prior to publicly listing on an exchange, the fair value of our common stock was determined by management with input from third-party valuation specialists. Following our public listing, the fair value of our common stock will be the closing price of our common stock as reported on the applicable grant date.

Income Taxes

The Company complies with the accounting and reporting requirements of ASC 740, *Income Taxes* ("ASC 740"), which requires use of the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is required to the extent any deferred tax assets may not be realizable, and the Company has considered the weight of available evidence, including future reversals of existing taxable temporary differences, cumulative losses in recent years, and expectations of future taxable income.

The Company follows the provision of ASC 740 related to accounting for uncertain income tax positions. When tax returns are filed, it is more likely than not that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely that not that the position will be sustained upon examination by taxing authorities. The Company's policy is to record interest and penalties associated with uncertain tax positions through income tax expense.

[**Table of Contents**](#C_001)

**Recently Issued and Adopted Accounting Pronouncements** 

A description of recently issued and adopted accounting pronouncements that may potentially impact the Company's financial position and results of operations is disclosed in Note 2 to the Company's consolidated financial statements included elsewhere in this prospectus.

**Quantitative and Qualitative Disclosures About Market Risk** 

The Company's revenue is primarily driven by a ten year arrangement to lease its Ward County facility for use in the HPC/AI sector by a single global hyperscaler. As the lessee's performance under this contract is guaranteed for the first 5 years by certain third parties, and the lease payments are fixed, the Company does not foresee significant market risks surrounding its digital infrastructure solutions business segment.

Within the cryptocurrency mining business, revenue earned is less stable as it is impacted by the value of bitcoin rewards and transaction fees earned by mining. As such, the Company is affected by fluctuations and long-term trends in the value of bitcoin. Bitcoin has its own unique dynamic in terms of valuation, reward rates and similar factors. Any of these factors could lead to material adverse changes in the market for bitcoin, which could in turn result in substantial damage to or even the failure of our business.

A 10% increase or decrease in the weighted average market value of bitcoin for the three months ended March 31, 2026 would have increased or decreased revenue by $0.7 million, which would not have had a material effect on total revenue for the current period, while a 10% increase or decrease in the weighted average market value of bitcoin for the three months ended March 31, 2025 would have had a material impact of increasing or decreasing revenue by $4.1 million. As we continue to prepare our assets for their highest as best use by the HPC/AI sector, we believe we will continue to see a decline in the impact that bitcoin market fluctuations have on our overall revenue earnings.

With our primary focus for the year ended December 31, 2025 being in cryptocurrency mining, a 10% increase or decrease in the weighted average market value of bitcoin would have increased or decreased revenue by $13.6 million and would have had a material effect on total revenue for the current period. A 10% increase or decrease in the weighted average market value of bitcoin for the eleven months ended December 31, 2024 (Successor) would have increased or decreased revenue by $13.8 million and would have had a material effect on total revenue for that prior period. In addition, a 10% increase or decrease in the weighted average market value of bitcoin for the one month ended January 31, 2024 (Predecessor) would have increased or decreased the Predecessor's revenue by $1.5 million for the period and would have had a material effect on its total revenue during that period. Since both Successor and Predecessor sell and hold bitcoin, increases or decreases in the market value of bitcoin would have resulted in gains or losses recognized within Operating expenses in the Consolidated Statements of Operations as well as the fair value of Cryptocurrency assets held at the end of the period and reported in the Company's Consolidated Balance Sheets.

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| | | |
|:---|:---|:---|
| | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net <br> ($ in millions)** | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net <br> ($ in millions)** |
| | **Successor** | **Successor** |
| <br>**Change in Average Bitcoin Price** | **Three Months Ended <br> March 31, <br> 2026** | **Three Months Ended<br> March 31,<br> 2025** |
| (20)% | $(1.48) | $(8.22) |
| (10)% | $(0.74) | $(4.11) |
| 10% | $0.74 | $4.11 |
| 20% | $1.48 | $8.22 |

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| | | | |
|:---|:---|:---|:---|
| | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net<br> ($ in millions)** | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net<br> ($ in millions)** | **Impact of Bitcoin Price Changes on Cryptocurrency Mining Revenue, net<br> ($ in millions)** |
| | **Successor** | | **Predecessor<br> (Debtor-in-Possession)** |
| <br>**Change in Average Bitcoin Price** | **Year Ended <br> December 31, <br> 2025** | <br>**Eleven Months Ended<br> December 31,<br> 2024** | **One Month Ended<br> January 31,<br> 2024** |
| (20)% | $(27.11) | $(27.69) | $(3.08) |
| (10)% | $(13.56) | $(13.84) | $(1.54) |
| 10% | $13.56 | $13.84 | $1.54 |
| 20% | $27.11 | $27.69 | $3.08 |

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[**Table of Contents**](#C_001)

**BUSINESS**

**Business Overview** 

We are a digital infrastructure solutions and cryptocurrency mining company. We began as a pure-play cryptocurrency mining company when we were formed in January 2024 to acquire all of the cryptocurrency mining assets of Celsius Mining. From our inception, our core objective has been to monetize our portfolio of powered digital infrastructure assets. Historically, we have monetized these assets by efficiently mining bitcoin. More recently, we have sought to achieve this objective by primarily leasing our digital infrastructure assets to hyperscalers, enterprise customers and other businesses for high-performance computing ("HPC") and artificial intelligence ("AI") cloud infrastructure.

In October 2025, we announced our inaugural participation in the HPC/AI sector with a 126-month "triple net" lease with Nscale Ward County LLC (together, with its affiliates, "Nscale"), a global hyperscaler engineered for sovereign-grade AI infrastructure at our Ward County property in West Texas. Under the lease we committed to providing Nscale with the full amount of the 234 megawatts ("MW") of current energy capacity at our Ward County property. We received our first payment under the lease in November 2025, and monthly fixed lease payments will commence in August 2026. Payments under the lease represent total contracted revenues of approximately $1.95 billion.

In February 2026, we amended the lease, which contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. In addition, Nscale will receive the tax advantages associated with our qualified data center status. We refer to the lease, as amended, as the "Nscale Agreement."

We expect the Ward County property to energize the additional 89 MW during the second half of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million during 2026 and the first half of 2027, which we plan to fund with cash on hand as well as with sales of our bitcoin held in treasury, as needed. Assuming we are able to secure the additional 89 MW during the second half of 2027, we anticipate the total contracted revenues under the Nscale Agreement would increase to approximately $2.6 billion.

In addition, we are seeking to expand the energy capacity at the Ward County property to 700 MW, which we believe would advance the monetization of our owned powered digital infrastructure assets. We have begun making investments in the Ward County property to support the increased power capacity, including beginning to develop the remaining 86 acres of the property to provide the infrastructure for our effort to support up to approximately 700 MW of total capacity at Ward County. At the fully expanded capacity of 700 MW, our total capital expenditures are expected to be approximately $64 million incurred primarily during the last half of 2026 and the first half of 2027. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations.

Entry into the Nscale Agreement is the culmination of a process we began in early 2025 to identify a strong counterparty and develop an attractive contract structure to better monetize our Ward County site. We believe our agreement with Nscale represents a transformative transaction that significantly increases the value of our company. Although we began as a pure-play bitcoin mining operator, we have successfully demonstrated our ability to convert and optimize our infrastructure, including transitioning our Ward County property for use as an HPC/AI data center. This transaction accelerates our strategy to build a diversified digital infrastructure solutions platform, with the flexibility to deploy our sites across data centers and other digital infrastructure applications as market conditions evolve. Our strong balance sheet also gives us the ability to better monetize sites currently mining bitcoin, expand into other markets, and develop additional powered shell data centers. The combination of an existing cryptocurrency mining business, and the Nscale Agreement, provides us with a steady income stream that includes predictable, high-margin cash flows. We believe that those strengths, together with a strong balance sheet, should position us well as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure.

With five facilities in Texas, three of which we own (including the Ward County property) and two of which we lease, as well as a strong balance sheet, we believe we are well-positioned to execute on our long-term strategy of monetizing powered digital infrastructure assets across data centers, bitcoin mining, and other energy-intensive applications.

During the three months ended March 31, 2026, we mined 95.7 bitcoin, net of mining pool participation fees of 0.9 bitcoin, an average of 1.1 net bitcoin mined per day. During the same period, we sold 0 bitcoin.

During the year ended December 31, 2025, we mined 1,331.0 bitcoin, net of mining pool participation fees of 6.1 bitcoin and revenue share paid to our hosting partners of 6.4 bitcoin, an average of 3.6 net bitcoin mined per day. During the same period, we sold 1,009.0 bitcoin at an average price of $100,547, generating aggregate gross proceeds of $101.5 million.

During the eleven months ended December 31, 2024, we mined 1,988.3 bitcoin, net of mining pool participation fees of 3.2 bitcoin and revenue share paid to our hosting partners of 87.2 bitcoin, an average of 5.9 net bitcoin mined per day. During the same period, we sold 150.2 bitcoin at an average price of $67,340, generating aggregate gross proceeds of $10.1 million.

As of March 31, 2026, we held a total of 2,815.6 bitcoin in treasury.

In addition, at our owned and leased facilities we had approximately 23,200 specialized ASIC active miners hashing as of March 31, 2026. As of March 31, 2026, our total miners owned have an aggregate potential hashrate capacity of approximately 12.2 EH/s, with our active miners contributing approximately 2.0 EH/s to our mining pool. Our miners do not currently serve as collateral in any financing arrangements.

**Properties**

Our assets position us as an emerging innovator at the intersection of energy, bitcoin mining, and advanced computing infrastructure. Currently, our portfolio includes bitcoin mining operations at five sites, three of which we own, and two of which we lease.

Our owned real property portfolio consists of approximately 166 acres, which we believe are suitable and adequate to support our current business strategy.

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*Ward County* 

On October 14, 2025, we expanded into the HPC/AI sector. We entered into the Nscale Agreement, a 126-month "triple-net" data center lease of our Ward County property to a subsidiary of Nscale for HPC use. In February 2026, we amended the lease. The Ward County property provides 234 MW of critical IT load for Nscale's hyperscale AI campus. Prior to our entry into the Nscale Agreement, Ward County served as the cornerstone of our bitcoin mining operations. The contracted revenue to be provided to us under the Nscale Agreement is expected to surpass the revenues we had historically earned in our bitcoin mining operations at the Ward County property.

Under the terms of the Nscale Agreement, Nscale paid $45.6 million to us in November 2025 (the "Ward County Option Payment"). The initial contractual term of the Nscale Agreement commenced in December 2025. Fixed rent payments under the Nscale Agreement will begin on August 1, 2026 (the "Rent Commencement Date"), and the Nscale Agreement has an initial term of 10 Lease Years after the Rent Commencement Date. Pursuant to the Nscale Agreement, a "Lease Year" means (i) for the first Lease Year, the 18-month period commencing on August 1, 2026 and ending on January 31, 2028 and (ii) for each of the nine successive Lease Year, the successive period of 12 calendar months, each commencing February 1 and ending January 31.

In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. The expanded power capacity under the Nscale Agreement is subject to regulatory approval, and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity.

The Nscale Agreement will provide approximately $1.95 billion in contracted revenue over the initial term ending on January 31, 2037. After the first five Lease Years, the monthly rent payable by Nscale will increase by 3% annually over the preceding Lease Year. The Nscale Agreement includes one ten-year extension option with monthly rent to be equal to the then-prevailing market rate as determined in accordance with the Nscale Agreement (but not less than the then current monthly rent). The Nscale Agreement also provides Nscale with a right of first refusal to lease all or any portion of additional power capacity that is or becomes available at the Ward County property, and Nscale has granted an option to Microsoft for additional power to become available at the Ward County property, if it becomes available, starting in late 2027.

Under a "triple-net" lease, Nscale, as the tenant, is responsible for rental payments and ongoing expenses at the Ward County property, while we are responsible for the management of, but not the cost of, substation maintenance. The Nscale Agreement includes customary covenants and agreements for a triple-net data center lease, including with respect to (i) utilities, (ii) electricity, (iii) taxes, (iv) legal compliance, including environmental matters, (v) repairs, alterations and equipment, (vi) insurance, (vii) indemnification and (viii) financing. The Nscale Agreement also includes customary events of default.

In connection with the Nscale Agreement, Nscale provided a guarantee from (i) NVIDIA Corporation in the aggregate face amount equal to the rent payable in the first five Lease Years (up to a maximum amount of $860.3 million) and (ii) Nscale's parent company in the aggregate face amount equal to the rent payable from and after the commencement of the sixth Lease Year. In addition, if Nscale were to become insolvent, its anchor customer may elect within 30 days to step-into the Nscale Agreement for the remainder of the term.

Unless it is renewed, the Nscale Agreement will expire ten years after commencement. We may elect to terminate the Nscale Agreement following the occurrence and continuation of a failure to pay, failure to maintain insurance, failure to comply with the terms of the Nscale Agreement or due to a fraudulent transfer by Nscale.

*Midland*

The Rebel lease will terminate if the property is not used for a period of twelve consecutive months. We may transfer the Stiles lease at any time upon providing written notice, and the lessor of the Stiles lease may terminate following a default that remains uncured for a period of sixty days following written notice of such default.

As of March 31, 2026, we have approximately 6,900 and 5,200 miners actively hashing at the Rebel and Stiles sites, which are contributing approximately 0.5 and 0.4 EH/s hashrate, respectively, to our mining pool.

As of March 31, 2026, we have approximately 8,000 and 3,200 active miners hashing at our East Stiles and Garden City sites, which are contributing approximately 0.6 and 0.3 EH/s hashrate, respectively, to our mining pool.

During the three months ended March 31, 2026, we mined 67.5 bitcoin on site at our Midland facilities.

We intend in the near term to bring all four Midland sites to market for HPC/AI development, as we believe this represents the highest and best use of these sites. Our four Midland sites — East Stiles, Rebel, Stiles, and Garden City — collectively represent 112 MW of current power capacity across approximately 59.5 acres in West Texas, with an additional 10 MW of anticipated capacity at our East Stiles site expected in 2027.

We believe each site has sufficient land to support the construction of a new HPC/AI data center facility — whether structured as a powered shell or a full turnkey deployment — while continuing bitcoin mining operations on the same site during the development period. We are also exploring the possibility of linking all Midland sites together with fiber, creating an ultra-low latency virtual HPC/AI data center campus. We may develop these facilities independently or through joint ventures, and are actively evaluating potential customers and partners for these sites.

Upon the completion and monetization of all four Midland sites, we would expect to exit bitcoin mining operations entirely and operate as a pure-play digital infrastructure company. However, we have not established a timetable for, or committed to, the cessation of bitcoin mining operations, and any future changes would be subject to ongoing evaluation and approval by our Board of Directors.

**Hosted Sites**

In addition to our owned and leased properties, we mined bitcoin at one hosted facility in Oklahoma until the first quarter of 2026.

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*GXD Hosted Site*

 

We were a party to a master co-location services agreement (the "GXD Hosting Agreement") with GXD, originally entered into between Celsius Mining and GXD on February 12, 2023. The GXD Hosting Agreement was assigned to us pursuant to the MCA (as defined below). Under the GXD Hosting Agreement, GXD provided us with hosting services for over 17,000 total miners across two service orders. Under one such service order, entered into February 12, 2023, GXD agreed to host approximately 17,300 of our miners, subsequently reduced to approximately 11,600 miners in October 2024, providing the electrical power and internet access necessary to operate miners at GXD's Oklahoma facility. Under the other service order, entered into July 6, 2023, GXD will host approximately 5,800 of our miners. The GXD Hosting Agreement also provided us with access to GXD's customer portal to monitor performance and uptime of our mining equipment during the agreement.

The GXD Hosting Agreement provided us with up to approximately 60 MW of electricity based on the expected specifications of the miners located there. Under this arrangement, we were obligated to pay GXD $4.00 per unit per month, as well as power costs, certain repair fees and a 40% profit share paid in US dollar. During the year ended December 31, 2025, we mined 259.7 bitcoin with our miners at GXD, and we paid GXD an aggregate of $20.0 million under the GXD Hosting Agreement during the year ended December 31, 2025.

The GXD Hosting Agreement had an initial term lasting for 18 months, with the option of an 18-month extension at our discretion, and was terminable by either party for cause, or at the Company's request by providing written notice at least 90 days prior to the expiration of the GXD Hosting Agreement. The GXD Hosting Agreement was terminated effective February 12, 2026.

*EZB Hosted Sites in Georgia*

 

We were previously a party to a Bitcoin mining hosting agreement (the "EZ Blockchain Hosting Agreement") with EZ Blockchain Services ("EZB"), originally entered into between Celsius Mining and EZB on November 22, 2023. The EZ Blockchain Hosting Agreement was assigned to us pursuant to the MCA (as defined below). Under the EZ Blockchain Hosting Agreement, EZB provided us with hosting services, including electrical power and internet access necessary to operate miners at EZB's West Point, Georgia and Douglas, Georgia facilities. The EZ Blockchain Hosting Agreement had an initial term lasting for a period of 18 months, subject to extension of up to three additional months in the case of curtailment, which is the temporary suspension of mining operations by either party due to low revenue or high costs. On May 26, 2025, we terminated the EZ Blockchain Hosting Agreement for cause.

**Bitcoin Miners**

As of March 31, 2026, we owned approximately 120,600 miners with an average remaining useful life of six months.

The following table describes the composition of our miner fleet as of March 31, 2026 by model and manufacturer-specified energy efficiency.

---

| | | |
|:---|:---|:---|
| **Miner Type** | **Approximate**<br> **Total Miners** | **Approximate**<br> **Energy**<br> **Efficiency**<br> **(J/THs)** |
| Antminer S21 Pro | 663 | 15.0 |
| Antminer S21 | 419 | 17.0 |
| Antminer S19 XP | 4117 | 21.3 |
| Antminer S19j Pro | 82727 | 31.0 |
| Antminer S19 Pro | 13877 | 31.6 |
| Antminer S19 | 18760 | 32.7 |
| **Total miners owned** | **120563** | **30.9** **<sup>(1)</sup>** |

---

(1) *Amount represents the weighted average approximated nameplate energy efficiency of our total mining fleet.* 

We maintain several key supplier relationships that are important to our business for securing mining hardware, infrastructure components and other materials. Due to the complexity of developing mining hardware, particularly the ASIC chips that they rely upon, only a few suppliers can produce miners at scale. Our potential purchase orders may have future delivery schedules that extend out many months before those miners are delivered to our facilities. These delivery timeline fluctuations require us to plan to purchase miners well in advance of their anticipated deployment.

The following table provides additional information on our bitcoin miners deployed by site as of March 31, 2026.

---

| | | |
|:---|:---|:---|
| **Facility (Location)** | **Approximate <br> Count of <br> Active<br> Miners<sup>(1)</sup>** | **Hashrate<br> Contributed<sup>(2)</sup>** |
| **Ionic Digital Owned and Leased Sites<sup>(3)</sup>** | | |
| *Ward County* |  |  |
| &nbsp;&nbsp;&nbsp;Ward County, Texas<sup>(4)(5)</sup> | N/A | N/A |
| *Midland* |  |  |
| &nbsp;&nbsp;&nbsp;East Stiles (Reagan County, Texas)<sup>(4)</sup> | 8000 | 0.6 EH/s |
| &nbsp;&nbsp;&nbsp;Garden City (Glasscock County, Texas)<sup>(4)</sup> | 3200 | 0.3 EH/s |
| &nbsp;&nbsp;&nbsp;Rebel (Glasscock County, Texas)<sup>(6)</sup> | 6900 | 0.5 EH/s |
| &nbsp;&nbsp;&nbsp;Stiles (Reagan County, Texas)<sup>(6)</sup> | 5200 | 0.4 EH/s |

---

(1) *"Active miners" represent the approximate number of miners hashing during the month ended March 31, 2026.* 

(2) *"Hashrate contributed" reflects the average actual hashrate generated by our miners and contributed to a mining pool during March 2026. Actual hashrate generated will often be less than manufacturers' specifications due to curtailment or maintenance downtime.* 

(3) *We own all miners, equipment, and improvements at all Ionic Digital-operated sites.* 

(4) *We own the land at our Ward County, East Stiles, and Garden City sites.* 

(5) *In accordance with the terms of the Nscale Agreement, we have decommissioned all mining assets at the Ward County site as of December 19, 2025.* 

(6) *We lease the land at our Rebel and Stiles sites.* 

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*Mining Pools*

We contribute all of our hashing power to bitcoin-only mining pools. We currently utilize mining pools that pay us bitcoin rewards utilizing FPPS payout of bitcoin based on a contractual formula, which calculates payout primarily based on the hashrate provided by us to the mining pool as a percentage of total network hashrate, along with other inputs. We are entitled to compensation even if a block is not successfully validated by the mining pool operator. Mining pool hashrate is highly volatile, changing moment by moment, and thus our particular contribution to the overall network hashrate of any particular mining pool is constantly changing. The mining pools in which we currently participate pay our bitcoin reward once every 24 hours, and the amount of bitcoin reward we receive is confirmed internally against the amount of bitcoin reward we expected to receive, taking into account the transaction fees due to the mining pool operator. Our mining pool contracts are terminable, without conditions or penalties, at any time without notice by either party without substantive compensation to the other party for such termination.

The payouts we receive from Foundry USA ("Foundry"), our third-party mining pool operator, are net of pool operator fees of approximately 0.90% based on our average hashrate contribution. Effective April 1, 2025, Foundry's fees are determined under a tiered schedule ranging from 0.25% to 2.45%, with fees declining as our hashrate increases and rising if our hashrate decreases. Mining pools allow miners to combine their processing power, increasing their chances of solving a block and getting paid by the network. The rewards are distributed by the pool operator, proportionally to our contribution to the pool's overall mining power, after deducting the applicable pool fee, if any, used to solve a block on the bitcoin blockchain. While we have internal methods of tracking both the hashrate we provide and the total used by the network, the mining pool operator uses its own record-keeping to determine our proportion of a given reward, which may not match our own. If we are unable to consistently obtain accurate proportionate rewards from our mining pool operator, we may not receive accurate block rewards from the pool, and we would have limited recourse to correct these inaccuracies. This could lead us to decide against further participation in a mining pool, or mining pools generally, which may affect the predictability of our mining returns, which could have an adverse effect on our business and operations. If we are unable to consistently obtain accurate proportionate rewards from our pools, we may experience reduced rewards for our efforts.

On a daily basis, Foundry calculates our earnings for the previous day and transfers such rewards to our whitelisted wallet addresses between 9AM and 5PM UTC.

Our proportionate rewards that we may receive from Foundry are not insured against theft, loss, or destruction. If an event occurs where we lose cryptocurrency assets in our mining pools, whether due to cyberattacks, fraud, or other malicious activities, we may not have any viable legal recourse or ability to recover the lost assets. If our cryptocurrency assets are lost under circumstances that render another party liable, there is no guarantee that the responsible party will have the financial resources to compensate us.

**PPM Energy Management Agreements**

 ****

Pursuant to the MCA (as defined below), we were assigned an energy management and consulting services agreement (as amended, the "PPM Energy Management Agreement") with Priority Power Management, LLC ("PPM"), originally entered into between Celsius Mining and PPM on September 28, 2021. Pursuant to the PPM Energy Management Agreement, PPM manages our energy usage, supplier agreements and procurement at our Rebel, Garden City, Stiles and East Stiles facilities.

The PPM Energy Management Agreement has an initial term of 60 months and automatically renews for additional one-year terms thereafter. The PPM Energy Management Agreement may be terminated by either party for cause or at the Company's request by providing written notice at least 90 days prior to the expiration of the term of the PPM Energy Management Agreement.

Pursuant to the MCA, we were also assigned an energy management services agreement (the "PPM EMSA Agreement") with PPM, originally entered into between Celsius Mining and PPM on November 17, 2022. Pursuant to the PPM EMSA Agreement, PPM acts as our Qualified Scheduling Entity ("QSE") to enable and facilitate our participation in certain demand-side management programs in respect of our energy procurement at our Rebel, Garden City, Stiles and East Stiles facilities.

The PPM EMSA Agreement has an initial term of 60 months and automatically renews for additional one-year terms thereafter. The PPM EMSA may be terminated by either party for cause or at the Company's request by providing written notice at least 90 days prior to the expiration of the term of the PPM EMSA Agreement.

Under the PPM EMSA Agreement, we are obligated to pay PPM $6,500 for substation monitoring, incidental repair, and maintenance costs. For the three months ended March 31, 2026, we have paid PPM an aggregate of $63.0 thousand under the PPM EMSA Agreement.

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In connection with the assignment of the PPM Energy Management Agreement and the PPM EMSA Agreement to us, we entered into an assignment and assumption agreement with Celsius Mining and PPM (the "PPM Assignment Agreement") whereby (i) we agreed to assume certain contracts and obligations between Celsius Mining and PPM, (ii) Celsius Mining agreed to assign such contracts and obligations to us and (iii) PPM agreed to assign to us certain land, easements and distribution agreements related to the Rebel, Garden City, Stiles and East Stiles facilities and modify the terms applicable to the development of future capacity at those facilities.

**Competitive Strengths**

We believe that we possess several competitive strengths, including the following:

*Flagship, high-performance facility in Ward County.* Our Ward County site serves as the cornerstone of our operations, offering scalable infrastructure, access to cost-efficient power, and operational reliability. Strategically located in a region with favorable energy pricing and infrastructure, the Ward County property currently has 234 MW of installed capacity. The site has the potential, subject to regulatory approvals and infrastructure development, to support up to approximately 700 MW of total capacity. Expansion of this nature could increase the Company's scale and operating leverage and may enhance long-term shareholder value. However, there can be no assurance that such additional capacity will be approved, constructed, or economically developed. Our planned infrastructure is designed with the optionality to support a wide range of compute-intensive applications, including AI inference and HPC workloads. Nscale, a global hyperscaler, recently contracted to lease approximately 50 acres and access to 234 MW of power at the site under a 126-month agreement to use as a hyperscale AI campus beginning in the third quarter of 2026. We have granted Nscale a right of first refusal on additional capacity at the Ward County site, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or utilize it for our own cryptocurrency mining operations. Additionally, Nscale has granted Microsoft an option for additional power at the Ward County property, if it becomes available, starting in late 2027.

We believe that with our flagship Ward County property, we are well-positioned to capture this opportunity. In addition to the 234 MW currently leased to Nscale, the Nscale Agreement contractually obligates Nscale to lease an additional 89 MW of capacity, when such capacity becomes available, at the same price per MW as the current 234 MW. We expect the Ward County property to energize the additional 89 MW during the second half of 2027. We cannot guarantee that the power generation at our Ward County property will be expanded as currently contemplated, and there is no penalty under the Nscale Agreement if we are unable to provide Nscale with the additional 89 MW of capacity. The expanded power capacity under the Nscale Agreement is subject to regulatory approval. At the current capacity of 234 MW and the increased capacity of 89 MW, our capital expenditures are currently expected to be approximately $40 million during 2026 and the first half of 2027. At the fully expanded capacity of 700 MW, our total capital expenditures are currently expected to be approximately $64 million incurred primarily during the last half of 2026 and the first half of 2027. We plan to fund these capital expenditures with cash on hand as well as with sales of our bitcoin held in treasury, as needed. We have granted Nscale a right of first refusal on additional energy capacity at the Ward County property, and we may also provide the expanded energy capacity to other AI, enterprise, or cloud infrastructure companies, or use the expanded energy capacity for our own cryptocurrency mining operations. Assuming we are able to secure the additional 89 MW during the second half of 2027, we anticipate the total contracted revenues under the Nscale Agreement would increase to approximately $2.6 billion.

*Low-cost access to power.* With our strategically located data center sites across Texas, on both owned and leased land, we are able to take advantage of low-cost power. Our cryptocurrency mining operations utilize miner management software and dynamic load management strategies to optimize power consumption based on real-time market pricing and grid conditions, including participation in curtailment programs that are customary in the bitcoin mining industry. As a result, our average cost of power consumed across our Texas sites was approximately 3.6 cents per kWh for the year ended December 31, 2025 and approximately 2.1 cents per kWh for the three months ended March 31, 2026.

*Differentiated management team with deep experience in data center development.* Our management team comprises individuals drawing on diverse knowledge and skill sets acquired through extensive experience in data centers, real estate, managed digital infrastructure and other fields in the technology sector. Our leadership also incorporates extensive strategic expertise in finance and capital markets.

*Strong balance sheet*. As of March 31, 2026, we had no debt, 2,815.6 bitcoin in treasury at a fair value of $192.1 million, and approximately $34.9 million in cash and cash equivalents that is being proactively managed. We believe our strong balance sheet provides us operational flexibility in a capital expenditure intensive business, as well as access to immediate liquidity to pursue joint ventures and strategic acquisitions. Additionally, we may liquidate bitcoin to cover operational expenses and strategic investments as necessary.

**Growth Strategy**

Our growth plans over the next 36 months center on three elements: monetizing our contracted powered digital infrastructure assets, expanding the capacity and development potential of our owned sites, and positioning our portfolio for the next phase of AI demand through acquisitions or joint ventures. In pursuing these plans, our objective is to generate high margin, incremental cash flows with a predictable dollar-based revenue which complement our longer-term investment strategy. We believe our contracted revenue, balance sheet, and experienced management team position us to pursue these opportunities as they arise.

***Monetizing Powered Digital Infrastructure Assets***

We believe that our portfolio of powered digital infrastructure assets are attractive to hyperscalers, enterprise customers, and other businesses for HPC and AI cloud infrastructure. We believe that leasing our assets to such customers can provide attractive opportunities to monetize our assets with predictable cash flows.

*Ward County* 

In October 2025, we announced our inaugural participation in the HPC/AI sector by entering into the Nscale Agreement, a "triple-net" lease transaction with Nscale, a global hyperscaler engineered for sovereign-grade AI infrastructure, at our Ward County property. Our agreement with Nscale is a 126-month lease for all 234 MW of capacity at the facility, with contracted revenues of approximately $1.95 billion. The Nscale Agreement provides that we will supply an additional 89 MW to Nscale if such additional power becomes available. After an initial 18-month ramp up period, annual fixed rent payable under the lease is $182.5 million, with 3% annual increases scheduled to occur after the fifth year of the lease term. Unless it is renewed, the Nscale Agreement will expire ten years after commencement. We may elect to terminate the Nscale Agreement following the occurrence and continuation of a failure to pay, failure to maintain insurance, failure to comply with the terms of the Nscale Agreement or due to a fraudulent transfer by Nscale.

We expect this lease structure with Nscale will provide us with predictable cash flows while minimizing operating risk at our Ward County site, as we are not responsible for construction or site development. Under our "triple-net" lease, Nscale, as the tenant, is responsible for rental payments and ongoing expenses at the Ward County property, while we are responsible for the management of, but not the cost of, substation maintenance. The Nscale Agreement does not require us to raise additional capital and provides us with significant resources to fund other growth initiatives. We expect this will strengthen our financial foundation and provide a stable source of cash flows, allowing us to monetize these assets while we continue to mine bitcoin at our other facilities.

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We are in active discussions with Texas-New Mexico Power ("TNMP") and the Electric Reliability Council of Texas ("ERCOT") to increase electricity capacity from the current 234 MW to 700 MW by the end of 2027. We have submitted all required documentation, and our ability to obtain the additional power will depend primarily on the completion of two utility projects in the surrounding area that are on track to be completed in 2026 and 2027. Our expansion request was submitted during an earlier study phase relative to subsequent applicants, which may benefit sequencing of transmission evaluations; however, approval and allocation of additional capacity remain subject to regulatory and infrastructure considerations. Nothing in the Nscale Agreement requires us to increase the electricity capacity beyond 234 MW. If this expansion is approved, we plan to make the required infrastructure investments to use the increased power when available.

The Nscale Agreement provides Nscale a right of first refusal on any additional power that may become available at prevailing market rates. If Nscale elects to not exercise this right, we will have the ability to lease the additional capacity to other parties, or we can use the capacity in our own operations.

Other potential opportunities at the Ward County property may include building powered shell or full turnkey data centers in an effort to enter the data center development sector, pursuing joint ventures with established data center developers to build on our Ward County site, or a combination of these opportunities. We are also exploring natural gas transmission at the site given the proximity of gas lines on the property but have no expectations this will materialize in the near future.

With the repurposing of the Ward County site for digital infrastructure solutions, we discontinued all cryptocurrency mining at this location in December 2025.

*Midland*

With the termination of our hosting arrangement with GXD, our four Midland owned and leased sites are our only locations used for mining cryptocurrency. As a result, we relocated our most efficient miners to those sites during the first quarter of 2026. Of the approximately 120,600 miners we owned during the first quarter of 2026, approximately 28,100 are or will be deployed at the Midland sites and are or will be actively hashing, approximately 19,100 miners will be retained for spare parts, and the remaining approximately 73,400 miners will be sold or scrapped.

The 50MW capacity at our Rebel site includes 25MW of unused power capacity added in the fourth quarter of 2025. We also anticipate receiving approval for an additional 10MW of capacity at the East Stiles site during 2027, an expansion for which there are few known barriers, material steps, or material costs at this time.

We intend in the near term to bring all four Midland sites to market for HPC/AI development, as we believe this represents the highest and best use of these sites. Our four Midland sites — East Stiles, Rebel, Stiles, and Garden City — collectively represent 112 MW of current power capacity across approximately 59.5 acres in West Texas, with an additional 10 MW of anticipated capacity at our East Stiles site expected in 2027.

We believe each site has sufficient land to support the construction of a new HPC/AI data center facility — whether structured as a powered shell or a full turnkey deployment — and are exploring the possibility of linking all Midland sites together with fiber, creating an ultra-low latency virtual HPC/AI data center campus. We may develop these facilities independently or through joint ventures, and we are actively evaluating potential customers and partners for these sites. As our Midland sites are developed and monetized for HPC/AI use, we would expect to wind down our bitcoin mining operations over time, with the long-term goal of operating as a pure-play digital infrastructure company. While our long-term strategy contemplates increasing the contribution of digital infrastructure and HPC/AI-related activities to our business, we have not established a timetable for, or committed to, the cessation of bitcoin mining operations, and any future changes would be subject to ongoing evaluation and approval by our Board of Directors.

***Acquisitions and Partnership Opportunities***

We believe the current AI infrastructure build-out is predominantly driven by demand for large-scale capacity to train and run AI/ML modeling and inference workloads. This phase of investment is characterized by near gigawatt-scale requirements and a total cost of ownership focus that favors locations with access to abundant land and low-cost power. Our Ward County campus and four Midland sites are well-suited to this demand profile.

Looking ahead, we believe the next phase of AI infrastructure demand will be shaped by agentic computing and inference workloads —applications that require lower-latency, geographically distributed data center capacity closer to end users. To position Ionic Digital ahead of this shift, our growth strategy is focused on acquiring or leasing sites in or near the top 30 U.S. metropolitan markets. These markets are generally characterized by dense commercial and enterprise activity, and we are targeting sites with sub-100 MW power availability. We believe this scale is well-matched to the requirements of agentic and inference-oriented AI deployments, and that first-mover positioning in these markets will be increasingly valuable as AI workloads migrate from centralized training clusters toward distributed, latency-sensitive inference infrastructure. We believe our balance sheet, experienced management team, and contracted revenue stream will enable us to raise capital for site acquisition and/or development.

***Bitcoin Treasury***

We have sold a portion of our bitcoin held in treasury to cover operating and capital expenditures and to maintain an adequate ongoing liquidity position. During the year ended December 31, 2025, we mined an average of 111.4 bitcoin per month and sold an average of 84.1 bitcoin per month to cover expenses and preserve liquidity. During the three months ended March 31, 2026, we mined an average of 31.9 bitcoin per month and sold zero bitcoin. With the monthly fixed lease payments under the Nscale Agreement beginning in August 2026, we expect to have a steady and increasing stream of cash inflows, which we anticipate will enable us to retain a greater portion of our mined bitcoin, expanding our bitcoin holdings in treasury and supporting broader treasury management initiatives unless we find more compelling investment opportunities that necessitate the liquidation of bitcoin holdings. We do not expect to use cash flows from our digital infrastructure solutions business to fund purchases of bitcoin.

Our Board of Directors has not adopted any formal policies relating to how much of our bitcoin we hold in treasury or when we purchase or sell our bitcoin holdings. Our Board of Directors, together with the members of our management team, periodically manage the amount of bitcoin we hold in treasury and when we purchase and sell our bitcoin holdings based on, among other things, market conditions and our liquidity needs.

In addition, while our Board of Directors has approved certain parameters within which management is authorized to pursue bitcoin hedging strategies, we are not currently engaged in any hedging transactions. We may deploy derivatives as part of hedging strategies intended to manage the value risk of bitcoin held, considering market liquidity and our treasury objectives. We may also employ other derivative trading strategies, which may include selling bitcoin call options or purchasing bitcoin put options, as a monetization strategy or, in certain cases, through structured arrangements such as collar options, to manage downside price exposure related to our physical mining operations.

As we continue to shift our business to leasing digital infrastructure assets, we anticipate that our primary operating revenues will be derived from non-mining activities denominated in U.S. dollars. Our approach to bitcoin holdings is a capital allocation strategy, supported by a diversified capital structure and liquidity management framework.

**Energy Management**

Oncor and TNMP, for-profit electricity transmission and distribution businesses regulated by the Public Utility Commission of Texas, physically deliver electricity to our sites in Texas. We require approvals from both ERCOT and Oncor to continue to operate our current bitcoin mining operations.

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We optimize our energy usage through participation in demand response programs and employment of energy management systems. For example, in Texas, we currently participate in energy demand response programs that curtail some of our bitcoin mining operations to aid in preserving the stability of the energy grid. Curtailment reduces overall energy demand and allows the grid operator (in this case, ERCOT) more operational flexibility when needed, such as during extreme weather events. A bitcoin mining operator can participate in ERCOT's direct demand response programs by agreeing to curtail its electrical load at the direction of ERCOT in exchange for a rebate from ERCOT. We currently participate in ERCOT's direct Responsive Reserve Service program and receive credits from ERCOT when electrical grid capacity deviates from standard conditions.

Additionally, we may voluntarily reduce our energy usage in response to increasing real-time energy prices in order to prudently operate our facilities, which simultaneously reduces strain on the electrical grid. We are not paid a fee or provided a credit by any energy provider for the reduction in energy consumption for this type of voluntary power management. The energy management teams and systems monitor energy costs in relevant jurisdictions and our miners' EH/s, and our bitcoin mining operations are automatically curtailed when the cost to earn a bitcoin outweighs the reward. Our bitcoin miners are then automatically restarted when the cost to earn recedes to a level below the level of a reward.

**Sustainability**

We are committed to building strong community relationships in the jurisdictions in which our mining operations are located. As a bitcoin miner, we are a non-mission critical operation that can shut off when needed to help stabilize the electrical grid. The ability to toggle our power consumption is expected to be most beneficial in areas with a high proportion of intermittent renewable energy, such as Texas. When demand outpaces supply, we can execute our obligations under the demand response programs to help relieve congestion on the grid. This action reduces demand and allows grid operators more operational flexibility.

**Custody Arrangements**

We are taking steps to safeguard our cryptocurrency assets by using multiple third-party custody solutions for the secure storage of our bitcoin. In the context of bitcoin, custody is a service provided by a custodian who controls and safeguards cryptocurrency assets which legally belong to another party. As of the date of this prospectus, we have entered into custody agreements with Anchorage Digital Bank ("Anchorage") and Fidelity Digital Assets ("Fidelity" and, together with Anchorage, the "Custodians").

We entered into a custodial services agreement with Anchorage effective January 26, 2024 (the "Anchorage Custody Agreement") with an initial term of one year. Under the Anchorage Custody Agreement, Anchorage established and maintains custody accounts for the receipt, safekeeping and maintenance of cryptocurrencies in custodial accounts in exchange for a custodial fee. The Anchorage Custody Agreement requires Anchorage to safeguard the cryptographic key material associated with our bitcoin assets, maintained as distributed key shares within hardware security modules (HSM) under a multi-party computation (MPC) framework, in a secure environment following industry best practices in order to protect our bitcoin assets from theft, loss or other forms of destruction. Under the Anchorage Custody Agreement, Anchorage may not commingle our bitcoin with assets of other customers or Anchorage itself, and Anchorage is responsible for verifying the existence of our bitcoins. Anchorage currently holds substantially all of our bitcoin pursuant to the Anchorage Custody Agreement in several geographically distributed physical data centers throughout the United States, utilizing HSM-based key storage and MPC approval workflows. Anchorage also provides insurance coverage of up to $100 million for loss of the cryptocurrencies it holds for us, as well as the cryptocurrencies it holds for others, due to theft, robbery or burglary or third-party computer and funds transfer fraud. This insurance policy covers all of Anchorage's held assets and may only cover a fraction of the value of the entirety of our assets held by Anchorage. The Anchorage Custody Agreement automatically renews on a yearly basis and may be terminated for cause or by either party electing not to renew and providing written notice.

We entered into a custodial services agreement with Fidelity effective June 18, 2024 (the "Fidelity Custody Agreement"). Under the Fidelity Custody Agreement, Fidelity established and maintains custody accounts for the receipt, safekeeping and maintenance of cryptocurrencies in custodial accounts in exchange for a custodial fee. Under the Fidelity Custody Agreement, Fidelity is responsible for holding and managing the private keys associated with our digital assets and is required to exercise the reasonable care of a professional custodian to safeguard those assets. Fidelity maintains discretion over the security measures it employs to protect client assets, which may include offline storage and other controls designed to mitigate risks of loss or theft. Fidelity holds our bitcoin in omnibus wallets along with those of other customers, with Fidelity maintaining separate book-entry records to identify our holdings. Fidelity does not commingle clients' cryptocurrencies with its own assets, and our bitcoin is held separately from Fidelity's own assets held for investment purposes. Fidelity retains responsibility for safeguarding our digital assets and verifying account balances through its own custody reporting. Fidelity currently holds a small portion of our bitcoin pursuant to the Fidelity Custody Agreement. For security reasons, Fidelity is unable to disclose the geographic areas where our bitcoin is stored. Fidelity also provides insurance coverage with limits in excess of $100 million per claim and in the aggregate for loss of cryptocurrencies arising from employee theft and theft committed by third parties and the misappropriation of private information that results or could result in the fraudulent use of that information. This insurance policy covers all of Fidelity's held assets and may only cover a fraction of the value of the entirety of our assets held by Fidelity. The Fidelity Custody Agreement will remain effective until terminated by either party with or without cause.

Applicable insolvency law is not fully developed with respect to the holding of cryptocurrencies in custodial accounts. If our custodied bitcoins were considered to be the property of our Custodians' estates in the event that such Custodian were to enter bankruptcy, receivership or similar insolvency proceedings, there is a risk that we could be treated as a general unsecured creditor of such Custodian, inhibiting our ability to access our bitcoins. Even if we are able to prevent our bitcoins from being considered the property of a Custodian's bankruptcy estate as part of an insolvency proceeding, it is possible that we would still be delayed or may otherwise experience difficulty in accessing our bitcoin held by the affected Custodian during the pendency of the insolvency proceedings. To our knowledge, our Custodians have not petitioned for bankruptcy protection, been declared insolvent or bankrupt, made any assignment for the benefit of creditors, or had a receiver appointed for its assets, at any point while we have been a customer. Further, none of our bitcoins were, as of the date of this prospectus, custodied with any entity that has petitioned for bankruptcy protection, been declared bankrupt or insolvent, made any assignment for the benefit of creditors, or had a receiver appointed for its assets. The recent bankruptcies in the crypto industry and failures of certain financial institutions have not resulted in any loss or misappropriation of any of our bitcoins nor have such events impacted our access to any of our bitcoins.

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Additional custodians and further custody policy and procedures will be determined based on our future needs. We currently do not intend to self-custody any bitcoin, hold bitcoin in a crypto exchange service product or hold any bitcoin or other cryptocurrency for third parties.

**Insurance**

We maintain property insurance coverage for our mining hardware, buildings, and infrastructure. This includes coverage for earthquakes, floods and tornadoes. We also maintain cybersecurity coverage, casualty and general liability and crime insurance policies. We believe our custodian, Anchorage, maintains limited insurance policies covering the pool of cryptocurrencies it custodies against certain events of loss, such as theft. We do not carry additional insurance coverage on our bitcoin holdings. We engage our insurance broker annually to solicit underwriters to provide proposals to renew our current coverage or update our policies to meet our needs, prior to the policies' expiration.

**Government Regulation**

Government regulation of blockchain and cryptocurrencies is being actively considered by the U.S. federal government via a number of agencies and regulatory bodies, as well as similar entities in other countries. For example, the U.S. Congress and a number of U.S. federal agencies, state financial regulatory authorities and self-regulatory organizations (including FinCEN, the SEC, the CFTC, the Financial Industry Regulatory Authority, Inc., the Consumer Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation ("FBI"), and the IRS) have been examining the operations of cryptocurrency networks, cryptocurrency users and the cryptocurrency exchange markets, all of which may apply to our activities and other activities in which we participate or may participate in the future. Other regulatory bodies which are governmental or semi-governmental have shown an interest in regulating or investigating companies engaged in the blockchain or cryptocurrency business, including state and local entities.

Businesses that are engaged in the transmission and custody of bitcoin and other cryptocurrencies, including brokers and custodians, can be subject to FinCEN regulations as money services businesses as well as state money transmitter licensing requirements. The potential application of these policies to bitcoin mining continues to evolve. Bitcoin and other cryptocurrencies are subject to anti-fraud regulations under federal and state commodity laws, and cryptocurrency derivative instruments are substantively regulated by the CFTC. Certain jurisdictions, including states such as New York and California, and a number of countries other than the U.S., have developed regulatory requirements specifically for cryptocurrencies and companies that transact in them.

Regulations may substantially change in the future, and it is presently not possible to know how regulations will apply to our bitcoin mining business, or when they will be effective. As the regulatory and legal environment evolves, we may become subject to new laws, further regulation by the SEC and other agencies, which may affect mining and other activities. For instance, various bills have been proposed in Congress related to cryptocurrencies, including a regulatory framework advanced by the bipartisan House Financial Services Committee in July 2023 that would define when a cryptocurrency is a security or a commodity and expand the CFTC's oversight of the cryptocurrency industry, while clarifying the SEC's jurisdiction. Other bills may be adopted and have an impact on our bitcoin mining business. For additional discussion regarding the potential risks existing and future regulations pose to our business, see the section titled "Risk Factors."

In addition, since transactions in bitcoin and other cryptocurrencies provide a reasonable degree of pseudo-anonymity, they are susceptible to misuse for criminal activities, such as money laundering. This misuse, or the perception of such misuse (even if untrue), could lead to greater regulatory oversight of cryptocurrency platforms, and there is the possibility that law enforcement agencies could close cryptocurrency or other bitcoin-related infrastructure with little or no notice and prevent users from accessing or retrieving cryptocurrencies held via such platforms. For example, former Treasury Secretary Janet Yellen has previously noted that cryptocurrencies have the potential to improve the efficiency of the financial system but that they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems. Former Secretary Yellen requested that federal regulators look closely at how to encourage the use of cryptocurrencies for legitimate activities while curtailing their use for malign and illegal activities.

A number of regulatory proceedings have, and may continue to have, a significant adverse impact on our industry. While we believe our holdings are not a security, we cannot assure you that future legislation or regulation will not have an adverse effect upon us. By way of further example, following the November 2022 Chapter 11 bankruptcy filings of FTX, a leading cryptocurrency exchange, and its affiliated hedge fund, Alameda Research LLC, and the subsequent criminal indictment against senior management, in November 2023 FTX's founder was found guilty on charges of wire fraud, securities fraud and money laundering. While focus on our industry by regulators has increased, it is currently uncertain whether there will be additional legislation or regulation of cryptocurrencies in the near future.

State regulation of bitcoin mining is another important consideration with respect to where we conduct our mining operations. A majority of our bitcoin miners are located in Texas, which historically has been one of the more favorable regulatory environments for bitcoin miners as compared to other states. However, in March 2023, the Texas state senate passed bill SB 1751, which would have limited demand response programs and created additional regulatory reporting requirements for bitcoin miners. However, the bill did not make it through the relevant state legislative committees.

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**Environmental, Health and Safety Matters**

Our operations and properties are subject to extensive laws and regulations governing health and safety, the discharge of pollutants into the environment or otherwise relating to health, safety and environmental protection requirements in countries and localities in which we do and will operate. These laws and regulations may impose numerous obligations that are applicable to us, including but not limited to: acquisition of a permit or other approval before conducting construction or regulated activities; restrictions on the types, quantities and concentration of materials that can be released into the environment; limitation or prohibition of construction and operating activities in environmentally sensitive areas, such as wetlands or areas with endangered plants or species; imposition of specific health and safety standards addressing worker protection; noise or other neighborhood controls; and imposition of significant liabilities for pollution, including investigation, remedial and clean-up costs. Failure to comply with these requirements may expose us to fines, penalties and/or interruptions in our operations, among other sanctions, that could have a material adverse effect on its financial position, results of operations and cash flows.

Certain environmental laws may impose strict, joint and several liability for costs required to clean up and restore sites where hazardous substances have been disposed or otherwise released into the environment, even under circumstances where the hazardous substances were released by prior owners or operators, or the activities conducted and from which a release emanated complied with applicable law. Moreover, it is not uncommon for neighboring landowners and other third parties to file claims for bodily injury and property damage allegedly caused by noise or the release of hazardous substances into the environment.

Concerns have also been raised about the amount of electricity required to secure and maintain the Bitcoin network. In addition to the direct power costs of performing the calculations involved in bitcoin mining, there are indirect costs that impact a cryptocurrency networks' total power consumption, including the costs of cooling the machines that perform these calculations and ancillary energy consumption. Due to these concerns around power consumption, particularly as such concerns related to public utilities companies, various jurisdictions (including certain cities) have implemented, or are considering implementing, moratoriums on cryptocurrency mining in their jurisdictions. Environmental, health and safety laws and regulations are subject to change. The trend in environmental regulation has been to place more restrictions and limitations on activities that may be perceived to impact the environment, and thus there can be no assurance as to the amount or timing of future expenditures for environmental regulation compliance or remediation. New or revised laws and regulations that result in increased compliance costs or additional operating restrictions, or the incurrence of environmental liabilities, could have a material adverse effect on our financial position, results of operations and cash flows.

**Intellectual Property**

We actively use specialized hardware and software for bitcoin mining. In some instances, source code and other software assets may be subject to an open-source license, as much technology development in this sector is open source.

We do not currently own any patents in connection with our existing business.

**Human Capital Resources**

As of March 31, 2026, we had fifteen full-time employees and officers and eight full-time independent contractors. We have since hired a permanent chief financial officer, chief development officer, and general counsel, and we expect to hire additional full-time employees over the course of 2026, including additional finance and accounting, operations, human resources, business development and legal staff. We also expect to continue to work with existing vendors to service certain of our facilities as necessary.

**Competition**

In our digital solutions business, we face significant competition from various data center providers in the U.S. Many of our competitors own or operate properties similar to our facilities. We seek to differentiate our services to attract and retain customers.

Many of our competitors offer more locations and are active in more markets. Many of our competitors may have significant advantages over us, including longer operating histories, greater name recognition, pre-existing relationships with current or potential customers, the capacity to provide the same or additional products and services at a lower cost, greater access to capital and other financial and operational resources, and better established, more extensive scale and lower cost suppliers and supplier relationships. Competitors in the digital solutions business include:

● Cipher Mining Inc.

● DataDirect Networks

● Digital Realty Trust

● TeraWulf Inc.

The bitcoin mining space is filled with a range of competitors, each supplying hash power to the Bitcoin network. Competitors include everything from individual hobbyists to large-scale, professionally-run mining operations. Large-scale mining operators are our primary source of competition due to the immense hash power they provide to the network. Within bitcoin mining, we also face significant competition in many aspects of our business, including, but not limited to, the acquisition of new mining equipment, access to capital, obtaining low-cost electricity, obtaining access to energy sites with reliable sources of power and evaluating new technology developments in the industry.

As more miners have recently entered the market, the increased competition for a limited number of blocks added to the bitcoin blockchain has caused a significant increase in the network hashrate. As a result, there have been rising levels of difficulty implemented by the Bitcoin network. Changes in network difficulty can create volatility in cryptocurrency mining revenue.

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Our main competitors in cryptocurrency mining include the following companies:

● Applied Digital Corporation

● Argo Blockchain plc

● Bit Digital, Inc.

● Bitfarms Ltd.

● Cipher Mining Inc.

● CleanSpark, Inc.

● Core Scientific, Inc.

● Greenidge Generation Holding Inc.

● HIVE Digital Technologies Ltd.

● Hut 8 Corp.

● IREN Limited

● MARA Holdings, Inc.

● Mawson Infrastructure Group Inc.

● Riot Platforms, Inc.

● TeraWulf Inc.

The cryptocurrency mining industry is a highly competitive and evolving industry and new competitors and/or emerging technologies could enter the market and affect our competitiveness in the future.

**Company History**

Ionic Digital was founded in January 2024 to acquire certain bitcoin mining assets from Celsius Mining, pursuant to the bankruptcy plan of reorganization (the "Plan") of Celsius Network LLC and its affiliates (together with its debtor and non-debtor affiliates, "Celsius"), which was approved by a vote of a majority of Celsius creditors and subsequently confirmed by the Bankruptcy Court in November 2023. On January 31, 2024 (the "Plan Effective Date"), we acquired the bitcoin mining assets and assumed certain liabilities of Celsius Mining, an affiliate of Celsius, pursuant to the Plan. On February 1, 2024, we began operations.

The total bitcoin mining fleet that we acquired from Celsius Mining had a hashrate of approximately 12.7 EH/s, of which approximately 6.0 EH/s was actively mining on the Plan Effective Date. Under the Plan, certain of the day-to-day operations of our bitcoin mining business was initially outsourced to Hut 8 under our direction and supervision pursuant to a master services agreement (as amended and restated, the "Mining MSA"). Under the Mining MSA, Hut 8 would also complete and deliver certain related projects, upon our approval of the required funding, including building and energizing up to 100 additional MW of bitcoin mining facilities within twelve months of the Plan Effective Date at a capped construction cost of $395,000 per MW. The capped construction cost also applied to up to 300 MW of additional developments for medium voltage to plug ready infrastructure for a period after 24 months from the Plan Effective Date to the end of the term of the Mining MSA, subject to certain specified cost adjustments. Effective December 10, 2024, we terminated the Mining MSA with Hut 8, providing us with operational control of Ward County and our other bitcoin mining sites in December 2024. In addition, following the termination, we have eliminated certain hosted sites and now manage our own mining operations. See "Risk Factors—Risks Related to Our Company—Due to our limited operating and financial history, our historical financial information may not be indicative of our future results of operations."

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Pursuant to the MCA, we were assigned a bitcoin mining hosting agreement (the "Alpha Hosting Agreement") with USMIO Alpha LLC, a subsidiary of Hut 8 Corp. ("Alpha"), originally entered into between Celsius Mining and Alpha on August 8, 2023. Under the Alpha Hosting Agreement, Hut 8 agreed to provide hosting services, including electrical power and internet access necessary to operate miners at Hut 8's Niagara Falls, New York facility. The Alpha Hosting Agreement had an initial term of twelve months, with our option to renew for four consecutive twelve-month terms. For the eleven months ended December 31, 2024 (Successor), we paid an aggregate of $10.3 million in cash and 60.2 in bitcoin under the Alpha Hosting Agreement. In November 2024, we mutually terminated the Alpha Hosting Agreement in connection with the termination of the Mining MSA with Hut 8.

Ionic Digital is not a successor to Celsius Mining for corporate law purposes, and we did not assume any pre-Plan Effective Date net liabilities of Celsius Mining. Instead, under the terms of the Plan, we entered into a Master Conveyance Agreement (the "MCA") with Celsius Mining, effective as of the Plan Effective Date. The MCA documents the assignment from Celsius Mining to us of: (i) Celsius Mining's bitcoin mining assets (and the books and records related thereto); (ii) approximately $195 million in cash; (iii) approximately $29 million in prepaid capital investments related to Ward County; (iv) approximately $2 million in credits with manufacturers of miners, available until their expiration to purchase additional new or used miners from those vendors; and (v) approximately 540 bitcoin (valued on the Plan Effective Date at $23 million). No cash consideration was paid from Ionic Digital to Celsius Mining for any of such assets. Ionic Digital issued 37 million shares of our Class A common stock for the benefit of the former creditors of the Debtors.

**Overview of HPC/AI Infrastructure Industry**

We believe that demand for data centers for HPC/AI applications will drive significant demand for digital infrastructure solutions. As businesses prioritize digital transformation, the demand for data center infrastructure is expected to increase substantially. Companies require robust, reliable and scalable solutions, including reliable, affordable access to power and infrastructure, in order to process, analyze and store vast amounts of data, and data centers play a crucial role in meeting these needs.

Energy efficiency and reliability are increasingly important considerations in the data center industry. Companies seek to develop locations with access to reliable, affordable energy sources, and implement advanced cooling and power management technologies to reduce manage their operating costs.

The AI market has experienced significant growth and development in recent years, with the rapid advancement of machine learning, natural language processing, and computer vision. We believe substantial growth in the data center industry will be driven by AI which requires high power density, changing the power and cooling requirements of the data center design.

Power availability has become the binding constraint on data center growth. Newmark Research estimates that demand from existing and planned U.S. data centers exceeds anticipated utility supply by roughly 50%, and Goldman Sachs Research projects U.S. data center power demand to more than double to approximately 66 GW by 2027. While the disclosed U.S. development pipeline reached 241 GW as of year-end 2025, only about one-third is under active development, underscoring that the constraint is not announced capacity but the ability to deliver interconnected, permitted and energized power. We believe providers offering comprehensive power, space and connectivity solutions are best positioned to capitalize on this demand.

**Overview of Bitcoin and the Bitcoin Mining Industry**

Bitcoin is a type of cryptocurrency that is designed to work as a secure and decentralized medium of exchange. Using a blockchain database secured by a proof of work mechanism, value can be sent from one account to another in a matter of minutes, or even seconds, without requiring the involvement of a financial intermediary. Computers that run a bitcoin "full node" verify and store the historical bitcoin blockchain state. A blockchain is a form of database, and blockchain-based projects vary greatly in their levels of centralization and applications.

In the bitcoin protocol, each account is identified by a "public key," the address to and from which funds are sent. A "private key" is needed to access the account, which can be thought of as the key to a safety deposit box. Anyone who possesses the private key for a bitcoin address has full access to the contents within it.

The Bitcoin network infrastructure is collectively maintained by a public user base that runs nodes. Running a node is accessible to anyone who has a steady broadband internet connection as well as the proper computing and storage power. The relatively low barrier to entry of running nodes allows for the network to be verified by a dispersed or "decentralized" network.

Bitcoin mining uses a method called "Proof of Work" to validate the transactions included in the settlement layer. Proof of Work is the method of validating the previous transaction block, which requires computers to run computation-intensive algorithms that attempt to solve a complicated algorithm before verifying the previous transaction block. Recognizing that over time the computing power devoted to mining can increase or decrease, every 2,016 blocks (a cadence of roughly every two weeks assuming a block is produced every 10 minutes) the Bitcoin network re-calibrates the difficulty of the puzzle in order to keep an approximately 10-minute interval between two blocks. This interval between blocks is known as the "block time."

Bitcoin miners use SHA-256 to perform hash calculations to verify transactions for inclusion on the blockchain and receive bitcoin in exchange. They "mine" bitcoin by using ASICs that are generally optimized to compute just a single function or set of related functions. An ASIC miner is a device that uses ASICs for the sole purpose of mining bitcoin and with some equipment, other cryptocurrency. The process begins with an operator running a mining client on their computer, which turns their computer into a "node" on the Bitcoin network and validates the blocks. In return for contributing computing power to the system, miners receive bitcoin as a reward. Bitcoin miner capability is measured in terms of the processing power that the miners contribute to the overall network. This is often referred to as "hash" power, a term for the number of "hashing" algorithms worked on per second. Each newly created and verified block refers and "connects" with the immediately prior solved block, like a new link being added to a chain, which creates the blockchain. It is the software's role to validate the various transactions occurring on the blockchain, and if the mining client is successful in adding a block to the blockchain, the operator is rewarded with a fixed bitcoin award (a "block reward") as well as a variable bitcoin transaction fee. This process is the method by which new bitcoin is awarded to the miner and can enter circulation to the public.

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The market price of bitcoin has been subject to substantial volatility, with prices ranging from a high of approximately $124,720 to a low of approximately $39,524 between January 1, 2024 and March 31, 2026 and was approximately $66,724 as of March 31, 2026, based on the daily quoted spot price of bitcoin at 00:00:00 UTC per Coinbase. The market capitalization of bitcoin as of December 31, 2025 and March 31, 2026 was approximately $1.75 trillion and $1.37 trillion, respectively (based on the U.S. dollar price of bitcoin). The market price of bitcoin is influenced by a number of complex factors, all of which are outside of our control, including market supply and demand, changes in technology or regulation, availability and cost of credit, fraudulent actors, speculation, and incomplete or inaccurate information being reported in the media. Bitcoin mining companies depend heavily on the price of bitcoin to fund their operations, and therefore bitcoin's market price volatility can pose a significant challenge to the profitability and plans for future growth for such companies.

Similarly, volatility in the cost of energy — the most significant operational expense for bitcoin mining companies — can have a significant impact on their financial performance. A bitcoin mining company will be profitable only if the costs of mining a bitcoin, including amortization of computer hardware and the electricity costs associated with mining a bitcoin, are less than the market value of the bitcoin generated by the mining operations. Macroeconomic, geopolitical, regulatory and weather events can increase electricity costs and thereby adversely affect the success of a bitcoin mining operation.

As more computing power is added to the Bitcoin network, the network automatically adjusts to account for this increase in "network hashrate" — the combined computing power of all participants on the Bitcoin network — by increasing its level "difficulty" (defined below). This ensures that the time taken to solve a new block and distribute the rewards remains consistent, despite fluctuations in the network's computing power. As a result of these adjustments, the probability of a bitcoin mining operator adding a new block to the bitcoin blockchain per unit of "hash power" — their total computing capability — has decreased over time. This dynamic introduces volatility and some downward pressure over the long term on the anticipated success rate of validating blocks and earning block rewards of block rewards for bitcoin mining operators, as the effort required to mine a block increases with the network's overall computing power. This has led bitcoin mining operators to combine their resources into "mining pools" to smooth out the underlying stream of bitcoin rewards. Bitcoin mining operators use pooling services and contribute their hashrate (defined below) to mining pools, subject to the terms of service of the relevant pool. Participation in such pools is generally terminable at any time by either party at will without prior notice and therefore a participant's risk to a particular mining pool is limited. In exchange for a miner's contributions of processing power into a mining pool, the miner receives a percentage of the bitcoin mined by the collective, consistent with the miner's proportional contribution of hash power to the pool.

A mining pool operator coordinates the computing power for all the participants. The pool uses software to coordinate the pool members' computing power, records how much computing power each participant contributed, and assigns a proportional percentage of the block rewards to each participating member of the pool. The mining pool operator typically takes a fee in the form of a percentage of the overall pool's revenue in return for its services.

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*Blockchain and the Cryptocurrency Industry*

 

The Bitcoin network was launched in 2009. Bitcoin is a cryptocurrency with a market capitalization of approximately $1.37 trillion (based on the U.S. dollar price of bitcoin) as of March 31, 2026. Bitcoin can be traded and converted into major fiat currencies in most major economies around the world.

*Mathematically Controlled Supply*

 

The Bitcoin network has a predetermined creation schedule of blocks being released. When first launched, the reward for miners was set at 50 bitcoin per block, and this was cut in half to 25 in 2012 at block 210,000. Moving forward, the number of bitcoin awarded for solving a new block will be automatically halved every 210,000 blocks, which, at current rates, equates to approximately four years. After 2012, the reward was cut in half again to 12.5 in 2016, to 6.25 in 2020 and to 3.125 on April 19, 2024. This deliberately controlled rate of bitcoin creation means that the number of bitcoin in existence has a hard cap of 21 million, incorporating an inflation schedule that decreases over time from the launch.

*Hashrate and Difficulty*

 

"Difficulty" is a relative measure of how complex the process is to solve the hash calculation and receive the bitcoin reward. Difficulty is controlled by the Bitcoin network and is adjusted every 2,016 blocks (or roughly two weeks) depending on how much hashing power is deployed by all miners worldwide. The difficulty is designed to maintain certain mining results so that, on average, 10 minutes is required to solve a hash calculation and create a block, which currently would result in a reward of 3.125 bitcoin. If the hash calculation difficulty is too great and miners are struggling to solve the problem within 10 minutes, then the network will reduce the difficulty of mining bitcoin (and vice versa if it is too easy).

Hash computations are measured in "hashrate" or "hashes per second." A "hash" is a single computation run by a miner to attempt to create a new block in the bitcoin blockchain. A "hashrate" is the processing speed of a mining computer. A higher total hashrate of a specific miner, or the combined hashrate of an individual company's miners, results in a mathematically higher probability of success in solving the block and receiving a bitcoin reward.

**Seasonality**

Our annual and quarterly operating results have the potential to be affected by seasonality related to weather and the related energy commodity price volatility. The price of electric power typically peaks during the winter and summer months, and more generally during extreme weather events, which can potentially impact our results. Additionally, extreme weather conditions may affect the efficiency and uptime of our mining operations which will have an impact on operating results.

**Legal Proceedings**

From time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business. The outcome of any such claims or proceedings, regardless of the merits, is inherently uncertain. See Notes 17, 18, and 20 to our consolidated financial statements included elsewhere in this prospectus for further information.

Based on current information, the Company does not believe a material loss, if any, can be reasonably estimated from any claims, lawsuits, and proceedings to which the Company is subject, either individually or in the aggregate.

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**MANAGEMENT AND GOVERNANCE**

The following sets forth certain information, as of June 1, 2026, concerning the persons who serve as directors on our Board of Directors (the "Board") and as executive officers of Ionic Digital. No executive officer has any "family relationship" as defined in Item 401 of Regulation S-K) with any other executive officer or any director.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| **Executive Officers** |  |  |
| Andy Stewart | 54 | Chief Executive Officer and Director |
| Chris Hickman | 43 | Chief Financial Officer |
| Antonio Piraino | 52 | Chief Strategy Officer |
| Mark Lambourne | 65 | Chief Development Officer |
| Richard Carson | 59 | General Counsel |
| **Directors** |  |  |
| Elizabeth LaPuma | 47 | Chairperson of the Board |
| Michael Abbate | 47 | Director |
| Thomas DiFiore | 50 | Director |
| Scott Duffy | 46 | Director |
| Scott Flanders | 69 | Director |
| Oliver Wiener | 48 | Director |

---

  ****

***Executive Officers***

***Andy Stewart*** has served as Chief Executive Officer and Director of Ionic Digital since November 2025. Mr. Stewart has more than 25 years of experience in the digital infrastructure industry, most recently serving as an independent advisor and consultant regarding digital infrastructure businesses from 2024 through 2025 and as the Chief Executive Officer of Evoque Data Center Solutions ("Evoque") from 2020 until 2023. At Evoque, he successfully implemented a strategy to optimize its portfolio of data centers and shift sales efforts to hyperscale edge and large enterprise deployments. Prior to his time at Evoque, Mr. Stewart served as Chief Executive Officer of TierPoint, leading the company through a series of eleven acquisitions and over $2 billion of equity and debt financing transactions from 2010 until 2016. He later served as Chief Strategy Officer of TierPoint, with responsibilities encompassing service delivery, product development, and corporate strategy from 2016 until 2018. Prior to TierPoint, he served in various senior leadership roles at Cequel III, where he held roles across finance, corporate development, and operations across several communications infrastructure businesses including Suddenlink (cable), AAT (towers), and Broadwing (fiber) from 2002 until 2010. Mr. Stewart started his career in New York at JP Morgan and later worked for American Express and Charter Communications. He previously served on the Board of Directors of Flexential and as a Senior Advisor at Morgan Stanley Infrastructure Partners from 2024 until 2025. He earned a BA from Denison University and holds an MBA from the Olin School of Business at Washington University in St. Louis. Mr. Stewart was selected to serve as a Director of Ionic Digital based on his extensive background in digital infrastructure and because he is Chief Executive Officer of our company.

***Chris Hickman*** has served as Chief Financial Officer of Ionic Digital since May 2026. Mr. Hickman has more than 20 years of experience in finance across the digital infrastructure and energy sectors. From January 2025 until April 2026, Mr. Hickman served as Chief Executive Officer of Tillman Infrastructure, LLC, and from April 2024 until December 2024, he served as Chief Financial Officer of Tillman Infrastructure, LLC. Mr. Hickman has held senior leadership roles at Crown Castle International Corp., a publicly traded U.S. wireless infrastructure company, including as Vice President of Investor Relations & Capital Markets from January 2021 until April 2024, where he was responsible for investor relations, capital markets and strategic planning functions, and as Vice President of Finance & Strategy from October 2018 until January 2021, where he was responsible for operational finance and strategy. Earlier in his career, Mr. Hickman held senior finance, strategy and corporate development roles at Noble Energy, Inc., where in 2018, he served as the commercial lead for deal structuring and negotiations for the company's largest domestic asset, and in prior roles through which he led the successful initial public offering of Noble Midstream Partners and established the finance organization supporting a multi-billion-dollar joint venture. Mr. Hickman received his Bachelor of Business Administration in Finance from Texas A&M University.

***Antonio Piraino*** has served as Chief Strategy Officer of Ionic Digital since February 2026. Mr. Piraino brings 30 years of experience in digital infrastructure, data centers, cloud computing, and AI-enabled technology platforms. From 2011 to 2020, he served as Chief Technology Officer of ScienceLogic, where he led the company's technology vision and product strategy as it expanded its infrastructure monitoring and AIOps platform for global enterprises, data center operators, and managed service providers. From 2007 to 2011, he served as Vice President of Research at Tier1 Research (a division of 451 Research, now part of S&P Global Market Intelligence), where he led research and advisory coverage of managed hosting, colocation, CDN, and cloud infrastructure markets.

Following his tenure at ScienceLogic, Mr. Piraino served in senior advisory leadership roles at Uptime Institute, including as Global Head of its Technical Advisory Group, leading international engagements focused on data center strategy, site selection, capacity planning, risk mitigation, and technical due diligence. He has also advised private equity firms, including ORIX Capital Partners and Hg Capital, on technology investment strategy and acquisition diligence, and founded early-stage ventures focused on AI-enabled cloud and digital infrastructure solutions. Mr. Piraino holds a Bachelor of Science degree from the University of Natal, an International MBA from Georgetown University, and has completed professional education in Applied Data Science at the Massachusetts Institute of Technology (MIT).

***Mark Lambourne*** has served as Chief Development Officer of Ionic Digital since March 2026. Mr. Lambourne brings over 30 years of experience in the digital infrastructure industry. He has worked with numerous data center operating businesses as well as private equity and real estate investment companies, where he has overseen the development of new facilities, acquisitions and transformation of existing assets, and investment opportunities in digital infrastructure operating companies in major markets. Mr. Lambourne has served as the Managing Director and President for DC Capital Group, an independent business advisory, strategy and investment firm, since January 2009. He was also President of Digital Infrastructure Advisors Ltd. from September 2022 until its sale in 2025. Mr. Lambourne has overseen the predevelopment of a Hyperscale Build to Suit project, the commercial due diligence of several successful platform acquisitions for capital funds, completed the packaging of numerous Powered Land development projects and provided investment management advisory services on numerous data center assets. Other roles previously held by Mr. Lambourne include: (i) European Managing Director for Digital Realty Trust from 2006 to 2008, where he was responsible for establishing corporate operations and acquiring existing data center assets and development sites throughout Europe, (ii) Chief Executive Officer of ClearBlue Technologies from 2001 to 2004, where he oversaw the acquisition of eight companies in the data center business leading to a reverse merger into Navisite, a publicly traded Nasdaq entity, and (iii) Chief Operating Officer for Global Switch from 1999 to 2001, where he helped develop their data center properties throughout Europe and Asia. Mr. Lambourne received his Bachelor of Arts in Human Movement from the University of Kent and a Masters in Physical Education from the University of California, Berkeley.

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***Richard Carson*** has served as General Counsel of Ionic Digital since May 2026. Mr. Carson has over 30 years of experience as a corporate attorney and executive, with a focus on energy infrastructure, capital markets, and regulated industries, including initial public offerings and other capital markets transactions. Mr. Carson has served as a member of the Board of Directors of Prahsys Inc., a financial technology company, since 2024, where he also served as Chief Legal Officer until May 2026. Prior to that, Mr. Carson served as Associate General Counsel and Corporate Secretary of Magellan Midstream Partners, L.P. (NYSE: MMP) from 2022 to 2023. From 2013 to 2022, he served as Vice President and General Counsel, and later as Senior Vice President and General Counsel, of Cypress Energy Partners, L.P. (NYSE: CELP), a publicly traded energy infrastructure services company. Earlier in his career, Mr. Carson served in various legal roles at The Williams Companies, Inc. (NYSE: WMB) from 1999 to 2008, where he advised on securities, corporate finance, and capital markets matters, including initial public offerings and other financing transactions, and also previously served as a shareholder, director and officer at GableGotwals, a law firm, where he represented public and private companies in securities offerings, financings, mergers and acquisitions, and other corporate transactions. Mr. Carson received a Juris Doctor from the University of Oklahoma and a Bachelor of Science, cum laude, from the University of Tulsa.

***Directors***

 ****

***Elizabeth A. LaPuma*** has served as a Director of Ionic Digital since January 2024 and as Chair since September 2024. Ms. LaPuma brings over two decades of financial advisory and board expertise across diverse industries. With a strong background in originating and structuring complex financial transactions, she is a trusted advisor to numerous business leaders. Ms. LaPuma's principal occupation is serving as a director of several public and private companies, including, from January 2025 through November 2025, Big Lots, Inc., a discount retailer; from April 2024 through April 2025, ContextLogic Inc., an e-commerce platform; from September 2023 through August 2024, Ebix Inc., a software solutions company; from August 2023 through June 2024, WeWork Inc., a workspace provider; and from June 2023 through October 2023, Surgalign Holdings, Inc., a global medical technology company. Ms. LaPuma is a board member for several private businesses within the fintech, AI, healthcare, consumer, and real estate sectors. Prior to these roles, from January 2020 to August 2023, Ms. LaPuma was a Managing Director and Head of Balance Sheet Advisory at UBS, the global investment bank. Prior to UBS, from July 2013 to January 2020, she was a Managing Director and Head of Asset Management Services at Alvarez & Marsal, where Ms. LaPuma advised governments and financial institutions on diverse assets. Ms. LaPuma previously held positions at BlackRock, Lazard Frères & Co. LLC, Credit Suisse and Perella Weinberg Partners L.P. Ms. LaPuma received her M.B.A. in Finance as a Palmer Scholar and B.S. in Finance from The Wharton School at the University of Pennsylvania and her B.A. in International Relations, magna cum laude, from The School of Arts and Sciences at the University of Pennsylvania. Ms. LaPuma has been selected to serve as a Director due to her extensive financial advisory experience (including with complex capital raising and other financial transactions), experience as an advisor to and board director for companies in the AI sector, service as a fiduciary for public and private companies, and her leadership with the Company since its inception. Ms. LaPuma was nominated for election by our stockholders at the 2025 annual meeting in connection with the settlement of pending litigation and pursuant to a cooperation agreement entered into between the Company and Figure Markets Holdings, Inc., GXD Labs LLC, and certain stockholders of Ionic Digital (the "Cooperation Agreement").

***Michael Abbate*** has served as a Director of Ionic Digital since July 2025. Mr. Abbate is the Co-Founder and Chief Investment Officer of GreenWulf Asset Management, an opportunistic asset management firm focused on AI infrastructure and financial technology, since July 2025. He also served as an Advisor to Figure Technology Solutions, Inc. ("Figure") through February 2026 following his tenure as Chief Information Officer from January 2024 through February 2025. Mr. Abbate served as Managing Partner of NovaWulf Digital Management, LP ("NovaWulf"), an investment manager focused on distressed cryptocurrencies and energy infrastructure from June 2021 through December 2023. From 2012 through December 2020, Mr. Abbate was a Partner at King Street Capital Management, L.P., a leading global alternative asset manager. Mr. Abbate started his career as an investment banker in global technology at Morgan Stanley and received a Bachelor of Computer Science and Engineering from Dartmouth College. Mr. Abbate was appointed to the Board in connection with the settlement of pending litigation and pursuant to the Cooperation Agreement.

***Thomas DiFiore*** has served as a Director of Ionic Digital Inc. since January 2024. Since 2021, Mr. DiFiore has served as President of DOBAC LLC, a business consulting firm providing strategic guidance on operational and management issues. From 2015 to 2021, he was the CEO of Fullerton Auto Group, a franchised automotive dealership network. Since 2015, Mr. DiFiore has also served as President of Fullerton Reinsurance Company, overseeing claims management and investment strategy for the company's reinsurance asset pool. Mr. DiFiore served as the Co-Chair of the Official Committee of Unsecured Creditors (UCC) in the Celsius Network LLC bankruptcy from July 2022 through February 2024, playing a leading role in the reorganization process of one of the largest crypto bankruptcy cases to date. In August 2024, Mr. DiFiore was named an advisor to World Liberty Financial, a cryptocurrency platform focused on decentralized finance and tokenized real-world assets, which just recently launched the stable coin, USD1. Earlier in his career, Mr. DiFiore was among the earliest adopters of bitcoin, beginning to mine in 2010 using custom-built miners and open-source software. His hands-on involvement with the network's foundational infrastructure gave him deep technical insight into the evolution of cryptocurrencies over the past fifteen years. In addition to his business experience, Mr. DiFiore has served for more than eight years as a member of the Advisory Council for the Somerset Patriots, the Double-A affiliate of the New York Yankees. In 1999, Mr. DiFiore graduated from the National Automobile Dealers Association's Dealer Academy. Mr. DiFiore was selected to serve as a Director of Ionic Digital based on his extensive background in cryptocurrencies, bitcoin mining, and operational leadership and appointed to the Board pursuant to the Plan.

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***Scott Duffy*** has served as a Director of Ionic Digital since January 2024, bringing deep subject matter expertise in blockchain, bitcoin mining, decentralized finance, and cryptocurrency management. Mr. Duffy served as the Co-Chair of the Official Committee of Unsecured Creditors in the Celsius Network LLC bankruptcy from July 2022 through February 2024, playing a leading role in the reorganization process of one of the largest crypto bankruptcy cases to date. Mr. Duffy oversaw billions of dollars in workload transition to ERP systems at the Defense Finance and Accounting Service (DFAS), facilitating major base realignment and closure initiatives for armed services and defense agency customers. He established and chaired the Columbus Mission Focus Group while at DFAS implementing the first pilot telework program for over 2,000 civilian employees. Since December 2017, he has served as CEO of ICB Solutions, a family investment firm of which he is the sole shareholder. Mr. Duffy's commitment to education and community is reflected in his service on the Ohio Dominican University Finance Advisory Board and, until recently, on the Oakstone Community School Board as a member of the Finance Committee. Mr. Duffy holds a B.S. in Finance and Business Administration from Ohio Dominican University. Mr. Duffy was selected to serve as a Director of Ionic Digital based on his experience in cryptocurrencies, large-scale mining operations, and his financial oversight positions him to help drive Ionic Digital's continued growth and success and appointed to the Board pursuant to the Plan.

***Scott Flanders*** has served as a Director of Ionic Digital since July 2024. Mr. Flanders is a seasoned executive with extensive experience in the media, entertainment, and technology industries. His principal occupation is as the Chairman of Fathom Holdings Inc., a publicly listed, national technology driven real-estate platform company since November 2023, and brings a wealth of leadership and governance expertise to the Ionic Digital board. He also served as Chairman of the board of Digital Media Solutions, Inc. a digital performance marketing provider, from June 2023 to February 2025. Mr. Flanders has a distinguished career, having served as the CEO of several prominent companies, including eHealth, Inc, Playboy Enterprises, Freedom Communications, and Columbia House. As the CEO of eHealth, Inc., a position he held from May 2016 until October 2021, Mr. Flanders developed and executed a strategic growth plan that significantly expanded the company's market share in the Medicare Advantage and small business insurance markets. His leadership was also pivotal in transforming Playboy Enterprises (CEO May 2009-May 2016 and Director July 2009-2019) into a brand management company. Mr. Flanders served as the President and Chief Executive Officer of Freedom Communications, Inc., including as a member of its Board of Directors from 2001 to 2009. From September 1999 to July 2005, he served as Chairman and Chief Executive Officer of Columbia House Company, which was acquired by Bertelsmann AG in July 2005. Mr. Flanders is both an attorney and a Certified Public Accountant (CPA), and he holds a B.A. in Economics from the University of Colorado and a J.D. from the Maurer School of Law at Indiana University. Mr. Flanders has been selected to serve as a Director due to his extensive executive leadership experience and his proven ability to drive growth and innovation in complex industries.

***Oliver Wiener*** has served as a Director of Ionic Digital since July 2025. Mr. Wiener is the Founder and Managing Partner of Kensington Merchant Partners, a merchant bank, investment management and corporate development advisory business focused on Financials, Fintech, Insurance, Insuretech and Blockchain verticals, since January 2023. Previously, he served as a Portfolio Manager at Standard Investments from May 2021 until December 2022. Prior to that, Mr. Wiener served as Founding Team Member and Partner at BTIG, LLC, a global financial services firm from March 2003 until May 2021. Mr. Wiener has served as a member of the Board of Directors of Chain Bridge I (NASDAQ: CBRGU) since February 2024, and The National Security Group, Inc., an insurance holding company since October 2024. In addition, Mr. Wiener serves as a board observer at Figment Inc., a leading provider of blockchain infrastructure since 2022, an advisory board member at Extend since 2021, as well as advisor to investment firms Figment Capital since July 2021 and Hangar since March 2023. Mr. Wiener served as a founding member and former President of the board of the Association for Digital Asset Markets, a private, non-profit, industry-led, broad-based association of firms operating in the cryptocurrency space from November 2018 until May 2021. He is an active member of the Economic Club of New York and the University of Wisconsin College of Letters and Science Board of Visitors, as well as the UW Technology Entrepreneurship Office Advisory Council. He received a B.A. in Political Science and International Relations from the University of Wisconsin-Madison. Mr. Wiener was appointed to the Board in connection with the settlement of pending litigation and pursuant to the Cooperation Agreement.

***Corporate Governance***

*Composition of the Board of Directors* 

Our business and affairs are managed by or under the direction of our Board. Elizabeth LaPuma serves as the Chair of our Board. Our Board is currently composed of seven directors. In accordance with the terms of our amended and restated certificate of incorporation and amended and restated bylaws, the total number of directors constituting the Board shall be fixed by resolution adopted by a majority of the directors and the Board is a classified board with each director serving a staggered, three-year term. The directors are elected by the holders of the Class A common stock, voting as a separate class.

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Subject to any special rights of the holders of one or more series of preferred stock to elect additional directors, the directors shall be divided, with respect to the time for which they hold office, into three classes designated as Class I, Class II and Class III, respectively (the "Classified Board"). The initial term of office of the Class I directors expired at the Company's first annual meeting of stockholders held during 2025. Ms. LaPuma was reelected to serve as a Class I director for a full three-year term expiring at the third annual meeting of stockholders held following the 2025 annual meeting. The initial term of office of the Class II directors shall expire at the Company's second annual meeting of stockholders; and the initial term of office of the Class III directors shall expire at the Company's third annual meeting of stockholders. Our directors will be divided among the three classes as follows:

● the Class I directors are Elizabeth LaPuma and Michael Abbate whose terms will expire at the annual meeting of stockholders to be held in 2028;

● the Class II directors are Scott Flanders and Oliver Wiener whose terms will expire at the annual meeting of stockholders to be held in 2026; and

● the Class III directors are Thomas DiFiore, Scott Duffy, and Andy Stewart, whose terms will expire at the annual meeting of stockholders to be held in 2027.

At each annual meeting of stockholders, directors elected to succeed those directors of the class whose terms then expire shall be elected for a term of office expiring at the third succeeding annual meeting of stockholders after their election. Each director's term shall continue until the election and qualification of such director's successor, or the director's earlier death, resignation, disqualification or removal. Any additional directorships resulting from an increase in the number of authorized directors will be distributed among the three classes so that, as nearly as possible, each class will consist of approximately one-third of the directors.

The classification of our Board may have the effect of delaying or preventing a change of our management, a change of control or other corporate actions. Under Delaware law and our amended and restated certificate of incorporation, for so long as our Board of Directors is divided into classes, our directors may be removed only for cause.

*Director Independence* 

The rules of Nasdaq require that a majority of our Board be independent at the time of our initial public listing. An "independent director" is defined as a person other than an executive officer or employee of the Company or any other individual having a relationship which, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Our Board considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. Based upon information requested from and provided by each director concerning his or her background, employment and affiliations, including family relationships, our Board has determined that each of Ms. LaPuma and Messrs. DiFiore, Duffy, Wiener, Abbate and Flanders do not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the Nasdaq Rules.

*Committees of the Board of Directors* 

The standing committees of our Board consist of an audit committee, a compensation committee and a nominating and corporate governance committee with the composition and responsibilities described below. The members of each committee are appointed by the Board and serve until their successor is elected and qualified, unless they are earlier removed or resign. In addition, from time to time, special committees may be established under the direction of the Board when necessary to address specific issues. The Board has also designated two special committees: a shareholder value committee and a strategic committee.

A copy of the charters for each of the respective committees is available on our website at https://ionicdigital.com. Information contained in, and that can be accessed through, our website is not incorporated into and does not form a part of this prospectus.

*Audit Committee* 

Our audit committee consists of Ms. LaPuma and Messrs. Flanders, and DiFiore, with Elizabeth LaPuma serving as the chair of the committee. The Board has determined that each of these individuals meets the independence requirements of the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act, Rule 10A-3 under the Exchange Act and the applicable listing standards of Nasdaq. Each member of Ionic's audit committee can read and understand fundamental financial statements in accordance with Nasdaq audit committee requirements. In arriving at this determination, the Board has examined each audit committee member's scope of experience and the nature of their prior and/or current employment.

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The Board has determined that Elizabeth LaPuma qualifies as an audit committee financial expert within the meaning of SEC regulations and meets the financial sophistication requirements of the Nasdaq rules. In making this determination, the Board has considered Ms. LaPuma's formal education and previous and current experience in financial and accounting roles. Both Ionic's independent registered public accounting firm and management periodically meet privately with Ionic's audit committee.

The audit committee's responsibilities include, among other things:

● appointing, compensating, retaining, evaluating, terminating and overseeing Ionic's independent registered public accounting firm;

● discussing with Ionic's independent registered public accounting firm their independence from management;

● reviewing with Ionic's independent registered public accounting firm the scope and results of their audit;

● pre-approving all audit and permissible non-audit services to be performed by Ionic's independent registered public accounting firm;

● overseeing the financial reporting process and discussing with management and Ionic's independent registered public accounting firm the interim and annual financial statements that Ionic's files with the SEC;

● reviewing and monitoring Ionic's accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; and

● establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters.

The composition and function of the audit committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations. Ionic will comply with future requirements to the extent they become applicable to Ionic.

*Compensation Committee* 

Our compensation committee consists of Messrs. Flanders, Abbate and DiFiore, with Mr. Flanders serving as the chair of the committee. Messrs. Flanders, Abbate and DiFiore are non-employee directors, as defined in Rule 16b-3 promulgated under the Exchange Act. The Board has determined that Messrs. Flanders, Abbate and DiFiore are "independent" as defined under the applicable Nasdaq listing standards, including the standards specific to members of a compensation committee.

The compensation committee's responsibilities include, among other things:

● reviewing and setting or making recommendations to the Board regarding the compensation of Ionic's executive officers;

● making recommendations to the Board regarding the compensation of the Board;

● reviewing and approving or making recommendations to the Board regarding Ionic's incentive compensation and equity-based plans and arrangements; and

● appointing and overseeing any compensation consultants.

The composition and function of the compensation committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations. Ionic will comply with future requirements to the extent they become applicable to Ionic.

*Nominating and Corporate Governance Committee* 

Our nominating and corporate governance committee consists of Mr. Flanders, Ms. LaPuma and Mr. Wiener, with Mr. Flanders serving as the chair of the committee. The Board has determined that Messrs. Flanders and Wiener and Ms. LaPuma are "independent" as defined under the applicable Nasdaq listing standards, including the standards specific to members of a nominating and corporate committee.

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The functions of the nominating and corporate governance committee include:

● identifying and recommending candidates for membership on the Board;

● recommending directors to serve on the Board committees;

● reviewing and recommending to the Board any changes to our corporate governance principles;

● reviewing proposed waivers of the code of conduct for directors and executive officers;

● overseeing the process of evaluating the performance of the Board; and

● advising the Board on corporate governance matters.

The composition and function of the nominating and corporate governance committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations. Ionic will comply with future requirements to the extent they become applicable to Ionic.

*Strategy Committee*

 

Ms. LaPuma and Messrs. DiFiore, Abbate, Flanders and Wiener are members of this committee, and Mr. DiFiore is the chair.

The functions of the Strategy Committee include:

● making recommendations to the Board regarding the process to select a permanent Chief Executive Officer;

● making recommendations to the Board to increase liquidity for stockholders; and

● making recommendations to the Board regarding engagement of strategic advisors.

*Code of Conduct and Ethics* 

We have a code of conduct and ethics that applies to all of our executive officers, directors and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The code of conduct and ethics is available on our website, https://www.ionicdigital.com/corporate-governance. The reference to our website address in this prospectus does not include or incorporate by reference the information on that website into this prospectus. We intend to disclose future amendments to certain provisions of this code of ethics, or waivers of these provisions, on our website or in public filings to the extent required by the applicable rules.

*Compensation Committee Interlocks and Insider Participation* 

None of our executive officers currently serves, and in the past year has not served, as a member of the compensation committee of any entity that has one or more executive officers serving on the Board.

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**EXECUTIVE COMPENSATION**

**Introduction**

This section provides certain information required by the rules of the SEC regarding the compensation of our "named executive officers" (defined as (1) all individuals who served as our Chief Executive Officer during any part of the fiscal year ended December 31, 2025 ("fiscal 2025"), (2) our next most highly compensated executive officer still serving as of the end of fiscal 2025, and (3) an additional former executive officer who would have been the most highly compensated executive officer other than our Chief Executive Officer for fiscal 2025, but for the fact that she was not serving as of the end of that year). As an emerging growth company, we have opted to comply with the executive compensation rules otherwise applicable to "smaller reporting companies," as such term is defined in Rule 12b-2 under the Exchange Act. The primary objective of our executive compensation program is to attract and retain talented executives to manage and lead our Company effectively. The compensation packages for our named executive officers generally include a base salary, annual cash bonuses, equity awards, and other benefits.

In line with the above-described SEC requirements, our named executive officers for fiscal 2025 are:

● Andy Stewart, our Chief Executive Officer (since November 2025);

● James Gallagher, our former Interim Chief Financial Officer (from September 2025 until May 2026);

● Anthony McKiernan, our former Interim Chief Executive Officer (from December 2024 until November 2025); and

● Laura Schnaidt, our former Chief Legal Officer and Corporate Secretary (from November 2024 until August 2025).

**Summary Compensation Table**

The following table provides summary information concerning compensation of our named executive officers for services rendered to us during fiscal 2025 and, to the extent they were then serving us, the eleven months ended December 31, 2024 ("fiscal 2024"), in all capacities, including amounts paid before and/or after they were considered "executive officers."

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<sup>(1)</sup><br> ($)** | **Bonus ($)** | **Stock<br> Awards<sup>(2)</sup><br> ($)** | **All Other<br> Compensation <sup>(3)</sup><br> ($)** | **Total<br> ($)** |
| Andy Stewart |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Chief Executive Officer* | 2025 | 38461 |  | 25770000 | 769 | 25809230 |
| Anthony McKiernan |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Former Interim Chief Executive Officer* | 2025 | 500000 | 500000 |  | 14000 | 1014000 |
|  | 2024 | 11538 |  |  |  | 11538 |
| James Gallagher |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Former Interim Chief Financial Officer* | 2025 | 177560 |  |  |  | 177560 |
| Laura Schnaidt |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Former Chief Legal Officer* | 2025 | 300000 | 192000 |  |  | 492000 |
|  | 2024 | 78139 |  |  |  | 78139 |

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(1) Amounts reflect the
 following amounts earned during the fiscal year presented: (i) for Messrs. Stewart and McKiernan,
 the base salaries paid to them by us as our employees; (ii) for Mr. Gallagher, fees paid
 to him by a third-party executive search firm, who has a consulting agreement with us to
 provide us with Mr. Gallagher's services; and (iii) for Ms. Schnaidt, fees paid directly
 to her by us pursuant to our professional services agreement with her.

(2) The grant date fair values
 are computed in accordance with FASB ASC Topic 718, *Stock Compensation*, based on assumptions
 in Note 14 to our consolidated financial statements included elsewhere in this
 prospectus.

(3) Reflects the following
 amounts: for Mr. Stewart, $769.23 in matching contributions by us to the 401(k) account for
 401(k) matching contributions; and for Mr. McKiernan, $14,000 in matching contributions by
 us to the 401(k) account.

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**Narrative Disclosure to Summary Compensation Table**

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***Management Agreements***

We entered into an employment agreement with Mr. Stewart on November 17, 2025. Pursuant to the employment agreement, Mr. Stewart receives an annual base salary of $500,000, paid in accordance with the Company's customary payroll practices and subject to annual review and possible increase (but not decrease) as determined by the Board in its sole discretion, except for any proportionate reduction that applies as part of a reduction to substantially all senior executives of the Company. Mr. Stewart is eligible to receive an annual cash bonus with a target amount of 100% of his annual base salary. Mr. Stewart's 2026 bonus will be no less than $250,000; however, if the Company completes an IPO by June 30, 2026, the 2026 bonus will be no less than $500,000. During the term of his employment agreement and for a 12-month period following the date of any termination, Mr. Stewart is subject to non-competition, non-solicitation, and non-hire restrictions, which prohibit him from directly or indirectly engaging in, providing services to, or having an equity interest in any person or entity engaged in the digital infrastructure and cryptocurrency mining business that competes with the Company, subject to limited carve-outs for passive equity interests not exceeding 5% of the outstanding interest in a competing business and certain post-employment advisory activities. For information about the terms of Mr. Stewart's employment agreement governing payments upon termination, see "Termination and Change in Control Provisions."

We do not have an agreement directly with Mr. Gallagher, whose services are provided to us pursuant to a separate consulting agreement dated as of September 2, 2025 (the "Consulting Agreement") between us and ZRG Partners, LLC, a third-party executive search firm, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part. The Consulting Agreement provides that ZRG shall locate personnel for us according to the qualifications, experience, and project requirements we provide in exchange for bi-weekly payments equal to the product of (x) the billing rate of the applicable personnel, multiplied by (y) the number of hours worked by the applicable personnel during the applicable billing period, plus any associated costs incurred during the applicable period.

Our agreements with Mr. McKiernan and Ms. Schnaidt are no longer in effect. However, for purposes of SEC disclosure, we briefly summarize their material terms here. We entered into an offer letter with Mr. McKiernan on December 9, 2024 providing for the terms of his at-will employment with us, including (i) an annual base salary, (ii) eligibility for an annual performance bonus and in some cases additional special bonuses, and (iii) participation in our benefit plans in accordance with our policies. We entered into a professional services agreement with Ms. Schnaidt on October 26, 2024, as later amended, providing for the terms of her services as an at-will non-employee consultant to us, including (i) a monthly consulting fee, (ii) reimbursement of reasonable out-of-pocket expenses incurred by her in the performance of her duties, and (iii) our indemnification and exculpation obligations to her in connection with her services to us.

***Base Salaries***

Our named executive officers received in fiscal 2025 and those still serving us currently receive a base salary or consulting fee to compensate them for services rendered to us. The base salary or consulting fee for each named executive officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role, and responsibilities. For fiscal 2025, the amounts were as follows: we paid Mr. Stewart an annual base salary of $500,000; we paid a third-party executive search firm a weekly consulting fee of $19,000 for the services of Mr. Gallagher (the "Summary Compensation Table" shows the amount paid to him by such firm); we paid Mr. McKiernan an annual base salary of $500,000; and we paid Ms. Schnaidt a monthly consulting fee of $40,000.

***Annual Bonuses***

We provided in fiscal 2025 and currently provide incentive compensation in the form of annual performance bonuses to certain employees, including our named executive officers Messrs. Stewart and McKiernan. We may also pay sign-on, special retention, or other discretionary bonuses to any of our named executive officers from time to time as a way of attracting and retaining top talent. Mr. Gallagher is not and Ms. Schnaidt was not eligible to receive an annual performance bonus due to their service to us via consulting arrangements, but are or were eligible to receive discretionary bonuses. All bonuses may be paid in cash or equity at the discretion of the board or compensation committee.

Annual performance bonuses are determined by our Board of Directors or compensation committee, based on both individual performance of the eligible named executive officer and our overall corporate performance, generally in accordance with performance milestones established by our board or compensation committee. The performance goals differ from executive to executive, with each executive's target annual bonus opportunity equal to a predetermined percentage of his or her base salary. During the covered year, we select the performance targets, target amounts, target award opportunities and other terms and conditions of annual bonuses for the eligible named executive officers, subject to the terms of their employment agreements. Following the end of each year, the board or compensation committee determines the extent to which the performance targets were achieved and the amount of the award that is payable to the eligible named executive officers.

The target opportunities for the annual performance bonuses for our eligible named executive officers in fiscal 2025 were as follows: for Mr. Stewart, 100%; and for Mr. McKiernan, 100%. Neither of these performance bonuses were paid out for fiscal 2025, due either to performance and/or the named executive officer leaving the Company before the payout date. Otherwise, we paid Mr. McKiernan and Ms. Schnaidt discretionary bonuses of $500,000 and $192,000, respectively, for their services to us during fiscal 2025.

***Equity Awards***

We believe that equity incentives motivate executive officers to achieve exemplary results, reward performance, incentivize retention, and align the interests of our executive officers with those of our stockholders. The Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), which was adopted on the Plan Effective Date, allows us to grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, other share-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. As of December 31, 2025, we had reserved 4,841,180 shares (subject to an evergreen) under the Omnibus Plan*.* 

 

Mr. Stewart received in 2025 a grant of 186,875 time-vesting restricted stock units ("RSUs") and 560,625 performance-vesting restricted stock units ("PRSUs"). The RSUs vest over a five-year period in equal installments, with one-fifth vesting on each of the first five anniversaries of the grant, provided that Mr. Stewart remains employed through such vesting date. The PRSUs may vest under two scenarios. First, they may vest under a "change in control" (as defined in the Omnibus Plan) of the Company at certain "valuation" thresholds, provided that Mr. Stewart remains employed through the date of the change in control, with (i) one-third vesting where the valuation is at least $2.5 billion, (ii) an additional one-third vesting where the valuation is at least $3.75 billion, and (iii) a final one-third vesting where the valuation is at least $5 billion. Second, they may vest based on the average daily weighted stock price of the Company's common stock over a 60-calendar-day period ("AWDSP") reaching certain thresholds, provided that Mr. Stewart remains employed through the date of the achievement of the applicable threshold and for 6 months afterward, with (i) one-third vesting where the AWDSP creates a valuation at least $2.5 billion, (ii) an additional one-third vesting where the AWDSP creates a valuation at least $3.75 billion, and (iii) a final one-third vesting where the AWDSP creates a valuation of at least $5 billion. For purposes of the PRSUs, "valuation" means the fair market value of the Company, determined by the Board of Directors as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts, and reflecting deductions for outstanding indebtedness and other liabilities, accrued but unpaid expenses, and other amounts that should be deducted to determine the net value distributable to equity holders under GAAP upon a sale, liquidation, or similar transaction.

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***Pension Benefits and Non-qualified Deferred Compensation Benefits***

Our named executive officers did not in fiscal 2025 and currently do not participate in, or otherwise receive any benefits under, any pension plan or non-qualified deferred compensation plan sponsored by us.

 ****

***Retirement Plan***

We have a qualified contributory retirement plan established to qualify as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended. The plan covers all employees, including our named executive officers, who may contribute up to statutory limits imposed by the Internal Revenue Code. We provide matching contributions of 100% for the first three percent of eligible compensation for enrolled employees and 50% of the next two percent of eligible compensation for enrolled employees.

 ****

***Other Benefits***

The health, safety, and well-being of employees is paramount. We provided in fiscal 2025 and currently provide to all our employees, including our named executive officers employed by us, certain broad-based benefits that are intended to attract and retain employees while providing them with health and welfare security. Other than the retirement plan discussed above, broad-based employee benefits include medical, dental and other benefits.

**Outstanding Equity Awards as of December 31, 2025**

The following table provides information concerning outstanding equity awards held by our named executive officers at the end of fiscal 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** | **Share-based Awards** |
| <br>**Name** | **Number of shares that have not vested (#)** | **Market value of shares that have not vested<sup>(1)</sup><br> ($)** | **Equity incentive plan awards: number of unearned shares that have not vested <br> (#)** | **Equity incentive plan awards: market or payout value of unearned shares that have not vested<br> ($)** |
| Andy Stewart | 186875 | 5326280 | 560625 | 15675281 |
| Anthony McKiernan |  |  |  |  |
| James Gallagher |  |  |  |  |
| Laura Schnaidt |  |  |  |  |

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**Termination and Change in Control Provisions**

For fiscal 2025 and currently, Mr. Stewart is the only named executive officer with whom we maintain severance or change in control arrangements. Prior to the consummation of our listing, we plan to establish a new severance plan, as described further under "Compensation Arrangements to Be Adopted in Connection with this Listing."

Mr. Stewart's cash and other benefits upon termination or change in control are covered by his employment agreement. If the Company terminates Mr. Stewart's employment without cause, he is entitled, in addition to all accrued obligations, to continued payment of his annual base salary for a severance period beginning on the date of termination and ending on the earlier of the 12-month anniversary of that date or the first date on which Mr. Stewart violates any applicable restrictive covenant. In addition, Mr. Stewart is entitled to receive a prorated portion of his annual bonus with respect to the year of termination, determined based on actual achievement of the applicable performance goals. All severance payments are conditioned upon Mr. Stewart's execution and non-revocation of a general waiver and release of claims in favor of the Company.

With respect to his equity awards granted in 2025, if he is terminated for any or no reason, all such RSUs and PRSUs that remain unvested on the date of termination will be automatically forfeited without payment of any consideration (with the exception of a termination for cause within three months prior to a change in control, which impacts the RSUs as noted below). With respect only to his RSUs granted in 2025, where a change in control (as defined in the Omnibus Plan) occurs within the first 12 months after November 17, 2025, (i) if the valuation of the Company is less than $2.5 billion, then all such outstanding RSUs will vest immediately upon the change in control, and (ii) if the valuation of the Company is more than $2.5 billion, then one-half of such outstanding RSUs will vest immediately upon such change in control, in each case, subject to Mr. Stewart's continuous employment through the date of the change in control. If Mr. Stewart is terminated without cause within the three-month period before the consummation of a change in control, he will be entitled to accelerated vesting as if he was employed through the date of the change in control. For purposes of the RSUs, "valuation" means the fair market value of the Company, determined by the Board of Directors as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts, and reflecting deductions for outstanding indebtedness and other liabilities, accrued but unpaid expenses, and other amounts that should be deducted to determine the net value distributable to equity holders under GAAP upon a sale, liquidation, or similar transaction. For the impact of a change in control on Mr. Stewart's PRSUs, see "Narrative Disclosure to Summary Compensation Table—Equity Awards" above.

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**Director Compensation**

***Director Compensation Table***

Our non-employee directors who served during fiscal 2025 earned the aggregate amounts of compensation for 2025 set forth in the table below. Additionally, we provided in fiscal 2025 and currently provide reimbursement to non-employee directors for their reasonable expenses related to their service on our board.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Fees Earned<br> or Paid in<br> Cash<sup>(1)(2)</sup><br> ($)** | **Stock<br> Awards<sup>(3)(4)</sup><br> ($)** | **All<br> Other<br> Compensation<br> ($)** | **Total**<br> **($)** |
| Michael Abbate | 51639 | 1350361 | – | 1402000 |
| Thomas DiFiore | 286923 | 1350361 | – | 1637284 |
| Scott Duffy | 280247 | 1350361 | – | 1630608 |
| Scott N. Flanders | 345275 | 1350361 | – | 1695636 |
| Elizabeth LaPuma | 476551 | 1350361 | – | 1826912 |
| Oliver Wiener | 51639 | 1350361 | – | 1402000 |

---

(1) *Amounts reflect annual cash retainers paid to our non-employee directors for service on our board and/or committees, prorated based on the number of days served by each director during fiscal 2025. The amounts are, starting from the second quarter of fiscal 2025, those paid to our directors under our director compensation program (as described in "Director Compensation Program"), with payments in the first quarter of fiscal 2025 as follows: all non-employee directors, $18,750; chairperson of the board, $10,000; audit committee chairperson, $10,000; other audit committee member(s), $5,000; compensation committee chairperson, $3,750; other compensation committee member(s), $1,875; nominations and governance committee chairperson, $2,500; and other nominations and governance committee member(s), $1,250; emergence committee chairperson, $16,250; other emergence committee member(s), $15,000 (the emergence committee existed for the first quarter of fiscal 2025 only).* 

(2) *Amounts also reflect a cash payment made in January 2025 to the directors then serving (i.e., Messrs. DiFiore, Duffy and Flanders and Ms. LaPuma), which was originally promised as RSUs but then converted into cash. Each of Messrs. DiFiore and Duffy and Ms. LaPuma received $165,000; Mr. Flanders received a prorated amount of $90,627.* 

(3) *Amounts reflect our annual grant of 37,375 RSUs to each of our non-employee directors (as described in "Director Compensation Program"). The 37,375 RSUs were the only outstanding equity awards held by our non-employee directors as of December 31, 2025.* 

(4) *The grant date fair values are computed in accordance with FASB ASC Topic 718, based on assumptions in Note 14 to our consolidated financial statements included elsewhere in this prospectus.* 

***Director Compensation Program***

 ****

For 2025, our non-employee directors received an annual cash retainer, prorated based on the number of days served, and an equity grant. The annualized cash retainer amounts are as follows: all non-employee directors, $90,000; chairperson of the board, $150,000; audit committee chairperson, $40,000; other audit committee member(s), $10,000; compensation committee chairperson, $20,000; other compensation committee member(s), $10,000; nominations and governance committee chairperson, $20,000; other nominations and governance committee member(s), $10,000; strategy committee chairperson, $20,000; and other strategy committee member, $10,000. All non-employee directors also received an equity grant of 37,375 RSUs under our Omnibus Plan, which vest ratably over three years starting on the date of the annual meeting of stockholders held in the year following grant. If a non-employee director is not re-elected or otherwise ceases to be a director prior to the following annual meeting, other than due to a change in control, the unvested portion of these RSUs will be forfeited, and upon a change in control, any unvested and non-forfeited portion of these RSUs will be accelerated.

**Compensation Governance**

Executive compensation and related decisions, including the strategic oversight of our compensation and benefit programs, are made by the Board, based on the recommendation of the Compensation Committee with the assistance of our management. Our Board also determines our non-employee director compensation, based on the recommendation of the Compensation Committee. For more information, see "Management and Governance—Corporate Governance—Compensation Committee." For fiscal 2025, the Compensation Committee engaged an independent compensation consultant, Frederic W. Cook & Co., Inc. ("FW Cook"), to assist it in developing its recommendations on non-employee director compensation. FW Cook provided and continues to provide benchmarking services on each element of compensation and the total compensation of our non-employee directors, as well as related guidance and advice, to help the Compensation Committee design a recommended program appropriate for a company of our size, industry, maturity and complexity.

**Compensation Arrangements to Be Adopted in Connection with this Listing**

*Equity Grant Procedures*

As a matter of policy, we do not permit the timed disclosure of material non-public information for the purpose of affecting the value of executive compensation. In connection with the consummation of our listing, to the extent we make equity grants to a broader population than those who have received equity historically, we intend to adopt and implement more developed practices around the grant of equity awards, which will ensure that we continue adhering to this policy.

 

*Severance Plan*

In connection with the consummation of our listing, we plan to adopt a new severance plan. We have not yet determined the terms of the plan.

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**CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS**

**Transactions Involving Related Parties**

*The following disclosure summarizes the material provisions of the various agreements currently or formerly with Ionic Digital's related parties and is qualified by the full text of the agreements, a copy of each which is filed as an exhibit to the registration statement of which this prospectus forms a part.*

 

*Mining Management Services Agreement*

 

We entered into the Mining MSA as of the Plan Effective Date with Hut 8. The Mining MSA provided that Hut 8 would manage and oversee certain aspects of the bitcoin mining business operations of the Company and its subsidiaries. The capped construction cost also applied to up to 300 MW of additional developments for medium voltage to plug ready infrastructure for a period after 24 months from the Plan Effective Date to the end of the term of the Mining MSA, subject to certain specified cost adjustments.

The Mining MSA initially provided for an initial term of four years, with an option to extend for an additional year at the discretion of the Board or an automatic extension for an additional year should the Company's EH/s equal to or be greater than 23 EH/s at any point on or prior to the third anniversary of the Mining MSA. Under the terms of the Mining MSA, Hut 8 was entitled to receive an annual management fee of $20.4 million, subject to certain project related adjustments and a consumer price index ("CPI") adjustment during the one-year extension period. Additionally, the Company was required to reimburse Hut 8 for certain related expenses under and consistent with a budget approved by the Board or otherwise approved by the Board. The Mining MSA was subject to customary representations and warranties by both parties, and each of Hut 8 and the Company agreed to indemnify the other for certain losses, subject to customary exclusions. Additionally, the Mining MSA provided that, subject to certain conditions, Hut 8 would not be liable for or responsible to the Company if certain enumerated events outside of Hut 8's control occur, but if such event lasts for more than 180 days and results in miners and/or infrastructure under management by Hut 8 diminishing in capacity to an aggregate name capacity (in MW) below 200 MW, the mining management fee due to Hut 8 was to be proportionately reduced. Furthermore, the Mining MSA provided that it may be terminated by mutual agreement, by the Company for cause or in certain circumstances, or by Hut 8 for cause. On June 19, 2024, the Company and Hut 8 amended and restated the Mining MSA to, among other things, (i) reduce Hut 8's annual management fee to $15.0 million per year, (ii) eliminate an early termination condition tied to the effectiveness of the Company's Form 10 filing, (iii) allow the Company to terminate the Mining MSA for any reason, subject to payment of a reduced termination fee equal to $22.5 million, and (iv) obligate Hut 8 to perform management and construction services for the Ward County site with enhanced performance standards, reporting obligations and milestones, including setting December 17, 2024 as the deadline for Hut 8 to substantially complete construction and energization of a 200 MW bitcoin mining facility at the Ward County property with a penalty to Hut 8 of $1 million per month of delay, up to a maximum penalty of $6 million. A copy of the amended and restated Mining MSA is filed as an exhibit to the registration statement of which this prospectus forms a part.

The Company terminated the Mining MSA effective as of December 10, 2024, pursuant to the terms of the agreement, which did not require the Company to pay a termination fee. Our former Chief Executive Officer was previously an employee of a subsidiary of Hut 8 and two of our initial directors were appointed by Hut 8 before the termination of the Mining MSA.

*Contribution Agreement*

 

We entered into a contribution agreement as of the Plan Effective Date (as amended on June 19, 2024, the "Contribution Agreement") with Hut 8, a copy of which is filed as an exhibit to the registration statement of which this prospectus is part. The Contribution Agreement provides that Hut 8 will purchase from us, for an aggregate purchase price of $6,378,000 (the "Initial Plan Sponsor Investment"), the number of shares of our Class A common stock (the "Initial Plan Sponsor Shares") equal to the product of: (a) (i) the sum of all outstanding shares of our Class A common stock issued or anticipated to be issued at the Plan Effective Date plus (ii) the number of shares of our Class A common stock reserved for issuance in accordance with the Plan or subject to holdbacks as of the Plan Effective Date plus (iii) the number of shares of our Class A common stock reserved for issuance in accordance with any equity incentive plan approved or contemplated under the Plan or approved by the Board at Plan Effective Date and (b) a fraction, the numerator of which is the Initial Plan Sponsor Investment and the denominator of which is the Company Net Asset Value (as defined in the Contribution Agreement). If the Mining MSA was not terminated by the Company prior to the listing of the Company's Common Stock on a national securities exchange, then Hut 8 agreed to purchase from the Company, for an aggregate purchase price of $6,378,000, an additional number of shares of Common Stock equal to the product of: the number of the Effective Date Shares (as adjusted to take into account any stock split, reverse stock split or share consolidation, stock dividend or similar event effected by the Company with respect to the Common Stock) multiplied by a fraction, the numerator of which is $6,378,000, and the denominator of which is the Company Net Asset Value. If the Mining MSA was extended beyond its initial term, then Hut 8 agreed to purchase additional shares of our Class A common stock at a price determined utilizing the Company Net Asset Value for an aggregate purchase price of approximately $3,189,000 for year five, subject to a maximum purchase price of $15,945,000 in the aggregate (inclusive of the Initial Plan Sponsor Investment, subsequent investments pursuant to the Contribution Agreement, and any additional stock purchases made pursuant to an extension of the Mining MSA). The Initial Plan Sponsor Shares plus any additional shares purchased after the Initial Plan Sponsor Investment are referred to collectively as the "Plan Sponsor Shares."

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The Contribution Agreement is subject to customary representations and warranties. From the effective date of the Contribution Agreement through the second anniversary thereof (the "Lock-up Period"), Hut 8 will not, without our prior written consent, either directly or indirectly: (i) offer, sell, contract to sell, hypothecate or pledge, grant any option to purchase or otherwise dispose of, make any short sale or otherwise transfer or dispose of, directly or indirectly, the Initial Plan Sponsor Shares; (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Initial Plan Sponsor Shares, subject to certain customary exclusions. During the last year of the Lock-Up Period, if the trading price of our Class A common stock is equal to or greater than 150% of the NAV per Share (as defined in the Contribution Agreement), Hut 8 may sell up to 30% of the Initial Plan Sponsor Shares, and if the trading price of our Class A common stock is equal to or greater than 200% of the NAV per Share, Hut 8 may sell up to 60% of the Initial Plan Sponsor Shares.

Under the terms of the Contribution Agreement, Hut 8 agreed to vote all Plan Sponsor Shares owned by Hut 8 as of the relevant record date in accordance with the recommendations of our Board at any meeting of stockholders and in connection with any written consent of stockholders for so long as the Mining MSA is in effect. The Plan Sponsor Shares were also subject to the "— Investors' and Registration Rights Agreement" described below.

Pursuant to the Contribution Agreement, on January 31, 2024 Hut 8 made an initial investment in the Company of $6.4 million cash in exchange for 374,261 shares of Ionic Digital Class A common stock. As these shares were issued at a price discounted from the $20.00 per share fair value of Ionic Digital's Class A common shares, the Company recognized stock compensation expense in the amount of the discount of $1.1 million on the date of issuance, which is included within General and administrative expenses on the Consolidated Statement of Operations during the eleven months ended December 31, 2024.

The Company terminated the Contribution Agreement prior to listing its common shares on a national exchange. As such, no additional capital contributions have been made.

*Restricted Stock Agreement*

 

We entered into a restricted stock agreement (the "Restricted Stock Agreement") with Hut 8. Among other things, the Restricted Stock Agreement provided that Hut 8 would receive 670,801 shares of our Class A common stock (the "RSPA Shares") (representing 1.59405% of the Class A common stock on a fully-diluted basis) as partial consideration for entering into the MSA on the Plan Effective Date. The RSPA Shares were to vest in equal proportions on each anniversary of the effective date of the Mining MSA in accordance with the vesting schedule set forth in the Restricted Stock Agreement. In connection with the termination of the Mining MSA, all RSPA shares were cancelled.

*Warrant Agreements*

 

We entered into five separate (but substantively identical) warrant agreements with Hut 8 as of the Plan Effective Date (the "Warrant Agreements"). Among other things, each of the Warrant Agreements provided that Hut 8 was entitled to purchase from us a number of shares of our Class A common stock equal to (a) 0.31881% of the number of shares of our Class A common stock outstanding *minus* (b) the aggregate number of shares of our Class A common stock previously issued as a result of any partial exercise of the warrant at the exercise price for each warrant determined on its annual vesting date and subject to the terms, conditions, and adjustments set forth in the Warrant Agreements. The Warrant Agreements had exercise periods commencing on the first, second, third, and fourth anniversary of the Plan Effective Date, and, if the Mining MSA were to be extended beyond its initial four-year term, the fifth anniversary of the Plan Effective Date. In connection with the termination of the Mining MSA, all outstanding warrants were canceled.

*Investors' and Registration Rights Agreement*

 

We entered into an Investors' and Registration Rights Agreement as of the Plan Effective Date (the "Registration Rights Agreement") with Hut 8.

Among other things, the Registration Rights Agreement provided that Hut 8 could require us to, pursuant to the terms of and subject to the limitations contained in Registration Rights Agreement, prepare and file with the SEC a registration statement registering the offering and sale of the Registrable Securities (as such term is defined in the Registration Rights Agreement) held by Hut 8 and the other holders of Registrable Securities, provided that such Registrable Securities (i) had an aggregate value of at least $7,500,000 based on the VWAP (as defined in the Registration Rights Agreement) or (ii) represented at least 15% of the Registrable Securities eligible for registration. The registration rights were subject to the other limitations contained in the Registration Rights Agreement, including without limitation, that such registration rights were limited to four Demand Registrations (as such term is defined in the Registration Rights Agreement). Additionally, subject to certain customary restrictions, if the Company proposed to file a registration statement under the Securities Act with respect to an offering of Class A common stock by the Company, the Company should have used commercially reasonable efforts to include in such registration statement the Registrable Securities for which it had received written requests for inclusion therein.

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Under the terms of the Registration Rights Agreement, Hut 8 agreed to vote all Covered Shares (as such term is defined in the Registration Rights Agreement) owned by Hut 8 in accordance with the recommendations of our Board at any meeting of stockholders and in connection with any written consent of stockholders for so long as the Mining MSA is in effect. The Mining MSA was terminated effective as of December 10, 2024. All of our obligations under the Registration Rights Agreement other than certain indemnification obligations have terminated.

*Alpha Hosting Agreement*

 

On August 8, 2023, Celsius Mining entered into the Alpha Hosting Agreement with USMIO Alpha LLC, a subsidiary of Hut 8 Corp. Under the Alpha Hosting Agreement, Hut 8 agreed to provide hosting services, including electrical power and internet access necessary to operate miners at Hut 8's Niagara Falls, New York facility. The Alpha Hosting Agreement has an initial term of twelve months, with Celsius Mining's option to renewal for four consecutive twelve month terms. The Alpha Hosting Agreement was assigned to us as of the Plan Effective Date pursuant to the MCA. We mutually terminated the Alpha Hosting Agreement in November 2024.

**Related Party Transaction Policy**

We have adopted a formal policy for the review, approval or ratification of related party transactions. The transactions discussed above were not reviewed, approved or ratified in accordance with any such policy; all of them were negotiated between Celsius and Celsius Mining (as debtors-in-possession) and the Official Committee of Unsecured Creditors in the Bankruptcy and approved by the Bankruptcy Court as part of the Plan. The Mining MSA, Contribution Agreement, Warrant Agreements and Investors' and Registration Rights Agreement involved Hut 8 as a counterparty. Our initial and former CEO, Matt Prusak, and two of our former directors, Asher Genoot and Steven Price, each owned shares in Hut 8 Corp. This created the potential for a conflict of interest in any agreement between Ionic Digital and Hut 8.

We have adopted a code of ethics requiring us to avoid, wherever possible, all conflicts of interests, except under guidelines or resolutions approved by our Board (or the appropriate committee of our Board) or as disclosed in our public filings with the SEC. Under our code of ethics, conflict of interest situations include any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) involving the company.

In addition, our audit committee, pursuant to our audit committee's written charter, has the responsibility to review and approve related party transactions to the extent that we enter into such transactions. An affirmative vote of a majority of the members of the audit committee present at a meeting at which a quorum is present is required in order to approve a related party transaction. A majority of the members of the entire audit committee constitutes a quorum. Without a meeting, the unanimous written consent of all of the members of the audit committee is required to approve a related party transaction. We also require each member of our management team to complete a directors' and officers' questionnaire that elicits information about related party transactions.

These procedures are intended to determine whether any such related party transaction impairs the independence of a director or presents a conflict of interest on the part of a director, employee or officer.

We have filed a copy of our code of ethics and our audit committee charter as exhibits to the registration statement of which this prospectus is part. You will be able to review these documents by accessing our public filings at the SEC's web site at www.sec.gov. Following effectiveness of the registration statement of which this prospectus is part, the code of ethics will be available on our website. In addition, a copy of the code of ethics will be provided without charge upon request from us. We intend to disclose any amendments to or waivers of certain provisions of our code of ethics in a Current Report on Form 8-K.

**Director and Officer Indemnification** 

The Governing Documents provide for indemnification and advancement of expenses for our directors and officers to the fullest extent permitted by the DGCL, subject to certain limited exceptions. We entered into indemnification agreements with our current directors and executive officers prior to the completion of this registration and expect to enter into a similar agreement with any new directors or executive officers.

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**PRINCIPAL AND REGISTERED STOCKHOLDERS**

**Principal and Security Ownership of Beneficial Owners and Management**

The following table sets forth information regarding the beneficial ownership of our Class A common stock as of the date of this prospectus. The table below sets forth such beneficial ownership for:

● each stockholder that is a beneficial owner of more than 5% of the Class A common stock (based on information that was publicly available or made available to the Company as of the date of this prospectus, and assumes the conversion of all of our Series A Preferred Stock into shares of our Class A common stock);

● each director or director nominee;

● each named executive officer; and

● all directors, director nominees and executive officers as a group.

The registration statement of which this prospectus forms a part registers for resale shares of Class A common stock held by or issuable to the Registered Stockholders who are our affiliates, including shares issuable upon the conversion of Series A Preferred Stock and shares issuable upon exercise of Warrants. The Registered Stockholders may from time to time offer and sell any or all of the shares of Class A common stock set forth in the column titled "Shares of Class A Common Stock Being Registered" pursuant to this prospectus and any accompanying prospectus supplement. Such sales, if any, may be made through brokerage transactions on Nasdaq at prevailing trading prices. As such, we will have no input if and when any Registered Stockholder may, or may not, elect to sell their shares of Class A common stock or the prices at which any such sales may occur. See the section titled "Plan of Distribution." The number of shares of Class A common stock being registered does not represent the number of shares of Class A common stock eligible for future sale in the public market following our listing on Nasdaq. See the section titled "Shares Eligible for Future Sale."

Information concerning the Registered Stockholders may change from time to time and any changed information will be set forth in supplements to this prospectus, if and when necessary. Because the Registered Stockholders may sell all, some, or none of the shares of Class A common stock covered by this prospectus, we cannot determine the number of such shares of Class A common stock that will be sold by the Registered Stockholders, or the amount or percentage of shares of Class A common stock that will be held by the Registered Stockholders upon consummation of any particular sale. In addition, the Registered Stockholders listed in the table below may have sold, transferred or otherwise disposed of, or may sell, transfer or otherwise dispose of, at any time and from time to time, our shares of Class A common stock in transactions exempt from the registration requirements of the Securities Act, after the date on which they provided the information set forth in the table below. See "Management and Governance" and "Certain Relationships and Related Party Transactions" for further information regarding the Registered Stockholders.

We are not party to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of shares of Class A common stock by the Registered Stockholders. However, we have engaged financial advisors with respect to certain other matters relating to our listing. See the section titled "Plan of Distribution."

Beneficial ownership of shares is determined under rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power. Under those rules, beneficial ownership includes securities that the individual or entity has the right to acquire, such as through the exercise of warrants or stock options, within 60 days of the date of this prospectus. Except as noted by footnote, and subject to community property laws where applicable, we believe based on the information provided to us that the persons and entities named in the table below have sole voting and investment power with respect to all shares of our Class A common stock shown as beneficially owned by them. Unless otherwise noted below, the address of the persons and entities listed in the table is 650 Massachusetts Avenue NW, 6th Floor, Washington, District of Columbia 20001.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Class A<br> Common<br> Stock of <br> Ionic Digital<br> Beneficially<br> Owned <sup>(1)</sup>** | **Percentage of<br> Outstanding<br> Shares<br> Beneficially<br> Owned <sup>(1)</sup>** | **Shares of<br> Class A<br> Common<br> Stock<br> Being<br> Registered** |
| **Greater than 5% Stockholders** | | | |
| &nbsp;&nbsp;&nbsp;Celsius Network LLC<sup>(2)</sup> | 3947650 | 8.79% |  |
| **Named Executive Officers and Directors** |  |  |  |
| &nbsp;&nbsp;&nbsp;Elizabeth LaPuma<sup>(3)</sup> | 12458 | \* | 12458 |
| &nbsp;&nbsp;&nbsp;Michael Abbate<sup>(3)</sup> | 12458 | \* | 12458 |
| &nbsp;&nbsp;&nbsp;Thomas DiFiore<sup>(3)(4)</sup> | 63431 | \* | 63431 |
| &nbsp;&nbsp;&nbsp;Scott Duffy<sup>(3)(5)</sup> | 120877 | \* | 120877 |
| &nbsp;&nbsp;&nbsp;Scott Flanders<sup>(3)</sup> | 12458 | \* | 12458 |
| &nbsp;&nbsp;&nbsp;Oliver Wiener<sup>(3)</sup> | 12458 | \* | 12458 |
| &nbsp;&nbsp;&nbsp;Andy Stewart |  | \* |  |
| &nbsp;&nbsp;&nbsp;Laura Schnaidt |  | \* |  |
| &nbsp;&nbsp;&nbsp;Anthony McKiernan |  | \* |  |
| &nbsp;&nbsp;&nbsp;James Gallagher |  | \* |  |
| &nbsp;&nbsp;&nbsp;Directors and executive officers as a group (12 Persons) | 234140 | \* | 234140 |
| **Other Registered Stockholders** |  |  |  |
| &nbsp;&nbsp;&nbsp;Attestor Capital<sup>(6)</sup> | 3841213 | 8.38% | 3169808 |
| &nbsp;&nbsp;&nbsp;Oaktree Capital Management<sup>(7)</sup> | 3169808 | 6.92% | 3169808 |
| &nbsp;&nbsp;&nbsp;Sachem Head Capital Management<sup>(8)</sup> | 3169808 | 6.92% | 3169808 |
| &nbsp;&nbsp;&nbsp;Citadel Multi-Asset Master Fund Ltd.<sup>(9)</sup> | 792450 | 1.76% | 792450 |
| &nbsp;&nbsp;&nbsp;Funds managed by Weiss Asset Management LP<sup>(10)</sup> | 264150 | \* | 264150 |

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(1) *The percentage of Class A common stock beneficially owned by each person is based on 44,921,427 shares of Class A common stock issued and outstanding as of the date of this prospectus and assumes the conversion of all our Series A Preferred Stock into shares of our Class A common stock. Beneficial ownership representing less than one percent is denoted with an "\*."* 

(2) *The principal place of business of Celsius Network LLC is c/o The Corporation Trust Company, registered office of Celsius Network LLC, 1209 Orange Street, Wilmington, DE 19801. Shares held by Celsius Network LLC are distributed to former creditors of the Debtors as claims are resolved. Christopher Ferraro, as Plan Administrator under the Plan, has voting and investment authority over the shares. Mr. Ferraro disclaims beneficial ownership of such shares for all purposes.* 

(3) *Includes 12,458 shares of Class A common stock issuable within 60 days upon the vesting and settlement of RSUs.* 

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(4) *Consists of (i) 29,673 shares of Class A common stock held of record by THOMAS DIFIORE CHILDRENS GST INVESTMENT IRRV TR (the "Children's Trust"), (ii) 20,148 shares of Class A common stock held of record by DIFIORE ASA IRREVOCABLE GST TRUST (the "ASA Trust"), (iii) 1,099 shares of Class A common stock held of record by DIFIORE TSA IRREVOCABLE GST TRUST (the "TSA Trust"), and (iv) 53 shares of Class A common stock held of record by Ashley DiFiore, Mr. DiFiore's wife. Mr. DiFiore is the settlor/grantor, but not the trustee, of each of the THOMAS DIFIORE CHILDREN'S GST INVESTMENT IRREVOCABLE TRUST, the DIFIORE ASA IRREVOCABLE GST TRUST, and the DIFIORE TSA IRREVOCABLE GST TRUST. He has no voting or dispositive power over any shares held by these trusts. With respect to the DIFIORE TSA IRREVOCABLE GST TRUST, Mr. DiFiore is the sole beneficiary and may be deemed to have a pecuniary interest in the shares held by that trust; accordingly, he disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. With respect to the Children's Trust and the ASA Trust, Mr. DiFiore is not a beneficiary and disclaims beneficial ownership of the shares held by those trusts. The inclusion of any such shares herein shall not be construed as an admission by Mr. DiFiore that he is the beneficial owner thereof for purposes of Section 13(d) of the Exchange Act or otherwise.* 

(5) *Reported shares are held of record by ICB Solutions Inc. Mr. Duffy is the sole shareholder of ICB Solutions Inc.* 

(6) *Consists of (1) 2,264,150 shares of our Class A common stock issuable upon the conversion of Series A Preferred Stock beneficially owned by Attestor Value Master Fund LP ("Attestor"), (2) 905,658 shares of our Class A common stock issuable upon exercise of Warrants beneficially owned by Attestor in three equal tranches of 301,886 shares each, with exercise prices of $63.60 per share, $74.20 per share and $87.45 per share, and (3) 54,571 shares of our Class A common stock beneficially owned by Attestor, which are expected to be distributed to Attestor by an affiliate following our listing on Nasdaq. Attestor also has indirect economic exposure to 616,834 shares of our Class A common stock through its investments in Pharos Funds SPC managed by Lantern Ventures Ltd. which shares are expected to be distributed to Attestor following our listing on Nasdaq.* *Attestor is a Cayman Islands exempted limited partnership. Attestor Value Fund GP Limited, a Cayman Islands exempted private limited company ("Attestor GP"), serves as the sole general partner of Attestor; Attestor Capital Limited, a Cayman Islands exempted private limited company ("Attestor Capital"), serves as procurement manager to Attestor; and Attestor Limited, a private limited company registered in England and Wales ("Attestor Limited"), serves as investment manager to Attestor. Attestor Limited, as investment manager to Attestor, may be deemed to have the shared power to vote or to direct the vote of, and the shared power to dispose or direct the disposition of, the shares of Class A common stock beneficially owned by Attestor. Jan-Christoph Peters, as the sole director and sole indirect shareholder of Attestor Limited, may be deemed to have the shared power to vote or to direct the vote of, and the shared power to dispose or direct the disposition of, the shares of Class A common stock beneficially owned by Attestor.* *The principal business office of Attestor, Attestor GP and Attestor Capital is c/o Attestor Value Fund GP Limited, Ugland House, PO Box 309, Grand Cayman KY1-1104, Cayman Islands. The principal business office of Attestor Limited and Jan-Christoph Peters is 7 Seymour Street, London W1H 7JW, United Kingdom.* 

(7) *Consists of (1) 2,264,150 shares of our Class A common stock issuable upon the conversion of Series A Preferred Stock beneficially owned by Oaktree-Copley Investments, LLC ("Oaktree-Copley"), Oaktree London Liquid Value Opportunities Fund (VOF), L.P. ("Oaktree London VOF") and Oaktree Value Opportunities Fund Holdings, L.P. ("Oaktree VOF" and, together with Oaktree-Copley and Oaktree London VOF, the "Oaktree Funds"), consisting of 330,188 shares issuable upon the conversion of Series A Preferred Stock beneficially owned by Oaktree-Copley, 716,981 shares issuable upon the conversion of Series A Preferred Stock beneficially owned by Oaktree London VOF and 1,216,981 shares issuable upon the conversion of Series A Preferred Stock beneficially owned by Oaktree VOF, and (2) 905,658 shares of our Class A common stock issuable upon exercise of Warrants beneficially owned by the Oaktree Funds in three equal tranches of 301,886 shares each, with exercise prices of $63.60 per share, $74.20 per share and $87.45 per share.* **  *The sole manager of Oaktree-Copley is Oaktree Capital Management, L.P. ("Oaktree Capital Management"). Oaktree Capital Management, as sole manager of Oaktree-Copley, may be deemed to have the shared power to vote or to direct the vote of, and the shared power to dispose or direct the disposition of, the shares of Class A common stock beneficially owned by Oaktree-Copley. The sole general partner of Oaktree Capital Management is Oaktree Capital Management GP, LLC ("Oaktree Capital Management GP"). The sole managing member of Oaktree Capital Management GP is Oaktree Capital Holdings, LLC ("Oaktree Capital Holdings"). Oaktree Capital Holdings is governed and controlled by its eleven-member board of directors. Each of the foregoing general partners, managing members and directors disclaims beneficial ownership of the securities, except to the extent of its or their pecuniary interest therein.* **  *The general partner of Oaktree London VOF is Oaktree London Liquid Value Opportunities Fund (VOF) GP, L.P. ("Oaktree London VOF GP"). The general partner of Oaktree London VOF GP is Oaktree London Liquid Value Opportunities GP Ltd. ("Oaktree London VOF GP Ltd."). Oaktree Capital Management serves as director of Oaktree London VOF GP Ltd. Oaktree London VOF GP, as general partner of Oaktree London VOF, Oaktree London VOF GP Ltd., as general partner of Oaktree London VOF GP, and Oaktree Capital Management, as director of Oaktree London VOF GP Ltd., may be deemed to have the shared power to vote or to direct the vote of, and the shared power to dispose or direct the disposition of, the shares of Class A common stock beneficially owned by Oaktree London VOF. The sole general partner of Oaktree Capital Management is Oaktree Capital Management GP. The sole managing member of Oaktree Capital Management GP is Oaktree Capital Holdings. Oaktree Capital Holdings is governed and controlled by its eleven-member board of directors. Each of the foregoing general partners, managing members, directors and controlling persons disclaims beneficial ownership of the securities, except to the extent of its or their pecuniary interest therein.* **  *The sole general partner of Oaktree VOF is Oaktree Value Opportunities Fund GP, L.P. ("Oaktree VOF GP"). The sole general partner of Oaktree VOF GP is Oaktree Value Opportunities Fund GP Ltd. ("Oaktree VOF GP Ltd."). The director of Oaktree VOF GP Ltd. is Oaktree Capital Management. Oaktree VOF GP, as general partner of Oaktree VOF, Oaktree VOF GP Ltd., as general partner of Oaktree VOF GP, and Oaktree Capital Management, as director of Oaktree VOF GP Ltd., may be deemed to have the shared power to vote or to direct the vote of, and the shared power to dispose or direct the disposition of, the shares of Class A common stock beneficially owned by Oaktree VOF. The sole general partner of Oaktree Capital Management is Oaktree Capital Management GP. The sole managing member of Oaktree Capital Management GP is Oaktree Capital Holdings. Oaktree Capital Holdings is governed and controlled by its eleven-member board of directors. Each of the foregoing general partners, managing members and directors disclaims beneficial ownership of the securities, except to the extent of its or their pecuniary interest therein.* **  *The business address of each of the foregoing is 333 South Grand Avenue, 28th Floor, Los Angeles, CA 90071.* 

(8) *Consists of (1) 2,264,150 shares of our Class A common stock issuable upon the conversion of Series A Preferred Stock held by Sachem Head LP, Sachem Head Master LP and SH Stony Creek Master Ltd. (collectively, the "Sachem Head Funds"), consisting of 899,500 shares issuable upon the conversion of Series A Preferred Stock held by Sachem Head LP, 695,800 shares issuable upon the conversion of Series A Preferred Stock held by Sachem Head Master LP and 668,850 shares issuable upon the conversion of Series A Preferred Stock held by SH Stony Creek Master Ltd., and (2) 905,658 shares of our Class A common stock issuable upon exercise of Warrants held by the Sachem Head Funds in three equal tranches of 301,886 shares each, with exercise prices of $63.60 per share, $74.20 per share and $87.45 per share.* **  *Sachem Head Capital Management LP ("SHCM"), as the investment adviser to the Sachem Head Funds, may be deemed to have the shared power to vote or to direct the vote of (and the shared power to dispose or direct the disposition of) the shares of Class A common stock held by the Sachem Head Funds. As the general partner of SHCM, Uncas GP LLC ("Uncas") may be deemed to have the shared power to vote or to direct the vote of (and the shared power to dispose or direct the disposition of) the shares of Class A common stock held by the Sachem Head Funds. As the general partner of Sachem Head LP and Sachem Head Master LP, Sachem Head GP LLC ("Sachem Head GP") may be deemed to have the shared power to vote or to direct the vote of (and the shared power to dispose or direct the disposition of) the shares of Class A common stock held by Sachem Head LP and Sachem Head Master LP. By virtue of Scott D. Ferguson's position as the managing partner of SHCM and the managing member of Uncas and Sachem Head GP, Scott D. Ferguson may be deemed to have the shared power to vote or to direct the vote of (and the shared power to dispose or direct the disposition of) the shares of Class A common stock held by the Sachem Head Funds.* **  *The business address of each of the Sachem Head Funds is c/o Sachem Head Capital Management LP, 250 West 55th Street, 34th Floor, New York, NY 10019.* 

(9) *Consists of (i) 566,037 shares of our Class A common stock issuable upon the conversion of Series A Preferred Stock held by Citadel Multi-Asset Master Fund Ltd. ("CMAM") and (ii) 226,413 shares of our Class A common stock issuable upon exercise of Warrants held by CMAM in three equal tranches of 75,471 shares each, with exercise prices of $63.60 per share, $74.20 per share and $87.45 per share. Citadel Advisors LLC ("Citadel Advisors") is the portfolio manager of CMAM. Citadel Advisors Holdings LP ("CAH") is the sole member of Citadel Advisors. Citadel GP LLC ("CGP") is the general partner of CAH. Kenneth Griffin owns a controlling interest in CGP. Mr. Griffin, as the owner of a controlling interest in CGP, may be deemed to have shared power to vote or direct the vote of, and/or shared power to dispose or to direct the disposition of, the shares held by CMAM. This response is not and shall not be construed as an admission that Mr. Griffin or any of the Citadel related entities listed above is the beneficial owner of any securities of the Company other than the securities actually owned by such person (if any). The address of CMAM is c/o Citadel Enterprise Americas, 830 Brickell Plaza, Floor 15, Miami, FL 33131.* 

(10) *Consists of (i) 113,207 shares of Class A common stock issuable upon the conversion of Series A Preferred Stock held by Brookdale Global Opportunity Fund ("BGO"), (ii) 75,472 shares of Class A common stock issuable upon the conversion of Series A Preferred Stock held by Brookdale International Partners, L.P. ("BIP"), (iii) 45,282 shares of Class A common stock issuable upon exercise of Warrants held by BGO in three equal tranches with exercise prices of $63.60 per share, $74.20 per share and $87.45 per share, and (iv) 30,189 shares of Class A common stock issuable upon exercise of Warrants held by BIP in three equal tranches with exercise prices of $63.60 per share, $74.20 per share and $87.45 per share. Andrew Weiss is the Manager of WAM GP LLC, which is the general partner of Weiss Asset Management LP, the investment manager of BGO and BIP. WAM GP LLC is also the Manager of BIP GP LLC, the general partner of BIP. Mr. Weiss has voting and dispositive power with respect to the securities held by BGO and BIP. Mr. Weiss, WAM GP LLC, Weiss Asset Management LP and BIP GP LLC each disclaim beneficial ownership of the shares held by BGO and BIP, except to the extent of their respective pecuniary interests therein. The business address of the foregoing entities is c/o Weiss Asset Management, 222 Berkeley Street, 16th Floor, Boston, MA 02116.* 

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**SALE PRICE HISTORY OF OUR SECURITIES**

We have applied to list our Class A common stock on Nasdaq. Prior to the listing of our Class A common stock on Nasdaq, there has been no public market for our Class A common stock. Our Class A common stock has a limited history of sales in private transactions.

On June 26, 2026, we sold, in a private placement transaction (the "Private Placement") pursuant to securities purchase agreements (the "Securities Purchase Agreements"), an aggregate of (i) 7,547,166 shares of Series A convertible preferred stock, par value $0.00001 per share (the "Series A Preferred Stock"), at a price of $53.00 per share, (ii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $63.60 per share, (iii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $74.20 per share, and (iv) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $87.45 per share (the warrants described in clauses (ii) through (iv), collectively, the "Warrants") to certain institutional accredited investors (the "Investors") for an aggregate purchase price of $400.0 million before an estimated $16.8 million in transaction fees.

The Series A Preferred Stock is convertible into Class A common stock (i) at the option of the holder and (ii) automatically in the event we complete our listing on Nasdaq or another national securities exchange, complete a merger or other transaction that results in our or the surviving company's common equity being listed on Nasdaq or another national securities exchange, or complete a firm commitment underwritten public offering of our Class A common stock. The Investors have agreed that they will not transfer or otherwise dispose of the Series A Preferred Stock, the Class A common stock issued upon conversion of the Series A Preferred Stock, the Warrants, or the shares of Class A common stock issuable upon exercise of the Warrants at a price of less than $70.00 per share until six months after our securities are first listed on Nasdaq or another national securities exchange (the "Lock-Up"). With respect to 2% of each tranche of the Warrants, no Lock-Up applies.

The issuances of securities by us in the Private Placement were negotiated directly with the Investors and were not the result of a competitive price discovery process.

As the Private Placement was privately negotiated and involved a limited number of Investors, it does not reflect an established trading market for our Class A common stock, and the prices paid in the Private Placement may not be indicative of the fair value of our Class A common stock.

This information may have little or no relation to broader market demand for our Class A common stock and thus the opening public price and subsequent public price of our Class A common stock on Nasdaq. As a result, you should not place undue reliance on these historical private sale prices as they may differ materially from the opening public price and subsequent public price of our Class A common stock on Nasdaq. See the section entitled "Risk Factors — The public price of our shares of Class A common stock upon listing on Nasdaq may have little or no relationship to the historical sales prices of our securities in private transactions."

In June 2026, we also issued 40,000 shares of Series Z Preferred Stock for an aggregate of $0.40 in proceeds. The shares of Series Z Preferred Stock have 1,000 votes per share of Series Z Preferred Stock, but do not have any economic rights with respect to dividends, liquidation or otherwise. The holder of the Series Z Preferred Stock has agreed that it will vote such stock in the same proportion as votes cast by holders of the Class A common stock on any matter submitted to stockholders at our 2026 annual meeting of stockholders. The shares of Series Z Preferred Stock are not included in the pro forma adjustments above due to immateriality. The shares of Series Z Preferred Stock will be automatically redeemed for $0.40 in the aggregate following the conclusion of our 2026 annual meeting of stockholders, which is scheduled to occur on July 13, 2026. The Series Z Preferred Stock is intended to ensure the presence of a quorum to conduct an annual meeting of stockholders within the time period required by Delaware law.

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**SHARES ELIGIBLE FOR FUTURE SALE**

Future issuances or sales of substantial amounts of our Class A common stock in the public market, or the perception that such issuances or resales may occur, could adversely affect the prevailing market price of our Class A common stock. No prediction can be made as to the effect, if any, future issuances or resales of shares, or the availability of shares for future sales, will have on the market price of our Class A common stock prevailing from time to time.

As of March 31, 2026, we had a total of 37,374,261 shares of Class A common stock issued and outstanding. Assuming the conversion of all our shares of Series A Preferred Stock into shares of our Class A common stock, we would have had a total of 44,921,427 shares of Class A common stock issued and outstanding as of the date of this prospectus. Our outstanding shares of Class A common stock are freely tradable without restriction or further registration under the Securities Act, except that any shares held by any affiliates, as that term is defined under Rule 144 of the Securities Act, will be considered control securities and may be sold only in compliance with the limitations described below. The Series A Preferred Stock, the shares of Class A common stock issuable upon conversion of the Series A Preferred Stock, the Warrants and the shares of Class A common stock issuable upon exercise of the Warrants are "restricted securities," as defined under Rule 144 of the Securities Act.

**Market Information** 

Currently, there is no public market for our Class A common stock and there has been a limited history of sales of shares of our Class A common stock in private transactions. The purchase price of our shares of Series A Preferred Stock and Warrants in the Private Placement, the only historical private transaction relating to our securities, may have little or no relation to the opening public price of shares of our Class A common stock on Nasdaq or the subsequent trading price of shares of our Class A common stock on Nasdaq. See "Sale Price History of Our Securities" for more information.

We have applied to list our Class A common stock on the Nasdaq Global Select Market under the symbol "IOND." As of the date of this prospectus, our Class A common stock was held by approximately 82,000 stockholders of record. Such numbers do not include beneficial owners holding our securities through nominee names.

The Registered Stockholders may offer and sell, from time to time, any or all of the shares of Class A common stock being offered for resale by this prospectus, pursuant to a direct listing on the Nasdaq Global Select Market. All shares held by, or issuable to, the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement, subject to the Lock-Up under the Securities Purchase Agreements. In addition, the remaining issued and outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act, including Section 1145 of the Bankruptcy Code and Rule 144 under the Securities Act. The resale of the shares of Class A common stock by the Registered Stockholders is not being underwritten by any investment bank, which makes this listing different from an underwritten initial public offering.

**Shares of Class A Common Stock Issued at the Plan Effective Date Eligible for Future Sale**

Pursuant to Section 1145 of the Bankruptcy Code, except as noted below, the registration, issuance and distribution of our Class A common stock issued in connection with the satisfaction, settlement, release, and discharge of allowed claims pursuant to the Plan (as defined in the section titled, "Business—History") is exempt from, among other things, the registration requirements of Section 5 of the Securities Act and any other applicable U.S. state or local law requiring registration prior to the registration, issuance, distribution or sale of securities. The shares of our Class A common stock issued in reliance on Section 1145 of the Bankruptcy Code are not "restricted securities" as defined in Rule 144(a)(3) under the Securities Act, and are freely tradable and transferable by any initial recipient thereof that (i) is not an "affiliate" of ours as defined in Rule 144(a)(1) under the Securities Act, (ii) has not been such an "affiliate" within 90 days of such transfer, and (iii) is not an entity that is an "underwriter" as defined in Section 1145(b) of the Bankruptcy Code.

Section 1145(b)(1) of the Bankruptcy Code defines an "underwriter" as any person who:

● purchases a claim against, an interest in, or a claim for an administrative expense against the debtor, if that purchase is with a view to distributing any security received in exchange for such a claim or interest;

● offers to sell securities offered under a plan of reorganization for the holders of those securities;

● offers to buy those securities from the holders of the securities, if the offer to buy is (i) with a view to distributing those securities; and (ii) under an agreement made in connection with the plan of reorganization, the completion of the plan of reorganization, or with the offer or sale of securities under the plan of reorganization; or

● is an issuer with respect to the securities, as the term "issuer" is defined in section 2(a)(11) of the Securities Act.

To the extent that persons who received Class A common stock issued under the Plan that are exempt from registration under the Securities Act or other applicable law by Section 1145 of the Bankruptcy Code are deemed to be "underwriters," resales by those persons would not be exempted from registration under the Securities Act or other applicable law by Section 1145 of the Bankruptcy Code and may only be sold pursuant to a registration statement or pursuant to exemption therefrom, such as the exemption provided by Rule 144 under the Securities Act.

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Whether or not any particular person would be deemed an "underwriter" with respect to our Class A common stock received pursuant to the Plan would depend upon various facts and circumstances applicable to that person. Accordingly, we express no view as to whether any particular person that will receive our Class A common stock pursuant to the Plan will be deemed an "underwriter" with respect to such shares.

**Securities Authorized for Issuance under Equity Compensation Plan** 

On the Plan Effective Date, the Company adopted the Omnibus Plan, pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other share-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. As of June 15, 2026, the Company has reserved approximately 5,551,944 shares (subject to an evergreen) under the Omnibus Plan.

**Rule 144**

***Affiliate Resales***

In general, a person who is an affiliate of ours, or who was an affiliate at any time during the 90 days before a sale, would be entitled to sell in "broker's transactions" or certain "riskless principal transactions" or to market makers, a number of shares within any three-month period that does not exceed the greater of:

● 1% of the number of shares of our Class A common stock then outstanding, which will equal approximately 373,742 shares upon the effectiveness of the registration statement of which this prospectus forms a part; or

● the average weekly trading volume in our common stock on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

***Non-Affiliate Resales***

In general, a person who is not an affiliate of ours at the time of sale, or has not been an affiliate at any time during the three months preceding a sale, is entitled to sell such shares subject only to the availability of current public information about us. If such person has held our shares for at least one year, such person can resell under Rule 144(b)(1) without regard to any Rule 144 restrictions, including the 90-day public company requirement and the current public information requirement.

Non-affiliate resales are not subject to the manner of sale, volume limitation or notice filing provisions of Rule 144.

**Rule 701**

In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchases shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of a registration statement under the Securities Act is entitled to sell such shares 90 days after such effective date in reliance on Rule 144. Securities issued in reliance on Rule 701 are restricted securities and, subject to the contractual restrictions described above, beginning 90 days after the date of this prospectus, may be sold by persons other than "affiliates," as defined in Rule 144, subject only to the manner of sale provisions of Rule 144 and by "affiliates" under Rule 144 without compliance with its one-year minimum holding period requirement.

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**DESCRIPTION OF CAPITAL STOCK**

*The following summary of the material terms of our securities is not intended to be a complete summary of the rights and preferences of such securities, and is qualified by reference to the amended and restated certificate of incorporation (for purposes of this section, the "Certificate of Incorporation") and the amended and restated bylaws (for purposes of this section, the "Bylaws" and together with the Certificate of Incorporation, the "Governing Documents") which are exhibits to the registration statement of which this prospectus is a part. We urge you to read each of the Certificate of Incorporation and the Bylaws in their entirety for a complete description of the rights and preferences of our securities.* 

**General**

The total amount of our authorized capital stock consists of 1,000,000,000 shares of Class A common stock, $0.00001 par value per share, one share of Class B common stock, $1.00 par value per share, and 15,000,000 shares of preferred stock, $0.00001 par value per share (the "preferred stock").

**Common Stock**

We have two classes of authorized common stock: Class A common stock and Class B common stock.

*Voting Rights*

 

Except as otherwise provided, holders of our Class A common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders.

The holders of Class A common stock will not have cumulative voting rights. Accordingly, holders of a majority of the voting power of the shares of Class A common stock entitled to vote in any election of directors may elect all of the directors standing for election. The election of directors will be determined by a plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting and entitled to vote, meaning that the nominees with the greatest number of votes cast, even if less than a majority, will be elected.

The rights, preferences and privileges of holders of common stock are subject to, and may be impacted by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

In connection with the termination of the Mining MSA, we redeemed the sole authorized and outstanding share of Class B common stock for $1.00. The Class B common stock may not be reissued.

*No Preemptive or Similar Rights*

 

Our common stock is not entitled to preemptive or other similar subscription rights to purchase any of our securities. Our Class A common stock is neither convertible nor redeemable, and our Class B common stock was not convertible. Unless our Board determines otherwise, we will issue all of our capital stock in uncertificated form.

*Dividends and Distributions*

 

Subject to the preferential or other rights that may be applicable to any then-outstanding preferred stock, holders of our Class A common stock are entitled to receive ratably those dividends and distributions, if any, as may be declared by the Board out of legally available funds. The Class B common stock was not entitled to dividends or other distributions.

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*Liquidation, Dissolution and Winding Up*

 

In the event of our liquidation, dissolution or winding up, the holders of Class A common stock are entitled to receive proportionately our net assets available for distribution to stockholders after payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. While the Class B common stock was outstanding, the holder of Class B common stock was not entitled to receive any assets in respect of such share.

*Transfer Restrictions*

 

Until the later of (i) effectiveness of a registration statement filed by us with the SEC under the Exchange Act or (ii) the listing of the Class A common stock on Nasdaq or another registered securities exchange, the Class A common stock may not be sold, transferred, pledged or otherwise disposed of without written authorization from the Board. Board authorization is not required for transfers of shares of Class A common stock required by law or upon the death or disability of a holder, but the transfer restrictions will continue to apply to such shares. We expect the Board to authorize the removal of such transfer restrictions in connection with the effectiveness of the registration statement of which this prospectus forms a part and the listing of our shares of Class A common stock on Nasdaq.

Prior to its redemption, the Class B common stock share was not permitted to be sold, transferred, pledged or otherwise disposed of to any person other than to a successor by way of merger or consolidation of Ionic Digital (or pursuant to a redemption by us).

*Assessment*

 

All shares of common stock were, or will be, when issued, duly authorized, fully paid and nonassessable. The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

**Preferred Stock**

Our Board has the authority to issue shares of preferred stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series and to fix the designation, vesting, powers, preferences and relative, participating, optional or other special rights of preferred stock, including voting powers, dividend rights, liquidation rights, redemption rights and conversion rights and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the DGCL. The issuance of our preferred stock could have the effect of decreasing the trading price of our Class A common stock, restricting dividends on our Class A common stock, diluting the voting power of our Class A common stock, impairing the liquidation rights of our capital stock, or delaying or preventing a change in control of our Company.

*Series A Preferred Stock*

In connection with the Private Placement, the Board of Directors adopted the Certificate of Designation of Series A Convertible Preferred Stock, creating the Series A Preferred Stock. As discussed under "—*Conversion—Mandatory Conversion*" below, upon completion of the direct listing to which this prospectus relates, each share of Series A Preferred Stock will automatically convert into Class A common stock at a rate equal to the Stated Value, divided by the then-applicable conversion price.

<u>Dividends</u>***:*** Until January 15, 2027, the Series A Preferred Stock is entitled to participate in dividends with the common stock on an as-converted to common stock basis when, as and if dividends are declared by the Board of Directors. Beginning on January 15, 2027, the Series A Preferred Stock will accrue dividends daily at the initial rate of 12% per annum of the Stated Value, increasing by 50 basis points for each full calendar year that elapses after January 15, 2027 while the Series A Preferred Stock is outstanding. Such dividends will be paid quarterly on the last day of each fiscal quarter.

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<u>Liquidation Preference</u>: Upon any liquidation or deemed liquidation event, the holders of Series A Preferred Stock will be entitled to receive out of the available proceeds, before any distribution is made to holders of common stock or any other junior securities, an amount per share equal to the greater of (i) 100% of the Stated Value (as defined in the Series A Preferred Stock Certificate of Designation) or (ii) such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into Class A common stock immediately prior to the liquidation event, subject to a minimum return (taking into account dividends, liquidation and other payments) of 150% of Stated Value.

<u>Voting</u>*:* The Series A Preferred Stock will (i) vote together with the common stock as a single class, except as required by law and (ii) as noted below under "—*Protective Provisions*". Each holder of Series A Preferred Stock shall be entitled to cast the number of votes equal to the number of shares of common stock into which the shares of Series A Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter.

<u>Protective Provisions:</u> For as long as any shares of Series A Preferred Stock are outstanding, we shall not, without the affirmative vote or action by written consent of holders of more than 67% of the issued and outstanding shares of Series A Preferred Stock (the "Requisite Holders"), create or authorize the creation of or issue any other security convertible into or exercisable for any equity security unless such security ranks junior to the Series A Preferred Stock with respect to its rights, preferences and privileges, increase the authorized number of shares of Series A Preferred Stock or issue additional shares of Series A Preferred Stock.

In addition, beginning on January 15, 2027, for as long as any shares of Series A Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote or action by written consent of the Requisite Holders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) issue any new, reclassify any existing equity securities into, or issue any equity securities convertible into, equity securities of the Company, unless the proceeds are used to redeem all outstanding shares of Series A Preferred Stock in full in cash pursuant to the Series A Preferred Stock Certificate of Designation or such equity securities are issued to employees or directors of, or consultants or advisors to, the Company or any of its subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors prior to the date of the Private Placement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) issue any new, reclassify any existing equity securities into, issue any equity securities convertible into or issue or transfer any equity securities of, or convertible into, equity securities of any subsidiary of the Company, other than to the Company or a wholly owned subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase or redeem, or pay or declare any dividend or make any distribution on, any shares of capital stock other than (i) redemptions of or dividends on the Series A Preferred Stock, (ii) dividends or other distributions payable solely in the form of additional shares of common stock or (iii) repurchases of stock from former employees, officers, directors, consultants or other persons who performed services for the Company or any of its subsidiaries in connection with the cessation of such employment or service at no greater than the original purchase price thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) guarantee, assume, incur, create, finance, refinance or otherwise become liable for any indebtedness in excess of $50,000,000, other than in connection with any ordinary or customary trade payables, or grant or permit to exist any lien securing indebtedness for borrowed money other than any indebtedness permitted pursuant to the foregoing provisions of this paragraph;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquire any assets or equity securities of a third party or dispose of any assets or equity securities (by purchase, merger, joint venture, partnership, consolidation, dissolution, liquidation, tender offer, exchange offer, recapitalization, reorganization, share exchange, business combination or similar transaction) in a transaction having a purchase price greater than $50,000,000 in any single transaction or $100,000,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) enter into or effect any merger, consolidation, other sale event, voluntary liquidation, dissolution or winding-up of the Company or any of its subsidiaries;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) enter into, amend or modify any transaction between the Company or any of its subsidiaries, on the one hand, and any of their respective affiliates, on the other hand, or any transaction involving the Company or any of its subsidiaries, on the one hand, and any person in which an affiliate of the Company or any of its subsidiaries shall have a direct or indirect material financial interest, on the other hand (each, an "Interested Transaction"), other than any Interested Transaction on terms that are not less favorable to the Company or its subsidiaries than would be obtained in a transaction negotiated at arm's length with an unrelated third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) materially change the Company's or any of its subsidiaries' existing lines of business, enter into any new line of business or engage in any business outside the scope of the existing business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) agree to do any of the foregoing or approve or direct the Company or any of its subsidiaries to take any of the foregoing actions.

<u>Conversion</u>:

*Optional Conversion***:** Each share of Series A Preferred Stock will be convertible into Class A common stock at any time at the option of the holder at a rate equal to the Stated Value, divided by the then-applicable conversion price.

*Mandatory Conversion***:** Upon completion of the direct listing to which this prospectus relates, each share of Series A Preferred Stock will automatically convert into Class A common stock at a rate equal to the Stated Value, divided by the then-applicable conversion price.

*Maturity Conversion*: In the event that any shares of Series A Preferred Stock remain outstanding as of June 26, 2028, each share of Series A Preferred Stock will be convertible into Class A common stock at any time at the option of the holder at a rate equal to a fraction, (a) the numerator of which is an amount equal to the greater of (i) the Stated Value and (ii) the product of (A) $53.00 multiplied by (B) 1.5, and (b) the denominator of which is the lesser of (i) the then-applicable conversion price and (ii) the fair market value of a share of Class A common stock as determined pursuant to the Series A Preferred Stock Certificate of Designation.

*Conversion Price***:** The conversion price will initially be $53.00, subject to adjustments for stock dividends, splits, combinations and similar events and customary broad-based weighted average anti-dilution adjustments, including with respect to future issuances or sales of common stock at prices less than the conversion price per share then in effect.

*Put Rights:* Unless prohibited by applicable law governing distributions to stockholders, the Series A Preferred Stock shall be redeemable at the option of the Requisite Holders commencing any time after June 26, 2028 an amount per share equal to the greater of (i) 100% of the Stated Value (as defined in the Series A Preferred Stock Certificate of Designation) or (ii) such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into Class A common stock immediately prior to the liquidation event, subject to a minimum return (taking into account dividends, liquidation and other payments) of 150% of Stated Value.

*Series Z Preferred Stock*

In June 2026, we also issued 40,000 shares of Series Z Preferred Stock for an aggregate of $0.40 in proceeds. The shares of Series Z Preferred Stock have 1,000 votes per share of Series Z Preferred Stock, but do not have any economic rights with respect to dividends, liquidation or otherwise. The holder of the Series Z Preferred Stock has agreed that it will vote such stock in the same proportion as votes cast by holders of the Class A common stock on any matter submitted to stockholders at our 2026 annual meeting of stockholders. The shares of Series Z Preferred Stock are not included in the pro forma adjustments above due to immateriality. The shares of Series Z Preferred Stock will be automatically redeemed for $0.40 in the aggregate following the conclusion of our 2026 annual meeting of stockholders, which is scheduled to occur on July 13, 2026. The Series Z Preferred Stock is intended to ensure the presence of a quorum to conduct an annual meeting of stockholders within the time period required by Delaware law.

**Warrants**

We issued the Warrants in the Private Placement on June 26, 2026. The Warrants consist of three tranches, the first tranche are warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $63.60 per share, the second tranche are warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $74.20 per share, and the third tranche are warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $87.45 per share, subject to adjustment. The Warrants are immediately exercisable upon issuance at Closing and expire five years from the date of the Private Placement. The exercise price of each Warrant is subject to adjustments for stock dividends, splits, combinations and similar events.

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The Warrants are only exercisable for cash, except in the event of a change of control transaction. In the event of a change in control transaction, the Warrants may be exercised on a cashless basis. To exercise on a cashless basis, the holder of the Warrant would pay the exercise price by surrendering the Warrant (or part thereof) for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the Warrant, multiplied by (y) the excess of the fair market value (calculated in accordance with the Warrant) over the lesser of (i) the exercise price then in effect and (ii) the Black Scholes Adjusted Exercise Price (as defined in the Warrants). Alternatively, upon the occurrence of a change of control event in which the consideration is paid or payable solely in cash, the holder of a Warrant may elect to be paid cash in an amount per Exercise Share equal to the greater of (i) the excess, if any, of the consideration (calculated on a per share of Class A common stock basis that is to be paid to the holders of Class A common stock as of immediately prior to such closing or to the Company or any of its subsidiaries (the "Sale Price") over the exercise price (as adjusted to the date of such calculation) and (ii) the Black Scholes Value Per Share (as defined in the Warrants), and thereafter, all unexercised Warrants (or, if only a portion of any Warrant is unexercised, the portion of such Warrant that is unexercised) outstanding immediately prior to the closing of such change of control transaction shall automatically, and without any action on the part of the Holder, be cancelled and terminated for no consideration as of immediately prior to (and contingent upon the consummation of) such transaction.

The holders of Warrants will not have the rights or privileges of holders of shares of stock or any voting rights in respect of the Warrants or underlying shares of Class A common stock until they exercise their Warrants and receive shares of Class A common stock.

**Lock-Up**

The Investors have agreed that they will not transfer or otherwise dispose of the Series A Preferred Stock, the Class A common stock issued upon conversion of the Series A Preferred Stock, the Warrants, or the shares of Class A common stock issuable upon exercise of the Warrants at a price of less than $70.00 per share until six months after our securities are first listed on Nasdaq or another national securities exchange. With respect to 2% of each tranche of the Warrants, no Lock-Up applies.

**Registration Rights**

In connection with the Private Placement, the Company and the Investors entered into a registration rights agreement pursuant to which the Company agreed to file a registration statement with the SEC on or prior to the 60th calendar day following the Closing Date for purposes of registering the resale of the shares issuable upon conversion of the Series A Preferred Stock and exercise of the Warrants and the Warrants (the "Resale Registration Statement"), to use reasonable best efforts to have such Resale Registration Statement declared effective within the time period set forth in the registration rights agreement, and to keep the Registration Statement effective until the date that all registrable securities covered by the Registration Statement have been sold thereunder or pursuant to Rule 144. The Investors are entitled to make up to four demands that we register such securities. In addition, the holders have certain "piggy-back" registration rights. We will bear the expenses incurred in connection with the filing of any such registration statements. A copy of the registration rights agreement is filed as an exhibit to the registration statement of which this prospectus is part.

**Anti-Takeover Effects of Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws**

Our amended and restated certificate of incorporation and our amended and restated bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our Board or management team, including the following:

*Advance Notice Requirements for Stockholder Proposals*

 

Our Certificate of Incorporation and our Bylaws require advance notice procedures for stockholder proposals to be brought before an annual meeting or special meeting of the stockholders, including the nomination of directors. Stockholders at an annual meeting or special meeting may only consider the proposals specified in the notice of meeting or brought before the meeting by or at the direction of the Board or by a stockholder of record on the record date for the meeting who is entitled to vote at the meeting and who has delivered a timely written notice in proper form to our secretary of the stockholder's intention to bring such business before the meeting.

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*Amendment to Certificate of Incorporation and Bylaws*

 

The DGCL provides generally that the affirmative vote of a majority of the outstanding stock entitled to vote on amendments to a corporation's certificate of incorporation or bylaws is required to approve such amendment, unless a corporation's certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Our amended and restated bylaws may be amended, altered, or repealed by a majority vote of our Board.

*Board Vacancies*

 

Our amended and restated certificate of incorporation and amended and restated bylaws authorize only our Board to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our Board will be permitted to be set only by a resolution adopted by a majority vote of our entire Board. These provisions would prevent a stockholder from increasing the size of our Board and then gaining control of our Board by filling the resulting vacancies with its own nominees. This will make it more difficult to change the composition of our Board and will promote continuity of management.

*Classified Board*

 

Our amended and restated certificate of incorporation and amended and restated bylaws provide that our Board of Directors will be classified into three classes of directors with staggered three-year terms. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified Board of Directors. See the section titled "Corporate Governance— Composition of the Board of Directors Board Composition and Structure" herein.

*Delaware Anti-Takeover Statute*

 

Section 203 of the DGCL prohibits a publicly held Delaware corporation from engaging in a business combination transaction with an interested stockholder (a stockholder who purchases more than 15% of our common stock) for a period of three years after the interested stockholder became such unless the transaction fits within an applicable exemption, such as board approval of the business combination or the transaction that resulted in such stockholder becoming an interested stockholder. These provisions apply even if the business combination could be considered beneficial by some stockholders and may have the effect of delaying, deferring or preventing a change in control. A Delaware corporation may elect in its certificate of incorporation or bylaws not to be governed by this particular Delaware law.

Under our amended and restated certificate of incorporation, we opted out of Section 203 of the DGCL and therefore are not subject to Section 203.

*Stockholder Action; Special Meeting of Stockholders*

 

Our amended and restated certificate of incorporation provides that our stockholders are not able to take action by written consent for any matter and may only take action at annual or special meetings. 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, unless previously approved by our Board. Our amended and restated certificate of incorporation further provides that special meetings of our stockholders may be called only by the chair of our Board, by the Board acting pursuant to a resolution adopted by a majority of the directors then in office or by holders of at least 25% of the outstanding voting stock entitled to vote that have delivered a request to our secretary, thus limiting the ability of a stockholder to call 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.

**Limitations on Liability and Indemnification of Officers and Directors**

Our amended and restated certificate of incorporation limits the liability of our directors to the fullest extent permitted by the DGCL, and our amended and restated bylaws provide that we indemnify them to the fullest extent permitted by such law. We entered into indemnification agreements with our current directors and executive officers prior to the completion of this registration and expect to enter into a similar agreement with any new directors or executive officers.

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Our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (a) any derivative action, suit or proceeding brought on behalf of the Company; (b) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed or allegedly owed by, or other wrongdoing by, any director, officer, stockholder, employee or agent of the Company to the Company or the Company's stockholders; (c) any action, suit or proceeding asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company arising pursuant to any provision of the DGCL, the amended and restated certificate of incorporation or the amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; (d) any action, suit or proceeding to interpret, apply, enforce or determine the validity of the amended and restated certificate of incorporation or the amended and restated bylaws; (e) any action asserting a claim against the Company or any director, officer, stockholder, employee or agent of the Company governed by the internal affairs doctrine; or (f) any other action, suit or proceeding asserting an "internal corporate claim" as defined in Section 115 of the DGCL.

We note that there is uncertainty as to whether a court would enforce the provision and that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. Although we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.

**Transfer Agent and Registrar**

The transfer agent and registrar for our Class A common stock is Odyssey Transfer and Trust Company.

**Listing**

We have applied to list our Class A common stock on the Nasdaq Global Select Market under the symbol "IOND."

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**PLAN OF DISTRIBUTION**

The Registered Stockholders and their pledgees, donees, transferees, assignees, or other successors-in-interest may sell their shares of Class A common stock covered hereby pursuant to brokerage transactions on the Nasdaq Global Select Market or any other public exchange or registered alternative trading system at prevailing market prices at any time after the shares of Class A common stock are listed for trading thereon. All shares held by the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements. In addition, the remaining issued and outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act.

We are not party to any arrangement with any registered stockholder or any broker-dealer with respect to sales of shares of Class A common stock by the registered stockholders, except we will engage financial advisors with respect to certain other matters relating to our listing, as further described below. As such, we do not anticipate receiving any notice as to if and when any Registered Stockholder may elect to sell their shares of Class A common stock or the prices at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of the shares of Class A common stock covered by this prospectus.

We will not receive any proceeds from the sale of shares of Class A common stock by the Registered Stockholders. Upon any exercise of the Warrants by payment of cash, however, we will receive the exercise price of the Warrants. We expect to recognize certain non-recurring costs as part of our transition to a publicly-traded company, consisting of professional fees and other expenses. As part of our direct listing, these fees will be expensed in the period incurred and not deducted from net proceeds to the issuer as they would be in an initial public offering.

We have engaged J.P. Morgan, Jefferies and BTIG, as our financial advisors to advise and assist us with respect to certain matters relating to our listing. These matters include assisting us in defining our objectives with respect to the filing of the registration statement of which this prospectus forms a part, our preparation of the registration statement of which this prospectus forms a part, our preparation of investor communications and presentations in connection with investor education, and being available to consult with Nasdaq, including on the day that our shares of Class A common stock are initially listed on the Nasdaq Global Select Market.

In addition, J.P. Morgan will determine when our shares of Class A common stock are ready to trade and to approve proceeding with the opening of trading at the current reference price (as defined below). However, the financial advisors have not been engaged to participate in investor meetings or to otherwise facilitate or coordinate price discovery activities or sales of our Class A common stock in consultation with us, except as described herein.

On the day that our shares of Class A common stock are initially listed on the Nasdaq Global Select Market, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative current reference price on the basis of such accepted orders. During a 10-minute "Display Only" period, market participants may enter quotes and orders in Class A common stock in Nasdaq's systems and such information is disseminated, along with other indicative imbalance information, to J.P. Morgan and other market participants (including the other financial advisors) by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which J.P. Morgan, in its capacity as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once J.P. Morgan has notified Nasdaq that our shares of Class A common stock are ready to trade, Nasdaq will calculate the current reference price (as defined below) for our shares of Class A common stock, in accordance with Nasdaq's rules. If J.P. Morgan then approves proceeding at the current reference price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with J.P. Morgan and other market participants (including the other financial advisors). Upon completion of such price validation checks the applicable orders that have been entered will then be executed at such price and regular trading of our shares of Class A common stock on the Nasdaq Global Select Market will commence.

Under Nasdaq's rules, the "current reference price" means: (i) the single price at which the maximum number of orders to buy or sell our shares of Class A common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of Class A common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e. the specified price entered in an order by a customer to buy or sell) at which our shares of Class A common stock will remain unmatched (i.e. will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with J.P. Morgan, Jefferies and BTIG in their capacities as financial advisors. J.P. Morgan, Jefferies and BTIG will exercise any consultation rights only to the extent that they may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder. In determining the current reference price, Nasdaq's algorithms will match orders that have been entered into and accepted by Nasdaq's system. This occurs with respect to a potential current reference price when orders to buy shares of Class A common stock at an entered bid price that is greater than or equal to such potential current reference price are matched with orders to sell a like number of shares of Class A common stock at an entered asking price that is less than or equal to such potential current reference price.

The Registered Stockholders will not be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will they control or influence J.P. Morgan, Jefferies and BTIG in carrying out their roles as our financial advisors. We will not be involved in the price-setting process.

To illustrate, as a hypothetical example of the calculation of the current reference price, if Nasdaq's algorithms matched all accepted orders as described above, and two limit orders remained — a limit order to buy 500 shares of Class A common stock at an entered bid price of $10.01 per share and a limit order to sell 200 shares of Class A common stock at an entered asking price of $10.00 per share — the current reference price would be determined as follows:

● Under clause (i), if the current reference price is $10.00, then the maximum number of additional shares that can be matched is 200. If the current reference price is $10.01, then the maximum number of additional shares that can be matched is also 200, which means that the same maximum number of additional shares would be matched at the price of either $10.00 or $10.01.

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● Because more than one price under clause (i) exists, under clause (ii), the current reference price would be the price that minimizes the imbalance between orders to buy or sell (i.e. minimizes the number of shares that would remain unmatched at such price). Selecting either $10.00 or $10.01 as the current reference price would create the same imbalance in the limit orders that cannot be matched, because at either price 300 shares would not be matched.

● Because more than one price under clause (ii) exists, then under clause (iii), the current reference price would be the entered price at which orders for shares of Class A common stock at such entered price will remain unmatched. In such case, choosing $10.01 would cause 300 shares of the 500 share limit order with the entered price of $10.01 to remain unmatched, compared to choosing $10.00, where all 200 shares of the limit order with the entered price of $10.00 would be matched, and no shares at such entered price remain unmatched. Thus, Nasdaq would select $10.01 as the current reference price because orders for shares at such entered price will remain unmatched.

The above example (including the prices) is provided solely by way of illustration.

J.P. Morgan, as the designated financial advisor under Nasdaq Rule 4120(c)(8), will determine when our shares of Class A common stock are ready to trade and approve proceeding at the current reference price primarily based on consideration of volume, timing, and price. In particular, J.P. Morgan will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the current reference price. If J.P. Morgan does not approve proceeding at the current reference price (for example, due to the absence of adequate pre-opening buy and sell interest), J.P. Morgan will request that Nasdaq delay the open until such a time that sufficient price discovery has been made to ensure a reasonable amount of volume crosses on the opening trade.

Similar to a Nasdaq-listed underwritten initial public offering, in connection with the listing of our shares of Class A common stock, the financial advisors and buyers and sellers (or their brokers) who have subscribed will have access to the Nasdaq Stock Market's Order Imbalance Indicator (sometimes referred to as the Net Order Imbalance Indicator), a widely available, subscription-based data feed, prior to submitting buy or sell orders. Nasdaq's electronic trading platform simulates auctions every second to calculate a current reference price, the number of shares that can be paired off the current reference price, the number of shares that would remain unexecuted at the current reference price and whether a buy-side or sell-side imbalance exists, or whether there is no imbalance, in order to disseminate that information continuously to buyers and sellers via the Order Imbalance Indicator data feed.

However, because this is not an underwritten initial public offering, there will be no "book building" process (i.e., an organized process pursuant to which buy and sell interest is coordinated in advance to some prescribed level – the "book"). Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of our Class A common stock to the public as there would be in an underwritten initial public offering. This lack of an initial public offering price could impact the range of buy and sell orders collected by the Nasdaq Global Select Market from various broker-dealers. Consequently, the public price of our shares of Class A common stock may be more volatile than in an underwritten initial public offering and could, upon listing on the Nasdaq Global Select Market, decline significantly and rapidly.

In addition, in order to list on the Nasdaq Global Select Market, we are also required to have at least three registered and active market makers. We understand that J.P. Morgan, Jefferies and BTIG intend (but are not obligated) to act as registered and active market makers, although any such market-making, if commenced, may be discontinued at any time. Further, our financial advisors may assist interested registered stockholders with the establishment of brokerage accounts.

In addition to sales made pursuant to this prospectus, the shares of Class A common stock covered by this prospectus may be sold by the Registered Stockholders in individually negotiated transactions exempt from the registration requirements of the Securities Act. Under the securities laws of some states, shares of Class A common stock may be sold in such states only through registered or licensed brokers or dealers.

The Registered Stockholders may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of Class A common stock covered hereby or interests in shares of Class A common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

The Registered Stockholders may use any one or more of the following methods when disposing of shares of Class A common stock covered hereby or interests therein:

● distributions to members, partners, stockholders or other equityholders of the Registered Stockholders;

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

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● short sales effected after the effective date of the Registration Statement, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements;

● broker-dealers may agree with the Registered Stockholders to sell a specified number of such shares at a stipulated price per share;

● a combination of any such methods of sale; and

● any other method permitted pursuant to applicable law.

The Registered Stockholders may from time to time transfer, distribute (including distributions in kind by Registered Stockholders that are investment funds), pledge, assign, or grant a security interest in some or all the shares of Class A common stock owned by it and, if it defaults in the performance of its secured obligations, the transferees, distributees, pledgees, assignees, or secured parties may offer and sell the shares of Class A common stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of the registered stockholders to include the transferee, distributee, pledgee, assignee, or other successors in interest as Registered Stockholders under this prospectus. The Registered Stockholders also may transfer the shares in other circumstances, in which case the transferees, distributes, pledgees, or other successors in interest will be the registered beneficial owners for purposes of this prospectus.

In connection with the sale of shares of Class A common stock or interests therein, the Registered Stockholders may, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements, enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares of Class A common stock in the course of hedging the positions they assume. The Registered Stockholders may also sell shares of Class A common stock short and deliver these securities to close out their short positions, or loan or pledge shares of Class A common stock to broker-dealers that in turn may sell these securities. The Registered Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to the prospectus (as supplemented or amended to reflect such transaction).

If any of the Registered Stockholders utilize a broker-dealer in the sale of the shares of Class A common stock being offered by this prospectus, such broker-dealer may receive commissions in the form of discounts, concessions, or commissions from such registered stockholder or commissions from purchasers of the shares of Class A common stock for whom they may act as agent or to whom they may sell as principal. The aggregate proceeds to the Registered Stockholders from the sale of the shares of Class A common stock will be the purchase price of the shares of Class A common stock less discounts or commissions, if any. Each of the Registered Stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of shares of Class A common stock to be made directly or through agents.

The Registered Stockholders also may resell all or a portion of the shares of Class A common stock in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule, or another available exemption from the registration requirements of the Securities Act. The Registered Stockholders and any underwriters, broker-dealers or agents that participate in the sale of the shares of Class A common stock or interests therein may be "underwriters" within the meaning of Section 2(a)(11) of the Securities Act (it being understood that the Registered Stockholders will not be deemed to be underwriters solely as a result of their participation in any resale effected pursuant to the registration statement of which this prospectus forms a part). Any discounts, commissions, concessions or profit they earn on any resale of the shares of Class A common stock may be underwriting discounts and commissions under the Securities Act. Registered Stockholders who are "underwriters" within the meaning of Section 2(a)(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act.

To the extent required, the shares of Class A common stock to be sold, the names of the Registered Stockholders, the respective purchase prices and public offering prices, the names of any agent, dealer or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement of which this prospectus forms a part. Such prospectus supplement or post-effective amendment, and any underwritten offering of shares of Class A common stock, will be effected in accordance with, and remain subject to, the applicable provisions of the Registration Rights Agreement.

In order to comply with the securities laws of some states, if applicable, the shares of Class A common stock may be sold in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the shares of Class A common stock may not be sold unless they have been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied with. We have advised the Registered Stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares of Class A common stock in the market and to the activities of the Registered Stockholders and their affiliates. The Company has agreed to indemnify the Registered Stockholders against certain liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration of the shares of Class A common stock offered by this prospectus.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS**

The following is a discussion of certain material U.S. federal income tax consequences applicable to non-U.S. holders (as defined below) of the acquisition, ownership and disposition of our Class A common stock, but does not purport to be a complete analysis of all potential tax consequences related thereto. This discussion applies only to holders that hold our Class A common stock as a capital asset within the meaning of Section 1221 of the U.S. Internal Revenue Code of 1986, as amended (the "Code") (generally, property held for investment).

This discussion is a summary only and does not describe all of the tax consequences that may be relevant to you in light of your particular circumstances, including but not limited to the alternative minimum tax, the Medicare tax on certain net investment income and the different consequences that may apply if you are subject to special rules that apply to certain types of investors, including but not limited to:

● banks, financial institutions or financial services entities;

● broker-dealers;

● governments or agencies or instrumentalities thereof;

● regulated investment companies;

● real estate investment trusts;

● expatriates or former long-term residents of the United States;

● except as specifically provided below, persons that actually or constructively own five percent or more (by vote or value) of our stock;

● persons that acquired our Class A common stock pursuant to an exercise of employee share options, in connection with employee share incentive plans or otherwise as compensation;

● tax-qualified retirement plans;

● "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;

● insurance companies;

● dealers or traders subject to a mark-to-market method of accounting with respect to our Class A common stock;

● persons holding our Class A common stock as part of a "straddle," constructive sale, hedge, wash sale, conversion or other integrated or similar transaction;

● persons subject to special tax accounting rules as a result of any item of gross income with respect to our Class A common stock being taken into account in an applicable financial statement;

● non-U.S. holders (as defined below) whose functional currency is not the U.S. dollar;

● partnerships (or entities or arrangements classified as partnerships or other pass-through entities for U.S. federal income tax purposes) and any beneficial owners of such partnerships;

● tax-exempt entities;

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● corporations that accumulate earnings to avoid U.S. federal income tax;

● controlled foreign corporations; and

● passive foreign investment companies.

If a partnership (including an entity or arrangement treated as a partnership or other pass-through entity for U.S. federal income tax purposes) holds our Class A common stock, the tax treatment of a partner, member or other beneficial owner in such partnership will generally depend upon the status of the partner, member or other beneficial owner, the activities of the partnership and certain determinations made at the partner, member or other beneficial owner level. If you are a partner, member or other beneficial owner of a partnership holding our Class A common stock, you are urged to consult your tax advisor regarding the tax consequences of the acquisition, ownership and disposition of our Class A common stock.

This discussion is based on the Code, and administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof, which are subject to change, possibly on a retroactive basis, and changes to any of which subsequent to the date of this prospectus may affect the tax consequences described herein. This discussion does not address any aspect of U.S. state or local or foreign taxation, or any U.S. federal taxes other than income taxes (such as gift and estate taxes).

We have not sought, and do not expect to seek, a ruling from the IRS as to any U.S. federal income tax consequence described herein. The IRS may disagree with the discussion herein, and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or court decisions will not adversely affect the accuracy of the statements in this discussion. You are urged to consult your tax advisor with respect to the application of U.S. federal tax laws to your particular situation, as well as any tax consequences arising under the laws of any U.S. state or local or foreign jurisdiction.

**THIS DISCUSSION IS ONLY A SUMMARY OF CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES ASSOCIATED WITH THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON STOCK. EACH PROSPECTIVE INVESTOR IN OUR CLASS A COMMON STOCK IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR CLASS A COMMON STOCK, INCLUDING THE APPLICABILITY AND EFFECT OF ANY U.S. FEDERAL NON-INCOME, STATE AND LOCAL, AND NON-U.S. TAX LAWS**.

 ****

***Definition of Non-U.S. Holder***

As used herein, the term "non-U.S. holder" means a beneficial owner of our Class A common stock (other than a partnership or entity or arrangement classified as a partnership for U.S. federal income tax purposes) that is, for U.S. federal income tax purposes, not a U.S. person.

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 citizen or resident of the United States;

● a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, 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 if (a) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (b) it has in effect a valid election under applicable Treasury regulations to be treated as a U.S. person.

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***Taxation of Distributions***

In general, any distributions (including constructive distributions, but not including certain distributions of our stock or rights to acquire our stock) we make to a non-U.S. holder of shares of our Class A common stock, to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the non-U.S. holder's conduct of a trade or business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of 30%, unless such non-U.S. holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E). In the case of any constructive dividend, it is possible that this tax would be withheld from any amount owed to a non-U.S. holder by us or the applicable withholding agent, including from other property subsequently paid or credited to such holder.

Any distribution in excess of current and accumulated earnings and profits will constitute a return of capital that will be treated first as reducing (but not below zero) the non-U.S. holder's adjusted tax basis in its shares of our Class A common stock and, to the extent such distribution exceeds the non-U.S. holder's adjusted tax basis, as gain realized from the sale or other disposition of its shares of our Class A common stock, which will be treated as described under "—Gain on Sale, Taxable Exchange, or Other Taxable Disposition of Class A Common Stock" below.

The withholding tax generally does not apply to dividends paid to a non-U.S. holder who provides 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. Instead, the effectively connected dividends will be subject to regular U.S. federal income tax as if the non-U.S. holder were a U.S. resident, subject to an applicable income tax treaty providing otherwise. A corporate non-U.S. holder receiving effectively connected dividends may also be subject to an additional "branch profits tax" imposed at a rate of 30% (or a lower applicable treaty rate), as adjusted for certain items.

 ****

***Gain on Sale, Taxable Exchange, or Other Taxable Disposition of Class A Common Stock***

Subject to the discussion below regarding backup withholding and FATCA, a non-U.S. holder generally will not be subject to U.S. federal income or withholding tax in respect of gain recognized on a sale, taxable exchange or other taxable disposition of our Class A common stock, unless:

● the gain is effectively connected with the conduct by the non-U.S. holder of a trade or business within the United States (and, under certain income tax treaties, is attributable to a United States permanent establishment or fixed base maintained by the non-U.S. holder);

● the non-U.S. holder is an individual present in the United States for 183 days or more in the taxable year of disposition and certain other requirements are met; or

● we are or have been a "United States real property holding corporation" (as defined below) for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or the non-U.S. holder's holding period for the applicable Class A common stock, except, in the case where shares of our Class A common stock are "regularly traded on an established securities market" (within the meaning of applicable Treasury regulations, referred to herein as "regularly traded"), and the non-U.S. holder has owned, directly, indirectly, and constructively, 5% or less of our Class A common stock at all times within the shorter of the five-year period preceding such disposition of Class A common stock or such non-U.S. holder's holding period for such Class A common stock. We can provide no assurance as to our future status as a "United States real property holding corporation" (as defined below) or as to whether our Class A common stock will be considered to be regularly traded. Non-U.S. holders should consult their own tax advisors regarding the application of the foregoing rules in light of their particular facts and circumstances.

Unless an applicable treaty provides otherwise, gain described in the first bullet point above will be subject to tax at generally applicable U.S. federal income tax rates as if the non-U.S. holder were a U.S. resident. Any gains described in the first bullet point above of a non-U.S. holder that is treated as a corporation for U.S. federal income tax purposes may also be subject to an additional "branch profits tax" imposed at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty) on a portion of its effectively connected earnings and profits for the taxable year that are attributable to such gain, as adjusted for certain items.

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Gain described in the second bullet point above will be subject to U.S. federal income tax at a 30% rate (or such lower rate as may be specified by an applicable income tax treaty), but may be offset by U.S. source capital losses realized during the same taxable year (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. Non-U.S. holders should consult any applicable income tax treaties that may provide for different rules.

If the third bullet point above applies to a non-U.S. holder, gain recognized by such holder on the sale, exchange or other disposition of our Class A common stock will be subject to tax at generally applicable U.S. federal income tax rates as if the non-U.S. holder were a U.S. resident. In addition, a buyer of our Class A common stock from such holder may be required to withhold U.S. federal income tax at a rate of 15% of the amount realized upon such disposition. Any amounts withheld may be refunded or credited against a non-U.S. holder's U.S. federal income tax liability, provided that the required information is timely provided to the IRS.

We would be classified as a "United States real property holding corporation" if the fair market value of our "United States real property interests" equals or exceeds 50% of the sum of the fair market value of our worldwide real property interests plus our other assets used or held for use in a trade or business, as determined for U.S. federal income tax purposes. We believe that we are not currently a United States real property holding corporation. However, since the determination of whether we are a United States real property holding corporation depends on the fair market value of our United States real property interests relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance that we currently are not a United States real property holding corporation nor can there be any assurance we will not become one in the future.

 ****

***Information Reporting and Backup Withholding***

Information returns will be filed with the IRS in connection with payments to a non-U.S. holder of distributions. A non-U.S. holder may have to comply with certification procedures to establish that it is not a United States person in order to avoid additional information reporting and backup withholding requirements.

Information reporting and, depending on the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of our Class A common stock within the United States or conducted through certain U.S.-related financial intermediaries, unless the beneficial owner complies with certification procedures to establish that it is not a United States person.

The certification requirements referenced in this section generally will be satisfied if the non-U.S. holder furnishes a valid IRS Form W-8BEN, W-8BEN-E, or W-8ECI.

Backup withholding is not an additional tax. The amount of any backup withholding from a payment to a non-U.S. holder will be allowed as a credit against such holder's U.S. federal income tax liability and may entitle such holder to a refund, provided that the required information is timely furnished to the IRS. Non-U.S. holders should consult their tax advisors regarding their qualification for an exemption from backup withholding and the procedures for obtaining such an exemption, as well as any information reporting requirements that may be applicable in their particular circumstances.

 ****

***FATCA Withholding Taxes***

Provisions of the Code commonly referred to as the Foreign Account Tax Compliance Act ("FATCA") impose withholding of 30% on payments of dividends (including constructive dividends) on our Class A common stock to "foreign financial institutions" (which is broadly defined for this purpose and in general includes investment vehicles) and certain other non-U.S. entities unless various U.S. information reporting and due diligence requirements (generally relating to ownership by United States persons of interests in or accounts with those entities) have been satisfied by, or an exemption applies to, the payee (typically certified as to by the delivery of a properly completed IRS Form W-8BEN-E). Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. Under certain circumstances, a non-U.S. holder might be eligible for refunds or credits of such withholding taxes, and a non-U.S. holder might be required to file a U.S. federal income tax return to claim such refunds or credits.

Withholding of 30% under FATCA was scheduled to apply also to payments of gross proceeds from the sale or other disposition of shares of our Class A common stock beginning on January 1, 2019, but on December 13, 2018, the IRS released proposed regulations that, if finalized in their proposed form, would eliminate the obligation to withhold on such gross proceeds. Although these proposed Treasury regulations are not final, taxpayers generally may rely on them until final Treasury regulations are issued. However, there can be no assurance that final Treasury regulations will provide the same exceptions from FATCA withholding as the proposed Treasury regulations. Non-U.S. holders should consult their tax advisors regarding the effects of FATCA on their investment in our Class A common stock.

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**LEGAL MATTERS**

The validity of the securities offered hereby will be passed upon for us by White & Case LLP. Latham & Watkins LLP, New York, New York, is legal advisor to the financial advisors.

**CHANGE IN ACCOUNTANTS**

On April 30, 2024, RSM US LLP resigned as our independent registered public accountant. RSM US LLP audited the consolidated financial statements the Company for the years ended December 31, 2023 and 2022. The audit report did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles. The decision to change our independent registered public accountant was approved by the audit committee of our Board.

During the years ended December 31, 2023 and 2022, and the subsequent interim period through April 30, 2024, there were no (i) disagreements as defined in Item 304(a)(1)(iv) of Regulation S-K between the Company and RSM US LLP 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 RSM US LLP to make reference in connection with its report to the subject matter of the disagreement during the period from RSM US LLP's engagement on February 1, 2024 to its resignation on April 30, 2024. During the years ended December 31, 2023 and 2022, and the subsequent interim period through April 30, 2024, there were no "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, except for the material weaknesses in the Company's internal control over financial reporting as of December 31, 2023 related to a lack of segregation of duties within the accounting and financial reporting function and the misapplication of transfer pricing allocation percentages resulting in incorrect costs (i.e., service fees) attributable to Celsius Mining.

We will provide RSM US LLP with a copy of the foregoing disclosure and request that RSM US LLP provide a letter addressed to the SEC stating whether it agrees with the above facts and, if not, stating the respects in which it does not agree. A copy of RSM US LLP's letter will be filed in a future filing as Exhibit 16.1 to the registration statement of which this prospectus forms a part.

On August 27, 2024, the audit committee of our Board approved the engagement of BDO USA, P.C., effective October 17, 2024 as the Company's independent registered public accounting firm.

During the years ended December 31, 2023 and 2022, and the subsequent interim period through April 30, 2024, neither we, nor anyone acting on our behalf, consulted with BDO USA, P.C. 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.

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**EXPERTS**

The consolidated financial statements of Ionic Digital Inc. as of December 31, 2025 (Successor) and 2024 (Successor), and for the year ended December 31, 2025 (Successor), the eleven month period ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor), 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 MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of Class A common stock offered hereby. This prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to our company and our Class A common stock, reference is made to the registration statement and the exhibits and any schedules filed therewith. 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 can read our SEC filings, including the registration statement, over the internet at the SEC's website at *www.sec.gov*.

We are subject to the information reporting requirements of the Exchange Act and we are required to file reports, proxy statements and other information with the SEC. These reports, proxy statements, and other information are available for inspection and copying at the SEC's website referred to above. We also maintain a website at *https://www.ionicdigital.com*, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on or accessible through our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only.

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**Ionic Digital Inc.**

**INDEX TO FINANCIAL STATEMENTS**

**INDEX**

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| | |
|:---|:---|
|  | **Pages** |
| ***Unaudited Condensed Consolidated Financial Statements:*** |  |
| [Condensed Consolidated Balance Sheets as of March 31, 2026 and as of December 31, 2025](#ffa_002) | F-2 |
| [Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and the three months ended March 31, 2025](#ffa_003) | F-3 |
| [Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2026 and the three months ended March 31, 2025](#ffa_004) | F-4 |
| [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and the three months ended March 31, 2025](#ffa_005) | F-5 |
| [Notes to Condensed Consolidated Financial Statements](#ffa_006) | F-6 |
| ***Audited Consolidated Financial Statements:*** |  |
| [Report of Independent Registered Public Accounting Firm](#v_001) | F-26 |
| [Consolidated Balance Sheets as of December 31, 2025 (Successor) and as of December 31, 2024 (Successor)](#fin_001) | F-27 |
| [Consolidated Statements of Operations for the year ended December 31, 2025 (Successor) and the eleven months ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor)](#fin_002) | F-28 |
| [Consolidated Statements of Changes in Equity (Deficit) for the year ended December 31, 2025 (Successor) and the eleven months ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor)](#fin_003) | F-29 |
| [Consolidated Statements of Cash Flows for the year ended December 31, 2025 (Successor) and the eleven months ended December 31, 2024 (Successor), and for the one month ended January 31, 2024 (Predecessor)](#fin_004) | F-30 |
| [Notes to Consolidated Financial Statements](#fin_005) | F-31 |

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**IONIC DIGITAL INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

**(in thousands of $ US, except share data)**

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| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31, <br> 2025** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $34916 | $43510 |
| &nbsp;&nbsp;&nbsp;Cryptocurrency assets | 192085 | 237947 |
| &nbsp;&nbsp;&nbsp;Other receivables, current (net of $0 and $5.1 million allowance for credit losses as of March 31, 2026 and December 31, 2025, respectively) | 8517 | 10460 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 7778 | 11427 |
| &nbsp;&nbsp;&nbsp;Assets held for sale | 3303 |  |
| Total current assets | 246599 | 303344 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 65729 | 76156 |
| &nbsp;&nbsp;&nbsp;Deferred initial direct leasing costs | 6634 | 6803 |
| &nbsp;&nbsp;&nbsp;Other receivables, non-current (net of $3.3 million allowance for credit losses as of March 31, 2026 and December 31, 2025, respectively) | 370 | 370 |
| &nbsp;&nbsp;&nbsp;Deposits and other non-current assets | 2232 | 2253 |
| &nbsp;&nbsp;&nbsp;Goodwill | 161608 | 161608 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets, net | 70858 | 54470 |
| Total non-current assets | 307431 | 301660 |
| **TOTAL ASSETS** | $554030 | $605004 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Deferred digital infrastructure leasing revenue |  | 39793 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 5063 | 1720 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 11121 | 19159 |
| Total current liabilities | 16184 | 60672 |
| Non-current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Non-current portion of lease liability | 173 | 170 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | 802 | 755 |
| Total non-current liabilities | 975 | 925 |
| **TOTAL LIABILITIES** | $17159 | $61597 |
| Commitments and contingencies (Note 17) |  |  |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.00001 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2026 and December 31, 2025. |  |  |
| &nbsp;&nbsp;&nbsp;Class A common stock, $0.00001 par value, 1,000,000,000 shares authorized, 37,374,261 shares issued and outstanding as of March 31, 2026 and December 31, 2025 |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 757433 | 750985 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (220562) | (207578) |
| **TOTAL STOCKHOLDERS' EQUITY** | $536871 | $543407 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $554030 | $605004 |

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*See accompanying Notes to Condensed Consolidated Financial Statements.*

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**IONIC DIGITAL INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

**(in thousands of US $, except per share data)**

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31,<br> 2026** | **Three Months Ended**<br> **March 31,<br> 2025** |
| **Revenue:** | | |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining | $7401 | $41081 |
| &nbsp;&nbsp;&nbsp;Digital infrastructure leasing | 43955 |  |
| &nbsp;&nbsp;&nbsp;Other | 84 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Revenue** | 51440 | 41081 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of mining revenues, exclusive of depreciation | 5603 | 25213 |
| &nbsp;&nbsp;&nbsp;Cost of digital infrastructure solutions revenues, exclusive of depreciation | 465 |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 5576 | 16457 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 16241 | 7111 |
| &nbsp;&nbsp;&nbsp;Loss on fair value of cryptocurrency | 53323 | 45448 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized (gain) on sale of cryptocurrency assets |  | (17614) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (303) | (19) |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 187 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 81092 | 76846 |
| **Operating loss** | (29652) | (35765) |
| Other income |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 327 | 341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 327 | 341 |
| Loss before provision for income taxes | (29325) | (35424) |
| Benefit for income taxes | (16341) | (7393) |
| **Net loss** | $(12984) | $(28031) |
| Basic and diluted net loss per share | $(0.35) | $(0.75) |
| Weighted-average number of shares used in computing net loss per share, basic and diluted | 37374261 | 37374261 |

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*See accompanying Notes to Condensed Consolidated Financial Statements.*

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**IONIC DIGITAL INC.**

**CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY**

**(Unaudited)**

**(in thousands of US $, except share data)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Retained<br> Earnings<br> (Accumulated**<br> **Deficit)** | **Total Stockholders'**<br>**Equity** |
| **Balance as of December 31, 2025** | 37374261 | $— | $750985 | $(207578) | $543407 |
| &nbsp;&nbsp;&nbsp;Share-based compensation |  |  | 6448 |  | 6448 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (12984) | (12984) |
| **Balance as of March 31, 2026** | 37374261 | $— | $757433 | $(220562) | $536871 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Retained<br> Earnings<br> (Accumulated**<br>**Deficit)** | **Total Stockholders'**<br>**Equity** |
| **Balance as of December 31, 2024** | 37374261 | $— | $747485 | $40145 | $787630 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (28031) | (28031) |
| **Balance as of March 31, 2025** | 37374261 | $— | $747485 | $12114 | $759599 |

---

*See accompanying Notes to Condensed Consolidated Financial Statements.*

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**IONIC DIGITAL INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOW**

**(Unaudited)**

**(in thousands of US $)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31, 2026** | **Three Months Ended**<br> **March 31, 2025** |
| **Cash flows from operating activities:** | | |
| Net loss | $(12984) | $(28031) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Mining revenue received in bitcoin | (7401) | (41081) |
| &nbsp;&nbsp;&nbsp;Hosting costs paid in bitcoin |  | 394 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 5581 | 16462 |
| &nbsp;&nbsp;&nbsp;Loss in the fair value of cryptocurrency assets | 53323 | 45448 |
| &nbsp;&nbsp;&nbsp;Realized gain on sale of cryptocurrency assets |  | (17614) |
| &nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (303) | (19) |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense | 15 | 19 |
| &nbsp;&nbsp;&nbsp;Deferred initial direct leasing costs | 169 |  |
| &nbsp;&nbsp;&nbsp;Stock compensation expense | 6448 |  |
| &nbsp;&nbsp;&nbsp;Deferred income taxes, net | (16388) | (7517) |
| Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Other receivables | 1883 | 64 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 3649 | (6679) |
| &nbsp;&nbsp;&nbsp;Deposits and other non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Deferred digital infrastructure leasing revenue | (39793) |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | (4694) | 804 |
| &nbsp;&nbsp;&nbsp;Non-current liabilities | 50 | 125 |
| **Net cash used in operating activities** | (10445) | (37625) |
| **Cash flows from investing activities:** |  |  |
| Purchases of property and equipment | (191) | (3324) |
| Proceeds from the sale of mining equipment | 51 | 19 |
| Proceeds from assets held for sale | 1991 |  |
| Proceeds from sale of cryptocurrency assets |  | 32733 |
| **Net cash provided by investing activities** | 1851 | 29428 |
| **Cash flows from financing activities:** |  |  |
| **Net cash provided by financing activities** |  |  |
| Net decrease in cash and cash equivalents | (8594) | (8197) |
| Cash and cash equivalents at the beginning of the period | 43510 | 48393 |
| **Cash and cash equivalents at the end of the period** | $34916 | $40196 |
| **Supplemental schedule of non-cash financing and investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Assumption of liability for the acquisition of PPE | $— | $(1066) |

---

*See accompanying Notes to Condensed Consolidated Financial Statements.*

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**IONIC DIGITAL INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**(Unaudited)**

**(In thousands of $ US, except share data)**

**NOTE 1. ORGANIZATION**

***Nature of operations and corporate information***

Ionic Digital Inc. (together with its consolidated subsidiaries, "Ionic Digital," or the "Company") was formed on January 5, 2024 to acquire substantially all of the assets and assume certain liabilities of Celsius Mining, LLC ("Celsius Mining") pursuant to the Chapter 11 bankruptcy plan of reorganization (the "Plan"), which was confirmed by the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") on November 9, 2023. Pursuant to the Plan, at the close of business on January 31, 2024 (the "Plan Effective Date"), the Company, through its wholly owned subsidiary Ionic Digital Treasury Inc., entered into a Master Conveyance Agreement with Celsius Mining and acquired substantially all the assets and assumed certain liabilities from Celsius Mining (the "Business Combination"). As a result of the Business Combination, the Company initiated its cryptocurrency mining operations, generating revenue through the mining of bitcoin, a digital asset operating on a decentralized, open-source blockchain network.

Subsequent to the Business Combination, the Company solely operated a fleet of application-specific integrated circuit ("ASIC") mining machines ("miners") at both hosted and Company owned facilities. However, on October 14, 2025 the Company entered into a lease arrangement for its Ward County facility (previously referred to as "Cedarvale" in Company communications), resulting in a new operating segment which provides digital infrastructure solutions (refer to Note 7 – Leases for additional information). The Company's cryptocurrency mining segment continues to operate four owned and leased sites facilities located in Midland, Texas.

**NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, including those of a normal and recurring nature, which are necessary for a fair presentation of the results for the interim period presented. The Company's interim financial statements are condensed and should be read in conjunction with the Company's latest audited annual consolidated financial statements. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be expected for the full-year ending December 31, 2026.

***Principles of Consolidation***

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

***Use of Estimates***

The preparation of the Company's condensed consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimates used to review the Company's goodwill allocation and impairment, impairment of long-lived assets, allowance for credit losses, income taxes, and share-based compensation.

Management bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that it believes to be reasonable under the circumstances when these carrying values are not readily available from other sources. Making estimates requires management to exercise significant judgment and it is at least reasonably possible that the estimate of the effect of a condition, situation, or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, actual results may differ materially from those estimates.

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***Cash and Cash Equivalents***

Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. These investments may include money market funds, certificates of deposit, and other short-term instruments.

***Concentrations of credit risk***

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. At times throughout the year, the Company may maintain cash balances in certain bank accounts in excess of FDIC limits. The cash balance in excess of the FDIC limits was immaterial as of March 31, 2026 and December 31, 2025. The Company's cash equivalents include investments in money market funds, primarily the Fidelity Investments Money Market Government Portfolio - Institutional Class (FRGXX), which invests at least 99.5% of its assets in cash, U.S. government securities, and repurchase agreements collateralized by such securities. At March 31, 2026 and December 31, 2025, the fair value of these investments was $32.8 million and $42.1 million, respectively. These funds are not insured by the FDIC, but maintain a stable net asset value of $1.00 per share and are subject to SEC diversification and liquidity requirements under Rule 2a-7. The Company has no significant concentrations of credit risk from these holdings beyond U.S. sovereign credit exposure. The accounts offered by the custodian of the Company's bitcoin are not insured by the FDIC. The uninsured fair value of the Company's bitcoin holdings totaled $192.1 million and $237.9 million as of March 31, 2026 and December 31, 2025, respectively. The Company has not experienced any losses in these accounts beyond the losses resulting from the change in the value of bitcoin.

The Company has certain customers and vendors who individually represent 10% or more of the Company's revenue or capital expenditures.

***Investments***

Short-term investments include available-for-sale debt securities, which consist of U.S Treasury securities with original maturities of greater than three months but less than one year when purchased or maturities of one year or less on the reporting date. Investments are recorded at fair value using the specific identification method. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Any unrealized holding gains or losses are reported as accumulated other comprehensive gain or loss, which is a separate component of Stockholders' equity, net of tax, until realized.

The Company assesses available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation, to determine whether it intends to sell, or it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as a write down through earnings.

The Company held no available-for-sale securities as of March 31, 2026 and December 31, 2025, respectively.

***Prepaid Expenses***

The Company records a prepaid expense for costs paid, but not yet incurred. Those expected to be incurred within one year are recognized and shown within Current assets on the Company's Condensed Consolidated Balance Sheet. Any costs expected to be incurred outside of one year would be included within Deposits and other non-current assets on the Company's Condensed Consolidated Balance Sheet.

***Allowance for Credit Losses***

Management estimates an allowance for credit losses using relevant available information from both internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Changes in the allowance for credit losses are recorded within General and administrative expenses, in the Condensed Consolidated Statement of Operations.

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***Fair value measurements***

The Company accounts for financial assets and liabilities in accordance with ASC 820, *Fair Value Measurement* ("ASC 820"), which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:

● Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.

● Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices included for identical or similar assets and liabilities that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. These are typically obtained from readily available pricing sources for comparable instruments.

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

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

The following table presents the Company's financial instruments that are measured and recorded at fair value on a recurring basis, and their level within the fair value hierarchy (*in thousands*):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
|  | **Total<br> carrying** | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **value** | **Level 1** | **Level 2** | **Level 3** |
| Cash and cash equivalents – money market funds | $32811 | $32811 | $— | $— |
| Cryptocurrency assets | $192085 | $192085 | $— | $— |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Total carrying** | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **value** | **Level 1** | **Level 2** | **Level 3** |
| Cash and cash equivalents - money market funds | $42135 | $42135 | $— | $— |
| Cryptocurrency assets | $237947 | $237947 | $— | $— |

---

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to the short-term nature of these instruments.

*Assets and liabilities measured and recorded at fair value on a non-recurring basis*

The Company's non-financial assets, such as goodwill, intangible assets, and property and equipment, are adjusted to fair value when an impairment charge is recognized. In measuring impairment of long-lived assets in accordance with the provisions of ASC 360, *Property, Plant, and Equipment*, the Company estimates the fair value of long-lived assets on a non-recurring basis using Level 2 inputs for similar assets in active markets, including market data regarding the value of our ASIC miners, a limited ability to repurpose certain buildings and related materials, and the marketability (or lack thereof) of certain machinery and facilities equipment considering the condition and customized nature of the assets in accordance with the provisions of ASC 820.

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In determining the fair value of the assets and liabilities acquired in the Business Combination and in evaluating the fair value of its reporting unit or units when testing goodwill for impairment, the Company considers a combination of the income and market valuation approaches. The income valuation approach uses unobservable inputs including projections of internal cash flows, future bitcoin prices, and the future global hashrate, as well as derived discount and long-term growth rates. The market valuation approach utilizes observable inputs for similar assets and liabilities to estimate valuation multiples. Refer to Note 9 – Goodwill for further information.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** |
|  | **Total carrying value** | **Level 1** | **Level 2** | **Level 3** |
| Long-lived assets<sup>(1)</sup> | $76585 | $— | $— | $76585 |
| Goodwill | $161608 | $— | $— | $161608 |

---

<sup>(1)</sup> *Long-lived assets include $76.2 million of property and equipment and $0.4 million of ROU assets as of December 31, 2025.*

*Fair Value of Bitcoin*

The change in the fair value of bitcoin reflects the change in fair value of bitcoin held by us between the time the bitcoin was earned from mining activities and the fair value of bitcoin as of March 31, 2026.

***Cryptocurrency assets***

Cryptocurrency assets held by the Company as of March 31, 2026 and December 31, 2025, consisted entirely of bitcoin. All cryptocurrency asset holdings are classified as current assets in the accompanying balance sheets due to the Company's ability to sell the cryptocurrency assets in a highly liquid marketplace and its intent to liquidate its cryptocurrency assets to support operations or for treasury management as needed during the normal operating cycle of the Company.

Bitcoin received by the Company through its mining activities is accounted for in connection with the Company's revenue recognition policy disclosed below.

Cryptocurrency assets are recorded at fair value. The Company determines the fair value of cryptocurrency assets in accordance with ASC 820. The fair value of bitcoin is measured using the period-end closing bitcoin price from its principal market, Coinbase Global, Inc. ("Coinbase"). The Company utilizes the bitcoin spot price as of 23:59:59 UTC. For the three months ended March 31, 2026 and 2025, the changes in fair value are recognized as Loss on fair value of bitcoin within Operating expenses on the Condensed Consolidated Statements of Operations.

The proceeds from sales of cryptocurrency assets are included within investing activities in the accompanying Condensed Consolidated Statements of Cash Flows, as the Company intends to liquidate its cryptocurrency assets only as needed to cover operating costs and expenses within its operating cycle. In accordance with ASC 350-60, the Company discloses realized gains and losses from the sale of cryptocurrency assets and such gains and losses are measured as the difference between the cash proceeds and the cost basis of the asset as determined on a First In-First Out basis.

***Property and equipment, net***

Property and equipment is stated at cost less depreciation accumulated using the straight-line method over the estimated useful lives of the assets. Construction-in-progress is the construction or development of assets that have not yet been placed in service for their intended use, and therefore, are not depreciated until the work is completed and the assets are placed in service. Depreciation of mining equipment, machinery and facilities equipment, buildings, and leasehold improvements also commences once assets are placed in service. Land is not depreciated.

Costs of maintenance, repairs, and minor parts replacements are expensed when incurred. Upon the sale or retirement of property and equipment, the cost and accumulated depreciation and amortization are removed from the Company's balance sheets with the resulting gain or loss, if any, reflected in the Company's Condensed Consolidated Statements of Operations.

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The estimated useful lives of the assets are as follows:

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| | |
|:---|:---|
|  | **Years** |
| Computer equipment | 3 |
| Mining equipment | 1-3 |
| Machinery and facility equipment<sup>(1)</sup> | 7-20 |
| Buildings | 10-20 |
| Land Improvement | 15 |

---

<sup>(1)</sup> *Machinery and facility equipment primarily includes containers, electrical parts, cables, and transformers.*

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such asset groups may not be fully recoverable. The asset groups to be held and used that are subject to impairment review represent the lowest level of identifiable cash flows that are largely independent of other groups of assets and liabilities.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered unrecoverable, the impairment loss to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

***Assets Held for Sale***

The Company classifies long-lived assets to be sold as held for sale in the period in which all of the following criteria are met:

&nbsp;&nbsp;&nbsp;&nbsp;1. Management, having
 the authority to approve the action, commits to a plan to sell the asset;

&nbsp;&nbsp;&nbsp;&nbsp;2. The asset is available
 for immediate sale in its present condition subject only to terms that are usual and customary
 for sales of such assets;

&nbsp;&nbsp;&nbsp;&nbsp;3. An active program
 to locate a buyer and other actions required to complete the plan to sell the asset have
 been initiated;

&nbsp;&nbsp;&nbsp;&nbsp;4. The sale of the asset is probable, and
 transfer of the asset is expected to qualify for recognition as a completed sale within one
 year, except if events or circumstances beyond the Company's control extend the period
 of time required to sell the asset beyond one year;

&nbsp;&nbsp;&nbsp;&nbsp;5. The asset is being actively marketed
 for sale at a price that is reasonable in relation to its current fair value; and

&nbsp;&nbsp;&nbsp;&nbsp;6. Actions required to complete the plan
 indicate that it is unlikely that significant changes to the plan will be made or that the
 plan will be withdrawn.

The Company initially measures long-lived assets that are classified as held for sale at the lower of their carrying amount or fair value less any costs to sell. Any loss resulting from remeasurement is recognized in the period in which the held-for-sale criteria are met. Conversely, potential gains are not recognized on long-lived assets until the date of sale. The Company assesses the fair value of a long-lived asset, less any costs to sell, in each reporting period it remains classified as held for sale, and reports any subsequent changes as an adjustment to the carrying value of the asset, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Refer to Note 5 – Assets Held for Sale for further information.

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***Recognition of Cryptocurrency Mining Revenue***

Ionic Digital participates in a third-party operated mining pool to which the Company provides the service of performing hash calculations, an output of the Company's ordinary activities.

The Company recognizes revenue under ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The core principle of this standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the Company satisfies a performance obligation

*Step 1*: The Company has identified the third-party mining pool operator as its customer (the "Customer"). The Company enters into a contract with the Customer to provide its hash calculations to the Customer's mining pool. The contracts are terminable without penalty at any time by either party; thus, the contract term is shorter than a 24-hour period and the contracts are continuously renewed.

Applying the criteria per ASC 606-10-25-1, the contract arises at the point that the Company provides hash calculations to the Customer's mining pool, which is considered contract inception, because Customer consumption is in tandem with delivery of the hash calculations.

*Step 2*: To identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" good or service (or bundle of goods or services) if both of the following criteria are met:

● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and

● The entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

The Company has identified a single performance obligation of providing hash calculations for the mining pool operator. The continuous renewal options do not represent material rights because they do not provide the Customer with the right to purchase additional goods or services at a discount. Specifically, the contract is renewed with the same terms, conditions, and rate as the current contract, which is consistent with market rates, and there are no upfront or incremental fees in the initial contract. The Company has full control of the mining equipment used in the mining pool, and if the Company determines it will increase or decrease the hashrate (the speed at which mining equipment can perform hash calculations) of its machines and/or fleet (i.e., for repairs or when power costs are excessive), the hashrate provided to the Customer will correspondingly increase or decrease.

*Step 3*: The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all the following:

● Variable consideration

● Constraining estimates of variable consideration

● The existence of a significant financing component in the contract

● Noncash consideration

● Consideration payable to a customer

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. There are no other forms of variable consideration such as discounts, rebates, credits, price concessions, incentives, performance bonuses, penalties, or other similar items.

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In exchange for providing hash calculations the Company is entitled to receive noncash consideration, payable in bitcoin, from the mining pool operator. Bitcoin earned and recognized is variable from day to day based on the payout model. The amount of compensation due to the Company is determined using the Full Pay Per Share ("FPPS") payout model detailed in the mining pool operator contract. FPPS contains three components, (1) a fractional share of the fixed crypto asset award from the mining pool operator (referred to as a "network block subsidies"), (2) network transaction fees generated from (paid by) blockchain users to execute transactions and distributed (paid out) to individual miners by the mining pool operator, (3) pool operating fees. The Company's total compensation is calculated as the sum of the Company's share of (1) Network Block Subsidies and (2) Network Transaction Fees, less (3) Pool Operating Fees.

"Network Block Subsidies" means the total amount of block subsidies that are expected to be generated on the Bitcoin network during the 24-hour period beginning at 00:00:00 UTC daily (i.e., the measurement period) and ending at 23:59:59 UTC the same day, regardless of whether the mining pool operator successfully records a block to the blockchain.

The Company's share of Network Block Subsidies earned for each measurement period is determined by dividing (a) the total amount of hashrate Ionic Digital provides to the mining pool operator, by (b) the total Bitcoin network's implied hashrate (as determined by the Bitcoin network difficulty), multiplied by (c) the Network Block Subsidies.

"Network Transaction Fees" means the total amount of transaction fees that are generated on the Bitcoin network during the measurement period.

The Company's share of Network Transaction Fees earned for each measurement period is determined by dividing (a) the total amount of Network Transaction Fees, by (b) the total amount of Network Block Subsidies that are generated on the Bitcoin network, multiplied by (c) Ionic Digital's share of Network Block Subsidies.

"Pool Operating Fees" means the fees charged by the mining pool operator for operating the mining pool as set forth on a rate schedule to the mining pool contract. The Pool Operating Fees reduce the total amount of compensation the Company receives and are only incurred to the extent that it has generated mining revenue during the measurement period.

The Customer provides services solely for bitcoin mining and the fees charged during the most recent fiscal quarter were 0.16% of the total daily bitcoin mined. The Pool Operating Fees represent consideration paid to the Customer; therefore, since the Company does not receive a distinct good or service from the mining pool operator in exchange for the fees paid, the Pool Operating Fees are reported as a reduction in revenue.

For each contract, the Company measures the consideration at fair value based on the quoted price of bitcoin at the 00:00:00 UTC spot price on the date of contract inception, as determined by the Company's principal market, Coinbase. The Company recognizes this noncash consideration on the same day that control of the contract service transfers to the mining pool operator, which is the same day as contract inception.

Daily settlements are made to the Company by the Customer based on the hash calculations provided over the contract periods over a 24-hour period and the payout is made the following day.

There is no significant financing component, deferred revenue, or other obligations in these transactions since there are no payments in advance of the performance, and there are no remaining performance obligations after providing hash calculations.

*Step 4*: The transaction price is allocated to the single performance obligation of providing hash calculations to the customer.

*Step 5*: The Company's performance is completed over time as the customer obtains control of the contributed hashrate. The performance obligation of hash calculations is fulfilled over time, as opposed to a point in time, because the Company provides the hash calculations throughout the contract period and the customer simultaneously obtains control of the service and uses it to produce bitcoin.

***Recognition of leasing revenue***

The Company generates revenue from an agreement to provide digital infrastructure solutions at its Ward County facility. The arrangement has both lease and non-lease components, and the arrangement will primarily be accounted for in accordance with ASC 842, *Leases* ("ASC 842"), while certain non-lease components will be accounted for in accordance with ASC 606.

See further discussion in *–Leases* herein, as well as in Note 7 – Leases.

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***Share-Based Compensation***

The Company recognizes share-based compensation expense for all share-based awards made to employees, directors, consultants, and service providers, if any, based upon the estimated grant-date fair value of the awards.

The fair value of share-based compensation awards is amortized over the vesting period, which is defined as the period during which a recipient is required to provide service in exchange for an award. The Company generally uses a graded vesting method for all grants. Awards with both market and service conditions are expensed over the vesting period for each separately vesting tranche. The Company accounts for forfeitures of share-based awards as they occur.

For more complex performance awards, including awards with market conditions, the fair value is estimated using the Black-Scholes-Merton option pricing model or Monte-Carlo simulations, which take into account the exercise price, the term of the option or the restricted stock units ("RSUs"), the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company receives the services that entitle the employees to receive payment.

In accordance with ASC 718, Stock Compensation ("ASC 718"), share-based compensation for awards with market conditions is recognized over the vesting period, regardless of whether the market condition is ultimately achieved will only be adjusted to the extent the service condition is not met.

If share-based awards are modified, as a minimum, an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification.

If share-based awards are cancelled or settled during the vesting period (other than a grant cancelled by forfeiture when the vesting conditions are not satisfied), this is treated as an acceleration of vesting and the amount that otherwise would have been recognized for services received over the remainder of the vesting period will be recognized immediately through share-based compensation expense in earnings.

The Company classifies its share-based compensation within "General and administrative expenses" on the Condensed Consolidated Statements of Operations. Refer to Note 10 – Share-based Compensation.

***Leases***

Leases are accounted for in accordance with ASC 842. The Company has lease arrangements both as a lessor and a lessee. At the inception of an arrangement, the Company determines whether the contract is or contains a lease based on specific facts and circumstances, the existence of an identified asset, if any, and the Company's control over the use of the identified asset, if applicable.

*Lessor* 

Lease arrangements wherein the Company retains ownership of the underlying asset and grants a customer the right to use its asset are classified by the Company as an operating lease. Lease revenue is recognized on a straight-line basis and the associated leased assets are depreciated.

On October 14, 2025, the Company entered into an arrangement to provide digital infrastructure solutions to a customer at its Ward County facility. The arrangement includes both lease and non-lease components, certain of which are directly related to the lease components and the Company has elected to combine those related lease and non-lease components. The Company will account for the combined lease and non-lease components as Digital infrastructure leasing revenue in the Condensed Consolidated Statements of Operations. See further discussion in Note 7 – Leases.

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*Lessee*

The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. All other leases are categorized as operating leases and related expenses are recognized on a straight-line basis over the term of the related contract within General and administrative expenses in the Condensed Consolidated Statements of Operations.

The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the present value of future minimum lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, in determining the present value of the lease payments the Company uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowings over a similar term of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term.

The lease term is defined as the non-cancellable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less. Some leases include multiple-year renewal options. The Company's decision to exercise these renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

For all classes of underlying assets, the Company has elected to separate lease and non-lease components.

***Goodwill***

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. In accordance with ASC 350, *Goodwill and Other Intangible Assets* ("ASC 350"), the Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. Triggering events that may indicate a potential impairment include but are not limited to significant adverse changes in bitcoin prices or business climate and related competitive considerations. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount but also has the option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative analysis. If the Company performs a qualitative test and determines it is more likely than not that the fair value of a reporting unit is less than is carrying amount, the Company performs a quantitative goodwill impairment test to compare the estimated fair value of the reporting unit to its carrying amount. Impairment is indicated if the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, and an impairment charge is recognized for the difference, not to exceed the carrying value of goodwill.

See further discussion of the goodwill impairment testing performed in Note 9 – Goodwill.

***Income taxes***

The Company complies with the accounting and reporting requirements of ASC 740, *Income Taxes* ("ASC 740"), which requires use of the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is required to the extent any deferred tax assets may not be realizable.

The Company also follows US GAAP in accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company's policy is to record interest and penalties associated with uncertain tax positions through income tax expense. There were no material unrecognized benefits or associated interest or penalties as of the periods provided for in these financial statements.

***Segment reporting***

Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker ("CODM"). The CODM of the Company is the Chief Executive Officer. The CODM reviews financial performance for the cryptocurrency mining business as well as the digital infrastructure solutions business. Accordingly, the Company has two operating segments, and the Company discloses both segments in its condensed consolidated financial statements.

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***Recent accounting pronouncements***

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change on its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's consolidated financial statements properly reflect the change.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public business entities to provide more detailed disclosures in the notes to their financial statements, both for interim and annual reporting periods, about certain expenses such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently assessing the potential impact of this standard's adoption.

In May 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU introduces simplifications for estimating credit losses on current accounts receivable and contract assets arising from Topic 606 (Revenue from Contracts with Customers). It provides one key relief for the Company: a practical expedient allowing entities to assume that current economic conditions remain unchanged over the life of these assets. These changes aim to reduce the cost and complexity of applying the credit loss model, especially for assets acquired in business combinations or through consolidation of variable interest entities. The Company adopted the simplified method available to it in estimating allowance for credit losses as of January 1, 2026, which had an immaterial impact.

**NOTE 3. CRYPTOCURRENCY ASSETS**

The Company's cryptocurrency assets consist primarily of bitcoin. The following table presents information about cryptocurrency assets activity of the Company *(in thousands*):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31, <br> 2026** | **Three Months Ended**<br> **March 31, <br> 2025** |
| Beginning balance | $237947 | $223438 |
| Addition to bitcoin from mining activities<sup>(1)</sup> | 7461 | 41252 |
| Consideration paid to hosting providers |  | (181) |
| Carrying value of bitcoin disposed<sup>(2)</sup> |  | (15334) |
| Changes in fair value of bitcoin | (53323) | (45448) |
| &nbsp;&nbsp;&nbsp;Ending Balance<sup>(3)</sup> | $192085 | $203727 |
| Realized gain on sale of cryptocurrency assets<sup>(4)</sup> | $— | $17614 |

---

(1) *Net of mining pool operating fees, as described in Note 2 – Basis of Presentation and Significant Accounting Policies. The addition to bitcoin from mining activities excludes bitcoin receivable of $0.1 million and $0.3 million for the three months ended March 31, 2026 and March 31, 2025, respectively. Bitcoin receivable is included in Other receivables, net on the Condensed Consolidated Balance Sheets.* 

(2) *Disposal is defined as the sale of bitcoin or payment of certain hosting costs in bitcoin.* 

(3) *The ending balance of bitcoin holdings as of March 31, 2026 and 2025, represents the fair value.* 

(4) *No cumulative realized loss was recorded as of March 31, 2026 or March 31, 2025.* 

The following table represents the Company's crypto asset holdings. The cost basis of bitcoin represents the valuation at the time the Company earns bitcoin through mining activities:

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| | | |
|:---|:---|:---|
|  | **March 31, <br> 2026** | **December 31,<br> 2025** |
| Quantity of bitcoin held | 2816 | 2719 |
| Cost basis of bitcoin held | $240443 | $232982 |
| Fair value of bitcoin held | $192085 | $237947 |

---

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**NOTE 4. PROPERTY AND EQUIPMENT, NET**

Property and equipment consisted of the following (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31, <br> 2025** |
| Mining equipment | $40699 | $79264 |
| Machinery and facilities equipment | 44401 | 55679 |
| Computer equipment | 20 | 20 |
| Construction-in-progress | 2705 | 2513 |
| Building | 32937 | 33992 |
| Land | 1620 | 1620 |
| Land Improvement | 383 | 383 |
| &nbsp;&nbsp;&nbsp;Total cost of property and equipment, net of impairment | $122765 | $173471 |
| Less: Accumulated depreciation | (57036) | (97315) |
| Property and equipment, net | $**65729** | $**76156** |

---

Depreciation expense for property and equipment during the three months ended March 31, 2026 and 2025 was $5.6 million and $16.5 million, respectively.

The Company determined that no indicators of impairment were present during the three months ended March 31, 2026 and 2025.

**NOTE 5. ASSETS HELD FOR SALE**

The Company determined it will not have the capacity at its owned and leased sites to relocate and operate all of the miners it previously operated at its Ward County and hosted facilities. As such, the Company reviewed its population of mining equipment to determine which units would be decommissioned and disposed. In addition, the conversion of the Ward County facility to accommodate the leasing arrangement necessitated the sale of certain building materials and machinery and facilities equipment previously in service at that location. As of February 19, 2026, the Company approved a formal plan of sale and is pursuing liquidation of various property and equipment that is not expected to be placed back into service.

Assets held for sale consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Miners** | **Building** | **Machinery<br> and Facility<br> Equipment** | **Total** |
| Balance as of December 31, 2025 | $— | $— | $— | $— |
| Transfer from Property and equipment, net | 1761 | 316 | 2901 | 4978 |
| Sold during the period | (89) | (224) | (1362) | (1675) |
| Change in fair value of assets held for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets held for sale as of March 31, 2026 | $1672 | $92 | $1539 | $3303 |
| Gain (loss) on sale of assets classified as held for sale | $(52) | $118 | $250 | $316 |

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**NOTE 6. OTHER RECEIVABLES**

The Company contracted with data center operators for hosting its mining equipment and for operational support. These arrangements required advance payments to the operators pursuant to the contractual obligations associated with these services. At the time the contract terminates, any remaining balances are due to the Company, and such amounts are recorded as Other receivables, either current or non-current, in the Condensed Consolidated Balance Sheets, depending upon the term of the contract over which the deposits are expected to be recovered.

Other receivables, current and non-current, consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31, <br> 2025** |
| Current assets: |  |  |
| Receivable from former hosting partners | $— | $15328 |
| Unbilled lease revenue receivable | 3959 |  |
| Other receivables | 4558 | 245 |
| Less: Allowance for credit losses |  | (5113) |
| &nbsp;&nbsp;&nbsp;Total other receivables, current | $8517 | $10460 |
| Receivable from former hosting partners | 3696 | 3696 |
| Less: Allowance for credit losses | (3326) | (3326) |
| &nbsp;&nbsp;&nbsp;**Total other receivables, non-current** | $370 | $370 |

---

Based on management's assessment of the age of the amounts receivable and the financial viability of the debtor, the Company records a provision for credit losses related to its short and long-term receivables. During the three months ended March 31, 2026 and 2025 the Company recorded no provision for credit losses related to its short and long-term receivables.

The following table presents the activity in the Company's allowance for credit losses (*in thousands*):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31,<br> 2026** | **Three Months Ended**<br> **March 31, <br> 2025** |
| Beginning balance | $8439 | $2445 |
| Write-offs | (5113) |  |
| Ending balance | $3326 | $2445 |

---

**NOTE 7. LEASES**

*Lessor Arrangements: Digital Infrastructure Leasing Revenue*

On October 14, 2025, the Company entered into a leasing arrangement to provide digital infrastructure solutions to a single tenant at its Ward County facility which is accounted for under ASC 842. The lease commencement date is December 19, 2025, and the lease term extends through January 2037. The lessee has one ten-year option to renew, as well as a right of first refusal on any additional power capacity that comes available at our Ward County site. In February 2026, the Company reached an agreement to amend the lease of its Ward County facility. The amended agreement obligates the tenant to lease an additional 89 MW of capacity when such capacity becomes available, and requires the Company to add the tenant as a qualified occupant for Texas data center tax incentive purposes.

The Company is the lessor in this arrangement and identifies the right of the customer to use the land, land improvements, buildings, and equipment as a lease component of the contract. The amendment represents a separate contract under ASC 842, as the assets leased will be in addition to those covered in the original agreement. Control of the assets leased per the amendment has not yet transferred to the tenant; as such, no revenue has been recognized.

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In both agreements, the Company has a stand-ready obligation to provide maintenance services to ensure the energy step-down transformation assets are operating reliably, which has been identified as a non-lease component of the arrangement. The Company determined that the lease component represents an operating lease, and the timing of Ionic's transfer of the aforementioned lease and non-lease components of the contract are the same. As such, and in accordance with ASC 842, the Company has elected the practical expedient to combine the accounting of the lease and non-lease components of the contract, with the predominant component of the arrangement being the lease component. Thus, the Company accounts for its lease of the Ward County property in accordance with ASC 842. The lease is classified as an operating lease, and leasing revenue is recognized on a straight-line basis over the lease term. Fixed lease payments are allocated to the combined lease components under the arrangement and total $1,949.0 million. Other variable operating costs are paid for by the Company but consumed by the lessee and will be recognized as incurred. There were $0.1 million in variable lease payments received during the three months ended March 31, 2026, and no variable lease payments received during the three months ended March 31, 2025.

Utility services to be provided under the arrangements represent a separate non-lease component that will not be combined with the lease component for accounting purposes, but instead will be accounted for in accordance with ASC 606. Non-lease components are recorded in Other revenue in the Condensed Consolidated Statements of Operations.

Reimbursements for taxes and insurance, as well as the Company's obligation to add the tenant as a qualified occupant for Texas data center tax incentive purposes, are considered non-components of the lease and are accounted for separately.

Initial direct costs of $7.5 million are deferred and recognized over the lease term in accordance with ASC 842. Amortization of initial direct costs is presented in Cost of digital infrastructure solutions revenue, exclusive of depreciation in the Condensed Consolidated Statements of Operations.

The following table summarizes the classes of the Company's underlying leased assets, which are included within Property and equipment, net in the Condensed Consolidated Balance Sheets:

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| | | |
|:---|:---|:---|
|  | **March 31, <br> 2026** | **December 31,<br> 2025** |
| Machinery and facilities equipment | $26414 | $26414 |
| Land | 1020 | 1020 |
| Building | 32933 | 32933 |
| Land Improvement | 383 | 383 |
| Total cost of underlying leased assets | 60750 | 60750 |
| Less: accumulated depreciation | (9367) | (7877) |
| **Underlying leased assets, net** | $51383 | $52873 |

---

Depreciation expense for the underlying leased assets for the three months ended March 31, 2026 was $1.5 million. There was no depreciation expense for the three months ended March 31, 2025.

The amounts presented below represent fixed lease payments to be received by the Company under the lease agreement as of March 31, 2026 and excludes variable lease payments, which are recognized as revenue in the period in which they occur:

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| | |
|:---|:---|
|  | **Operating<br> Leases** |
| Remainder of 2026 | $29250 |
| 2027 | 135233 |
| 2028 | 178718 |
| 2029 | 182520 |
| 2030 | 182520 |
| Thereafter | 1195824 |
| **Total future minimum receipts on lessor arrangement** | $1904065 |

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*Lessee Arrangements*

Ionic Digital's lease arrangements primarily consist of operating leases for land for the purpose of running data center facilities used for cryptocurrency mining. Certain leases include options to renew for periods ranging from one month to ten years, which are included in the measurement of the right-of-use asset and lease liability when the Company determines it is reasonably certain that the renewal option will be exercised. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term determinable at the lease commencement date. Variable lease payments include amounts paid by the Company for the right to use an asset that vary because of changes in facts and circumstances occurring after the commencement date, such as energy consumption or revenue generation. Variable lease payments not based on an index or rate, such as those based on usage or performance, are excluded from the measurement of the right-of-use asset and lease liability and are recognized as lease expense in the period incurred. The Company has no finance leasing arrangements.

The Company leases the land at two of our Midland sites. The following table presents the Company's right-of-use assets, which are included within Deposits and other non-current assets in the Condensed Consolidated Balance Sheets, and lease liabilities, which are included in Accrued expenses and other current liabilities and Non-current portion of lease liability:

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| | | |
|:---|:---|:---|
|  | **March 31, <br> 2026** | **December 31, <br> 2025** |
| Operating lease right-of-use assets | $414 | $429 |
| Operating lease liabilities, current | 39 | 38 |
| Operating lease liabilities, non-current | 173 | 170 |
| Total lease liabilities | $212 | $208 |

---

Two of the Company's lease agreements are based entirely on variable payments. The lease expense disclosed herein related to the mining facility in Georgia represents an amount allocated between the lease and non-lease components of the Company's hosting agreement with EZB, which terminated in June 2025. In addition, the Company has several short-term equipment rental agreements for which it elects the practical expedient not to record the right-of-use asset and lease liability on the Condensed Consolidated Balance Sheet.

The components of total lease cost recorded in the Condensed Consolidated Statements of Operations are as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31, 2026** | **Three Months Ended**<br> **March 31, 2025** |
| Fixed lease cost | $19 | $19 |
| Variable lease cost | 11 | 61 |
| &nbsp;&nbsp;&nbsp;Operating lease expense | 30 | 80 |
| Short-term lease expense | 73 | 99 |
| &nbsp;&nbsp;&nbsp;Total operating lease expense | $103 | $179 |

---

Additional supplemental operating lease information is as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31, <br> 2026** | **Three Months Ended**<br> **March 31,<br> 2025** |
| Weighted average remaining lease term | 6.08 | 7.08 |
| Weighted-average discount rate <sup>(1)</sup> | 7% | 7% |

---

<sup>(1)</sup> *As the rate implicit in the leases was not readily determinable, the incremental borrowing rate at the lease commencement was used to determine the present value of minimum lease payments.*

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As of March 31, 2026, maturities of Ionic Digital's operating lease liability, which do not include variable lease payments, are as follows:

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| | |
|:---|:---|
|  | **Operating <br> Leases** |
| Remainder of 2026 | $39 |
| 2027 | 41 |
| 2028 | 42 |
| 2029 | 43 |
| 2030 | 44 |
| Thereafter | 46 |
| &nbsp;&nbsp;&nbsp;Total undiscounted future lease payments | 255 |
| Less: present value discount | (43) |
| &nbsp;&nbsp;&nbsp;Present value of operating lease liabilities | $212 |

---

**NOTE 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

Accrued expenses and other current liabilities represent management's best estimates of liabilities incurred that are expected to be settled in the normal course of business within twelve months. Actual amounts paid may differ from estimated accruals due to timing of invoice receipt, final contractual terms, or changes in service usage. Differences between accrued amounts and actual payments are recognized in the period in which such information becomes available.

Accrued expenses and other current liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31, <br> 2026** | **December 31, <br> 2025** |
| Accrued professional fees | $1472 | $1174 |
| Accrued capital expenditures | 703 | 827 |
| Taxes payable | 424 | 662 |
| Payable to former hosting partner |  | 5115 |
| Accrued costs to decommission owned mining site | 3892 | 3384 |
| Initial direct leasing costs payable | 2500 | 5000 |
| Other accrued expenses | 2130 | 2997 |
| &nbsp;&nbsp;&nbsp;**Total accrued expenses and other current liabilities** | $**11121** | $**19159** |

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**NOTE 9. GOODWILL**

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. The Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. These indicators may include, but are not limited to, a significant adverse change in the regulatory or business climate, a significant increase in expected future development costs, or a tenant default on the lease contract.

During the three months ended March 31, 2026 and 2025, the Company performed a qualitative assessment of relevant events and circumstances, considering, among other factors, macroeconomic conditions, industry and market considerations, and the Company's overall financial position. As of March 31, 2026, the Company's goodwill related to its digital infrastructure solutions reporting unit, and the Company's qualitative assessment of relevant events and circumstances indicated it is not more likely than not that the fair value of its digital infrastructure solutions reporting unit was less than its carrying amount, and therefore a quantitative impairment test was not required at that time. No impairment charges related to goodwill were recognized during the three months ended March 31, 2026 and 2025.

The following table shows the Company's activity in goodwill, by reporting unit, for the current year:

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| | | | |
|:---|:---|:---|:---|
|  | **Cryptocurrency<br> Mining** | **Digital<br> Infrastructure** | **Total<br> Goodwill** |
| **Balance as of December 31, 2025** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $161608 | $161608 |
| &nbsp;&nbsp;&nbsp;Acquisitions |  |  | **—** |
| &nbsp;&nbsp;&nbsp;Impairment |  |  | **—** |
| **Balance as of March 31, 2026** | $— | $161608 | $161608 |

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**NOTE 10. SHARE-BASED COMPENSATION**

On January 31, 2024, the Company adopted the Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other share-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. The number of shares of Common Stock available under the plan is initially limited to 4,317,960 shares. The share limit automatically increases by 4% all shares outstanding on January 1 of each calendar year beginning in 2025, unless a smaller number of shares is determined by the Board of Directors. As of March 31, 2026, the Company has reserved approximately 6,205,304 shares (subject to an evergreen) under the Omnibus Plan.

*Restricted Stock Units*

During the three months ended March 31, 2026, the Company granted share-based awards in the form of RSUs under the Omnibus Plan, which vest over a five-year period in equal installments, with one-fifth vesting on each of the first five anniversaries of the grant. These awards are classified as equity awards and are measured at fair value on the grant date. Compensation cost related to the RSUs is recognized on a straight-line basis over the applicable service periods and is recorded within general and administrative expenses, with a corresponding increase to additional paid in capital.

The following table summarizes the Company's RSU activity:

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| | | |
|:---|:---|:---|
|  | **Number of <br> Shares** | **Weighted-Average<br> Grant <br>Date Fair Value** |
| Unvested, January 1, 2026 | 411125 | $35.34 |
| &nbsp;&nbsp;&nbsp;Granted | 32712 | 29.78 |
| Unvested, March 31, 2026 | 443837 | $34.93 |

---

The fair value of RSUs granted during the three months ended March 31, 2026 was determined using the fair value of the Company's common stock on the grant date, a weighted average market value per common share of $29.78 The market value per common share was adjusted using a discount for lack of marketability calculated using a weighted average expected term of 2.5 years, a weighted average expected volatility of 98.6%, and a dividend yield of 0.0%.

*Performance Restricted Stock Units*

The Company also granted equity-based awards under the Omnibus Plan in the form of performance restricted stock units ("PRSUs"). These awards are classified as equity awards and vest upon the achievement of a service condition of six months of continuous employment after achievement of market conditions established by the Compensation Committee of the Board as of the grant date, which is based on the achievement of certain market capitalization goals. The number of shares earned total one-third of the awards granted based on achievement of the performance condition. The fair value of these PRSUs was determined using a Monte Carlo simulation incorporating the grant-date market value per common share. The resulting fair values were then adjusted using a discount for lack of marketability that considered a weighted average expected term of 1.9 years, a weighted average expected volatility of 90.3%, and a dividend yield of 0.0%. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes.

The following table summarizes the Company's PRSU activity:

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| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Weighted-Average <br> Grant <br>Date Fair Value** |
| Unvested, January 1, 2026 | 560625 | $34.50 |
| &nbsp;&nbsp;&nbsp;Granted | 98136 | $30.51 |
| Unvested, March 31, 2026 | 658761 | $33.91 |

---

Total share-based compensation expense for the three months ended March 31, 2026 was $6.4 million. There was no share-based compensation expense for the three months ended March 31, 2025. Unrecognized share-based compensation expense was $27.9 million as of March 31, 2026, with a remaining weighted average vesting period of 1.2 years.

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**NOTE 11. EARNINGS PER SHARE**

Basic earnings per share of Class A common stock is calculated by dividing Net loss by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings per share is computed similarly except the weighted average shares outstanding are increased to include the assumed exercise of any common stock equivalents using the treasury stock method, if dilutive.

The Company's potentially dilutive equity instruments are primarily instruments in the form of RSUs and PRSUs. As of March 31, 2026, outstanding shares of performance restricted stock units and restricted stock units in aggregate of 1,102,598 have been excluded from the calculation of diluted earnings per share as such securities were anti-dilutive. There were no potentially dilutive equity instruments as of March 31, 2025.

The following table summarizes the calculation of the Company's basic earnings per share of Common stock (*in thousands, except per share data*):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,<br> 2026** | **March 31,<br> 2025** |
| Numerator |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(12984) | $(28031) |
| Denominator |  |  |
| &nbsp;&nbsp;&nbsp;Weighted-average Class A common stock outstanding, basic | 37374261 | 37374261 |
| Basic and dilutive net loss per share, Class A common stock | $(0.35) | $(0.75) |

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**NOTE 12. INCOME TAXES**

*Income Tax in Interim Periods*

The Company records its income tax expense or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. The income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised.

For the three months ended March 31, 2026 and 2025, the Company recorded income tax benefit (including discrete items) of $16.3 million and $7.4 million, respectively.

***Effective Tax Rate***

The Company's effective tax rate (including discrete items) was 55.7% and 20.9% for the three months ended March 31, 2026 and 2025, respectively. The effective tax rate for the three months ended March 31, 2026 differed significantly from the U.S. federal statutory rate of 21% primarily due to the establishment during the quarter of a valuation allowance against the deferred tax asset associated with unrealized losses on cryptocurrency holdings, which reduced the future tax benefit otherwise available from such losses, as well as non-deductible officer compensation, which represents a permanent difference that reduces the overall tax benefit.

During the three months ended March 31, 2026, the Company evaluated all available evidence and concluded that it was more likely than not that the benefit associated with its unrealized losses on cryptocurrency may not be realized. Under ASU 2023-08, changes in the fair value of cryptocurrency are recognized through earnings but are not taxable until disposition, at which point the resulting losses would be capital in character and available only to offset capital gains. The Company does not currently anticipate generating capital gains in sufficient amount within the applicable carryforward period to permit realization of the deferred tax asset. The Company accordingly established a valuation allowance against that deferred tax asset, which represented the most significant valuation allowance movement during the quarter. The Company also recorded incremental valuation allowance against the deferred tax assets associated with most of its state net operating losses subject to expiration and a portion of its indefinite-lived state net operating losses, consistent with the Company's recent cumulative loss position and the related limitations on its ability to support future taxable income. The Company's total valuation allowance was $12.2 million as of March 31, 2026. As of March 31, 2025, the Company had no valuation allowance recorded.

[**Table of Contents**](#C_001)

*Uncertain Tax Positions*

The Company files federal and state income tax returns. The 2024-2025 tax years generally remain subject to examination by the Internal Revenue Service and various state taxing authorities, although the Company is not currently under examination by any jurisdiction. As of March 31, 2026 and 2025, the total amount of unrecognized tax benefits was $0.8 million and $0.4 million, respectively. If recognized, these tax benefits would affect the Company's effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense. During the three months ended March 31, 2026, the Company recorded an immaterial amount of discrete tax expense, inclusive of interest and penalties. During the three months ended March 31, 2025 the Company recorded a discrete tax expense of $0.1 million and did not recognize any interest or penalties.

**NOTE 13. COMMITMENTS AND CONTINGENCIES**

*Commitments – Purchase agreements*

In the normal course of business, the Company enters into non-cancellable purchase commitments with various parties, primarily for purchases of mining equipment. As of March 31, 2026 and December 31, 2025, the Company had no outstanding non-cancellable purchase commitments.

*Contingencies* 

The Company is subject to legal proceedings arising in the ordinary course of business. The Company accrues losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued and could materially adversely affect the Company's business, cash flows, results of operations, financial condition, and prospects. Unless otherwise indicated, the Company is unable to estimate reasonably possible losses in excess of any amounts accrued.

*Mawson Infrastructure Group*

On February 23, 2022, Celsius Mining entered into a Co-Location Agreement with Luna Squares LLC, a subsidiary of Mawson Infrastructure Group., Inc., a bitcoin miner and public Company listed on the NASDAQ (collectively, "Mawson"), under which Mawson hosted miners owned by Celsius Mining at Mawson's facility in Midland, Pennsylvania. On August 23, 2023, the agreement expired. Following expiration, Mawson failed to return Celsius Mining's $15.3 million deposit to Celsius Mining and Celsius Mining failed to pay $5.1 million in Mawson invoices. Celsius Mining initiated an adversary complaint against Mawson in the Bankruptcy Court seeking return of the amounts owed to it under the Co-Location Agreement, to offset the unpaid invoices against the deposit, and other damages suffered by Celsius Mining due to breaches of the contract. In February 2026, the Company entered into a settlement that finalized the Mawson matter and resulted in a $5.1 million payment to the Company.

**NOTE 14. BUSINESS SEGMENT DATA**

Selected financial and descriptive information is provided about reportable operating segments, considering a "management approach" concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the Company for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the Company's internal organization, focusing on financial information that the Company's Chief Executive Officer ("CEO"), who is the Chief Operating Decision Maker ("CODM"), uses to make decisions about the Company's operating matters.

With the execution of the agreement to lease the Ward County facility, the CODM began considering resource allocations and investments in Company operations separately between the historical cryptocurrency mining business and the Company's powered land and assets for use in the digital infrastructure sector. As such, the Company has determined it has two reportable segments: Cryptocurrency Mining and Digital Infrastructure Solutions. Each are individually managed and provide separate services. Revenues by segment represent revenues earned from the services offered within each segment. The Company does not report results by geographic region, as all of its operations are domestic. All revenues are generated through external customers, and the accounting policies applied to each reportable segment are consistent with those policies described in Note 2.

The primary metric reviewed by the CODM is adjusted gross profit, and this metric is reviewed to evaluate the Company's operating results, its business strategies, and to determine resource allocation. The Company defines adjusted gross profit as revenues less cost of revenues applicable to each reportable segment, exclusive of depreciation.

[**Table of Contents**](#C_001)

The following tables present financial information for the Company's reportable segments for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31, 2026** | **Three Months Ended**<br> **March 31, 2025** |
| **Cryptocurrency Mining Segment** | | |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining revenue | $7401 | $41081 |
| &nbsp;&nbsp;&nbsp;Less significant segment expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy costs | 2260 | 13312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Labor expense | 1228 | 1706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hosting and revenue share expense | 1944 | 9421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance and other facility expenses | 171 | 774 |
| &nbsp;&nbsp;&nbsp;Cost of cryptocurrency mining revenue, exclusive of depreciation | 5603 | 25213 |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining adjusted gross profit | $1798 | $15868 |
| **Digital Infrastructure Segment** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital infrastructure leasing revenue | $43955 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenue | 84 |  |
| &nbsp;&nbsp;&nbsp;Digital infrastructure revenue | 44039 |  |
| &nbsp;&nbsp;&nbsp;Cost of digital infrastructure solutions revenue, exclusive of depreciation | 465 |  |
| &nbsp;&nbsp;&nbsp;Digital infrastructure solutions adjusted gross profit | $43574 | $— |
| **Consolidated** |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining revenue | $7401 | $41081 |
| &nbsp;&nbsp;&nbsp;Digital infrastructure revenue | 44039 |  |
| &nbsp;&nbsp;&nbsp;Consolidated total revenue | $51440 | $41081 |
| **Reportable segments' total adjusted gross profit** | $45372 | $15868 |
| &nbsp;&nbsp;&nbsp;Depreciation | 5576 | 16457 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 16241 | 7111 |
| &nbsp;&nbsp;&nbsp;Loss on fair value of cryptocurrency assets | 53323 | 45448 |
| &nbsp;&nbsp;&nbsp;Realized (gain) on sale of cryptocurrency assets |  | (17614) |
| &nbsp;&nbsp;&nbsp;(Gain) on disposal of property and equipment | (303) | (19) |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 187 | 250 |
| &nbsp;&nbsp;&nbsp;Interest (income) | (327) | (341) |
| Loss before provision for income taxes | $(29325) | $(35424) |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br> **March 31,<br> 2026** | **Three Months Ended**<br> **March 31,<br> 2025** |
| **Depreciation Expense** | | |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining segment | $4090 | $16457 |
| &nbsp;&nbsp;&nbsp;Digital Infrastructure solutions segment | 1486 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total depreciation expense** | $5576 | $16457 |
| **Capital Expenditures** |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining segment | $13 | $3324 |
| &nbsp;&nbsp;&nbsp;Digital Infrastructure solutions segment | 178 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Capital Expenditures** | $191 | $3324 |

---

The following table presents total assets for the Company's reportable segments, all of which are held in the United States, for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31, <br> 2025** |
| Cryptocurrency mining segment | $293208 | $345313 |
| Digital infrastructure solutions segment | 260822 | 259691 |
| **Total Assets** | $**554030** | $**605004** |

---

[**Table of Contents**](#C_001)

**NOTE 15. SUBSEQUENT EVENTS**

Management has evaluated subsequent events through June 29, 2026, the date the condensed consolidated financial statements were available to be issued.

In April and May 2026, the Board of Directors authorized the issuance of approximately 126,000 RSUs, and approximately 378,000 PRSUs, to 3 employees, under terms consistent with prior grants.

In April 2026, the Company entered into a binding agreement to purchase transformers to expand its substation at the Ward County site for approximately $15 million. The Company expects to fund the commitment using available cash.

On June 26, 2026, we sold, in a private placement transaction (the "Private Placement") pursuant to securities purchase agreements (the "Securities Purchase Agreements"), an aggregate of (i) 7,547,166 shares of Series A convertible preferred stock, par value $0.00001 per share (the "Series A Preferred Stock"), at a price of $53.00 per share, (ii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $63.60 per share, (iii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $74.20 per share, and (iv) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $87.45 per share (the warrants described in clauses (ii) through (iv), collectively, the "Warrants") to certain institutional accredited investors (the "Investors") for an aggregate purchase price of $400.0 million before an estimated $16.8 million in transaction fees.

The Series A Preferred Stock is convertible into Class A common stock (i) at the option of the holder and (ii) automatically in the event we complete our listing on Nasdaq or another national securities exchange, complete a merger or other transaction that results in our or the surviving company's common equity being listed on Nasdaq or another national securities exchange, or complete a firm commitment underwritten public offering of our Class A common stock. The Investors have agreed that, with the exception of 2% of each tranche of the Warrants, they will not transfer or otherwise dispose of the Series A Preferred Stock, the Class A common stock issued upon conversion of the Series A Preferred Stock, the Warrants, or the shares of Class A common stock issuable upon exercise of the Warrants at a price of less than $70.00 per share until six months after our securities are first listed on Nasdaq or another national securities exchange.

In June 2026, we also issued 40,000 shares of Series Z Preferred Stock for an aggregate of $0.40 in proceeds. The shares of Series Z Preferred Stock have 1,000 votes per share of Series Z Preferred Stock, but do not have any economic rights with respect to dividends, liquidation or otherwise. The holder of the Series Z Preferred Stock has agreed that it will vote such stock in the same proportion as votes cast by holders of the Class A common stock on any matter submitted to stockholders at our 2026 annual meeting of stockholders. The shares of Series Z Preferred Stock will be automatically redeemed for $0.40 in the aggregate following the conclusion of our 2026 annual meeting of stockholders, which is scheduled to occur on July 13, 2026. The Series Z Preferred Stock is intended to ensure the presence of a quorum to conduct an annual meeting of stockholders within the time period required by Delaware law.

No amounts related to these events have been recognized in the accompanying condensed consolidated financial statements as of the balance sheet date.

[**Table of Contents**](#C_001)

**Report of Independent Registered Public Accounting Firm**

Shareholders and Board of Directors

Ionic Digital Inc.

Washington, District of Columbia

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Ionic Digital Inc. (the "Company") as of December 31, 2025 (Successor) and 2024 (Successor), the related consolidated statements of operations, changes in equity (deficit), and cash flows for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor), 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, 2025 (Successor) and 2024 (Successor), and the results of its operations and its cash flows for the year ended December 31, 2025 (Successor), the eleven months ended December 31, 2024 (Successor), and the one month ended January 31, 2024 (Predecessor)**,** 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 audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 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 audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the 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 audits 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 audits provide a reasonable basis for our opinion.

/s/ BDO USA, P.C.

We have served as the Company's auditor since 2024.

Los Angeles, California

May 1, 2026

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**IONIC DIGITAL INC.**

**CONSOLIDATED BALANCE SHEETS**

**AS OF DECEMBER 31, 2025 AND 2024**

(in thousands of $ US, except share data)

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $43510 | $48393 |
| &nbsp;&nbsp;&nbsp;Cryptocurrency assets | 237947 | 223438 |
| &nbsp;&nbsp;&nbsp;Other receivables, current (net of $5.1 million and $0.7 million allowance for credit losses, <br> respectively) | 10460 | 2849 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 11427 | 9156 |
| Total current assets | 303344 | 283836 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 76156 | 286835 |
| &nbsp;&nbsp;&nbsp;Deferred initial direct leasing costs | 6803 |  |
| &nbsp;&nbsp;&nbsp;Other receivables, non-current (net of $3.3 million and $1.7 million allowance for credit losses, respectively) | 370 | 13609 |
| &nbsp;&nbsp;&nbsp;Deposits and other non-current assets | 2253 | 3835 |
| &nbsp;&nbsp;&nbsp;Goodwill | 161608 | 229778 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets, net | 54470 |  |
| Total non-current assets | 301660 | 534057 |
| **TOTAL ASSETS** | $**605004** | $**817893** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Deferred digital infrastructure leasing revenue | 39793 |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | 1720 | 2454 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 19159 | 10134 |
| Total current liabilities | 60672 | 12588 |
| Non-current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities, net |  | 12080 |
| &nbsp;&nbsp;&nbsp;Non-current portion of lease liability | 170 | 194 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | 755 | 5401 |
| Total non-current liabilities | 925 | 17675 |
| **TOTAL LIABILITIES** | $**61597** | $**30263** |
| Commitments and contingencies (Note 17) |  |  |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.00001 par value, 15,000,000 shares authorized, none issued and outstanding as of December 31, 2025 and 2024 | $— | $— |
| &nbsp;&nbsp;&nbsp;Class A common stock, $0.00001 par value, 1,000,000,000 shares authorized, 37,374,261 shares issued and outstanding as of December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 750985 | 747485 |
| &nbsp;&nbsp;&nbsp;Retained earnings (Accumulated deficit) | (207578) | 40145 |
| **TOTAL STOCKHOLDERS' EQUITY** | $**543407** | $**787630** |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $**605004** | $**817893** |

---

*See accompanying Notes to Consolidated Financial Statements.*

[**Table of Contents**](#C_001)

**IONIC DIGITAL INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR THE PERIODS ENDED** 

(in thousands of $ US, except per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
|  | **Year Ended**<br>**December 31, 2025** | **Eleven Months** <br> **Ended**<br>**December 31, 2024** | **One Month** <br> **Ended**<br>**January 31, 2024** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp;Digital infrastructure leasing | 5837 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $**141398** | $**138428** | $**15381** |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of mining revenues, exclusive of depreciation | 87976 | 90486 | 9668 |
| &nbsp;&nbsp;&nbsp;Cost of digital infrastructure solutions revenues, exclusive of depreciation | 22 |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 49026 | 40600 | 2633 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on fair value of cryptocurrency | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp;Realized gain on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 999 | 1105 | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 452764 | 96950 | 20172 |
| **Operating income (loss)** | $**(311366)** | $**41478** | **(4791)** |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 1215 | 1885 |  |
| &nbsp;&nbsp;&nbsp;Realized loss on cryptocurrency derivatives | (204) |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on energy derivatives |  |  | (159) |
| &nbsp;&nbsp;&nbsp;Realized gain on investments |  | 2422 |  |
| &nbsp;&nbsp;&nbsp;Gain (loss) on litigation settlement | (3429) | 6817 |  |
| &nbsp;&nbsp;&nbsp;Other expenses |  | (152) |  |
| &nbsp;&nbsp;&nbsp;Reorganization items, net |  |  | (5416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | (2418) | 10972 | (5575) |
| Income (loss) before provision for income taxes | (313784) | $52450 | (10366) |
| Provision (benefit) for income taxes | (66061) | 12305 | 22 |
| **Net income (loss)** | $**(247723)** | $**40145** | $**(10388)** |
| Basic and diluted net income (loss) per share | $(6.63) | $1.07 | $(103880) |
| Weighted-average number of outstanding shares used in computing net loss per share, basic and diluted | 37374261 | 37374261 | 100 |

---

*See accompanying Notes to Consolidated Financial Statements.*

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**Ionic Digital Inc.**

**Consolidated StatementS of Changes in Equity (Deficit)**

(in thousands of $ US, except share data)

---

| | | |
|:---|:---|:---|
|  | **Predecessor (Debtor-in-Possession)** | **Predecessor (Debtor-in-Possession)** |
|  | **Members' Equity** | **Members' Equity** |
|  | **Units** | **Amount** |
| **Balance as of December 31, 2023** | **100** | $**(520976)** |
| &nbsp;&nbsp;&nbsp;Cumulative effect of change in accounting principle |  | 655 |
| &nbsp;&nbsp;&nbsp;Capital contribution from parent |  | 832662 |
| &nbsp;&nbsp;&nbsp;Net loss |  | (10388) |
| **Balance as of January 31, 2024** | **100** | $**301953** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** | **Successor** |
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Retained<br> Earnings<br> (Accumulated**<br>**Deficit)** | **Total<br> Stockholders'**<br>**Equity** |
| **Balance as of January 31, 2024** |  | $**—** | $**—** | $**—** | $**—** |
| &nbsp;&nbsp;&nbsp;Class A shares issued | 37374261 |  | 746378 |  | 746378 |
| &nbsp;&nbsp;&nbsp;Class B share issued | 1 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Class B share redeemed | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense |  |  | 1107 |  | 1107 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  | 40145 | 40145 |
| **Balance as of December 31, 2024** | **37374261** | $**—** | $**747485** | $**40145** | $**787630** |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense |  |  | 3500 |  | 3500 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (247723) | (247723) |
| **Balance as of December 31, 2025** | **37374261** | $**—** | $**750985** | $**(207578)** | $**543407** |

---

*See accompanying Notes to Consolidated Financial Statements for further detail.*

[**Table of Contents**](#C_001)

**IONIC DIGITAL INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOW**

(in thousands of $ US)

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor** <br> **(Debtor-in-**<br> **Possession)** |
|  | **Year Ended**<br>**December 31, 2025** | **Eleven Months** <br> **Ended**<br>**December 31, 2024** | **One Month**<br> **Ended**<br>**January 31, 2024** |
| **Cash flow from operating activities** |  |  |  |
| Net income (loss) | $(247723) | $40145 | $(10388) |
| <u>Adjustments required to reconcile net income (loss) to net cash used in operating activities:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;Mining revenue received in bitcoin | (135561) | (138428) | (15381) |
| &nbsp;&nbsp;&nbsp;Hosting costs paid in bitcoin | 591 | 5511 | 730 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 66723 | 42375 | 6216 |
| &nbsp;&nbsp;&nbsp;(Gain) loss in the fair value of cryptocurrency assets | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp;Realized gain on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp;Unrealized loss on energy derivatives |  |  | 159 |
| &nbsp;&nbsp;&nbsp;Realized gain on investments |  | (2422) |  |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense | 74 | 70 | 3 |
| &nbsp;&nbsp;&nbsp;Stock compensation expense | 3500 | 1107 |  |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 5994 | 2445 |  |
| &nbsp;&nbsp;&nbsp;Deferred tax provision (benefit), net | (66550) | 12015 |  |
| <u>Changes in assets and liabilities:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;Other receivables | (623) | (2752) |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (7804) | 10371 | (6123) |
| &nbsp;&nbsp;&nbsp;Deferred initial direct leasing costs | (2500) |  |  |
| &nbsp;&nbsp;&nbsp;Deposits and other non-current assets | 1503 | (62) | (3130) |
| &nbsp;&nbsp;&nbsp;Deferred digital infrastructure leasing revenue | 39793 |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | 2703 | 12178 | (2005) |
| &nbsp;&nbsp;&nbsp;Non-current liabilities | (4684) | 401 |  |
| &nbsp;&nbsp;&nbsp;Other payables to related parties |  |  | 7217 |
| **Net cash used in operating activities** | $**(96525)** | $**(94647)** | $**(21244)** |
| **Cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash received in the acquisition of Predecessor business | **—** | 195743 | **—** |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (11064) | (71617) | (20864) |
| &nbsp;&nbsp;&nbsp;Proceeds from the disposal of property and equipment | 1246 |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of available-for-sale-securities |  | (90002) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of available-for-sale securities |  | 92424 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of cryptocurrency assets | 101460 | 10114 | 8459 |
| **Net cash provided by (used in) investing activities** | $**91642** | $**136662** | $**(12405)** |
| **Cash flow from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of Class A stock |  | 6378 |  |
| **Net cash provided by financing activities** | $**—** | $**6378** | $**—** |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) cash and cash equivalents | (4883) | 48393 | (33649) |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents at the beginning of the period | 48393 |  | 33660 |
| **Cash and cash equivalents at the end of the period** | $**43510** | $**48393** | $**11** |
| **Supplemental schedule of non-cash financing and investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of Class A common stock in exchange for Predecessor business | **—** | 740000 |  |
| &nbsp;&nbsp;&nbsp;Fair value of net assets acquired in a business combination | **—** | 544257 |  |
| &nbsp;&nbsp;&nbsp;Related party debt extinguishment and capital contribution from parent | **—** |  | 832662 |
| &nbsp;&nbsp;&nbsp;Cumulative effect adjustment due to adoption of ASU 2023-08 | **—** |  | 655 |
| &nbsp;&nbsp;&nbsp;Purchase of mining equipment with supplier credits |  | 2930 |  |
| &nbsp;&nbsp;&nbsp;Assumption of liability for the acquisition of property and equipment | 1974 | 3687 |  |

---

*See accompanying Notes to Consolidated Financial Statements for further detail.*

 

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**Ionic Digital Inc.**

**Notes to Consolidated Financial Statements**

($ in thousands, except per share and cryptocurrency asset amounts)

**NOTE 1. Organization** 

**Nature of operations and corporate information**

Ionic Digital Inc. (together with its consolidated subsidiaries, "Ionic Digital," the "Company," or "Successor") was formed on January 5, 2024 to acquire substantially all of the assets and assume certain liabilities of Celsius Mining, LLC ("Celsius Mining" or "Predecessor") pursuant to the Chapter 11 bankruptcy plan of reorganization (the "Plan"), which was confirmed by the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") on November 9, 2023. Pursuant to the Plan, at the close of business on January 31, 2024 (the "Plan Effective Date"), the Company, through its wholly owned subsidiary Ionic Digital Treasury Inc., entered into a Master Conveyance Agreement with Celsius Mining and acquired substantially all the assets and assumed certain liabilities from Celsius Mining (the "Business Combination"). As a result of the Business Combination, the Company initiated its cryptocurrency mining operations, generating revenue through the mining of bitcoin, a digital asset operating on a decentralized, open-source blockchain network.

Subsequent to the Business Combination, the Company solely operated a fleet of application-specific integrated circuit ("ASIC") mining machines ("miners") at both hosted and owned and leased sites facilities. However, on October 14, 2025 the Company entered into a lease arrangement for its Ward County facility (previously referred to as "Cedarvale" in Company communications), resulting in a new operating segment which provides digital infrastructure solutions (refer to *Note 9 – Leases* for additional information). The Company's cryptocurrency mining segment continues to operate four owned and leased sites facilities located in Midland, Texas and one hosted mining site located in Oklahoma.

**Predecessor Bankruptcy Proceedings**

Prior to the Business Combination, Celsius Mining was a wholly owned subsidiary of Celsius US Holding LLC ("Celsius US Holding"), which was a wholly owned subsidiary of Celsius Network Limited, a Company registered in England and Wales ("Celsius UK"). The issued and outstanding shares of Celsius UK were owned by Celsius Network, Inc. (the "Ultimate Parent").

On July 13, 2022 (the "Petition Date"), the Ultimate Parent and its subsidiaries and affiliates, which include Celsius Network, LLC and Celsius Mining (collectively the "Debtors"), each filed voluntary petitions (the "Chapter 11 Cases") in the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") seeking relief under Chapter 11 of the United States code (the "Bankruptcy Code"). The Chapter 11 Cases were jointly administered under the caption *In re Celsius Network LLC, et al., Case No. 22-10964*. Celsius Mining was included in the Chapter 11 proceedings and continued to operate its business as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court through the closing of the Business Combination.

On November 9, 2023, the Bankruptcy Court issued an Order confirming the Plan.

As part of its Chapter 11 process, the Debtors ran a marketing and sale process to identify parties to purchase and/or manage the assets of Celsius Mining. On December 27, 2023, the Bankruptcy Court entered an order granting the joint motion of the Debtors and a committee representing the creditors of the Ultimate Parent and its affiliates and authorizing the proposed transaction in which Ionic Digital acquired certain assets and the related liabilities of Celsius Mining, which subsequently occurred on January 31, 2024 (the "Plan Effective Date").

Refer to *Note 2 – Basis of Presentation and Summary of Significant Accounting Policies* for details regarding the presentation of comparative consolidated financial statements of the Predecessor and Successor.

**Business Combination**

At the close of business on January 31, 2024, the Company acquired substantially all the assets and assumed certain liabilities of Celsius Mining. The Company accounted for the Business Combination in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 805, *Business Combinations*. The Company determined the Business Combination did not meet the criteria for fresh start reporting under ASC 852, *Reorganizations* ("ASC 852"), as the Company was not a debtor in the Plan, was a newly formed entity, and did not assume the liabilities of the debtors beyond those specified in the Plan. See *Note 3 – Business Combination* for a description of the consideration transferred, the assets acquired, and the liabilities assumed.

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

**Basis of Presentation** 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and the rules and regulations of the SEC.

In connection with the Business Combination, the Company was determined to be the legal and accounting acquirer and Celsius Mining was deemed to be the accounting predecessor. The Business Combination was accounted for using the acquisition method of accounting and the Successor's financial statements reflect a new basis of accounting based on the fair value of the net assets acquired. The Successor had no material activity from its inception on January 5, 2024, through the Plan Effective Date of January 31, 2024. As a result, the Company's consolidated financial statements and certain disclosures are separated into two distinct periods to indicate the different ownership and accounting bases between the periods presented: the current year period January 1, 2025 through December 31, 2025; and the prior year period after consummation of the Business Combination, which includes the period from February 1, 2024 through December 31, 2024 (the "eleven months ended December 31, 2024"); and the prior year period before consummation of the Business Combination, which includes the period from January 1, 2024 through January 31, 2024 (the "one month ended January 31, 2024"). Due to the change in the basis of accounting, the consolidated financial statements for the Predecessor and the Successor are not necessarily comparable. Where applicable, a black line separates the Predecessor and Successor periods to highlight the lack of comparability.

The accompanying Predecessor audited consolidated financial statements for the one month ended January 31, 2024 were prepared using discrete financial information and include assets, liabilities, revenues, and expenses directly identifiable to Celsius Mining, as well as indirect costs attributable to Celsius Mining that are derived from the financial statements of the Ultimate Parent. Indirect costs allocated to Celsius Mining represent the costs of support functions provided on a centralized basis by Celsius UK and its affiliates and include, but are not limited to, professional fees, equipment, facilities, taxes, and other administrative functions. The allocation of indirect costs is based on a proportional cost allocation method, primarily revenues, gross profits, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or benefit received by Celsius Mining during the periods presented. Celsius Mining considers that such allocations have been made on a reasonable basis consistent with benefits received but may not necessarily be indicative of the costs that would have been incurred if it operated on a standalone basis.

The Predecessor audited consolidated financial statements included herein also reflect the application of ASC 852,which requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains, and losses that are realized or incurred in the bankruptcy proceedings are recorded in Reorganization items, net on the Consolidated Statements of Operations.

**Principles of Consolidation**

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

***Reclassifications***

Certain prior period amounts have been reclassified to conform to the current period presentation. Specifically, current and non-current amounts refundable to the Company that were previously included in Prepaids and other current assets and Long-term deposits are now separately reported on the Consolidated Balance Sheets as current and non-current other receivables, with a corresponding change in the Consolidated Statement of Cash Flows. These reclassifications had no effect on previously reported net income, total assets, total liabilities, operating cash flows, or stockholders' equity.

**Use of Estimates**

The preparation of the Company's consolidated financial statements in conformity with US GAAP requires management to make estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimates used to review the Company's goodwill allocation and impairment, impairment of long-lived assets, allowance for credit losses, income taxes, and share-based compensation.

Management bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that it believes to be reasonable under the circumstances when these carrying values are not readily available from other sources. Making estimates requires management to exercise significant judgment and it is at least reasonably possible that the estimate of the effect of a condition, situation, or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, actual results may differ materially from those estimates.

**Cash and Cash Equivalents**

Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less. These investments may include money market funds, certificates of deposit, and other short-term instruments.

**Concentrations of Credit Risk**

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. At times throughout the year, the Company may maintain cash balances in certain bank accounts in excess of FDIC limits. The cash balance in excess of the FDIC limits was immaterial as of December 31, 2025. The Company's cash equivalents include investments in money market funds, primarily the Fidelity Investments Money Market Government Portfolio - Institutional Class (FRGXX), which invests at least 99.5% of its assets in cash, U.S. government securities, and repurchase agreements collateralized by such securities. At December 31, 2025, the fair value of these investments was $42.1 million. These funds are not insured by the FDIC but maintain a stable net asset value of $1.00 per share and are subject to SEC diversification and liquidity requirements under Rule 2a-7. The Company has no significant concentrations of credit risk from these holdings beyond U.S. sovereign credit exposure.

The accounts offered by the custodian of the Company's bitcoin are not insured by the FDIC. The uninsured fair value of the Company's bitcoin holdings totaled $237.9 million and $223.4 million as of December 31, 2025 and 2024, respectively. The Company has not experienced any losses in such accounts.

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The Company has certain customers and vendors who individually represent 10% or more of the Company's revenue or capital expenditures.

The Predecessor and the Company mined only one cryptocurrency asset, bitcoin, during the periods presented herein. In the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, cryptocurrency mining revenue is concentrated with one mining pool operator and substantially all bitcoin resides with one custodian.

The Company's digital infrastructure leasing revenue is also currently concentrated with a single customer, with risk offset by a guarantee from the customer's operating partner for the first five years of fixed lease payments.

In addition, during the eleven months ended December 31, 2024, the Company incurred material operating costs and capital expenditures with Hut 8 Corp.'s affiliate companies. Refer to *Note 12 – Related Party Transactions* for further details.

**Investments**

Short-term investments include available-for-sale debt securities, which consist of U.S Treasury securities with original maturities of greater than three months but less than one year when purchased or maturities of one year or less on the reporting date. Investments are recorded at fair value using the specific identification method. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Any unrealized holding gains or losses are reported as accumulated other comprehensive gain or loss, which is a separate component of Stockholders' equity, net of tax, until realized. There were no unrealized gains or losses in the periods presented herein.

The Company assesses available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation, to determine whether it intends to sell, or it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as a write down through earnings.

Ionic Digital invested in U.S. Treasury securities during the eleven months ended December 31, 2024, but the Company held no available-for-sale securities as of December 31, 2025 and 2024, respectively.

**Prepaid Expenses**

The Company records a prepaid expense for costs paid but not yet incurred. Those expected to be incurred within one year are recognized and shown within Current assets on the Company's Consolidated Balance Sheet. Any costs expected to be incurred outside of one year would be included within Deposits and other non-current assets on the Company's Consolidated Balance Sheet.

***Allowance for Credit Losses***

Management estimates an allowance for credit losses using relevant available information from both internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Changes in the allowance for credit losses are recorded within General and administrative expenses, in the Consolidated Statement of Operations.

**Fair Value Measurements** 

The Company accounts for financial assets and liabilities in accordance with ASC 820, *Fair Value Measurement* ("ASC 820"), which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:

● Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.

● Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices included for identical or similar assets and liabilities that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. These are typically obtained from readily available pricing sources for comparable instruments.

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

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

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The following table presents the Company's financial instruments that are measured and recorded at fair value on a recurring basis, and their level within the fair value hierarchy:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** |
|  | | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** |
|  | **Total<br> carrying**<br>**value** | **Level 1** | **Level 2** | **Level 3** |
| Cash and cash equivalents – money market funds | $42135 | $42135 | $— | $— |
| Cryptocurrency assets | $237947 | $237947 | $— | $— |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** |
|  | | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** | **Fair value as of December 31, 2024** |
|  | **Total<br> carrying**<br>**value** | **Level 1** | **Level 2** | **Level 3** |
| Cash and cash equivalents – money market funds | $35941 | $35941 | $— | $— |
| Cryptocurrency assets | $223438 | $223438 | $— | $— |

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The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to the short-term nature of these instruments.

*Assets and liabilities measured and recorded at fair value on a non-recurring basis*

The Company's non-financial assets, such as goodwill, intangible assets, and property and equipment, are adjusted to fair value when an impairment charge is recognized. In measuring impairment of long-lived assets in accordance with the provisions of ASC 360, *Property, Plant, and Equipment*, the Company estimates the fair value of long-lived assets on a non-recurring basis using Level 2 inputs for similar assets in active markets, including market data regarding the value of our ASIC miners, a limited ability to repurpose certain buildings and related materials, and the marketability (or lack thereof) of certain machinery and facilities equipment considering the condition and customized nature of the assets in accordance with the provisions of ASC 820.

In determining the fair value of the assets and liabilities acquired in the Business Combination and in evaluating the fair value of its reporting unit or units when testing goodwill for impairment, the Company considers a combination of the income and market valuation approaches. The income valuation approach uses unobservable inputs including projections of internal cash flows, future bitcoin prices, and the future global hashrate, as well as derived discount and long-term growth rates. The market valuation approach utilizes observable inputs for similar assets and liabilities to estimate valuation multiples. Refer to *Note 11 – Goodwill* for further details.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** | **Successor** |
|  | | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** | **Fair value as of December 31, 2025** |
|  | **Total<br> carrying**<br>**value** | **Level 1** | **Level 2** | **Level 3** |
| Long-lived assets<sup>(1)</sup> | $76585 | $- | $- | $76585 |
| Goodwill | $161608 | $- | $- | $161608 |

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(1) *Long-lived assets include $76.2 million of property and equipment and $0.4 million of ROU assets as of December 31, 2025.* 

***Derivative contracts***

Celsius Mining entered into energy arrangements that resulted in obtaining the right to purchase a fixed amount of energy denominated in megawatt hours at a fixed price. The Company did not extend the energy agreements, which expired in May 2024.

These arrangements were considered derivative contracts under ASC 815, *Derivatives and Hedging* since their value was derived from underlying asset prices, other inputs, or a combination of these factors. The derivative contracts were recognized as either assets or liabilities on the accompanying balance sheets when both the quantity of electricity demand was known and penalties for non-performance under the Mothership Incubator ("MI") Texas Rep Power Agreement became enforceable. The derivative liabilities were offset against prepaid expenses at fair value in accordance with ASC 210-20-45-1. Subsequent changes in fair value were recognized in Other income (expense) in the Consolidated Statement of Operations. Cash flows from derivative contracts were included as Adjustments to reconcile net loss to net cash used in operating activities in the Consolidated Statements of Cash Flow.

Because the Company had the ability to sell its contracted electricity into the Electric Reliability Council of Texas (ERCOT) grid marketplace rather than taking physical delivery for its own use, the Company determined that the scope exception for normal purchases and sales would not be applicable. To establish fair value for energy derivatives, the Company utilized Level 2 inputs, including quoted market prices and forward price curves, to estimate the fair value of energy derivative instruments. Energy derivative valuations are performed using market quotes, adjusted for periods in between quotable periods. Unrealized gains or losses associated with the derivative asset include changes in fair value that were attributable to amendments to the MI Texas Power Agreement, as well as changes to the quoted forward electricity rates. Refer to *Note 7 – Investments and Derivatives* for further information.

A derivative asset or liability related to the MI Texas Rep Power Agreement was recognized in Prepaid expenses and other current assets on the Consolidated Balance Sheet. Subsequent changes in fair value are recorded in Other income (expense) in the Consolidated Statements of Operations. The MI Texas Rep Power Agreement was not designated as a hedging instrument.

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**Cryptocurrency assets**

Cryptocurrency assets held by the Company during the year ended December 31, 2025, the eleven months ended December 31, 2024, and by the Predecessor during the one month ended January 31, 2024, consisted entirely of bitcoin. All cryptocurrency asset holdings are classified as current assets in the accompanying balance sheets due to the Company's ability to sell the cryptocurrency assets in a highly liquid marketplace and its intent to liquidate its cryptocurrency assets to support operations or for treasury management as needed during the normal operating cycle of the Company.

Bitcoin received by the Company through its mining activities is accounted for in connection with the Company's revenue recognition policy disclosed below.

As a result of the adoption of ASU 2023-08, *Intangibles — Goodwill and Other — Cryptocurrency Assets (Subtopic 350-60): Accounting for and Disclosure of Cryptocurrency Assets* ("ASC 350-60") on January 1, 2024, cryptocurrency assets are recorded at fair value. The Company determines the fair value of cryptocurrency assets in accordance with ASC 820. The fair value of bitcoin, which is the only cryptocurrency asset held by the Company since the adoption of ASC 350-60, is measured using the period-end closing bitcoin price from its principal market, Coinbase Global, Inc. ("Coinbase"). The Company utilizes the bitcoin spot price as of 23:59:59 UTC. For the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024, the changes in fair value are recognized as (Gain) loss on fair value of cryptocurrency assets on the Consolidated Statement of Operations.

The proceeds from sales of cryptocurrency assets are included within investing activities in the accompanying Consolidated Statements of Cash Flows, as the Company intends to liquidate its cryptocurrency assets only as needed to cover operating costs and expenses within its operating cycle. In accordance with ASC 350-60, the Company discloses realized gains and losses from the sale of cryptocurrency assets, and such gains and losses are measured as the difference between the cash proceeds and the cost basis of the asset as determined on a First In-First Out basis.

**Property and equipment, net**

Property and equipment is stated at cost less depreciation accumulated using the straight-line method over the estimated useful lives of the assets. Construction-in-progress is the construction or development of assets that have not yet been placed in service for their intended use, and therefore, are not depreciated until the work is completed and the assets are placed in service. Depreciation of mining equipment, machinery and facilities equipment, buildings, and leasehold improvements also commences once assets are placed in service. Land is not depreciated.

Costs of maintenance, repairs, and minor parts replacements are expensed when incurred. Upon the sale or retirement of property and equipment, the cost and accumulated depreciation and amortization are removed from the Company's balance sheets with the resulting gain or loss, if any, reflected in the Company's Consolidated Statements of Operations.

On December 31, 2025, the Company reevaluated the expected useful life of its mining and machinery and facilities equipment based on management's projections of bitcoin price, global hashrate, and cash flows for the mining business. As a result, management adjusted its estimate of the remaining useful lives of the assets to accelerate depreciation on certain equipment. The adjusted estimated useful lives of the assets are as follows:

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| | |
|:---|:---|
|  | **Years** |
| **Computer equipment** | **3** |
| **Mining equipment<sup>(1)</sup>** | **1-3** |
| **Machinery and facilities equipment<sup>(1)(2)</sup>** | **7-20** |
| **Building** | **10-20** |
| **Land Improvement** | **15** |

---

(1) *Considering the conversion of the Ward County facility to support digital infrastructure solutions and the resulting reduced capacity at the Company's owned and leased sites, the Company does not expect certain mining and machinery and facilities equipment to be returned to service. This equipment has been impaired to its estimated residual value as of December 31, 2025 and will not continue depreciating in the future. See further discussion in Note 5 – Property and Equipment, net.* 

(2) *Machinery and facilities equipment primarily includes substations, containers, electrical parts, cables, and transformers.* 

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such asset groups may not be fully recoverable. The asset groups to be held and used that are subject to impairment review represent the lowest level of identifiable cash flows that are largely independent of other groups of assets and liabilities.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to undiscounted future cash flows expected to be generated by the asset group. If such assets are considered unrecoverable, the impairment loss to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the year ended December 31, 2025, the Company recognized an impairment loss of $150.3 million related to the long-lived assets used in its mining operations. No impairment of long-lived assets was recorded during the eleven months ended December 31, 2024. Refer to *Note 5 — Property and equipment, net* for further information*.*

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**Recognition of Cryptocurrency Mining Revenue**

Ionic Digital participates in a third-party operated mining pool to which the Company provides the service of performing hash calculations, an output of the Company's ordinary activities.

The Company recognizes revenue under ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The core principle of this standard is that a Company should recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

Step 1: Identify the contract with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when the Company satisfies a performance obligation

*Step 1:* The Company has identified the third-party mining pool operator as its customer (the "Customer"). The Company enters into a contract with the Customer to provide its hash calculations to the Customer's mining pool. The contracts are terminable without penalty at any time by either party; thus, the contract term is shorter than a 24-hour period and the contracts are continuously renewed.

Applying the criteria per ASC 606-10-25-1, the contract arises at the point that the Company provides hash calculations to the Customer's mining pool, which is considered contract inception, because Customer consumption is in tandem with delivery of the hash calculations.

*Step 2:* To identify the performance obligations in a contract with a customer, a Company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets the definition of a "distinct" good or service (or bundle of goods or services) under ASC 606 if both of the following criteria are met:

● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and

● The entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

The Company has identified a single performance obligation of providing hash calculations for the mining pool operator. The continuous renewal options does not represent material rights because the Company does not provide the Customer with the right to purchase additional goods or services at a discount. Specifically, the contract is renewed with the same terms, conditions, and rate as the current contract, which is consistent with market rates, and there are no upfront or incremental fees in the initial contract. The Company has full control of the mining equipment used in the mining pool, and if the Company determines it will increase or decrease the hashrate (the speed at which mining equipment can perform hash calculations) of its machines and/or fleet (i.e., for repairs or when power costs are excessive), the hashrate provided to the Customer will correspondingly increase or decrease.

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*Step 3:* The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all the following:

● Variable consideration

● Constraining estimates of variable consideration

● The existence of a significant financing component in the contract

● Noncash consideration

● Consideration payable to a customer

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. There are no other forms of variable consideration such as discounts, rebates, credits, price concessions, incentives, performance bonuses, penalties, or other similar items.

In exchange for providing hash calculations the Company is entitled to receive noncash consideration, payable in bitcoin, from the mining pool operator. Bitcoin earned and recognized is variable from day to day based on the payout model. The amount of compensation due to the Company is determined using the Full Pay Per Share ("FPPS") payout model detailed in the mining pool operator contract. FPPS contains three components, (1) a fractional share of the fixed cryptocurrency asset award from the mining pool operator (referred to as a "network block subsidies"), (2) network transaction fees generated from (paid by) blockchain users to execute transactions and distributed (paid out) to individual miners by the mining pool operator, (3) pool operating fees. The Company's total compensation is calculated as the sum of the Company's share of (1) Network Block Subsidies and (2) Network Transaction Fees, less (3) Pool Operating Fees.

"Network Block Subsidies" means the total amount of block subsidies that are expected to be generated on the Bitcoin network during the 24-hour period beginning at 00:00:00 UTC daily (i.e., the measurement period) and ending at 23:59:59 UTC the same day, regardless of whether the mining pool operator successfully records a block to the blockchain.

The Company's share of Network Block Subsidies earned for each measurement period is determined by dividing (a) the total amount of hashrate Ionic Digital provides to the mining pool operator, by (b) the total Bitcoin network's implied hashrate (as determined by the Bitcoin network difficulty), multiplied by (c) the Network Block Subsidies.

"Network Transaction Fees" means the total amount of transaction fees that are generated on the Bitcoin network during the measurement period.

The Company's share of Network Transaction Fees earned for each measurement period is determined by dividing (a) the total amount of Network Transaction Fees, by (b) the total amount of Network Block Subsidies that are generated on the Bitcoin network, multiplied by (c) Ionic Digital's share of Network Block Subsidies.

"Pool Operating Fees" means the fees charged by the mining pool operator for operating the mining pool as set forth on a rate schedule to the mining pool contract. The Pool Operating Fees reduce the total amount of compensation the Company receives and are only incurred to the extent that it has generated mining revenue during the measurement period.

The Customer provides services solely for bitcoin mining and the fees charged during the most recent fiscal year end were 0.16% of the total daily bitcoin mined. The Pool Operating Fees represent consideration paid to the Customer; therefore, since the Company does not receive a distinct good or service from the mining pool operator in exchange for the fees paid, the Pool Operating Fees are reported as a reduction in revenue.

For each contract, the Company measures the consideration at fair value based on the quoted price of bitcoin at the 00:00:00 UTC spot price on the date of contract inception, as determined by the Company's principal market, Coinbase. The Company recognizes this noncash consideration on the same day that control of the contract service transfers to the mining pool operator, which is the same day as contract inception.

Daily settlements are made to the Company by the Customer based on the hash calculations provided over the contract periods over a 24-hour period and the payout is made the following day.

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There is no significant financing component, deferred revenue, or other obligations in these transactions since there are no payments in advance of the performance, and there are no remaining performance obligations after providing hash calculations.

*Step 4:* The transaction price is allocated to the single performance obligation of providing hash calculations to the customer.

*Step 5*: The Company's performance is completed over time as the customer obtains control of the contributed hashrate. The performance obligation of hash calculations is fulfilled over time, as opposed to a point in time, because the Company provides the hash calculations throughout the contract period and the customer simultaneously obtains control of the service and uses it to produce bitcoin.

***Recognition of leasing revenue***

The Company generates revenue from an agreement to provide digital infrastructure solutions at its Ward County facility. The arrangement has both lease and non-lease components, and the arrangement will primarily be accounted for in accordance with ASC 842, *Leases* ("ASC 842"), while certain non-lease components will be accounted for in accordance with ASC 606.

See further discussion in *–Leases* herein, as well as in *Note 9 – Leases*.

**Cost of mining revenues, exclusive of depreciation**

The Company's cost of mining revenue, exclusive of depreciation, consists primarily of direct costs of earning bitcoin related to mining operations, including electric power costs, hosting costs, occupancy, materials, and labor.

In the year ended December 31, 2023, Celsius Mining entered into four revenue share agreements, which are detailed below. Each of the revenue sharing agreements entitles the counterparty to non-cash consideration for the block rewards and transaction fees paid in bitcoin. The value of the bitcoin paid to the counterparties is determined using a first-in-first-out value of the bitcoin held. As detailed below, certain of these hosting agreements were conveyed to Ionic Digital in connection with the Business Combination.

*Master Colocation Services Agreement with Global [X] Digital, LLC*

On February 12, 2023, Celsius Mining entered into a master colocation services agreement with Global[X]Digital, LLC ("GXD") to host approximately 17,000 miners owned by Celsius Mining at GXD's Oklahoma City, OK facility. The initial term of the agreement is three years, with the term automatically renewed for six months unless either party provides written notice, without cause, at least ninety days prior to the expiration of the term. On July 6, 2023, Celsius Mining entered into a service order with GXD to host an additional 5,760 miners at the Oklahoma City facility for an initial term of 18 months and an option for Celsius Mining to extend the term for an additional 18 months. Upon the Plan Effective Date, the Company assumed the agreements with GXD for the remaining duration of the term. In October 2024, the service orders were amended to reduce the number of hosted miners by 5,760, and the expiration dates of all remaining service orders were amended and expired in February 2026.

Within the terms of the agreement, the Company is principally responsible for delivery of the service to the customer (the mining pool operator); and therefore, recognizes revenue on a gross basis. The Company's hosting services costs include revenue share amounts paid to GXD in bitcoin daily, as well as other expenses paid in cash monthly.

 

*Hosting Services Agreement with EZ Blockchain Services, LLC*

On June 2, 2023, Celsius Mining entered a term sheet for hosting services with EZ Blockchain Services, LLC ("EZB") who hosted Celsius Mining miners at its Douglas, GA and West Point, GA facilities, and made up to 32 megawatts ("MW") of energy capacity available at the facilities. On November 22, 2023, Celsius Mining and EZB entered into a definitive hosting agreement (the "EZB Hosting Agreement"), superseding the term sheet. The initial term is eighteen months, which may be extended for each day of curtailment up to a maximum contract length of twenty-one months.

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Under the term sheet and prior to the 2023 EZB Hosting Agreement, EZB was principally responsible for delivery of the service to the customer (the mining pool operator), with Celsius Mining entitled to revenue in cash. Celsius Mining recognized its share of mining revenue received on a net basis, given that EZB was principally responsible for delivery of the service. Since net mining revenues were considered constrained until month-end, revenue was recognized at the month-end when it became probable that a significant reversal would not occur.

Under the EZB Hosting Agreement, the Predecessor, and subsequently the Company, is principally responsible for delivery of the service; therefore, revenue is received from the Customer in bitcoin daily and recognized on a gross basis. The hosting services costs include revenue share amounts paid to EZB in bitcoin, as well as other expenses paid in cash monthly.

Upon the Plan Effective Date, the Company assumed the agreements with EZB for the remaining duration of the term, and the agreement was terminated in May 2025.

*Hosting Services Agreement with USMIO Alpha LLC / Hut 8 Corp.*

 

On August 8, 2023, Celsius Mining entered into a bitcoin mining hosting agreement (the "Hut 8 Niagara Hosting Agreement") with USMIO Alpha LLC, now a wholly owned subsidiary of Hut 8 Corp. ("Alpha").

Under the Hut 8 Niagara Hosting Agreement, Alpha agreed to provide hosting services, including electrical power and internet access, for at least 8,500 miners owned by the Company at Alpha's Niagara Falls, New York facility. The Hut 8 Niagara Hosting Agreement had an initial term of twelve months, with the Company's option to renew for four consecutive twelve-month terms. Upon the Plan Effective Date, the Company assumed the agreement with Alpha for the remaining duration of the term.

Within the terms of the agreement, the Company was principally responsible for delivery of the service to the Customer (the mining pool operator) and therefore recognizes revenue daily on a gross basis. The Company's hosting services costs include revenue share amounts paid to Alpha in bitcoin, as well as other expenses paid in cash monthly.

The Company terminated the Hut 8 Niagara Hosting Agreement in November 2024 with no incremental costs incurred, at which time the remaining miners were transferred to Ionic Digital-owned facilities.

 

Refer to *Note 4 – Cryptocurrency assets* for additional information related to revenue generated by equipment located with hosting providers.

***Cost of digital infrastructure solutions revenues, exclusive of depreciation***

The Company incurs certain maintenance, utility, and other costs to ensure the Ward County facility remains operational. In addition, the Company incurred initial direct costs in connection with obtaining the agreement to provide digital infrastructure solutions at the Ward County facility. These costs are included in Deferred initial direct leasing costs on our Consolidated Balance Sheet as of December 31, 2025. These costs are amortized over the term of the agreement as a cost of the digital infrastructure leasing revenues.

**Mining Management Services Agreement**

In accordance with the Plan, portions of the day-to-day operations of Ionic Digital's bitcoin mining business would initially be outsourced to U.S. Data Management Group, LLC, a subsidiary of Hut 8 ("Hut 8"), an arrangement governed by the Mining Management Services Agreement ("Mining MSA"). In accordance with the Mining MSA, the Company agreed to pay Hut 8 cash compensation including a fixed fee, pass-through expenses, and direct project costs. The fixed fee would be paid in quarterly installments and allocated between General and administrative expenses and capitalized construction project costs. Pass-through costs were recorded by the Company within operating expenses depending on the nature of such expenses. Direct project costs were paid at certain pre-defined milestones dependent upon completion of such milestones and capitalized by the Company within Property and equipment, net.

Refer to *Note 12 – Related Party Transactions* and *Note 8 – Mining Management Services Agreement* for more details. Effective December 10, 2024, the Mining MSA was terminated at no incremental cost to the Company.

**Equity-Based Compensation**

The Company recognizes share-based compensation expense for all stock-based awards made to employees, directors, consultants, and service providers, if any, based upon the estimated grant-date fair value of the awards.

The fair value of share-based compensation awards is amortized over the vesting period, which is defined as the period during which a recipient is required to provide service in exchange for an award. The Company generally uses a graded vesting method for all grants. Awards with both market and service conditions are expensed over the vesting period for each separately vesting tranche. The Company accounts for forfeitures of stock-based awards as they occur.

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For more complex performance awards, including awards with market conditions, the fair value is estimated using the Black-Scholes-Merton option pricing model or Monte-Carlo simulations, which take into account the exercise price, the term of the option or the restricted stock units ("RSUs"), the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company receives the services that entitle the employees to receive payment.

In accordance with ASC 718, *Stock Compensation* ("ASC 718"), share-based compensation for awards with market conditions is recognized over the vesting period, regardless of whether the market condition is ultimately achieved will only be adjusted to the extent the service condition is not met.

If stock-based awards are modified, as a minimum, an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification.

If stock-based awards are cancelled or settled during the vesting period (other than a grant cancelled by forfeiture when the vesting conditions are not satisfied), this is treated as an acceleration of vesting and the amount that otherwise would have been recognized for services received over the remainder of the vesting period will be recognized immediately through share-based compensation expense in earnings.

The Company classifies its share-based compensation within "General and administrative expenses" on the Consolidated Statements of Operations. Refer to *Note 14 - Share-based compensation* for further information.

***Leases***

 ****

Leases are accounted for in accordance with ASC 842. The Company has lease arrangements both as a lessor and a lessee. At the inception of an arrangement, the Company determines whether the contract is or contains a lease based on specific facts and circumstances, the existence of an identified asset, if any, and the Company's control over the use of the identified asset, if applicable. ****

 ****

*Lessor* 

 

Lease arrangements wherein the Company retains ownership of the underlying asset and grants a customer the right to use its asset are classified by the Company as an operating lease. Lease revenue is recognized on a straight-line basis and the associated leased assets are depreciated.

On October 14, 2025 the Company entered into an arrangement to provide digital infrastructure solutions to a customer at its Ward County facility. The arrangement includes both lease and non-lease components, certain of which are directly related to the lease components and the Company has elected to combine those related lease and non-lease components. The Company will account for the combined lease and non-lease components as Digital infrastructure leasing revenue in the Consolidated Statements of Operations. See further discussion in *Note 9 – Leases*.

*Lessee*

The Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow the Company to substantially utilize or pay for the entire asset over its estimated life. All other leases are categorized as operating leases and related expenses are recognized on a straight-line basis over the term of the related contract within General and administrative expenses in the Consolidated Statements of Operations.

The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the present value of future minimum lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, in determining the present value of the lease payments the Company uses an incremental borrowing rate based on the estimated rate of interest for collateralized borrowings over a similar term of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term.

The lease term is defined as the non-cancellable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less. Some leases include multiple-year renewal options. The Company's decision to exercise these renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

For all classes of underlying assets, the Company has elected to separate lease and non-lease components.

**Business Combination**

On the Plan's Effective Date, Ionic Digital acquired from Celsius Mining substantially all of its assets, including approximately $29 million in prepaid capital investments in Ward County and approximately 540 bitcoin, as well as approximately $195 million in cash contributed by Celsius Network, LLC (together the "Acquired Assets"). The Acquired Assets meet the definition of a business under ASC 805 and were accounted for as a business combination with Ionic Digital as the accounting acquirer.

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, where the total purchase price is allocated to the identified assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available and may be adjusted, for up to one year from the acquisition date, after obtaining more information regarding asset valuations, liabilities assumed, and revisions to preliminary estimates, among other things. The difference between the purchase price, including any contingent consideration, and the fair value of net assets acquired is recorded as goodwill. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred.

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**Goodwill**

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. In accordance with ASC 350, *Goodwill and Other Intangible Assets* ("ASC 350"), the Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the reporting unit exceeds its fair value and may not be recoverable. Triggering events that may indicate a potential impairment include but are not limited to significant adverse changes in bitcoin prices or business climate and related competitive considerations. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount but also has the option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative analysis. If the Company performs a qualitative test and determines it is more likely than not that the fair value of a reporting unit is less than is carrying amount, the Company performs a quantitative goodwill impairment test to compare the estimated fair value of the reporting unit to its carrying amount. Impairment is indicated if the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, and an impairment charge is recognized for the difference, not to exceed the carrying value of goodwill.

See further discussion of the goodwill impairment testing performed in *Note 11 – Goodwill*.

**Income taxes**

The Company complies with the accounting and reporting requirements of ASC 740, *Income Taxes* ("ASC 740"), which requires use of the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be in effect for the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is required to the extent any deferred tax assets may not be realizable, and the Company has considered the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income.

The Company also follows US GAAP in accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company's policy is to record interest and penalties associated with uncertain tax positions through income tax expense. There were no material unrecognized benefits or associated interest or penalties as of the periods provided for in these financial statements.

**Segment reporting**

Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker ("CODM"). The CODM of the Company is the Chief Executive Officer. The CODM reviews financial performance for the cryptocurrency mining business as well as the digital infrastructure solutions business. Accordingly, the Company has two operating segments, and the Company discloses both segments in its consolidated financial statements.

**Recent accounting pronouncements** 

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change on its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's consolidated financial statements properly reflect the change.

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In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This pronouncement aims to improve the transparency of income tax disclosures by requiring consistent categories and deeper disaggregation of information in rate reconciliation and income tax payments. It also expands income tax disclosures for these reconciliations by mandating disclosures of specific categories and additional reconciling items that meet quantitative thresholds, as well as requiring a detailed paid tax disaggregation by certain jurisdictions. The Company adopted this ASU on a prospective basis for the year ended December 31, 2025.

In March 2024, the FASB issued ASU 2024-02, *Codification Improvements—Amendments to Remove References to the Concepts Statements*. This ASU removes references to the FASB's Concepts Statements from the Accounting Standards Codification. The amendments are effective for public business entities for fiscal years beginning after December 15, 2024. The Company adopted this standard prospectively, and the adoption did not have a significant impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. This ASU requires public business entities to provide more detailed disclosures in the notes to their financial statements, both for interim and annual reporting periods, about certain expenses such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently assessing the potential impact of this standard's adoption.

In May 2025, the FASB issued ASU 2025-05*, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets*. This ASU introduces simplifications for estimating credit losses on current accounts receivable and contract assets arising from Topic 606 (Revenue from Contracts with Customers). It provides one key relief for public companies: a practical expedient allowing entities to assume that current economic conditions remain unchanged over the life of these assets. These changes aim to reduce the cost and complexity of applying the credit loss model, especially for assets acquired in business combinations or through consolidation of variable interest entities. The ASU is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently assessing the potential impact of this standard's adoption.

**NOTE 3. Business Combination**

As discussed in *Note 1 – Organization*, the Company acquired substantially all the assets and assumed certain liabilities of Celsius Mining (the "Acquired Assets") at the close of business on January 31, 2024. The Acquired Assets meet the definition of a business under ASC 805. The transaction is accounted for as a business combination by applying the acquisition method, with the Company as the accounting acquirer.

The Company issued 37 million shares of Class A common stock to eligible holders of certain claims against Celsius Network and its affiliates in exchange for the Acquired Assets. Management determined the fair value of this consideration transferred to be $740 million, or $20.00 per share of Class A common stock.

The process to estimate the fair value of the Company's common stock utilized the income approach, which requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. This fair value measurement is based on significant inputs that are not observable in the market and, thus, represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions include an implied rate of return of 27.7% and a residual growth rate of 4% after ten years. Use of different estimates and judgments could yield different results.

---

| | |
|:---|:---|
|  | **Fair Value** |
| 37,000,000 shares of Ionic Digital Class A common stock | $740000 |
| **Fair value of consideration transferred** | $**740000** |

---

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The purchase price allocation was as follows:

---

| | |
|:---|:---|
|  | **Allocation**<br> **as of** <br> **February 1,** <br> **2024** |
| Cash | $195743 |
| Cryptocurrency assets | 23382 |
| Prepaid expenses and other current assets | 21122 |
| Construction-in-progress | 71191 |
| Property and equipment | 188568 |
| ROU assets | 544 |
| Long-term deposits and other non-current assets | 15328 |
| Goodwill | 229778 |
| Accounts payable and other accrued expenses | (375) |
| Long-term liabilities | (4963) |
| Lease liability | (253) |
| Deferred tax liability | (65) |
| &nbsp;&nbsp;&nbsp;**Total** | $**740000** |

---

The goodwill of $230 million arising from the acquisition reflects the value of the assembled workforce and the efficiencies anticipated from repositioning the acquired assets to achieve their highest and best use. All of the goodwill is expected to be deductible for tax purposes.

In addition to Business Combination, the Plan outlined certain arrangements to allow for the successful future operation of the business. In accordance with the Plan, portions of the day-to-day operations of Ionic Digital's bitcoin mining business would initially be outsourced to Hut 8 under the Mining MSA entered into on January 31, 2024. The Company also entered into a Contribution Agreement with Hut 8 wherein Hut 8 made a $6.4 million capital contribution on January 31, 2024 in exchange for shares of Class A common stock at a discounted price. Details of these arrangements are discussed further in *Note 8 – Mining Management Services Agreement*.

Acquisition-related costs incurred by the Company in connection with the acquisition were not material.

**NOTE 4. Cryptocurrency assets** 

The Company's cryptocurrency assets consists of bitcoin. The following table presents information about cryptocurrency assets activity of the Company and its Predecessor:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in-**<br> **Possession)** |
|  | **Year Ended<br> December 31, <br> 2025** | **Eleven Months Ended<br> December 31, <br> 2024** | **One Month Ended<br> January 31, <br> 2024** |
| Beginning balance | $223438 | $- | $16018 |
| Cumulative effect of the adoption of ASC 350-60 | - | - | 655 |
| &nbsp;&nbsp;&nbsp;Adjusted beginning balance, at fair value | $223438 | $- | $16673 |
| Bitcoin acquired |  | 23382 |  |
| Addition to bitcoin from mining activities<sup>(1)</sup> | 135945 | 138406 | 15564 |
| Consideration paid to hosting providers | (290) | (3703) | (730) |
| Carrying value of bitcoin disposed<sup>(2)</sup> | (54358) | (6391) | (7975) |
| Changes in fair value of bitcoin | (66788) | 71744 | (150) |
| &nbsp;&nbsp;&nbsp;**Ending Balance<sup>(3)</sup>** | $**237947** | $**223438** | $**23382** |
| Realized gain on sale of cryptocurrency assets<sup>(4)</sup> | $47404 | $5532 | $485 |

---

(1) Net
 of mining pool operating fees, as described in *Note 2 – Basis of Presentation and Significant Accounting Policies*. The addition to bitcoin from mining activities excludes
 bitcoin receivable of $0.1 million, $0.5 million, and $0.5 million for the year ended December
 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31,
 2024, respectively. Bitcoin receivable is included in Other receivables, net on the Consolidated
 Balance Sheets.

(2) Disposal is defined
 as the sale of bitcoin or payment of certain hosting costs in bitcoin.

(3) The ending balance
 of bitcoin holdings as of December 31, 2025, December 31, 2024 and January 31, 2024 represents
 the fair value.

(4) No cumulative realized
 loss was recorded as of December 31, 2025 or December 31, 2024.

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The following table represents the Company's cryptocurrency asset holdings. The cost basis of bitcoin represents the valuation at the time the Company earns bitcoin through mining activities:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of**<br>**December 31,<br> 2025** | **As of**<br>**December 31,<br> 2024** |
| Quantity of bitcoin held | 2719 | 2393 |
| Cost basis of bitcoin held | $232982 | $151680 |
| Fair value of bitcoin held | $237947 | $223438 |

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**NOTE 5. Property and equipment, net**

Property and equipment consisted of the following:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of**<br>**December 31,<br> 2025** | **As of**<br>**December 31, <br> 2024** |
| &nbsp;&nbsp;&nbsp;Mining equipment | $79264 | $118904 |
| &nbsp;&nbsp;&nbsp;Machinery and facilities equipment | 55679 | 147478 |
| &nbsp;&nbsp;&nbsp;Computer equipment | 20 | 54 |
| &nbsp;&nbsp;&nbsp;Construction-in-progress | 2513 | 31288 |
| &nbsp;&nbsp;&nbsp;Building | 33992 | 29430 |
| &nbsp;&nbsp;&nbsp;Land | 1620 | 1620 |
| &nbsp;&nbsp;&nbsp;Land Improvement | 383 | 328 |
| **Total cost of property and equipment, net of impairment** | $**173471** | $**329102** |
| Less: Accumulated depreciation | (97315) | (42267) |
| **Property and equipment, net** | $**76156** | $**286835** |

---

Depreciation expense for property and equipment was $66.7 million, $42.4 million, and $6.2 million for the year ended December 31, 2025, for the eleven months ended December 31, 2024, and the one month ended January 31, 2024, respectively.

In October 2025, the Company executed a long-term arrangement to lease its Ward County facility for use in the high-performance computing or artificial intelligence sectors, as further discussed in Note 9 – Leases. The repurposing of the buildings and machinery and facilities equipment assets resulted in a partial disposal of assets. Along with the disposal and replacement of certain machinery and facilities equipment in the normal course of business, the Company recognized a loss of $2.8 million on the disposal of buildings and machinery and facilities equipment during the year ended December 31, 2025.

*Mining equipment* 

The miners owned by the Company use ASIC chips designed around the 256-bit secure hashing algorithm (SHA-256) used by the Bitcoin blockchain, the primary cryptocurrency asset the Company seeks to mine. The Company operates various models of the AntMiner S19, S19 PRO, and S21 PRO, a series of miners manufactured by Bitmain Technologies Limited ("Bitmain"), as well as various models of M30S, a series of miners manufactured by Inchigle Technology Hongkong Limited ("MicroBT").

In July 2024, the Company purchased 663 AntMiner S21 PROs from Bitmain for $2.9 million in a non-cash transaction wherein the Company utilized an insurance claim and credit from lost and stolen miners valued at $2.9 million to finance the purchase. In December 2024, the Company made a $4.8 million down payment on refurbished S19 PRO miners, which were all placed in service during the year ended December 31, 2025.

After the termination of the EZB hosting contract in May 2025, the Company disposed of the miners previously hashing at EZB locations for total consideration of $1.1 million, recognizing a loss on the disposal of $3.6 million.

*Construction-in-progress*

On November 1, 2022, Celsius Mining initiated bitcoin mining at four mining sites near Midland, Texas (the "Midland Sites"). The Company recognized the fair value of construction-in-progress at the Midland Sites totaling $3.8 million in connection with the Business Combination. In 2025, Ionic disposed of the acquired construction-in-progress equipment, recognizing a loss on the disposal of $3.8 million, and began work to expand the power capacity at its Rebel facility. Construction-in-progress at the Midland sites totaled $2.3 million and $3.9 million as of December 31, 2025 and 2024, respectively.

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The Company acquired the fair value of construction-in-progress at the Ward County facility totaling $67.4 million in connection with the Business Combination. During the eleven months ended December 31, 2024, the Company incurred costs of $66.2 million related to site development. During that same period, the Company placed into service $106.1 million of property and equipment as a result of the commencement of operations for the warehouse, containers, and three buildings at the Ward County facility. Construction-in-progress at Ward County was $27.2 million as of December 31, 2024.

In January 2025, the final building at Ward County was energized and placed into service. Construction continued throughout the fiscal year at the site including building finishes and site improvements. Ionic Digital placed $31.9 million of property and equipment into service during the period. Following the decision to decommission mining operations at this location, the Company wrote off $2.1 million in construction-in-progress, which is recognized as Impairment of long-lived assets in the Consolidated Statements of Operations. As of December 31, 2025, the remaining construction-in-progress balance for Ward County was $0.2 million.

*Impairment of long-lived mining assets*

As discussed in *Note 2 – Basis of Presentation and Significant Accounting Policies*, the carrying value of long-lived assets, inclusive of right-of-use assets, is reviewed by the Company whenever events or changes in circumstances indicate that a potential impairment has occurred. When a potential impairment has occurred, an impairment write-down is recorded if the carrying value of the asset exceeds its fair value.

Adverse changes in the economics of mining cryptocurrency assets during the fourth quarter of 2025 indicated the potential for impairment of the carrying value of the Company's long-lived assets held and used in its mining operations. Management considered a number of factors in determining fair value, including market data regarding the value of our ASIC miners, a limited ability to repurpose the buildings and machinery and facilities equipment at the Midland sites for any use beyond hosting air-cooled ASIC miners, the expected return on investment to replace our mining fleet, the possibility the sites would be repurposed for use as digital infrastructure sites, and our experience in repurposing the Ward County facility.

We determined that the estimated fair value of assets used in mining activities was lower than its net carrying amount. As a result, we recognized impairment losses totaling $150.3 million for the year ended December 31, 2025, as detailed in the chart below.

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| | |
|:---|:---|
| | **Successor** |
| <br>**Asset Type** | **Allocated**<br> **Impairment**<br>**for the Year Ended December 31,<br> 2025** |
| Machinery and facilities equipment | $111341 |
| Computer equipment | 12 |
| Building | 6782 |
| Mining equipment | 30135 |
| Construction-in-progress | 2055 |
| **Total impairment of long-lived assets** | $**150325** |

---

There was no impairment of long-lived assets recorded for the eleven months ended December 31, 2024.

Subsequent to December 31, 2025, the Company determined it will not have the capacity at its owned and leased sites to operate a majority of the miners it previously operated at its Ward County facility and hosted by GXD. The Company reviewed its population of mining equipment in total to determine which units would be decommissioned and disposed. In addition, the conversion of the Ward County facility to accommodate the leasing arrangement necessitated the disposal of certain building materials and machinery and facilities equipment at that location. As of February 19, 2026, the Company approved a formal plan of disposal and is pursuing liquidation of various property and equipment that is not expected to be placed back into service at the remaining owned and leased Midland sites.

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**NOTE 6. OTHER RECEIVABLES**

The Company contracts with data center operators for hosting its mining equipment and for operational support. These arrangements require advance payments to the operators pursuant to the contractual obligations associated with these services. At the time the contract has terminated, any remaining balances are due to the Company, and such amounts are recorded as Other receivables, either current or non-current, in the Consolidated Balance Sheets, depending upon the term of the contract over which the deposits are expected to be recovered.

Other receivables, current and non-current, consisted of the following:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp;Receivable from former hosting partners | $15328 | $2933 |
| &nbsp;&nbsp;&nbsp;Other receivables | 245 | 641 |
| &nbsp;&nbsp;&nbsp;Less: Allowance for credit losses | (5113) | (725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Other receivables, current** | $**10460** | $**2849** |
| **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Receivable from former hosting partners | 3696 | 15329 |
| &nbsp;&nbsp;&nbsp;Less: Allowance for credit losses | (3326) | (1720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Other receivables, non-current** | $**370** | $**13609** |

---

Based on the management's assessment of the age of the amounts receivable and the financial viability of the debtor, the Company recorded a provision for credit losses related to its short- and long-term receivables totaling $6.0 million and $2.4 million, during the year ended December 31, 2025, and eleven months ended December 31, 2024, respectively. There was no allowance for credit losses recognized during the one month ended January 31, 2024.

The following table presents the activity in the Company's allowance for credit losses for the year ended December 31, 2025, the eleven months ended December 31, 2024, and the one month ended January 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor**<br> **(Debtor-in**<br> **-Possession)** |
|  | **Year Ended<br> December 31,<br> 2025** | **Eleven Months Ended December 31, 2024** | **One Month Ended<br> January 31,<br> 2024** |
| Beginning balance | $2445 | $- | $- |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 5994 | 2445 |  |
| &nbsp;&nbsp;&nbsp;Write-offs |  |  |  |
| &nbsp;&nbsp;&nbsp;Recoveries | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance | $8439 | $2445 | $- |

---

**NOTE 7. Investments & Derivatives** 

**Mothership Incubator Texas Rep Power Agreement**

On October 31, 2022, Celsius Mining and Mothership Incubator Texas REP 2, LLC ("MI Texas") entered into a power purchase agreement (the "MI Texas Agreement") for four Celsius Mining sites near Midland, Texas (the "Midland Sites"). Under the MI Texas Agreement, MI Texas was required to deliver to Celsius Mining a fixed amount of power at a fixed price. The term of the MI Texas Agreement was six months, subject to certain early termination exemptions. Commencing November 1, 2022, MI Texas initiated the sale of the scheduled energy in the ERCOT market under the MI Texas Agreement and agreed upon a ramp-up schedule between MI Texas and Celsius Mining. On May 22, 2023, Celsius Mining and MI Texas entered into a new power purchase agreement on the same basis for an additional six months. A portion of this new power purchase agreement commenced on July 24, 2023, and has since expired. The final portion of the agreement commenced on January 1, 2024. In connection with the Business Combination, the MI Texas Agreement was assumed by the Company per the terms of the Plan. The Company did not extend the power purchase agreement, which expired in May 2024.

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Due to ERCOT's allowance for net settlement, management determined that the MI Texas Agreement met the definition of a derivative under ASC 815. Because the Company had the ability to sell its electricity into the ERCOT market rather than take physical delivery, the Company determined the scope exception for normal purchases and sales was not applicable to the MI Texas Agreement. As a result, the MI Texas Agreement was recorded at an estimated fair value as of each reporting period in the balance sheet and any change in fair value was recorded in Costs of mining revenues, exclusive of depreciation in the Consolidated Statements of Operations.

Depending on the current spot market price of electricity, the Company had the opportunity to sell electricity in the ERCOT market in exchange for cash payments instead of utilizing the power for its bitcoin mining at the Midland Sites during peak periods to efficiently manage the operating costs of the Company. In instances where the present spot market price descended below the predetermined price, an unrealized loss was recognized. Conversely, a corresponding unrealized gain was recognized when the present spot market price exceeded the predetermined price.

Celsius Mining initiated bitcoin mining at the Midland Sites on November 1, 2022, and after that date, the costs covered under the MI Texas Agreement are recorded in Cost of mining revenue, exclusive of depreciation in the Consolidated Statements of Operations. For the one month ended January 31, 2024, an unrealized loss of $0.2 million was recognized in the Consolidated Statement of Operations. Refer to *Note 2 – Basis of Presentation and Significant Accounting Policies* for further information.

**NOTE 8. Mining Management Services Agreement**

In connection with the Business Combination on January 31, 2024, the Company entered into the Mining MSA, which specified that Hut 8 would manage and oversee certain aspects of the bitcoin mining business, namely supervision of the construction at the Ward County facility. Under the Mining MSA, Hut 8 would complete and deliver certain related projects, upon the Company's approval of the required funding, including building and energizing the Ward County bitcoin mining facility within 12 months of the Plan Effective Date at a capped construction cost of $0.4 million per MW. The capped construction cost would also apply to up to 300 MW of additional developments from medium voltage to plug ready infrastructure for a period of 24 months from the Plan Effective Date to the end of the term of the Mining MSA, subject to certain specified cost adjustments, for a total of up to 400 MW across the specifically identified facilities.

Pursuant to the agreement, Hut 8 was compensated for its services through an annual fixed fee of approximately $20 million, paid quarterly, and the granting of restricted stock options and stock warrants. The agreement included provisions under which the Company would pay agreed upon pass-through expenses and reimburse Hut 8 for other documented costs incurred as part of the agreement.

On June 19, 2024, Ionic Digital amended and restated the Mining MSA. Under the restated agreement, the fixed fee cash compensation was reduced to $15 million annually (or $3.8 million quarterly). The termination provisions were also updated, allowing the Company to terminate the Mining MSA at will with a 30-day notice period. The Company terminated the Mining MSA on December 10, 2024.

For additional information on accounting treatment for Mining MSA, refer to *Note 2 – Basis of Presentation and Summary of Significant Accounting Policies.*

**Restricted Stock Units**

The Mining MSA provided that, over a term of five years, Ionic Digital would issue 0.7 million shares of Class A common stock to Hut 8 (the "RSPA Shares") as partial consideration for entering the Mining MSA on the Plan Effective Date. The RSPA Shares would vest in equal proportions on the anniversary of the effective date of the Mining MSA in accordance with the vesting schedule set forth in the Restricted Stock Agreement (i.e., 20% per year over the duration of the Mining MSA). All unvested RSPA Shares will be cancelled immediately if the Mining MSA is terminated by mutual agreement, by the Company for cause, or if the Mining MSA is not extended beyond its initial four-year term; all unvested RSPA Shares will vest immediately if the Mining MSA is terminated for reasons other than the specified conditions. Since the Mining MSA was terminated effective December 10, 2024, prior to the first anniversary date, the unvested RSPA Shares were subsequently cancelled.

The following summarizes the activity for the RSPA Shares for the eleven months ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Number of** <br> **Shares** | **Weighted**<br> **Average**<br> **Fair Value** <br> **per Share** | **Aggregate** <br> **Intrinsic** <br> **Value** <br> **(in $** <br> **thousands)** |
| Beginning balance, unvested |  | $- | $- |
| Granted | 670801 | 19.80 | 13282 |
| Vested |  | - |  |
| Cancelled | (670801) | 19.80 | (13282) |
| Forfeited | - | - | - |
| &nbsp;&nbsp;&nbsp;Ending balance, unvested | - | $- | $- |

---

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**Stock Warrants**

In connection with the Mining MSA, the Company entered into five separate tranches of warrant agreements with Hut 8 (the "Warrant Agreements"). The Warrant Agreements entitled Hut 8 to purchase from the Company a number of shares of Class A common stock equal to (a) 0.31881% of the number of shares of Class A common stock outstanding *minus* (b) the aggregate number of shares of Class A common stock previously issued as a result of any partial exercise of the warrant at the exercise price for each warrant determined on its annual vesting date and subject to the terms, conditions, and adjustments set forth in the Warrant Agreements.

The Warrant Agreements had exercise periods commencing on the first, second, third, and fourth anniversary of the Plan Effective Date, and, if the Mining MSA was extended beyond its initial four-year term, the fifth anniversary of the Plan Effective Date. All unvested warrants would be cancelled immediately if the Mining MSA is terminated according to certain of its conditions or not extended beyond its initial four-year term; all unvested warrants would vest immediately if the Mining MSA is terminated other than according to certain of its conditions. Under the terms of the Warrant Agreements, Hut 8 agreed to vote all shares of Class A common stock issued upon the exercise of the warrants in accordance with the recommendations of our Board at any meeting of stockholders and in connection with any written consent of stockholders for so long as the Mining MSA was in effect.

On December 10, 2024, prior to the vesting of any stock warrants held by Hut 8, the Company terminated the Mining MSA, resulting in the cancellation of the unvested warrants.

**Capital Contribution**

In connection with the Business Combination, the Company also entered into a contribution agreement (the "Contribution Agreement") with Hut 8. The Contribution Agreement provided that Hut 8 would purchase from the Company, for an aggregate purchase price of $6.4 million (the "Initial Plan Sponsor Investment"), the number of shares of Ionic Digital Class A common stock (the "Initial Plan Sponsor Shares") equal to the product of: (a) (i) the sum of all outstanding shares of Ionic Digital Class A common stock issued or anticipated to be issued at the Plan Effective Date plus (ii) the number of shares of Ionic Digital Class A common stock reserved for issuance in accordance with the Plan or subject to holdbacks as of the Plan Effective Date plus (iii) the number of shares of Ionic Digital Class A common stock reserved for issuance in accordance with any equity incentive plan approved or contemplated under the Plan or approved by the Board of Directors of the Company at the Plan Effective Date and (b) a fraction, the numerator of which was the Initial Plan Sponsor Investment and the denominator of which was the Company Net Asset Value (as defined in the Contribution Agreement).

Under the Contribution Agreement, if the Mining MSA was not terminated by the Company pursuant to Section 1(b)(ii) thereof on or before May 1, 2024 ("Subsequent Closing Date"), then Hut 8 would purchase from the Company, for an aggregate purchase price of $6.4 million, an additional number of shares of Common Stock equal to the product of: the number of the Effective Date Shares (as adjusted to take into account any stock split, reverse stock split or share consolidation, stock dividend or similar event effected by the Company with respect to the Common Stock) multiplied by a fraction, the numerator of which was $6.4 million, and the denominator of which was the Company's net asset value.

On June 19, 2024, the Contribution Agreement was amended to adjust the Subsequent Closing Date of the second Hut 8 capital contribution of $6.4 million to be the first Business Day after the common stock had been listed on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934.

If the Mining MSA was extended beyond its initial term, then Hut 8 agreed to purchase additional shares of Ionic Digital Class A common stock at a price determined utilizing the Company Net Asset Value for an aggregate purchase price of approximately $3.2 million for year five, subject to a maximum purchase price of $15.9 million in the aggregate (inclusive of the Initial Plan Sponsor Investment, subsequent investments pursuant to the Contribution Agreement, and any additional stock purchases made pursuant to an extension of the Mining MSA). The Initial Plan Sponsor Shares plus any additional shares purchased after the Initial Plan Sponsor Investment were referred to collectively as the "Plan Sponsor Shares."

Pursuant to the Contribution Agreement, on January 31, 2024 Hut 8 made an initial investment in the Company of $6.4 million cash in exchange for 374,261 shares of Ionic Digital Class A common stock. As these shares were issued at a price discounted from the $20.00 per share fair value of Ionic Digital's Class A common shares (see further discussion at *Note 3 – Business Combination*), the Company recognized stock compensation expense in the amount of the discount of $1.1 million on the date of issuance, which is included within General and administrative expenses on the Consolidated Statement of Operations during the eleven months ended December 31, 2024.

The Company terminated the Contribution Agreement prior to listing its common shares on a national exchange. As such, no additional capital contributions have been made.

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**NOTE 9. Leases**

*Lessor Arrangements: Digital Infrastructure Leasing Revenue*

 

On October 14, 2025, the Company entered into a leasing arrangement to provide digital infrastructure solutions to a single tenant at its Ward County facility which is accounted for under ASC 842. The lease commencement date is December 19, 2025, and the lease term extends through January 2037. The lessee has one ten-year option to renew, as well as a right of first refusal on any additional power capacity that comes available at our Ward County site.

The Company is the lessor in this arrangement and identifies the right of the customer to use the land, land improvements, buildings, and equipment as a lease component of the contract. In addition, the Company has a stand-ready obligation to provide maintenance services to ensure the energy step-down transformation assets are operating reliably, which has been identified as a non-lease component of the arrangement. The Company determined that the lease component represents an operating lease, and the timing of Ionic's transfer of the aforementioned lease and non-lease components of the contract are the same. As such, and in accordance with ASC 842, the Company has elected the practical expedient to combine the accounting of the lease and non-lease components of the contract, with the predominant component of the arrangement being the lease component. Thus, the Company accounts for its lease of the Ward County property in accordance with ASC 842. The lease is classified as an operating lease, and leasing revenue is recognized on a straight-line basis over the lease term. Fixed lease payments are allocated to the combined lease components under the arrangement and total $1,949 million. Other variable operating costs are paid for by the Company but consumed by the lessee and will be recognized as incurred. There were no material variable lease payments received during the year ended December 31, 2025.

Utility services to be provided under the arrangement represent a separate non-lease component that will not be combined with the lease component for accounting purposes and instead will be accounted for in accordance with ASC 606. Reimbursements for taxes and insurance are considered non-components of the lease and are accounted for separately.

Initial direct costs of $7.5 million are deferred and recognized over the lease term in accordance with ASC 842. Amortization of initial direct costs is presented in Cost of digital infrastructure solutions revenue, exclusive of depreciation in the Consolidated Statements of Operations.

The following table summarizes the classes of the Company's underlying leased assets as of December 31, 2025, which are included in Property and equipment, net on the Consolidated Balance Sheets:

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| | |
|:---|:---|
|  | **As of**<br> **December 31,**<br> **2025** |
| &nbsp;&nbsp;&nbsp;Machinery and facilities equipment | $26414 |
| &nbsp;&nbsp;&nbsp;Land | 1020 |
| &nbsp;&nbsp;&nbsp;Building | 32933 |
| &nbsp;&nbsp;&nbsp;Land Improvement | 383 |
| Total cost of underlying leased assets | $60750 |
| &nbsp;&nbsp;&nbsp;Less: accumulated depreciation | (7877) |
| &nbsp;&nbsp;&nbsp;**Underlying leased assets, net** | $52873 |

---

Depreciation expense recognized on the underlying leased assets during the year ended December 31, 2025, subsequent to the lease commencement date, was immaterial.

The amounts presented below represent fixed lease payments to be received by the Company under the lease agreement as of December 31, 2025 and excludes variable lease payments, which are recognized as revenue in the period in which they occur.

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| | |
|:---|:---|
|  | **Successor** |
|  | **Operating**<br> **Leases** |
| 2026 | $29250 |
| 2027 | 135233 |
| 2028 | 178718 |
| 2029 | 182520 |
| 2030 | 182520 |
| Thereafter | 1195824 |
| &nbsp;&nbsp;&nbsp;**Total future minimum receipts on lessor arrangement** | $**1904065** |

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*Lessee Arrangements*

Ionic Digital's lease arrangements primarily consist of operating leases for land for the purpose of running data center facilities used for cryptocurrency mining. Certain leases include options to renew for periods ranging from one month to ten years, which are included in the measurement of the right-of-use asset and lease liability when the Company determines it is reasonably certain that the renewal option will be exercised. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term determinable at the lease commencement date. Variable lease payments include amounts paid by the Company for the right to use an asset that vary because of changes in facts and circumstances occurring after the commencement date, such as energy consumption or revenue generation. Variable lease payments not based on an index or rate, such as those based on usage or performance, are excluded from the measurement of the right-of-use asset and lease liability and are recognized as lease expense in the period incurred. The Company has no finance leasing arrangements.

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The Company leases the land at two of our Midland sites and has identified a lease arrangement embedded within its hosting agreement with EZB, which expired in June 2025. The following table presents the Company's right-of-use assets, which are included within Deposits and other non-current assets in the Consolidated Balance Sheets, and lease liabilities, which are included in Accrued expenses and other current liabilities and Non-current portion of lease liability:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Operating lease right-of-use assets | $429 | $489 |
| Operating lease liabilities, current | $38 | $37 |
| Operating lease liabilities, non-current | 170 | 194 |
| &nbsp;&nbsp;&nbsp;Total lease liabilities | $208 | $231 |

---

Two of the Company's lease agreements are based entirely on variable payments. The lease expense disclosed herein related to the mining facility in Georgia represents an amount allocated between the lease and non-lease components of the Company's hosting agreement with EZB. In addition, the Company has several short-term equipment rental agreements for which it elects the practical expedient not to record the right-of-use asset and lease liability on the balance sheet.

The components of total lease cost recorded in the Consolidated Statements of Operations are as follows:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End <br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| Fixed lease cost | $38 | $37 |
| Variable lease cost | 68 | 185 |
| &nbsp;&nbsp;&nbsp;Operating lease expense | 106 | 222 |
| Short-term lease expense | 541 | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating lease expense | $647 | $494 |

---

Additional supplemental operating lease information is as follows:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End<br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| Cash paid for amounts included in operating lease liabilities | $38 | $37 |
| Weighted average remaining lease term (years) | 6.33 | 7.33 |
| Weighted-average discount rate <sup>(1)</sup> | 7% | 7% |

---

(1) *As the rate implicit in the leases was not readily determinable, the incremental borrowing rate at the lease commencement was used to determine the present value of minimum lease payments.* 

As of December 31, 2025, maturities of Ionic Digital's operating lease liability, which do not include variable lease payments, are as follows:

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| | |
|:---|:---|
|  | **Successor** |
|  | **Operating<br> Leases** |
| 2026 | $38 |
| 2027 | 41 |
| 2028 | 42 |
| 2029 | 43 |
| 2030 | 44 |
| Thereafter | 46 |
| &nbsp;&nbsp;&nbsp;Total undiscounted future lease payments | 254 |
| Less: present value discount | (46) |
| &nbsp;&nbsp;&nbsp;Present value of operating lease liabilities | $208 |

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**NOTE 10. Accrued ExpenseS AND OTHER CURRENT LIABILITIES**

Accrued expenses and other current liabilities represent management's best estimates of liabilities incurred that are expected to be settled in the normal course of business within twelve months. Actual amounts paid may differ from estimated accruals due to timing of invoice receipt, final contractual terms, or changes in service usage. Differences between accrued amounts and actual payments are recognized in the period in which such information becomes available.

Accrued expenses and other current liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **As of <br> December 31, <br> 2025** | **As of <br> December 31, <br> 2024** |
| Accrued professional fees | $1174 | $612 |
| Accrued capital expenditures | 827 | 3023 |
| &nbsp;&nbsp;&nbsp;Taxes payable | 662 | 1148 |
| Payable to former hosting partner | 5115 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued costs to decommission owned mining site | 3384 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initial direct leasing costs payable | 5000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses | 2997 | 5351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total accrued expenses and other current liabilities** | $**19159** | $**10134** |

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**NOTE 11. Goodwill**

Goodwill represents the cost of a business acquisition in excess of the fair value of the net assets acquired. The Company reviews its goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable.

***Allocation of Goodwill to Reporting Units***

During the fourth quarter of 2025, the Company began providing digital infrastructure solutions to third parties. As disclosed in *Note 19 – Operating Segments*, changes in the Company's business during the year ended December 31, 2025 resulted in the identification of two reportable operating segments, each representing one reporting unit for the purpose of evaluating goodwill. As such, as of October 14, 2025, an assessment was performed to allocate the carrying value of goodwill to the two reporting units using a relative fair value allocation approach in accordance with ASC 350.

**Goodwill Impairment Analyses**

As of the year ended December 31, 2025 and at various points during the eleven months ended December 31, 2024, circumstances repeatedly arose that the Company viewed as adverse market trends in the bitcoin mining industry, including the halving event in April 2024 as well as declines in the price of bitcoin, increases in the difficulty of mining bitcoin, or a combination of the two, that the Company had not anticipated in its forecasts. Management determined that certain of these market conditions were triggering events requiring the Company to perform quantitative goodwill impairment analyses in accordance with *ASC 350.*

When quantitatively analyzing goodwill for impairment, management estimated the fair value of the reporting unit(s) compared to the carrying value of the reporting unit(s), a process which incorporated a combination of the income and market valuation approaches. The income approach is a valuation technique under which the Company estimates discounted future cash flows using the financial forecast from the perspective of an unrelated market participant. In estimating future cash flows of the reporting units several assumptions were used, including projected bitcoin prices and global hashrate, capital expenditures, operating results, growth rates, regulatory and economic conditions, and the discount rate. The discount rate used for the reporting unit(s) was the value-weighted average of the reporting unit's estimated cost of capital, derived using both known and estimated customary market metrics. The market valuation approach, or the comparable company approach, uses valuation multiples of similar companies to estimate the fair value of the reporting units.

In April 2024, a bitcoin halving event took place, which has historically occurred approximately every four years and reduces the block reward for bitcoin miners by 50%. After the halving event in April 2024, the global network hashprice declined below the levels anticipated in the Company's forecasts, which negatively impacts future operating profit. These circumstances were identified as a triggering event which resulted in the Company performing a quantitative assessment for goodwill impairment as of June 30, 2024. As adverse market conditions continued through the third quarter of 2024, the Company performed a second quantitative assessment of its goodwill as of September 30, 2024. Based on the results of these quantitative assessments, management concluded that the fair value of the Company's single Cryptocurrency Mining reporting unit exceeded its carrying value. In addition to the quantitative impairment analyses performed, the Company also performed its annual goodwill impairment assessment on October 1, 2024 and determined that it was not more likely than not that goodwill was impaired. Accordingly, no goodwill impairment was recognized during the eleven months ended December 31, 2024.

During the year ended December 31, 2025, the Company performed its annual impairment testing as of October 1, 2025, at which time a qualitative analysis was completed. As a result of the qualitative test, the Company determined that it was not more likely than not that goodwill was impaired. Accordingly, no goodwill impairment was recognized at that time.

During the fourth quarter of 2025, management noted the rapid decline in the price of bitcoin coupled with sustained competition among bitcoin miners despite the reduced rewards and determined that these market conditions would significantly impact the Company's bitcoin mining operations in the immediate future. In addition, the Company began the shift to diversify its revenue streams and commenced the repurposing of its Ward County assets to provide digital infrastructure solutions to third parties. These events triggered an evaluation of the Company's goodwill and long-lived assets as of December 31, 2025, and management determined that a quantitative goodwill impairment analysis was appropriate to compare the carrying value of the reporting units, including goodwill, to the reporting units' estimated fair value.

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The Company used a combination of the income approach and the market approach to test the fair value of its reporting units. Under the income approach, the valuation model applied management's cash flow projections as of December 31, 2025 using reporting unit-specific assumptions. The discount rate used for Cryptocurrency Mining and Digital Infrastructure Solutions reporting units were 21.5% and 20.0%, respectively.

Under the market approach, valuation multiples were derived from publicly traded comparable companies in the digital assets and digital infrastructure solutions sectors selected based on relative growth, profitability, and risk profiles. The market approach was not applied to the Mining reporting unit because management's projections indicate the business has a finite life, rendering the application of market multiples to historical or forward-looking data ineffective.

As a result of the quantitative impairment test performed as of December 31, 2025, the Company concluded that the goodwill assigned to its Cryptocurrency Mining reporting unit was fully impaired, and the Company recognized an impairment loss of $68.2 million. The fair value of the Digital Infrastructure Solutions reporting unit exceeded its carrying value as of December 31, 2025; therefore, no goodwill impairment was recognized for that reporting unit.

The following table shows the Company's activity in goodwill, by reporting unit:

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| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Successor** |
|  | **Cryptocurrency** <br> **Mining** | **Digital** <br> **Infrastructure** <br> **Solutions** | **Total** |
| **Beginning balance, February 1, 2024** | $**229778** | $**-** | $**229778** |
| &nbsp;&nbsp;&nbsp;Acquisitions |  |  |  |
| &nbsp;&nbsp;&nbsp;Impairment | - | - | - |
| **Balance as of December 31, 2024** | $**229778** | $**-** | $**229778** |
| &nbsp;&nbsp;&nbsp;Allocation to new reporting unit | (161608) | 161608 |  |
| &nbsp;&nbsp;&nbsp;Acquisitions |  |  |  |
| &nbsp;&nbsp;&nbsp;Impairment | (68170) | - | (68170) |
| **Balance as of December 31, 2025** | $**-** | $**161608** | $**161608** |

---

**NOTE 12. Related Party Transactions**

During the year ended December 31, 2025, the Company did not identify any transactions, arrangements, or relationships with related parties that require disclosure. Furthermore, there were no outstanding balances due to or from related parties as of the balance sheet date.

**Hut 8**

In January 2024, the Company entered the Mining MSA with Hut 8. Hut 8's role was to manage and oversee certain aspects of the bitcoin mining operations and the construction of Ward County. In December 2024, Ionic Digital terminated the Mining MSA; as such, there were no costs incurred with Hut 8 during the year ended December 31, 2025. During the eleven months ended December 31, 2024, Ionic Digital paid Hut 8 approximately $36 million, the nature of which is summarized as follows:

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| | |
|:---|:---|
|  | **Successor** |
|  | **Eleven<br> Months Ended<br> December 31, <br> 2024** |
| Costs of mining revenues, exclusive of depreciation: |  |
| &nbsp;&nbsp;&nbsp;Labor expenses | $13327 |
| &nbsp;&nbsp;&nbsp;Hosting services | 10369 |
| Property and equipment, net: |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | 5896 |
| &nbsp;&nbsp;&nbsp;Construction management | 6411 |
| &nbsp;&nbsp;&nbsp;**Total Hut 8 related party costs** | $**36003** |

---

As disclosed in *Note 8 – Mining Management Services Agreement*, Hut 8 made a cash contribution to the Company on January 31, 2024 in the amount of $6.4 million in exchange for 374,261 shares of Class A common stock. Since the shares were issued to Hut 8 at a price discounted from the determined fair value of Ionic Digital's Class A common stock, the Company recognized stock compensation expense totaling $1.1 million during the eleven months ended December 31, 2024.

The Plan approved by the Bankruptcy Court also granted Hut 8 one share of Class B common stock, the holder of which had the authority to appoint two of the eight directors to the Company's Board of Directors as of the date of the Business Combination. This share was redeemed by the Company for $1 and cancelled in 2024.

**NOTE 13. Stockholders' Equity**

***Successor Equity***

Following the consummation of the Plan, the Company authorized the issuance of three classes of stock – Preferred stock, Class A common stock and Class B common stock.

**Preferred stock ("Preferred shares")** — 15 million preferred shares at $0.00001 par value per share are authorized and no shares are issued and outstanding. These shares represent the preferred class of equity and entitle the holders to the return of their capital contributions before amounts are distributed with respect to any other shares.

**Class A common stock ("Class A common shares")** — One billion (1,000,000,000) Class A common shares at $0.00001 par value per share are authorized. These shares represent common equity in that they provide rights to distributions junior to the Preferred shares. These shares reflect an equity interest in the Company and, as of December 31, 2024, approximately 37 million were issued to the creditors of the Ultimate Parent and its subsidiaries and affiliates pursuant to the Plan and to a related party.

**Class B common stock ("Class B common share")** — One Class B share at $1.00 par value per share was authorized. This share represents common equity in that it does not provide the holder with a right to receive any distributions. This share was to be issued and held only by Hut 8 or its affiliates, entitles the holder to elect two directors to the Company's Board of Directors, and is redeemable at $1.00 per share immediately upon termination of the Mining MSA, which occurred in December 2024. Thus, the Class B share is now retired and cannot be reissued.

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On January 31, 2024, the Company adopted the Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other stock-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. As of December 31, 2025, the Company has reserved approximately 4.8 million shares (subject to an evergreen) under the Omnibus Plan*.*

In addition to the Class A common shares issued in the transaction (see *Note 3 – Business Combination*) and in exchange for Hut 8's capital contribution (see *Note 12 – Related Parties*), on January 31, 2024 the Company reserved 0.7 million shares of Class A common stock for Hut 8 in partial consideration for management services through the Mining MSA. The Company also entered five separate (but substantively identical) warrant agreements with Hut 8 as part of the Mining MSA.

On December 10, 2024, the Company terminated the Mining MSA, at which time the RSU Shares were forfeited, the Warrant Agreements terminated, and the Class B common stock became redeemable. All rights of the Class B shareholder ceased when the Company effected redemption of the Class B common stock in December 2024.

***Predecessor Equity***

The Company was founded to effectuate the successful acquisition of certain assets of Celsius Mining, pursuant to the Plan. The Ultimate Parent owned all the issued and outstanding shares of Celsius UK, which in turn owned all the issued and outstanding interests of Celsius US Holding, which in turn owned all the issued and outstanding member interests in Celsius Network LLC.

Prior to consummation of the Plan, Celsius US Holding also owned all the issued and outstanding member interests in Celsius Mining. In accordance with the Plan and upon consummation of the Business Combination on January 31, 2024, the Predecessor's net amount due to and from related parties was cancelled and discharged in full as per the terms of the Plan. In accordance with ASC 470-50, the forgiveness of the $188.6 million balance was accounted for by Celsius Mining as a capital transaction. Accordingly, Celsius Mining recorded an increase to Members' Equity in its Consolidated Statement of Changes in Equity (Deficit) during the one month ended January 31, 2024.

**NOTE 14. Share-Based Compensation**

On January 31, 2024, the Company adopted the Ionic Digital Inc. Omnibus Incentive Plan (the "Omnibus Plan"), pursuant to which it may grant equity and equity-based incentive awards (including non-statutory and incentive stock options, stock appreciation rights, restricted stocks, restricted stock units, performance awards, other stock-based awards and cash awards) to eligible employees, consultants, individual contractors and other service providers. The number of shares of Common Stock available under the plan was initially limited to 4,317,960 shares. The share limit will automatically increase by 4% of the Company's outstanding shares on January 1 of each calendar year beginning in 2025, unless a smaller number of shares is determined by the Board of Directors. As of December 31, 2025, the Company has approximately 4,841,180 shares reserved (subject to an evergreen) under the Omnibus Plan*.*

The Company has entered into a number of share-based compensation arrangements, the details of which are described below.

***Restricted Stock Units***

In October 2025, the Company granted 224,250 share-based awards in the form of restricted stock units ("RSUs") under the Omnibus Plan to members of its Board of Directors, which vest ratably over three years starting on the date of the annual meeting of stockholders held in the year following grant. In November 2025, the Company granted 186,875 share-based awards in the form of RSUs under the Omnibus Plan to its Chief Executive Officer, which vest over a five-year period in equal installments, with one-fifth vesting on each of the first five anniversaries of the grant. These awards are classified as equity awards and are measured at fair value on the grant date. Compensation cost related to the RSUs is recognized on a straight-line basis over the applicable service periods and is recorded within general and administrative expenses, with a corresponding increase to additional paid in capital.

As of January 31, 2024, the Company also issued RSUs to Hut 8 as part of the Mining MSA in exchange for mining management services. The RSUs were classified as equity awards under ASC 718 and were measured at fair value as of the grant date. These awards were issued to non-employees, and the services provided by Hut 8 and its affiliates in exchange for these awards were performed at a uniform rate. As such, compensation cost was recognized on a straight-line basis over the five-year service period to reflect the manner in which the services were performed. Recognition of compensation cost was subject to certain termination clauses which were assessed if and when costs would be deemed probable to occur. Refer to *Note 8 – Mining Management Service Agreement* for more details.

Upon termination of the Mining MSA on December 10, 2024, no shares issued for the RSUs were vested. As such, no compensation costs were recognized for the year ended December 31, 2025 or for the eleven months ended December 31, 2024.

The following table summarizes the Company's RSU activity for the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Weighted-<br> Average<br> Grant Date<br> Fair Value** |
| **Unvested as of December 31, 2024** | **-** | **-** |
| &nbsp;&nbsp;&nbsp;Granted | 411125 | $35.34 |
| &nbsp;&nbsp;&nbsp;Vested |  | **-** |
| &nbsp;&nbsp;&nbsp;Forfeited | - | **-** |
| **Unvested as of December 31, 2025** | **411125** | $**35.34** |

---

The fair value of RSUs was determined using the fair value of the Company's common stock on the grant date, a weighted average market value per common share of $47.98. The market value per common share was adjusted using a discount for lack of marketability calculated using a weighted average expected term of 2.5 years, a weighted average expected volatility of 98.4%, and a dividend yield of 0.0%.

***Performance Restricted Stock Units***

In November 2025, the Company also granted to its Chief Executive Officer equity-based awards under the Omnibus Plan in the form of performance restricted stock units ("PRSUs"). These awards are classified as equity awards and vest upon the achievement of a service condition of six months of continuous employment after achievement of market conditions established by the Compensation Committee of the Board as of the grant date, which is based on the achievement of certain market capitalization goals. The number of shares earned total one-third of the awards granted based on achievement of the performance condition. The fair value of these PRSUs was determined using a Monte Carlo simulation incorporating the grant-date market value per common share. The resulting fair values were then adjusted using a discount for lack of marketability that considered a weighted average expected term of 2.0 years, a weighted average expected volatility of 95.3%, and a dividend yield of 0.0%. Compensation expense for these PRSUs is recognized based on the probable outcome of the performance condition with a cumulative catch-up adjustment for prior periods in the period that the probable outcome changes.

[**Table of Contents**](#C_001)

The following table summarizes the Company's PRSU activity for the year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Weighted-<br> Average <br> Grant Date <br> Fair Value** |
| **Unvested as of December 31, 2024** |  | **-** |
| &nbsp;&nbsp;&nbsp;Granted | 560625 | $34.50 |
| &nbsp;&nbsp;&nbsp;Vested |  |  |
| &nbsp;&nbsp;&nbsp;Forfeited | - | - |
| **Unvested as of December 31, 2025** | **560625** | $**34.50** |

---

Total share-based compensation expense for the year ended December 31, 2025, was $3.5 million. Unrecognized share-based compensation expense was $30.4 million as of December 31, 2025 and is expected to be recognized over five years.

***Stock Warrants***

As part of the Mining MSA, the Company was to issue five tranches of warrants to Hut 8 in exchange for the mining management services provided. The warrants to purchase Class A common stock were classified as equity awards under ASC 718. Each tranche of warrants had its own service period and vested over one year until the exercise price was known. Thus, compensation cost is recognized on a straight-line basis over each tranche's one-year service period. As the exercise price would not be determined until the vesting date, the service inception date was determined to precede the grant date under ASC 718. As such, fair value was initially measured at the service inception date and was to be remeasured at each subsequent reporting period until the grant date when the exercise price would be known. Refer to *Note 8 – Mining Management Services Agreement* for additional details.

Upon termination of the Mining MSA on December 10, 2024, no shares issued for the stock warrants were vested. As such, no net compensation costs were recognized for the year ended December 31, 2025 or for the eleven months ended December 31, 2024.

**NOTE 15. Earnings per Share**

Basic earnings per share of Class A common stock is calculated by dividing Net income (loss) by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings per share is computed similarly except the weighted average shares outstanding are increased to include the assumed exercise of any common stock equivalents using the treasury stock method, if dilutive.

The Company's potentially dilutive equity instruments are primarily instruments that the Company has issued as part of the RSPA shares and Warrant Agreements. The RSPA shares and Warrant Agreements were unvested when the Mining MSA was terminated in December 2024 and were forfeited as a result. In the fourth quarter of 2025 the Company granted share-based awards to members of its Board of Directors and its Chief Executive Officer in the form of RSUs and PRSUs. As of December 31, 2025, outstanding shares of performance restricted stock units and restricted stock units in aggregate of 971,750 have been excluded from the calculation of diluted earnings per share, as such securities were anti-dilutive.

The following table summarizes the calculation of the Company's basic earnings per share of Class A common stock:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End<br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31,<br> 2024** |
| ***Numerator*** | | |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $(247723) | $40145 |
| ***Denominator*** |  |  |
| &nbsp;&nbsp;&nbsp;Weighted-average Class A common stock outstanding, basic | 37374261 | 37374261 |
| **Basic earnings per share, Class A common stock** | $**(6.63)** | $**1.07** |
| **Diluted earnings per share, Class A common stock** | $**(6.63)** | $**1.07** |

---

All earnings of the Predecessor were entirely applicable to its members; as a result, EPS information is not applicable for reporting periods prior to the Business Combination.

[**Table of Contents**](#C_001)

**NOTE 16. Income Taxes**

For the year ended December 31, 2025, Ionic Digital recorded a loss before a benefit for income taxes totaling $313.8 million. For the eleven months ended December 31, 2024, Ionic Digital recorded income before provision for income taxes totaling $52.5 million. All income and losses are attributable to operations in the United States. The Predecessor was a pass-through entity; as a result, no operating loss transferred to Ionic Digital with the transaction.

The components of the provision (benefit) for income taxes are as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year End <br> December 31, <br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| **Current** | | |
| &nbsp;&nbsp;&nbsp;Federal | $- | $- |
| &nbsp;&nbsp;&nbsp;State | 489 | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current | $489 | $290 |
| **Deferred** |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $(65484) | $11261 |
| &nbsp;&nbsp;&nbsp;State | (1066) | 754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Deferred | $(66550) | $12015 |
| **Total Provision (Benefit)** | $**(66061)** | $**12305** |

---

As of December 31, 2025, the Company has indefinitely lived federal net operating loss carryforwards of $82.4 million. Such net operating loss carryforwards can only offset 80% of taxable income in any individual future tax year. The Company also has state net operating loss carryforwards of $27.4 million, of which $14.7 million is subject to expiration beginning in 2046. The remaining $12.7 million state operating net loss carryforwards is not subject to expiration but can only offset 80% of taxable income in any individual future tax year.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company's deferred tax liabilities and assets are as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| **Deferred tax assets:** | | |
| &nbsp;&nbsp;&nbsp;Property and equipment | $29265 | $205 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 1816 | 693 |
| &nbsp;&nbsp;&nbsp;Leases | 44 | 52 |
| &nbsp;&nbsp;&nbsp;Net operating loss and credit carryforwards | 18745 | 6934 |
| &nbsp;&nbsp;&nbsp;Stock compensation | 727 |  |
| &nbsp;&nbsp;&nbsp;Goodwill | 8202 | - |
| &nbsp;&nbsp;&nbsp;Gross non-current deferred tax assets | 58799 | 7884 |
| &nbsp;&nbsp;&nbsp;Valuation allowance for non-current deferred tax assets | (1371) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net non-current deferred tax assets | $57428 | $7884 |
| **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | $- | $(3140) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | (515) | (606) |
| &nbsp;&nbsp;&nbsp;Unrealized gains | (1075) | (16108) |
| &nbsp;&nbsp;&nbsp;ROU assets | (91) | (110) |
| &nbsp;&nbsp;&nbsp;Deferred rent | (1277) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross non-current deferred tax liabilities | $(2958) | $(19964) |
| **Net deferred tax assets (liabilities)** | $**54470** | $**(12080)** |

---

The Company periodically evaluates the realizability of its deferred tax assets based on all available evidence, both positive and negative. Based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, as of December 31, 2025 management determined that it was more likely than not that the Company would not realize the benefit associated with most of its state net operating losses subject to expiration and a portion of its indefinite lived state net operating losses. As a result, a partial valuation allowance totaling $1.4 million was recorded to the extent state net operating losses are not expected to be used in the future as of December 31, 2025. As of December 31, 2024, no valuation allowance was recorded.

Changes in the valuation allowance were as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year Ended<br> December 31, <br> 2025** | **Eleven<br> Months<br> Ended <br> December 31, <br> 2024** |
| Beginning balance | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Charged to income tax expense | 1371 | - |
| Ending balance | $**1371** | $**-** |

---

The net increase in the valuation allowance during the year ended December 31, 2025, was $1.4 million and was recorded as a charge to income tax expense. There was no net change during the eleven months ended December 31, 2024.

[**Table of Contents**](#C_001)

The difference between the tax expense (benefit) derived by applying the federal statutory income tax rate to net losses and the expense recognized in the consolidated financial statements is as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year Ended<br> December 31,<br> 2025** | **Year Ended<br> December 31,<br> 2025** |
|  | **Amount** | **Percentage** |
| U.S. Federal taxes at statutory rate | $(65853) | 21.0% |
| State tax provision, net<sup>(1)</sup> | (1049) | 0.3% |
| Nontaxable or nondeductible items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Permanent differences | 15 | (0.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal costs | 363 | (0.1)% |
| Total nontaxable or nondeductible items | 378 | (0.1)% |
| Changes in uncertain recognized tax benefits | 470 | (0.1)% |
| Other | (7) | 0.0% |
| **Provision (Benefit) for Income Taxes** | $**(66061)** | **21.1%** |

---

(1) State
 taxes in California, New York, and Texas made up the majority (greater than 50 percent) of
 the tax effect in the state tax provision category.

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Eleven Months Ended<br> December 31, <br> 2024** | **Eleven Months Ended<br> December 31, <br> 2024** |
|  | **Amount** | **Percentage** |
| U.S. Federal taxes at statutory rate | $11015 | 21.0% |
| State tax provision, net | 758 | 1.4% |
| Permanent differences | 5 | 0.0% |
| Legal costs | 241 | 0.5% |
| Uncertain tax positions | 286 | 0.5% |
| **Provision (Benefit) for Income Taxes** | $**12305** | **23.4%** |

---

The total amount of unrecognized tax benefits, as of December 31, 2025, and 2024, was $0.7 million and $0.3 million, respectively, and if recognized these tax benefits would affect the Company's effective tax rate. The reconciliation of unrecognized tax benefits at the beginning and end of the year is as follows:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **Year Ended<br> December 31,<br> 2025** | **Eleven Months Ended <br> December 31, <br> 2024** |
| **Beginning Balance** | $**286** |  |
| Additions based on tax positions related to current year | 436 | 286 |
| Additions based on tax positions related to prior year | 34 | - |
| **Ending Balance** | $**756** | $**286** |

---

The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the year ended December 31, 2025, the Company recognized an immaterial amount of interest and penalties. During the eleven months ending December 31, 2024, the Company did not recognize any interest or penalties.

The Company files tax returns in the U.S. federal jurisdiction and several state jurisdictions. The Company is subject to U.S. federal and state income tax examinations for the year ended December 31, 2025 and for the eleven months ended December 31, 2024. The Company is not currently under audit for federal or state jurisdictions.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. The enactment of the OBBBA did not have a material impact on our effective tax rate for the year ended December 31, 2025.

**NOTE 17. Commitments and Contingencies** 

**Commitments – Purchase agreements**

In the normal course of business, the Company may enter into non-cancellable purchase commitments with various parties. As of December 31, 2025 and December 31, 2024, the Company had no outstanding non-cancellable purchase commitments.

**Contingencies** 

The Company is subject to legal proceedings arising in the ordinary course of business. The Company accrues losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued and could materially adversely affect the Company's business, cash flows, results of operations, financial condition, and prospects. Unless otherwise indicated, the Company is unable to estimate reasonably possible losses in excess of any amounts accrued.

[**Table of Contents**](#C_001)

Mawson Infrastructure Group

On February 23, 2022, Celsius Mining entered into a Co-Location Agreement with Luna Squares LLC, a subsidiary of Mawson Infrastructure Group., Inc., a bitcoin miner and public Company listed on the NASDAQ (collectively, "Mawson"), under which Mawson hosted miners owned by Celsius Mining at Mawson's facility in Midland, Pennsylvania. On August 23, 2023, the agreement expired. Following expiration, Mawson failed to return Celsius Mining's $15.3 million deposit to Celsius Mining and Celsius Mining failed to pay $5.1 million in Mawson invoices. Celsius Mining initiated an adversary complaint against Mawson in the Bankruptcy Court seeking return of the amounts owed to it under the Co-Location Agreement, to offset the unpaid invoices against the deposit, and other damages suffered by Celsius Mining due to breaches of the contract. The Mawson matter was concluded in February 2026. See further discussion within *Note 20 – Subsequent Events*.

Based on current information, the Company does not believe a material loss, if any, can be reasonably estimated from any claims, lawsuits, and proceedings to which the Company is subject, either individually or in the aggregate. Therefore, no contingent liabilities have been recorded by the Company as of December 31, 2025 or December 31, 2024 in respect to the ongoing legal proceedings.

**NOTE 18. Litigation settlement** 

Effective June 27, 2025, the Company entered into a cooperation agreement with certain third parties and stockholders of the Company (the "Plaintiff parties") to appoint two new directors to the Board of Directors and settle open litigation matters that arose during 2025. As part of the agreements and as compensation to the Plaintiff parties for expenses incurred in 2025, the Company paid amounts to the Plaintiffs or on the Plaintiffs' behalf totaling $8.3 million, which is offset by insurance proceeds of $4.7 million. There are no remaining contingencies or conditions related to this matter.

In connection with the Business Combination, the Company assumed a discontinued agreement between the Predecessor and a third party that required the third party to construct a virtual currency mining facility for the Predecessor. On December 1, 2024, the Company and the Predecessor entered into a settlement agreement to resolve the outstanding litigation claims, resulting in a cash payment of $6.8 million to the Company. There are no remaining contingencies or conditions related to this gain.

Litigation settlements are recognized as Realized gain (loss) on litigation settlement within Other income (expenses) in the Consolidated Statement of Operations.

**NOTE 19. Business segment data**

Selected financial and descriptive information is provided about reportable operating segments, considering a "management approach" concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the Company for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the Company's internal organization, focusing on financial information that the Company's Chief Executive Officer ("CEO"), who is the Chief Operating Decision Maker ("CODM"), uses to make decisions about the Company's operating matters.

With the execution of the agreement to lease the Ward County facility, the CODM began considering resource allocations and investments in Company operations separately between the historical cryptocurrency mining business and the prospects of leasing the Company's powered land and assets for use in the high-powered computing and artificial intelligence sectors. As such, the Company has determined it has two reportable segments: Cryptocurrency Mining and Digital Infrastructure Solutions. Each are individually managed and provide separate services. Revenues by segment represent revenues earned from the services offered within each segment. The Company does not report results by geographic region, as all of its operations are domestic. All revenues are generated through external customers, and the accounting policies applied to each reportable segment are consistent with those policies described in Note 2.

The primary metric reviewed by the CODM is adjusted gross profit, and this metric is reviewed to evaluate the Company's operating results, its business strategies, and to determine resource allocation for digital asset purchases and other expenditures. The Company defines adjusted gross profit as revenues less cost of revenues applicable to each reportable segment, exclusive of depreciation.

[**Table of Contents**](#C_001)

The following tables present financial information for the Company's reportable segments for the periods indicated (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Successor** | **Successor** | **Predecessor<br> (Debtor-in-<br> Possession)** |
|  | **Year End<br> December 31,<br> 2025** | **Eleven<br> Months Ended<br> December 31,<br> 2024** | **One Month Ended<br> January 31,<br> 2024** |
| **Cryptocurrency Mining Segment** | | | |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining revenue | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp;Less significant segment expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy costs | 53563 | 29103 | 2517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Labor expense | 7481 | 5443 | 449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hosting and revenue share expense | 25123 | 51158 | 6691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance and other facility expenses | 1809 | 4782 | 11 |
| &nbsp;&nbsp;&nbsp;Cost of cryptocurrency mining revenue, exclusive of depreciation | 87976 | 90486 | 9668 |
| Cryptocurrency mining adjusted gross profit | $47585 | $47942 | $5713 |
| **Digital Infrastructure Segment** |  |  |  |
| &nbsp;&nbsp;&nbsp;Digital infrastructure lease revenue | $5837 | $- | $- |
| &nbsp;&nbsp;&nbsp;Cost of digital infrastructure solutions revenue, exclusive of depreciation | 22 | - | - |
| Digital infrastructure solutions adjusted gross profit | $5815 | $- | $- |
| **Consolidated** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency mining revenue | $135561 | $138428 | $15381 |
| &nbsp;&nbsp;&nbsp;Digital infrastructure lease revenue | 5837 | - | - |
| Consolidated total revenue | $141398 | $138428 | $15381 |
| **Reportable segments' total adjusted gross profit** | $**53400** | $**47942** | $**5713** |
| &nbsp;&nbsp;&nbsp;Depreciation | 66702 | 42360 | 6216 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 49026 | 40600 | 2633 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on fair value of cryptocurrency | 66788 | (71744) | 150 |
| &nbsp;&nbsp;&nbsp;Realized (gain) on sale of cryptocurrency assets | (47404) | (5532) | (485) |
| &nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property and equipment | 10160 | (325) | 1793 |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 150325 |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | 68170 |  |  |
| &nbsp;&nbsp;&nbsp;Other operating expenses, net | 999 | 1105 | 197 |
| &nbsp;&nbsp;&nbsp;Interest (income) | (1215) | (1885) |  |
| &nbsp;&nbsp;&nbsp;Realized loss on cryptocurrency derivatives | 204 |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on energy derivatives |  |  | 159 |
| &nbsp;&nbsp;&nbsp;Realized (gain) on investments |  | (2422) |  |
| &nbsp;&nbsp;&nbsp;(Gain) loss on litigation settlement | 3429 | (6817) |  |
| &nbsp;&nbsp;&nbsp;Other expenses |  | 152 |  |
| &nbsp;&nbsp;&nbsp;Reorganization items, net | - | - | 5416 |
| &nbsp;&nbsp;&nbsp;**Income (loss) before provision for income taxes** | $**(313784)** | $**52450** | **(10366)** |

---

[**Table of Contents**](#C_001)

For the year ended December 31, 2025, depreciation expense was $66.7 million for the Cryptocurrency Mining segment and was immaterial for the Digital Infrastructure Solutions segment.

Capital expenditures for long-lived assets totaled $11.1 million during the year ended December 31, 2025, $7.7 million of which are attributable to the Cryptocurrency Mining segment and $3.3 million to the Digital Infrastructure Solutions segment. For the eleven months ended December 31, 2024, capital expenditures of $71.6 million are attributable entirely to the Cryptocurrency Mining segment, which represented the Company's sole reportable segment during that period. Capital expenditures incurred during the eleven months ended December 31, 2024 related to the Digital Infrastructure Solutions segment are included in the total assets allocated to that segment.

The following table presents total assets for the Company's reportable segments, all of which are held in the United States, for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Successor** | **Successor** |
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Cryptocurrency mining segment | $345313 | $817893 |
| Digital infrastructure solutions segment | 259691 | - |
| &nbsp;&nbsp;&nbsp;**Total Assets** | $**605004** | $**817893** |

---

**NOTE 20. Subsequent Events** 

Management has evaluated subsequent events through May 1, 2026, the date the financial statements were available to be issued.

In February 2026, the Company entered into a settlement that finalized the Mawson matter and resulted in a $5.1 million payment to the Company. The Company recorded an allowance as of December 31, 2025 for amounts determined to be uncollectible as a result of the settlement agreement, see further discussion within *Note 17 – Commitments and Contingencies*.

In February 2026, the Company elected not to renew its hosting arrangement with GXD. As a result, our mining equipment at that location was removed from service on or before March 31, 2026. The miners at GXD constituted approximately one third of our capacity to generate hashrate as of December 31, 2025, and management has determined that a majority of the equipment will be disposed and will not return to service. No incremental expenses were incurred in exiting the GXD arrangement.

In February 2026, the Company reached an agreement to amend the lease of its Ward County facility. The amended agreement obligates the tenant to lease an additional 89 MW of capacity when such capacity becomes available, and requires the Company to add the tenant as a qualified occupant for Texas data center tax incentive purposes. Total expected revenues under the amended lease agreement would increase to approximately $2.6 billion over the contract term if the company is able to access the additional capacity as planned.

[**Table of Contents**](#C_001)

**PART II** 

**INFORMATION NOT REQUIRED IN THE PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution.** 

The following is an estimate of the expenses that Ionic Digital Inc. (the "Registrant") may incur in connection with the securities being registered hereby (all of which are to be paid by the Registrant).

---

| |
|:---|
| SEC registration fee |
| Nasdaq Global Select Market Listing Fee \* |
| Printing Fees and expenses \* |
| Legal fees and expenses \* |
| Accounting fees and expenses \* |
| Transfer agent and registrar fees and expenses \* |
| Other advisors' fees \* |
| Financial printing and miscellaneous expenses \* |
| Total \* |

---

\* To be provided by amendment

**Item 14. Indemnification of Directors and Officers** 

Section 102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our amended and restated certificate of incorporation provides for this limitation of liability.

Section 145 of the DGCL provides that a Delaware corporation may indemnify any person who was, is or is threatened to be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or director has actually and reasonably incurred.

Section 145 further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity, or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under Section 145.

Our amended and restated certificate of incorporation and amended and restated bylaws provide that we must indemnify our directors and officers to the fullest extent authorized by the DGCL and must also pay expenses incurred in defending any such proceeding in advance of its final disposition upon delivery of an undertaking, by or on behalf of an indemnified person, to repay all amounts so advanced if it should be determined ultimately that such person is not entitled to be indemnified under this section or otherwise.

We entered into indemnification agreements with each of our current directors and executive officers. These agreements require us to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.

[**Table of Contents**](#C_001)

The indemnification rights set forth above shall not be exclusive of any other right that an indemnified person may have or hereafter acquire under any statute, provision of our amended and restated certificate of incorporation, our amended and restated bylaws, agreement, vote of stockholders or disinterested directors or otherwise.

We maintain standard policies of insurance that provide coverage (1) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (2) to us with respect to indemnification payments that we may make to such directors and officers.

**Item 15. Recent Sales of Unregistered Securities**

Since January 31, 2024, the Plan Effective Date, the Company has issued and sold the following unregistered securities:

● 37 million shares of Class A common stock for eligible holders of certain claims against Celsius;

● 374,261 shares of Class A common stock to Hut 8 pursuant to the Contribution Agreement;

● one share of Class B common stock to Hut 8 pursuant to the MSA;

● warrants to purchase up to an aggregate of 670,801 shares of common stock to Hut 8, which were cancelled in connection with the termination of the Mining MSA. For more information on the warrants, see the section titled "Certain Relationships and Related Person Transactions—Transactions Involving Related Parties — Warrant Agreements" above;

● 670,801 RSPA Shares, which were cancelled in connection with the termination of the Mining MSA. For more information on the terms of the restricted stock, see the section titled "Certain Relationships and Related Person Transactions—Transactions Involving Related Parties — Restricted Stock Agreement" above; and

● 40,000 shares of non-economic Series Z preferred stock, which will be redeemed following the Company's 2026 annual meeting of stockholders, scheduled to occur on July 13, 2026; and

● an aggregate of (i) 7,547,166 shares of Series A convertible preferred stock, par value $0.00001 per share (the "Series A Preferred Stock"), at a price of $53.00 per share, (ii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $63.60 per share, (iii) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $74.20 per share, and (iv) warrants to purchase an aggregate of 1,006,286 shares of Class A common stock at an exercise price of $87.45 per share (the warrants described in clauses (ii) through (iv), collectively, the "Warrants") to certain institutional accredited investors. For more information, see the section entitled "Prospectus Summary--Recent Developments--Private Placement" above.

 ****

Based upon the exemption provided by Section 1145 of the U.S. Bankruptcy Code, on November 9, 2023, the Bankruptcy Court entered an order confirming the Plan, which, among other things, provides that the issuance of the shares of common stock described in the first bullet point above conducted in accordance with the procedures described in the Plan, is, and shall be deemed to be, pursuant to Section 1145 of the U.S. Bankruptcy Code or Section 4(a)(2) of the Securities Act, or any other applicable state or U.S. federal securities law, exempt from the registration requirements of Section 5 of the Securities Act and any state or local law requiring registration for offer or sale of a security or registration or licensing of an issuer of, underwriter of, or broker dealer in, a security. The issuance of the shares of common stock and warrants described in the second through seventh bullet points above was pursuant to Section 4(a)(2) of the Securities Act, exempt from the registration requirements of Section 5 of the Securities Act.

[**Table of Contents**](#C_001)

**Item 16. Exhibits and Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;(a) **Exhibits** 

---

| | |
|:---|:---|
| **Number** | **Description** |
| 2.1 | [Master Conveyance Agreement, dated effective January 31, 2024, between Celsius Mining LLC, Ionic Digital Treasury Inc. and Ionic Digital Inc.](ionicdigiex2-1.htm) |
| **3.1** | **[Amended and Restated Certificate of Incorporation of Ionic Digital Inc.](ionicdigiex3-1.htm)** |
| **3.2** | **[Amended and Restated Bylaws of Ionic Digital Inc. (Effective February 13, 2025)](ionicdigiex3-2.htm)** |
| 3.3 | [Certificate of Designation of Series Z Preferred Stock](ionicdigiex3-3.htm) |
| 3.4 | [Certificate of Designation of Series A Convertible Preferred Stock](ionicdigiex3-4.htm) |
| 4.1 | [Form of Warrant](ionicdigiex4-1.htm) |
| **5.1** | **[Opinion of White & Case LLP](ionicdigiex5-1.htm)** |
| **10.1** | **[Amended and Restated Management Services Agreement, dated June 19, 2024, between the Company and U.S. Data Management Group LLC](ionicdigiex10-1.htm)** |
| **10.2** | **[Plan Sponsor Contribution Agreement, dated January 31, 2024, between the Company and U.S. Data Management Group LLC](ionicdigiex10-2.htm)** |
| **10.3** | **[Amendment, dated June 19, 2024, to Plan Sponsor Contribution Agreement](ionicdigiex10-3.htm)** |
| **10.4+** | **[Form of Indemnification Agreement of Ionic Digital Inc.](ionicdigiex10-4.htm)** |
| **10.5+** | **[Ionic Digital Inc. Omnibus Incentive Plan](ionicdigiex10-5.htm)** |
| **10.6** | **[Energy Management Services Agreement, dated November 17, 2022, between Celsius Mining LLC and Priority Power Management, LLC](ionicdigiex10-6.htm)** |
| **10.7** | **[Energy Management and Consulting Services Agreement, dated September 28, 2021, between Celsius Core LLC and Priority Power Management, LLC](ionicdigiex10-7.htm)** |
| **10.8** | **[Amendment to Energy Management and Consulting Services Agreement, dated August 2, 2022, between Celsius Mining LLC and Priority Power Management LLC](ionicdigiex10-8.htm)** |
| **10.9** | **[Assignment and Assumption Agreement, dated January 31, 2024, between Celsius Mining LLC, Priority Power Management, LLC and Ionic Digital Inc.](ionicdigiex10-9.htm)** |
| **10.10+** | **[Offer Letter, dated as of December 9, 2024, between Ionic Digital Inc. and Anthony McKiernan](ionicdigiex10-10.htm)** |
| **10.11** | **[Master Custody Service Agreement, dated January 26, 2024, between Anchorage Digital Bank N.A. and Ionic Digital Treasury Inc.](ionicdigiex10-11.htm)** |
| **10.12** | **[Custodial Services Agreement, dated June 18, 2024, between Ionic Digital Treasury Inc. and Fidelity Digital Asset Services, LLC](ionicdigiex10-12.htm)** |
| **10.13+** | **[Employment Agreement, dated as of November 17, 2025, between Ionic Digital Inc. and Andy Stewart](ionicdigiex10-13.htm)** |
| **10.14+** | **[Performance Restricted Stock Unit Award Grant Notice, dated as of November 17, 2025, between Ionic Digital Inc. and Andy Stewart](ionicdigiex10-14.htm)** |
| **10.15+** | **[Restricted Stock Unit Award Grant Notice, dated as of November 17, 2025, between Ionic Digital Inc. and Andy Stewart](ionicdigiex10-15.htm)** |
| **10.16+** | **[Net Lease Agreement, dated as of October 14, 2025, between Ionic Digital Cedarvale LLC and Nscale Ward County LLC, as amended by Amendment No. 1 to Net Lease Agreement, dated February 27, 2026](ionicdigiex10-16.htm)** |
| 10.17+ | **[Second Amended and Restated Professional Services Agreement, dated November 24, 2024, between Ionic Digital and Laura Schnaidt](ionicdigiex10-17.htm)** |
| 10.18 | [Client Service Agreement, dated September 2, 2025, between ZRG Interim Solutions and Ionic Digital](ionicdigiex10-18.htm) |
| 10.19† | [Form of Securities Purchase Agreement, dated June 26, 2026](ionicdigiex10-19.htm) |
| 10.20++ | [Registration Rights Agreement, dated June 26, 2026, by and among Ionic Digital Inc. and the Investors named therein](ionicdigiex10-20.htm) |
| **16.1** | **[Letter regarding change in accountants](ionicdigiex16-1.htm)** |
| **21.1** | **[List of subsidiaries of Ionic Digital](ionicdigiex21-1.htm)** |
| **23.1** | **[Consent of BDO USA, P.C.](ionicdigiex23-1.htm)** |
| **23.2** | **[Consent of White & Case LLP (included in Exhibit 5.1)](ionicdigiex5-1.htm)** |
| **24.1** | **[Power of Attorney (included on the signature page of the initial filing)](#g_001)** |
| **99.1** | **[Code of Ethics](ionicdigiex99-1.htm)** |
| **99.2** | **[Audit Committee Charter](ionicdigiex99-2.htm)** |
| **107** | **[Filing Fee Table](ionicdigiex-fee.htm)** |

---

---

| |
|:---|
| Indicates a management contract or compensatory plan. |
| Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit because such information is both (i) non-material and (ii) would be competitively harmful if publicly disclosed. |
| Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K Item 601(b)(2). The Registrant agrees to furnish supplementally a copy of all omitted exhibits and schedules to the SEC upon its request. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(b) **Financial Statement Schedules.** None.

[**Table of Contents**](#C_001)

**Item 17. Undertakings.** 

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) to file, during any
 period in which offers or sales are being made, a post-effective amendment to this registration
 statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. to
 include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended
 (the "Securities Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. to
 reflect in the prospectus any facts or events arising after the effective date of the registration
 statement (or the most recent post-effective amendment thereof) which, individually or in
 the aggregate, represent a fundamental change in the information set forth in the registration
 statement. Notwithstanding the foregoing, any increase or decrease in volume of securities
 offered (if the total dollar value of securities offered would not exceed that which was
 registered) and any deviation from the low or high end of the estimated maximum offering
 range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
 424(b) (§ 230.424(b) of this chapter) if, in the aggregate, the changes in volume and
 price represent no more than 20% change in the maximum aggregate offering price set forth
 in the "Calculation of Filing Fee Tables" or "Calculation of Registration
 Fee" table, as applicable, in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. to
 include any material information with respect to the plan of distribution not previously
 disclosed in the registration statement or any material change to such information in the
 registration statement;

provided, however, that paragraphs (i), (ii) and (iii) do not apply if the registration statement is on Form S-1 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement;

Insofar as indemnification for liabilities arising under the Securities Act of 1933 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 Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act of 1933 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, 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 whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

[**Table of Contents**](#C_001)

**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Washington, District of Columbia, on June 29, 2026.

---

| | |
|:---|:---|
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| By: | /s/ Andy Stewart |
| Name: | Andy Stewart |
| Title: | Chief Executive Officer |

---

**POWER OF ATTORNEY** 

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Andy Stewart and Chris Hickman, as his or her true and lawful attorneys-in-fact, proxies and agents, each with full power of substitution and resubstitution and full power to act without the other, for him in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments or any abbreviated registration statement and any amendments thereto filed pursuant to Rule 462(b) increasing the number of securities for which registration is sought), and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact, proxies and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact, proxies and agents, 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 on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Andy Stewart | **Chief Executive Officer and Director** | **June 29, 2026** |
| **Andy Stewart** | ***(Principal Executive Officer)*** |  |
| /s/ Chris Hickman | **Chief Financial Officer** | **June 29, 2026** |
| **Chris Hickman** | ***(Principal Accounting and Financial Officer)*** |  |
| /s/ Elizabeth LaPuma | **Chairperson of the Board** | **June 29, 2026** |
| **Elizabeth LaPuma** |  |  |
| /s/ Michael Abbate | **Director** | **June 29, 2026** |
| **Michael Abbate** |  |  |
| /s/ Thomas DiFiore | **Director** | **June 29, 2026** |
| **Thomas DiFiore** |  |  |
| /s/ Scott Duffy | **Director** | **June 29, 2026** |
| **Scott Duffy** |  |  |
| /s/ Scott Flanders | **Director** | **June 29, 2026** |
| **Scott Flanders** |  |  |
| /s/ Oliver Wiener | **Director** | **June 29, 2026** |
| **Oliver Wiener** |  |  |

---

## Exhibit 2.1

**Exhibit 2.1**

**MASTER CONVEYANCE AGREEMENT**

THIS MASTER CONVEYANCE AGREEMENT (this "<u>Agreement</u>"), dated effective January 31, 2024 (the "<u>Effective Date</u>"), by and between Celsius Mining LLC, a Delaware limited liability company ("<u>Seller</u>"), and Ionic Digital Treasury Inc., a Delaware corporation ("<u>Buyer</u>") and wholly owned indirect subsidiary of Ionic Digital Inc., a Delaware corporation ("<u>Parent</u>"). Seller and Buyer are sometimes herein referred to collectively as the "<u>Parties</u>" and individually as a "<u>Party</u>."

<u>Recitals</u>

**WHEREAS**, on July 13, 2022, and December 7, 2022, as applicable, Seller and certain of its debtor affiliates (collectively, the "<u>Debtors</u>") commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended (the "<u>Bankruptcy Code</u>") in the United States Bankruptcy Court for the Southern District of New York (the "<u>Bankruptcy Court</u>");

**WHEREAS**, on January 29, 2024, the Debtors filed the *Modified Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates (Conformed for MiningCo Transaction)* [Docket No. 4289] (as may be amended, supplemented, or otherwise modified from time to time, the "<u>Plan</u>");<sup>1</sup>

**WHEREAS**, on November 30, 2023, the Debtors filed the *Joint Motion of the Debtors and the Committee for Entry of an Order (I) Approving the implementation of the MiningCo Transaction and*

*(II) Granting Related Relief* [Docket No. 4050];

**WHEREAS**, on November 9, 2023, the Bankruptcy Court confirmed the *Modified Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* [Docket No. 3972] (the "<u>Confirmation Order</u>"); and on December 27, 2023, the Bankruptcy Court entered an order granting the Wind Down Motion [Docket No. 4171] (the "<u>MiningCo Order</u>");

**WHEREAS**, in furtherance of the transactions contemplated by the Plan, the Confirmation Order and the MiningCo Order, Seller and Buyer have agreed that Seller shall, pursuant to and in accordance with the terms of this Agreement and the Plan, sell, transfer, assign, convey and deliver, or cause to be sold, transferred, assigned, conveyed and delivered, to Buyer (or the applicable Buyer Assignee (as defined below)), and Buyer (or the applicable Buyer Assignee) shall accept, all right, title and interest of Seller, in, to and under the Transferred Assets (as defined below), and Buyer shall assume, effective as of the Effective Date, the Assumed Liabilities (as defined below);

**WHEREAS**, Parent was incorporated on January 5, 2024;

**WHEREAS**, Ionic Digital Holdings, Inc. ("<u>Intermediate</u>"), a Delaware corporation, was incorporated on January 16, 2024;

**WHEREAS**, Buyer was incorporated on January 16, 2024;

**WHEREAS**, Ionic Digital Mining LLC, a Delaware limited liability company ("<u>IDM</u>"), was formed as a wholly owned subsidiary of Buyer on January 18, 2024;

**WHEREAS**, Ionic Digital Services LLC, a Delaware limited liability company, was formed as a wholly owned subsidiary of Buyer on January 18, 2024;

 **WHEREAS**, Ionic Digital Garden City LLC, a Delaware limited liability company ("<u>Garden Cit</u>y"), Ionic Digital East Stiles LLC, a Delaware limited liability company ("<u>East Stiles</u>"), Ionic Digital Cedarvale LLC, a Delaware limited liability company ("<u>Cedarvale</u>"), and Barber Lake Development LLC, a Delaware limited liability company ("<u>Barber Lake</u>," and, together with Cedarvale, IDM, Garden City, and East Stiles, the "<u>Buyer Subsidiaries</u>"), were formed as wholly owned subsidiaries of IDM on January 22, 2024;

**WHEREAS**, the Buyer Subsidiaries generally are treated for U.S. federal income tax purposes as disregarded as entities separate from Buyer;

<sup>1</sup> Capitalized terms used but not defined herein shall have the meanings given to them in the Plan.

**WHEREAS**, on January 31, 2024, Parent issued 37,000,000 shares of Class A common stock, par value $0.00001 per share (the "<u>Parent Shares</u>") to Intermediate, which in turn contributed the Parent Shares to Buyer; and

**WHEREAS**, in furtherance of the transactions contemplated by the Plan, the Confirmation Order and the MiningCo Order, and in consideration for the transfer of the Transferred Assets, Buyer shall transfer to Seller, and Seller shall accept from Buyer, the Parent Shares.

**NOW THEREFORE**, in consideration of the mutual covenants and agreements contained herein, and in pursuance of the Plan, the Confirmation Order and the MiningCo Order, the Parties hereto, intending to be legally bound, hereby covenant and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. <u>Assignment, Contribution and Sale</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Buyer's rights in <u>Section 9(b</u>), Seller hereby sells, transfers, assigns, conveys and delivers to Buyer, each in accordance and consistent with Article IV, Section D. Paragraph 1 of the Plan, (i) all of Seller's right, title and interest in and to the MiningCo Assets, including, without limitation, all of the agreements, assets, properties and equity interests set forth on <u>Schedule A</u>; (ii) all original and electronic books and records relating thereto or otherwise related to the MiningCo business prior to the Effective Date; (iii) an aggregate amount of cash (corresponding to the MiningCo Capitalization Amount) equal to $195,728,190; and (iv) all Bitcoin held in MiningCo's wallet, which is estimated to include approximately 538.2 Bitcoin as of the end of the day immediately prior to the Effective Date (the "<u>Transferred Assets</u>"), and Buyer hereby accepts such sale, transfer, assignment, conveyance and delivery as adequate consideration for the transactions contemplated herein. With respect to any cash constituting Transferred Assets, Seller will transfer the funds by wire of immediately available funds to the account or accounts of Buyer or its Affiliates specified in writing by Buyer (an email or spreadsheet of amounts and accounts being sufficient). With respect to any Bitcoin remaining in the wallets of Seller following the conveyance of the other Transferred Assets (even if received after the Effective Date), Seller shall transfer (in one or more transfers) such Bitcoin to wallets designated in writing by Buyer as promptly as practicable on or after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In exchange for the assets, property, equity interests and books and records transferred by Seller pursuant to <u>Section 1(a</u>), Buyer hereby transfers to Seller, and Seller hereby accepts from Buyer, the Parent Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The exchanges, transfers, conveyances and deliveries contemplated by this Agreement shall be deemed to be effective as of 11:59 p.m. (UTC) on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Assumed Liabilities</u>. Subject to Buyer's rights in <u>Section 9(b</u>), Buyer hereby assumes all of the obligations of Seller (a) under any of the contracts constituting Transferred Assets (collectively, the "<u>Assigned Agreements</u>"), but in any case only to the extent that such obligations: (i) arise after the Effective Date and do not arise from or relate to any event, circumstance or condition occurring or existing on or prior to the Effective Date that, with or without notice or lapse of time or both, would constitute or result in a breach (by Seller or any of its Affiliates) of any of such Assigned Agreements; and (ii) are ascertainable (in nature and amount) solely by reference to the express terms of such Assigned Agreements; (b) for Retained Property Taxes, other than Retained Property Taxes for which Seller is responsible under <u>Section 7(f</u>);

(c) for sales and use Taxes to the extent required to be paid with respect to purchases of transformers related to the Cedarvale Assets; and (d) for any other liabilities for which Buyer is responsible pursuant to the express terms of this Agreement ((a) through (d), the "<u>Assumed Liabilities</u>"). Buyer shall not assume any liabilities other than the Assumed Liabilities and, pursuant to Article IV.D. of the Plan, Buyer shall not be liable for any other Liens, Claims, interests, charges, or other encumbrances (in each case as defined in the Plan) or liabilities of Seller (collectively, the "<u>Retained Liabilities</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Direction</u>. Pursuant to <u>Section 9(a</u>) of this Agreement, Buyer hereby assigns to the Buyer Subsidiaries its rights to acquire certain of the Transferred Assets, and directs Seller to assign, deliver, convey and transfer such Transferred Assets to such Buyer Subsidiaries (each, a "<u>Buyer Assignee</u>"), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer hereby directs Seller to deliver to Garden City the Transferred Assets set forth in Section 1 of <u>Schedule A</u> (the "<u>Garden City Assets</u>"), pursuant to a special warranty deed in form and substance substantially similar to <u>Schedule B-1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer hereby directs Seller to deliver to East Stiles the Transferred Assets set forth in Section 2 of <u>Schedule A</u> (the "<u>East Stiles Assets</u>"), pursuant to a special warranty deed in form and substance substantially similar to <u>Schedule B-2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer hereby directs Seller to deliver to Cedarvale the Transferred Assets set forth in Section 3 of <u>Schedule A</u> (the "<u>Cedarvale Assets</u>"), pursuant to a special warranty deed in form and substance substantially similar to <u>Schedule B-3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer hereby directs Seller to deliver to Barber Lake the Transferred Assets set forth in Section 4 of <u>Schedule A</u> (the "<u>Barber Lake Assets</u>"), pursuant to the terms and conditions contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer hereby directs Seller to deliver, and Seller hereby sells, transfers, assigns, conveys and delivers to IDM the Transferred Assets set forth in Section 5 of <u>Schedule A</u> (the "<u>IDM Assets</u>"), (i) to the extent comprising real property interests located in Glasscock County, Texas, pursuant to an assignment and bill of sale in form and substance substantially similar to <u>Schedule C-1</u>, (ii) to the extent comprising real property interests located in Reagan County, Texas, pursuant to an assignment and bill of sale in form and substance substantially similar to <u>Schedule C-2</u>, and (iii) otherwise, pursuant to the terms and conditions contained herein; <u>provided</u> that, for the avoidance of doubt, the IDM Assets expressly exclude the Barber Lake Assets, which Buyer directs Seller to deliver pursuant to <u>Section 3(d</u>).

Unless otherwise specified in the foregoing clauses (a) through (e), Seller hereby sells, transfers, assigns, conveys and delivers the Transferred Assets to Buyer, and Buyer accepts such Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. <u>Representations and Warranties of Seller</u>. Seller represents and warrants to Buyer as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Seller is duly organized, validly existing and in good standing in the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller is the legal and beneficial owner of the Transferred Assets and is transferring, assigning, transferring, conveying and delivering the Transferred Assets to Buyer free and clear of any and all liens, pledges, charges, security interests or other encumbrances of any nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller has the full power, authority and legal right to execute, deliver and perform its obligations under this Agreement. Seller has obtained all necessary corporate approvals for its execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller has duly authorized, executed and delivered this Agreement and, assuming the due authorization, execution and delivery by Buyer, this Agreement constitutes the legal, valid and binding agreement of Seller, enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There are no actions, suits, claims, investigations or other legal proceedings pending or, to the knowledge of Seller, threatened against or by Seller that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Seller (i) is acquiring the Parent Shares in compliance with all applicable laws, rules, regulations and other legal requirements including, without limitation, the legal requirements of jurisdictions in which Seller is resident and in which such acquisition is being consummated, and (ii) has consulted with legal counsel and financial, accounting, regulatory and tax advisors, as necessary, to ensure it is eligible to, directly or indirectly, acquire all or any part of the Parent Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Except for the representations and warranties expressly contained in this <u>Section</u> 4 (the "<u>Express Representations</u>") (it being understood that Buyer and its Affiliates have relied only on such Express Representations), Buyer acknowledges and agrees, on its own behalf and on behalf of its Affiliates, including the Buyer Subsidiaries, that neither Seller nor any other Person on behalf of Seller makes, and neither Buyer nor any of its Affiliates, including the Buyer Subsidiaries, has relied on, is relying on, or will rely on the accuracy or completeness of any express or implied representation or warranty with respect to Seller, any of its Affiliates, the Transferred Assets, or the Assumed Liabilities or with respect to any information, statements, disclosures, documents, projections, forecasts or other material of any nature made available or provided by any Person, including in any data site or elsewhere, to Buyer or any of its Affiliates or representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties of Buyer</u>. Buyer hereby represents, warrants and covenants to Seller as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Buyer is duly incorporated, validly existing and in good standing in the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Buyer has the full power, authority and legal right to execute, deliver and perform its obligations under this Agreement. Buyer has obtained all necessary corporate approvals for its execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) The Parent Shares have been duly and validly issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer has duly authorized, executed and delivered this Agreement and, assuming the due authorization, execution and delivery by Seller, this Agreement constitutes the legal, valid and binding agreement of Buyer, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, liquidation, receivership, moratorium and other laws relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution, delivery and performance by Buyer of this Agreement do not and will not(i) conflict with or violate any provision of (A) Buyer's organizational or governing documents, or (B) assuming the accuracy of Seller's representations and warranties set forth in <u>Section 4</u> hereof, any applicable law, rule or regulation of any applicable governmental authority; or (ii) result in any breach of or default under any contract, agreement or other instrument to which Buyer is a Party. Neither the execution and delivery by Buyer of this Agreement, nor the consummation by Buyer of the transactions contemplated hereby, requires or will require any authorization, consent, approval, license or exemption of any governmental authority or any other third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Non-Survival of Representations and Warranties</u>. Each of the representations and warranties of the Parties set forth in this Agreement or in any other document contemplated hereby, or in any certificate delivered hereunder or thereunder, will terminate effective immediately as of the Effective Date such that no claim for breach of any such representation or warranty, detrimental reliance or other right or remedy (whether in contract, in tort or at law or in equity) may be brought with respect thereto after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7. <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parties hereto shall, and shall cause its Affiliates to, for U.S. federal and applicable state and local income tax purposes, treat the sale of the MiningCo Assets in exchange for the Parent Shares and the assumption of the Assumed Liabilities as a taxable transaction, and shall file all Tax Returns in accordance with such treatment and not take any Tax related action inconsistent with such treatment, in each case, unless otherwise required by a "determination" within the meaning of Section 1313(a) of the Code (and analogous provisions of state and local law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any sales, use, purchase, transfer, franchise, deed, fixed asset, stamp, documentary stamp, use, or other Taxes and recording charges payable by reason of the sale of the MiningCo Assets or the assumption of the Assumed Liabilities under this Agreement or the transactions contemplated hereby (the "<u>Transfer Taxes</u>") shall be borne fifty percent (50%) by Seller and fifty percent (50%) by Buyer, up to a maximum (in the aggregate) of $3,100,000, and thereafter entirely by Seller. No later than five (5) days prior to the due date for filing any such Transfer Tax, Buyer shall pay to Seller Buyer's portion of such Transfer Taxes, and Seller shall timely pay or cause such Transfer Taxes to be paid, and shall timely file or cause to be timely filed all Tax Returns related to any Transfer Taxes. Buyer and Seller shall reasonably cooperate and use their reasonable best efforts to establish any available exemption from (or reduction in) any Transfer Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For U.S. federal and applicable state and local income Tax purposes, Buyer, Seller, and their respective Affiliates shall allocate the Parent Shares (and any Assumed Liabilities treated as part of the purchase price for applicable income Tax purposes) among the MiningCo Assets in accordance with a valuation of the MiningCo assets performed by, at Buyer's sole discretion, either Stout Risius Ross, LLC (or a subsidiary thereof) or by Ryan, LLC (or a subsidiary thereof), or by a nationally recognized valuation firm to be mutually agreed upon by the Parties (the "<u>Allocation</u>"). As soon as commercially practicable, but no later than forty-five (45) days following the purchase and sale of the MiningCo Assets, Buyer and Seller shall retain such valuation firm to perform the valuation, and shall cooperate, as and to the extent reasonably requested by the valuation firm, in connection therewith. Buyer and Seller shall be afforded a reasonable opportunity to review and provide comments on any draft valuation prepared by the valuation firm, at their respective sole expense, and shall cooperate in good faith to resolve any dispute relating to valuation matters, with any such unresolved dispute between the Parties being decided by the valuation firm. The costs and expenses of the valuation firm shall be borne solely by Buyer. The Parties and their respective Affiliates shall file all Tax Returns in accordance with such Allocation and not take any Tax related action inconsistent with the Allocation, in each case, unless otherwise required by a "determination" within the meaning of Section 1313(a) of the Code (and analogous provisions of state and local law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer and Seller shall reasonably cooperate, as and to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns and any action, audit, litigation, or other proceeding with respect to Taxes, in each case, attributable to the MiningCo Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as otherwise provided by <u>Section 7(f</u>), Seller shall prepare and timely file (i) all Tax Returns for the MiningCo Assets for any tax period ending on or before the Effective Date and (ii) all income Tax Returns of Seller, and shall pay any Taxes shown as due on such Tax Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Buyer shall prepare and timely file all Tax Returns for real property and personal property Taxes with respect to the MiningCo Assets assessed for the 2024 calendar year that are due in arrears following the Effective Date ("<u>Retained Property Taxes</u>"). Buyer shall prepare such Tax Returns in a manner consistent with applicable past practice, except to the extent required otherwise by applicable law, and shall provide Seller with a draft of such Tax Returns at least ten business days prior to the filing of any such Tax Return. Buyer shall incorporate any changes reasonably requested by Seller with respect to such Tax Returns. No later than five (5) days prior to the due date for filing any such Tax Returns, Seller shall pay one-twelfth (1/12th) of the amounts of Retained Property Taxes reflected on such Tax Returns to Buyer, and Buyer shall remit such Taxes to the applicable taxing authorities with the filing of such Tax Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Buyer shall not file an amendment to any previously-filed Tax Return with respect Retained Property Taxes unless Buyer receives (i) Seller's prior written consent, such consent not to be unreasonably withheld, conditioned or delayed, provided that Seller's consent shall not be deemed unreasonably withheld conditioned or delayed if such amendment is reasonably expected to increase the Tax liabilities of Seller or its affiliates or increase Seller's obligations hereunder or (ii) an opinion from a nationally recognized accounting firm or law firm that there is no adequate "reporting position" with respect to any previously-asserted position with respect to which such amendment is being made. Upon a determination that there is no adequate "reporting position" with respect a previously asserted position with respect to which an amendment is being made, Buyer shall provide no less than forty-five (45) days' notice of such position before filing any such amended Tax Return. In the event Seller disagrees with such Tax position, and the dispute cannot be resolved between the Parties, such dispute shall be submitted to an independent national accounting firm or law firm for resolution, with the costs of such resolution to be evenly split by Buyer, on the one hand, and Seller, on the other hand. The determination of such independent national accounting firm or law firm shall be binding on all Parties and any Tax Return shall be filed consistently with such resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) On the Effective Date, Seller shall deliver to Buyer a duly executed IRS From W-9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this Agreement, "<u>Tax</u>" shall mean any taxes, imposts, duties, charges, fees, levies or other assessments imposed by any governmental authority of any kind whatsoever, in each case in the nature of a tax (whether payable directly or by withholding and whether disputed or not) and together with any interest, penalties and additions imposed with respect thereto; and "<u>Tax Return</u>" shall mean any return, declaration, statement, report, claim, schedule, form or information return filed or required to be filed with any governmental authority relating to Taxes, including any supplement, schedule or attachment thereto and any amendment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Debtor Reserves and Obligations</u>. Seller agrees to establish and maintain appropriate reserves for all of its payment and obligations hereunder. In the event that Seller dissolves or seeks to dissolve, Seller will, prior to any dissolution, cause a Debtor Affiliate to assume all of Seller's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9. <u>Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parties hereto agrees to execute and deliver such additional documents, instruments, conveyances and assurances, and take such further actions, as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement, the Plan, the Confirmation Order, and the MiningCo Order, which may include, without limitation, other bills of sale or assignments of lease (in recordable form, if applicable) with respect to the Transferred Assets in accordance with the terms hereof. Without limiting the foregoing, in the event that any Affiliate of Seller holds any books and records relating to the MiningCo Assets or otherwise related to the MiningCo business prior to the Effective Date, then, upon Buyer written request following discovery thereof, Seller shall cause such Affiliate to transfer to Buyer all of such Affiliate's right, title, and interest in and to such books and records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything herein to the contrary, Buyer shall have up to forty-five (45) days following the Effective Date to designate, by written notice to Seller, any of the Assigned Agreements as rejected (any such Assigned Agreement, a "<u>Re</u>j<u>ected Asset</u>", and such notice, a "<u>Re</u>j<u>ection Notice</u>"). Any Rejected Asset the subject of a Rejection Notice shall be deemed to be no longer a Transferred Asset for purposes of this Agreement, shall be automatically reconveyed to Seller, and all liabilities associated with such Rejected Asset shall be Retained Liabilities for purposes of this Agreement on and from the date of the Rejection Notice. Pursuant to <u>Section 9(a</u>), Buyer shall take any such further actions as may be required to cause the reconveyance back to Seller of any Rejected Asset following the issuance of a Rejection Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Entire Agreement</u>. This Agreement and those other documents expressly referred to herein embody the complete agreement and understanding among the Parties and supersede and preempt any prior understandings, agreements or representations by or among the Parties, written or oral, which may have related to the subject matter hereof in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11. <u>Successor and Assigns; Third Party Beneficiaries; No Third Party Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and permitted assigns. No Party may assign any of its rights or obligations hereunder without the prior written consent of the other Party hereto, and any purported assignment in violation of this sentence shall be null and void; <u>provided</u> that Buyer may assign all or any part of its rights and obligations under this Agreement to one or more of the Buyer Subsidiaries, or to any entity wholly-owned (directly or indirectly) by Buyer; <u>provided</u>, <u>further</u>, that no such assignment shall relieve Buyer of any of its obligations under this Agreement except to the extent such obligation is satisfied by such assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as expressly set forth herein, nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, following the Effective Date, Seller or any of its successors or assigns shall (i) amalgamate, consolidate with or merge or wind up into any other person and shall not be the continuing or surviving entity, or (ii) transfer all or substantially all of its assets to any person, then, and in each such case, proper provisions shall be made so that the successors and assigns of Seller shall assume all of the obligations set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Headin</u>gs. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Non-Recourse</u>. This Agreement may only be enforced against, and any action, proceeding or claim based upon, arising out of or related to this Agreement may only be brought against, the Persons that are expressly named as parties to this Agreement. Except to the extent named as a party to this Agreement, and then only to the extent of the specific obligations of such parties set forth in this Agreement, no past, present or future shareholder, member, partner, manager, director, officer, employee, Affiliate, agent or representative of any Party will have any liability (whether in contract, tort, equity or otherwise) for any of the representations, warranties, covenants, agreements or other obligations or liabilities of any of the Parties and each of such Persons are intended third party beneficiaries of this <u>Section 13</u> as if a party directly hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Amendment and Modification; Waiver</u>. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each Party hereto. No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving. No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Governing Law</u>. This Agreement and any dispute arising out of, relating to or in connection with this Agreement, shall be construed (both as to validity and performance), interpreted and enforced in accordance with the laws of the State of New York, without regard to any conflicts of law provisions thereof that would result in the application of the laws of any other jurisdiction. Each Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement in the Bankruptcy Court, and solely in connection with claims arising under this Agreement: (a) irrevocably submits to the exclusive jurisdiction of the Bankruptcy Court; (b) waives any objection to laying venue in any such action or proceeding in the Bankruptcy Court; and (c) waives any objection that the Bankruptcy Court is an inconvenient forum or do not have jurisdiction over any Party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Copies of originals, including copies delivered by facsimile, pdf or other electronic means, shall have the same import and effect as original counterparts and shall be valid, enforceable and binding for the purposes of this Agreement.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their duly authorized officers as of the date first above written.

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| | | |
|:---|:---|:---|
| **<u>SELLER:</u>** | **<u>SELLER:</u>** | **<u>SELLER:</u>** |
| **CELSIUS MINING LLC** | **CELSIUS MINING LLC** | **CELSIUS MINING LLC** |
| By: | /s/ Chris Ferraro | /s/ Chris Ferraro |
|  | Name: | Chris Ferraro |
|  | Title: | Authorized Signer |

---

[*Signature page to Master Conveyance Agreement*]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their duly authorized officers as of the date first above written.

---

| | |
|:---|:---|
| **<u>SELLER:</u>** | **<u>SELLER:</u>** |
| **CELSIUS MINING LLC** | **CELSIUS MINING LLC** |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | | |
|:---|:---|:---|
| **<u>BUYER:</u>** | **<u>BUYER:</u>** | **<u>BUYER:</u>** |
| **IONIC DIGITAL TREASURY INC.** | **IONIC DIGITAL TREASURY INC.** | **IONIC DIGITAL TREASURY INC.** |
| By: | /s/ Matt Prusak | /s/ Matt Prusak |
|  | Name: | Matt Prusak |
|  | Title: | President and Secretary |

---

[*Signature page to Master Conveyance Agreement*]

**SCHEDULE A**

**TRANSFERRED ASSETS**

**1.** **Garden City Assets** 

● All real property affiliated with site

**2.** **East Stiles Assets** 

● All real property affiliated with site

**3.** **Cedarvale Assets** 

● All real property and improvements thereto affiliated with site, including:

○ Tract One: the surface only of a forty-three decimal four one (43.41) acre, more or less, tract of land out of Section 229, Block 34, H & TC RR Co. Survey, A292, Ward County, Texas;

○ Tract Two: the surface only of a forty-two decimal four six (42.46) acre, more or less, tract of land out of Section 229, Block 34, H & TC RR Co. Survey, A292, Ward County, Texas; and

○ Tract Three: a fifty decimal zero seven nine (50.079) acre tract of land out of Section 229, Block 34, H & TC RR Co. Survey, A292, Ward County, Texas.

**4.** **Barber Lake Assets** 

● That certain Letter of Intent with Terms and Conditions for Proposed Development of Sites for Virtual Currency Mining Facilities, dated February 17, 2021, by and between Priority Power Management, LLC and Celsius Mining LLC (the "**Barber Lake LOI** ").

**5.** **IDM Assets** 

● Real property:

○ a twenty (20) acre tract located in the T. & P. RR. Co. Survey of Section 16, Block 36 T3S, Abstract 1232, Glasscock County, Texas; being part of a called three hundred twenty-eight decimal eight (328.8) acre tract of land described in Deed to Mallard Development, LLC as recorded in Volume 346, Page 115 of the Official Public Records of Glasscock County, Texas, as further identified in that certain Surface Site Lease attached hereto as Exhibit A; and

○ A ten (10) acre tract located in the C. & M. RR. Co. Survey, Section 2, Block G, Abstract 802, Reagan County, Texas; being part of a called four hundred decimal two zero (400.20) acre tract of land described in Deed to Ricky Halfmann and Rebecca Halfmann as recorded in Volume 167, Page 381 of the Official Public Records of Reagan County Texas, as further identified in that certain Data Center Lease and Easement Agreement attached hereto as Exhibit A.

● Gross Bitcoin held.

● All Prepaid expenses, including with (a) Frontier Mining; and (b) Mothership Energy II.

● All Prepaid Hosting Services, including agreements with (a) EZ Blockchain Services, LLC; (b) Global X Digital, LLC; and (c) USMIO Alpha LLC.

● All assets regarding construction in progress, including (a) all deposits and letters of intent with Priority Power Management, LLC ("PPM"); (b) airflow containers; (c) mining containers; (d) transformers and (e) prepayments, deposits and assets not yet delivered or in service.

● All rights to personal property, equipment and other assets at owned, leased and hosted sites, including (a) miners, (b) machinery & facility equipment, including (i) airflow containers, (ii) mining containers, (iii) ancillary containers, (iv) electric panels, (v) buildings, (vi) graybar cables, (vii) substations, (viii) transformers and (ix) acquired intellectual property, (c) buildings and structures affiliated with sites and (d) miscellaneous spare parts affiliated with owned, leased and hosted sites.

● All long-term Deposits, including with Luna Squares LLC.

● All other Receivables, including with (a) Bitmain outstanding credits; (b) PPM LR credits; (c) mining revenue (January 31, 2024 receivable); and (d) energy — tariff rate correction receivable.

● All other assets, including (a) outstanding insurance claims and related recoveries received subsequent to January 31, 2024; (b) warranties; and (c) outstanding legal claims and ultimate settlements and recoveries.

● All intellectual property affiliated with mining sites.

● All Vendor and Miscellaneous Contracts, excluding the Barber Lake LOI

○ See spreadsheet attached as <u>Schedule A-1</u>, excluding rows 150 through 153.

● All equity of Cedarvale Meter Holding Company, LLC

## Exhibit 3.1

**Exhibit 3.1**

**IONIC DIGITAL INC.**

**AMENDED & RESTATED CERTIFICATE OF INCORPORATION**

Ionic Digital Inc., a Delaware corporation, hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name of this corporation is "Ionic Digital Inc." The date of the filing of its original Certificate of Incorporation with the Secretary of State of the State of Delaware was January 5, 2024 under the name Arbelco Inc. The corporation filed a Certificate of Amendment of Certificate of Incorporation with the Secretary of State of the State of Delaware on January 12, 2024 to change its name to Ionic Digital Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Amended & Restated Certificate of Incorporation of this corporation attached hereto as Exhibit A, which is incorporated herein by this reference, and which restates, integrates and amends the provisions of the Certificate of Incorporation of this corporation, has been duly adopted by this corporation's Board of Directors and by the stockholders in accordance with Sections 242 and 245 of the General Corporation Law of the State of Delaware, with the approval of this corporation's stockholders having been given by written consent without a meeting in accordance with Section 228 of the General Corporation Law of the State of Delaware.

IN WITNESS WHEREOF, this corporation has caused this Amended & Restated Certificate of Incorporation to be signed by its duly authorized officer and the foregoing facts stated herein are true and correct.

---

| | | | |
|:---|:---|:---|:---|
| Dated: January 31, 2024 | **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
|  | By: | /s/ Matt Prusak | /s/ Matt Prusak |
|  |  | Name: | Matt Prusak |
|  |  | Title: | Authorized Officer |

---

**<u>EXHIBIT A</u>**

**IONIC DIGITAL INC.**

**AMENDED & RESTATED CERTIFICATE OF INCORPORATION**

**ARTICLE I: NAME**

The name of the corporation is Ionic Digital Inc. (the "***Corporation***").

**ARTICLE II: AGENT FOR SERVICE OF PROCESS**

The address of the registered office of this Corporation in the State of Delaware is 251 Little Falls Drive, in the City of Wilmington, County of New Castle, Delaware 19808. The name of its registered agent at such address is Corporation Service Company.

**ARTICLE III: PURPOSE**

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the "***General Corporation Law***").

**ARTICLE IV: AUTHORIZED STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Total Authorized</u>**. The total number of shares of all classes of stock that the Corporation has authority to issue is 1,015,000,001 shares, consisting of 1,000,000,000 shares of Class A Common Stock,

$0.00001 par value per share (the "***Class A Common Stock***"), 1 share of Class B Common Stock, $1.00 par value per share (the "***Class B Common Stock***" and, with the Class A Common Stock, the "***Common Stock***"), and 15,000,000 shares of Preferred Stock, $0.00001 par value per share ("***Preferred Stock***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. <u>Des</u>ig<u>nation of Additional Series</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors of the Corporation (the "***Board***") is hereby expressly authorized, subject to any limitations prescribed by the law of the State of Delaware and this Amended and Restated Certificate of Incorporation (as the same may be amended and/or restated from time to time, including by a Certificate of Designation, this "***Certificate of Incorporation***"), to provide for the issuance of the shares of Preferred Stock in one or more series, and, by filing a Certificate of Designation pursuant to the applicable law of the State of Delaware ("***Certificate of Designation***"), to establish from time to time the number of shares to be included in each such series, to fix the designation, vesting, powers (including voting powers, full or limited, or no voting powers), preferences and relative, participating, optional or other special rights, if any, of the shares of each such series and any qualifications, limitations or restrictions thereof, and, except where otherwise provided in the applicable Certificate of Designation, to thereafter increase (but not above the total number of authorized shares of the Preferred Stock) or decrease (but not below the number of shares of such series then outstanding) the number of shares of any such series. The number of authorized shares of Preferred Stock may also be increased or decreased (but not below the number of shares thereof then outstanding) by such affirmative vote as may be required at that time by the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise expressly provided in this Certificate of Incorporation and in any Certificate of Designation designating any series of Preferred Stock pursuant to the foregoing provisions of this <u>Article IV</u>, any new series of Preferred Stock may be designated, fixed and determined as provided herein by the Board without approval of the holders of Common Stock or the holders of Preferred Stock, or any series thereof, and any such new series may have powers, preferences and rights, including, without limitation, voting powers (which may be full or limited or no voting powers), dividend rights, liquidation rights, redemption rights and conversion rights, senior to, junior to or pari passu with the rights of the Common Stock, any series of Preferred Stock or any future class or series of capital stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise required by law and subject to the rights of the sole holder of the Class B Common Stock (the "***Class B Holder***") set forth in <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation, each outstanding share of Class A Common Stock shall entitle the holder thereof to one vote on each matter properly submitted to the stockholders of the Corporation for their vote. Holders of Common Stock shall not be entitled to vote on any amendment to this Certificate of Incorporation (including the adoption or amendment of any Certificate of Designation relating to any series of Preferred Stock) that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together as a class with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation (including any Certificate of Designation relating to any series of Preferred Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. <u>R</u>ig<u>hts of Class A Common Stock and Class B Common Stock</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Status of Class A and Class B Common Stock General</u>ly*. Subject to the preferential or other rights of any holders of Preferred Stock then outstanding, the holders of shares of Class A Common Stock shall be entitled to receive ratably in proportion to the number of shares of Class A Common Stock held by them such dividends and distributions (payable in cash, stock or otherwise), if any, as may be declared thereon by the Board at any time and from time to time out of any funds of the Corporation legally available therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Voting Generally</u>*. Except as otherwise expressly provided by this Certificate of Incorporation (including <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation) and in any Certificate of Designation designating any series of Preferred Stock or as required by applicable law, the holders of shares of Common Stock shall (i) be entitled to notice of any stockholders' meeting in accordance with the Amended & Restated Bylaws of the Corporation (as the same may be amended and/or restated from time to time, the "***Bylaws***") and (ii) have one vote for each share of Common Stock which is outstanding in his, her, its or their name on the books of the Corporation on all matters on which stockholders are entitled to vote generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>No Cumulative Voting</u>*. The holders of the Common Stock shall not have cumulative voting rights (as defined in Section 214 of the General Corporation Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>No Class B Common Stock Dividend or Distribution R</u>ig<u>hts</u>*. Dividends and other distributions shall not be declared or paid on the Class B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Liquidation, Dissolution or Winding Up</u>*. Subject to the preferential or other rights of any holders of Preferred Stock then outstanding or any other outstanding class or series of stock of the Corporation having a preference over or the right to participate with the Common Stock as to distributions, in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation, the holders of all outstanding shares of Class A Common Stock shall be entitled to receive the remaining assets of the Corporation available for distribution ratably in proportion to the number of shares held by each such stockholder, and the Class B Holder as such, shall not be entitled to receive any assets of the Corporation in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Class B Common Stock Ownership</u>*. The share of Class B Common Stock shall be issued only to, and shall be held only by, U.S. Data Management Group LLC, a Delaware limited liability company and subsidiary of Hut 8 Corp. ("***Hut 8***"), and Affiliates (as such term is defined in the Management Services Agreement dated as of January 31, 2024, by and among the Corporation, Hut 8, as such agreement may be amended, supplemented, restated or otherwise modified from time to time (the "***Management Services Agreement***")) of Hut 8 (including all successors of Hut 8 or such Affiliates by way of merger or consolidation) (the "***Permitted Class B Owners***"). Any purported sale, transfer, pledge or other disposition of the share of Class B Common Stock to any person other than a Permitted Class B Owner shall be null and void ab initio and of no force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>No Preemptive R</u>ig<u>hts</u>*. Subject to the preferential or other rights of any holders of Preferred Stock then outstanding, no stockholder of the Corporation shall have preemptive rights to acquire additional, unissued or treasury shares of the Corporation or securities of the Corporation convertible into or carrying a right to subscribe to or acquire shares of the Corporation, whether such preemptive rights are purported to be granted by a provision in this Certificate of Incorporation, the Bylaws or by contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Class B Common Stock Consent R</u>ig<u>hts</u>*. To the fullest extent permitted by law, without the consent of the Class B Holder, and subject to any other applicable stockholder approval requirements required by law, and to the preferential or other rights of any holders of Preferred Stock then outstanding, the Corporation shall not take, and shall cause its subsidiaries not to take or consummate, any of the following actions or transactions (any such action or transaction without such prior written consent being null and void ab initio and of no force or effect): amend, alter, modify, or repeal this Certificate of Incorporation, or the Bylaws, including the amendment of this Certificate of Incorporation by the adoption or amendment of any Certificate of Designation or similar document, or amend the organizational documents of any subsidiary of the Corporation, in any such case in any manner that adversely affects the rights or powers of the Class B Common Stock or the Class B Directors (as defined below), including (i) with respect to the power and authority of the Class B Holder to elect two directors; (ii) increase the authorized number of directors constituting the Whole Board (as defined below) to more than eight; or (iii) increase or decrease the number of authorized shares of Class B Common Stock, or authorize the issuance of or issue any shares of Class B Common Stock. The term "***Whole Board***" shall mean the total number of authorized directors at the time such action is taken, whether or not there exist any vacancies in previously authorized directorships.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. <u>Class B Common Stock Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Immediately upon the termination of the Management Services Agreement in accordance with its terms, the Corporation shall immediately effect, out of funds legally available therefor, a redemption of the outstanding share of Class B Common Stock (a "***Class B Redemption***") for a price per share equal to $1.00 per share of Class B Common Stock (the "***Class B Redemption Price***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To effect a Class B Redemption, the Corporation shall send written notice (the "***Class B Redemption Notice***") to the Class B Holder. Each Class B Redemption Notice shall state: (i) that the outstanding share of Class B Common Stock shall be redeemed; (ii) the date of the closing of the Class B Redemption, which date shall not be sooner than 10 days following the date of the Class B Redemption Notice (the "***Class B Redemption Date***"), and the Class B Redemption Price; and (iii) the manner of the Class B Redemption, including the manner and place designated for surrender by the holder to the Corporation or the Corporation's transfer agent, as applicable, of his, her, its or their certificate, if any, representing the share of Class B Common Stock to be redeemed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If on the Class B Redemption Date, the Class B Redemption Price is paid (or tendered for payment) for all of the outstanding share of Class B Common Stock to be redeemed on such Class B Redemption Date, then on such date all rights of the Class B Holder with respect to the share of Class B Common Stock so redeemed and paid or tendered shall cease, and such share of Class B Common Stock shall no longer be deemed issued and outstanding. The certificate, if any, representing the share of Class B Common Stock shall be legended to reflect the restrictions on transfer and automatic redemption provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Non-Voting Equity</u>**. The Corporation shall not issue nonvoting equity securities to the extent prohibited by Section 1123(c)(6) of title 11 of the United States Code (as amended, the "***Bankruptcy Code***"); *<u>provided</u>*, *<u>however</u>*, that the foregoing restriction shall (a) have no further force and effect beyond that required under Section 1123(a)(6) of the Bankruptcy Code, (b) only have such force and effect for so long as Section 1123(a)(6) of the Bankruptcy Code is in effect and applicable to the Corporation, and (c) in all events may be amended or eliminated in accordance with applicable law as from time to time may be in effect.

**ARTICLE V: AMENDMENT OF BYLAWS**

Subject to the rights of the Class B Holder set forth in <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation, the Board shall have the power to adopt, amend or repeal the Bylaws without the assent or vote of the stockholders in any manner not inconsistent with the laws of the State of Delaware or this Certificate of Incorporation. Subject to the rights of the Class B Holder set forth in <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation, any adoption, amendment or repeal of the Bylaws by the Board shall require the approval of a majority of the directors then in office. Subject to the rights of the Class B Holder set forth in <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation and to the rights of any class or series of stock of the Corporation, the stockholders shall also have the power to adopt, amend or repeal the Bylaws by the affirmative vote of the holders of a majority of the voting power of all then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

**ARTICLE VI: MATTERS RELATING TO THE BOARD OF DIRECTORS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Director Powers</u>**. Except as otherwise provided by the General Corporation Law, the Bylaws or this Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. <u>Number and Election of Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 2(b</u>) of this Article VI, the total number of directors constituting the Whole Board shall be fixed from time to time exclusively by resolution adopted by a majority of the directors then in office Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For so long as the share of Class B Common Stock remains outstanding, unless prior written consent of the Class B Holder is obtained to increase the authorized number of directors constituting the Whole Board to more than eight (in accordance with <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation), the Whole Board shall consist of not more than eight directors, two of which shall be nominated and elected exclusively by the Class B Holder (the "***Class B Directors***"), voting as a separate class. One of the two Class B Directors shall initially be Asher Genoot. The holders of the Class A Common Stock, voting as a separate class, shall have the exclusive right to elect the remaining directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to <u>Section 2(b</u>) of this <u>Article VI</u>, the vote required for the election of a director by the stockholders at a meeting of stockholders shall be the affirmative vote of a plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors (for the avoidance of doubt, holders of shares of Class A Common Stock are not entitled to vote on the election of the Class B Directors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Classified Board</u>**. Subject to any special rights of the holders of one or more series of Preferred Stock to elect additional directors, the directors shall be divided, with respect to the time for which they hold office, into three classes designated as Class I, Class II and Class III, respectively (the "***Classified Board***"). The Board is authorized to assign members of the Board already in office to Class I, Class II or Class III, which assignments shall become effective at the same time that the Classified Board becomes effective. Directors shall be assigned to each class in accordance with a resolution or resolutions adopted by the Board. Class B Directors shall not be re-assigned to a class other than the class to which a Class B Director was initially assigned, unless any re-assignment is consented to by the Class B Holder and the Board. The number of directors in each class shall be divided as nearly equal as is practicable. The initial term of office of the Class I directors shall expire at the Corporation's first annual meeting of stockholders after the date of the filing of this Certificate of Incorporation with the Secretary of State of the State of Delaware (the "***Initial Annual Meeting***"), which shall be held no earlier than January 31, 2024 and no later than October 1, 2025; the initial term of office of the Class II directors shall expire at the Corporation's first annual meeting of stockholders following the Initial Annual Meeting; and the initial term of office of the Class III directors shall expire at the Corporation's second annual meeting of stockholders following the Initial Annual Meeting. At each annual meeting of stockholders following the date of the filing of this Certificate of Incorporation with the Secretary of State of the State of Delaware, directors elected to succeed those directors of the class whose terms then expire shall be elected for a term of office expiring at the third succeeding annual meeting of stockholders after their election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Term</u>**. Each director shall hold office until the annual meeting at which such director's term expires and until such director's successor is duly elected and qualified, or until such director's earlier death, resignation, disqualification or removal; *<u>provided</u>, <u>however</u>,* that the term of any Class B Director shall terminate immediately upon the effective date of a Class B Redemption. Any director may resign at any time by delivering a resignation in writing or by electronic transmission, signed by such director, to the Chair of the Board or the Secretary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Removal</u>.** Subject to any special rights of the holders of one or more outstanding series of Preferred Stock, any director shall be removed from the Board at any time only (i) with cause and (ii) by the affirmative vote of the holders of a majority of the voting power of the then outstanding shares of capital stock of the Corporation entitled to vote thereon, voting together as a single class, *<u>provided, however</u>*, that a Class B Director shall only be removed from office, with or without cause, by the Class B Holder. No increase or decrease in the number of directors constituting the Board shall shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Board Vacancies and New</u>ly <u>Created Directorships</u>**. Subject to any special rights of the holders of one or more outstanding series of Preferred Stock and the rights of Class B Holder set forth in <u>Article IV</u>, <u>Section 3(h</u>) of this Certificate of Incorporation, any vacancy occurring in the Board for any cause and any newly created directorship resulting from any increase in the authorized number of directors shall, unless

(a) the Board determines by resolution that any such vacancies or newly created directorships shall be filled by the stockholders or (b) as otherwise provided by law, be filled only by the affirmative vote of a majority of the directors (other than the Class B Directors) then in office, even if less than a quorum, or by a sole remaining director, and shall not be filled by the stockholders, *<u>provided, however</u>*, that, unless no share of Class B Common Stock is then outstanding, any vacancy in the Board of a director elected by the Class B Holder or otherwise designated as a Class B Director (a "***Class B Vacancy***"), whether such vacancy results from death, resignation, retirement, disqualification, removal from office, or other cause, shall be filled only by the Class B Holder. Any director elected to fill a vacancy or newly created directorship in accordance with the preceding sentence shall hold office for a term expiring at the next election of the class for which such director shall have been chosen and until such director's successor shall have been duly elected and qualified, or until such director's earlier death, resignation, disqualification or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Vote by Ballot</u>**. The election of directors need not be by written ballot unless the Bylaws shall so provide.

**ARTICLE VII: LIMITATION OF LIABILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Limitation of Liability</u>**. To the fullest extent permitted by law, neither a director of the Corporation nor an officer of the Corporation shall be personally liable to the Corporation or to its stockholders for monetary damages for breach of fiduciary duty as a director or officer, as applicable. No amendment to, modification of or repeal of this Section 1 of Article VII shall apply to or have any effect on the liability or alleged liability of any director or officer of the Corporation for or with respect to any acts or omissions of such director or officer occurring prior to such amendment, modification or repeal. Without limiting the effect of the preceding sentence, if the General Corporation Law is hereafter amended to authorize the further elimination or limitation of the liability of a director or officer, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law, as so amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Indemnification</u>**. To the fullest extent permitted by applicable law, as the same exists or may hereafter be amended, the Corporation shall indemnify and hold harmless, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, arbitration, alternative dispute resolution mechanism, investigation, inquiry, judicial, administrative or legislative hearing, or any other threatened, pending or completed proceeding, whether brought by or in the right of the Corporation (including whether to procure a judgment in its favor) or otherwise, whether civil, criminal, administrative, legislative, investigative or other nature and including any and all appeals (collectively, each a "***Proceeding***") by reason of the fact that such person is or was a director or officer of the Corporation, or while a director of the Corporation or officer of the Corporation is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise (an "***Indemnitee***"), against all liability and loss suffered and expenses, including, without limitation, attorneys' fees, judgments, fines, excise taxes under the Employee Retirement Income Security Act of 1974, as amended, damages, claims, penalties and amounts paid in settlement actually and reasonably incurred by such Indemnitee in connection with such Proceeding. To the fullest extent permitted by applicable law, expenses (including attorneys') fees incurred by an Indemnitee in defending any Proceeding shall be paid by the Corporation in advance of the final disposition of such Proceeding upon receipt of a written request therefor and an undertaking, by or on behalf of the Indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision of a court of competent jurisdiction from which there is no further right to appeal that the Indemnitee is not entitled to be indemnified under this <u>Article VII, Section 2</u> or otherwise. The rights to indemnification and advancement of expenses conferred by this <u>Article VII, Section 2</u> shall be contractual rights and such rights shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent and shall inure to the benefit of his, her or their heirs, executors and administrators. Notwithstanding the foregoing provisions of this <u>Article VII Section 2</u>, except for Proceedings to enforce rights to indemnification and advancement of expenses, the Corporation shall indemnify and advance expenses to an Indemnitee in connection with a Proceeding (or part thereof) initiated by such Indemnitee only if such Proceeding (or part thereof) was authorized by the Board. The indemnification and advancement of expenses provided by, or granted pursuant to, this <u>Article VII, Section 2</u> shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under this Certificate of Incorporation as it may be further amended from time to time, the Bylaws or any statute, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person's official capacity and as to action in another capacity while holding such office. The Corporation is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advancement of expenses, to the fullest extent not prohibited by the General Corporation Law or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>No Limitation</u>**. This <u>Article VII</u> shall not limit the right of the Corporation, to the extent and in the manner authorized or permitted by law, to indemnify and to advance expenses to persons other than Indemnitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Vested R</u>ig<u>hts</u>**. Any repeal or amendment of this <u>Article VII</u> by the stockholders of the Corporation or by changes in law, or the adoption of any other provision of this Certificate of Incorporation inconsistent with this <u>Article VII</u>, shall, unless otherwise required by law, be prospective only (except to the extent such amendment or change in law permits the Corporation to provide broader indemnification rights on a retroactive basis than permitted prior thereto), and shall not in any way diminish or adversely affect any right or protection existing at the time of such repeal or amendment or adoption of such inconsistent provision in respect of any Proceeding (regardless of when such Proceeding is first threatened, commenced or completed) arising out of, or related to, any act or omission occurring prior to such repeal or amendment or adoption of such inconsistent provision.

**ARTICLE VIII: MATTERS RELATING TO STOCKHOLDERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>No Action by Written Consent of Stockholders</u>**. Subject to the rights of any series of Preferred Stock then outstanding, no action shall be taken by the stockholders of the Corporation except at a duly called annual or special meeting of stockholders and no action shall be taken by the stockholders of the Corporation by written consent in lieu of a meeting; *<u>provided</u>*, *<u>however</u>*, that prior to a Class B Redemption, the Class B Holder may act by written consent in lieu of a meeting, solely with respect to matters for which the Class B Holder is entitled to vote as a separate class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Special Meeting of Stockholders</u>**. Special meetings of the stockholders of the Corporation shall be called only by (a) the Chairperson of the Board, (b) the Board acting pursuant to a resolution adopted by a majority of the directors then in office, or (c) the Board upon the holders of at least 25% of the voting power of all then-outstanding shares of voting stock entitled to vote on any matter to be brought before the proposed special meeting delivering a written request (which request shall state the purpose(s) of the meeting to be called) to the Secretary of the Corporation in accordance with the procedures and other requirements set forth in the Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Advance Notice of Stockholder Nominations and Business Transacted at Special Meetin</u>gs**. Advance notice of stockholder nominations for the election of directors of the Corporation and of other business to be brought by stockholders before any meeting of stockholders of the Corporation shall be given in the manner provided in the Bylaws. Business transacted at special meetings of stockholders shall be limited to the purpose or purposes stated in the notice of meeting.

**ARTICLE IX: CHOICE OF FORUM**

Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for: (a) any derivative action, suit or proceeding brought on behalf of the Corporation; (b) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed or allegedly owed by, or other wrongdoing by, any director, officer, stockholder, employee or agent of the Corporation to the Corporation or the Corporation's stockholders; (c) any action, suit or proceeding asserting a claim against the Corporation or any director, officer, stockholder, employee or agent of the Corporation arising pursuant to, or seeking to enforce any right, obligation or remedy under, any provision of the General Corporation Law, this Certificate of Incorporation or the Bylaws or as to which the General Corporation Law confers jurisdiction on the Court of Chancery of the State of Delaware; (d) any action, suit or proceeding to interpret, apply, enforce or determine the validity of this Certificate of Incorporation or the Bylaws; (e) any action asserting a claim against the Corporation or any director, officer, stockholder, employee or agent of the Corporation governed by the internal affairs doctrine; or (f) any other action, suit or proceeding asserting an "internal corporate claim" as that term is defined in Section 115 of the General Corporation Law. Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by the General Corporation Law, this Certificate of Incorporation or the Bylaws, be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. Any person or entity owning, purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemed to have notice of and to have consented to the provisions of this Article IX.

**ARTICLE X: BUSINESS COMBINATION LAW**

The Corporation shall not be governed by, or subject to, Section 203 of the General Corporation Law.

**ARTICLE XI: CERTAIN CORPORATE OPPORTUNITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>No Agency</u>**. Nothing contained in this Certificate of Incorporation or in any other agreement delivered pursuant hereto shall be construed to create any agency relationship among the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Corporate Opportunities General</u>ly**. (x) Directors who are not employees or officers of the Corporation or its subsidiaries and (y) stockholders of the Corporation (other than stockholders of the Corporation who are employees of the Corporation or its subsidiaries), solely by virtue of each such stockholder's status as a stockholder of the Corporation (such members of the Board and stockholders, the "***Identified Persons***" and each, individually, an "***Identified Person***"), shall, to the fullest extent permitted by applicable law, have no duty to refrain from, directly or indirectly, (a) engaging in the same or similar activities or lines of business in which the Corporation or any of its affiliates, directly or indirectly, now engages or may engage or (b) otherwise competing with the Corporation or any of its affiliates, and, to the fullest extent permitted by applicable law, no Identified Person shall be liable to the Corporation or its stockholders or to any affiliate of the Corporation for breach of any fiduciary duty solely by reason of the fact that such Identified Person engages in any such activities. To the fullest extent permitted by applicable law, the Corporation, pursuant to Section 122(17) of the General Corporation Law, hereby renounces any interest or expectancy in, or right to be offered an opportunity to participate in, any potential transaction or business opportunity for an Identified Person and the Corporation or any of its affiliates, except as provided in <u>Article XI, Section 3</u> of this Certificate of Incorporation. Subject to <u>Article XI, Section 3</u> of this Certificate of Incorporation, in the event that any Identified Person acquires knowledge of a potential transaction or other business opportunity that may be a corporate opportunity for itself, herself or himself and the Corporation or any of its affiliates, such Identified Person shall, to the fullest extent permitted by applicable law, have no duty to communicate or offer such transaction or other business opportunity to the Corporation or any of its affiliates and, to the fullest extent permitted by applicable law, shall not be liable to the Corporation or its stockholders or to any affiliate of the Corporation for breach of any fiduciary duty as a stockholder, director or officer of the Corporation solely by reason of the fact that such Identified Person pursues or acquires such corporate opportunity for itself, herself or himself, or offers or directs such corporate opportunity to another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. <u>Certain Limitations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding <u>Article XI, Section 2</u> of this Certificate of Incorporation, the Corporation does not renounce its interest in any corporate opportunity offered to any Identified Person if such opportunity is (i) expressly offered to such person solely in his, her or their capacity as a director, officer, consultant or employee of the Corporation or (ii) identified by an Identified Person solely through the disclosure of information by or on behalf of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to and notwithstanding the provisions of this <u>Article XI</u>, a corporate opportunity shall not be deemed to be a potential corporate opportunity for the Corporation if it is a business opportunity that (i) the Corporation is neither financially or legally able, nor contractually permitted to undertake, (ii) from its nature, would not be reasonable for the Corporation to pursue or (iii) is one in which the Corporation has no interest or reasonable expectancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Related Companies</u>**. Subject to any contractual obligations between an Identified Person and the Corporation or its subsidiaries, the Identified Persons may now own, may continue to own, and from time to time may acquire and own, to the fullest extent permitted by applicable law, investments in one or more other entities (such entities collectively, "***Related Companies***") that are direct competitors of, or that otherwise may have interests that do or could conflict with those of, the Corporation, any of the Corporation's stockholders or any of their respective affiliates, and (a) the enjoyment, exercise and enforcement of the rights, interests, privileges, powers and benefits granted or available to the Identified Persons under this Certificate of Incorporation shall not be in any manner reduced, diminished, affected or impaired, and the obligations of the Identified Persons under this Certificate of Incorporation shall not be in any manner augmented or increased, by reason of any act, circumstance, occurrence or event arising from or in any respect relating to (i) the ownership by an Identified Person of any interest in any Related Company, (ii) the affiliation of any Related Company with an Identified Person or (iii) any action taken or omitted by an Identified Person in respect of any Related Company, (b) no Identified Person shall, solely by reason of such ownership, affiliation or action, become subject to any fiduciary duty to the Corporation, any of the Corporation's stockholders or any of their respective affiliates, (c) none of the duties imposed on an Identified Person by law do or shall limit or impair the right of any Identified Person lawfully to compete with the Corporation, any of the Corporation's stockholders or any of their respective affiliates and (d) the Identified Persons are not and shall not be obligated to disclose to the Corporation, any of the Corporation's stockholders or any of their respective affiliates any information related to their respective businesses or opportunities, including acquisition opportunities, or to refrain from or in any respect to be restricted in competing against the Corporation, any of the Corporation's stockholders or any of their respective affiliates in any such business or as to any such opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Other Protections</u>**. This <u>Article XI</u> shall not limit any protections or defenses available to, or indemnification or advancement rights of, any director or officer of the Corporation under this Certificate of Incorporation, the Bylaws or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Amendments</u>**. Neither the alteration, amendment, addition to or repeal of this <u>Article XI</u>, nor the adoption of any provision of this Certificate of Incorporation (including any Certificate of Designation) inconsistent with this <u>Article XI</u>, shall eliminate or reduce the effect of this <u>Article XI</u> in respect of any business opportunity first identified, or any other matter occurring, or any cause of action, suit or claim that, but for this <u>Article XI</u>, would accrue or arise, prior to such alteration, amendment, addition, repeal or adoption.

**ARTICLE XII: RESTRICTIONS ON THE TRANSFER OF SHARES**

Notwithstanding anything to the contrary, at any time prior to later of (A) the effectiveness of the Corporation's registration statement on Form 10 filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "***Exchange Act Registration***") or (B) the listing by the Corporation of the Corporation's Class A Common Stock on a registered securities exchange (the "***Listing***"), no outstanding shares of the Corporation's Class A Common Stock that have been or in the future are issued may be transferred, including but not limited to any sale, assignment, pledge, conveyance, hypothecation, grant of a security interest, gift or other transfer or disposition of such share or any legal, economic, or beneficial interest in such share, as well as by entering into any short position, any "put equivalent position" or any "call equivalent position" (as defined in Rule 16a-1(h) and Rule 16a-1(b) of the Securities Exchange Act of 1934, as amended, respectively) whether or not for value and whether voluntary or involuntary, (any such transfer, a "***Transfer***"), unless the Board (or a duly authorized committee thereof), in its sole and absolute discretion and prior to the occurrence of such Transfer, approves in writing of such Transfer (by resolution, unanimous written consent or otherwise). Any such Transfer, if permitted, will be subject to such terms and conditions as the Board may prescribe, in its sole discretion. Any Transfer effected without the prior written approval of the Board pursuant to this Article XII prior to the later of (A) the Exchange Act Registration or (B) the Listing shall be considered null and void ab initio and of no force and effect.

Notwithstanding the foregoing, any of the following Transfers of shares of the Corporation's Class A Common Stock may occur prior to the later of the Exchange Act Registration and the Listing without prior written approval by the Board pursuant to this Certificate of Incorporation: (1) any Transfer required by law or (2) any Transfer to an executor or guardian of the stockholder upon the death or disability of such stockholder, (all such Transfers referred to in clauses (1) and (2), a "***Permitted Transfer***"); provided that the transfer restrictions described in this Article XII will continue to apply to any of the Corporation's Class A Common Stock transferred pursuant to any such Permitted Transfer. In the event there is any such Permitted Transfer, the stockholder (or custodian or guardian of or anyone with power of attorney over such stockholder) effecting the Permitted Transfer must, to the extent permitted by applicable law, provide written advance notice of the Permitted Transfer (including, for the avoidance of doubt, the identities of the recipients of the shares pursuant to the Permitted Transfer and, if applicable, the reason such Permitted Transfer is required by law) to the Secretary of the Board prior to the occurrence of the Permitted Transfer. In connection with the Board's consideration for approval of any Transfer or in the case of any notification to the Board of any Permitted Transfer, the Board may reasonably request additional information and/or documentation from the stockholder (or custodian or guardian of or anyone with power of attorney over such stockholder) and/or the transferee.

**ARTICLE XIII: AMENDMENT OF CERTIFICATE OF INCORPORATION**

If any provision of this Certificate of Incorporation shall be held to be invalid, illegal, or unenforceable, then such provision shall nonetheless be enforced to the maximum extent possible consistent with such holding and the remaining provisions of this Certificate of Incorporation (including, without limitation, all portions of any section of this Certificate of Incorporation containing any such provision held to be invalid, illegal, or unenforceable, which is not invalid, illegal, or unenforceable) shall remain in full force and effect. The Corporation reserves the right to amend or repeal any provision contained in this Certificate of Incorporation in the manner prescribed by the laws of the State of Delaware and all rights conferred upon stockholders are granted subject to this reservation: *<u>provided</u>*, *<u>however</u>*, that, notwithstanding any other provision of this Certificate of Incorporation or any provision of law that might otherwise permit a lesser vote or no vote (but subject to the rights of the Class B Holder set forth in <u>Article IV, Section 3(h</u>) of this Certificate of Incorporation and the rights of any series of Preferred Stock set forth in any Certificate of Designation), but in addition to any vote of the holders of any class or series of the stock of the Corporation required by law or by this Certificate of Incorporation, the affirmative vote of the holders of a majority of the voting power of all then outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal such provisions of Certificate of Incorporation.

\*\*\*\*\*\*\*\*\*\*\*

## Exhibit 3.2

**Exhibit 3.2**

**THIRD AMENDED AND RESTATED<br> BYLAWS OF IONIC DIGITAL INC.**

(Effective as of February 13, 2025)

**ARTICLE I <br> <u>CORPORATE OFFICES</u>**

<u>Section 1.1 Registered Office</u>. The registered office of Ionic Digital Inc. (the "***Corporation***") shall be set forth in the Corporation's Certificate (as defined below). References in these amended and restated bylaws (these "***Bylaws***") to the certificate of incorporation, as the same shall be amended and/or restated from time to time (the "***Certificate***"), shall include the terms of any certificate of designations of any series of preferred stock of the Corporation ("***Preferred Stock***").

<u>Section 1.2 Other Offices</u>. The Corporation also may have offices at such other places, both within and without the State of Delaware, as the Board of Directors of the Corporation (the "***Board***") may from time to time determine or the business of the Corporation may require.

**ARTICLE II<br> <u>MEETINGS OF STOCKHOLDERS</u>**

<u>Section 2.1 Time and Place of Meetin</u>gs. Annual and special meetings of stockholders shall be held at any time and place, within or without the State of Delaware, or in whole or in part by means of remote communication, as shall be designated by the Board. In the absence of any such designation, stockholders' meetings shall be held at the Corporation's principal executive office.

<u>Section 2.2 Annual Meetin</u>g. At the annual meeting, directors shall be elected and any other business properly brought before the meeting may be transacted. The Board may cancel, postpone or reschedule any previously scheduled annual meeting at any time, before or after the notice for such meeting has been sent to the stockholders.

<u>Section 2.3</u> <u>Special Meeting</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;(i) A special meeting of the stockholders, other than those required by statute, may be called at any time only in the manner provided in the Certificate and these Bylaws. The Board may cancel, postpone or reschedule any previously scheduled special meeting at any time, before or after the notice for such meeting has been sent to 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;(ii) The notice of a special meeting shall include the purpose for which the meeting is called. Only such business shall be conducted at a special meeting of stockholders as shall have been set forth in the notice of such meeting. Nothing contained in this Section 2.3(ii) shall be construed as limiting, fixing or affecting the time when a meeting of stockholders called by action of the Board may be held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to Section 2.3(iv), the Board shall call a special meeting of stockholders upon the written request (the "***Meeting Request***") of the stockholders of record of at least 25%, in the aggregate, of the voting power of the outstanding shares of all classes of shares entitled to vote at such a meeting (the "***Required Percentage****")*, delivered to the secretary of the Corporation (the "***Secretary***"). The Board shall designate a date for such special meeting not more than 90 days after the date that the Secretary received the valid Meeting Request (the "***Request Delivery Date***"). In fixing a date and time for any special meeting requested by stockholders of record, the Board may consider such factors as it deems relevant, including without limitation, the nature of the matters to be considered, the facts and circumstances related to any request for a meeting, and any plan of the Board to call an annual meeting or special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) *Stockholder Request for Special Meeting*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Meeting Request shall be signed and dated by one or more stockholders of record
and each beneficial owner, if any, on whose behalf the Meeting Request is being made, or—in each case—such stockholder's
or beneficial owner's duly authorized agent (each, a "  ***Requesting Stockholder*** "), and shall set forth: (1)
a statement of the specific purpose of the meeting and the matters proposed to be acted on at the meeting, the reasons for conducting
such business at the meeting and any material interest of the Requesting Stockholder in such business; (2) the name and address of each
Requesting Stockholder as it appears on the Corporation's stock ledger (or, with respect to all shares to be included in the Required
Percentage that are owned beneficially but not of record by each such Requesting Stockholder, the name of each broker, bank or custodian
(or similar entity) of each such Requesting Stockholder with respect to such shares); (3) the number of shares of each class of voting
shares owned of record and beneficially by each such Requesting Stockholder; (4) a description of all arrangements or understandings between
any Requesting Stockholder and any other person regarding the meeting and the matters proposed to be acted on at the meeting; (5) the
text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business
includes a proposal to amend these Bylaws or the Certificate, the language of the proposed amendment) conforming in all material respects
with the requirements of Section 14(a) of the Securities Exchange Act of 1934 and the rules and regulations thereunder (as so amended
and inclusive of such rules and regulations, the "  ***Exchange Act*** "); and (6) all of the information regarding the
Requesting Stockholders that would be required by Section 2.4(iii)–(v) of these Bylaws if each Requesting Stockholder were intending
to make a nomination or to bring any other matter before a stockholder meeting (except that, for purposes of this paragraph, references
to the "Noticing Stockholder" and "Holders" shall instead refer to each "Requesting Stockholder");
(7) an agreement by the Requesting Stockholder to notify the Corporation promptly in the event of (x)
any disposition prior to the time of the special meeting of any shares held by a Requesting Stockholder as of the date on which the
Meeting Request was delivered to the Secretary and (y) any other change prior to the time of the special meeting in the shares owned
by any Requesting Stockholder; and (8) an acknowledgement that (x) the Requesting Stockholder is entitled to vote at such special
meeting, (y) any disposition prior to the date of the special meeting of any capital stock of the Corporation including any
Requesting Stockholder's shares as of the date on which the Meeting Request was delivered to the Secretary shall be deemed to
be a revocation of such Meeting Request with respect to such disposed shares and (z) that any decrease in the Requesting
Stockholders' aggregate share ownership to less than the Required Percentage shall be deemed to be an absolute revocation of
such Meeting Request. The requirement set forth in clause (6) of the immediately preceding sentence shall not apply to (x) any
stockholder of record, or beneficial owner, as applicable, who has provided a written request solely in response to a solicitation
made pursuant to, and in accordance with, Section 14(a) of the Exchange Act, by way of a solicitation statement filed on Schedule
14A or (y) any stockholder of record that is a broker, bank or custodian (or similar entity) and is acting solely as nominee on
behalf of a beneficial owner. A Requesting Stockholder may revoke its request for a special meeting at any time by written
revocation delivered to the Secretary, and if, following such revocation, there are un-revoked Meeting Requests from less than the
Required Percentage, the Board, in its discretion, may cancel the special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board shall have the authority to determine not to call a special
 meeting requested by stockholders if (a) the Board has called or calls an annual or special meeting of stockholders to be held not
 more than 90 days after the Request Delivery Date and the purpose of such stockholder meeting includes (among any other matters
 properly brought before the meeting) the purpose specified in the Meeting Request; (b) within 12 months prior to the Request
 Delivery Date, an annual or special meeting was held that considered the purpose specified in the Meeting Request or an identical or
 substantially similar item of business (as determined in good faith by the Board in its sole and absolute discretion), except for
 the election of one or more directors; (c) the Meeting Request relates to an item of business that is not a proper subject for
 stockholder action under applicable law; or (d) such request was made in violation of Regulation 14A under the Exchange Act, to the
 extent applicable, or other applicable law. The Board is authorized to determine in good faith the purpose of a stockholder meeting.
 If none of the Requesting Stockholders appears or sends a
qualified representative to present the business and/or nominations specified in the Meeting Request to be presented for consideration,
or any Requesting Stockholder or any nominee for director (as applicable) acted contrary to any representation, certification or agreement
required by this Section 2.3 (or otherwise failed to comply with this Section 2.3 (or any law, rule or regulation identified in this Section
2.3 or Section 2.4)) or provided false or misleading information to the Corporation, the Corporation need not present such business for
a vote at the special meeting (and any such nominee shall be disqualified from standing for election or re-election), notwithstanding
that proxies in respect of such business may have been received by the Corporation.

<u>Section 2.4</u> <u>Advance Notice Procedures for Director Nominations and Business Proposals</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;(i) *Annual Meetings of Stockholders*. At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, nominations of persons for election to the Board or other proposals of business to be transacted at an annual meeting of stockholders must be: (a) specified in the Corporation's notice of meeting (or any supplement thereto) given by or at the direction of the Board (or any duly authorized committee thereof) with respect to such meeting, (b) otherwise properly brought before the annual meeting by or at the direction of the Board (or any duly authorized committee thereof), or (c) otherwise properly brought before the annual meeting by a stockholder of the Corporation who (1) is a stockholder of record at the time of the giving of the notice required by this Section 2.4, on the record date for the determination of stockholders entitled to notice of and to vote at such annual meeting and at the time of such annual meeting, (2) is entitled to vote at such annual meeting and (3) has timely complied in proper written form with the procedures set forth in this Section 2.4. In addition, for business to be properly brought before an annual meeting by a stockholder, such business must be a proper matter for stockholder action pursuant to these Bylaws and applicable law. Except for proposals properly made in accordance with Rule 14a-8 under the Exchange Act, and included in the notice of meeting given by or at the direction of the Board, for the avoidance of doubt, clause (c) of this Section 2.4(i) shall be the exclusive means for a stockholder to bring business before an annual meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) To be in proper written form, the Noticing Stockholder's notice must also set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as to each person whom the Noticing Stockholder proposes to nominate for election
or re-election as a director (1) the name, age, business address and residence address of the person, (2) a complete biography and statement
of such person's qualifications in compliance with the provisions of Item 401 (or any successor provision) of Regulation S-K, as
amended ("  ***Regulation S-K*** "), under the Securities Act of 1933, as amended (the "  ***Securities Act*** "),
including the principal occupation or employment of the person (at present and for the past five years), (3) the Specified
Information (as defined below) for the person and any immediate family member (as defined below) of the person, or any affiliate or
associate (each, as defined below) of the person, (4) a complete and accurate description of all agreements, arrangements and
understandings between such person, on the one hand, and each Holder and any Stockholder Associated Person (each, as defined below),
on the one hand, during the prior three years, including, without limitation, a complete and accurate description of all direct and
indirect compensation and other material monetary or non-monetary agreements, arrangements and understandings (whether written or
oral) during the past three years between such person and such parties (including, without limitation all biographical, related
party transaction and other information that would be required to be disclosed pursuant to Item 404 (or any successor provision)
promulgated under Regulation S-K of the Exchange Act if the Holder or any Stockholder Associated Person were the
"registrant" for purposes of such rule and such person was a director or executive officer of such registrant), (5) any
other information relating to the person that would be required to be disclosed in a proxy statement or any other filings required
to be made in connection with solicitations of proxies for the election of directors in a contested election or that is otherwise
required pursuant to and in accordance with Section 14 of the Exchange Act (including such person's written consent to being
named in proxy statements as a proposed nominee of the Noticing Stockholder and to serving as a director if elected), and (6) a
completed and signed questionnaire, representation and agreement and any and all other information required by Section 2.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as to any other business that the Noticing Stockholder proposes to bring before
the meeting (1) a brief description of the business desired to be brought before the meeting and the reasons for conducting such business
at the meeting, (2) the text of the proposal or business (including the text of any resolutions proposed for consideration and, in the
event that such business includes a proposal to amend the Certificate, and/or these Bylaws, the text of the proposed amendment(s)), (3)
a description of all agreements, arrangements and understandings between each Holder and any Stockholder Associated Person and any other
person or persons (including such persons' names) in connection with the proposal of such business by the Noticing Stockholder and
any material interest of each such Holder or any Stockholder Associated Person in such business, and (4) a complete and accurate description
of any material interest of each such Holder or any Stockholder Associated Person in or with respect to such business; 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;(c) as to the Noticing Stockholder and any beneficial owner on whose behalf the nomination
is being made or the other business is being proposed (collectively with the Noticing Stockholder, the "  ***Holders*** "
and, each, a "  ***Holder*** "): (1) the name and address of each Holder, as the name and address appear on the Corporation's
books, and the name and address of any Stockholder Associated Person, (2) (aa) the class or series and number of shares of capital stock
or other securities of the Corporation which are, directly or indirectly, held of record or owned beneficially by each Holder or any Stockholder
Associated Person (provided that, for the purposes of this Section 2.4, any such person shall in all events be deemed to beneficially
own any class or series of shares of capital stock or other securities of the Corporation as to which such person has a right to acquire
beneficial ownership at any time in the future (whether such right is exercisable immediately or only after the passage of time or the
fulfillment of a condition or both)), (bb) any short position,
profits interest, option, warrant, convertible security, stock appreciation right or similar right with an exercise or conversion privilege
or a settlement payment or mechanism at a price related to any class or series of shares of capital stock or other securities of the Corporation
or with a value derived in whole or in part from the value of any class or series of shares of capital stock or other securities of the
Corporation, or any derivative or synthetic arrangement having the characteristics of a long position in any class or series of shares
of capital stock or other securities of the Corporation, or any contract, derivative, swap or other transaction or series of transactions
designed to produce economic benefits and risks that correspond substantially to the ownership of any class or series of shares of capital
stock or other securities of the Corporation, including due to the fact that the value of such contract, derivative, swap or other transaction
or series of transactions is determined by reference to the price, value or volatility of any class or series of shares of capital stock
or other securities of the Corporation, whether or not such instrument, contract or right shall be subject to settlement in the underlying
class or series of shares of capital stock or other securities of the Corporation through the delivery of cash or other property, or otherwise,
and without regard to whether the Holder or any Stockholder Associated Person may have entered into transactions that hedge or mitigate
the economic effect of such instrument, contract or right, or any other direct or indirect opportunity to profit or share in any profit
derived from any increase or decrease in the price or value of any class or series of shares of capital stock or other securities of the
Corporation (any of the foregoing, a "  ***Derivative Instrument***") directly or indirectly owned or held, including
beneficially, by each Holder or any Stockholder Associated Person, (cc) a description of any proxy, contract, arrangement, understanding
or relationship pursuant to which each Holder or any Stockholder Associated Person has any right to vote or has granted a right to vote
any class or series of shares of capital stock or other securities of the Corporation, (dd) any agreement, arrangement, understanding,
relationship or otherwise, including any repurchase or similar so-called "stock borrowing" agreement or arrangement engaged
in, directly or indirectly, by any Holder or Stockholder Associated Person, the purpose or effect of which is to mitigate loss to, reduce
the economic risk (of ownership or otherwise) of any class or series of shares of capital stock or other securities of the Corporation
by, manage the risk of price changes for, or increase or decrease the voting power of, such Holder or any Stockholder Associated Person
with respect to any class or series of shares of capital stock or other securities of the Corporation, or which provides, directly or
indirectly, the opportunity to profit or share in any profit derived from any decrease in the price or value of any class or series of
shares of capital stock or other securities of the Corporation (any of the
foregoing, a "  ***Short Interest*** "), and any Short Interest held by each Holder or any Stockholder Associated
Person within the last 12 months in any class or series of shares of capital stock or other securities of the Corporation, (ee) any
rights to dividends or payments in lieu of dividends on shares of capital stock of the Corporation owned beneficially by each Holder
or any Stockholder Associated Person that are separated or separable from the underlying shares of capital stock or other securities
of the Corporation, (ff) any proportionate interest in any class or series of shares of capital stock or other securities of the
Corporation or Derivative Instruments held, directly or indirectly, by a general or limited partnership or limited liability company
or other entity in which any Holder or any Stockholder Associated Person is a general partner or directly or indirectly beneficially
owns an interest in a general partner of a general or limited partnership, or is the manager or managing member or directly or
indirectly beneficially owns an interest in the manager or managing member of a limited liability company or other entity, (gg) any
direct or indirect legal, economic or financial interest (including a Short Interest) of each Holder or any Stockholder Associated
Person in the outcome of (I) any vote to be taken at any annual or special meeting of stockholders of the Corporation, or (II) any
meeting of stockholders of any other entity with respect to any matter that is related, directly or indirectly, to any nomination or
business proposed by any Holder under these Bylaws, (hh) any direct or indirect interest of each Holder or any Stockholder
Associated Person in any contract with the Corporation or any affiliate of the Corporation (including, in any such case, any
employment agreement, collective bargaining agreement or consulting agreement), and (ii) any material pending or threatened action,
suit or proceeding (whether civil, criminal, investigative, administrative or otherwise) in which any Holder or any Stockholder
Associated Person is, or is reasonably expected to be made, a party or material participant involving the Corporation or any of its
officers, directors or employees, or any affiliate of the Corporation, or any officer, director or employee of such affiliate (all
information contained in subclause (2) of this Section 2.4(iii)(c) shall be referred to as the "  ***Specified Information*** "), (3) a representation by the Noticing Stockholder that such stockholder is a holder of record of shares
of capital stock of the Corporation entitled to vote at such meeting, will continue to be a stockholder of record of the Corporation
entitled to vote at such meeting through the date of such meeting and intends to appear in person at the meeting to propose such
nomination or other business, (4) any other information relating to each Holder and any Stockholder Associated Person that would be
required to be disclosed in a proxy statement and form of proxy or other filings required to be made in connection with
solicitations of proxies for, as applicable, the election of
directors in a contested election and/or the proposal pursuant to Section 14 of the Exchange Act and the rules and regulations
promulgated thereunder, (5) a representation by the Noticing Stockholder as to whether any Holder and/or any Stockholder Associated
Person intends or is part of a group which intends: (aa) to deliver a proxy statement and/or form of proxy to holders of at least
the percentage of the Corporation's outstanding capital stock required to elect the proposed nominee or to approve or adopt
the other business being proposed, and/or (bb) otherwise to solicit proxies from stockholders in support of such nomination or other
business, (6) a certification by the Noticing Stockholder that each Holder and any Stockholder Associated Person has complied with
all applicable federal, state and other legal requirements in connection with its acquisition of shares of capital stock or other
securities of the Corporation and/or such person's acts or omissions as a stockholder of the Corporation, (7) the information
and statement required by Rule 14a-19(b) of the Exchange Act (or any successor provision), (8) the names and addresses of other
stockholders (including beneficial owners) known by any Holder, proposed nominee or Stockholder Associated Person to provide
financial or otherwise material support with respect to such nominations and/or proposals (it being understood that delivery of a
revocable proxy with respect to such nominations and/or proposals shall not in itself require disclosure under this clause (8)),
and, to the extent known, the class or series and number of shares of capital stock or other securities of the Corporation which
are, directly or indirectly, held of record or owned beneficially by each such other stockholder or beneficial owner, (9) any
agreements that would be required to be described or reported pursuant to Item 5 or Item 6 of Schedule 13D or filed as exhibits
pursuant to Item 7 of Schedule 13D (regardless of whether the requirements to file a Schedule 13D are applicable to such stockholder
or beneficial owner), (10) a representation by the Noticing Stockholder as to the accuracy of the information set forth in the
notice, including, without limitation, any information provided pursuant to subclauses (iii)(a)(6) and (iv) of this Section 2.4 and
(11) any other information as the Corporation may reasonably request, delivered within ten (10) business days of such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Corporation may also, as a condition to any such nomination or other business being deemed properly brought before a meeting of stockholders, require any Holder or any proposed nominee to deliver to the Secretary, within five (5) Business Days (as defined below) of any such request, such other information as may reasonably be requested by the Corporation, including (a) such other information as may reasonably be required by the Board, in its sole discretion, to determine (1) the eligibility of any such proposed nominee to serve as a director of the Corporation, and (2) whether any such proposed nominee qualifies as an "independent director" or "audit committee financial expert," or otherwise meets heightened standards of independence, under applicable law, securities exchange rule or regulation or any publicly disclosed corporate governance guideline or committee charter of the Corporation, and (b) such other information that the Board determines, in its sole discretion, could be material to a reasonable stockholder's understanding of the diversity and independence, or lack thereof, of any such proposed nominee. Any Noticing Stockholder that no longer intends to nominate a nominee as a director of the Corporation, or no longer intends to solicit proxies for the election of a nominee as a director of the Corporation, shall promptly notify 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;(v) In addition to the other requirements of this Section 2.4, each person who a Noticing Stockholder proposes to nominate for election or re-election as a director of the Corporation must deliver in writing (in accordance with the time periods prescribed for delivery of notice under this Section 2.4) to the Secretary at the principal executive offices of the Corporation (a) a written questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the Secretary upon written request of any stockholder of record identified by name within five (5) Business Days of such written request), and (b) a written representation and agreement (in the form provided by the Secretary upon written request of any stockholder of record identified by name within five (5) Business Days of such written request) that such person (1) is not and will not become a party to (aa) any agreement, arrangement or understanding (whether written or oral) with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (solely for purposes of this Section 2.4, a "***Voting Commitment***") that has not been disclosed to the Corporation, or (bb) any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law, (2) is not and will not become a party to any agreement, arrangement or understanding (whether written or oral) with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed to the Corporation, (3) in such person's individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable rules of the exchanges upon which the securities of the Corporation are listed and all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Corporation, and (4) in such person's individual capacity and on behalf of any Holder on whose behalf the nomination is being made, intends to serve a full term if elected as a director 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;(vi) *Special Meetings of Stockholders*. Nominations of persons for election to the Board may be made at a special meeting of stockholders at which directors are to be elected pursuant to the Corporation's notice of meeting: (i) by or at the direction of the Board and (ii) provided that the Board has determined that directors shall be elected at such meeting, by any stockholder of the Corporation who (1) is a stockholder of record on the date of the giving of the notice provided for in this Section 2.4, on the record date for the determination of stockholders entitled to notice of, and to vote at, such special meeting and at the time of such special meeting, (2) is entitled to vote at such special meeting, and (3) complies with the notice procedures set forth in this Section 2.4. In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board, any Noticing Stockholder entitled to vote in such election of directors may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Corporation's notice of meeting, if the Noticing Stockholder's notice as required by Section 2.4(i) (including the completed and signed questionnaire, representation and agreement and any and all other information required by Section 2.4) shall be delivered to the Secretary at the principal executive offices of the Corporation in proper written form not earlier than the Close of Business on the 120th day prior to the special meeting and not later than the Close of Business on the later of the 90th day prior to the special meeting or the 10th day following the day on which Public Announcement of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting is first made by the Corporation. In no event shall the Public Announcement of an adjournment, recess, rescheduling or postponement of a special meeting commence a new time period (or extend any time period) for the giving of a Noticing Stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) *General*.

&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) Only such persons who are nominated in accordance with the procedures
set forth in subsections (i) and (ii) of this Section 2.4 (in the case of an annual or special meeting) shall be eligible for election
to serve as directors and only such other business shall be conducted at a meeting of stockholders as shall have been brought before
the meeting in accordance with the procedures set forth in this Section 2.4. Except as otherwise provided by law, the Certificate or
these Bylaws, the Chair of the Board shall have the power and duty to determine whether a nomination or any other business proposed to
be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in these Bylaws (including
whether the Noticing Stockholder or other Holder, if any, on whose behalf the nomination is being made or other business is being proposed
solicited (or is part of a group which solicited) or did not so solicit, as the case may be, proxies in support of such Noticing Stockholder's
nominee or other business in compliance with such stockholder's representation as required by clauses (5) and (7) of Section 2.4(iii)(c)).
If any proposed nomination or other business was not made or proposed in compliance with these Bylaws, the chair of the meeting of stockholders
shall have the power and duty to declare to the meeting that any such nomination or other business was not properly brought before the
meeting and in accordance with the provisions of these Bylaws, and that such nomination or other business not properly brought before
the meeting shall be disregarded and/or shall not be transacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, to be considered timely, a Noticing Stockholder's
notice shall be further updated and supplemented, if necessary, so that the information provided or required to be provided in such notice
shall be true and correct as of the record date for the meeting and as of the date that is ten (10) Business Days prior to the meeting
or any adjournment, recess, rescheduling or postponement thereof, and such update and supplement shall be delivered to the Secretary
at the principal executive offices of the Corporation not later than five (5) Business Days after the record date for the meeting in
the case of the update and supplement required to be made as of the record date, and not later than eight (8) Business Days prior to
the date of the meeting or any adjournment, recess, rescheduling or postponement thereof in the case of the update and supplement required
to be made as of ten (10) Business Days prior to the meeting or any adjournment, recess, rescheduling or postponement thereof. In addition,
if the Noticing Stockholder has delivered to the Corporation a notice relating to the nomination of directors, the Noticing Stockholder
shall deliver to the Corporation not later than eight (8) Business Days prior to the date of the meeting or any adjournment, recess,
rescheduling or postponement thereof reasonable evidence that it has complied with the requirements of Rule 14a-19 of the Exchange Act
(or any successor provision). For the avoidance of doubt, the obligation to update and supplement set forth in this paragraph or any
other Section of these Bylaws shall not (x) limit the Corporation's rights with respect to any deficiencies in any notice provided
by a stockholder, (y) extend any applicable deadlines hereunder or (z) enable or be deemed to permit a stockholder who has previously
submitted notice hereunder to amend or update any proposal or to submit any new proposal, including by changing or adding nominees, matters,
business and/or resolutions proposed to be brought before a meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in these Bylaws, if
the Noticing Stockholder (or a qualified representative of the Noticing Stockholder) does not appear at the annual or special meeting
of stockholders, as applicable, to present a nomination or other business, such nomination shall be disregarded and such other business
shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes
of this Section 2.4, to be considered a "qualified representative" of the Noticing Stockholder, a person must be authorized
by a document authorizing another person or persons to act for such stockholder as proxy at the meeting of stockholders and such person
must produce the document or a reliable reproduction of such document at the meeting of stockholders. A stockholder may authorize another
person or persons to act for such stockholder as proxy by transmitting or authorizing the transmission of an electronic transmission
to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service organization or like agent duly
authorized by the person who will be the holder of the proxy to receive such transmission, provided that any such transmission must either
set forth or be submitted with information from which it can be determined that the transmission was authorized by the stockholder. If
it is determined that such transmissions are valid, the inspectors or, if there are no inspectors, such other persons making that determination
shall specify the information upon which such inspectors or such persons relied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any stockholder directly or indirectly soliciting proxies from
other stockholders must use a proxy card color other than white, which shall be reserved for exclusive use by the Board. If any stockholder
or Stockholder Associated Person provides notice pursuant to Rule 14a-19(b) under the Exchange Act, such stockholder or Stockholder Associated
Person shall deliver to the Corporation, within five (5) business days prior to the applicable meeting, reasonable evidence that it has
met the requirements of Rule l4a-19 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;(e) Notwithstanding anything in these Bylaws to the contrary, unless
otherwise required by law, if any stockholder or Stockholder Associated Person (i) provides notice pursuant to Rule 14a-19(b) under the
Exchange Act with respect to any stockholder nominee and (ii) subsequently fails to comply with the requirements of Rule 14a-19(a)(2)
or Rule 14a-19(a)(3) under the Exchange Act, or fails to timely provide reasonable evidence sufficient to satisfy the Corporation that
such stockholder or Stockholder Associated Person has met the requirements of Rule 14a-19 under the Exchange Act, then the nomination
of each such stockholder nominee shall be disregarded, notwithstanding that proxies or votes in respect of the election of such stockholder
nominee may have been received by the Corporation (which proxies and votes shall be disregarded except for the purpose of determining
a quorum).

&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) For purposes of these Bylaws,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "  ***affiliate***" shall have the meaning attributed to such
term in Rule 12b-2 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "  ***associate***" shall have the meaning attributed to such
term in Rule 12b-2 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "  ***Business Day***" means each Monday, Tuesday, Wednesday,
Thursday and Friday that is not a day on which banking institutions in New York, New York are authorized or obligated by law or executive
order to close;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "  ***Close of Business***" on a particular day means 5:00 p.m.
local time at the principal executive offices of the Corporation, and, if an applicable deadline falls on the Close of Business on a day
that is not a Business Day, then the applicable deadline shall be deemed to be the Close of Business on the immediately preceding Business
Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "  ***delivered***" means, solely for purposes of this Article
II, both (x) hand delivery, overnight courier service or sent and received by certified or registered mail, return receipt requested,
in each case, to the Secretary at the principal executive offices of the Corporation, and (y) electronic mail to the Secretary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "  ***immediate family member***" means a person's child,
stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law
and anyone (other than a tenant or employee) sharing the household of such person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) "  ***Public Announcement***" means disclosure (x) in a press
release released by the Corporation, provided such press release is released by the Corporation following its customary procedures, as
reported by the Dow Jones News Service, Associated Press or a comparable national news service, or is generally available on internet
news sites, or (y) in a document
publicly filed by the Corporation with the SEC pursuant to Sections 13, 14 or 15(d) of the Exchange Act; 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;(8) "  ***Stockholder Associated Person***" of any Holder means (x) any affiliate
or associate of such Holder or any member of a "group" (as such term is used in Rule 13d-5 under the Exchange Act (or any
successor provision at law)) with such holder, (y) any person controlling, controlled by or under common control with such Holder, and
(z) any immediate family member of 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;(viii) *Other Requirements and Rights*. In addition to the foregoing provisions of this Section 2.4, a stockholder must also comply with all applicable requirements of state law and of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.4. Nothing in this Section 2.4 shall be deemed to affect any rights 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;(a) a stockholder to request inclusion of proposals in the Corporation's proxy
statement pursuant to Rule 14a-8 (or any successor provision) under the Exchange Act; 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;(b) the Corporation to omit a proposal from the Corporation's proxy statement
pursuant to Rule 14a-8 (or any successor provision) under the Exchange Act.

<u>Section 2.5 Notice of Stockholders' Meetin</u>gs. The Corporation shall give a notice in writing of the place, if any, date and hour of each meeting of stockholders 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 meeting, the record date for determining the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled to notice of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Such notice may be delivered personally, by mail or by any other manner allowed by the General Corporation Law of the State of the Delaware (the "***General Corporation Law***"). Without limiting the manner by which notice otherwise may be given effectively to stockholders, if such notice is mailed, it shall be deemed to have been given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the record of the Corporation. Except as otherwise provided in the General Corporation Law, the Certificate or these Bylaws, the written notice of any meeting of stockholders shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting.

<u>Section 2.6</u> Q<u>uorum</u>. **The holders of one-third of the aggregate voting power of the capital stock issued and outstanding and entitled to vote, <u>present in person or represented by proxy</u>, shall constitute a quorum for the transaction of business** at all meetings of the stockholders, except where a different quorum is required by the General Corporation Law, the Certificate or these Bylaws. Where a separate vote by a class or series or classes or series is required, one-third of the outstanding shares of such class or series or classes or series, present in person or represented by proxy, shall constitute a quorum (as to such class or series) entitled to take action with respect to that vote on that matter, except as otherwise provided by law, the Certificate or these Bylaws. *Abstentions and non-votes by brokers are counted as present for purposes of determining a quorum.*

**If a quorum is not present** or represented at any meeting of the stockholders, then either (i) the chair of the meeting, or (ii) **the holders of a majority of the shares entitled to vote at the meeting, present in person or represented by proxy, shall have power to adjourn** the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present or represented. At such adjourned meeting at which a quorum is present or represented, any business may be transacted that might have been transacted at the meeting as originally noticed.

<u>Section 2.7 Ad</u>j<u>ourned Meeting; Notice</u>. When a meeting is adjourned to another time and/or place, unless these Bylaws otherwise require, notice need not be given of the adjourned meeting if the time, 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 (i) announced at the meeting at which the adjournment is taken, (ii) displayed, during the time scheduled for the meeting, on the same electronic network used to enable stockholders and proxy holders to participate in the meeting by means of remote communication or (iii) set forth in the notice of meeting given in accordance with these Bylaws. At the adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days or a new record date for stockholders entitled to vote is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

<u>Section 2.8 Conduct of Business</u>. The Board may, to the extent not prohibited by law or in contravention of the provisions of these Bylaws or the Certificate, adopt such rules and regulations for the conduct of meetings of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the chair of any meeting of stockholders shall have the exclusive right and authority to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of the chair, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the chair of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present, including regulation of the manner of voting and the conduct of discussion; (iii) limitations on attendance at or participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies or such other persons as the chair of the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; (v) limitations on or the elimination of time allotted to questions or comments by participants; and (vi) restrictions on the use of cell phones, audio or video recording devices and other devices at the meeting. The chair of any meeting of stockholders shall be designated by the Board; in the absence of such designation, the Chair of the Board, if any, the Lead Independent Director (as defined below) (in the absence of the Chair of the Board), the Chief Executive Officer (in the absence of the Chair of the Board and the Lead Independent Director) or the President (in the absence of the Chair of the Board and the Lead Independent Director and the Chief Executive Officer), or in their absence any other director or officer of the Corporation selected by the Board, shall serve as chair of the stockholder meeting. The chair of the meeting shall have the power, right and authority to convene, recess or adjourn any meeting of stockholders.

<u>Section 2.9</u> <u>Voting</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;(i) *Voting Rights.* Except as may be otherwise provided by law, the Certificate, these Bylaws or any Certificate of Designation (as such term is defined in the Certificate), each stockholder of record of any series of Preferred Stock shall be entitled at each meeting of the stockholders to such number of votes, if any, for each share of such stock as may be fixed in the Certificate or in the resolution or resolutions adopted by the Board providing for the issuance of such stock and each stockholder of record of the Corporation's Common Stock (as defined in the Certificate) shall be entitled at each meeting of the stockholders to one vote for each such share of such stock registered in such stockholder's name on the books of the Corporation on the date fixed pursuant to Section 2.11 of these Bylaws as the record date for the determination of stockholders entitled to notice of and to vote at such meeting. Any share of capital stock of the Corporation held by the Corporation shall have no voting 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;(ii) *Vote Required.* Except as otherwise required by law, the Certificate or these Bylaws, **in all matters other than the election of directors, <u>the affirmative vote of a majority of the shares cast</u> shall be the act of the stockholders**. Except as otherwise required by law, the Certificate or these Bylaws, **the vote required for election of a director by the stockholders at a meeting of stockholders shall be the affirmative vote of a <u>plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting</u> and entitled to vote on the election of directors.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Abstentions and Broker Non-Votes.* In determining the number of votes cast for or against, as applicable, a proposal or nominee, shares abstaining from voting on a matter will not be treated as a vote cast. A non-vote by a broker will be counted for purposes of determining a quorum but not for purposes of determining the number of votes cast.

<u>Section 2.10 No Stockholder Action by Written Consent Without a Meeting</u>. Except as otherwise set forth in the Certificate, subject to the rights of any series of Preferred Stock then outstanding, no action shall be taken by the stockholders of the Corporation except at a duly called annual or special meeting of stockholders and no action shall be taken by the stockholders of the Corporation by written consent in lieu of a meeting.

<u>Section 2.11</u> <u>Record Dates</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;(i) In order that the Corporation may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of and to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting.

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

<u>Section 2.12 Proxies</u>. Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder by proxy but such proxy, whether revocable or irrevocable, must comply with the applicable requirements of Delaware law.

<u>Section 2.13 List of Stockholders Entitled to Vote</u>. **The Corporation shall prepare no later than the 10th day before each meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting**; *provided, however*, if the record date for determining the stockholders entitled to vote is less than 10 days before the meeting date, the list shall reflect the stockholders entitled to vote as of the 10th day before the meeting date, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in the name of each stockholder. The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting for a period of 10 days ending on the day before the meeting date: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list was provided with the notice of the meeting; **or (ii) during ordinary business hours, at the principal place of business of the Corporation.** The stock ledger of the Corporation shall be the only evidence as to who are the stockholders entitled to examine the stock ledger and the list of stockholders or to vote in person or by proxy at any meeting of stockholders.

**ARTICLE III <br> <u>DIRECTORS</u>**

<u>Section 3.1 Board Power</u>. The business and affairs of the Corporation shall be managed by and under the direction of the Board, except as may be otherwise provided in the General Corporation Law or the Certificate. In addition to the powers and authority expressly conferred upon them by applicable law or by the Certificate or these Bylaws, the Board is hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation, except as otherwise specifically required by law or as otherwise provided in the Certificate.

<u>Section 3.2 Board Size</u>. Subject to the provisions of the Certificate, the Board shall consist of no less than five members and no more than 15 members, each of whom shall be a natural person. The number of directors shall be determined from time to time solely by resolution of the Board in accordance with the provisions of the Certificate. No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires.

<u>Section 3.3 Election, Qualification and Term of Office of Directors</u>. Except as provided in Section 3.4 of these Bylaws and subject to the provisions of the Certificate, each director shall hold office until the annual meeting at which such director's term expires and until such director's successor is duly elected and qualified, or until such director's earlier death, resignation, disqualification or removal. Directors need not be stockholders unless so required by the Certificate or these Bylaws. The Certificate or these Bylaws may prescribe other qualifications for directors.

<u>Section 3.4 Removal of Directors</u>. Directors may be removed from the Board at any time as provided in the Certificate.

<u>Section 3.5</u> <u>Resignation and Vacancies</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;(i) Any director may resign at any time by delivering a resignation in writing or by electronic transmission, signed by such director, to the Chair of the Board or the Secretary; *provided, however*, that if such notice is given by electronic transmission, such electronic transmission must either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the director. A resignation is effective when the resignation is delivered unless the resignation specifies a later effective date or an effective date determined upon the happening of an event or events. Acceptance of such resignation shall not be necessary to make it 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;(ii) Vacancies and newly created directorships on the Board shall be filled in the manner provided in the Certificate. A person so elected to fill a vacancy or newly created directorship shall hold office for a term expiring at the next election of the class for which such director shall have been chosen and until such director's successor shall have been duly elected and qualified, or until such director's earlier death, resignation, disqualification or removal.

<u>Section 3.6 Place of Meetings; Meetings by Remote Communication</u>. The Board may hold meetings, both regular and special, either within or without the State of Delaware. Members of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means of remote communication, including without limitation, by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting.

<u>Section 3.7 Regular Meetings</u>. Regular meetings of the Board may be held without notice at such time and at such place as shall from time to time be determined by the Board.

<u>Section 3.8 Special Meetings; Notice</u>. Special meetings of the Board for any purpose or purposes may be called at any time by the Chairperson of the Board, the Lead Independent Director (if any), the Chief Executive Officer or a majority of the directors then in office, at such times and places as such person or persons shall designate. Notice of special meetings of the Board shall be given to each director by mailing it to such director's residence or usual place of business (accompanied by an electronic transmission of such notice) at least twenty-four (24) hours before the date of the meeting or by telephone or electronic transmission at least twenty-four (24) hours before the meeting. Notice need not be given to any director who submits a signed waiver of notice before or after the meeting or who attends the meeting without protesting the lack of notice to such person, either before the meeting or when it begins. Notice of any adjourned meeting need not be given, other than by announcement at the meeting at which the adjournment is taken.

<u>Section 3.9 Quorum; Voting</u>. At all meetings of the Board a majority of the total number of directors then in office shall constitute a quorum for the transaction of business, unless a greater number is required by applicable law. If a quorum is not present at any meeting of the Board, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for that meeting. The vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board, except as may be otherwise specifically provided by statute, the Certificate or these Bylaws.

<u>Section 3.10 Board Action by Written Consent Without a Meeting</u>. Unless otherwise restricted by the Certificate or these Bylaws, any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing or by electronic transmission and any consent may be documented, signed and delivered in any manner permitted by Section 116 of the General Corporation Law. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of proceedings of the Board or committee.

<u>Section 3.11 Fees and Compensation of Directors</u>. Unless otherwise restricted by the Certificate or these Bylaws, the Board shall have the authority to fix the compensation, including fees, equity grants and reimbursement of expenses, of directors for services to the Corporation in any capacity.

<u>Section 3.12 The Chair of the Board</u>. The Chair of the Board shall have the powers and duties customarily and usually associated with the office of the Chair of the Board. The Chair of the Board shall preside at meetings of the stockholders and of the Board.

<u>Section 3.13 Lead Independent Director</u>. In the event that the Chair of the Board is an employee or officer of the Corporation, the Board may choose to appoint from its members a lead independent director from among their members that are Independent Directors (as defined below) (such director, the "***Lead Independent Director***"), which may be the Chair of the Board if the Chair is independent. If the Board appoints a Lead Independent Director, such Lead Independent Director shall perform such duties and possess such powers as are assigned by the Board, including presiding at all meetings at which the Chair of the Board is not present and calling meetings of the Corporation's independent directors. For purposes of these Bylaws, "***Independent Director***" has the meaning ascribed to such term under the rules of the exchange upon which the Corporation's Class A Common Stock is primarily traded.

**ARTICLE IV<br> <u>COMMITTEES</u>**

<u>Section 4.1 Committees of Directors</u>. The Board shall appoint one or more of its members to an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee, and may from time to time establish by resolution adopted by a majority of the entire Board, additional committees of its members. Subject to Section 4.5 of these Bylaws, 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. Any such committee, to the extent provided in the resolution of the Board or in these Bylaws, 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; *provided, however,* that no such committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter (other than the election or removal of directors) expressly required by the General Corporation Law to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any bylaw of the Corporation. A Director's membership on a committee shall terminate on the date of his, her or their death or resignation, removal or disqualification from the Board, but the Board may at any time for any reason remove any individual committee member from any committee and the Board may, subject to any requirements specifically set forth in this Article IV, fill any committee vacancy.

<u>Section 4.2 Committee Minutes</u>. Each committee shall keep regular minutes of its meetings and report its actions to the Board.

<u>Section 4.3</u> <u>Meetings and Action of Committees</u>.

Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Section 3.6 (place of meetings and meetings by telephone);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Section 3.7 (regular meetings);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Section 3.8 (special meetings; notice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Section 3.9 (quorum; voting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Section 3.10 (action without a meeting); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Section 7.5 (waiver of notice) with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the Board and its members. *However*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the time of regular meetings of committees may be determined by resolution of the committee or the chair
of such committee; 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;(b) special meetings of committees may also be called by resolution of the committee or the chair of such
committee.

The Board may adopt rules for the governance of any committee not inconsistent with the provisions of these Bylaws. Any committee, to the extent permitted by applicable law, 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 to the extent so authorized by the Board. Unless the Board provides otherwise, at all meetings of such committee, the majority of the then authorized members of the committee shall constitute a quorum for the transaction of business, and the vote of the majority of the members of the committee present at any meeting at which there is a quorum shall be the act of the committee. Unless the Board provides otherwise, each committee designated by the Board may make, alter, and repeal rules and procedures for the conduct of its business. In the absence of such rules and procedures each committee shall conduct its business in the same manner as the Board conducts its business.

<u>Section 4.4 Subcommittees</u>. Unless otherwise provided under applicable law, or in the Certificate, these Bylaws or the resolutions of the Board designating the committee, a committee may create one or more subcommittees, each subcommittee to consist of one or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee.

**ARTICLE V <br> <u>OFFICERS</u>**

<u>Section 5.1 Officers</u>. The officers of the Corporation shall be a Chief Executive Officer, a Chief Financial Officer, a Secretary and such other officers and assistant officers as may be deemed necessary or desirable by the Board. Any number of offices may be held by the same person. In its discretion, the Board may choose not to fill any office for any period as it may deem advisable; *provided, however*, that there shall always be (i) a Chief Executive Officer, (ii) a Secretary and (iii) a Chief Financial Officer.

<u>Section 5.2 Appointment of Officers</u>. The Board shall appoint the officers of the Corporation, except such officers as may be appointed in accordance with the provisions of Section 5.3 of these Bylaws, subject to the rights, if any, of an officer under any contract of employment. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in this Article V for the regular election to such office.

<u>Section 5.3 Subordinate Officers</u>. The Board may appoint, or empower the Chief Executive Officer to appoint, such other officers and agents as the business of the Corporation may require. Each of such officers and agents shall hold office for such period, have such authority, and perform such duties as are provided in these Bylaws or as the Board may from time to time determine.

<u>Section 5.4 Removal and Resignation of Officers</u>. Any officer may be removed, either with or without cause, by an affirmative vote of the majority of the Board at any regular or special meeting of the Board or, except in the case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board. Any officer may resign at any time by giving written or electronic notice to the Corporation; *provided, however*, that if such notice is given by electronic transmission, such electronic transmission must either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the officer. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer is a party.

<u>Section 5.5 Vacancies in Offices</u>. Any vacancy occurring in any office of the Corporation shall be filled by the Board as provided in Section 5.2 and 5.3.

<u>Section 5.6 Representation of Shares of Other Corporations</u>. The Chair of the Board, the Lead Independent Director, the Chief Executive Officer, the Chief Financial Officer the Secretary, or any other person authorized by the Board, the Chair of the Board, the Lead Independent Director or the Chief Executive Officer is authorized to vote, represent, and exercise on behalf of this Corporation all rights incident to any and all shares of any other corporation or corporations standing in the name of this Corporation. The authority granted herein may be exercised either by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by such person having the authority.

<u>Section 5.7 Authority and Duties of Officers</u>. All officers of the Corporation shall respectively have such authority and perform such duties in the management of the business of the Corporation as may be designated from time to time by the Board and, to the extent not so provided, as generally pertain to their respective offices, subject to the control of the Board.

<u>Section 5.8 The Chief Executive Officer</u>. The Chief Executive Officer shall have, subject to the supervision, direction and control of the Board, ultimate authority for decisions relating to the supervision, direction and management of the affairs and the business of the Corporation customarily and usually associated with the position of Chief Executive Officer, including, without limitation, all powers necessary to direct and control the organizational and reporting relationships within the Corporation. If at any time the office of the Chair and Lead Independent Director of the Board shall not be filled, or in the event of the temporary absence or disability of the Chair of the Board and the Lead Independent Director, the Chief Executive Officer shall perform the duties and exercise the powers of the Chair of the Board unless otherwise determined by the Board.

<u>Section 5.9 The Secretary</u>. The Secretary shall attend meetings of the Board and meetings of the stockholders and record all votes and minutes of all such proceedings in a book or books kept for such purpose. The Secretary shall have all such further powers and duties set forth in these Bylaws and as are customarily and usually associated with the position of Secretary or as may from time to time be assigned to him or her by the Board, the Chair of the Board, or the Chief Executive Officer.

<u>Section 5.10 The Chief Financial Officer</u>. The Chief Financial Officer shall be responsible for maintaining the Corporation's accounting records and statements, and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Corporation. The Chief Financial Officer shall also maintain adequate records of all assets, liabilities and transactions of the Corporation and shall assure that adequate audits thereof are currently and regularly made. The Chief Financial Officer shall have all such further powers and perform all such further duties as are customarily and usually associated with the position of Chief Financial Officer, or as may from time to time be assigned to him or her by the Board, the Chair of the Board or the Chief Executive Officer. Unless a treasurer has been appointed separately in accordance with these Bylaws, the Chief Financial Officer shall also perform the duties customarily and usually associated with the position of treasurer.

**ARTICLE VI<br> <u>CAPITAL STOCK</u>**

<u>Section 6.1 Stock Certificates; Uncertificated Shares</u>. The shares of the Corporation may be represented by certificated or uncertificated shares and may be evidenced by a book-entry system maintained by the registrar of such shares, as determined by the Corporation in accordance with applicable law. Except as otherwise expressly provided by law, the rights and obligations of the holders of uncertificated stock and the rights and obligations of the holders of certificates representing stock of the same class and series shall be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Shares with Certificates</u>. Each certificate of stock issued by the Corporation shall be signed (either manually or in facsimile) by any two authorized officers of the Corporation representing the number of shares registered in certificate form. If any person who signed a certificate no longer holds office when the certificate is issued, the certificate will be nonetheless valid. The Corporation shall not have power to issue a certificate in bearer form. If the Board chooses to issue shares of stock evidenced by a certificate or certificates, each individual certificate shall include the following on its face: (i) the Corporation's name, (ii) the fact that the Corporation is organized under the laws of Delaware, (iii) the name of the person to whom the certificate is issued, (iv) the number of shares represented thereby, (v) the class of shares and the designation of the series, if any, which the certificate represents, and (vi) such other information as required under the Certificate or applicable law or as may be lawful. If the Corporation is authorized to issue different classes of shares or different series within a class, the designations, relative rights, preferences and limitations determined for each series (and the authority of the Board to determine variations for future series) shall be summarized on the front or back of each certificate. Alternatively, each certificate shall state on its front or back that the Corporation will furnish the stockholder this information in writing, without charge, upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Shares without Certificates</u>. If the Board chooses to issue shares of stock without certificates, the Corporation, if required by the Exchange Act, shall, within a reasonable time after the issue or transfer of shares without certificates, send the stockholder a written notice containing the information required to be set forth or stated on certificates pursuant to the General Corporation Law. The Corporation may adopt a system of issuance, recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates, provided the use of such system by the Corporation is permitted in accordance with applicable law.

<u>Section 6.2 Lost, Stolen or Destroyed Certificates</u>. Except as provided in this Section 6.2, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the Corporation and cancelled at the same time. The Corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed. The Corporation may, subject to Section 167 of the General Corporation Law, determine the conditions upon which a new share certificate or uncertificated shares may be issued in place of any certificate alleged to have been lost, stolen or destroyed. The Corporation may, in its sole discretion, require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, 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 or uncertificated shares.

<u>Section 6.3 Dividends</u>. The Board, subject to any restrictions contained in the Certificate or applicable law, may declare and pay dividends upon the shares of the Corporation's capital stock. Dividends may be paid in cash, in property, or in shares of the corporation's capital stock, subject to the provisions of the Certificate.

<u>Section 6.4 Transfer of Stock</u>. Transfers of record of shares of stock of the Corporation shall be made only upon its books by the holders thereof, in person or by an attorney duly authorized, and, if such stock is certificated, upon the surrender of a certificate or certificates for a like number of shares, properly endorsed or accompanied by proper evidence of succession, assignation or authority to transfer; provided, however, that such succession, assignment or authority to transfer is not prohibited by the Certificate, these Bylaws, applicable law or contract.

<u>Section 6.5 Stock Transfer Agreements</u>. The Corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes of stock of the Corporation to restrict the transfer of shares of stock of the Corporation of any one or more classes owned by such stockholders in any manner not prohibited by the General Corporation Law.

<u>Section 6.6</u> <u>Registered Stockholders</u>. The Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be entitled to recognize the exclusive right of a person registered on its
books as the owner of shares to receive dividends and to vote as such owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall be entitled to hold liable for calls and assessments the person registered
on its books as the owner of shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not be bound to recognize any equitable or other claim to or interest in
such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise
provided by the laws of Delaware.

**ARTICLE VII**

**<u>MANNER OF GIVING NOTICE AND WAIVER</u>**

<u>Section 7.1 Notice of Stockholders' Meetin</u>gs. Notice of any meeting of stockholders, if mailed, is given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the Corporation's records. An affidavit of the Secretary or an Assistant Secretary of the Corporation or of the transfer agent or other agent of the Corporation that the notice has been given shall, in the absence of fraud, be *prima facie* evidence of the facts stated therein.

<u>Section 7.2 Notice by Electronic Transmission</u>. Without limiting the manner by which notice otherwise may be given effectively to stockholders pursuant to the General Corporation Law, the Certificate or these Bylaws, any notice to stockholders given by the Corporation under any provision of the General Corporation Law, the Certificate 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. Any such consent shall be revocable by the stockholder by written notice to the Corporation. Any such consent shall be deemed revoked if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation is unable to deliver by electronic transmission two consecutive
notices given by the Corporation in accordance with such consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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.

However, the inadvertent failure to discover such inability shall not invalidate any meeting or other action.

Any notice given pursuant to the preceding paragraph shall be deemed given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if by facsimile telecommunication, when directed to a number at which the stockholder
has consented to receive 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) if by electronic mail, when directed to the stockholder's electronic mail
address unless the stockholder has notified the Corporation in writing or by electronic transmission of an objection to receiving notice
by electronic mail or such notice is prohibited by Section 232(e) of the General Corporation 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;&nbsp;&nbsp;&nbsp;&nbsp;(III) if by a posting on an electronic network together with separate notice to the
stockholder of such specific posting, upon the later of (x) such posting and (y) the giving of such separate notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) if by any other form of electronic transmission, when directed to the stockholder.

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 by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

An "***electronic transmission***" means any form of communication, not directly involving the physical transmission of paper, including the use of, or participation in, one or more electronic networks or databases (including one or more distributed electronic networks or databases), that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

<u>Section 7.3 Notice to Stockholders Sharing an Address</u>. Except as otherwise prohibited under the General Corporation Law, without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under the provisions of the General Corporation Law, the Certificate or these Bylaws shall be effective if given by a single written notice to stockholders who share an address if consented to by the stockholders at that address to whom such notice is given. Any such consent shall be revocable by the stockholder by written notice to the Corporation. Any stockholder who fails to object in writing to the Corporation, within 60 days of having been given written notice by the Corporation of its intention to send the single notice, shall be deemed to have consented to receiving such single written notice.

<u>Section 7.4 Notice to Person with Whom Communication Is Unlawful</u>. Whenever notice is required to be given under the General Corporation Law, the Certificate or these Bylaws, to any person with whom communication is unlawful, the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to such person. Any action or meeting which shall be taken or held without notice to any such person with whom communication is unlawful shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the Corporation is such as to require the filing of a certificate under the General Corporation Law, the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.

<u>Section 7.5 Waiver of Notice</u>. Whenever notice is required to be given to stockholders, directors or other persons under any provision of the General Corporation Law, the Certificate or these Bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice is to be given, 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 or the Board, as the case may be, need be specified in any written waiver of notice or any waiver by electronic transmission unless so required by the Certificate or these Bylaws.

**ARTICLE VIII<br> <u>INDEMNIFICATION</u>**

<u>Section 8.1 Indemnification of Directors and Officers in Third Party Proceedings</u>. Subject to the other provisions of this <u>Article VIII</u>, the Corporation shall indemnify and hold harmless, to the fullest extent permitted by the General Corporation Law, as now or hereinafter in effect, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, arbitration, alternative dispute resolution mechanism, investigation, inquiry, judicial, administrative or legislative hearing, or any other threatened, pending or completed proceeding, whether civil, criminal, administrative, legislative, investigative or other nature and including any and all appeals (collectively, each a "***Proceeding***") (other than an action by or in the right of the Corporation to procure a judgement in its favor) by reason of the fact that such person is or was a director or officer of the Corporation, or while a director of the Corporation or officer of the Corporation is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against all liability and loss suffered and expenses, including, without limitation, attorneys' fees, judgments, fines, excise taxes under the Employee Retirement Income Security Act of 1974, as amended, damages, claims, penalties and amounts paid in settlement actually and reasonably incurred by such person in connection with such Proceeding, 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 Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person's conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which such person 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 reasonable cause to believe that such person's conduct was unlawful.

<u>Section 8.2 Indemnification of Directors and Officers in Actions by or in the Right of the Corporation</u>. Subject to the other provisions of this <u>Article VIII</u>, the Corporation shall indemnity, to the fullest extent permitted by the General Corporation Law, as now or hereinafter in effect, any person who was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgement in its favor by reason of the fact that such person is or was a director or officer of the Corporation, or while a director or officer of the Corporation is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against all liability and loss suffered and expenses, including, without limitation, attorneys' fees, judgments, fines, ERISA excise taxes, damages, claims, penalties and amounts paid in settlement actually and reasonably incurred by such person in connection with such Proceeding, 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 Corporation; except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

<u>Section 8.3 Successful Defense</u>. To the extent that a present or former director or officer of the Corporation has been successful on the merits or otherwise in defense of any Proceeding described in Section 8.1 or Section 8.2, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith to the extent not already advanced pursuant to Section 8.5.

<u>Section 8.4 Indemnification of Others</u>. Subject to the other provisions of this Article VIII, the Corporation shall have power to indemnify its employees and its agents to the extent not prohibited by the General Corporation Law or other applicable law. The Board shall have the power to delegate the determination of whether employees or agents shall be indemnified to such person or persons as the Board determines.

<u>Section 8.5 Advanced Payment of Expenses</u>. To the fullest extent permitted by applicable law, expenses (including attorneys' fees) incurred by an officer or director of the Corporation in defending any Proceeding shall be paid by the Corporation, and expenses (including attorneys' fees) incurred by the Corporation's employees and agents in defending any Proceeding shall be paid by the Corporation, in advance of the final disposition of such Proceeding upon receipt of a written request therefor and an undertaking, by or on behalf of the person, to repay such amounts so advanced if it shall ultimately be determined by final judicial decision of a court of competent jurisdiction from which there is no further right to appeal that such person is not entitled to be indemnified under this Article VIII or the General Corporation Law.

<u>Section 8.6 Non-Exclusivity of Rights</u>. The indemnification and advancement of expenses provided by, or granted pursuant to, this Article VIII shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under the Certificate (including the indemnification provisions set forth in <u>Article VII, Section 2</u> of the Certificate) or any statute, bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person's official capacity and as to action in another capacity while holding such office. The Corporation is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advancement of expenses, to the fullest extent not prohibited by the General Corporation Law or other applicable law.

<u>Section 8.7 Insurance</u>. The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of the General Corporation Law.

<u>Section 8.8 Survival</u>. Notwithstanding anything to the contrary, the rights to indemnification and advancement of expenses conferred by this Article VIII shall be contract rights and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

<u>Section 8.9 Effect of Repeal or Modification</u>. Any amendment, alteration or repeal of this Article VIII shall not adversely affect any right or protection hereunder of any person in respect of any act or omission occurring prior to such amendment, alteration or repeal.

<u>Section 8.10 Certain Definitions</u>. For purposes of this Article VIII, references to the "***Corporation***" shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article VIII with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued. For purposes of this Article VIII, references to "***other enterprises***" shall include employee benefit plans; references to "***fines***" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to "***serving at the request of the Corporation***" shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "***not opposed to the best interests of the Corporation***" as referred to in this Article VIII.

**ARTICLE IX**

**<u>GENERAL MATTERS</u>**

<u>Section 9.1 Execution of Corporate Contracts and Instruments</u>. Except as otherwise provided by law, the Certificate or these Bylaws, the Board may authorize any officer or officers, or agent or agents, to enter into any contract or execute any document or instrument in the name of and on behalf of the Corporation; such authority may be general or confined to specific instances. Unless so authorized or ratified by the Board or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the Corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount.

<u>Section 9.2 Fiscal Year</u>. The fiscal year of the Corporation shall be fixed by resolution of the Board and may be changed by the Board.

<u>Section 9.3 Seal</u>. The Corporation may adopt a corporate seal, which shall be adopted and which may be altered by the Board. The Corporation may use the corporate seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

<u>Section 9.4 Construction; Definitions</u>. Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the Certificate and the General Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular, and the term "person" includes both an entity and a natural person.

**ARTICLE X**

**<u>AMENDMENTS</u>**

The Board and stockholders may adopt, amend and repeal the Bylaws in the manner provided in the Certificate.

## Exhibit 3.3

**Exhibit 3.3**

**SERIES Z PREFERRED STOCK PURCHASE AND VOTING AGREEMENT**

This Series Z Preferred Stock Purchase and Voting Agreement (this "<u>Agreement</u>") is entered into as of June 23, 2026, by and between Ionic Digital Inc., a Delaware corporation (the "<u>Company</u>"), and IONIC DIGITAL SERIES Z TRUST, a Delaware statutory trust (the "<u>Stockholder</u>").

**WHEREAS**, the Stockholder proposes to purchase from the Company, and the Company proposes to sell to the Stockholder, 40,000 shares of shares of Series Z Preferred Stock, par value $0.00001 per share, of the Company (the "<u>Series Z Preferred Stock</u>") established by the board of directors of the Company (the "<u>Board of Directors</u>") pursuant to the Certificate of Designation of Series Z Preferred Stock, filed with the Secretary of State of the State of Delaware on June 23, 2026 (the "<u>Certificate of Designation</u>");

**WHEREAS**, the Stockholder will, upon such purchase, be the sole and record holder of all of the issued and outstanding shares of Series Z Preferred Stock (together with any other shares of Series Z Preferred Stock hereinafter issued to or otherwise acquired by the Stockholder, the "<u>Shares</u>");

**WHEREAS**, except as otherwise provided in the Certificate of Designation or by law, the holder of the outstanding Shares shall vote together with the holders of the outstanding shares of the Company's Class A common stock, par value $0.00001 per share (the "<u>Class A Common Stock</u>"), as a single class, with respect to any matter submitted to the holders of the Class A Common Stock;

**WHEREAS**, each Share has 1,000 votes on all matters submitted to a vote of the stockholders of the Company; and

**WHEREAS**, the Shares to be issued to the Stockholder will be issued in fractions of a Share in increments of one-thousandth, and each one-thousandth of a Share entitles the Stockholder to cast one vote in order to permit the Stockholder to vote in the same proportions as the holders of Class A Common Stock, as contemplated by this Agreement and the Certificate of Designation.

**NOW, THEREFORE**, in consideration of the foregoing, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

**Article I**

**PURCHASE AND SALE; VOTING; GRANT AND APPOINTMENT OF PROXY**

**Section 1.1 <u>Purchase and Sale</u>**. On the terms and subject to the conditions of this Agreement, the Stockholder agrees to purchase, and the Company agrees to sell and issue to the Stockholder, 40,000 shares of Series Z Preferred Stock, on the date hereof for an aggregate purchase price of $0.40.

**Section 1.2 <u>Voting</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Stockholder irrevocably and unconditionally hereby agrees that at any annual or special meeting of the stockholders of the Company, however called, including any adjournment, recess or postponement thereof, and in any other circumstance in which the holders of Class A Common Stock are entitled to vote, the Stockholder shall (i) appear, in person or by proxy, at each such meeting or otherwise cause the Shares to be counted as present thereat for purposes of determining whether a quorum is present and (ii) vote or cause to be voted, in person or by proxy, all of the Shares in the same proportion as the shares of Class A Common Stock that are voted on such matter (i.e., in the same proportion in which the holders of the Class A Common Stock cast votes "For," "Against" or "Abstain" on such matter, regardless of the number of shares of Class A Common Stock present in person or represented by proxy at such a meeting of the stockholders or that are actually voted on such matter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Stockholder irrevocably and unconditionally hereby agrees that at any annual or special meeting of the stockholders of the Company, however called, including any adjournment, recess or postponement thereof, and in any other circumstance in which the holders of Series Z Preferred Stock are entitled to vote separately as a class, and not with the Class A Common Stock, the Stockholder shall (i) appear, in person or by proxy, at each such meeting or otherwise cause the Shares to be counted as present thereat for purposes of determining whether a quorum is present and (ii) vote or cause to be voted, in person or by proxy, all of the Shares in accordance with the recommendation of the Board of Directors 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;(c) Notwithstanding anything to the contrary herein, for so long as the proxy granted by the Stockholder to the Company pursuant to <u>Section 1.3</u> remains in effect, the Stockholder shall only appear or vote at any such meeting of the stockholders by proxy (and not in person).

**Section 1.3 <u>Grant of Irrevocable Proxy; Appointment of Proxy</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In furtherance of its obligations set forth in <u>Section 1.2</u>, the Stockholder hereby irrevocably and unconditionally grants a proxy to, and appoints, the Company, as its true and lawful proxy and attorney-in-fact (with full power of substitution and resubstitution), for and in the Stockholder's name, place and stead, to vote or cause to be voted (including by execution and delivery of proxies) the Shares in accordance with <u>Section 1.2</u> hereof at any annual or special meeting of the stockholders of the Company, however called, including any postponement or adjournment thereof, and in any other circumstance upon which a vote or approval of all or some of the stockholders of the Company is sought. The Stockholder shall take such further action or execute such other instruments as may be reasonably necessary to effect the intent of this proxy. The Company shall, upon any exercise of the proxy or powers granted hereby, provide the Stockholder with copies of all documents related to or executed in connection with such exercise 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;(b) The Stockholder hereby covenants and agrees that it shall not offer or agree to grant a proxy or power of attorney (other than to the proxy granted to the Company for purposes of voting in accordance with <u>Section 1.2</u> hereof) with respect to, or create or permit to exist any agreement or limitation on, such Stockholder's voting rights (except for the irrevocable proxy granted under this <u>Section 1.3</u>). The Stockholder hereby revokes and terminates any and all prior proxies (if any) granted or given by the Stockholder with respect to the Shares and any and all powers of attorney related to the subject matter set forth 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;(c) The Stockholder affirms that the irrevocable proxy and power of attorney set forth in this <u>Section 1.3</u> is granted in accordance with the provisions of Section 212 of the General Corporation Law of the State of Delaware, as amended (the "<u>DGCL</u>"), to secure the performance of the Stockholder's duties under this Agreement. The Stockholder further affirms that such irrevocable proxy is executed and intended to be (and is) irrevocable in accordance with the provisions of Section 212 of the DGCL and is coupled with an interest sufficient in law to support an irrevocable proxy and ratifies and confirms all that the proxy holders appointed hereunder may lawfully do or cause to be done in compliance with the express terms hereof. If for any reason the proxy granted herein is not valid, then the Stockholder agrees to vote the Shares in accordance with <u>Section 1.2</u> hereof. The parties hereto agree that the foregoing is a voting agreement.

**Article II**

**REPRESENTATIONS, WARRANTIES AND COVENANTS** 

**Section 2.1 <u>Representations and Warranties of the Stockholder</u>**. The Stockholder represents and warrants to the Company as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Stockholder is a statutory trust duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Stockholder has full legal right, power, capacity and authority to execute and deliver this Agreement and to perform the Stockholder's obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Agreement has been duly executed and delivered by the Stockholder and the execution, delivery and performance of this Agreement by the Stockholder have been duly authorized by all necessary action on the part of the Stockholder and no other actions or proceedings on the part of the Stockholder are necessary to authorize this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Agreement constitutes a legal, valid and binding agreement of the Stockholder, enforceable against the Stockholder in accordance with its 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;(f) the Shares are not and will not be subject to any voting trust agreement or other agreement to which the Stockholder is or becomes a party restricting or otherwise relating to the voting of the Shares other than 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;(g) the Shares may not be Transferred (as defined in the Certificate of Designation) other than as provided in the Certificate of Designation;

&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) no filing with, and no permit, authorization, consent or approval of, any governmental entity is necessary on the part of the Stockholder for the execution, delivery and performance of this Agreement by the Stockholder and neither the execution, delivery or performance of this Agreement by the Stockholder, nor compliance by the Stockholder with any of the provisions hereof shall conflict with or violate any provision of the organizational documents of the Stockholder or violate any law applicable to the Stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Stockholder has such knowledge, skill and experience in business, financial and investment matters that the undersigned is capable of evaluating the merits and risks of an investment in the Shares. With the assistance of the Stockholder's own professional advisors, to the extent that the Stockholder has deemed appropriate, the Stockholder has made its own legal, tax, accounting, and financial evaluation of the merits and risks of an investment in the Shares and the consequences of this Agreement. The Stockholder has considered the suitability of the Shares as an investment in light of its own circumstances and financial condition and the Stockholder is able to bear the risks associated with an investment in the Shares, and it is authorized to invest in 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;(k) the Stockholder is acquiring the Shares solely for its own account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Shares. The Stockholder understands that the Shares have not been registered under the Securities Act of 1933, as amended, or any state securities laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of the Stockholder and of the other representations made by the Stockholder 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;(l) the Stockholder understands and accepts that the purchase of the Shares involves various risks, including the risks outlined in this Agreement. The Stockholder represents that it is able to bear any loss associated with an investment in the Shares. The Stockholder is familiar with the business and financial condition and operations of the Company. The Stockholder has had access to such information concerning the Company and the Shares as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Shares. The Stockholder confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as investment or tax advice or as a recommendation to purchase the Shares. In making its decision to purchase the Shares, the Stockholder has relied solely upon independent investigation made by the Stockholder and the Company's representations in <u>Section 2.2</u> of this Agreement.

**Section 2.2 <u>Representations and Warranties of the Company</u>**. The Company represents and warrants to the Stockholder as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company is a Delaware corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company has full legal right, power, capacity and authority to execute and deliver this Agreement and to perform the its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Agreement has been duly executed and delivered by the Company and the execution, delivery and performance of this Agreement by the Company have been duly authorized by all necessary action on the part of the Company and no other actions or proceedings on the part of the Company are necessary to authorize this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Agreement constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its 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;(e) the Shares have been duly authorized and, when issued, delivered and paid for in the manner set forth in this Agreement, will be validly issued, fully paid and nonassessable.

**Article III**

**TERMINATION**

**Section 3.1 <u>Termination</u>**. This Agreement, and the obligations of the Stockholder hereunder, shall terminate and be of no further force or effect immediately at the Redemption Time (as defined in the Certificate of Designation) or upon the mutual written consent of the Company and the Stockholder.

**Article IV**

**MISCELLANEOUS**

**Section 4.1 <u>Capacity</u>**. Notwithstanding anything to the contrary in this Agreement, the Stockholder is entering into this Agreement, and agreeing to become bound hereby, solely in its capacity as the record holder of the Shares and not in any other capacity.

**Section 4.2 <u>Severability</u>**. Each party hereto agrees that, should any court of competent jurisdiction or other competent authority hold any provision of this Agreement or part of this Agreement to be null, void or unenforceable, or order any party to take any action inconsistent herewith or not to take an action consistent with the terms of, or required by, this Agreement, the validity, legality and enforceability of the remaining provisions and obligations contained or set forth in this Agreement shall not in any way be affected or impaired, unless the foregoing inconsistent action or the failure to take an action constitutes a material breach of this Agreement or makes this Agreement impossible to perform, in which case this Agreement shall terminate. Upon such determination that any term or other provision is null, void or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in a mutually acceptable manner.

**Section 4.3 <u>Entire Agreement</u>**. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof and thereof.

**Section 4.4 <u>Specific Performance</u>**. The parties agree that irreparable damage, for which monetary damages would not be an adequate remedy, would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached by the parties. The Stockholder acknowledges and agrees that (a) the Company shall be entitled to seek an injunction, specific performance, or other equitable relief, to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, without proof of damages, this being in addition to any other remedy to which the Company may be entitled at law or in equity, and (b) the right of specific enforcement is an integral part of the transactions contemplated by this Agreement. The Stockholder agrees that it will not oppose the granting of specific performance and other equitable relief on the basis that the other party has an adequate remedy at law or that an award of specific performance is not an appropriate remedy for any reason at law or in equity. The Stockholder acknowledges and agrees that if the Company seeks an injunction to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, it shall not be required to provide any bond or other security in connection with any such injunction.

**Section 4.5 <u>Amendments: Waivers</u>**. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Company and the Stockholder, or in the case of a waiver, by the party against whom the waiver is to be effective. Notwithstanding the foregoing, no failure or delay by a party hereto in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right hereunder.

**Section 4.6 <u>Governing Law: Venue: Waiver of Jury Trial.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This agreement, and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of, or relate to this Agreement, or the negotiation, execution or performance of this Agreement, shall be governed by and construed in accordance with the laws of the state of Delaware, without giving effect to the principles of conflicts of law thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties irrevocably submit to the jurisdiction of the Court of Chancery of the State of Delaware or, if the Court of Chancery of the State of Delaware or the Delaware Supreme Court determines that, notwithstanding Section 111 of the DGCL, the Court of Chancery of the State of Delaware does not have or should not exercise subject matter jurisdiction over such matter, the Superior Court of the State of Delaware and the federal courts of the United States of America located in the State of Delaware solely in connection with any dispute that arises in respect of the interpretation and enforcement of the provisions of this Agreement and the documents referred to in this Agreement or in respect of the transactions contemplated by this Agreement, and waive, and agree not to assert, as a defense in any action, suit or proceeding for interpretation or enforcement of this Agreement or any such document that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts, and the parties irrevocably agree that all claims with respect to such action, suit or proceeding shall be heard and determined exclusively by such a Delaware state or federal court and agree not to commence any such action, suit or proceeding except in such courts. The parties consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of such dispute and agree that mailing of process or other papers in connection with such action, suit or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY LEGAL PROCEEDING BASED UPON, ARISING OUT OF, OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

**Section 4.7 <u>No Third-Party Beneficiaries</u>**. There are no third-party beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer on any person other than the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies, obligations or liabilities, except as specifically set forth in this Agreement.

**Section 4.8 <u>Counterparts</u>**. This Agreement may be executed in counterparts, including via facsimile or email in "portable document format" (".pdf") form, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart.

[*Signature Page Follows*]

**IN WITNESS WHEREOF**, the parties hereto have duly executed and delivered this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **STOCKHOLDER:** | **STOCKHOLDER:** |
| **IONIC DIGITAL SERIES Z TRUST** | **IONIC DIGITAL SERIES Z TRUST** |
| By: | Wilmington Savings Fund Society, FSB, acting solely as trustee |
| By: | /s/ Anita Woolery |
| Name: | Anita Woolery |
| Title: | Vice President – GCM Relationship Manager III |
| **COMPANY:** | **COMPANY:** |
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| By: | /s/ Andrew Stewart |
| Name: | Andrew Stewart |
| Title: | Chief Executive Officer |

---

[*Signature Page to Series Z Preferred Stock Purchase and Voting Agreement*]

## Exhibit 3.4

**Exhibit 3.4**

**IONIC DIGITAL INC.**

**CERTIFICATE OF DESIGNATION**

**OF**

**SERIES A CONVERTIBLE PREFERRED STOCK**

Pursuant to Section 151 of the<br> General Corporation Law of the State of Delaware

The following recital and resolution were duly adopted by the board of directors (the "<u>Board of Directors</u>") of Ionic Digital Inc., a Delaware corporation (the "<u>Corporation</u>"), pursuant to the authority conferred upon the Board of Directors by the Amended and Restated Certificate of Incorporation of the Corporation (as amended, the "<u>Certificate of Incorporation</u>") and in accordance with the provisions of Section 151 of the General Corporation Law of the State of Delaware, as amended (the "<u>DGCL</u>") on June 26, 2026, which resolution provides for the creation of a series of the Preferred Stock (as defined below), which is designated as "Series A Convertible Preferred Stock," with the rights, preferences, privileges and restrictions set forth therein.

**WHEREAS**, the Certificate of Incorporation authorizes the issuance of up to 15,000,000 shares of preferred stock, par value $0.00001 per share (the "<u>Preferred Stock</u>"), issuable from time to time in one or more series, and further provides that the Board of Directors is expressly authorized to establish from time to time the number of shares to be included in each such series, to fix the designation, vesting, powers (including voting powers, full or limited, or no voting powers), preferences and relative, participating, optional or other special rights, if any, of the shares of each such series, and any qualifications, limitations or restrictions thereof.

**NOW, THEREFORE, BE IT RESOLVED**, that, pursuant to authority conferred upon the Board of Directors by the Certificate of Incorporation, (i) a series of Preferred Stock be, and hereby is, authorized and established by the Board of Directors and is hereby designated as "Series A Convertible Preferred Stock", (ii) the Board of Directors hereby authorizes 7,547,166 shares of Series A Convertible Preferred Stock for issuance and (iii) the Board of Directors hereby fixes the voting powers, designations, preferences, limitations, restrictions and relative rights of such shares of Preferred Stock, in addition to any provisions set forth in the Certificate of Incorporation that are applicable to all series of the Preferred Stock, as set forth in this certificate of designation (this "<u>Certificate of Designation</u>").

Section 1. <u>Designation; Rank</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;1.1. <u>Designation</u>. There is hereby created out of the authorized and unissued shares of preferred stock, par value $0.00001 per share, of the Corporation a series of preferred stock designated as "Series A Convertible Preferred Stock". The number of shares constituting such series shall be 7,547,166 and such shares are referred to herein as the "<u>Series A Preferred Stock</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Rank</u>. The Series A Preferred Stock shall, with respect to dividend distributions, distributions upon liquidation, winding-up and dissolution of the Corporation and redemption, rank senior (to the extent set forth herein) to all Junior 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;1.3. <u>Dividends</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;(i) Subject to <u>Section 1.3(ii)</u>, in the event the Corporation declares or pays a dividend or distribution on the Common Stock, whether such dividend or distribution is payable in cash, securities or other property, but excluding (i) any dividend or distribution payable on the Common Stock in shares of Common Stock and (ii) any repurchases of Common Stock held by employees or consultants of the Corporation or any of its Subsidiaries, the Corporation shall simultaneously declare and pay a dividend on the Series A Preferred Stock on a pro rata basis with the Common Stock determined on an as-converted basis assuming all shares of Series A Preferred Stock had been converted pursuant to <u>Section 4.1(i)</u> as of immediately prior to the record date of the applicable dividend (or if no record date is fixed, the date as of which the record holders of Common Stock entitled to such dividends are to be determined). Notwithstanding anything to the contrary herein, the Corporation may not declare or pay any dividend or make any other payment to the extent such declaration or payment of dividend or other payment is not permitted by law. So long as any Series A Preferred Stock remains outstanding, the Corporation shall not authorize or declare any dividend or other distribution with respect to any Junior Securities except as contemplated by this <u>Section 1.3(i)</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;(ii) Beginning on January 15, 2027 (the "<u>Cash Dividend Commencement Date</u>"), cumulative and preferential cash dividends shall accrue on each share of Series A Preferred Stock (each a "<u>Share</u>" and, collectively, the "<u>Shares</u>") at an annual rate equal to the applicable Dividend Rate on Stated Value of such Share (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Preferred Stock) as of the commencement of the applicable Dividend Period (such dividends, the "<u>Cash Dividends</u>"). Cash Dividends with respect to each Dividend Period shall be paid to the Holders in cash in U.S. dollars on the Dividend Payment Date for such Dividend Period, with the first Dividend Payment Date hereunder occurring on March 31, 2027. Cash Dividends shall accumulate daily from the Cash Dividend Commencement Date, irrespective of whether (i) such Cash Dividends are declared, (ii) the Corporation has earnings or profits or (iii) there are funds legally available for the payment of such Cash Dividends. Cash Dividends payable each full Dividend Period shall be computed by dividing the Dividend Rate by four. Cash Dividends payable for the initial Dividend Period, or any other period that is shorter than a full Dividend Period, shall be calculated on the basis of the actual days elapsed in a year of 360 days. Cash Dividends shall be payable to the Holders pro rata based on the Stated Value of the Shares held by each Holder. Cash Dividends shall be payable to the Holders as they appear on the Corporation's stock register on the Business Day immediately prior to the applicable Dividend Payment Date.

Section 2. <u>Liquidation</u>. Upon any actual liquidation, dissolution or winding up of the Corporation (whether voluntary or involuntary), each Holder shall be entitled to be paid, before any distribution or payment is made upon any Junior Securities out of the assets of the Corporation available for distribution to stockholders, an amount per outstanding Share equal to the greater of (i) the Stated Value of such Share or (ii) the amount to which such Holder would be entitled to receive upon such liquidation, dissolution or winding up if such Share were converted into Common Stock pursuant to <u>Section 4.1(ii)</u> immediately prior to such event; <u>provided</u>, that in no event shall the Liquidation Value (as defined below) be equal to an amount less than the Minimum Return. The amount a Holder is entitled to pursuant to this <u>Section 2</u> is referred to herein as the "Liquidation Value". If upon any such liquidation, dissolution or winding up of the Corporation the assets of the Corporation to be distributed among the Holders are insufficient to permit payment to such Holders of the aggregate amount which they are entitled to be paid under this <u>Section 2</u>, then all assets available to be distributed to the Corporation's stockholders shall be distributed *pro rata* among such Holders based upon the aggregate Liquidation Value of the Series A Preferred Stock held by each Holder. Not less than twenty (20) days prior to the payment date stated therein, the Corporation shall deliver written notice of any such liquidation, dissolution or winding up to each record Holder, setting forth in reasonable detail the amount of proceeds to be paid with respect to each Share and each share of Junior Securities in connection with such liquidation, dissolution or winding up.

Section 3. <u>Voting</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;3.1. <u>Voting Generally</u>. For so long as any Share is outstanding, such Share shall entitle the Holder thereof to notice of and to vote, in person or by proxy, at any special or annual meeting of stockholders, on all matters entitled to be voted on by holders of Common Stock and any other series or class of voting stock of the Corporation voting together as a single class with all other shares entitled to vote thereon. With respect to any such vote, each Share shall entitle the Holder thereof to cast a number of votes equal to the number of votes that such Holder would be entitled to cast had such Holder converted such Share into shares of Common Stock in accordance with <u>Section 4.1(i)</u> as of immediately prior to the record date for determining the stockholders of the Corporation eligible to vote on any such matters. Except as set forth herein, or as otherwise required by law, Holders shall have no special voting rights or powers and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. In any case in which the Holders shall be entitled to vote as a separate class pursuant to the Certificate of Incorporation, this Certificate of Designation or Delaware law, each Holder shall be entitled to one vote for each Share held on the record date for determining the stockholders of the Corporation eligible to vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. <u>Consent to Senior Securities</u>. So long as any Series A Preferred Stock remains outstanding, without the prior written consent of the Holders of not less than 67% of the outstanding Shares, voting separately as a single class with one vote per Share, in person or by proxy, either in writing without a meeting or at an annual or a special meeting of such Holders, and any other applicable stockholder approval requirements required by law, the Corporation shall not, nor shall it permit any Subsidiary to, increase the number of authorized Shares, issue any additional Shares or create, or authorize the creation of, or issue or sell, or obligate itself to issue or sell, any securities of the Corporation or any Subsidiary (or any security convertible into or exercisable for any class or series of capital stock of the Corporation or any Subsidiary) that rank superior to or in parity with the Series A Preferred Stock in rights, preferences or privileges (including with respect to dividends, liquidation, redemption or voting).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Consent to Certain Actions</u>. Subject to <u>Section 9.1</u>, so long as any Series A Preferred Stock remains outstanding, without the prior written consent of the Holders of not less than a majority of the outstanding Shares, voting separately as a single class with one vote per Share, in person or by proxy, either in writing without a meeting or at an annual or a special meeting of such Holders, and any other applicable stockholder approval requirements required by law, the Corporation shall not, nor shall it permit any Subsidiary to, amend, modify or repeal (whether by merger, consolidation or otherwise) any provision of any certificate of designation relating to any series of Preferred Stock, as then in effect, in each case, in a way that adversely affects the rights, preferences or privileges of the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Conversion Event Delay Reserved Matters</u>. In the event a Conversion Event has not occurred prior to the Cash Dividend Commencement Date, then, until the occurrence of a Conversion Event, the Corporation shall not, and shall, cause each of its Subsidiaries not to, without the prior written consent of the Holders of not less than 67% of the outstanding 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;(i) issue any new, reclassify any existing Equity Interests into, or issue any Equity Interests convertible into, Equity Interests of the Corporation, unless the proceeds are used to redeem all outstanding Shares in full in cash pursuant to <u>Section 5</u> at the then-applicable Mandatory Redemption Price or such Equity Interests are issued to employees or directors of, or consultants or advisors to, the Corporation or any of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors prior to the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) issue any new, reclassify any existing Equity Interests into, issue any Equity Interests convertible into or issue or transfer any Equity Interests of, or convertible into, Equity Interests of any Subsidiary of the Corporation, other than to the Corporation or a wholly owned Subsidiary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) purchase or redeem, or pay or declare any dividend or make any distribution on, any shares of capital stock other than (i) redemptions of or Cash Dividends on the Series A Preferred Stock as expressly authorized herein, (ii) dividends or other distributions payable solely in the form of additional shares of Common Stock or (iii) repurchases of stock from former employees, officers, directors, consultants or other persons who performed services for the Corporation or any of its Subsidiaries in connection with the cessation of such employment or service at no greater than the original purchase price thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) guarantee, assume, incur, create, finance, refinance or otherwise become liable for any indebtedness in excess of $50,000,000, other than in connection with any ordinary or customary trade payables, or grant or permit to exist any lien securing indebtedness for borrowed money other than any indebtedness permitted pursuant to the foregoing provisions of this paragraph;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) acquire any assets or Equity Interests of a Third Party or dispose of any assets or Equity Interests (by purchase, merger, joint venture, partnership, consolidation, dissolution, liquidation, tender offer, exchange offer, recapitalization, reorganization, share exchange, business combination or similar transaction) in a transaction having a purchase price greater than $50,000,000 in any single transaction or $100,000,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) enter into or effect any Sale Event, voluntary liquidation, dissolution or winding-up of the Corporation or any of its 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;(vii) enter into, amend or modify any transaction between the Corporation or any of its Subsidiaries, on the one hand, and any of their respective Affiliates, on the other hand, or any transaction involving the Corporation or any of its Subsidiaries, on the one hand, and any Person in which an Affiliate of the Corporation or any of its Subsidiaries shall have a direct or indirect material financial interest, on the other hand (each, an "<u>Interested Transaction</u>"), other than any Interested Transaction on terms that are not less favorable to the Corporation or its Subsidiaries than would be obtained in a transaction negotiated at arm's length with an unrelated Third 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;(viii) materially change the Corporation's or any of its Subsidiaries' existing lines of business, enter into any new line of business or engage in any business outside the scope of the existing business; 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;(ix) agree to do any of the foregoing or approve or direct the Corporation or any of its Subsidiaries to take any of the foregoing actions.

Section 4. <u>Conversion</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;4.1 <u>Optional Conversion</u>. Each Holder shall have the right to convert all or any portion of such Holder's Shares for shares of Common Stock on 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;(i) Subject to <u>Section 4.1(ii)</u>, at any time after the date hereof, each Holder shall have the right, but not the obligation, subject to the limitations set forth in <u>Sections 4.2</u> and <u>4.3</u>, to convert all or any portion of such Holder's Shares into shares of Common Stock in accordance with this <u>Section 4.1(i)</u> (a "<u>Base Conversion Right</u>"), <u>provided</u>, <u>however</u>, that such conversion shall not be effected if prohibited by any law or Order as determined by the Corporation (the Corporation's assertion of such prohibition shall be made in good faith by the Board of Directors after consultation with outside counsel). The number of shares of Common Stock issuable by the Corporation for each Share with respect to which a Base Conversion Right is exercised shall be the product of (a) the aggregate number of Shares being converted, multiplied by (b) the Base Conversion Rate as of the Conversion Closing Date (as defined below), rounded up to the nearest whole share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that any Shares remain outstanding as of June 26, 2028 (or such other time as may be agreed in writing among the Corporation and Holders of not less than 67% of the outstanding Shares) (the "<u>Maturity Date</u>"), each Holder shall have the right, but not the obligation, subject to the limitations set forth in <u>Sections 4.2</u> and <u>4.3</u>, to convert all or any portion of such Holder's Shares into shares of Common Stock in accordance with this <u>Section 4.1(ii)</u> (a "<u>Maturity Conversion Right</u>"), which Maturity Conversion Right shall be exercisable during the period commencing twenty (20) Business Days prior to the Maturity Date and ending five (5) Business Days prior to the Maturity Date; <u>provided</u>, <u>however</u>, that such conversion shall not be effected if prohibited by any law or Order as determined by the Corporation (the Corporation's assertion of such prohibition shall be made in good faith by the Board of Directors after consultation with outside counsel). The number of shares of Common Stock issuable by the Corporation for each Share with respect to which a Maturity Conversion Right is exercised shall be the product of (a) the aggregate number of Shares being converted, multiplied by (b) the Maturity Conversion Rate, rounded to the nearest whole share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No fractional shares of Common Stock shall be issued upon conversion of the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any Conversion Right shall be exercised by written notice given by a Holder exercising its applicable Conversion Right to the Corporation. Notice of the exercise of a Conversion Right ("<u>Conversion Notice</u>") shall include (a) (w) such Holder's name or the names of the nominees in which such Holder wishes the shares of Common Stock to be issued, (x) the number of Shares to be converted, (y) whether such conversion is pursuant to the exercise of a Base Conversion Right or a Maturity Conversion Right and, (z) if applicable, any event on which such conversion is contingent (which Conversion Notice can be delivered via email or other electronic delivery), and (b) the Certificate(s) representing the Shares to be converted or, if such Shares are Book Entry Shares, evidence of such Book Entry 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;(v) The Corporation's conversion of the Shares upon the exercise of a Conversion Right shall occur at the close of business on the date (the "<u>Conversion Closing Date</u>") designated by the Corporation which, (a) in the case of an exercise of the Base Conversion right, shall not be later than five (5) Business Days after receipt of the related Conversion Notice, and (b) in the case of any exercise of the Maturity Conversion Right, shall be the Maturity Date, and, in each case, shall be subject to the conditions that (x) such conversion is not prohibited by any law or Order (the Corporation's assertion of such prohibition shall be made in good faith by the Board of Directors after consultation with outside counsel) and (y) the Certificates representing the Shares to be converted have been surrendered for conversion at the principal office of the Corporation, or, if such Shares are Book Entry Shares, a book-entry transfer of such Shares has been made to an account designated by the Corporation (which account the Corporation shall designate promptly).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Promptly (and in no event more than three (3) Business Days) following any Conversion Closing Date, the Corporation shall deliver to the Holder (or, if applicable, the name of such Holder's designee as stated in the Conversion Notice): (a) the number of shares of Common Stock issued by reason of such conversion in such name or names and such denomination or denominations as such Holder has specified in the relevant Conversion Notice; and (b) one or more Certificates representing any Shares which were represented by Certificates delivered to the Corporation in the Conversion Notice but which were not converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. <u>Automatic Conversion</u>. All the issued and outstanding Shares shall automatically convert into shares of Common Stock at the applicable Base Conversion Rate immediately prior to the consummation of a Conversion Event (which in the case of a Direct Listing shall be at the open of business on the first day of trading) (an "<u>Automatic Conversion</u>"). Not less than ten (10) Business Days prior to the effective date of the Automatic Conversion, the Corporation shall provide written notice (an "<u>Automatic Conversion Notice</u>") to all record holders of Series A Preferred Stock of such Automatic Conversion. Such Automatic Conversion Notice shall state (i) the date on which the Automatic Conversion shall occur (the "<u>Automatic Conversion Date</u>"), (ii) the Conversion Event giving rise to the delivery of such Automatic Conversion Notice, (iii) the number of Shares held by such Holder as of the date of Automatic Conversion Notice, (iv) the Base Conversion Rate as of the date of the Automatic Conversion Notice, and (v) the number of shares of Common Stock expected to be received by such Holder on the Automatic Conversion Date and, if the Shares are certificated, call upon the Holders to deliver to the Corporation the Certificates representing the Shares so converted. As soon as practicable following the Automatic Conversion Date, the Corporation shall deliver to the Holders certificates representing that number of shares of Common Stock issuable upon conversion of such shares of Series A Preferred Stock being converted, dated as of the date of such conversion, or, if the Common Stock is not then certificated, such number of shares of Common Stock by book entry on the books and records 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>General Conversion 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the time any conversion has been effected pursuant to <u>Section 4.1</u> or <u>4.2</u>, the rights of the Holder of the Shares converted as a Holder of Series A Preferred Stock shall cease, and the Person or Persons in whose name or names any certificate(s) or book-entry statements for shares of Common Stock are to be issued upon a conversion shall be deemed to have become the holder or holders of record of the shares of Common Stock represented thereby on the Conversion Closing Date or the Automatic Conversion Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Corporation shall, as soon as reasonably practicable after a Conversion Closing Date, cancel (and not reissue) all converted Shares, whether held in certificated or book-entry 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The issuance of certificates or book-entry statements for shares of Common Stock upon conversion of Series A Preferred Stock shall be made without charge to Holders for any issuance tax in respect thereof or other cost incurred by the Corporation in connection with such conversion and the related issuance of shares of Common Stock. Upon conversion of each Share, the Corporation shall take all such actions as are reasonably necessary in order to insure that the Common Stock issuable with respect to such conversion shall be validly issued, fully paid and non-assessable, free and clear of all taxes, liens, charges and encumbrances with respect to the issuance thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of issuance upon conversion of the Shares, such number of shares of Common Stock issuable upon the conversion of all outstanding Shares. All shares of Common Stock which are so issuable shall, when issued, be duly and validly issued, fully paid and non-assessable and free from all taxes, liens, charges and encumbrances. The Corporation shall take all such actions as may be necessary to assure that all such shares of Common Stock may be so issued without violation of any applicable law or governmental regulation or any requirements of any securities exchange upon which shares of Common Stock may be listed (except for official notice of issuance which shall be immediately delivered by the Corporation upon each such issuance). The Corporation shall not take any action which would cause the number of authorized but unissued shares of Common Stock to be less than the number of such shares required to be reserved hereunder for issuance upon conversion 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;(v) The Corporation shall not enter into any agreement or other arrangement that prohibits or otherwise impairs its ability to comply with any of the provisions of <u>Section 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Adjustment of Measurement Price</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;(i) *Adjustment for Stock Dividends and for Combinations or Subdivisions of Common Stock*. If the Corporation at any time (i) pays a dividend or makes any other distribution upon the Common Stock or any other capital stock of the Corporation payable in shares of Common Stock (other than distributions on the Series A Preferred Stock) or (ii) subdivides (by any stock split, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, then the Measurement Price in effect immediately prior to such dividend, distribution or subdivision shall be proportionately reduced. If the Corporation at any time combines (by reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, then the Measurement Price in effect immediately prior to such combination shall be proportionately increased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *Adjustment for Reclassifications and Reorganizations*. If the Common Stock issuable upon conversion of the Shares shall be changed into the same or a different number of shares of any other class or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a subdivision or combination of shares provided for in <u>Section 4.4(i)</u> or a merger or other reorganization provided for in <u>Section 4.4(iii)</u>) then, in each such event, each Share shall thereafter be convertible into the kind and amount of shares of stock and other securities or property which the holder of that number of shares of Common Stock (or other securities) into which such Shares shall be convertible immediately prior to such event would be entitled to receive upon the occurrence of such event. In every such case, appropriate adjustments shall be made in the application of the provisions of this <u>Section 4.4(ii)</u> with respect to the rights of the Holders after such event to the end that the provisions of this <u>Section 4.4(ii)</u> (including adjustment of the Measurement Price then in effect and the kind and amount of shares or other property into which the Shares may be converted), shall be applicable after that event, as nearly equivalent as may be practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Adjustment for Merger or Consolidation*. If the Corporation shall at any time merge or consolidate with or into another corporation (other than where the Corporation is the surviving corporation and there is no reclassification or change in the Common Stock into which the Shares may be converted), then, as a part of such merger or consolidation, provisions shall be made to assure that the Holders shall thereafter be entitled to receive, upon conversion of the Shares, the kind and amount of shares of stock and other securities or property of the Corporation or the successor corporation resulting from such merger or consolidation, or such successor corporation's or the Corporation's parent, that the holders of that number of shares of Common Stock (or other securities) into which the Shares shall be convertible immediately prior to such merger or consolidation would be entitled to receive in such merger or consolidation. In every such case, appropriate adjustment shall be made in the application of the provision of this <u>Section 4.4(iii)</u> with respect to the rights of the Holders after the merger or consolidation to the end that the provisions of this <u>Section 4.4(iii)</u> (including adjustment of the Measurement Price then in effect and the kind and amount of shares or other property into which the Shares may be converted) and the other terms set forth herein shall be applicable after that event, as nearly equivalent as may be practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Deemed Issue of Additional Shares of Common Stock*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Corporation at any time or from time to time after the Issuance Date shall issue any Options or Convertible Securities (excluding Options or Convertible Securities which are themselves Exempted Securities) or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the Measurement Price pursuant to the terms of <u>Section 4.4(v)</u>, are revised as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security pursuant to which an adjustment has already been made under this <u>Section 4.4(iv)(b)</u>) to provide for either (1) any increase or decrease in the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security or (2) any increase or decrease in the consideration payable to the Corporation upon such exercise, conversion and/or exchange, then, effective upon such increase or decrease becoming effective, the Measurement Price computed upon the original issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such Measurement Price as would have been obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible Security. Notwithstanding the foregoing, no readjustment pursuant to this <u>Section 4.4(iv)(b)</u> shall have the effect of increasing the Measurement Price to an amount which exceeds the lower of (i) the Measurement Price in effect immediately prior to the original adjustment made as a result of the issuance of such Option or Convertible Security or (ii) the Measurement Price that would have resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment 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;(c) If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted Securities), the issuance of which did not result in an adjustment to the Measurement Price pursuant to the terms of <u>Section 4.4(v)</u> (either because the consideration per share (determined pursuant to <u>Section 4.4(vi)</u>) of the Additional Shares of Common Stock subject thereto was equal to or greater than the Measurement Price thereof, or because such Option or Convertible Security was issued before the Issuance Date), are revised after the Issuance Date as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security pursuant to which an adjustment has already been made under this <u>Section 4.4(iv)(c)</u>) to provide for either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or (2) any decrease in the consideration payable to the Corporation upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto (determined in the manner provided in <u>Section 4.4(iv)(b)</u>) shall be deemed to have been issued effective upon such increase or decrease becoming 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the Measurement Price pursuant to the terms of <u>Section 4.4(v)</u>, the Measurement Price shall be readjusted to such Measurement Price as would have obtained had such Option or Convertible Security (or portion thereof) never been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, is calculable at the time such Option or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any adjustment to the Measurement Price provided for in this <u>Section 4.4(iv)</u> shall be effected at the time of such issuance or amendment based on such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent adjustments shall be treated as provided in subsections (b) and (c) of this <u>Section 4.4(iv)</u>). If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or Convertible Security is issued or amended, any adjustment to the Measurement Price that would result under the terms of this <u>Section 4.4(iv)</u> at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount of consideration is first calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment to the Measurement Price that such issuance or amendment took place at the time such calculation can first be made. In the event an Option or Convertible Security contains alternative conversion terms, such as a cap on the valuation of the Corporation at which such conversion will be effected, or circumstances where the Option or Convertible Security may be repaid in lieu of conversion, then the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of such Option or Convertible Security shall be deemed not calculable until such time as the applicable conversion terms are determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Adjustment of Measurement Price Upon Issuance of Additional Shares of Common Stock*. In the event the Corporation shall at any time after the Issuance Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to <u>Section 4.4(iv)</u>), without consideration or for a consideration per share less than the Measurement Price per share of Common Stock immediately prior to such issuance or deemed issuance, then the Measurement Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest one-hundredth of a cent) determined in accordance with the following formula:

MP<sub>2</sub> = MP<sub>1</sub>\* (A + B) / (A + C).

For purposes of the foregoing formula, the following definitions shall apply:

"<u>MP<sub>2</sub></u>" shall mean the Measurement Price in effect immediately after such issuance or deemed issuance of Additional Shares of Common Stock.

"<u>MP<sub>1</sub></u>" shall mean the Measurement Price in effect immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock;

"<u>A</u>" shall mean the number of shares of Common Stock outstanding immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock (treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately prior to such issuance or deemed issuance or upon conversion or exchange of Convertible Securities (including the Preferred Stock into Common Stock) outstanding (assuming exercise of any outstanding Options therefor) immediately prior to such issue);

"<u>B</u>" shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been issued or deemed issued at a price per share equal to the Measurement Price per share of Common Stock immediately prior to such issuance or deemed issuance; and

"<u>C</u>" shall mean the number of such Additional Shares of Common Stock issued in such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *Determination of Consideration*. For purposes of this Certificate of Designation, the consideration received by the Corporation for the issuance or deemed issuance of any Additional Shares of Common Stock shall be computed as follows: (i) such consideration shall: (A) insofar as it consists of cash, be computed at the aggregate amount of cash received by the Corporation, excluding amounts paid or payable for accrued interest; (B) insofar as it consists of property other than cash, be computed at the Fair Market Value thereof at the time of such issue; and (C) in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Corporation for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (A) and (B) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) *Options and Convertible Securities*. The consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to <u>Section 4.4(iv)</u>, relating to Options and Convertible Securities, shall be determined by dividing: (i) the total amount, if any, received or receivable by the Corporation as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Corporation upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by (ii) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible 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;(viii) *Multiple Closing Dates*. In the event the Corporation shall issue on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to the Measurement Price pursuant to the terms of <u>Section 4.4(v)</u>, and such issuance dates occur within a period of no more than 180 days from the first such issuance to the final such issuance, then, upon the final such issuance, the Measurement Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any additional adjustments as a result of any such subsequent issuances within such period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) *Conversion Event Delay*. Beginning on September 15, 2026, and on the 15th day of each subsequent calendar month, the Measurement Price (taking into account any adjustments pursuant to this <u>Section 4.4(ix)</u>) will be reduced by an amount equal to $0.53 (each such reduction, a "<u>Monthly Reduction Amount</u>"); <u>provided</u>, that the Monthly Reduction Amount shall be adjusted proportionately to take into account any adjustments to the Measurement Price pursuant to <u>Section 4.4</u> (other than any adjustment pursuant to <u>Section 4.4(iv)</u>, <u>Section 4.4(v)</u> or this <u>Section 4.4(ix)</u>); <u>provided</u>, <u>further</u>, that in no event shall the Measurement Price be reduced pursuant to this <u>Section 4.4(ix)</u> by an amount, in aggregate, in excess of the Monthly Reduction Amount multiplied by six; <u>provided</u>, <u>further</u>, that solely to the extent a Conversion Event occurs prior to November 15, 2026 (the "<u>Waiver Date"</u>), the Holders shall be deemed to have waived any and all Monthly Reduction Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. <u>Notices</u>. Promptly upon any adjustment of the Measurement Price, the Corporation shall give written notice thereof to all Holders, setting forth in reasonable detail and certifying the calculation of such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. <u>Certain Determinations</u>. For purposes of any computation of any adjustment required under this <u>Section 4</u>: (i) subject to <u>Section 4.4(viii)</u>, adjustments shall be made successively whenever any event giving rise to such an adjustment shall occur; (ii) except as provided herein, if any event occurs that would trigger an adjustment to the Measurement Price pursuant to this <u>Section 4</u> under more than one subsection hereof, such event, to the extent fully taken into account in a single adjustment, shall not result in multiple adjustments hereunder; (iii) all adjustments to the Measurement Price pursuant to this <u>Section 4</u> shall be calculated to the nearest 1/100th of a U.S. Dollar; and (iv) no adjustment to the Measurement Price shall be made if Holders may participate in the transaction that would otherwise give rise to an adjustment, as a result of holding the Series A Preferred Stock, without having to convert the Series A Preferred Stock, as if they held the full number of shares of Common Stock into which a share of the Series A Preferred Stock may then be converted.

Section 5. <u>Mandatory Redemption</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;5.1. In the event that any Shares remain outstanding as of the Maturity Date (excluding for this purpose any Share with respect to which a Maturity Conversion Right is exercised), the Corporation shall redeem all (but not fewer than all) then outstanding Shares (excluding any Share with respect to which a Maturity Conversion Right is exercised) at the Mandatory Redemption Price per Share in cash on the Maturity Date (such redemption, a "<u>Mandatory Redemption</u>"), to be paid out of funds legally available to pay the Mandatory Redemption Price. In the event the funds legally available are insufficient to pay the aggregate Mandatory Redemption Price in full, the Corporation shall pay the Mandatory Redemption Price to the fullest extent possible, using all funds legally available to pay the Mandatory Redemption Price, to the Holders on a pro rata basis. For the avoidance of doubt, no funds shall be paid to the holders of Junior Securities (including Common Stock), in their capacities as holders of Junior Securities, whether by means of a dividend, distribution redemption, repurchase or otherwise, unless and until the aggregate Mandatory Redemption Price has been paid in full in cash. Unless the Corporation defaults in making a payment in connection with a Mandatory Redemption, the Shares called for redemption shall cease to accumulate cumulative Cash Dividends as of the Maturity 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;5.2. The Corporation shall deliver written notice of the anticipated Mandatory Redemption (a "<u>Mandatory Redemption Notice</u>") to each Holder not less than twenty (20) Business Days in advance of the Maturity Date. A Mandatory Redemption Notice shall indicate (i) the number of Shares held by such Holder as of the date of Mandatory Redemption Notice, (ii) the Maturity Date, and (iii) the estimated Mandatory Redemption Price and Maturity Conversion Rate as of the Maturity Date. If, on the Maturity Date, any applicable law or Order governing redemptions or distributions to stockholders prohibits the Corporation from redeeming all Shares (the Corporation's assertion of such prohibition shall be made in good faith by the Board of Directors after consultation with outside counsel), the Corporation shall ratably redeem the maximum number of Shares that it may redeem consistent with such law or Order and shall redeem the remaining Shares as soon as it may lawfully do so under such law or Order. In connection with any Mandatory Redemption, the Certificates (if any) representing the Shares to be redeemed shall be surrendered at the principal office 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. All rights with respect to the Shares redeemed pursuant to <u>Section 5.1</u> will terminate upon the Mandatory Redemption Price in respect of such shares being paid to the fullest extent possible using legally available funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. The Corporation shall have no right to redeem any Shares at its option.

Section 6. <u>Registration of 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;(a) The Corporation shall keep at its principal office a register for the registration of Series A Preferred Stock. Upon the surrender of any Certificate at such place, the Corporation shall, at the request of the record Holder of such Certificate, execute and deliver (at the Corporation's expense) a new Certificate in exchange therefor representing in the aggregate the number of Shares represented by the surrendered Certificate. Each such new Certificate shall be registered in such name and shall represent such number of Shares as is requested by the Holder of the surrendered Certificate and shall be substantially identical in form to the surrendered Certificate, and dividends shall accrue on the Series A Preferred Stock represented by such new Certificate from the date on which dividends have been fully paid on such Series A Preferred Stock represented by the surrendered Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Shares are subject only to transfer restrictions as required by applicable securities laws and any Securities Purchase Agreement dated as of June 26, 2026 between the Company and the initial purchaser of the Shares and any transfer restrictions in the Certificate of Incorporation or the Bylaws shall not apply to the Shares. The Certificates or book-entry statements evidencing the Series A Preferred Stock shall bear the following legend:

**THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER SUCH SECURITIES NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF ANY SECURITY EVIDENCED HEREBY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING SUCH NOTE IN AN "OFFSHORE TRANSACTION" PURSUANT TO RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS an "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, (2) AGREES THAT IT WILL NOT, PRIOR TO THE DATE WHICH IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY PREDECESSOR OF SUCH SECURITY) OR THE LAST DAY ON WHICH WE OR ANY OF OUR AFFILIATES WERE THE OWNERS OF SUCH SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) (THE "RESALE RESTRICTION TERMINATION DATE"), OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM SUCH SECURITY IS TRANSFERRED PRIOR TO THE RESALE RESTRICTION TERMINATION DATE A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND, SUBJECT TO THE ISSUER'S AND ANY TRANSFER AGENT'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REASONABLY REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER SATISFACTORY INFORMATION. THIS LEGEND WILL BE REMOVED AS TO ANY SECURITY EVIDENCED HEREBY IN ANY CASE AT ANY TIME AFTER THE RESALE RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.**

Section 7. <u>Replacement</u>.

Upon receipt of evidence reasonably satisfactory to the Corporation (an affidavit of the registered Holder shall be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any Certificate evidencing Shares, and in the case of any such loss, theft or destruction, upon receipt of indemnity reasonably satisfactory to the Corporation, or, in the case of any such mutilation upon surrender of such Certificate, the Corporation shall (at its expense) execute and deliver in lieu of such Certificate a new certificate of like kind representing the number of Shares of such class represented by such lost, stolen, destroyed or mutilated Certificate and dated the date of such lost, stolen, destroyed or mutilated Certificate, and dividends shall accrue on the Series A Preferred Stock represented by such new Certificate from the date to which dividends have been fully paid on such lost, stolen, destroyed or mutilated Certificate.

Section 8. <u>Definitions</u>. As used in this Certificate of Designation, the following capitalized terms shall have the following meanings:

"<u>Additional Shares of Common Stock</u>" shall mean all shares of Common Stock issued (or, pursuant to <u>Section 4.4(iv)</u>, deemed to be issued) by the Corporation after the Issuance Date, other than: (a) shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, recapitalization or other distribution on shares of Common Stock that is covered by <u>Sections 4.4(i)</u>, <u>(ii)</u>, or <u>(iii)</u>; (b) shares of Common Stock, Options or Convertible Securities issued to employees or directors of, or consultants or advisors to, the Corporation or any of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors of the Corporation prior to the date hereof; (c) shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon the conversion or exchange of Convertible Securities, in each case, provided that such issuance is pursuant to the terms of an Option or Convertible Security that is issued and outstanding prior to the Issuance Date; (d) shares of Common Stock, Options or Convertible Securities issued to banks or other financial institutions pursuant to a debt financing transaction; and (e) shares of Common Stock, Options or Convertible Securities issued as acquisition consideration pursuant to the acquisition of another corporation by the Corporation by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement (clauses (a) – (e) collectively, "<u>Exempted Securities</u>").

"<u>Affiliate</u>" means, with respect to any Person, any Person directly or indirectly through one or more intermediaries, Controlling, Controlled by or under common Control with such Person.

"<u>Base Conversion Rate</u>" means, with respect to each Share, at any time of determination, the number obtained by dividing (i) the Stated Value of such Share by (ii) the Measurement Price.

"<u>Book Entry Share</u>" means a Share evidenced in book entry form.

"<u>Business Day</u>" means any day, other than a Saturday, Sunday or legal holiday, on which commercial banks in New York, New York, U.S.A. are open for the general transaction of business.

"<u>Certificate</u>" means, with respect to any Share, a certificate representing such Share.

"<u>Common Stock</u>" means the Class A common stock, par value $0.00001, of the Corporation.

"<u>Control</u>" (including the correlative terms "<u>Controlled by</u>" and "<u>Controlling</u>") means the possession, directly or indirectly, of the power to direct, or to cause the direction of, the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

"<u>Conversion Event</u>" means any (i) IPO, (ii) Public Listing or (iii) Sale Event.

"<u>Conversion Rate</u>" means, with respect to each Share, at any time of determination, the Base Conversion Rate or the Maturity Conversion Rate, as applicable.

"<u>Convertible Securities</u>" means any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding Options.

"<u>Dividend Payment Date</u>" means the last day of each Fiscal Quarter of the Corporation; <u>provided</u>, that if any Dividend Payment Date is not a Business Day, the Dividend Payment Date will be the immediately following Business Day.

"<u>Dividend Period</u>" means the period commencing on the day immediately following a Dividend Payment Date and ending on, and including, the next Dividend Payment Date; <u>provided</u>, that the initial Dividend Period under this Certificate of Designation shall commence on and include the Cash Dividend Commencement Date and shall end on, and include, the last day of the Fiscal Quarter immediately following the Cash Dividend Commencement Date.

"<u>Dividend Rate</u>" means a rate per annum equal to (i) initially, 12%, plus (ii) fifty (50) basis points (the "<u>Step-Up</u>") for each full calendar year that has elapsed since the Cash Dividend Commencement Date, it being understood that any additional interest arising from an incremental Step-Up shall first be added on the first day of the second Fiscal Quarter of the calendar year in which such Step-Up begins to apply.

"<u>Equity Interests</u>" means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including partnership interests and membership interests, and any and all warrants, rights or options to purchase or other arrangements or rights to acquire any of the foregoing, but excluding for the avoidance of doubt any indebtedness convertible into or exchangeable for any of the foregoing.

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

"<u>Fair Market Value</u>" means, with respect to any share or fractional share of capital stock of the Corporation or any assets or property, the fair market value thereof as determined reasonably and in good faith by the Board of Directors; <u>provided</u>, that, if the Holders of not less than 67% of the outstanding Shares (the "<u>Requesting Holders</u>") disagree with the Board of Director's determination of fair market value by written notice delivered to the Corporation within ten (10) days after the determination thereof by the Board of Directors is communicated to the Holders affected thereby, which notice specifies the Requesting Holders' determination of such fair market value, then a nationally recognized financial advisory firm mutually selected by the Requesting Holders and the Corporation (the "<u>Independent Financial Expert</u>") shall determine such fair market value, and such Independent Financial Expert's determination of such fair market value shall be final, binding and conclusive on the Corporation and the Holders, with any and all costs and fees of such Independent Financial Expert to be borne by the Corporation.

"<u>Fiscal Quarter</u>" means a fiscal quarter of any Fiscal Year.

"<u>Fiscal Year</u>" means the fiscal year of the Corporation ending December 31 of each calendar year.

"<u>Holder</u>" means a holder of shares of Series A Preferred Stock as reflected in the stock books of the Corporation.

"<u>Initial Share Price</u>" means 53.0000 U.S. Dollars ($53.0000).

"<u>IPO</u>" means the first firm underwritten public offering of the Corporation, any Subsidiary of the Corporation or any parent entity of the Corporation, in each case, pursuant to an effective registration statement under the Securities Act of 1933, as amended (other than on Forms S-4, S-8 or successors to such forms), covering the offer and sale of capital stock of such entity, following which equity securities of such entity will be listed for trading or quoted on either the New York Stock Exchange or the NASDAQ Global Select Market (each, an "<u>Exchange</u>").

"<u>Issuance Date</u>" means June 26, 2026.

"<u>Junior Securities</u>" means any capital stock or other equity securities of the Corporation; <u>provided</u>, that the term "Junior Securities" shall not include (i) the Series A Preferred Stock or (ii) any other class or series of the Corporation's capital stock which is senior to or *pari passu* with the Series A Preferred Stock with respect to preference and priority on dividends, redemptions or liquidations.

"<u>Mandatory Redemption Price</u>" means, with respect to each Share, at any time of determination, an amount in cash equal to the greater of (i) the Stated Value of such Share or (ii) the amount which such Holder would be entitled to receive pursuant to <u>Section 2(ii)</u> if a liquidation, dissolution or winding up of the Corporation occurred immediately prior to the Mandatory Redemption; <u>provided</u>, that in no event shall the Mandatory Redemption Price be an amount less than the Minimum Return.

"<u>Maturity Conversion Rate</u>" means, with respect to each Share, a fraction, (a) the numerator of which is an amount equal to the greater of (i) the Stated Value of such Share and (ii) the product of (A) the Initial Share Price multiplied by (B) 1.5, and (b) the denominator of which is the lesser of (i) the Measurement Price and (ii) the Fair Market Value of a share of Common Stock.

"<u>Measurement Price</u>" means the Initial Share Price (as adjusted pursuant to the terms hereof).

"<u>Minimum Return</u>" means, with respect to each Share, the amount of cash proceeds that would have been received with respect to such Share in connection with a liquidation or Mandatory Redemption, as applicable (taken together with any cash dividends (including Cash Dividends) or cash distributions received with respect to such Share prior to such liquidation or Mandatory Redemption, as applicable), that would result in such Share achieving a MOIC of at least 1.5x.

"<u>MOIC</u>" means, with respect to each Share, at any time of determination, a fraction (expressed as a decimal), the numerator of which is the sum of all cash dividends (including Cash Dividends), cash distributions or other cash proceeds paid on, or with respect to, such Share, and the denominator of which is the Initial Share Price.

"<u>Option</u>" means rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

"<u>Order</u>" means any judgment, order, award, injunction, writ, permit, license or decree of any governmental entity or arbitrator of applicable jurisdiction.

"<u>Person</u>" means an individual, firm, corporation (including any non-profit corporation), partnership, limited liability company, joint venture, association, trust, governmental entity or other entity or organization.

"<u>Public Listing</u>" means (i) the direct listing of the capital stock of the Corporation, any Subsidiary of the Corporation or any parent entity of the Corporation on an Exchange (a "<u>Direct Listing"</u>) or (ii) any transaction or series of related transactions, in each case, that is duly approved by the Board of Directors, whereby the Corporation or any of its Subsidiaries (a) merges, directly or indirectly (whether by a direct or reverse triangular merger or otherwise), with a special purpose acquisition company (or similar Person) listed on an Exchange (a "<u>SPAC</u>") or a Subsidiary thereof, or (b) is acquired, directly or indirectly, by a SPAC or a Subsidiary thereof (a "<u>SPAC Transaction</u>").

"<u>Sale Event</u>" means (a) a merger or consolidation in which (i) the Corporation is a constituent party, or (ii) a Subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such merger or consolidation, except in the case of either clause (i) or (ii) any such merger or consolidation involving the Corporation or a Subsidiary of the Corporation in which the shares of capital stock of the Corporation outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock which represent, immediately following such merger or consolidation, more than 50% by voting power of the capital stock of (A) the surviving or resulting entity or (B) if the surviving or resulting entity is a wholly owned Subsidiary of another entity immediately following such merger or consolidation, the parent entity of such surviving or resulting entity; (b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Corporation or a Subsidiary of the Corporation of all or substantially all the assets of the Corporation and its Subsidiaries taken as a whole (except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned Subsidiary of the Corporation); or (c) the sale or transfer, in a single transaction or series of related transactions, by the stockholders of the Corporation of more than 50% by voting power of the then-outstanding capital stock of the Corporation to any Person or group of affiliated Persons.

"<u>Stated Value</u>" means, with respect to any Share on any given date, the sum of (i) the Initial Share Price plus (ii) all accrued but unpaid dividends (including Cash Dividends) payable to the Holders pursuant to <u>Section 1.3</u>.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, partnership, joint venture or other legal entity as to which such Person (either alone or through or together with any other subsidiary), (a) owns, directly or indirectly, more than fifty percent (50%) of the stock or other equity interests, (b) has the power to elect a majority of the board of directors or similar governing body or (c) has the power to direct the business and policies.

"<u>Third Party</u>" means any Person other than (a) the Corporation, (b) any Subsidiary of the Corporation and (c) any stockholder of the Corporation or any Affiliate of any such stockholder.

Section 9. <u>Amendment and Waiver</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;9.1. Subject to <u>Section 9.2</u>, no provision of this Certificate of Designation may be amended, modified or waived except by an instrument in writing executed by the Corporation and approved by the Holders of not less than a majority of the Series A Preferred Stock outstanding at the time such action is taken, voting separately as a single class with one vote per Share, in person or by proxy, either in writing without a meeting or at an annual or a special meeting of such Holders, and any other applicable stockholder approval requirements required by law, and any such written amendment, modification or waiver will be binding upon the Corporation and each holder of Series A Preferred Stock; <u>provided</u> that no amendment, modification, alteration, repeal or waiver of the terms or relative priorities of the Series A Preferred Stock may be accomplished by the merger, consolidation or other transaction of the Corporation with another corporation or entity (other than a Conversion Event) unless the Corporation has obtained the prior written consent of the Holders of the applicable percentage of the Series A Preferred Stock then outstanding, voting separately as a single class with one vote per Share, in person or by proxy, either in writing without a meeting or at an annual or a special meeting of such Holders, and any other applicable stockholder approval requirements required 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;9.2. Notwithstanding any other provision herein to the contrary, any amendment that would have any of the following effects shall require the approval of the Holders of not less than 67% of the Series A Preferred Stock outstanding at the time such action is taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) reduce the Liquidation Value, Mandatory Redemption Price or Dividend Rate of the Series A Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) adversely affect the right to convert the Series A Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) adversely affect the priority of the Series A Preferred Stock relative to other classes of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reduce the percentage of outstanding Series A Preferred Stock necessary to amend the terms thereof or to grant waivers; 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;(v) amend, modify or waive any provision of <u>Section 1.3</u>, <u>Section 3.4</u>, <u>Section 5</u> or this <u>Section 9.2</u>, or any definition used therein.

Section 10. <u>Notices</u>.

Except as otherwise expressly provided hereunder, all notices referred to herein shall be in writing and shall be delivered by registered or certified mail, return receipt requested and postage prepaid, or by reputable overnight courier service, charges prepaid, and shall be deemed to have been given five business days after the date when so mailed or sent (i) to the Corporation, at its principal executive offices, and (ii) to any stockholder, at such holder's address as it appears in the stock records of the Corporation (unless otherwise indicated by any 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;10.1. <u>Notice by Electronic Transmission</u>. Without limiting the manner by which notice otherwise may be given effectively to Holders pursuant to the DGCL, the Certificate of Incorporation, or this Certificate of Designation, any notice to Holders given by the Corporation under any provision of the DGCL, the Certificate of Incorporation or this Certificate of Designation shall be effective if given by a form of electronic transmission. Any such consent shall be revocable by the Holder at any time by written notice to the Corporation. Any such consent shall be deemed revoked if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation is unable to deliver by electronic transmission two consecutive notices given by the Corporation in accordance with such consent; 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;(ii) 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.

However, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action.

Any notice given pursuant to the preceding paragraph shall be deemed given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if by electronic mail, when directed to a Holder's electronic mail address as shown on the Corporation's 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if by a posting on an electronic network together with separate notice to the Holder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if by any other form of electronic transmission, when directed to the Holder.

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 by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

An "<u>electronic transmission</u>" means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

Section 11. <u>Severability</u>.

Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, then such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable if a period of time were extended or shortened or a particular percentage were increased or decreased, then such court may make such change as shall be necessary to render the provision in question effective and valid under applicable law.

Section 12. <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. The Holders and the Corporation agree not to treat the Series A Preferred Stock as "preferred stock" within the meaning of Section 305 of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>") and U.S. Treasury Regulations Section 1.305-5 for U.S. federal income tax and withholding tax purposes and shall not take any position inconsistent with such treatment, including on any applicable U.S. federal income or state tax return or in connection with any audit or other proceeding, except as required by a final "determination" within the meaning of Section 1313(a) 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;12.2. The Corporation shall be entitled to deduct and withhold from the amounts deliverable pursuant to each Holder's Series A Preferred Stock such amounts, if any, as are required to be deducted and withheld under the Code or any other applicable tax law, including taxes imposed due to the failure of the applicable recipient of such payment to comply with FATCA. To the extent that amounts are so deducted and withheld and duly paid over to the appropriate tax authority, such withheld amounts shall be treated for all purposes as having been delivered to the person in respect of whom such deduction and withholding was made. Prior to the date of any such payment, each Holder shall deliver to the Corporation or its paying agent a duly executed, valid, accurate and properly completed Internal Revenue Service Form W-9 or appropriate version of Internal Revenue Service Form W-8, as applicable, and the Corporation shall be entitled to withhold at the applicable statutory maximum in the absence of such documentation. The Corporation shall be entitled to reduce amounts otherwise payable in respect of such Series A Preferred Stock (including any dividend) or any other amounts otherwise payable by the Corporation to the relevant Holder by the amount of any such taxes. With respect to any Holder, prior to withholding any amounts pursuant to this Section 12.2, the Corporation shall use commercially reasonable efforts to notify such Holder, and the Corporation and such Holder shall cooperate in good faith to reduce or eliminate any such withholding. The Corporation shall not be obligated to pay any additional amounts to the Holders or beneficial owners of the Series A Preferred Stock as a result of any withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges. "<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Certificate of Designation (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among governmental authorities and implementing such Sections of the Code.

Section 13. <u>Headings</u>.

The headings of the various sections and subsections hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

\* \* \* \*

IN WITNESS WHEREOF, Ionic Digital Inc. has caused this Certificate of Designation of Series A Convertible Preferred Stock to be duly executed by the undersigned duly authorized officer as of this 26nd day of June, 2026.

---

| | |
|:---|:---|
| <br> **IONIC DIGITAL INC.** | <br> **IONIC DIGITAL INC.** |
| By: | /s/ Andrew Stewart |
| Name: | Andrew Stewart |
| Title: | Chief Executive Officer |

---

## Exhibit 4.1

**Exhibit 4.1**

**THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT.**

**IONIC DIGITAL INC.**

**WARRANT TO PURCHASE COMMON STOCK**

**This WARRANT TO PURCHASE COMMON STOCK** (this "***Warrant***") certifies that, for value received, [_________] or its successors or permitted assigns (the "***Holder***"), is entitled to subscribe for and purchase at the Exercise Price (as defined below) from Ionic Digital Inc., a Delaware corporation (the "***Company***"), up to the number of shares of Common Stock equal to the Warrant Share Amount (as defined below), subject to the provisions and upon the terms and conditions set forth in this Warrant. This Warrant will terminate on the date that is five (5) years after the date hereof (the "***Expiration Date***" and the period from the date hereof to the Expiration Date, the "***Exercise Period***"). This Warrant is issued in connection with that certain Securities Purchase Agreement, dated [____], by and between the Company and the Holder (the "***Purchase Agreement***"). Capitalized terms not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Definitions.** As used herein, the following terms shall have the following respective meanings:

&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)** "***Black Scholes Adjusted Exercise Price***" means, if the Black Scholes Value Per Share is greater than the Current Value, (i) the then-current Exercise Price *minus* (ii) the difference between (x) the Black Scholes Value Per Share and (y) the Current Value. If the Black Scholes Value Per Share is equal to or less than the Current Value, there shall be no Black Scholes Adjusted 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;**(b)** "***Black Scholes Value***" means the value of the unexercised portion of this Warrant remaining on the Sale Transaction Closing, which value shall be determined by a nationally recognized financial advisory firm mutually selected by the Anchor Investors and reasonably acceptable to the Company (the "***Independent Financial Expert***"), using the Black Scholes Option Pricing Model for a "call" option, as obtained from the "OVME" function on Bloomberg, L.P., subject to the following assumptions: (i) an underlying price per share of Common Stock equal to the aggregate value of the consideration received in such Sale Event per share of Common Stock; (ii) a strike price equal to the Exercise Price in effect on the Sale Transaction Closing Date; (iii) a risk-free interest rate corresponding to the interpolated rate on the United States Treasury securities with a maturity closest to the remaining term of the Warrant as of the date of consummation of the applicable Sale Event; (iv) a zero cost of borrow; (v) an expected volatility equal to (x) the extent that, as of the trading day immediately preceding any public announcement of the applicable Sale Event, any option to purchase Common Stock listed or quoted for trading, the implied volatility on the option to purchase Common Stock, as obtained using the OMON function on Bloomberg, L.P. (including by reference to the "ask" column), that has (A) a maturity closest to 90 days from the date of the applicable Sale Event and (B) a strike price closest to the Exercise Price, or (y) otherwise, 100%.

&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)** "***Black Scholes Value Per Share***" means the quotient of (i) the Black Scholes Value *divided by* (ii) the number of Exercise Shares for which this Warrant is then-exercisable (without giving effect to any reduction due to cashless 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;**(d)** "***Current Value***" means (i) the per share price (expressed as a dollar value) payable in respect of each share of Common Stock in connection with such Sale Event (including, for the avoidance of doubt, the Fair Market Value of any non-cash consideration being offered per share of Common Stock in the applicable Sale Event) *minus* (ii) the then-current 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;**(e)** "***Exercise Price***" shall mean $[●]<sup>1</sup> per share (subject to the adjustments provided in <u>Section 5</u> hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** "***Exercise Shares***" shall mean the shares of Common Stock issuable upon exercise of this Warrant, subject to adjustment pursuant to the terms herein, including but not limited to adjustment pursuant to <u>Section 5</u> 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;**(g)** "***Fair Market Value***" shall mean, as of any date of determination, (i) with respect to the Exercise Shares, the per share fair market value of an Exercise Share determined as follows: (x) if the Exercise Shares are then listed for trading on a national securities exchange, based on the arithmetic average for the last ten (10) consecutive trading days VWAP immediately preceding the date of measurement; or (y) if the Exercise Shares are not so listed for trading on the NYSE, Nasdaq or a U.S. national or regional securities exchange, the average of the reported closing bid and asked prices of such security on such dates in the over-the-counter market or a comparable system as shown by a system of automated dissemination of quotations of securities prices then in common use comparable to the National Association of Securities Dealers, Inc. Automated Quotations System; provided, however, that if there is otherwise no established trading market for an Exercise Share, then "Fair Market Value" means the value of such Exercise Share as determined reasonably and in good faith by the Board of Directors; provided, that, if the Anchor Investors (the "***Requesting Holders***") disagree with the Board of Director's determination of fair market value by written notice delivered to the Company within thirty (30) days after the determination thereof by the Board of Directors is communicated to the Holder affected thereby, which notice specifies the Requesting Holders' determination of such fair market value, then the Independent Financial Expert shall determine such fair market value, and such Independent Financial Expert's determination of such fair market value shall be final, binding and conclusive on the Company and the Holders, with any and all costs and fees of such Independent Financial Expert to be borne by the Company and (ii) with respect to any other asset or property, the fair market value of such asset or property, as determined reasonably and in good faith by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** "***Warrant Share Amount***" shall mean [●]<sup>2</sup> shares of Common Stock issuable upon exercise of this Warrant at the Exercise Price (subject to the adjustments provided in <u>Section 5</u> hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Exercise of Warrant; Vesting.** 

&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** This Warrant may be exercised in whole or in part at any time and from time to time during the Exercise Period, by delivery of the following to the Company at its principal address (or at such other address as it may designate by notice in writing to the Holder):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** An executed Notice of Exercise in the form attached hereto as <u>Exhibit A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Payment of the Exercise Price in cash (or by appropriate instruction, in the case of a cashless exercise pursuant to <u>Section 17</u>); 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;**(c)** This Warrant.

<sup>1</sup> <u>NTD</u>: $63.60 for Tranche 1, $74.20 for Tranche 2 and $87.45 for Tranche 3.

<sup>2</sup> <u>NTD</u>: Aggregate of 1,006,289 for Tranche 1, 1,006,289 for Tranche 2 and 1,006,289 for Tranche 3, in each case, to be allocated pro rata to the Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** Upon exercise, a certificate or certificates (including in electronic form) or book-entry statement(s) for the Exercise Shares so purchased, registered in the name of the Holder, shall be issued and delivered to the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised (but in no event later than five (5) Business Days after the Exercise Date (as defined below)). In the event this Warrant is not exercised in full, the Company may issue and deliver to the Holder a new Warrant or Warrants of like tenor (but not less than the tenor remaining under this Warrant), in the name of the Holder, if the Holder so designates, exercisable for the number of Exercise Shares remaining unexercised and otherwise on the same terms and conditions as set forth in this Warrant. The person or entity in whose name any certificate or certificates or book-entry statement(s) for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date (the "***Exercise Date***") on which this Warrant was surrendered and payment of the Exercise Price was made in accordance with <u>Section 2.3</u>, irrespective of the date of delivery of such certificate or certificates or book-entry statement(s), except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open.

&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** The Company shall not effect any exercise of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to <u>Section 2</u> or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates), would, when aggregated with all other shares of Common Stock beneficially owned by such Holder at such time, beneficially own shares of Common Stock, in excess of the Beneficial Ownership Limitation (as defined below); <u>provided</u>, <u>however</u>, that (x) upon the Holder providing the Company with at least sixty-one (61) days' written notice at any time (the "***Waiver Election***") that such Holder wishes to waive this <u>Section 2.3</u> with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this <u>Section 2.3</u> shall be of no force or effect with regard to those shares of Common Stock referenced in the Waiver Election, (y) the Holder may, by written notice to the Company (a "***Lock-Down Election****"*), irrevocably elect that the Beneficial Ownership Limitation shall not be subject to increase or waiver for so long as such Holder or any of its Affiliates hold this Warrant, and (z) any Waiver Election or Lock-Down Election shall be personal to the Holder (and its Affiliates) and shall not be binding upon any transferee, assignee, or successor holder of this Warrant that is not an Affiliate of the Holder. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this <u>Section 2.3</u>, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this <u>Section 2.3</u> applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership Limitation. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership Limitation. For purposes of this <u>Section 2.3</u>, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company's most recent periodic or annual report filed with the SEC, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of the Holder, the Company shall within two (2) Business Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. As used in this Warrant, "<u>Beneficial Ownership Limitation</u>" means 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The provisions of this <u>Section 2.3</u> shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this <u>Section 2.3</u> to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. For the avoidance of doubt, this <u>Section 2.3</u> shall not restrict the number of shares of Common Stock which the Holder may receive or beneficially own in order to determine the amount of securities or other consideration that the Holder may receive in the event of a Sale Event as contemplated in <u>Section 17</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Covenants of the Company.** The Company covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens, charges and other encumbrances with respect to the issuance thereof. The Company further covenants and agrees that the Company will, at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of its Common Stock to provide for the exercise in full of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Common Stock shall not be sufficient to permit exercise of this Warrant in full, the Company will take any and all such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Representations of 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;**4.1 Acquisition of Warrant for Personal Account.** The Holder represents and warrants that it is acquiring this Warrant and the Exercise Shares solely for its account for investment and not with a view to or for sale or distribution of said Warrant or Exercise Shares or any part thereof. The Holder also represents that the entire legal and beneficial interests of this Warrant and Exercise Shares the Holder is acquiring under this Warrant is being acquired for, and will be held for, its account only.

&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 Securities Are Not Registered.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The Holder understands that this Warrant and the Exercise Shares have not been registered under the Securities Act, on the basis that no distribution or public offering of the stock of the Company has been effected. The Holder realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has a present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities in each case in a transaction that would require registration under the Securities Act. The Holder has no such present intention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Except as provided in the Registration Rights Agreement, the Holder recognizes that the Company has no obligation to register this Warrant or the Exercise Shares of the Company, or to comply with any exemption from such registration, other than as otherwise agreed by the Holder and 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;**(c)** The Holder is an "accredited investor" as defined in Regulation D promulgated 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;**4.3 Disposition of Warrant and Exercise 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)** The Holder further agrees not to make any disposition of all or any part of this Warrant or Exercise Shares in any event 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said 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;**(ii)** The Holder and the Company have otherwise agreed to the disposition of all or any part of this Warrant or Exercise Shares, including under the Registration Rights Agreement or a similar agreement (and pursuant to and in accordance with such agreement); 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;**(iii)** The Holder shall have notified the Company of the proposed disposition and such disposition will not require registration of such Warrant or Exercise Shares under the Securities Act or 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)** The Holder understands and agrees that all certificates evidencing the shares to be issued to the Holder may bear the following legends:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT.

THESE SECURITIES MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Adjustments.** For so long as this Warrant remains outstanding, the adjustments set forth in <u>Section 4.4(i)</u>, <u>(ii)</u> and <u>(iii)</u> of the Certificate of Designations shall apply *mutatis mutandis* to the Exercise Price (as if the Exercise Price was the Measurement Price (as defined in the Certificate of Designations)) and the Exercise Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Lock-Up / Transfer Restriction.** The Lock-Up Warrants may not be Transferred during the Lock-Up Period; provided, however, that during the Lock-Up Period, the Lock-Up Warrants may be Transferred to the Holder's Affiliates, so long as any such Affiliate agrees in a writing executed with the Company to be bound by the terms of the Lock-Up contained in the Purchase Agreement; provided, further, that during the Lock-Up Period, the Lock-Up Warrants shall be released from the Lock-Up pursuant to and in accordance with the terms of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Fractional Shares**. No fractional shares shall be issued upon the exercise of this Warrant (including as a consequence of any adjustment pursuant hereto). All Exercise Shares (including fractions) issuable upon exercise of this Warrant shall be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after such aggregation, the exercise of this Warrant would result in the issuance of a fractional share, the number of Exercise Shares to be issued shall be rounded up to the nearest whole share, and no cash payment or other consideration shall be made in respect of any such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **No Stockholder Rights.** Until the exercise of this Warrant and issuance and delivery of the Exercise Shares, this Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company (including, without limitation, any rights to receive notices or dividends of stockholders). The Holder shall not, by reason of the ownership or possession of a Warrant, have any right to receive any cash dividends, stock dividends, allotments or rights or other distributions paid, allotted, or distributed or distributable to the holders of Common Stock prior to, or for which the relevant record date preceded, the Exercise Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Transfer of Warrant.** Subject to the restrictions and covenants contained in <u>Sections 4.3</u> and <u>6</u> above and applicable securities laws, the Holder may transfer all or part of this Warrant to any transferee without the prior written consent of the Company. Any subsequent transferee shall agree in writing with the Company to be bound by all of the terms and conditions of this Warrant applicable to the Holder, and the Holder and any subsequent transferee shall have delivered (and at all times shall be eligible to deliver) to the Company a valid and duly executed IRS Form W-9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Lost, Stolen, Mutilated or Destroyed Warrant.** If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Amendments and Waivers**. Any term of this Warrant may be amended, waived or modified only with the written consent of the Company and the Holder. Any amendment, waiver or modification effected in accordance with this <u>Section 11</u> shall be binding upon the Holder, each future holder of this Warrant or the Exercise Shares and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Notices, etc.** All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, if not, then on the 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) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at the address listed on the signature page and to the Holder at the address listed on the signature page, or at such other address as the Company or the Holder may designate by ten (10) days advance written notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Acceptance.** Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **No Impairment.** The Company will not, by amendment of its organizational documents or through reorganization, consolidation, merger, dissolution, sale of assets or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be reasonably necessary or appropriate in order to protect the rights of the Holder of this Warrant against impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Governing Law.** This Warrant and all rights, obligations and liabilities hereunder shall be governed by the laws of the State of Delaware. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of the State of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Warrant, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Warrant except in the state courts of the State of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each party will bear its own costs in respect of any disputes arising under this Warrant. The prevailing party (as determined by a court of competent jurisdiction in a final, non-appealable order) shall be entitled to reasonable and documented attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS WARRANT, THE EXERCISE SHARES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS WARRANT, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Counterparts**. This Warrant may be executed in two or more counterparts, which may be delivered by electronic transmission (including delivery of facsimile copies of signatures via email in PDF or similar readily accessible format), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Sale Event.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.1** If the Holder has not exercised this Warrant in full prior to, and the fair market value of one Exercise Share (as defined in this <u>Section 17.1</u>) is greater than the applicable Exercise Price as of the consummation of a Sale Event (as defined in this <u>Section 17.1</u>), then the Holder may elect to exercise this Warrant, effective immediately prior to (and contingent upon the consummation of) such Sale Event, as follows (a "***Sale Event Election***"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** In lieu of exercising this Warrant by payment of cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise, in which event the Company shall issue to the Holder a number of Exercise Shares computed using the following formula:

X = Y (A-B)

Where

X = the number of Exercise Shares to be issued to the Holder in connection with an exercise of this Warrant in connection with such Sale Event;

Y = the number of Exercise Shares purchasable under this Warrant (or, if only a portion of this Warrant is being exercised, the portion of this Warrant being exercised) (at the date of such calculation);

A = the fair market value of one Exercise Share (at the date of such calculation); and

B = the lesser of (i) the Exercise Price (as adjusted to the date of such calculation) and (ii) the Black Scholes Adjusted Exercise Price.

As used in this <u>Section 17</u>, "fair market value" of an Exercise Share means the per share price (expressed as a dollar value) payable in respect of each share of Common Stock in connection with such Sale Event (including, for the avoidance of doubt, the fair market value of any non-cash consideration being offered per share of Common Stock in the applicable Sale Event).

As used in this <u>Section 17</u>, "***Sale Event***" shall have the meaning ascribed to such term in the Certificate of Designations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.2** Notwithstanding anything contained herein to the contrary, but subject to <u>Section 17.4</u>, if, in connection with a Sale Event, the Holder does not make a Sale Event Election, this Warrant shall remain outstanding and exercisable for the kind and amount of shares of stock and other securities or property of the Company or the successor corporation resulting from such Sale Event, or such successor corporation's or the Company's parent, that the holders of that number of shares of Common Stock (or other securities) would be entitled to receive in such Sale Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3** The Company shall, at its expense, deliver written notice relating to a Sale Event (a "***Sale Transaction Notice***") to the Holder at least ten (10) Business Days prior to the initial proposed closing date for the closing or consummation of such Sale Event (the "***Sale Transaction Closing***", and the actual date of the Sale Transaction Closing, the "***Sale Transaction Closing Date***"). The Sale Transaction Notice shall (i) describe the terms of the Sale Event in reasonable detail and (ii) specify the anticipated Sale Transaction Closing Date (which in no event may be earlier than the initial proposed Sale Transaction Closing Date used to calculate the ten (10) Business Day period referred to in the immediately prior sentence), and the Company shall not effect any Sale Event prior to the anticipated Sale Transaction Closing Date specified in the Sale Transaction Notice. Notwithstanding the foregoing, the failure by the Company to deliver any Sale Transaction Notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in the Sale Transaction 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;**17.4** Upon consummation of any Sale Event where the consideration therefor is paid or payable solely in cash (a "***Cash Sale Event***"), (a) the Company shall pay (or cause to be paid) to the Holder, with respect to each unexercised Warrant (or, if only a portion of any Warrant is unexercised, the portion of such Warrant that is unexercised) outstanding immediately prior to the closing of such Cash Sale Event, cash in an amount per Exercise Share equal to the greater of (i) the excess, if any, of the consideration (calculated on a per share of Common Stock basis (taking into account, for the avoidance of doubt, the Exercise Shares of each Warrant that would be exercisable in connection with such Cash Sale Transaction) and in the aggregate inclusive of any contingent, deferred or escrowed consideration) that is to be paid to the holders of Common Stock as of immediately prior to such closing or to the Company or any of its Subsidiaries (the "***Sale Price***") over the Exercise Price (as adjusted to the date of such calculation) and (ii) the Black Scholes Value Per Share; <u>provided</u> that the Holder shall not be entitled to receive any payment hereunder with respect to any portion of the Sale Price that is contingent, deferred or escrowed unless and until such amounts are actually paid to the holders of Common Stock or to the Company or its Subsidiaries, as applicable, and (b) all unexercised Warrants (or, if only a portion of any Warrant is unexercised, the portion of such Warrant that is unexercised) outstanding immediately prior to the closing of such Cash Sale Transaction shall automatically, and without any action on the part of the Holder, be cancelled and terminated for no consideration as of immediately prior to (and contingent upon the consummation of) such Sale Event, other than its obligations under this <u>Section 17.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Tax matters.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.1** The Company shall use commercially reasonable efforts to provide any information reasonably requested by the Holder and necessary to enable the Holder (or its direct or indirect equity owners) to comply with their U.S. federal income tax reporting obligations, including, but not limited to, a determination of the amount of the Company's current and accumulated earnings and profits in any taxable year where such determination is relevant to determining the amount (if any) of any distribution received by the Holder from the Company that is properly treated as a dividend for U.S. federal income tax purposes. Notwithstanding anything to the contrary in any agreements or documents related to the transactions contemplated by this Warrant, no such agreement or document shall require any Holder or any representative thereof to make available its or their tax returns to the Company or any person for any purposes including in connection with any proceeding or other dispute (whether between the parties or involving third persons). In connection with a Sale Event, if the Holder takes the position that a cashless exercise is a tax-free exchange, and such position is reasonable, the Company agrees not to take any position inconsistent with such treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.2** The Company shall be entitled to deduct and withhold from the amounts deliverable to the Holder pursuant to this Warrant such amounts, if any, as are required to be deducted and withheld under the Code or any other applicable tax law, including taxes imposed due to the failure of the applicable recipient of such payment to comply with FATCA. To the extent that amounts are so deducted and withheld and duly paid over to the appropriate tax authority, such withheld amounts shall be treated for all purposes as having been delivered to the person in respect of whom such deduction and withholding was made. Prior to the date of any such payment, each Holder shall deliver to the Company or its paying agent a duly executed, valid, accurate and properly completed Internal Revenue Service Form W-9 or appropriate version of Internal Revenue Service Form W-8, as applicable. If and to the extent the Company is required to pay (or otherwise becomes primarily liable for) any withholding taxes in respect of any deemed or constructive dividends or other distributions to the Holder pursuant to this Warrant, the Company shall be entitled to withhold and set off such amount against any subsequent amounts or securities deliverable to the Holder. Prior to withholding any amounts pursuant to this <u>Section 18</u>, the Company shall use commercially reasonable efforts to notify the Holder, and the Company and the Holder shall cooperate in good faith to reduce or eliminate any such withholding. However, until a duly executed, valid, accurate and properly completed Internal Revenue Service Form W-9 or appropriate version of Internal Revenue Service Form W-8, as applicable, has been delivered, the Company shall be entitled to deduct and withhold for taxes at the applicable maximum statutory rate. The Company shall not be obligated to pay any additional amounts to the Holder or beneficial owners of the Warrant as a result of any withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges. "<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Warrant (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among governmental authorities and implementing such Sections of the Code.

[*Remainder of Page Intentionally Left Blank*]

**In Witness Whereof**, the Company has caused this Warrant to be executed by its duly authorized officer as of the date set forth above.

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| |
|:---|
| **IONIC DIGITAL INC.** |
| By: |
| Name: |
| Title: |
| Address: |

---

Agreed and Accepted:

**HOLDER:**

**[__________]**

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| |
|:---|
| By: |
| Name: |
| Title: |
| Address: |
| E-mail: |

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**<u>EXHIBIT A</u>**

NOTICE OF EXERCISE

**TO: IONIC DIGITAL INC.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** The undersigned hereby elects to purchase ________ shares of Common Stock of Ionic Digital, Inc. (the "***Company***") pursuant to the terms of the attached Warrant, and in payment of the Exercise Price therefor (check as many as applicable):

☐ herewith tenders cash payment to the order of the Company in the amount of $_______________ in accordance with Section 2.1 of the Warrant; and/or

☐ hereby instructs the Company to withhold such number of Exercise Shares with a Fair Market Value equal to the Exercise Price in respect of __________of the Exercise Shares purchased hereby, in accordance with the cashless exercise terms of <u>Section 17</u> the Warrant

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** This exercise and election shall (check one) □ be immediately effective or □ be effective as of [5:00 p.m. New York City time on [insert date (which date shall not be after the termination of the Warrant in accordance with the Warrant)]][insert other conditions to exercise].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** Please issue a certificate or certificates (including in electronic format) representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

____________________________

(Name)

_____________________________________________________

(Address)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** Unless a current registration statement under the Securities Act of 1933, as amended, is in effect with respect to the securities to be issued upon exercise of this Warrant, or there is a valid exemption from registration of such securities, the Holder hereby confirms its investment intent as set forth in the Warrant with respect to such securities and acknowledges that the representations and warranties set forth in <u>Section 4</u> of the Warrant as they apply to the undersigned continue to be true and correct as of this date.

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| | |
|:---|:---|
| (Date) | (Signature) |
|  | (Print name) |

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**<u>EXHIBIT B</u>**

**ASSIGNMENT FORM**

(To assign the foregoing Warrant, execute this form and supply required information, including an IRS Form W-9 from the assignee. Do not use this form to purchase shares.)

**For Value Received**, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

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| | |
|:---|:---|
| Name: | |
|  | (Please Print) |
| Address: | |
|  | (Please Print) |

---

Dated: __________, 20__

Holder's Signature: _____________

Holder's Address: _____________

**NOTE**: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant and/or the Holder's signature page thereto, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

## Exhibit 5.1

**Exhibit 5.1**

![](ex5-1_001.jpg)

June 29, 2026

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| | |
|:---|:---|
| <br> Ionic Digital Inc.<br> 650 Massachusetts Avenue NW, 6th Floor<br> Washington, District of Columbia 20001 | ![](ex5-1_002.jpg) |

---

**Registration Statement on Form S-1**

Ladies and Gentlemen:

We have acted as New York counsel to Ionic Digital Inc., a corporation organized under the laws of Delaware (the "<u>Company</u>"), in connection with the preparation and filing by the Company with the Securities and Exchange Commission (the "<u>SEC</u>") of a registration statement on Form S-1 (the "<u>Registration Statement</u>"), under the Securities Act of 1933 as amended (the "<u>Securities Act</u>"), of the offer and sale from time to time by the selling stockholders named in the Registration Statement of an aggregate of up to 10,800,164 shares of Class A common stock, par value $0.00001 per share (the "<u>Common Stock</u>") of the Company (the "<u>Resale Shares</u>"). The Resale Shares consist of (i) 159,392 shares of Common Stock held by certain Registered Stockholders that were issued pursuant to the Plan (as defined below) (the "<u>Plan Shares</u>"), (ii) 74,748 shares of Common Stock held by certain Registered Stockholders that were issued pursuant to the vesting of restricted stock units (the "<u>Incentive Shares</u>"), and (iii) (x) up to 7,547,166 shares of Common Stock that are issuable to certain Registered Stockholders upon conversion of the Series A preferred stock, par value $0.00001 per share (the "<u>Conversion Shares</u>"), and (y) up to 3,018,858 shares of Common Stock that are issuable to certain Registered Stockholders upon exercise of the certain warrants described in the Registration Statement (the "<u>Warrants</u>" and, such shares of Common Stock, the "<u>Warrant Shares</u>"), in each case, that were, or will be, issued pursuant to securities purchase agreements, dated as of June 26, 2026 (the "<u>Purchase Agreements</u>" and together with the Warrants, the "<u>Enforceability Documents</u>"), by and between the Company and the investors party thereto.

This opinion letter is rendered in accordance with the requirements of Item 601(b)(5) of Regulation S–K under the Securities Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related prospectus, any prospectus filed pursuant to Rule 424(b) with respect thereto, other than as expressly stated herein with respect to the issue of the Resale Shares.

In connection with our opinions expressed below, we have examined originals or copies certified or otherwise identified to our satisfaction of the following documents and such other documents, corporate records, certificates and other statements of government officials and corporate officers of the Company as we deemed necessary for the purposes of the opinions set forth in this opinion letter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the bankruptcy plan of reorganization (the " <u>Plan</u> ") of Celsius Network LLC and its affiliates
(together with its debtor and non-debtor affiliates, "Celsius"), which was approved by a vote of a majority of Celsius creditors
and subsequently confirmed by the United States Bankruptcy Court for the Southern District of New York in November 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Purchase Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a copy of the Certificate of Incorporation of the Company, certified by the Secretary of State of the
State of Delaware on June 22, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a copy of the Bylaws of the Company as in effect on June 22, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the specimen Common Stock certificate of the Company;

![](ex5-1_001.jpg)

Ionic Digital Inc.

June 29, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Certificate of Designation of Series A Preferred Stock, filed as Exhibit 3.3 to the Registration
Statement (the " <u>Certificate of Designation</u> ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the form of Series A Preferred Stock certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form of Warrant, filed as Exhibit 4.1 to the Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Ionic Digital Inc. Omnibus Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a copy of the resolutions of the Board of Directors of the Company, dated June 26, 2026; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a copy of a certificate, dated June 22, 2026, of the Delaware Secretary of State certifying the existence
and good standing of the Company under the laws of the State of Delaware.

We have relied, to the extent we deem such reliance proper, upon such certificates or comparable documents of officers and representatives of the Company and of public officials and upon statements and information furnished by officers and representatives of the Company with respect to the accuracy of material factual matters contained therein which were not independently established by us. In rendering the opinions expressed below, we have assumed, without independent investigation or verification of any kind, the genuineness of all signatures on documents we have reviewed, the legal capacity and competency of all natural persons signing all such documents, the authenticity and completeness of all documents submitted to us as originals, the conformity to authentic, complete original documents of all documents submitted to us as copies, the truthfulness, completeness and correctness of all factual representations and statements contained in all documents we have reviewed, the accuracy and completeness of all public records examined by us, and the accuracy of all statements in certificates of officers of the Company that we reviewed.

In addition, in rendering the opinions expressed below, we have assumed (except with respect to the Company to the extent expressly addressed in our opinions set forth in this opinion letter) that: (i) each party to each Enforceability Document is duly organized and validly existing and in good standing under the laws of its jurisdiction of incorporation or formation and has, and had at all relevant times, full power and authority to execute and deliver, and to perform its obligations under, each Enforceability Document to which it is a party, (ii) that each Enforceability Document has been or will be duly authorized, and will be executed and delivered, by all of the parties thereto, (iii) that each party to each of the Enforceability Documents has satisfied or will satisfy all other legal requirements that are applicable to it to the extent necessary to make each Enforceability Document enforceable against it, (iv) that each Enforceability Document will constitute the valid, binding and enforceable obligation of all of the parties thereto under all applicable laws, (v) that the execution and delivery of, and the performance of its obligations under, each Enforceability Document by each party thereto will not (A) contravene such party's articles or certificate of incorporation, by-laws or similar organizational documents, (B) contravene any laws or governmental rules or regulations that may be applicable to such party or its assets, (C) contravene any judicial or administrative judgment, injunction, order or decree that is binding upon such party or its assets, or (D) breach or result in a default under any contract, indenture, lease, or other agreement or instrument applicable to or binding upon such party or its assets, (vi) that all consents, approvals, licenses, authorizations, orders of, and all filings or registrations with, any governmental or regulatory authority or agency required under the laws of any jurisdiction for the execution and delivery of, and the performance of its obligations under, each Enforceability Document by each party thereto have been or will be obtained or made and are in full force and effect and (vii) that there are no agreements or other arrangements that modify, supersede, novate, terminate or otherwise alter any of the terms of any Enforceability Document.

![](ex5-1_001.jpg)

Ionic Digital Inc.

June 29, 2026

Based upon the foregoing assumptions and the assumptions set forth below, and subject to the qualifications and limitations stated herein, having considered such questions of law as we have deemed necessary as a basis for the opinions expressed below, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Plan Shares and the Incentive Shares have been duly authorized and are validly issued, fully
 paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Conversion Shares have been duly authorized and, when such Conversion Shares have been issued and
delivered upon conversion of Series A Preferred Stock in accordance with the terms and conditions set forth in the Registration Statement
and the Certificate of Designation, they will be validly issued, fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Warrant Shares have been duly authorized and, when such Warrant Shares have been issued and delivered
upon exercise of a Warrant and payment of the exercise price therefor in accordance with the terms and conditions set forth in the Registration
Statement and the applicable Warrant, they will be validly issued, fully paid and non-assessable.

The opinions expressed above are limited to questions arising under the Delaware General Corporation Law. We do not express any opinion as to the laws of any other jurisdiction.

This opinion letter is for your benefit in connection with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Securities Act. This opinion letter is provided solely in connection with the distribution of shares of Common Stock pursuant to the Registration Statement and is not to be relied upon for any other purpose.

The opinions expressed above are as of the date hereof only, and we express no opinion as to, and assume no responsibility for, the effect of any fact or circumstance occurring, or of which we learn, subsequent to the date of this opinion letter, including, without limitation, legislative and other changes in the law or changes in circumstances affecting any party. We assume no responsibility to update this opinion letter for, or to advise you of, any such facts or circumstances of which we become aware, regardless of whether or not they affect the opinions expressed in this opinion letter.

We hereby consent to the filing of this opinion letter as Exhibit 5.1 to the Registration Statement and to the reference to our firm as counsel for the Company that has passed on the validity of the Resale Shares appearing under the caption "Legal Matters" in the prospectus forming part of the Registration Statement or any prospectus filed pursuant to Rule 424(b) with respect thereto. In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.

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| |
|:---|
| Very truly yours, |
| /s/ White & Case LLP |
| White & Case LLP |

---

DN:AJE:RED:ND

## Exhibit 10.1

**Exhibit 10.1**

**AMENDED AND RESTATED**

**MANAGEMENT SERVICES AGREEMENT**

**By and between**

**U.S. Data Management Group, LLC, as Manager**

**And**

**Ionic Digital Inc.**

This Amended and Restated Management Services Agreement (this "**Agreement**"), is made and entered as of June 19, 2024 (the "**Execution Date**"), by and between (i) U.S. Data Management Group, LLC, a Delaware limited liability company ("**Manager**"), and (ii) Ionic Digital Inc., a Delaware corporation (the "**Company**"). Any capitalized term used but not otherwise defined herein shall have the meaning set forth in the Plan (as defined below).

**WHEREAS**, on July 13, 2022 and December 7, 2022, as applicable, Celsius Network LLC, a Delaware limited liability company and certain of its debtor affiliates (collectively, the "**Debtors**") commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended in the United States Bankruptcy Court for the Southern District of New York (the "**Bankruptcy Court**");

**WHEREAS**, on May 25, 2023, the Debtors filed the *Notice of Successful Bidder and Backup Bidder* [Docket No. 2713], which announced that, pursuant to Sections XII and XIII of the *Order (I) Approving the Bidding Procedures in Connection with the Sale of Substantially All of the Debtors' Assets, (II) Scheduling Certain Dates with Respect Thereto, (III) Approving the Form and Manner of Notice Thereof, (IV) Approving Contract Assumption and Assignment Procedures, and (V) Granting Related Relief* [Docket No. 1272] (the "**Bidding Procedures Order**"), the Debtors, in consultation with the Official Committee of Unsecured Creditors (the "**Committee**"), selected the Manager as the Successful Bidder (as defined in the Bidding Procedures Order) in connection with the Debtors' auction to select a sponsor for the Debtors' chapter 11 plan;

**WHEREAS**, on June 6, 2023, the Debtors, the Committee, and the Manager entered into that certain plan sponsor agreement (the "**Plan Sponsor Agreement**"), which sets forth the terms of the restructuring transactions contemplated by the Successful Bid, including the chapter 11 plan term sheet annexed to the Plan Sponsor Agreement [Docket No. 2759];

**WHEREAS**, on June 15, 2023, the Debtors filed the *Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* [Docket No. 2807] (as may be amended, modified, or supplemented, in each case consistent with its terms, from time to time, the "**Plan**"), as implemented pursuant to that certain *Joint Motion of the Debtors and the Committee for Entry of an Order (I) Approving the Implementation of the MiningCo Transaction and (II) Granting Related Relief* [Docket No. 4050] (the "**MiningCo Implementation Motion**," and together with the Plan, the "**MiningCo Plan**");

**WHEREAS**, on December 17, 2023, the Manager and Celsius Mining LLC entered into that certain Interim Services Agreement whereby the Manager agreed to undertake the management of development and construction of that certain bitcoin mining facility located in Ward County, Texas (such facility and all associated land upon which such facility is located, as further described in <u>Section 4(e)(xi)</u> and <u>Exhibit F</u>, the "**Cedarvale Site**");

**WHEREAS**, the Bankruptcy Court entered its order confirming the Plan (the "**Confirmation Order**") on November 9, 2023, and its order granting the MiningCo Implementation Motion on December 27, 2023;

**WHEREAS**, on January 31, 2024, the MiningCo Plan went effective pursuant to its terms and the terms of the Confirmation Order and the order granting the MiningCo Implementation Motion;

**WHEREAS**, on January 31, 2024, the MiningCo Assets (as defined in the MiningCo Plan), including the Mining (as defined in the MiningCo Plan) assets, were transferred to the Company and its subsidiaries pursuant to and in accordance with the terms of the MiningCo Plan;

**WHEREAS**, on January 31, 2024, the Company and the Manager entered into that certain Management Services Agreement (the "**Original Agreement**") pursuant to which the Company agreed to retain the Manager to provide certain services as set forth therein, and the Manager agreed to undertake such obligations; and

**WHEREAS**, the Company and the Manager have agreed to amend and restate the Original Agreement by entering into this Agreement, which on and from the Execution Date shall replace in its entirety the Original Agreement.

**NOW**, **THEREFORE**, in consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as follows:

1. <u>Appointment</u>.
 The Company hereby engages the Manager on a non-exclusive basis (except as expressly provided herein with respect to exclusivity at
 Exclusive Sites), and the Manager hereby agrees, upon the terms and subject to the conditions set forth herein, to provide, or cause
 any of its Affiliates to provide, to the Company the Services described in <u>Exhibit A</u> of this Agreement and complete and
 deliver the Projects described in <u>Exhibit B</u> of this Agreement; <u>provided</u>, <u>however</u>, that if the Company elects to
 have any Person other than the Company provide any portion of the Services or work on the Projects (an "**Outside Service Provider** "), the Company and its Affiliates shall have no liability for such services delivered or work performed by such
 Outside Service Provider and shall not be responsible or liable for any failures or delays, including failures or delays in the
 performance of Services, to the extent primarily caused by the action or inaction of an Outside Service Provider. The Manager shall
 be permitted to use an Affiliate or, subject to prior written approval of the Company, (it being understood that such approval shall
 be deemed given if the expenditure is specifically contemplated in, and made in accordance with, (i) any Budget approved by the
 board of directors of the Company (the "**Board** "); or (ii) in written resolutions promulgated by the Board), (A)
 with an aggregate value greater than $250,000 during any rolling twelve-month period, or, (B) that are indicated as
 "Fixed" as set forth on <u>Exhibit A</u>, a third-party contractor (a "**Third-Party Contractor** "), the
 costs of which will be borne by (1) the Manager to the extent the Third-Party Contractor is performing Services indicated as
 "Fixed Fee" on <u>Exhibit A</u> and (2) the Company to the extent the Third-Party Contractor is performing Services
 indicated as "Pass-Through Expenses", in each case as set forth on <u>Exhibit A</u>; <u>provided</u>, <u>however</u>,
 that the Manager shall in all cases remain ultimately responsible for the performance of the Services by any of its Affiliates or
 any Third-Party Contractor and for compliance with all of the terms of this Agreement, as if such Services had been performed by the
 Manager itself; <u>provided</u>, <u>further</u>, that the Manager shall not be responsible or liable for any failures or delays,
 including failures or delays in the performance of Services, to the extent
primarily caused by the Company's failures or delays in providing such approval. Nothing contained in this Agreement shall create
any contractual relationship between the Company, on the one hand, and such Affiliate of the Manager or Third-Party Contractor, on the
other hand. For purposes of this Agreement, any reference to a consent or approval of the Company shall be construed to mean the consent
or approval of the Board or authorized persons of the Board acting on behalf of the Company. For purposes of this Agreement, (A) an "**Affiliate** "
of any specified person is 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; (B) "**Exclusive Sites**" means, without duplication, the Manager Developed
Exclusive Sites, and the Manager Managed Exclusive Sites, and for the avoidance, does not include any of the Excluded Sites; (C) "**Manager Developed Exclusive Site**" means any site, other than a Manager Managed Exclusive Site or an Excluded Site, in respect of which
the Manager and Company enter into a binding definitive agreement as to the design and construction of such site by Manager, which agreement
shall include industry-standard terms regarding construction (such terms may include, for illustration purposes only and subject to the
agreement of the parties in such definitive agreement, provisions regarding budgets, identification and pricing of subcontractors, milestones,
expected completion date and retention payments); (D) "**Manager Managed Exclusive Site**" means any site, other than a
Manager Developed Exclusive Site or an Excluded Site, in respect of which the Manager and Company into a binding definitive agreement
as to the operation of such site by Manager and (E) "**Excluded Site**" means each of the following sites: the Garden site,
Rebel site, Stiles site, East Stiles site, Cedarvale Site and Contributed Site. For the avoidance of doubt, Manager shall have exclusive
rights during the Term of this Agreement to (x) design, build and operate any Manager Developed Exclusive Site and (y) to operate any
Manager Managed Exclusive Site, in each case upon and following the execution of definitive documentation as contemplated in the definition
of each such term.

2. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Term</u>. Unless otherwise terminated pursuant to <u>Section 2(b)</u>, the term of this Agreement shall be for an initial term commencing on January 31, 2024 (the "**Effective Date**") and expiring on January 31, 2028 (the "**Initial Term**", and, collectively with the Term Extension, if applicable, the "**Term**"). The Initial Term shall be automatically extended by a one-year term (the "**Term Extension**"), unless (subject to the terms, conditions and limitations contained in this Agreement) the Company provides a written notice to the Manager notifying its intention to not renew this Agreement (a "**Non-Renewal Notice**") on or prior to January 31, 2027. If a Non-Renewal Notice is provided, the Term shall expire on January 31, 2028; <u>provided, that</u> the Manager shall continue to be compensated through any Transition Period (if the Company elects to enter into a Transition Period) as set forth in <u>Section 2(d)(ii)</u> hereof. Notwithstanding the foregoing, the Initial Term shall be automatically extended by the Term Extension in the event that the Company EH/s is equal to or greater than 23 EH/s (the "**EH/s Target**") at any point on or prior to January 31, 2027 (the "**EH/s Target Deadline**") and, for the avoidance of doubt, the Company may not provide a Non-Renewal Notice if such EH/s Target has been achieved at any point on or prior to the EH/s Target Deadline. For purposes of this Agreement, "**Company EH/s**" means, for a given time, the number of exahash per second (EH/s) of Bitcoin mining capacity calculated as the sum of the name plate hashrate of Company owned Bitcoin mining rigs installed and operating at facilities owned and operated by the Company at such time. <u>Exhibit E</u> shows the method of calculation used in calculating the EH/s Target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination</u>. This Agreement may be terminated only 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;(i) By mutual agreement, in writing, of both the Manager and the Company during the Initial Term or any Term Extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) By the Manager:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the event that the Company fails to pay the consideration set forth in <u>Section 5</u> in an amount, individually or in aggregate, of at least $500,000 (except for amounts disputed in good faith in accordance with <u>Section 5(c)</u>, which shall not be deemed outstanding until such amounts are finally determined to be due and owing pursuant to <u>Section 5(c)</u>), during the Initial Term or any Term Extension; <u>provided, however</u>, that the Manager shall not be entitled to exercise the termination right pursuant to this <u>Section 2(b)(ii)</u> if the Company has made payment of such consideration at a time when the Manager has not yet exercised the termination right pursuant to this <u>Section 2(b)(ii)</u>; 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) in the event that Matt Prusak ("**Prusak**") is terminated without cause by the Company from his role as interim Chief Executive Officer of the Company during the six month period following the execution of the Original Agreement ("**Interim CEO Period**"); 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;(iii) By the Company, during the Initial Term or the Term Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the event of the Manager's (1) fraud, (2) willful misconduct or (3) gross negligence, in each case in the performance of its duties 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in the event of the Manager's persistent and material failure to competently manage, operate, and oversee on behalf of the Company and its subsidiaries, the Bitcoin mining assets of the Company and all Bitcoin mining projects under the Agreement; <u>provided</u>, <u>however</u>, that any such breach by the Manager caused by or resulting from the Company's breach of, or delay in performing, any of its obligations under this Agreement shall not be deemed a breach by the Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if Asher Genoot ("**Genoot**") (1) ceases to be employed by Manager in his role as President or in a role of greater or substantially similar responsibility for any reason or (2) is indicted of any act which is a felony involving financial crimes or theft of corporate property; <u>provided, that</u> the Company shall only have the right to terminate this Agreement if, within six months following such cessation of employment or indictment, the Manager has not terminated Genoot's employment (to the extent applicable) and appointed a Qualified Replacement. "**Qualified Replacement**" means an individual, or individuals, who, in aggregate if applicable, have comparative and demonstrated experience in bitcoin mining operations and the ability to provide services substantially similar in the aggregate to the Services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) in the event that the Manager consummates a Prohibited Change of Control without the Company's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if the Manager: (1) becomes insolvent or admits its inability to pay its debts generally as they become due; (2) becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law; (3) is dissolved or liquidated or takes any corporate action for such purpose; (4) makes a general assignment for the benefit of creditors; or (5) has a receiver, trustee, custodian, or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the event that the EH/s Target has not been achieved on or prior to the EH/s Target Deadline; <u>provided</u>, <u>that</u> the Company may terminate this Agreement pursuant to this <u>Section 2(b)(iii)(F)</u> only after the EH/s Target Deadline; <u>provided further</u> that if the Company terminates this Agreement pursuant to this <u>Section 2(b)(iii)(F)</u>, the Company shall be deemed to have elected to enter into a Transition Period of at least six (6) months pursuant to <u>Section 2(d)(ii)</u> (commencing on the date set forth in the termination notice delivered pursuant to <u>Section 2(c)</u> and in any event no earlier than the date of such notice or EH/s Target Deadline) in accordance with <u>Section 2(d)(ii)</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) in the event of a Change of Control of the Company; <u>provided</u>, that, in connection with such Change of Control, rather than terminating this Agreement, Company may instead elect to cause the assignment and/or assumption of this Agreement to the acquiror of or successor entity to the Company, as applicable, in such Change of Control (such acquiror or successor, the "**Assuming Successor**"); <u>provided</u> further that (1) Company delivers to Manager evidence in writing that the Assuming Successor has assumed this Agreement in its entirety, effective upon the applicable date of effectiveness of the Change of Control and (2) the Assuming Successor is not insolvent as of the date of the effectiveness of the Change of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) [INTENTIONALLY OMITTED]; 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;(I) at Company's election, at any time upon written notice to Manager; <u>provided</u> that the effectiveness of such termination shall be no later than six (6) months after the date of such notice and no earlier than thirty (30) days after the date of such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For the purposes of this Agreement, (A) "**Change of Control**" means the Company's consummation of a sale, exchange or other transfer to third party, whether by merger, acquisition or otherwise, whether directly or indirectly, in one transaction or a series of related transactions, (1) of all or substantially all of the assets of the Company, (2) of more than 50% of the voting power of the outstanding securities of the Company or (3) any reorganization, merger or consolidation in which the Company is not the surviving entity, excluding any merger effected exclusively for the purpose of changing the domicile of the party and (B) "**Prohibited Change of Control**" means the Manager's consummation of a sale, exchange or other transfer to a party set forth on <u>Exhibit D</u> hereto, including any Affiliate of such party or any successors to such party, whether by merger, acquisition or otherwise (each a "**Prohibited Party**"), whether directly or indirectly, in one transaction or a series of related transactions, (1) of all or substantially all of the assets of the Manager, (2) of the acquisition of more than 50% of the voting power of the outstanding securities of the Manager by a Prohibited Party by means of any transaction or series of related transactions (including, without limitation, reorganization, merger or consolidation) or (3) any reorganization, merger or consolidation in which the Manager is not the surviving entity, excluding any merger effected exclusively for the purpose of changing the domicile of the 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;(c) <u>Termination Event Procedures</u>. Other than with respect to termination under <u>Section 2(b)(iii)(I)</u>, termination of this Agreement sought pursuant to <u>Section 2(b)(ii)</u> (by the Manager) or <u>Section 2(b)(iii)</u> (by the Company) (each a "**Potential Termination Event**") shall comply with the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The party asserting that a Potential Termination Event has occurred (the "**Terminating Party**") shall provide the other party (the "**Non-Terminating Party**") with written notice of such Potential Termination Event (the "**Termination 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Termination Notice shall include the facts and circumstances forming the basis for the Terminating Party's belief that a Potential Termination Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Following the Non-Terminating Party's receipt of a Termination Notice for termination pursuant to <u>Section 2(b)(ii)</u>, <u>Section 2(b)(iii)(A)</u> or <u>Section 2(b)(iii)(B)</u>, the Non-Terminating Party shall have 45 days to cure the breach that gives rise to the Potential Termination Event (if such breach that gives rise to the Potential Termination Event is curable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effect of Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the termination of this Agreement, there shall be no liability or obligation on the part of the Manager or the Company other than as stated herein; <u>provided</u>, <u>however</u>, that termination or expiration of this Agreement shall not affect the liabilities of each party hereto for any breach of this Agreement occurring prior to such termination or expiration, or any payment obligation set forth in this <u>Section 2(d)</u>. Any Definitive Agreements shall survive in accordance with their own terms. For clarity, after the termination of this Agreement and subject to the obligation to pay the compensation during any Transition Period as set forth herein, the Company shall have no obligation to pay any compensation under <u>Section 5</u> of this Agreement (other than for Services rendered, or Pass-Through Expenses incurred, prior to such termination or as provided in <u>Section 2(d)(ii)</u>, <u>Section 2(d)(iii)</u>, <u>Section 2(d)(iv)</u> and <u>Section 2(d)(v)</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;(ii) Upon the termination of this Agreement pursuant to <u>Section 2(b)(iii)</u>, the Company may elect at its sole discretion to require the Manager to continue to perform (in whole or part) the Services in accordance with <u>Section 4</u>, for a period up to six (6) months from the effective date of the applicable notice of termination (the "**Transition Period**"). During the Transition Period, the Manager shall use commercially reasonable efforts to provide all necessary cooperation and assistance required by the Company to enable the Company to transition the Services to the Company's nominated successors, including but not limited to assistance with ancillary activities that may be required as part of such transition (collectively, the "**Transition Services**"); <u>provided</u>, <u>that</u> Manager shall not be obligated to incur any out of pocket costs in connection with such Transition Services. The Manager shall use commercially reasonable efforts to minimize any interruption to the Company's operations due to the Transition Services. During the Transition Period, the Company may require the Manager to work with one or more successors to transfer the Services in an orderly manner. During the Transition Period the Manager shall: (A) use commercially reasonable efforts to complete any Projects that remain partially complete or in-progress on the effective date of termination; and (B) perform the Transition Services in a diligent, professional and workmanlike manner in accordance with the terms and conditions of this Agreement. During such Transition Period, the Company shall pay to the Manager the Mining Management Fee, on the schedule described in, and if applicable as adjusted in accordance with, <u>Section 5(a)</u>; <u>provided</u>, <u>that</u> if the Company elects to pursue Transition Services upon termination of this Agreement pursuant to <u>Section 2(b)(iii)(B)</u>, <u>Section (b)(iii)(C)</u>, <u>Section (b)(iii)(D)</u>, <u>Section (b)(iii)(E)</u>, <u>Section (b)(iii)(F)</u> or <u>Section (b)(iii)(G)</u>, the Company shall pay to the Manager, in addition to any fees payable for such Transition Services and any other fees expressly payable pursuant to this Agreement following such Termination, an amount equal to the Mining Management Fee that would have become due and payable over the successive three (3)-month period following the effective date of such termination such amount to be paid in cash in three monthly payments commencing upon the effective date of such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If this Agreement is terminated or if the Company elects not to renew this Agreement through the Term Extension, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Other than pursuant to <u>Section 2(b)(ii)</u>, <u>Section 2(b)(iii)(G)</u> or <u>Section 2(b)(iii)(I)</u> or as provided in <u>Section 2(d)(ii)</u>, as applicable, the Company shall have no obligation to pay any further compensation, payment or fees under this Agreement for any periods following the effective date of such 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;&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) other than pursuant to <u>Section 2(b)(ii)</u> or <u>Section 2(b)(iii)(G)</u>, any Unvested Shares (as defined in the Restricted Stock Purchase Agreement) and/or any Unvested Warrants (as defined in the Warrant Agreements) (such agreements together, the "**Equity Agreements**" and such securities, together, the "**Unvested Securities**"), shall be, immediately and without any action on the part of the Company, Board, the Manager or any other person, cancelled for no consideration in accordance with the terms of the respective Equity Agreements and the Manager shall cease to have any rights with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) other than pursuant to <u>Section 2(b)(ii), Section 2(b)(iii)(G)</u> or <u>Section 2(b)(iii)(I)</u>, the Manager shall pay to the Company by wire transfer of immediately available cash (1) with respect to Mining Management Fee that has been paid to the Manager in advance for the quarter in which such effective date of termination occurs, a prorated amount of such Mining Management Fee based on the number of days left in such quarter from the effective date of termination, and (2) for any Pass-Through Expenses owed to the Manager pursuant to this Agreement, any amounts that have been paid to the Manager in advance for the month in which such effective date of termination occurs, less any amounts actually spent or required to be paid by the Manager in furtherance of its performance hereunder prior to the effective date of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If this Agreement is terminated pursuant to <u>Section 2(b)(ii)</u> or <u>Section 2(b)(iii)(G)</u>, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Company will pay to the Manager, as liquidated damages, an amount equal to (x) 100% of the aggregate Mining Management Fee that would have become due and payable had the Services been performed for the remainder of the then current Initial Term or Term Extension (as applicable), plus (y) all consideration owed to the Manager as set forth in <u>Section 5</u> and accrued up to the effective date of such expiration or termination, in one lump-sum, due upon the effective date of such expiration or termination; 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;(B) all Unvested Securities which would have vested after the date of termination had the Services been performed for the remainder of the then-current Initial Term or Term Extension (as applicable) shall immediately and without any action on the part of the Company, the Board, the Manager or any other person, vest, in accordance with the terms of the respective Equity Agreement; provided, that in respect of any Unvested Warrants (as defined in the Warrant Agreements), to the extent the exercise price has not been set, the exercise price shall be deemed to be equal to (x) the exercise price of the latest tranche of warrants issued under the Warrant Agreements for which the exercise price has been set, or (y) if termination occurs prior to the first anniversary of the Agreement, the Company's net asset value as of the Effective Date divided by the Common Stock Deemed Outstanding (as defined in the Warrant Agreements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Subject to <u>Section 2(d)(ii)</u>, if this Agreement is terminated pursuant to <u>Section 2(b)(iii)(I)</u>, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Manager shall continue to perform (in whole or part) the Services, and shall continue to be compensated, in accordance with the terms of this Agreement through the effective date of termination; provided, however, that except as expressly provided for in such agreement, the Manager shall not be obligated to incur any out of pocket costs in connection with the performance of such Services; 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;(B) the Company will pay to the Manager, as liquidated damages, an amount equal to (x) the lesser of (1) the sum of the Contributed Site Fixed Termination Fees and one hundred percent (100%) of the aggregate Base Mining Management Fee and Supplemental Fixed Fees, that would have become due and payable over the successive eighteen (18) month period (such eighteen month period deemed to commence upon the expiration of the Transition Period), and (2) one hundred percent (100%) of the aggregate Base Mining Management Fee, Supplemental Fixed Fees and Contributed Site Fixed Fees, as applicable, that would have become due and payable had the Services been performed for the remainder of the then-current Initial Term or Term Extension, as applicable, plus (y) all consideration owed to the Manager as set forth in <u>Section 5</u> and accrued up to the effective date of such expiration or termination, in one lump-sum, due upon the expiration of the applicable Transition Period following such termination; <u>provided</u> that, as used herein, "**Contributed Site Fixed Termination Fees**" means, at any time from and after the date of the Company's written acceptance of a Contributed Site (as defined below), an amount equal to the product of (a) eighteen (18) and (b) the product of (x) $4,500 per MW and (y) the nameplate capacity (in MW) of the project located at the Contributed Site, as such nameplate capacity (in MW) may be adjusted by the relevant utility provider in writing other than at the request 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;(vi) Notwithstanding anything to the contrary in this Agreement, to the extent that the Manager receives all amounts payable pursuant to <u>Section 2(d)(i)</u> through and including <u>Section 2(d)(v)</u> and, to the extent applicable, all Unvested Securities are vested pursuant to <u>Section 2(d)(iv)(B)</u>, such payment (which payment shall be reduced by any amounts owed by the Manager to the Company pursuant to <u>Section 4(e)(xi)</u>) and vesting and settlement of Unvested Securities (to the extent applicable), shall be the sole and exclusive remedy of the Manager against the Company or any of its Affiliates in respect of this Agreement, the termination of this Agreement, the failure to perform this Agreement or any claims or actions under applicable laws arising out of any such breach, termination or failure, in each case, other than to (A) lower any amounts owed pursuant to this <u>Section 2(d)</u>, (B) any accrued and unpaid amounts prior to the termination and/or expiration of this Agreement under <u>Section 5</u>, (C) any amounts payable to the Manager that are disputed but are subsequently determined to be due and payable in accordance with this Agreement, (D) any costs and/or expenses due under contracts or agreements with third-parties which have been approved by the Board, including termination or other breakage payments, (E) obligations of the Company to indemnify the Manager under <u>Section 9</u> (*Indemnification*), (F) damages resulting from the Company's breach of <u>Section 6</u> (*Confidentiality*), <u>Section 7</u> (*Intellectual Property*), or <u>Section 10</u> (*Non-Solicitation*) and (G) claims arising under Definitive Agreements or related to obligations of the Company with respect to Projects. For clarity, this <u>Section 2(d)(vi)</u> shall not result in any double payment by the Company for the same underlying obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The provisions of this <u>Section 2(d)</u>, <u>Sections 6</u> and <u>7</u>, and <u>Sections 10</u> through <u>27</u> shall survive the termination of this Agreement.

3. <u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Services</u>. The Manager or any of its Affiliates shall manage, supervise, and oversee, on behalf of the Company and its subsidiaries, the Bitcoin mining business operations including all Bitcoin mining assets (the "**Purchased Assets**") and all Bitcoin mining projects, and provide such other services as set forth on <u>Exhibit A</u> hereto (collectively, the "**Services**") and shall complete and deliver the projects set forth on <u>Exhibit B</u> hereto (collectively, the "**Projects**").

4. <u>Performance Standards; Modification of Services; Obligations of the Manager; Obligations of the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Manager shall perform the Services, and shall cause the Services to be performed, in all material respects: (i) by qualified personnel (as to training, skill and experience); (ii) in a good, professional and workmanlike manner; (iii) consistent with applicable industry standards and best practices; and (iv) with the experience and expertise necessary to provide the Services in accordance with this Agreement. The Manager shall complete and deliver the Projects in accordance with the milestones and other specifications set forth on <u>Exhibit B</u> hereto.

&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) Within fifteen (15) days following the end of each calendar month, the Manager shall provide a monthly report to the Chief Executive Officer of the Company, the Chief Financial Officer of the Company, the Chair of the Board and the Chair of the Audit Committee (the "**Reporting Parties**") setting forth the Manager's performance and compliance with <u>Exhibit A</u> for such month. The Manager shall also provide the Reporting Parties with a quarterly report no later than sixty (60) days of the following quarter setting forth the Manager's performance and compliance with <u>Exhibit A</u> for the prior quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Modification of Services</u>. The Company may from time-to-time request that the Services be amended as the Company in good faith deems necessary for the management of the Purchased Assets. The Manager shall consider each such request in good faith. If the Manager is willing to amend the Services, the parties will negotiate in good faith any such amendment, including any change in the compensation of the Manager related thereto. In the event the parties agree to the terms of such amendment, such amendment will be adopted in accordance with <u>Section 20</u> and attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Executive Management Team</u>. Subject to the terms of the applicable employment agreement entered into between the Company and Prusak, Prusak will serve as the interim Chief Executive Officer of the Company for no less than the Interim CEO Period; <u>provided</u> that (i) Company shall have the right to terminate Prusak "for cause" during such Interim CEO Period, (ii) Company shall promptly disclose to Prusak any retention of a search firm or similar advisor to seek his potential replacement during such Interim CEO Period, and (iii) upon the expiration of such Interim CEO Period, the Company shall have the right to terminate Prusak in its sole discretion. Subject to the foregoing, Prusak shall serve at the pleasure of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Obligations of the Manager</u>. The Manager will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Prior to the date on which the Services or the Projects are to commence, obtain, and at all times during the Term of this Agreement maintain, all necessary licenses and consents; <u>provided</u>, <u>however</u>, that the Manager shall not be deemed to have breached this <u>Section 4(e)(i)</u> for any failure or delay in fulfilling or performing under this <u>Section 4(e)(i)</u>, caused by or resulting from any change to requirements imposed by law after the date of this Agreement as long as the Manager continues to use commercially reasonable efforts to comply 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;(ii) Nominate an employee to serve as a primary contact with respect to this Agreement and who will have authority to represent the Manager in connection with matters pertaining to this Agreement including the organization and control of the performance of the Services (the "**Project Manager**"); <u>provided</u>, <u>however</u>, that Manager shall not unreasonably replace the Project Manager during the term 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;(iii) Allocate Manager Personnel who are suitably skilled, experienced, trained, and qualified to perform the Services or Projects to fulfill Manager's obligations under <u>Sections 4(a)</u> and <u>(b)</u>. The Manager represents and warrants to the Company that the Manager shall provide ongoing training to Manager Personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) At the reasonable request of the Company (which shall be made in writing), replace the Project Manager or any other Manager Personnel to the extent that such Project Manager or other Manager Personnel has engaged in willful misconduct or fraud (or the Company has reasonable grounds to suspect that such person has engaged in willful misconduct or fraud) in the performance of their duties 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Prior to any Manager Personnel performing any Services or Projects hereunder: (A) ensure that such Manager Personnel have the legal right to work in the United States as necessary for their performance; (B) ensure that such Manager Personnel hold and continue to maintain, appropriate training and qualifications as required to perform the Services during the Term; and (C) conduct background checks on each such Manager Personnel that is an employee of the Manager or its Affiliates, which background checks shall comprise, at a minimum, references and criminal record, in accordance with state, federal, and local 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;(vi) Comply with all laws applicable to the provision of the Services or performance of the Projects, including but not limited to any applicable labor and employment laws; <u>provided</u>, <u>however</u>, that the Manager shall not be deemed to have breached this <u>Section 4(e)(vi)</u> for any failure or delay in fulfilling or performing under this <u>Section 4(e)(vi)</u> that is caused by or resulting from any change to requirements imposed by applicable law after the date of this Agreement as long as the Manager continues to use commercially reasonable efforts to comply 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;(vii) Comply with, and ensure that all Manager Personnel comply with, all rules, regulations, and policies of the Company and the Board that are communicated to the Manager in writing, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Require all Manager Personnel to be bound in writing by confidentiality and intellectual property provisions reasonably equivalent to those contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) At all times during the Term of this Agreement, use commercially reasonable efforts to procure and maintain at its sole cost and expense, at least the types and amounts of insurance coverage on the terms set forth on <u>Exhibit C</u> hereto. Upon the written request of the Company, the Manager shall provide the Reporting Parties with copies of the certificates of insurance and policy endorsements for all insurance coverage required of the Manager under <u>Exhibit C</u>, and shall not do anything to invalidate such insurance. This <u>Section 4(e)(ix)</u> shall not be construed in any manner as waiving, restricting, or limiting the liability of either party for any obligations imposed under this Agreement (including but not limited to, any provisions requiring a party hereto to indemnify, defend, and hold harmless the other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) (A) maintain complete, detailed, and accurate records relating to the provision of the Services under this Agreement, and (B) during the Term and for a period of two years thereafter, upon the Company's written request, allow the Company or the Company's representative to inspect and make copies of all such records and, during business hours, interview the Manager's personnel in connection with the provision of the Services, the performance of the Projects, and the Manager's compliance with this Agreement; <u>provided</u>, that following the end of such two-year period, such records shall be subject to, and may be deleted in accordance with, the Manager's reasonable internal policies on customer record retention and deletion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) (A) perform the Cedarvale Services (as defined in <u>Exhibit F-1</u>) with respect to the Cedarvale Site in accordance with <u>Exhibit F-2</u> until the date on which Cedarvale Substantial Completion occurs; and (B) achieve Cedarvale Substantial Completion on or before December 17, 2024 (the "**Cedarvale Deadline**") (it being understood that, subject to <u>Section 9(d)</u>, the Company's sole and exclusive remedy for a breach of this <u>Section 4(e)(xi)</u>, shall be the remedy set forth in <u>Exhibit B</u> under the caption "Projects; Project Based Mining Management Fee Adjustments – 200 MW Energized Milestone". For purposes of this Agreement, (x) "**Cedarvale Substantial Completion**" means the date on which all networking and electrical components necessary to support no less than 200 MWs of power in aggregate to plugs at the Cedarvale Project have been installed to permit the prompt installation and operation thereafter of application specific integrated circuits ("**ASICs**") using 200 MWs of power, and (y) "**Cedarvale Project**" means the management of development and construction of a bitcoin mining facility (the "**Cedarvale Plant**"), at the Cedarvale Site;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) except to the extent delayed or prevented by a failure or delay by the Company to satisfy the Company Contributed Site Conditions, cause the occurrence of Contributed Site Substantial Completion; for purposes of this Agreement, "**Contributed Site Substantial Completion**" means the date on which all networking and electrical components necessary to support no less than 240 MWs of power in aggregate to plugs at the Contributed Site have been installed to permit the prompt installation and operation thereafter of ASICs using 240 MWs of power, and "**Company Contributed Site Conditions**" means the Company's execution of all agreements with third parties and the payment by the Company of all deposits and fees to third parties, in each case reasonably necessary (A) to secure rights to the Contributed Site, (B) for the design, development and construction of the site, and (C) for Manager's ability to achieve the Contributed Site Substantial Completion; 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;(xiii) (A) in its capacity as the holder of Class B common stock of the Company, not appoint as a Class B Director (as defined in the Company's certificate of incorporation) (1) any person known to it to be a beneficial owner of 5% or more of Hut 8 Corp.'s outstanding common stock (any such person a "**5% Hut Beneficial Owner**") on the date of their appointment, or (2) any director, officer, or employee of Hut 8. Corp. and its subsidiaries and controlled affiliates, and (B) take all necessary action to remove any Class B Director who becomes (1) known to Manager to be a 5% Hut Beneficial Owner or (2) a director, officer or employee of Hut 8 Corp. and its subsidiaries and controlled affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations of the Company</u>. The Company shall, and shall cause its subsidiaries to, take all action reasonably necessary for the Manager to provide the Services and fulfill its obligations under this Agreement, including but not limited 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;(i) Grant the Manager, its Affiliates, any Third-Party Contractor and their respective employees, agents, contractors, and representatives who are performing the Services or Projects (the "**Manager Personnel**"), access to the facilities, assets (including Bitcoin mining assets) and books and records of the Company and its subsidiaries (in each case, other than any records subject to attorney-client privilege or confidentiality obligation or reasonably deemed commercially sensitive by the Company) during reasonable business hours with reasonable advance notice solely for the purpose of the facilitating the Manager Personnel to deliver the Services and Projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Timely pay all amounts owed by the Company in accordance with <u>Section 5</u>; 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;(iii) At all times during the Term, use commercially reasonable efforts to procure and maintain, at its sole cost and expense, at least the types and amounts of insurance coverage on the terms set forth on <u>Exhibit C</u> hereto. Upon the written request of the Manager, the Company shall provide the Manager with copies of the certificates of insurance and policy endorsements for all insurance coverage required of the Company under <u>Exhibit C</u>, and shall not do anything to invalidate such insurance. This <u>Section 4(f)(iii)</u> shall not be construed in any manner as waiving, restricting, or limiting the liability of either party for any obligations imposed under this Agreement (including but not limited to, any provisions requiring a party hereto to indemnify and hold the other harmless 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Manager shall not be responsible or liable for any failures or delays, including failures or delays in the performance of Services, to the extent caused by the Company's failures or delays in performing under this <u>Section 4(f)</u>, failure to make, execute, sign, acknowledge or deliver any agreements reasonably necessary for the Manager's performance of the Services or the Company's unreasonable delay in approving any Budget. In the event that the Manager's performance of a Service or completion of a Project requires funds in excess of those approved in the most recent Budget, the Manager shall not be responsible or liable for any failures or delays in the performance of such Service or completion of such Project, solely to the extent that such failures or delays are caused by such funding shortfall.

5. <u>Compensation for Services and Expense Reimbursement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cash Compensation for Services</u>. As consideration for providing the Services, prior to the Execution Date, the Company shall pay to Manager such fees, costs and expenses as calculated in accordance with the terms subject to the conditions of the Original Agreement, and effective as of the Execution Date, and for the remainder of the Term and any Transition Period (in accordance with <u>Section 2(d)</u>), the Company shall pay to the Manager (or one or more Affiliates designated by the Manager) (x) an annual fee of $15,000,000, which shall be paid in advance in quarterly installments each in an amount equal to $3,750,000 ("**Base Mining Management Fee**"), (y) solely to the extent applicable, on and from the day in which Manager has commenced development or operation services with respect to an Exclusive Site, the Supplemental Fixed Fees for each such Exclusive Site payable quarterly in advance (prorated for the first quarter in which such Supplemental Fixed Fees become payable for an Exclusive Site), and (z) solely to the extent applicable, on and from the day in which Contributed Site Fee Condition is first satisfied, the Contributed Site Fixed Fees payable quarterly in arrears through the quarter in which the Contributed Site is fully energized, and thereafter payable quarterly in advance (prorated for the first quarter in which the Contributed Site Fee Condition is first satisfied), in each case, on the first Business Day of each January, April, July and October (each, a "**Fee Payment Date**") of each year for the quarterly period in which such Fee Payment Date occurs (commencing on July 1, 2024), less any Mining Management Fee adjustments set forth under the caption "Projects; Project Based Mining Management Fee Adjustments" on <u>Exhibit B</u> (the "**Project Based Mining Management Fee Adjustments**") for all prior quarterly periods (without double counting) (the amount as calculated in accordance with the foregoing, the "**Mining Management Fee**"); <u>provided</u>, <u>however</u>, that, (i) any Project Based Mining Management Fee Adjustment caused primarily by the action or inaction of an Outside Service Provider shall not result in such Project Based Mining Management Fee Adjustment being deducted from the Base Mining Management Fee (ii) during any Term Extension, the Base Mining Management Fee payable to the Manager shall be an amount equal to the Base Mining Management Fee multiplied by the CPI Increase as of the first day of such Term Extension; <u>provided</u>, <u>further</u>, that (x) the Mining Management Fee payable on the Fee Payment Date occurring on July 1, 2024 shall be reduced by an amount equal to $179,207.00, representing the excess Mining Management Fee paid by the Company to the Manager in respect of the calendar quarter comprising April, May and June 2024 after taking into account the fee adjustment as of the Execution Date as set forth above, and (y) the last Fee Payment Date shall be a pro rata payment equal to the Mining Management Fee multiplied by a fraction, the numerator of which is the number of days Services are to be performed for such period and the denominator for which is 92. For the avoidance of doubt, it is clarified that, there shall be no duplications of payments or adjustments made under this Agreement. For purposes of this Agreement, (A) "**Business Day**" means any day except Saturday, Sunday, or any other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, the state of New York, (B) "**CPI Increase**" means an amount that shall initially be equal to one and shall be adjusted, as of the date of calculation, to an amount equal to the greater of (x) one (1) or (y) a fraction, the numerator of which is the Price Index most recently published prior to the date of calculation and the denominator of which is the Price Index most recently published prior to the date hereof, (C) "**Price Index**" means the "Consumer Price Index for All Urban Consumers, All Items (1982-1984=100), U.S. Cities Average (CPI-U)," issued by the Bureau of Labor Statistics of the United States Department of Labor (or its successor Index) (https://www.bls.gov/regions/mid-atlantic/data/consumerpriceindexhistorical_us_table.htm), (D) "**Supplemental Fixed Fees**" means $4,500/MW per month for any Exclusive Sites in excess of the aggregate amount of 567 MW of operating, construction-in-progress and allowed capacity as of the Execution Date for the sites set forth on <u>Exhibit I</u> (which, for the avoidance of doubt, includes the 240 MW of capacity relating to the project to be located at the site to be contributed by Manager to the Company pursuant to Section 1 of <u>Exhibit B</u>) based on the total nameplate capacity for such Exclusive Site (which, for the avoidance of doubt, excludes all of the Excluded Sites), (E) "**Contributed Site Fixed Fees**" means $3,000/MW per month based on the weighted average MW energized at the site as for the relevant quarter through the end of such quarter in which nameplate capacity is achieved, and for each full quarter thereafter based on the full nameplate capacity for such site; (F) "**Contributed Site Fee Condition**" means the energization of the Contributed Site (which, for the elimination of doubt, includes partial energization); (G) "**Contributed Site**" means such site actually contributed by Manager in accordance with Paragraph 1 of <u>Exhibit B</u>. In no event shall the Project Based Mining Management Fee Adjustments or the Mining Management Fee be a negative amount. Notwithstanding anything herein to the contrary, to the extent that there are any Project Based Mining Management Fee Adjustments, any such Project Based Mining Management Fee Adjustments shall be deducted solely from the Mining Management Fee and shall not be deducted from, or set off against, any other Company payments or obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Equity Compensation for Services</u>. As additional consideration for providing the Services to the Company, the Company shall, simultaneously with the execution hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) execute and deliver to the Manager that certain Restricted Stock Purchase Agreement between the Company and the Manager, dated as of the date hereof (the "**Restricted Stock Purchase Agreement**") which shall include the issuance of certain Incentive Units (as defined therein) to Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) execute and deliver to the Manager those certain Warrant Agreements between the Company and the Manager, dated as of the date hereof (the "**Warrant Agreement**"); 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;(iii) execute and deliver to Manager that certain Contribution Agreement between the Company and the Manager, dated as of the date hereof (the "**Contribution 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;(iv) The Manager shall, simultaneously with the execution hereof, (x) execute and deliver to the Company each of the Restricted Stock Purchase Agreement, the Warrant Agreement and the Contribution Agreement, and (y) pay to Company in immediately available funds all amounts due under the Contribution Agreement for the Acquired Shares (as such term is defined therein). Notwithstanding anything to the contrary herein, the Company's obligations under this Agreement are conditional, and shall only become effective, upon the Closing (as such term is defined in the Contribution Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Interest on Unpaid Amounts</u>. Interest at a rate per annum equal to the Prime Rate plus 7.5% shall accrue and be payable by the Company on any unpaid (i) Mining Management Fee (except that for disputed amounts, which are subsequently determined to be owed by the Independent Accountant under <u>Section 5(d)</u>, shall accrue interest retroactively from the date such amounts were determined to be owed) and (ii) Pass-through Expenses, in each case until such amounts are paid. "**Prime Rate**" shall mean the "**U.S. Prime Lending Rate**" published in The Wall Street Journal; <u>provided</u>, <u>however</u>, that if The Wall Street Journal ceases to publish for any reason such rate of interest, "**Prime Rate**" shall mean the highest per annum interest rate published by the Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Review and Objections</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;(i) During the Term and for 12 months following the end of the Term, (A) the Company may inspect the Manager's books, upon reasonable prior notice, during normal business hours and at the offices of the Manager or such other location where relevant books may be located, solely in order to determine the Project Based Mining Fee Adjustments, and the resulting Mining Management Fees paid on any prior Fee Payment Date in respect of the prior 12 months, and (B) the Manager may inspect the Company's books, upon reasonable prior notice solely in order to review the Company's determination of the Project Based Mining Management Fee Adjustments and the resulting Mining Management Fees paid on any prior Fee Payment Date in respect of the prior 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Manager may object to the Company's determination of the Project Based Mining Management Fee Adjustments and the resulting Mining Management Fees paid on any prior Fee Payment Date by delivering a written notice of objection to the Company (an "**Objection Notice**"). Any Objection Notice shall specify the Project Based Mining Management Fee Adjustments and resulting Mining Management Fees disputed by the Manager and shall describe in reasonable detail the basis for such objection, as well as the amount in dispute. The Manager and Company shall negotiate in good faith to resolve the disputed items and agree upon the Project Based Mining Management Fee Adjustments and resulting Mining Management Fees for the applicable period, <u>provided</u>, <u>that</u> any such negotiations shall not be admissible into evidence in any proceeding in accordance with Federal Rule of Evidence 408 and any other applicable rules of evidence, and nothing in this Agreement shall be construed as a waiver of rights under Federal Rule of Evidence 408 and any other applicable rules of evidence. If the Manager and the Company are unable to reach agreement within 30 days after such an Objection Notice has been given, all unresolved disputed items shall be promptly referred to Kroll, or if Kroll is unavailable or declines engagement, a nationally or regionally recognized accounting, valuation, or similar firm appointed by mutual agreement of the Manager and the Company (the "**Independent Accountant**"). The Independent Accountant shall be directed to render a written report on the unresolved disputed items as promptly as practicable, but in no event greater than 30 days after such submission to the Independent Accountant, and to resolve only those unresolved disputed items set forth in the Objection Notice. If unresolved disputed items are submitted to the Independent Accountant, Company and Manager shall each furnish to the Independent Accountant such work papers, schedules and other documents and information relating to the unresolved disputed items as the Independent Accountant may reasonably request. The Independent Accountant shall resolve the disputed items based solely on the applicable definitions and other terms in this Agreement and the presentations by the Company and Manager, and not by independent review, acting as an expert and not as an arbitrator. The resolution of the dispute and the calculation of the Mining Management Fees that is the subject of the applicable Objection Notice by the Independent Accountant shall be final and binding on the parties hereto. The fees and expenses of the Independent Accountant shall be borne by the parties hereto as apportioned by the Independent Accountant based upon the outcome of the dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall (A) pay Manager for all documented fees, costs, and expenses incurred or to be incurred by or on behalf of Manager or its Affiliates in connection with performing the Services labeled as "Pass-Through" on <u>Exhibit A</u>, that are consistent with a Budget or otherwise approved by Company in writing (including by email) ("**Pass-Through Expenses**") and (B) reimburse the Manager for any reasonable and documented out-of-pocket travel and related costs and expenses incurred by the Manager, its Affiliates or Third-Party Contractors in connection with the performance of the Services, to the extent such expenses are not included as Pass-Through Expenses and are consistent with a Budget or otherwise approved by the Company (the "**T&E Expenses**"). "**Budget**" means a budget covering all Bitcoin mining facilities or projects for which Services will be provided, all Pass Through Expenses and T&E Expenses for an applicable calendar quarter, including line items for (A) day-to-day operations, including any capital expenditures for repair and maintenance, of the applicable facility or project, and (B) any capital expenditures for additions or improvements to the applicable facility or project; <u>provided</u>, <u>however</u>, that such budget shall not include any site development costs and expenses, which shall be mutually agreed between the Manager and the Board as and when such costs and expenses arise. The following fees shall be considered Pass-Through Expenses for purposes of <u>Section 2(d)(iii)</u>, <u>Section 2(d)(iv)</u>, and <u>Section 2(d)(v)</u>: any early termination fees, liquidated damages incurred as a result of early termination, or fees accelerated as a result of early termination, in any case, as incurred by the Manager or its Affiliates as a result of early termination of agreements between the Manager and/or an Affiliate of the Manager, on one hand, and a Third-Party Contractor, on the other hand, that have been specifically approved in advance in writing by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Manager shall prepare a proposed Budget for each quarter and provide the Reporting Parties with such Budget reasonably in advance of such calendar quarter (in any case at least 30 days prior to the beginning of the applicable calendar quarter), which proposed Budget shall indicate the estimated Pass-Through Expenses and T&E Expenses expected to be incurred in such calendar quarter. The Company shall promptly, but in no case later than 15 days after the delivery of such proposed Budget to the Company, review and approve or disapprove of such Budget by providing written notice to the Manager (and any disapproval shall include reasonable details describing the reasons that such Budget has been rejected). In the event that the Company reasonably disapproves of all or any portion of the Budget, the Manager and the Company shall meet in good faith (which may be in-person, telephonically, by video conference, or by other method mutually agreed to by the Manager and the Company) to resolve any issues with the proposed Budget. In the event that the Manager and Company are unable to agree on a Budget for a calendar quarter at least 10 days prior to the start of a calendar quarter, the last approved Budget shall be deemed the Budget for such calendar quarter. In the event that the Company has not delivered a written approval or disapproval of a Budget on the date that is 10 days prior to the beginning of the applicable quarter, such Budget shall be deemed approved 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;(iii) The Manager shall provide the Reporting Parties with an invoice for all estimated Pass-Through Expenses and T&E Expenses included in a Budget for each applicable calendar month, (a) after such Budget is approved, and (b) in advance of, and in any case at least 10 days prior to, the beginning of the applicable calendar month (the "**Estimated Invoice**"). The Company shall pay each Estimated Invoice on the first Business Day of the applicable calendar month. Promptly following the end of each calendar month, the Manager shall provide the Reporting Parties with an invoice in an amount equal to (A) the aggregate amount of Pass-Through Expenses and T&E Expenses actually incurred for the applicable month, minus (B) the aggregate amount of any payments made by the Company towards the Estimated Invoice for the applicable month ("**True-Up Invoice**"). The Company shall pay any True-Up Invoice that is in a positive amount (i.e., indicating underpayment by the Company) within 10 days of receipt. The Manager shall issue a credit to the Company for the amount of any True-Up Invoice that is in a negative amount ("**True-Up Credit**"). Any True-Up Credit issued shall be applied to the Company's payment of any currently due, or future, Estimated Invoices or True-Up Invoices. The Manager shall not be responsible for any failures or delays, including failures or delays in the performance of Services, caused directly or indirectly by the Company's failure to pay Estimated Invoices as provided in the foregoing. At the end of the Term (as extended from time to time) and any Transition Period, subject to <u>Section 2(d)</u>, (x) to the extent there are any Project Based Mining Management Fee Adjustments not previously deducted from the Mining Management Fee, the Manager shall pay to the Company by wire transfer of immediately available funds amounts equal to any such Project Based Mining Management Fee Adjustments; and (y) to the extent there are any True-Up Credits not previously applied to Estimated Invoices or True-Up Invoices, the Manager shall pay to the Company by wire transfer of immediately available funds amounts equal to such True-Up Credits.

6. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Term of this Agreement and thereafter, the parties hereto shall, and shall instruct their respective Representatives to, maintain in confidence and not disclose the other party's financial, technical, sales, marketing, development, personnel, and other information, records, or data, including, without limitation, customer lists, supplier lists, trade secrets, designs, product formulations, product specifications or any other proprietary or confidential information, however recorded or preserved, whether written or oral (any such information, "**Confidential Information**"). Each party hereto shall use the same degree of care, but no less than reasonable care, to protect the other party's Confidential Information as it uses to protect its own confidential or proprietary information of like nature. Unless otherwise authorized in any other agreement between the parties, any party receiving any Confidential Information of the other party (the "**Receiving Party**") may use Confidential Information only for the purposes of fulfilling its obligations or exercising rights under this Agreement (the "**Permitted Purpose**"). Any Receiving Party may disclose such Confidential Information only to its Representatives who have a need to know such information for the Permitted Purpose and who have been advised of the terms of this <u>Section 6</u> and the Receiving Party shall be liable for any breach of these confidentiality provisions by such persons; <u>provided</u>, <u>however</u>, that any Receiving Party may disclose such Confidential Information to the extent such Confidential Information is required to be disclosed by a Governmental Order, in which case the Receiving Party shall promptly notify, to the extent possible, the disclosing party (the "**Disclosing Party**"), and take reasonable steps to assist in contesting such Governmental Order or in protecting the Disclosing Party's rights prior to disclosure, and in which case the Receiving Party shall only disclose such portion of Confidential Information that it is advised by its counsel in writing that it is legally bound to disclose under such Governmental Order. For the purposes of this Agreement, (A) "**Governmental Order**" means any order, writ, judgment, injunction, decree, stipulation, determination, or award entered by or with any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction, and (B) a "**Representative**" of any specified person is such person's officers, directors, partners, trustees, executors, employees, contractors (including subcontractors), agents, attorneys, accountants and advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, "**Confidential Information**" shall not include any information that the Receiving Party can demonstrate: (i) was publicly known at the time of disclosure to it, or has become publicly known through no act of the Receiving Party or its Representatives in breach of this <u>Section 6</u>; (ii) was received from a third party without a duty of confidentiality; or (iii) except in the case of Manager-Developed IP, was developed by it independently without any reliance on, use of or reference to the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon demand by the Disclosing Party at any time, or upon expiration or termination of this Agreement with respect to any Service, the Receiving Party agrees promptly to return or destroy, at the Receiving Party's option, all Confidential Information. If such Confidential Information is destroyed, an authorized officer of the Receiving Party shall certify to such destruction in writing; <u>provided</u>, <u>however</u>, that Receiving Party or its Representatives may retain copies of such materials to the extent necessary to comply with applicable law or regulation or in connection with electronic archiving practices (provided any information so maintained will remain subject to the confidentiality obligations of this Agreement).

7. <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Manager and its Affiliates has, independent of the Services, developed, created, conceived, reduced to practice, or acquired, and shall continue to develop, create, conceive, reduce to practice, and acquire, Intellectual Property Rights that the Manager may use or access for purposes of providing the Services, and including all customizations, enhancements, improvements and other modifications thereof developed by or on behalf of the Manager ("**Manager Background IP**"). The Company acknowledges that nothing contained in this Agreement shall transfer or assign any ownership interest in or to any Manager Background IP to the Company. Nothing in this Agreement shall be deemed to grant either party or any third party acting on behalf of either party any implied license to, or right under or to, any Manager Background IP. Subject to the foregoing, the Manager hereby grants the Company a worldwide, fully paid up, royalty-free, non-transferable (except to the successors and assigns of the Company as permitted by this Agreement), sublicensable (through multiple tiers), non-exclusive and irrevocable (except that if this Agreement is terminated before the end of the Term such license will survive until the end of any Transition Period, notwithstanding termination of this Agreement) license during the Term and any Transition Period to use the Manager Background IP provided in the course of the Services solely for internal business purposes of the Company or its Affiliates. The Company shall not, and shall not permit any third party to, reverse engineer, disassemble or decompile Manager Background IP for any purpose. For the purposes of this Agreement, "**Intellectual Property Rights**" means, all of the following and all rights therein, in all jurisdictions worldwide, (i) patents, utility models, inventions and discoveries, statutory invention registrations, invention disclosures, and industrial designs, (ii) trademarks, service marks, domain names, trade dress, trade names, website and social media user names, metatags, keywords and other website search terms, uniform resource locators, geographical indications, and other identifiers of source or goodwill, including the goodwill connected with the use thereof and symbolized thereby, (iii) copyrights, moral rights, works of authorship (including software) and rights in data and databases, (iv) registrations, applications, renewals, extensions, reissues, divisions, continuations, continuations in- part and reexaminations for any of the foregoing in (i)-(iii), and (v) confidential and proprietary information, including trade secrets, know-how and invention 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;(b) All Intellectual Property Rights developed, created, conceived, or reduced to practice by employees or consultants of the Manager or its Affiliates in providing Services ("**Manager-Developed IP**"), shall be owned by the Manager. For the avoidance of doubt, Manager-Developed IP shall not include any schematics, site blueprints, diagrams, or similar technical materials that are specific to the Company's facilities, operations or projects. The Manager hereby grants the Company and its Affiliates and representatives a worldwide, royalty-free, fully paid-up, perpetual, irrevocable, sublicensable (through multiple tiers) license to use any Manager-Developed IP provided to the Company as part of the Services (and, for the avoidance of doubt, such license shall be automatically assigned to any successor or acquiror of the Company without any consent or notice being required from the Manager).

&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) Ownership and licensing of any Intellectual Property Rights developed, created, conceived, or reduced to practice by Manager Personnel, whether solely or jointly with employees or consultants of the Company, in connection with a Company-commissioned research and development effort that the Company has acknowledged in writing and that is not Manager-Developed IP, shall be established pursuant to a separate written agreement between the Company and the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Manager hereby represents and warrants that it has and will maintain all necessary rights, authorizations and consents to grant or assign the rights and licenses granted or assigned under this <u>Section 7</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;(e) "**Software**" means both of (i) the miner management software referred to as the "Operato**r**" and (ii) curtailment management software referred to as the "Reactor." The Manager shall provide reasonable support and assistance for the implementation and use of the Software, as reasonably requested by the Company, including all updates thereto as they are released or implemented. The Software constitutes "**Manager Background IP**"; <u>provided</u>, <u>however</u>, that the license granted hereunder shall not be sublicensable with respect to the Software. For clarity, the Software and any updates, modifications or improvements thereto, do not constitute Manager-Developed IP or materials or work product contemplated by <u>Section 7(b)</u>. Upon receiving or providing notice of the termination or non-renewal of this Agreement, the Manager shall use commercially reasonable efforts to enable, support, and facilitate the Company's transition to alternative software or services to replace the functionality of the US Bitcoin IP, including the Company's development and installation of such alternative software and related data and systems migration, in accordance with <u>Section 2(d)(ii)</u> (at Company's expense); <u>provided</u>, <u>however</u>, that Manager shall not be obligated to incur any out of pocket costs in connection with such transition.

8. <u>Limitation of Liability</u>. Neither the Manager nor the Company nor any of their respective officers, directors, managers, principals, stockholders,
partners, members, employees, agents, representatives, and Affiliates (each a "**Related Party**" and, collectively, the
" **Related Parties**") shall be liable to the other party or any of their respective Affiliates for any Losses or expense
arising out of or in connection with the performance of or failure to perform any obligations contemplated by this Agreement, in excess
of $10,000,000 in the aggregate (the "**Liability Cap** "), unless such Losses, or expense shall be proven to result directly
from the gross negligence, willful misconduct, fraud, knowing violation of law or breach of <u>Section 6</u> by such person, or such person's
indemnification obligations pursuant to <u>Section 9</u> (the "**Liability Exceptions** "), subject to the last sentence
of this <u>Section 8</u>. Except for the Liability Exceptions, in no event will either party be liable to the other for special, indirect,
punitive, or consequential damages, including, without limitation, loss of profits or lost business. In addition, the Liability Cap shall
not apply to: (i) with respect to the Company's liability, (A) lower any amounts owed pursuant to <u>Section 2(d)</u>, (B) any termination
payment due under this Agreement, (C) any accrued and unpaid amounts prior to the termination and/or expiration of this Agreement, (D)
any amounts payable to the Manager that are disputed but are subsequently determined to be due and payable in accordance with this Agreement,
(E) any costs and/or expenses due under contracts or agreements with third-parties which have been approved by the Board (including Losses
arising from termination or other breakage payments), (F) damages resulting from the Company's breach of <u>Section 6</u> (*Confidentiality*)
or <u>Section 7</u> (*Intellectual Property*), (G) amounts due pursuant to, or damages arising under, Definitive Agreements, and
(H) reasonable expenses incurred by the Manager in enforcing its rights under this Agreement against the Company; and (ii) with respect
to the Manager's liability, (A) damages resulting from the Manager's breach of <u>Section 6</u> (*Confidentiality*) or <u>Section 7</u> (*Intellectual Property*) and (B) amounts due pursuant to, or damages arising under, Definitive Agreements.

9. <u>Indemnification; Offset</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except in connection with matters contemplated by <u>Section 9(b)</u> and subject to <u>Section 9(c)</u>, the Company shall indemnify and hold harmless the Manager and each of its Related Parties (each, a "**Manager Indemnified Party**" or for the purposes of <u>Section 9(c)</u>, an "**Indemnified Party**") from and against any and all losses, actions, damages, and liabilities, joint or several ("**Losses**") to the extent arising from any claim, action or demand brought by any third party and relating to or arising out of the Company's gross negligence, willful misconduct fraud or knowing violation of law, and the Company will reimburse any Manager Indemnified Party for costs and expenses incurred in defending such third party claims, actions or demands subject to, and in accordance with, <u>Section 9(c)</u>. Notwithstanding the foregoing, the Company will not be required to indemnify any Manager Indemnified Party under this <u>Section 9(a)</u> to the extent that the Loss is determined by a court to have resulted from the gross negligence, willful misconduct or fraud, by such Manager Indemnified Party. The reimbursement and indemnity obligations of the Company under this <u>Section 9</u> shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and conditions to any Manager Indemnified Party, and shall be binding upon and inure to the benefit of any successors, assigns, heirs, and personal representatives of the parties hereto and any Manager Indemnified Party. Notwithstanding anything to the contrary in this Agreement, the scope of the indemnity provided by the Company in this <u>Section 9</u> shall not extent to any matters for which the Company is entitled to be indemnified pursuant to the Lancium 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;(b) Except in connection with matters contemplated by <u>Section 9(a)</u> and subject to <u>Section 9(c)</u>, the Manager shall indemnify and hold harmless the Company and each of its officers, directors, managers, principals, stockholders, partners, members, employees, agents, representatives, and Affiliates (as applicable, a "**Company Indemnified Party**" or for the purposes of <u>Section 9(c)</u>, an "**Indemnified Party**") from and against any and all Losses to the extent arising from any claim, action, or demand brought by any third party and relating to or arising out of the Manager's gross negligence, willful misconduct, fraud, knowing violation of law or alleging that any Manager-Developed IP, the Services, or any Company Indemnified Party's use of either of the foregoing in accordance with this Agreement infringes, misappropriates, or otherwise violates any Intellectual Property Rights, except to the extent such alleged infringement, misappropriation, or other violation arises out of the performance of the Services pursuant to the Company's instructions regarding the performance of such Services, where the infringement, misappropriation, or other violation could not have been avoided while following the Company's instructions. The Manager will reimburse any Company Indemnified Party for costs and expenses subject to, and in accordance with, <u>Section 9(c)</u>. Notwithstanding the foregoing, the Manager will not be required to indemnify any Company Indemnified Party under this <u>Section 9(b)</u> to the extent that any Loss is determined by a court to have resulted from the breach of this Agreement, gross negligence, willful misconduct, fraud or knowing violation of law by such Company Indemnified Party. The reimbursement and indemnity obligations of the Manager under this <u>Section 9(b)</u> shall be in addition to any liability which the Manager may otherwise have, shall extend upon the same terms and conditions to any Company Indemnified Party, and shall be binding upon and inure to the benefit of any successors, assigns, heirs, and personal representatives of the parties hereto and any Company Indemnified 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;(c) <u>Third Party Claims Indemnification Procedure</u>. An Indemnified Party shall promptly notify the Company or the Manager, as applicable (each, an "**Indemnitor**") in writing as to any claim, action or demand for which indemnity may be sought under this <u>Section 9</u>, but the omission to so notify the Indemnitor will not relieve the Indemnitor from any liability which it may have to any Indemnified Party hereunder to the extent that the Indemnitor is not materially prejudiced as a result of such failure. After such notice to the Indemnitor, the Indemnitor shall be entitled to participate in and assume the defense thereof (subject to the limitations set forth in the next sentence, if applicable) with counsel reasonably satisfactory to such Indemnified Party to represent such Indemnified Party in such action and shall pay as incurred the fees and expenses of such counsel related to such action. In any action, any Indemnified Party shall have the right to retain its own separate counsel at such Indemnified Party's own expense and not subject to reimbursement by the Indemnitor; <u>provided</u>, <u>however</u>, that the Indemnitor shall pay as incurred the fees and expenses of such counsel incurred in connection with investigating, preparing, defending, paying, settling or compromising any action if (i) to the extent that the parties to such action include both the Indemnified Party and the Indemnitor and there may be legal defenses available to such Indemnified Party which are different from or additional to those available to the Indemnitor; (ii) the use of counsel chosen by the Indemnitor to represent both the Indemnitor and such Indemnified Party would present such counsel with an actual or potential conflict of interest; (iii) the Indemnitor shall not have employed satisfactory counsel to represent the Indemnified Party within a reasonable time after notice of the institution of such action; or (iv) the Indemnitor shall authorize the Indemnified Party to employ separate counsel (in addition to any local counsel) at the expense of the Indemnitor. The Indemnitor shall not, in connection with any action, be liable for the fees and expenses of more than one separate counsel (in addition to any local counsel) for all Indemnified Parties, except to the extent the use of one counsel to represent all Indemnified Parties would present such counsel with an actual or potential conflict of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Offset</u>. Notwithstanding anything to the contrary in this Agreement, the Company may, in its sole discretion, offset all or any portion of any amounts owed to the Manager under this Agreement (including the Mining Management Fee and any fees owed for Transition Services) against (i) any amounts that are determined by a court of competent jurisdiction, or another person mutually agreed in writing by the parties, to be payable or owing to a Company Indemnified Party and (ii) any amounts that Manager owes to the Company pursuant to <u>Section 4(e)(xi)</u>; <u>provided, that</u>, upon termination of this Agreement prior to the end of any quarter with respect to which the Mining Management Fee is prepaid pursuant to <u>Section 5(a)</u>, the Company may, in its sole discretion, offset against any fees owed for Transition Services or require that Manager refund the Company within thirty (30) days the Mining Management Fee paid in excess of the Services actually performed for such quarter, net of any Project Based Mining Management Fee Adjustments (a pro rata payment equal to the Mining Management Fee, net of any Project Based Mining Management Fee Adjustments, multiplied by a fraction, the numerator of which is the difference of 92 and the number of days Services were performed for such period and the denominator for which is 92).

10. <u>Non-Solicitation</u>. The Company, on behalf of itself and its Affiliates, hereby covenants and agrees
that, for the period beginning on the date of expiration or termination of this Agreement and ending on the 2-year anniversary of such
date, it shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or solicit for employment any of the employees
of the Manager or its Affiliates (the "**Restricted Employees** "); <u>provided</u>, <u>that</u>, from and after the expiration
or termination of this Agreement (the "**Non-Solicit Fallaway Date** "), nothing in this <u>Section 10</u> shall apply to
any site level employees (including any site level management employees but excluding any officers, executives and management employees
of the Manager or its Affiliates) that have worked at a Company site for fewer than twelve months ()"**Unrestricted Employees** "); <u>provided further</u> that at the Company's request, the Manager shall reasonably facilitate communications between an Unrestricted
Employee and the Company during the six month period prior to the Non-Solicit Fallaway Date for such Unrestricted Employee to be transferred
to the Company.

11. <u>Force Majeure.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 11(b)</u> below, the Manager shall not be liable or responsible to the Company (including for any applicable indemnification obligations of the Manager), nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in performing pursuant to <u>Sections 4(e)(i)</u> or <u>4(e)(vi)</u>, or performing the Services, when and to the extent the failure or delay is caused by or results from Excluded Events. "**Excluded Events**" means the following events: (i) acts of God; (ii) flood, fire, earthquake, or explosion; (iii) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot, or other civil unrest; (iv) embargoes, or blockades in effect on or after the date of this Agreement that relate to the subject of this Agreement; (v) national or regional emergency; (vi) changes to requirements imposed by applicable law; and (vii) action by any Governmental Authority. The failure or inability of the Manager to perform its Services and obligations under this Agreement due to an Excluded Event shall be excused for the duration of the Excluded Event. "**Governmental Authority**" means any federal, state, local, or foreign government or political subdivision thereof, or any agency or instrumentality of the government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority, or quasi-governmental authority (in each case of the foregoing, to the extent that the rules, regulations, or orders of this organization or authority have the force of law), or any arbitrator, court, or tribunal of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within 10 days of the occurrence of an Excluded Event, the Manager shall provide written notice to the Reporting Parties of such occurrence, explaining the nature or cause of the delay and stating the period of time the delay is expected to continue. If the Excluded Event lasts for more than 90 days, (i) for a period of 90 days after the occurrence of an Excluded Event, no reduction shall be made to the Mining Management Fee payable to the Manager under <u>Section 5</u>; and (ii) after such 90-day period (the "**Force Majeure Period**"), if the Excluded Event has resulted in the aggregate nameplate capacity (in megawatts) of Miners under Use below 200 megawatts, then in the duration of such Excluded Event, the Mining Management Fee payable to the Manager pursuant to this Agreement shall be reduced by, at the Company's election, up to a fraction of the Mining Management Fee, the numerator of which is the actual aggregate nameplate capacity (in megawatts) of the Miners under Use and the denominator of which is 200 megawatts; <u>provided</u>, <u>however</u>, that in the event the Company elects to use any Outside Service Provider to manage the Company's mining assets, as a result of which the average aggregate nameplate capacity (in megawatts) of Miners under Use for the 90-day period immediately prior to any Excluded Event (the "**Revised Capacity**") is below 200 megawatts, then after the Force Majeure Period, if the Excluded Event has resulted in the aggregate nameplate capacity (in megawatts) of Miners under Use below the Revised Capacity, then in the duration of such Excluded Event, the Mining Management Fee payable to the Manager pursuant to this Agreement shall be reduced to a fraction of the Mining Management Fee, the numerator of which is the actual aggregate nameplate capacity (in megawatts) of the Miners under Use and the denominator of which is the Revised Capacity (the "**Fee Reduction**"). In the event that an Excluded Event affects all or substantially all of the Company's Bitcoin mining assets, and such Excluded Event is in effect in excess of six months, then the Company shall not be required to pay any amounts that would otherwise be payable to the Manager under this Agreement and the Manager shall not be required to provide the Services hereunder for the duration of the time in excess of such six-month period until such time that the Excluded Event is resolved or the Company's Bitcoin mining assets otherwise resume operation, at which point the payment and provision of Services obligations under the Agreement shall resume. The Manager shall use commercially reasonable efforts to end the failure or delay and ensure the impact of an Excluded Event on the Manager's performance are minimized. In the event that there is a reduction in the Mining Management Fee payable to the Manager under this <u>Section 11(b)</u>, at the Company's election, the Company may offset the amount of such Mining Management Fee reduction against the next payment due to Manager under this Agreement or require the Manager to pay to the Company by wire transfer of immediately available cash the amount of such Mining Management Fee reduction. In the event that a Fee Reduction results in the Mining Management Fee on an annualized basis dropping below the Minimum Fee, then the Manager may elect not to perform the Services or complete or deliver the Projects under this Agreement, and if the Manager so elects the Company shall not be obligated to pay the Mining Management Fee, until such time that the Mining Management Fee on an annualized basis is at least equal to the Minimum Fee. "**Miners under Use**" shall refer to the miners and/or other computing power used to secure and validate digital asset networks managed by Manager or leased to (or otherwise made available to) the Manager from a third party, in each case of such miners or computing power, that are used in providing the Services. "**Minimum Fee**" shall mean an amount equal to $3,750,000.

&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) During the Term, the Manager shall maintain a business continuity and disaster recovery plan for the Services (the "**BCP/DR Plan**"). The Manager shall provide the Reporting Parties with a written summary of the BCP/DR Plan upon the reasonable written request of the Company. The Manager's performance shall only be excused pursuant to this <u>Section 11</u> to the extent that the Manager executes such BCP/DR Plan in the event of any Excluded Event, if applicable.

12. <u>Independent Contractor</u>. Nothing herein shall be construed to create a joint venture or partnership between the parties hereto or an employee/employer
relationship. The Manager shall be an independent contractor pursuant to this Agreement. Neither party hereto shall have any express or
implied right or authority to assume or create any obligations on behalf of or in the name of the other party or to bind the other party
to any contract, agreement, or undertaking with any third party. Nothing in this Agreement shall be deemed or construed to create or enlarge
any fiduciary duties and responsibilities of the Manager or any of its Related Parties, including without limitation in any of their respective
capacities as stockholders or directors of the Company.

13. <u>Press Releases</u>. Neither the Company nor the Manager shall make any public announcement of this Agreement or the transactions contemplated
by this Agreement without the consent of the other party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing,
either party may make such disclosures concerning the transactions contemplated by this Agreement as may be required by applicable law; <u>provided</u> the other party receives a description of the disclosures and a reasonable time to comment prior to public dissemination.

14. <u>Permissible Activities</u>. Subject to the foregoing and the obligation not to disclose or use any information of the Company (which disclosure
or use shall constitute a breach of this Agreement), nothing herein shall in any way preclude the Manager or its Affiliates or their respective
Related Parties from engaging in any business activities or from performing services for its or their own account or for the account of
others, including, without limitation, companies which may be in competition with the business conducted by the Company or any of its
Affiliates.

15. <u>Notices</u>.
 All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be
 deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if
 sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by e-mail of a PDF document (with
 confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after
 normal business hours of the recipient; or (d) on the third day after the date mailed by certified or registered mail, return
 receipt requested, postage prepaid. Such communications must be sent to the respective
parties at the addresses indicated below (or at such other address for a party as shall be specified in a notice given in accordance with
this <u>Section 15</u>).

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If to the Company: | &nbsp;&nbsp; 2323 Galiano Street, 2nd Floor<br> Coral Gables, Florida 33134<br> Email: \*\*\*<br> Attention: \*\*\* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to: | &nbsp;&nbsp;White & Case LLP<br> 111 South Wacker Drive, Suite 51000<br> Chicago, IL 606060<br> Email: \*\*\*; \*\*\*<br> Attention: \*\*\*; \*\*\* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Manager: | &nbsp;&nbsp;1101 Brickell Ave., N-1500<br> Miami, Florida 33131<br> Email: \*\*\*<br> Attention: \*\*\* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to: | &nbsp;&nbsp;Brown Rudnick LLP<br> 7 Times Square<br> New York, NY 10036<br> Email: \*\*\*, \*\*\*<br> Attention: \*\*\*, \*\*\* |

---

16. <u>Entire Agreement</u>. Except for (i) that certain side letter, (ii) that certain amendment to Plan Sponsor Contribution Agreement, (iii)
that certain amendment to Company bylaws, each dated as of the date hereof between the Company and the Manager, this Agreement constitutes
the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all
prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

17. <u>Successor and Assigns; Assignment</u>. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns. However, neither this Agreement nor any of the rights or obligations of the parties hereunder
may be transferred or assigned by any party hereto, without the written consent of the other party, except that (a) the Manager may assign
its rights and obligations hereunder to any of its Affiliates, a successor entity, in part or in full, as part of a separation of any
portion or division of the Company into one or more entities, whether existing or newly formed, including by way of spin-off, split-off,
carve-out, demerger, recapitalization, reorganization or similar transaction, or in connection with any sale of the Company or any sale
of all or substantially all of the business of the Company, and (b) the Company may assign its rights and obligations to any of its Affiliates,
a successor entity, in part or in full, as part of a separation of any portion or division of the Company into one or more entities, whether
existing or newly formed, including by way of spin-off, split-off, carve-out, demerger, recapitalization, reorganization or similar transaction,
or in connection with any sale of the Company or any sale of all or substantially all of the business of the Company.

18. <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the parties hereto and their respective successors and
permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable
right, benefit, or remedy of any nature whatsoever, under or by reason of this Agreement.

19. <u>Headings</u>.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

20. <u>Amendment and Modification; Waiver</u>. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by
each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and
signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any right,
remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power, or privilege.

21. <u>Severability</u>.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or
unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision
in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible
in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest
extent possible.

22. <u>Governing Law; Submission to Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the internal laws of
the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of New York. Any legal
suit, action, or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the
federal courts of the United States of America or the courts of the State of New York in each case located in the city of New York and
County of New York, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, or proceeding.
Service of process, summons, notice, or other document by mail to such party's address set forth herein shall be effective service
of process for any suit, action, or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any
objection to the laying of venue of any suit, action, or any proceeding in such courts and irrevocably waive and agree not to plead or
claim in any such court that any such suit, action, or proceeding brought in such court has been brought in an inconvenient forum.

23. <u>Waiver of Jury Trial</u>. Each party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any
legal action arising out of or relating to this Agreement or the transactions contemplated hereby. Each party to this Agreement certifies
and acknowledges that (a) no representative of the other party has represented, expressly or otherwise, that such other party would not
seek to enforce the foregoing waiver in the event of a legal action; (b) such party has considered the implications of this waiver; (c)
such party makes this waiver voluntarily; and (d) such party has been induced to enter into this Agreement by, among other things, the
mutual waivers and certifications in this <u>Section 23</u>.

24. <u>Counterparts</u>.
 This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
 to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of electronic
 transmission shall be deemed to have the same legal
effect as delivery of an original signed copy of this Agreement.

25. <u>No Strict Construction</u>. The parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the
parties, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement.

26. <u>Fees and Expense</u>. Except as otherwise set forth in this Agreement, each of the parties hereto shall
be solely responsible for and shall bear all of his, her or its own costs and expenses incident to its obligations under and in respect
of this Agreement and the transactions contemplated hereby, including any such costs and expenses incurred by any party hereto in connection
with the negotiation and preparation of this Agreement (including the fees and expenses of legal counsel, accountants, consultants or
other representatives).

27. <u>Interpretation</u>. Section and Exhibit
references in this Agreement are references to the corresponding Section or Exhibit to this Agreement, unless otherwise specified. All
Exhibits to this Agreement are hereby incorporated and made a part hereof as if set forth in full herein and are an integral part of this
Agreement. All references to instruments, documents, contracts and agreements are references to such instruments, documents, contracts
and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified. Unless expressly
provided to the contrary herein, the word "or" has the inclusive meaning "and/or," and the word "including"
shall mean "including but not limited to" and shall not be construed to limit any general statement that it follows to the
specific or similar items or matters immediately following it. Any reference in this Agreement to "$" shall mean U.S. dollars.
Any words imparting the singular number only shall include the plural and vice versa. The words such as "herein," "hereinafter,"
"hereof" and "hereunder" refer to this Agreement as a whole and not merely to a subdivision in which such words
appear unless the context otherwise requires. The division of this Agreement into Sections and other subdivisions and the insertion of
headings are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement.

[signature pages follow]

**IN WITNESS WHEREOF**, the parties hereto have executed this Amended and Restated Management Services Agreement on the date first written above.

---

| | |
|:---|:---|
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| By: | <u>/s/ Emmanuel Aidoo</u> |
| Name: | Emmanuel Aidoo |
| Title: | Chairman, Board of Directors |
| **U.S. DATA MANAGEMENT GROUP, LLC** | **U.S. DATA MANAGEMENT GROUP, LLC** |
| By: | <u>/s/ Victor Semah</u> |
| Name: | Victor Semah |
| Title: | Authorized Signatory |

---

Signature Page

Amended and Restated Management Agreement

***Privileged and confidential***

W&C Draft: June 4, 2024

**<u>Exhibit A</u>**

**Services**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; <u>No.</u> | &nbsp;&nbsp;<u>Description of Service / Activity</u> | &nbsp;&nbsp;<u>Fee Structure</u> |
| &nbsp;&nbsp;**1.** | &nbsp;&nbsp;Management, oversight, and strategy for the Company's Bitcoin mining assets. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**2.** | &nbsp;&nbsp;Use and integration of Manager's proprietary miner management software and report generation software which includes repair ticket generation, total site parameter viewing portal, and automated site infrastructure monitoring for Bitcoin mining. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**3.** | &nbsp;&nbsp;Managing all Bitcoin mining facilities owned by the Company as of the Effective Date. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**4.** | &nbsp;&nbsp;Managing strategy and management of all Bitcoin mining equipment located at the mining facility owned by the Company. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**5.** | &nbsp;&nbsp;Managing subcontractors including on-site supervision as well as contract oversight and compliance. Subcontractors include but not limited to: security services, maintenance vendors, auditors, tax consultants. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**6.** | &nbsp;&nbsp;Customer contract management will be performed by the Manager through its hosting team except for customer contract management services related to a substantial expansion in the number of contract relationships and the Company's business model which requires the Manager to make additional dedicated hires. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**7.** | &nbsp;&nbsp;Send material adverse effect notifications for any Customer defaults, litigation or threatened litigation, casualty, condemnation, violation of Laws, denial of a permit, or notice of violation or noncompliance received from a Governmental Authority. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**8.** | &nbsp;&nbsp;Maintain GAAP-compliant books and records for each Bitcoin mining facility. Keep such records for at least five (5) years, provide audited and unaudited financial statements in accordance with any upstream financing docs (external tax advisors and/or audits are a pass-through cost). | &nbsp;&nbsp;Fixed fee |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; <u>No.</u> | &nbsp;&nbsp;<u>Description of Service / Activity</u> | &nbsp;&nbsp;<u>Fee Structure</u> |
| &nbsp;&nbsp;9. | &nbsp;&nbsp;Monthly and quarterly operating reports from Bitcoin mining facilities using Manager's template. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**10.** | &nbsp;&nbsp;Maintaining and training staff in accordance with all applicable standards at Bitcoin mining facilities. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**11.** | &nbsp;&nbsp;Creating standard operating procedures for safety standards herein and requiring subcontractors to do the same at Bitcoin mining facilities. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**12.** | &nbsp;&nbsp;Managing strategy and management of all Bitcoin mining equipment owned by the Company and located at Bitcoin mining facilities owned by third parties. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**13.** | &nbsp;&nbsp;Overseeing strategy and development of new Bitcoin mining facilities owned by, or to be owned by the Company. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**14.** | &nbsp;&nbsp;The Manager will provide the Debtors and the Company with access to energy trading desks, as well as its energy management team, at no additional cost above the Mining Management Fee. | &nbsp;&nbsp;Fixed fee |
| &nbsp;&nbsp;**15.** | &nbsp;&nbsp;Start-up costs (e.g., network servers, vehicles, forklift, etc.) and customization of software specifically requested and pre-approved by the Company and development of upgrades, updates, modifications, enhancements or improvements to such software. For example, custom user interfaces or features requested by the Company, or any other dedicated services or resources that are needed solely for the Company's operations, other than use and integration of the Manager's proprietary miner management software and report generation software referred to in #2 above. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**16.** | &nbsp;&nbsp;Site operations labor and recruitment costs (e.g., facility/maintenance technicians, miner/hashrate technicians, security, and supervisors). | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**17.** | &nbsp;&nbsp;Maintenance capital expenditures, consumable/non-consumable infrastructure, electrical maintenance, container maintenance, office and building maintenance, preventative maintenance and operations and maintenance activities (i.e., replacement of filters, fuses, breakers, technician tools, ongoing electrical operations and maintenance activities, site vehicle maintenance, etc.) | &nbsp;&nbsp;Pass-Through Expenses |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; <u>No.</u> | &nbsp;&nbsp;<u>Description of Service / Activity</u> | &nbsp;&nbsp;<u>Fee Structure</u> |
| &nbsp;&nbsp;**18.** | &nbsp;&nbsp;**Maintain spare parts inventory. To be stored on-site and as needed for replacement of broken mining equipment, filters, fuses, breakers, and technician tools, ongoing electrical operations and maintenance activities (excluding transformers) and site vehicle maintenance.** | &nbsp;&nbsp;**Pass-Through Expenses** |
| &nbsp;&nbsp;**19.** | &nbsp;&nbsp;Third party contractors (e.g., electrical engineers, network engineers, security, safety, etc.). | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**20.** | &nbsp;&nbsp;Office supplies, job supplies & other business expenses. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**21.** | &nbsp;&nbsp;Site utilities expenses (e.g., electricity, water, internet, trash). | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**22.** | &nbsp;&nbsp;Customer success team to interface with customer on contract, operational and billing matters. Customer care systems processes and response infrastructure costs related to third-parties. This includes any obligations owed to the customer as well as revenue collection. This also includes dispute resolution to the point where an issue rises to the level of litigation, wherein the contractor should use reasonable efforts to support litigation or collections agency. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**23.** | &nbsp;&nbsp;Hours dedicated to customer reporting and site monitoring from the Nucleus (Network Operations Center) or software teams. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**24.** | &nbsp;&nbsp;Accounting and reporting (dedicated hires to maintain accounting books, reporting requirements, budget proposals under the Agreement, provide audit support, management or support of external parties such as auditors or tax teams, billing/collections of customers, etc.). Costs of external firms for audits or taxes. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**25.** | &nbsp;&nbsp;Insurance related expenses. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**26.** | &nbsp;&nbsp;Additional technology services related to third parties needed to properly execute the obligations under the Agreement. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**27.** | &nbsp;&nbsp;Allocated compensation hours for dedicated corporate supervision for maintenance and operations including per diem rates for time, transportation, housing, and food. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**28.** | &nbsp;&nbsp;Any legal support or fees required in servicing the obligations under the Agreement. | &nbsp;&nbsp;Pass-Through Expenses |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; <u>No.</u> | &nbsp;&nbsp;<u>Description of Service / Activity</u> | &nbsp;&nbsp;<u>Fee Structure</u> |
| &nbsp;&nbsp;**29.** | &nbsp;&nbsp;**Any other obligations required by the Manager under the Agreement or reasonable requests such as response to legal inquiries, response to tax matters, due diligence arising from any sale process, etc.** | &nbsp;&nbsp;**Pass-Through Expenses** |
| &nbsp;&nbsp;**30.** | &nbsp;&nbsp;Any contractors, engineers, or hired personnel dedicated to site builds. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**31.** | &nbsp;&nbsp;Any costs related to working with third party energy companies or dedicated asset management personnel. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**32.** | &nbsp;&nbsp;Any additional staff hired by the Manager with the Company's prior written approval for the purposes of the Manager providing the Company with customer contract management services related to a substantial expansion in the number of contract relationships and the Company's business model which requires the Manager to make additional dedicated hires. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**33.** | &nbsp;&nbsp;Effort or resources requested by the Company in order to maintain GAAP-compliant books and records for each Bitcoin mining facility that are dedicated resources to operate software or processes that are different to what the Manager would otherwise provide for itself or its other customers. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**34.** | &nbsp;&nbsp;Specialized training of staff beyond what training otherwise conducted by the Manager in its own business or that would otherwise be required to run site operations. | &nbsp;&nbsp;Pass-Through Expenses |
| &nbsp;&nbsp;**35.** | &nbsp;&nbsp;Discretionary advisory or implementation projects that are beyond the scope of base management services. For example, the base management services shall include monthly/quarterly reporting and reviews on items such as financial and operational performance, market outlook, competitive landscape, etc., whereas staff that the Company requests be seconded to the Company shall constitute a pass-through expense. | &nbsp;&nbsp;Pass-Through Expenses |

---

**<u>Exhibit B</u>**

**Projects**

The Manager and the Company acknowledge that the covenants and targets/milestones in this <u>Exhibit B</u>, and the transactions contemplated thereby, may be documented in one or more agreements by and among the Manager, the Company, and/or their Affiliates, and any third parties thereto, that are separate from this Agreement ("**Definitive Agreements**"). To the extent that the provisions of a Definitive Agreement directly conflict with those contained in this <u>Exhibit B</u>, the terms of the applicable obligation or condition herein shall be deemed modified or waived, in whole or in part, to reflect the applicable provisions of the Definitive Agreement; <u>provided</u>, <u>that</u> any silence on an obligation or condition in such Definitive Agreement shall not be construed as an intention to waive such obligation or condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Throughout the Term until delivery of a Contributed Site, the Manager shall use its commercially reasonable
efforts to contribute to the Company the leasehold and development rights to a 240 MW behind-the-meter site on economic terms no worse
than those available to the Manager identified to the Debtors and the Committee during the bid process, subject to KYC, approval, and
commercial discussions with the independent power producer jointly developing such site. To the extent that the Manager is unable to contribute
such 240 MW site, it shall use commercially reasonable efforts to contribute a site (or sites) of substantially similar economics. In
connection with the contribution of such site(s) and as a condition to such contribution, the parties shall enter into a separate agreement
providing for a fifteen (15)-year royalty fee, payable to Manager on a monthly basis in arrears for the life of the project developed
at such site, in an amount equal to $2/MWh multiplied by the total energy consumed at such site for the relevant month. The site contributed
to Company by Manager complying with the requirements of this Paragraph 1 of Exhibit B is a "**Contributed Site**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Manager has contributed to the Company its right to enter into a strategic partnership agreement with
an ASIC manufacturer that will give the Company the option to scale up to 180,000 machines and ultimately own up to 90,000 new machines
(at the Company's option) on the terms set forth in the accompanying letter agreement. The Manager will use commercially reasonable
efforts to support the negotiation by the Company of definitive agreements with such manufacturer for such strategic partnership. The
Manager shall be entitled to 25% of the economic and ownership benefits received by the Company as a result of the contribution contemplated
by the first sentence of this paragraph 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Manager does hereby assign to the Company all of its rights and obligations pursuant to the letter
agreement, dated as of May 16, 2023, by and between the Manager and Inchigle Technology Hong Kong Limited. Should the Company in its sole
discretion use of any such coupons contemplated by such letter agreement for the purchases of such equipment, then the Company shall retain
75% of the economic benefits realized from such coupons and shall pay the Manager the remaining 25% of the economic benefits realized.

**Projects; Project Based Mining Management Fee Adjustments**

---

| | |
|:---|:---|
| &nbsp;&nbsp; <u>Target / Milestone</u> | &nbsp;&nbsp;<u>Project Based Mining Management Fee Adjustment</u> |
| &nbsp;&nbsp; *200MW Energized Milestone*:<br>The Manager shall build and energize 200 megawatts ("**MW**") of Bitcoin mining facilities (the "**200 MW Facility**") which shall be housed in one or more standalone "cathedral design" buildings consistent with drawings or plans shown to the Debtors and Committee during the bid process (or such other design as the Debtors, the Committee, and Manager reasonably agree upon) which shall be energized by the Cedarvale Deadline, as long as the funding of **$79,000,000** is approved by the Board with respect to low and medium voltage infrastructure. | &nbsp;&nbsp; $1,000,000 per month that the Cedarvale Deadline is delayed, up to a maximum of $6,000,000.<br>Applicable to the Mining Management Fees, and any Termination Fees, for the year in which such delays occurred, payable following the occurrence of such delay. |
| &nbsp;&nbsp; *400MW Infrastructure Construction Cap*:<br>The construction of medium voltage to plug ready forced-air infrastructure with respect to the 100 MW Facility referenced above, shall be capped at $395,000 per MW for a period of 24 months after the **Effective Date**; any costs in excess of the cap shall be offset against future Mining Management Fees. The same capped construction and allocation of costs in excess shall apply to additional developments for medium voltage to plug ready infrastructure up to an additional 300 MW in excess of the 100 MW for the 100 MW Facility (for a total of 400 MW). These capped construction costs shall also apply for the period after 24 months from the **Effective Date** to the end of the Term, but shall be subject to adjustment for material changes to the CPI, underlying commodity prices of raw materials, or Bitcoin prices during such later period.<br> In respect of the Cedarvale Site, the $395,000 per MW cap described above shall be reduced accordingly to reflect the actual construction costs contributed by the Company prior to the date of this Agreement.<br>| &nbsp;&nbsp; **Costs in excess of the cap**<br>**Applicable to the Mining Management Fee for the year during which the excess costs are incurred** |
| &nbsp;&nbsp; *Site Employee Milestone*:<br>Manager shall provide all site level employees (excluding security) for all existing Company self-mining facilities and any facilities developed by the Company for cost, but in any event subject to an annual cost cap calculated at $2 million per 100 MW; to the extent the cost exceeds the annual $2 million per 100 MW cap, any excess shall be deducted from the Mining Management Fee; <u>provided</u>, <u>that</u> to the extent there are existing obligations of the Debtors with respect to existing Company self-mining facilities that are not replaced by Manager the annual $2 million cap shall not apply to such obligations. | &nbsp;&nbsp; Costs in excess of the cap<br>Applicable to the Mining Management Fee for the year during which the excess costs are incurred |

---

**<u>Exhibit C</u>**

**Insurance Requirements**

1) <u>Manager's Minimum Insurance Requirements</u>:

&nbsp;&nbsp;&nbsp;&nbsp;a) Commercial General Liability with limits no less than $1,000,000 per occurrence and $2,000,000 in the
aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;b) Worker's Compensation and Employer's Liability.

Worker's Compensation with limits no less than the minimum amount required by applicable law.\*

Employer's Liability with limits no less than:\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) $1,000,000 Bodily Injury by Accident (Each Accident)

ii) $1,000,000 Bodily Injury by Disease (Policy Limit)

iii) $1,000,000 Bodily Injury by Disease (Each Employee)

&nbsp;&nbsp;&nbsp;&nbsp;c) Employment Practices Liability insurance in an amount not less than $1,000,000.\*

&nbsp;&nbsp;&nbsp;&nbsp;d) Automobile – Bodily Injury and Property Damage with no less than $1,000,000 combined single limit
per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;e) Umbrella Form Excess Liability Insurance in excess of the limited provided by the commercial general liability,

\* As long as the Manager's employees are part of a Professional Employer Organization ("**PEO**"), the insurance under (b) and (c) may be provided through such PEO.

2) <u>Company's Minimum Insurance Requirements</u>:

&nbsp;&nbsp;&nbsp;&nbsp;a) Property Asset Coverage of $500,000 deductible per occurrence up to the total replacement cost for each
facility.

&nbsp;&nbsp;&nbsp;&nbsp;b) Commercial General Liability with limits no less than $1,000,000 per occurrence and $2,000,000 in the
aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;c) Worker's Compensation and Employer's Liability.

Worker's Compensation with limits no less than the minimum amount required by applicable law.

Employer's Liability with limits no less than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) $1,000,000 Bodily Injury by Accident (Each Accident)

ii) $1,000,000 Bodily Injury by Disease (Policy Limit)

iii) $1,000,000 Bodily Injury by Disease (Each Employee)

&nbsp;&nbsp;&nbsp;&nbsp;d) Automobile – Bodily Injury and Property Damage with no less than $1,000,000 combined single limit
per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;e) Umbrella Form Excess Liability Insurance in excess of the limited provided by the commercial general liability,

3) All insurance policies required of a party (the "**Insured Party**") pursuant to this <u>Exhibit C</u> shall be issued by insurance companies or a PEO, as applicable, reasonably acceptable to the Company (in the case where the Insured Party is the Manager) or the Manager (in the case where the Insured Party is the Company) (the "**Other Party**").

4) The Insured Party shall furnish certificates of insurance at the time of the execution of this Agreement evidence insurance coverage as required hereunder. Upon the Other Party's request, the Insured Party will provide copies of policies with applicable exclusions and endorsements. The Insured Party must provide the Other Party with at least thirty (30) days' prior written notice of cancellation or material change in coverage. The Other Party shall be named as additional insured and/or loss payee as applicable (subject to applicable law and any required insurance company or PEO consent). A waiver of subrogation in favor of the Other Party shall be provided in connection with the Workers' Compensation insurance policies specified above.

**<u>Exhibit D</u>**

**Prohibited Change of Control Parties**

Any party listed below, including any Affiliate of such party, or any of their respective successors by way of reorganization, merger, acquisition or otherwise.

1. Core Scientific

2. Mawson Infrastructure Group

3. Riot Platforms

4. Marathon Digital Holdings

5. Iris Energy

6. Cleanspark

7. Galaxy Digital

8. TeraWulf

9. Argo Blockchain

10. Greenidge Generation

11. Stronghold

12. HIVE Blockchain

13. Bit Digital

14. Frontier

15. Bitdeer

16. Global[X]Digital

17. EZ Blockchain

**<u>Exhibit E</u>**

**Calculation of EH/s Target**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **<u>Site</u>** | &nbsp;&nbsp;**<u>Site MW</u>** | &nbsp;&nbsp;**<u>Exahash</u>** |
| &nbsp;&nbsp;**Garden** | &nbsp;&nbsp;**12** | &nbsp;&nbsp;**0.35** |
| &nbsp;&nbsp;**Rebel** | &nbsp;&nbsp;**25** | &nbsp;&nbsp;**0.76** |
| &nbsp;&nbsp;**Stiles** | &nbsp;&nbsp;**20** | &nbsp;&nbsp;**0.65** |
| &nbsp;&nbsp;**East Stiles** | &nbsp;&nbsp;**30** | &nbsp;&nbsp;**1.01** |
| &nbsp;&nbsp;**<u>Total</u>** | &nbsp;&nbsp;**87** | &nbsp;&nbsp;**2.77** |

---

**<u>Exhibit F-1</u>**

**Cedarvale Services**

The Cedarvale Project is comprised of two parts identified as Project 1 and Project 2 of this <u>Exhibit F-1</u>. Project 1 is a 40MW modular container project which will allow for the expedited deployment of offline mining rigs at the Cedarvale Site. Project 2 is a 200MW project involving the design and development of four mining buildings at the Cedarvale Site. Services for Project 1 and Project 2 will proceed concurrently. The Cedarvale Services to be provided for Project 1 and Project 2 are set forth below.

The Cedarvale Services set forth below provide an outline of key Cedarvale Services to be provided by Manager. The Cedarvale Services, however, may include other similar or related Cedarvale Services which will be provided by Manager to further the development of the Cedarvale Project, including Cedarvale Services related to design reviews, contract negotiations, construction management, oversight of equipment installation, project commissioning and other design and development activities. The list of Cedarvale Services included in this <u>Exhibit F-1</u> is not an exhaustive list.

**<u>A. Project 1 Services</u>**

The following list outlines the Cedarvale Services that Manager has completed for Project 1:

&nbsp;&nbsp;&nbsp;&nbsp;1. Engage an appropriate party for all design sets and plans for the Cedarvale Project. Manager will use
these design sets to value engineer the Cedarvale Project and validate assumptions about the Project 1 design and development process.

&nbsp;&nbsp;&nbsp;&nbsp;2. Initiate handoff of existing ISP service.

&nbsp;&nbsp;&nbsp;&nbsp;3. Assist as necessary for the handoff of property ownership including existing and required easements.

&nbsp;&nbsp;&nbsp;&nbsp;4. Engage an appropriate party on final commissioning of the substation and interconnect to determine equipment
needs, commissioning timeline, and final cost to complete.

&nbsp;&nbsp;&nbsp;&nbsp;5. Conduct site visits with key contractors to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. refine scope for the installation of sixteen (16) Manager supplied container modules for a total capacity
of 40MW;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. confirm reusability of existing equipment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. identify additional equipment to be sourced (if required).

&nbsp;&nbsp;&nbsp;&nbsp;6. Develop a division of responsibilities matrix to align all parties on scope and responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;7. Modify plans and designs as necessary for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. civil scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. mechanical scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. electrical scope; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. networking scope.

&nbsp;&nbsp;&nbsp;&nbsp;8. Source and procure all necessary equipment in accordance with plans and as identified in prior diligence
and planning efforts.

&nbsp;&nbsp;&nbsp;&nbsp;9. Develop preliminary project budget based on the defined project scope, finalized plans, and equipment
costs in accordance with current market rates.

&nbsp;&nbsp;&nbsp;&nbsp;10. Facilitate request for proposal (RFP) process as necessary for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. civil contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. mechanical contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. electrical contractor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. network and cabling contractor.

&nbsp;&nbsp;&nbsp;&nbsp;11. Facilitating the RFP process includes creating detailed RFPs, fielding questions from bidders and negotiating
project timelines and cost.

&nbsp;&nbsp;&nbsp;&nbsp;12. Finalize project budget based on the defined project scope, finalized plans, and equipment costs in accordance
with current market rates and equipment availability.

&nbsp;&nbsp;&nbsp;&nbsp;13. Finalize project schedule and award contracts based on RFP responses and final negotiations.

&nbsp;&nbsp;&nbsp;&nbsp;14. Management of the Cedarvale Project to achieve Cedarvale Substantial Completion.

**<u>B. Project 2 Services</u>**

The following list outlines the Cedarvale Services that Manager has completed (with respect to items 1 through 13) and is providing and will continue to provide (with respect to item 14) for Project 2 (note that Cedarvale Services marked with an \* are Cedarvale Services that overlap with Project 1 Services):

&nbsp;&nbsp;&nbsp;&nbsp;1. Engage an appropriate party for all design sets and plans for the Cedarvale Project. Manager will use
these design sets to value engineer the Cedarvale Project and validate assumptions about Project 2 design and development process.\*

&nbsp;&nbsp;&nbsp;&nbsp;2. Engage an appropriate party on final commissioning of the substation and interconnect to determine equipment
needs, commissioning timeline, and final cost to complete.\*

&nbsp;&nbsp;&nbsp;&nbsp;3. Initiate handoff of existing ISP service.\*

&nbsp;&nbsp;&nbsp;&nbsp;4. Assist as necessary for the handoff of property ownership including existing and required easements.\*

&nbsp;&nbsp;&nbsp;&nbsp;5. Engage a general contractor to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. outline full project scope (to be used in division of responsibilities matrix);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. clearly identify work that is already complete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. clearly identify previously completed work that needs to be revisited and/or repaired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. clearly identify work that is not yet complete.

&nbsp;&nbsp;&nbsp;&nbsp;6. Develop a division of responsibilities matrix to align all parties on scope and responsibility for the
installation of four (4) mining buildings for a total capacity of 200MW (50MW per building). This includes all activities related to equipment
and material sourcing, design and engineering, pre-construction, and installation and commissioning.

&nbsp;&nbsp;&nbsp;&nbsp;7. Coordinate and lead the effort to modify plans and design sets as necessary for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. civil scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. mechanical scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MV electrical scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. LV electrical scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. networking scope; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. security scope.

&nbsp;&nbsp;&nbsp;&nbsp;8. Develop preliminary project budget based on the defined project scope, finalized plans, and equipment
costs in accordance with current market rates.

&nbsp;&nbsp;&nbsp;&nbsp;9. Facilitate RFP process for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. general contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. civil contractor(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. mechanical contractor(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. electrical contractor(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. network and cabling contractor(s).

&nbsp;&nbsp;&nbsp;&nbsp;10. Facilitating the RFP process includes creating detailed RFPs, coordinating site visits with key counterparties,
fielding questions from bidders, and negotiating project timelines and cost.

&nbsp;&nbsp;&nbsp;&nbsp;11. Source and procure all necessary equipment in accordance with plans and as identified in prior diligence
and planning efforts.

&nbsp;&nbsp;&nbsp;&nbsp;12. Finalize project budget based on the defined project scope, finalized plans, and equipment costs in accordance
with current market rates and equipment availability.

&nbsp;&nbsp;&nbsp;&nbsp;13. Finalize project schedule and award contracts based on RFP responses and final negotiations.

&nbsp;&nbsp;&nbsp;&nbsp;14. Management of the Cedarvale Project to achieve Cedarvale Substantial Completion.

**<u>Exhibit F-2</u>**

**Cedarvale Manager Obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Duties of the</u> <u>Manager</u>. The Manager or any of its Affiliates shall (a) perform the services set forth on <u>Exhibit F-1</u> and (b) use commercially reasonable efforts to achieve Cedarvale Substantial Completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Performance Standards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Manager shall perform the Cedarvale Services set forth on <u>Exhibit F-1</u>, and shall cause the Cedarvale Services to be performed, in all material respects: (i) by qualified personnel (as to training, skill and experience); (ii) in a good, professional, workmanlike and timely manner; (iii) consistent with applicable industry standards and best practices; and (iv) with the experience and expertise necessary to provide the Cedarvale Services in accordance with this Agreement. The Manager shall perform the Cedarvale Services in accordance with (y) the milestones and other specifications set forth on <u>Exhibit F-3</u>; and (z) the designs, plans, drawings, specifications, materials and intellectual property purchased licensed from Core Scientific Operating Company ("**Core**") pursuant to that certain Purchase and Sale Agreement made as of September 14, 2023 by and between Core and the Company, except (1) to the extent waived in writing by the Company (such waiver not to be unreasonably withheld); (2) to the extent of any deviations from such plans, specifications and intellectual property by Manager's designs, plans, drawings, specifications, materials or intellectual property that Company agrees to in writing as part of the Cedarvale Services hereunder; or (3) to the extent of any immaterial deviations from such plans, specifications and intellectual property by Manager during the performance of the Cedarvale Services hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Every two weeks, the Manager shall provide a report to the Reporting Parties setting forth (i) the Manager's performance and progress towards Cedarvale Substantial Completion of the Cedarvale Project, including any progress made by any Affiliates or subcontractors, and (ii) any other information reasonably requested by the Company from time to time relating to the performance of the Cedarvale Services hereunder. In addition, every two weeks, the Manager shall provide a report to the Reporting Parties setting forth (x) progress of the Cedarvale Services relative to the agreed project budgets, (y) any variances from the agreed project budgets, and (z) the rationale for variances against such budgets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Modification of</u> Cedarvale <u>Services</u>. The Company may from time-to-time request that the Cedarvale Services be amended as the Company in good faith deems necessary. The Manager shall consider each such request in good faith. If the Manager is willing to amend the Cedarvale Services, the Parties will negotiate in good faith any such amendment, including any change in the compensation of the Manager related thereto. In the event the Parties agree to the terms of such amendment, then such amendment will be adopted in accordance with Section 20 and attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations of the Manager</u>. The Manager will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Prior to the date on which the Cedarvale Services are to commence, obtain, and at all times during the Term of this Agreement maintain, all licenses and consents necessary for the performance of its obligations under this Agreement; <u>provided</u>, <u>however</u>, that the Manager shall not be deemed to have breached this subsection (i) for any failure or delay in fulfilling or performing under this subsection (i), caused by or resulting from any change to requirements imposed by law after the date of this Agreement as long as the Manager continues to use commercially reasonable efforts to comply 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;(ii) Nominate an employee to serve as a primary contact with respect to this Agreement and who will have authority to represent the Manager in connection with matters pertaining to this Agreement including the organization and control of the performance of the Cedarvale Services (the "**Cedarvale Project Manager**"); <u>provided</u>, <u>however</u>, that Manager shall not unreasonably replace the Cedarvale Project Manager during the term 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;(iii) Allocate Cedarvale Manager Personnel who are suitably skilled, experienced, trained, and qualified to perform the Services in a professional and workmanlike manner in compliance with Manager's obligations under Section 2(a) of this Exhibit F-2. The Manager represents and warrants to the Company that the Manager shall provide ongoing training to Cedarvale Manager Personnel; for purposes of this Agreement, "**Cedarvale Manager Personnel**" means Manager, its Affiliates, and their respective employees, agents, contractors, and representatives who are performing the Cedarvale Services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) At the reasonable request of the Company (which shall be made in writing), replace the Cedarvale Project Manager or any other Cedarvale Manager Personnel to the extent that there is any willful misconduct or fraud (or reasonable suspicion thereof) on the part of such Cedarvale Project Manager or applicable Cedarvale Manager Personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Prior to any Cedarvale Manager Personnel performing any Cedarvale Services: (A) ensure that such Cedarvale Manager Personnel have the legal right to work in the United States as necessary for their performance; (B) ensure that such Cedarvale Manager Personnel hold and continue to maintain, appropriate training and qualifications as required to perform the Cedarvale Services during the Term; and (C) conduct background checks on each such Cedarvale Manager Personnel that is an employee of the Manager or its Affiliates, which background checks shall comprise, at a minimum, references and criminal record, in accordance with state, federal, and local 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;(vi) Comply with all laws applicable to the provision of the Cedarvale Services, including any applicable labor and employment laws; <u>provided</u>, <u>however</u>, that the Manager shall not be deemed to have breached this subsection (vi) for any failure or delay in fulfilling or performing under this subsection (vi) that is caused by or resulting from any change in applicable law after the date of this Agreement as long as the Manager continues to use commercially reasonable efforts to comply 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;(vii) Comply with, and ensure that all Cedarvale Manager Personnel comply with, all rules, regulations, and policies of the Company that are communicated to the Manager in writing, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Require all Cedarvale Manager Personnel to be bound in writing by confidentiality provisions reasonably equivalent to those contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Maintain at all times during the Term of this Agreement, at its sole cost and expense, at least the types and amounts of insurance coverage on the terms set forth on <u>Exhibit F-4</u>, to the extent that such insurance coverage is available from more than one provider on commercially reasonable terms. Upon the written request of the Company, the Manager shall provide the Company with copies of the certificates of insurance and policy endorsements for all insurance coverage required of the Manager under <u>Exhibit F-4</u> and shall not do anything to invalidate such insurance. This Section 2(d)(ix) shall not be construed in any manner as waiving, restricting, or limiting the liability of either party for any obligations imposed under this Agreement (including any provisions requiring a party to indemnify, defend, and hold harmless the other under this Agreement); 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;(x) Maintain complete, detailed, and accurate records relating to the provision of the Cedarvale Services under this Agreement and, during the Term and for a period of two years thereafter, upon the Company's written request, allow the Company or the Company's representative to inspect and make copies of all such records and, during business hours, interview the Manager's personnel in connection with the provision of the Services and the Manager's compliance with this Agreement; <u>provided</u>, <u>however</u>, that following the end of such two-year period, such records shall be subject to, and may be deleted in accordance with, the Manager's reasonable internal policies on customer record retention and deletion.

**<u>Exhibit F-3</u>**

**Cedarvale Milestones**

The Manager has completed Milestone 1 and Milestone 2 as set forth below.

**<u>Milestone 1</u>** <u>("**Milestone 1**")</u>**:**

**Step 1:** Utilize Core Scientific's non-proprietary design sets and plans for the Cedarvale facility. Manager will use these design sets to value engineer the project.

**Step 2:** Engage Vendors:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Padmounts and Switchgear: A substantial allocation of approximately $15 million is planned for these critical
electrical components.

&nbsp;&nbsp;&nbsp;&nbsp;(b) PDUs, Fans, Racks, Networking: An additional $10 million is estimated for these elements, crucial for
the technical infrastructure and operational efficiency of the Data Center.

&nbsp;&nbsp;&nbsp;&nbsp;(c) PEMB Buildings: While HMC handles some construction elements, the actual buildings of $3 million are not
within HMC's purview.

***<u>Note</u>***: No purchase orders or capital commitments will be submitted in Step 2.

**Step 3:** Engage HMC to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Outline full project scope (to be used in Division of Responsibilities Matrix);

&nbsp;&nbsp;&nbsp;&nbsp;(b) Clearly identify work that is already complete;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Clearly identify previously completed work that needs to be revisited and/or repaired; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Clearly identify work that is not yet complete.

**Step 4:** Develop a *Division of Responsibilities Matrix* to align all parties on scope and responsibility for the installation of four mining buildings and modular sections for a total capacity of 240MW. This includes all activities related to equipment and material sourcing, design and engineering, pre-construction, and installation and commissioning.

**Step 5:** Develop preliminary project budget based on the defined project scope, preliminary plans, and equipment costs in accordance with current market rates.

**<u>Milestone 2</u>** <u>("**Milestone 2**")</u>**:**

**Step 1:** Engage Core Scientific for all proprietary design sets and plans for the Cedarvale facility and validate assumptions about design and development process.

**Step 2:** Coordinate and lead the effort to modify plans and design sets for:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Civil Scope;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Mechanical Scope;

&nbsp;&nbsp;&nbsp;&nbsp;(c) MV Electrical Scope;

&nbsp;&nbsp;&nbsp;&nbsp;(d) LV Electrical Scope;

&nbsp;&nbsp;&nbsp;&nbsp;(e) Networking Scope;

&nbsp;&nbsp;&nbsp;&nbsp;(f) Security Scope; and

***<u>Note</u>***: Includes O&M, Substation, Modular Buildings and Mining Buildings.

**Step 3:** Initiate RFP process for:

&nbsp;&nbsp;&nbsp;&nbsp;(a) HMC;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Civil contractor(s);

&nbsp;&nbsp;&nbsp;&nbsp;(c) Mechanical contractor(s); and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Network and cabling contractor(s).

***<u>Note</u>***: Conducting the RFP process includes creating detailed RFPs, coordinating site visits with key counterparties, fielding questions from bidders, and negotiating project timelines and cost.

**Step 4:** Finalize project budget based on the defined project scope, plans and equipment costs in accordance with current market rates and equipment availability.

**Step 5:** Develop project schedule and provide recommendations based on RFP process and negotiations.

Following final approvals on design, schedule, and budget for each project, Manager will provide Company a combined email update once every two weeks to align on progress. Manager will schedule a meeting with Company if requested by Company to talk through the update.

**<u>Exhibit F-4</u>**

**Cedarvale Insurance**

1) <u>Manager's Minimum Insurance Requirements</u>:

&nbsp;&nbsp;&nbsp;&nbsp;a) Commercial General Liability with limits no less than $1,000,000 per occurrence and $2,000,000 in the
aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Worker's Compensation and Employer's Liability</u>.

Worker's Compensation with limits no less than the minimum amount required by applicable law.\*

Employer's Liability with limits no less than:\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) $1,000,000 Bodily Injury by Accident (Each Accident)

ii) $1,000,000 Bodily Injury by Disease (Policy Limit)

iii) $1,000,000 Bodily Injury by Disease (Each Employee)

&nbsp;&nbsp;&nbsp;&nbsp;c) Employment Practices Liability insurance in an amount not less than $1,000,000.\*

&nbsp;&nbsp;&nbsp;&nbsp;d) Automobile – Bodily Injury and Property Damage with no less than $1,000,000 combined single limit
per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;e) Umbrella Form Excess Liability Insurance in excess of the limited provided by the commercial general liability.

\*As long as the Manager's employees are part of a Professional Employer Organization ("**PEO**"), the insurance under (b) and (c) may be provided through such PEO.

2) <u>Company's Minimum Insurance Requirements</u>:

&nbsp;&nbsp;&nbsp;&nbsp;a) Property Asset Coverage of $500,000 deductible per occurrence up to the total replacement cost for each
facility.

&nbsp;&nbsp;&nbsp;&nbsp;b) Commercial General Liability with limits no less than $1,000,000 per occurrence and $2,000,000 in the
aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Worker's Compensation and Employer's Liability</u>.

Worker's Compensation with limits no less than the minimum amount required by applicable law.

Employer's Liability with limits no less than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) $1,000,000 Bodily Injury by Accident (Each Accident)

ii) $1,000,000 Bodily Injury by Disease (Policy Limit)

iii) $1,000,000 Bodily Injury by Disease (Each Employee)

&nbsp;&nbsp;&nbsp;&nbsp;d) Automobile – Bodily Injury and Property Damage with no less than $1,000,000 combined single limit
per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;e) Umbrella Form Excess Liability Insurance in excess of the limited provided by the commercial general liability,

3) All insurance policies required of a party (the "**Insured Party**") pursuant to this <u>Exhibit F-4</u> shall be issued by insurance companies or a PEO, as applicable, reasonably acceptable to the Company (in the case where the Insured Party is the Manager) or the Manager (in the case where the Insured Party is the Company) (the "**Other Party**").

4) The Insured Party shall furnish certificates of insurance at the time of the execution of this Agreement evidence insurance coverage as required hereunder. Upon the Other Party's request, the Insured Party will provide copies of policies with applicable exclusions and endorsements. The Insured Party must provide the Other Party with at least 30 days' prior written notice of cancellation or material change in coverage. The Other Party shall be named as additional insured and/or loss payee as applicable (subject to applicable law and any required insurance company or PEO consent). A waiver of subrogation in favor of the Other Party shall be provided in connection with the Workers' Compensation insurance policies specified above.

**<u>Exhibit G</u>**

**Operating, Construction-in-Progress and** **Allowed Capacity as of the Execution Date**

---

| | |
|:---|:---|
| **Site** | **Site MW** |
| **Garden** | **12** |
| **Rebel** | **25** |
| **Stiles** | **20** |
| **East Stiles** | **30** |
| **Cedarvale** | **240** |
| **<u>Total</u>** | **327** |

---

## Exhibit 10.2

**Exhibit 10.2**

**Ionic Digital Inc.**

**PLAN SPONSOR CONTRIBUTION AGREEMENT**

**PLAN SPONSOR CONTRIBUTION AGREEMENT**

This Plan Sponsor Contribution Agreement (this "<u>Agreement</u>"), is made as of January 31, 2024, by and between Ionic Digital Inc., a Delaware corporation (the "<u>Company</u>"), and U.S. Data Management Group LLC, a Delaware limited liability company, doing business as US Bitcoin Corp. (the "<u>Plan Sponsor</u>").

**WHEREAS,** on July 13, 2022, Celsius Network LLC and its affiliated debtors and debtors in possession (collectively, the "<u>Debtors</u>") commenced cases under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101, *et seq.* (as amended, supplemented or otherwise modified from time to time, the "<u>Bankruptcy Code</u>") in the United States Bankruptcy Court for the Southern District of New York (the "<u>Bankruptcy Court</u>"); and

**WHEREAS**, on August 15, 2023, the Debtors filed their fourth revised *Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* (as may be further revised, amended, or modified in accordance with its terms, and together with all exhibits, supplements, appendices, and schedules, the "<u>Plan</u>"); and

**WHEREAS**, on August 17, 2023, the Debtors filed their fourth revised *Disclosure Statement for the Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* (as may be further revised, amended, or modified in accordance with its terms, and together with all exhibits, supplements, appendices, and schedules, the "<u>Disclosure Statement</u>"); and

**WHEREAS,** on August 17, 2023, the Bankruptcy Court entered its Order approving the Disclosure Statement and granting related relief; and

**WHEREAS,** on November 9, 2023, the Bankruptcy Court entered its Order confirming the Plan and granting related relief; and

**WHEREAS**, pursuant to the Plan, the Company will issue to the Plan Sponsor, and the Plan Sponsor shall purchase from the Company, up to $12,756,000 of shares of the Company's Class A common stock, par value $0.00001 per share (the "<u>Common Stock</u>"), subject to the terms and conditions herein and enter into that certain Management Services Agreement by and between the Company and the Plan Sponsor dated on the date hereof (the "<u>Management Agreement</u>").

**NOW, THEREFORE,** in consideration of the premises and the mutual agreements and covenants herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Plan Sponsor hereby represent and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>ISSUANCE AND CONTRIBUTION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Investment</u>. By wire transfer to the Company of immediately available funds on the date of purchase of the Common Stock, the Plan Sponsor shall purchase from the Company for an aggregate purchase price of $6,378,000 (the "<u>Initial Plan Sponsor Investment</u>") the number of shares of Common Stock (the "<u>Initial Plan Sponsor Shares</u>") equal to the product of: (i) the sum of all outstanding shares of Common Stock issued or anticipated to be issued on the Effective Date (as defined under the Plan) (the "<u>Issued Shares</u>") *plus* (ii) the number of shares of Common Stock reserved for issuance in accordance with the Plan for Claims (as defined in the Plan) that are Disputed (as defined in the Plan), as well as any other shares of Common Stock that are reserved for issuance or subject to holdbacks as of the Effective Date of the Plan (the "<u>Reserve Shares</u>") *plus* (iii) the number of shares of Common Stock reserved for issuance in accordance with any equity incentive plan approved or contemplated under the Plan or approved by the board of directors of the Company on the Effective Date (the "Plan Shares", and together with Reserve Shares and the Issued Shares, the "<u>Effective Date Shares</u>"); *multiplied by* (iii) a fraction, the numerator of which is the Initial Plan Sponsor Investment, and the denominator of which is $740,000,000 (the "<u>Plan Value</u>"), which for the avoidance of doubt shall not include the Initial Plan Sponsor Investment (the "<u>Company Net Asset Value</u>"). An illustrative calculation of the foregoing formula is depicted below.

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| | | |
|:---|:---|:---|
| (The sum the Issued Shares *plus* the Reserve Shares *plus* the Plan Shares) | x | Initial Plan Sponsor Investment (*i.e.*, $6,378,000) |
| (The sum the Issued Shares *plus* the Reserve Shares *plus* the Plan Shares) | x | Company Net Asset Value as of Effective Date (not including Initial Plan Sponsor Investment) |

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Subject to the conditions specified in Section 5 hereof, the closing of the issuance and purchase of the Common Stock contemplated by this <u>Section 1(a)</u> will take place on the Effective Date (as defined in the Plan) (the "Initial Closing Date") upon the declaration of the effectiveness of the Plan in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Subsequent Investments</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;i. Subject to Section 1(b)(ii), the Manager shall purchase from the Company, for an aggregate purchase price of $6,378,000, the number of shares of Common Stock equal to the product of: the number of the Effective Date Shares (as adjusted to take into account any stock split, reverse stock split or share consolidation, stock dividend or similar event effected by the Company with respect to the Common Stock) *multiplied by* a fraction, the numerator of which is $6,378,000, and the denominator of which is the Company Net Asset Value.

&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. Subject to the conditions specified in <u>Section 5</u> hereof, the closing of the issuance and purchase of the Common Stock contemplated by this <u>Section 1(b)</u> (a "<u>Subsequent Closing</u>") will take place on the first Business Day after the earlier to occur of (A) the Exchange Act Registration Statement (as defined below) being declared effective, or (B) so long as the Company has not terminated the Management Agreement pursuant to the Section 2(b)(iii)(H) thereof, May 1, 2024 (such date a "Subsequent Closing Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purposes of this Agreement, (1) "<u>Subsequent Plan Sponsor Investment</u>" shall mean any purchase price payable by the Plan Sponsor in accordance with the subsequent investments set forth in <u>Section 1(b)</u>, (2) "Plan Sponsor Investment" shall mean the sum of the Initial Plan Sponsor Investment and the Subsequent Plan Sponsor Investment, (3) "<u>Plan Sponsor</u> Shares" shall mean, collectively, the shares of Common Stock purchased in the Initial Plan Sponsor Investment and the Subsequent Plan Sponsor Investment, and (4) "Closing Date" shall refer to each of the Initial Closing Date for purposes of the Initial Plan Sponsor Investment and the Subsequent Closing Date for the Subsequent Plan Sponsor Investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, notwithstanding anything to the contrary in this Agreement, the Plan Sponsor shall be solely responsible for any monetary obligations owed by it under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>.

As of the date hereof and as of each Closing Date, the Company represents and warrants to the Plan Sponsor as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is duly incorporated and validly existing under the laws of the state of Delaware, with full power and authority to conduct its business as it is currently being conducted and to own its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has the requisite corporate or other applicable power and authority to execute and deliver this Agreement and perform its obligations hereunder, and this Agreement and the consummation by the Company of the transactions contemplated hereby have been duly authorized by all requisite action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement has been duly and validly executed and delivered by the Company and constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Plan Sponsor Shares have been duly authorized and, upon payment of the Initial Plan Sponsor Investment and/or the Subsequent Plan Sponsor Investment, as the case maybe, pursuant to the terms of this Agreement, will be validly issued, fully paid and nonassessable, and conform in all material respects to the description thereof set forth in the Disclosure Statement and the Exchange Act Registration Statement (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Neither the Company, nor any of its subsidiaries, is and, immediately after giving effect to the offering and sale of the Plan Sponsor Shares and the application of the proceeds thereof, will be an "investment company", as such term is defined in the Investment Company Act of 1940, as amended, including the rules and regulations of the Securities and Exchange Commission (the "<u>Commission</u>") promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Solely with respect to the Subsequent Closing, a registration statement on Form 10 (File No. 001-41941), as amended (the "<u>Exchange Act Registration Statement</u>"), in respect of the Common Stock has been filed with the Commission, and the Exchange Act Registration Statement in the form heretofore delivered to the Plan Sponsor has become effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Solely with respect to the Subsequent Closing, the financial statements included in the Exchange Act Registration Statement, together with the related schedules and notes, present fairly in all material respects the financial position of the Company and its subsidiaries at the dates indicated and the statement of operations, stockholders' equity and cash flows of the Company and its subsidiaries for the periods specified. Said financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("<u>GAAP</u>") applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in all material respects in accordance with GAAP the information required to be stated therein. The summary financial information included in the Exchange Act Registration Statement present fairly in all material respects the information shown therein and have been compiled on a basis consistent with that of the audited financial statements included therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Initial Plan Sponsor Shares were offered and sold pursuant to an exemption from registration under the Securities Act of 1933, as amended, including the rules and regulations of the Commission promulgated thereunder (the "Securities Act"), provided by Section 1145(a) of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>REPRESENTATIONS AND WARRANTIES OF THE PLAN SPONSOR</u>.

As of the date hereof and as of each Closing Date, the Plan Sponsor represents and warrants to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan Sponsor is duly organized and validly existing under the laws of the state of Delaware, with full power and authority to conduct its business as it is currently being conducted and to own its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Plan Sponsor has the requisite corporate power and authority to execute and deliver this Agreement and perform its obligations hereunder, and this Agreement and the consummation by the Plan Sponsor of the transactions contemplated hereby have been duly authorized by all requisite action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement has been duly and validly executed and delivered by the Plan Sponsor and constitutes the valid and binding obligation of the Plan Sponsor, enforceable against the Plan Sponsor in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution, delivery and performance by Plan Sponsor of this Agreement, including the consummation of the transactions contemplated hereby will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of Plan Sponsor pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which Plan Sponsor is a party or by which Plan Sponsor is bound or to which any of the property or assets of Plan Sponsor is subject; (ii) Plan Sponsor's organizational documents or under any law, rule, regulation, agreement or other obligation by which Plan Sponsor is bound; and (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over Plan Sponsor or any of their respective properties, that would reasonably be expected to have a material adverse effect on the ability of the Plan Sponsor to enter into and timely perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Plan Sponsor is an "accredited investor" within the meaning of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Plan Sponsor acknowledges and agrees that it has conducted to its full satisfaction an independent investigation and verification of the business (including its financial condition, results of operations, assets, liabilities, properties, contracts, employee matters, regulatory compliance, business risks, and prospects) of the Company and its affiliates, and, in making its determination to proceed with the transactions contemplated hereby, the Plan Sponsor has relied, is relying, and will rely, solely, on the representations of the Company set forth herein (the "<u>Express Representations</u>") and the results of the Plan Sponsor's own independent investigation and verification and has not relied on, is not relying on, and will not rely on any information, statements, disclosures, documents, projections, forecasts or other material made available to the Plan Sponsor or any of its affiliates, advisors, or representatives, in any "data room", any "information presentation" or similar document, or any Projections (defined below) or any other information, statements, disclosures or materials, in each case, whether written or oral, made or provided by or on behalf of the Company or any of its affiliates, Celsius Network LLC or any of its affiliates, or any predecessor, advisors or representative of any of the foregoing (the "<u>Disclaimed Persons</u>"), or any failure of any of the Disclaimed Persons to disclose or contain any information, except for the Express Representations. The Plan Sponsor acknowledges and agrees that (i) the Express Representations are the sole and exclusive representations, warranties and statements of any kind made to the Plan Sponsor and on which the Plan Sponsor may rely in connection with the transactions contemplated hereby and (ii) all other representations, warranties and statements of any kind or nature expressed or implied, statutory, whether in written, electronic or oral form are, in each case, specifically disclaimed by the Company and the foregoing persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Without limiting the generality of the foregoing, in connection with the investigation by the Plan Sponsor, the Plan Sponsor and its advisors and representatives have received or may receive certain projections, forward-looking statements and other forecasts (whether in written, electronic, or oral form, and including in any "information presentation" or similar document, any data room, any management meetings, etc.) (collectively, "Projections"). The Plan Sponsor acknowledges and agrees that (i) such Projections are being provided solely for the convenience of the Plan Sponsor to facilitate its own independent investigation, (ii) there are uncertainties inherent in attempting to make such Projections, (iii) the Plan Sponsor is familiar with such uncertainties, and (iv) the Plan Sponsor is taking full responsibility for making its own evaluation of the adequacy and accuracy of all Projections (including the reasonableness of the assumptions underlying such Projections). The Disclaimed Persons are intended third party beneficiaries of these paragraphs 3(f) and 3(g) and shall be entitled to enforce this these paragraphs 3(f) and 3(g) as if a party directly hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>COMPLIANCE WITH THE SECURITIES ACT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties agree that the Plan Sponsor Shares are "restricted securities" under the Securities Act and have not been registered under the Securities Act nor qualified under any state securities laws, and that the Plan Sponsor Shares are offered and sold in reliance upon the exemption from the registration requirements of the Securities Act provided in Section 4(a)(2) under the Securities Act and Regulation D promulgated under the Securities Act or Section 1145(a) of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent applicable, the Plan Sponsor Shares issued by the Company in connection with this Agreement (unless registered under the Securities Act and the Company determines in its reasonable discretion that such legend is not required) may be stamped or imprinted with a legend in substantially the following form:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "**ACT**"), AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES IS EFFECTIVE UNDER THE ACT OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND, IF THE COMPANY REQUESTS, AN OPINION SATISFACTORY TO THE COMPANY TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL SATISFACTORY TO THE COMPANY."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>CONDITIONS TO CLOSING</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Plan Sponsor to purchase and pay for the Plan Sponsor Shares is subject to the following condition precedent: (i) the representations and warranties of the Company contained in Section 2 hereof shall be true and correct as of the applicable Closing Date in all respects with the same effect as though such representations and warranties had been made on and as of the applicable Closing Date, (ii) solely for purposes of the Initial Plan Sponsor Investment, the Plan has been declared effective in accordance with its terms, and (iii) solely for purposes of the Subsequent Plan Sponsor Investment under Section 1(b)(i) hereof, either (x) the Exchange Act Registration Statement has become effective or (y) the Company has not terminated the Management Agreement pursuant to Section 2(b)(iii)(H) therein (<u>the "</u>Form 10 Termination Right").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Company to issue and sell the Plan Sponsor Shares is subject to the following conditions precedent: (i) the representations and warranties of the Plan Sponsor contained in Section 3 hereof shall be true and correct as of the applicable Closing Date in all respects with the same effect as though such representations and warranties had been made on and as of the applicable Closing Date, (ii) solely for purposes of the Initial Plan Sponsor Investment, the Plan has been declared effective in accordance with its terms, (iii) the Plan Sponsor has delivered to the Company the Initial Plan Sponsor Investment or the Subsequent Plan Sponsor Investment (as applicable) by wire transfer of immediately available funds, and (iv) solely for purposes of the Subsequent Plan Sponsor Investment under Section 1(b)(i) hereof, either (x) the Exchange Act Registration Statement has become effective or (y) the Company has not terminated the Management Agreement pursuant to the Form 10 Termination Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>LOCK-UP</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lock-up Period</u>. Subject to the provisions of Section 6(b) hereof, during the period beginning from the date hereof and continuing until the second anniversary of the Initial Closing Date (the "<u>Lock-up Period</u>"), the Plan Sponsor shall, without the prior written consent of the Company (which consent shall have been approved by the audit committee of the Company's board of directors), not either directly or indirectly: (i) offer, sell, contract to sell, hypothecate or pledge, grant any option to purchase or otherwise dispose of, make any short sale or otherwise transfer or dispose of, directly or indirectly, the Initial Plan Sponsor Shares; (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Initial Plan Sponsor Shares, whether any such transaction is to be settled by delivery of such Initial Plan Sponsor Shares, in cash or otherwise, or (iii) public announcement of any intention to effect any transaction specified in clause (i) or (ii) hereof, *<u>provided</u>*, *<u>however</u>*, that the foregoing restrictions shall not apply to sales or other dispositions of Initial Plan Sponsor Shares, in each case that are made exclusively between and among the Plan Sponsor and its affiliates, including its members, and including distributions, transfers or dispositions without consideration by the Plan Sponsor to its members or other equity holders (such transferees collectively referred as, the "<u>Permitted Transferees</u>"), *<u>provided</u>, <u>further</u>*, that, simultaneously with such transfer or distribution, as the case may be, such Permitted Transferees execute a joinder agreement substantially in the form attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Unlock Period</u>. During the period commencing on the first anniversary of the Initial Closing Date and expiring at the conclusion of the Lock-up Period (the "<u>Unlock Period</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;(i) In the event that, during the Unlock Period, the Trading Price (defined below) of the Common Stock is equivalent to or greater than 150% of the NAV Per Share (defined below), the Plan Sponsor and its Permitted Transferees may collectively sell up to 30% of the Initial Plan Sponsor Shares then held by the Plan Sponsor and its Permitted Transferees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that, during the Unlock Period, the Trading Price of the Common Stock is equivalent to or greater than 200% of the NAV Per Share on the Closing Date, the Plan Sponsor and its Permitted Transferees may collectively sell (in addition to Common Stock sold in accordance with clause (i) above) up to 30% of the Initial Plan Sponsor Shares then held by the Plan Sponsor and its Permitted Transferees (for the avoidance of doubt, it is clarified that the Plan Sponsor and its Permitted Transferees shall not collectively sell more than 60% of the Initial Plan Sponsor Shares they hold collectively during the Unlock Period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>DEFINED TERMS</u>. For the purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Business Day</u>" means any day except Saturday, Sunday, or any other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, the state of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>NAV Per Share</u>" shall mean the Company Net Asset Value divided by the Effective Date Shares (as adjusted to take into account any stock split, reverse stock split or share consolidation, stock dividend or similar event effected by the Company with respect to the Common Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>OTC Bulletin Board</u>" means the Financial Industry Regulatory Authority OTC Bulletin Board electronic inter-dealer quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Pink OTC Markets</u>" means the OTC Markets Group Inc. electronic inter-dealer quotation system, including OTCQX, OTCQB, and OTC Pink.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Trading Price</u>" shall mean as of any particular date: (a) the volume-weighted average price for the Common Stock on any national securities exchange for any 10 Business Days within any 30-consecutive Business Day period Days ending on (and including) the Business Day immediately preceding the date of measurement as reported by Bloomberg; (b) if there have been no sales of the Common Stock on any such exchange on any such day, the average of the highest bid and lowest asked prices for the Common Stock on all such exchanges at the end of such day; (c) if on any such day the Common Stock is not listed on a national securities exchange, the closing sales price of the Common Stock as quoted on the OTC Bulletin Board, the Pink OTC Markets, or similar quotation system or association for such day; or (d) if there have been no sales of the Common Stock on the OTC Bulletin Board, the Pink OTC Markets, or similar quotation system or association on such day, the average of the highest bid and lowest asked prices for the Common Stock quoted on the OTC Bulletin Board, the Pink OTC Markets, or similar quotation system or association at the end of such day; in each case of clauses (b) through (d), averaged over 20 consecutive Business Days ending on the Business Day immediately prior to the day as of which "Trading Price" is being determined; provided, that if the Common Stock is listed on any national securities exchange, the term "Business Day" as used in this sentence means Business Days on which such exchange is open for trading. If at any time the Common Stock is not listed on any national securities exchange or quoted on the OTC Bulletin Board, the Pink OTC Markets, or similar quotation system or association, the "Trading Price" of the Common Stock shall be the fair market value per share as determined in good faith by the Company's board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>VOTING</u>. At any time during which the Management Agreement is in full force and effect, the Plan Sponsor and any Permitted Transferees, in their capacity as stockholders or proxy holders of the Company, irrevocably and unconditionally agree that, at any meeting of the stockholders of the Company (whether annual or special and whether or not an adjourned or postponed meeting, however called and including any adjournment or postponement thereof) and in connection with any written consent of stockholders of the Company, the Plan Sponsor and such Permitted Transferees shall vote or cause to be voted at such meeting (or execute and return an action by written consent with respect to) all Plan Sponsor Shares owned by the Plan Sponsor or the Permitted Transferee (as applicable) as of the record date for such meeting (or the date that any written consent is executed by the Plan Sponsor or the Permitted Transferees (as applicable)) in accordance with the recommendations of the board of directors of the Company. The Plan Sponsor hereby grants the Company an irrevocable proxy to vote the Plan Sponsor Shares as provided in this Section 8, *provided*, *however*, that such irrevocable proxy shall terminate and be of no further force or effect immediately upon the termination or expiration of the Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>INTERPRETATION OF THIS AGREEMENT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Directly or Indirectly</u>. Where any provision in this Agreement refers to action to be taken by any party, or which such party is prohibited from taking, such provision will be applicable whether such action is taken directly or indirectly by such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of New York. Any legal suit, action, or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the State of New York in each case located in the city of New York and County of New York, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, or proceeding. Service of process, summons, notice, or other document by mail to such party's address set forth herein shall be effective service of process for any suit, action, or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action, or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action, or proceeding brought in such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Jury Trial</u>. Each party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby. Each party to this Agreement certifies and acknowledges that (i) no representative of the other party has represented, expressly or otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal action; (ii) such party has considered the implications of this waiver; (iii) such party makes this waiver voluntarily; and (iv) such party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 9(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section Headings</u>. The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Construction</u>. This Agreement has been freely and fairly negotiated between the parties. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); or (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission). Such communications must be sent to the respective parties at the addresses indicated below (or at such other address for a party as shall be specified in a notice given in accordance with this <u>Section 10(a)</u>).

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company: | Coral Gables, Florida 33134 |
|  | Email: joel@ionicdigital.com |
|  | Attention: Joel Block, CFO |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to: | Cleary Gottlieb Steen & Hamilton LLP |
|  | One Liberty Plaza |
|  | New York, NY 10006 |
|  | Email: echange@cgsh.com |
|  | Attention: Elizabeth A. Chang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Plan Sponsor: | 1101 Brickell Ave., N-1500 |
|  | Miami, Florida 33131 |
|  | Email: legalteam@hut8.io and |
|  | asher@usbitcoin.com |
|  | Attention: Asher Genoot |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to: | Brown Rudnick LLP |
|  | 7 Times Square, |
|  | New York, NY 10036 |
|  | Email: jfitzsimons@brownrudnick.com |
|  | Attention: Jonathan Fitzsimons |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to a Permitted Transferee: | The address set forth in the joinder agreement in the form set forth in Exhibit A hereto. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cumulative Remedies</u>. The rights and remedies provided in this Agreement are cumulative and are not exclusive of, and are in addition to and not in substitution for, any other rights or remedies available at law, in equity, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Successor and Assigns; No Third Party Beneficiaries</u>. This Agreement is not assignable by the either party without the prior written consent of the other party. This Agreement and its rights, powers and duties set forth herein will inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties. This Agreement is for the sole benefit of the Company and the Plan Sponsor and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit, or remedy of any nature whatsoever, under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Non-Recourse</u>. This Agreement may only be enforced against, and any claim, action, or proceeding based upon, arising out of or related to this Agreement may only be brought against, the persons that are expressly named as parties to this Agreement. Except to the extent named as a party to this Agreement, and then only to the extent of the specific obligations of such parties set forth in this Agreement, no past, present or future shareholder, member, partner, manager, director, officer, employee, affiliate, agent, advisor, or representative of any party (each, a "<u>Non-Recourse Person</u>") will have any liability (whether in contract, tort, equity or otherwise) for any of the representations, warranties, covenants, agreements or other obligations or liabilities of any of the parties to this Agreement or for any dispute related hereto, and (ii) in no event shall any Non-Recourse Person have any shared or vicarious liability, or otherwise be the subject of legal or equitable claims, for the actions, omissions or fraud (including through equitable claims (such as unjust enrichment) not requiring proof of wrongdoing committed by the subject of such claims) of any other Non-Recourse Person. The Non-Recourse Persons are intended third party beneficiaries of this <u>Section 10(d)</u> and shall be entitled to enforce this <u>Section 10(d)</u> as if a party directly hereto

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Equitable Relief</u>. Each of the Company and the Plan Sponsor acknowledges that a breach or threatened breach by such party of any of its obligations under this Agreement would give rise to irreparable harm to the other party hereto for which monetary damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, the other party hereto shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a restraining order, an injunction, specific performance, and any other relief that may be available from a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. All representations and warranties of the parties contained in this Agreement shall survive the applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Entire Agreement; Amendment and Waiver</u>. This Agreement constitutes the entire understanding of the parties hereto with respect to the subject matter contained herein, and supersedes all prior understandings among such parties with respect to the matters covered herein. This Agreement may be amended, and the observance of any term of this Agreement may be waived, with (and only with) the written consent of the Company and the Plan Sponsor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Severability</u>. If any provision of this Agreement or the application of such provision to any person or circumstance is held to be invalid by any court of competent jurisdiction, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held invalid will not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Counterparts; Facsimile and PDF Signatures</u>. This Agreement may be executed in one or more counterparts, each of which will be deemed an original and all of which together will be considered one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile or portable document format (PDF) transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and may be used in lieu of the original Agreement for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

[*Signature Page Follows*]

**IN WITNESS WHEREOF,** each of the parties has executed this Plan Sponsor Contribution Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
| **Ionic Digital Inc.** | **Ionic Digital Inc.** | **Ionic Digital Inc.** |
| By: | /s/ Matthew Prusak | /s/ Matthew Prusak |
|  | Name: | Matthew Prusak |
|  | Title: | Chief Executive Officer |
| **U.S Data Management Group LLC** | **U.S Data Management Group LLC** | **U.S Data Management Group LLC** |
| By: | /s/ Asher Genoot | /s/ Asher Genoot |
|  | Name: | Asher Genoot |
|  | Title: | Authorized Signatory |

---

[Signature Page to Plan Sponsor Contribution Agreement]

**<u>Exhibit A</u>**

***Form of Joinder Agreement***

This Joinder Agreement (this "<u>Joinder Agreement</u>") is made as of the date written below by the undersigned (the "<u>Joining Party</u>") in accordance with the Plan Sponsor Contribution Agreement, dated as of , 2024, and as amended from time to time (the "<u>Plan Sponsor Contribution Agreement</u>"), by and between Ionic Digital Inc. (the "<u>Company</u>") and U.S. Data Management Group, LLC. Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Plan Sponsor Contribution Agreement.

The Joining Party hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, the Joining Party shall be deemed to be a party to the Plan Sponsor Contribution Agreement as of the date hereof as if he, she or it had executed the Plan Sponsor Contribution Agreement as the

Plan Sponsor. The Joining Party hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions applicable to the Plan Sponsor contained in the Plan Sponsor Contribution Agreement.

This Joinder Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of New York without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

IN WITNESS WHEREOF, the undersigned has executed this Joinder Agreement as of the date written below.

---

| |
|:---|
| **[Joining Party]** |
| By: |
| Name: |
| Title: |
| Address: |
| Date: |

---

## Exhibit 10.3

**Exhibit 10.3**

**AMENDMENT TO<br> PLAN SPONSOR CONTRIBUTION AGREEMENT**

**THIS AMENDMENT TO PLAN SPONSOR CONTRIBUTION AGREEMENT** (the "**<u>Amendment</u>**") is made as of June 19, 2024, by and between Ionic Digital Inc., a Delaware corporation (the "**<u>Company</u>**"), and U.S. Data Management Group LLC, a Delaware limited liability company, doing business as US Bitcoin Corp. (the "**<u>Plan Sponsor</u>**").

**BACKGROUND**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company and the Plan Sponsor are parties to that certain Plan Sponsor Contribution Agreement, dated as of January 31, 2024 (as amended, the "**<u>Agreement</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Company and the Plan Sponsor desire to amend the Agreement in certain respects as more particularly set forth below.

**NOW, THEREFORE,** in consideration of the mutual promises and agreements below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby further agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Recitals; Incorporation; Capitalized Terms</u>**. This Amendment shall be deemed a part of the Agreement, but shall take precedence over and supersede any provisions to the contrary contained in the Agreement. All initial capitalized terms used in this Amendment shall have the same meaning as set forth in the Agreement unless otherwise provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Amendments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Section 1(b)(ii) of the Agreement is amended and restated in its entirety to read 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;ii. Subject to the conditions specified in Section 5 hereof, the closing of the issuance and purchase of the Common Stock contemplated by this Section 1(b) (a "<u>Subsequent Closing</u>") will take place on the first Business Day after the Common Stock has been listed on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934, as amended (such date a "<u>Subsequent Closing Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Section 2(f) of the Agreement is amended and restated in its entirety to read 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;(f) Solely with respect to the Subsequent Closing, the Common Stock has been listed on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934, as amended. "Exchange Act Registration Statement" means the Company's registration statement on Form 10 (File No. 001-41941), as amended, or any other registration statement under the Securities Act or the Securities Exchange Act of 1934, as amended, that effectuates the registration of the Common Stock in connection with the listing of such Common Stock on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Section 5 of the Agreement is amended and restated in its entirety to read 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;5. CONDITIONS TO CLOSING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Plan Sponsor to purchase and pay for the Plan Sponsor Shares is subject to the following condition precedent: (i) the representations and warranties of the Company contained in Section 2 hereof shall be true and correct as of the applicable Closing Date in all respects with the same effect as though such representations and warranties had been made on and as of the applicable Closing Date, (ii) solely for purposes of the Initial Plan Sponsor Investment, the Plan has been declared effective in accordance with its terms, and (iii) solely for purposes of the Subsequent Plan Sponsor Investment under Section 1(b)(i) hereof, (x) the Common Stock has been listed on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934, as amended and (y) the Company has not terminated the Management 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;(b) The obligations of the Company to issue and sell the Plan Sponsor Shares is subject to the following conditions precedent: (i) the representations and warranties of the Plan Sponsor contained in Section 3 hereof shall be true and correct as of the applicable Closing Date in all respects with the same effect as though such representations and warranties had been made on and as of the applicable Closing Date, (ii) solely for purposes of the Initial Plan Sponsor Investment, the Plan has been declared effective in accordance with its terms, (iii) the Plan Sponsor has delivered to the Company the Initial Plan Sponsor Investment or the Subsequent Plan Sponsor Investment (as applicable) by wire transfer of immediately available funds, and (iv) solely for purposes of the Subsequent Plan Sponsor Investment under Section 1(b)(i) hereof, (x) the Common Stock has been listed on a "national securities exchange" within the meaning of the Securities Exchange Act of 1934, as amended and (y) the Company has not terminated the Management Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Counterparts; Facsimile and PDF Signatures</u>**. This Amendment may be executed in one or more counterparts, each of which will be deemed an original and all of which together will be considered one and the same agreement. The exchange of copies of this Amendment and of signature pages by facsimile or portable document format (PDF) transmission shall constitute effective execution and delivery of this Amendment as to the parties hereto and may be used in lieu of the original Agreement for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Ratification</u>**. Except as specifically modified hereby, all of the provisions of the Agreement which are not in conflict with the terms of this Amendment shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Severability</u>**. If any provision of this Amendment or the application of such provision to any person or circumstance is held to be invalid by any court of competent jurisdiction, the remainder of this Amendment or the application of such provision to persons or circumstances other than those to which it is held invalid will not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Effectiveness</u>**. In no event shall any draft of this Amendment create any obligation or liability, it being understood that this Amendment shall be effective and binding only when a counterpart hereof has been executed and delivered by each party hereto.

***[the remainder of this page is intentionally left blank]***

**IN WITNESS WHEREOF**, the Company and the Plan Sponsor have executed this Amendment as of the date first written above.

---

| | | |
|:---|:---|:---|
| **COMPANY**: | **COMPANY**: | **COMPANY**: |
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| By: | /s/ Emmanuel Aidoo | /s/ Emmanuel Aidoo |
|  | Name: | Emmanuel Aidoo |
|  | Title: | Chairman, Board of Directors |
| **PLAN SPONSOR:** | **PLAN SPONSOR:** | **PLAN SPONSOR:** |
| **U.S. DATA MANAGEMENT GROUP LLC** | **U.S. DATA MANAGEMENT GROUP LLC** | **U.S. DATA MANAGEMENT GROUP LLC** |
| By: | /s/ Victor Semah | /s/ Victor Semah |
|  | Name: | Victor Semah |
|  | Title: | Authorized Signatory |

---

## Exhibit 10.4

**Exhibit 10.4**

**INDEMNIFICATION AGREEMENT**

This Indemnification Agreement ("***Agreement***") is made as of _____________, 20__, by and between Ionic Digital Inc., a Delaware corporation (the "***Company***"), and the individual identified as the Indemnitee on the signature page hereto ("***Indemnitee***").

**<u>RECITALS:</u>**

WHEREAS, directors, officers and other persons in service to corporations or business enterprises are subjected to the risk of expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself;

WHEREAS, in order to attract highly competent persons, who have become more reluctant to serve as directors, officers or in other capacities, it is desirable that they are provided with adequate protection through insurance and adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the Company;

WHEREAS, the Board of Directors of the Company (the "***Board***") has determined that the desirability of attracting and retaining such persons is in the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

WHEREAS, (i) the Amended & Restated Certificate of Incorporation of the Company (as may be amended and/or restated, the "***Certificate of Incorporation***") and the Amended & Restated Bylaws of the Company (as may be amended and/or restated, the "***Bylaws***") each requires indemnification of the officers and directors of the Company, (ii) Indemnitee may be indemnified pursuant to the Delaware General Corporation Law (as may be amended from time to time, the "***DGCL***"), and (iii) the Certificate of Incorporation, the Bylaws and the DGCL provide that the indemnification provisions set forth therein are not exclusive and thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification;

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and the Bylaws and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

WHEREAS, the Company desires Indemnitee to serve as a director or officer of the Company and Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advancement of expenses.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby covenant and agree as follows:

Section 1. **<u>Definitions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As used in this Agreement:

"**<u>Affiliate</u>**" of any specified Person shall mean any other Person directly or indirectly controlling, controlled by or under common control with such specified Person.

"**<u>Agent</u>**" shall mean any person who is or was a director, officer or employee of the Company or a subsidiary of the Company or any other person authorized by the Company to act for the Company, including such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other Enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.

"**<u>Corporate Status</u>**" describes the status of a person who is or was a director, officer, trustee, partner, general partner, manager, managing member, employee, Agent or fiduciary of (i) the Company or (ii) any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other Enterprise which such person is or was serving at the request of the Company.

"**<u>Delaware Court</u>**" shall mean the Court of Chancery of the State of Delaware.

"**<u>Disinterested Director</u>**" shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

"**<u>Enterprise</u>**" shall mean the Company and any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger to which the Company (or any of its wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture, trust, employee benefit plan, non-profit entity or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, general partner, manager, managing member, employee, trustee, <u>A</u>gent or fiduciary.

"**<u>Exchange Act</u>**" shall mean the Securities Exchange Act of 1934, as amended.

"**<u>Expenses</u>**" shall mean all reasonable direct and indirect costs, expenses, fees and charges of any type or nature whatsoever, including, without limitation, attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, fax transmission charges, secretarial services and all other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating in, a Proceeding, including reasonable compensation for time spent by Indemnitee for which he or she is not otherwise compensated by the Company or any third party. Expenses also shall include, without limitation, (i) Expenses incurred in connection with any appeal resulting from, incurred by Indemnitee in connection with, arising out of, or in respect of or relating to, any Proceeding, including, without limitation, the principal, premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, (ii) Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation or otherwise, (iii) any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, and (iv) any interest, assessments or other charges in respect of the foregoing. "Expenses" shall not include "Liabilities." Any invoice, statement or other support for Expenses may be redacted to preserve attorney-client privilege, attorney work product, common-interest protection or other applicable protection, and no such redaction shall delay or excuse advancement.

"**<u>Indemnity Obligations</u>**" shall mean all obligations of the Company to Indemnitee under this Agreement, including the Company's obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement.

"**<u>Independent Counsel</u>**" shall mean a law firm of national reputation in the United States, or a partner or member of such a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding (as defined below) giving rise to a claim for indemnification hereunder; provided, however, that the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

"**<u>Liabilities</u>**" shall mean all claims, liabilities, damages, losses, judgments, orders, fines, penalties and other amounts payable in connection with, arising out of, or in respect of or relating to any Proceeding, including, without limitation, amounts paid in settlement in any Proceeding and all costs and expenses in complying with any judgment, order or decree issued or entered in connection with any Proceeding or any settlement agreement, stipulation or consent decree entered into or issued in settlement of any Proceeding.

"**<u>Person</u>**" shall mean any individual, corporation, partnership, limited partnership, limited liability company, trust, governmental agency or body or any other legal entity.

"**<u>Proceeding</u>**" shall mean any threatened, pending or completed action, claim, suit, arbitration, mediation, alternate dispute resolution mechanism, formal or informal hearing, inquiry or investigation, litigation, inquiry, administrative hearing, document request, interview request, deposition, testimony request, information request, subpoena or regulatory request or any other actual, threatened or completed judicial, administrative or arbitration proceeding (including, without limitation, any such proceeding under the Securities Act of 1933, as amended (the "***Securities Act***"), or the Exchange Act or any other federal law, state law, statute or regulation), whether brought in the right of the Company or otherwise, and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative nature, in each case, in which Indemnitee was, is or will be, or is threatened to be, involved as a party, potential party, witness (including as a non-party witness) or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any actual or alleged action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or inaction) on Indemnitee's part while acting as director or officer of the Company, or by reason of Indemnitee's Corporate Status, including by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee, Agent or fiduciary of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan, non-profit entity or other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement can be provided under this Agreement.

Section 2. **<u>Indemnity in Third-Party Proceedings</u>**. The Company shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all Liabilities and Expenses suffered or reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee's behalf in connection with any Proceeding by reason of Indemnitee's Corporate Status. Pursuant to this Section 2, Indemnitee shall be indemnified and held harmless to the fullest extent permitted by applicable law against all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable cause to believe that Indemnitee's conduct was unlawful.

Section 3. **<u>Indemnity in Proceedings by or in the Right of the Company</u>**. The Company shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all Liabilities and Expenses suffered or reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee's behalf in connection with any Proceeding brought by or in the right of the Company to procure a judgment in its favor by reason of Indemnitee's Corporate Status. Pursuant to this Section 3, Indemnitee shall be indemnified and held harmless to the fullest extent permitted by applicable law against all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this <u>Section 3</u> in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such Expenses which the Delaware Court or such other court shall deem proper.

Section 4. **<u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful</u>**. Notwithstanding any other provisions of this Agreement, and without limiting the rights of Indemnitee under any other provision hereof, including any rights to indemnification pursuant to <u>Sections 2</u> or <u>3</u> hereof, to the fullest extent permitted by applicable law, to the extent that Indemnitee was or is, by reason of Indemnitee's Corporate Status, a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify and hold harmless Indemnitee against all Expenses actually and reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee's behalf in connection with each successfully resolved Proceeding, claim, issue or matter. If Indemnitee is not wholly successful in such Proceeding, the Company also shall, to the fullest extent permitted by applicable law, indemnify and hold harmless Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which Indemnitee was successful. For purposes of this <u>Section 4</u> and without limitation, the termination of any Proceeding or claim, issue or matter in such a Proceeding by dismissal, withdrawal, abandonment, settlement without any admission of liability or wrongdoing by Indemnitee, termination without conviction, acquittal, nolle prosequi, deferred or non-prosecution disposition, or any other termination that does not include a final, non-appealable adjudication adverse to Indemnitee, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 5. **<u>Indemnification For Expenses of a Witness</u>**. Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a witness or otherwise a participant, including by receipt of a subpoena, civil investigative demand, document request, interview request, testimony request or other formal or informal request for information, in any Proceeding (including, without limitation, a Proceeding to which Indemnitee is not a party and is not threatened to be made a party), Indemnitee shall be indemnified against all Expenses suffered or reasonably incurred (or, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee's behalf in connection therewith.

Section 6. **<u>Additional Indemnification</u>**. Notwithstanding any limitation in <u>Sections 2</u>, <u>3,</u> <u>4</u> or <u>5</u> hereof, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) by reason of Indemnitee's Corporate Status against all Liabilities and Expenses suffered or reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee in connection with such Proceeding. For purposes of this <u>Section 6</u>, "to the fullest extent permitted by applicable law" shall include, but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the fullest extent permitted by applicable law, including but not limited to the DGCL and the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

In the event of any change in any applicable law, statute or rule, including but not limited to any change which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties' rights and obligations hereunder.

Section 7. **<u>Contribution in the Event of Joint Liability</u>**<u>.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the fullest extent permissible under applicable law, if the indemnification or hold harmless rights provided for in this Agreement are unavailable to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying, holding harmless or exonerating Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding without requiring Indemnitee to contribute to such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without the prior consent of Indemnitee, the Company shall not enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted or that could be asserted against Indemnitee, does not impose any admission of liability or wrongdoing on Indemnitee, does not impose any payment obligation on Indemnitee that is not fully indemnified or advanced by the Company, does not impose any injunctive relief, conduct restriction, cooperation obligation or other non-monetary burden on Indemnitee, and does not otherwise adversely affect Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company hereby agrees, to the fullest extent permissible under applicable law, to fully indemnify and hold harmless Indemnitee from any claims for contribution which may be brought by officers, directors or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee with respect to such claim.

Section 8. **<u>Exclusions</u>**. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to indemnify or hold harmless Indemnitee, or, in the case of (a) and (c), to advance Expenses to Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for which payment has actually been received by or on behalf of Indemnitee under any insurance policy, contract, agreement or other indemnity or advancement provision, except with respect to any excess beyond the amount actually received under any such insurance policy, contract, agreement, other indemnity or advancement provision or otherwise; provided, however, that payment made to Indemnitee pursuant to an insurance policy purchased and maintained by Indemnitee at his or her own expense of any amounts otherwise indemnifiable or obligated to be made pursuant to this Agreement shall not reduce the Company's obligations to Indemnitee pursuant to this Agreement; for the avoidance of doubt, the Company shall not delay, defer or condition any advancement or indemnification payment on the availability of, or pursuit of recovery from, any insurance policy or other indemnitor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (or any successor rule) or similar provisions of state statutory law or common law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in connection with any Proceeding (or any part of any Proceeding), including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees (including any Agent), unless (i) such indemnification is expressly required to be made by law, (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law or (iv) such Proceeding is being brought by Indemnitee to assert, interpret or enforce Indemnitee's rights under this Agreement, the Certificate of Incorporation, the Bylaws, any D&O insurance policy, any other indemnification agreement, any advancement right, or applicable law (for the avoidance of doubt, Indemnitee shall not be deemed, for purposes of this subsection, to have initiated or brought any claim by reason of (A) having asserted any affirmative defenses in connection with a claim not initiated by Indemnitee or (B) having made any counterclaim (whether permissive or mandatory) in connection with any claim not initiated by Indemnitee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for any reimbursement of the Company by such Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by such person from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "***Sarbanes-Oxley Act***") or Section 952 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the payment to the Company of profits arising from the purchase and sale by such Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if such Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to the extent, and only to the extent, such indemnification or advancement is prohibited by applicable law as determined by a final, non-appealable order of a court of competent jurisdiction, provided, however, that if any of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (1) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any section or clause containing any such provision held to be invalid, illegal or unenforceable, that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (2) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each such portion of any section or clause containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

Notwithstanding anything contained herein to the contrary, Indemnitee shall not be entitled to recover amounts under this Agreement which, when added to the amount of indemnification payments made to, or on behalf of, Indemnitee, under the Certificate of Incorporation or Bylaws of the Company, in the aggregate exceed the Expenses, judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by Indemnitee ("***Excess Amounts***"). To the extent the Company has paid Excess Amounts to Indemnitee, Indemnitee shall be obligated to reimburse the Company for such Excess Amounts after a final, non-appealable determination and only to the extent of actual overpayment.

Section 9. **<u>Advancement</u>**. Notwithstanding any provision of this Agreement to the contrary, the Company shall advance, to the extent not prohibited by applicable law, the Expenses reasonably incurred by Indemnitee in connection with (i) any Proceeding (or any part of any Proceeding) not initiated by Indemnitee or, (ii) any Proceeding (or any part of any Proceeding) initiated by Indemnitee, as provided in <u>Section 8(c)(i) through (iv)</u>, and such advancement shall be made within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding, provided that Expenses consisting of retainers or amounts necessary to respond to an imminent subpoena, filing deadline, hearing, interview or similar deadline shall be advanced as soon as reasonably practicable and in any event within five (5) business days after request. Advances shall be unsecured and interest free. Advances shall, to the fullest extent permitted by law, be made without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all Expenses reasonably incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to repay the amounts advanced only if and to the extent it is finally determined by a final, non-appealable order of a court of competent jurisdiction that Indemnitee is not entitled to indemnification for such Expenses. Nothing in this <u>Section 9</u> shall limit Indemnitee's right to advancement pursuant to this Agreement, the Certificate of Incorporation, the Bylaws, applicable law or otherwise. The execution and delivery by Indemnitee of this Agreement shall constitute such undertaking and no further undertaking shall be required. The Company agrees that for the purposes of any advancement of Expenses for which Indemnitee has made a written demand in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee's counsel as being reasonable shall be presumed conclusively to be reasonable. This Section 9 shall not apply to any Proceeding, claim or matter for which advancement is expressly excluded under Section 8(a) or Section 8(c), or to the extent advancement is prohibited by applicable law as finally determined by a court of competent jurisdiction. No other exclusion from indemnification shall limit the Company's advancement obligations unless advancement itself is prohibited by applicable law.

Section 10. **<u>Procedure for Notification and Defense of Claim</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee shall notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement hereunder. The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding, including any appeal therein. The failure to promptly notify the Company of the commencement of the Proceeding, or of Indemnitee's written request for indemnification, will not relieve the Company from any liability that it may have to Indemnitee hereunder, except to the extent the Company is actually and materially prejudiced in its defense of such Proceeding as a result of such failure; provided, however, that notice will be deemed to have been given without any action on the part of Indemnitee in the event the Company is a party to the same Proceeding. No request, invoice, statement or supporting material submitted by Indemnitee shall be required to disclose privileged or protected information, and the submission of any such material shall not constitute or be deemed to constitute a waiver of any attorney-client privilege, work product protection, common-interest privilege or other applicable protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ legal counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of its assumption of the defense shall be at Indemnitee's expense unless: (i) the employment of legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of the Proceeding, (iii) the fees and expenses are non-duplicative and reasonably incurred in connection with Indemnitee's role in the Proceeding despite the Company's assumption of the defense, (iv) after a change in control, the employment of counsel by Indemnitee has been approved by the Independent Counsel or (v) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of the Proceeding shall be borne by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall have made the determination provided for in (ii) above or under the circumstances provided for in (iii) and (iv) above. Indemnitee agrees that any such separate counsel retained by <u>I</u>ndemnitee will be a member of any approved list of panel counsel under the Company's applicable directors' and officers' liability insurance policy, should the applicable policy provide for a panel of approved counsel and should such approved panel list comprise law firms with well-established reputations in the type of litigation at issue except where panel counsel is conflicted, lacks relevant expertise, or is not acceptable to Indemnitee after consultation. (For clarity, the fact of a firm's being part of a panel shall not be evidence of a firm's having a well-established national reputation for the type of litigation at issue). To the fullest extent permitted by the DGCL, the Company's assumption of the defense of a Proceeding in accordance with this <u>Section 10(b)</u> will constitute an irrevocable acknowledgement by the Company that any loss and liability suffered by Indemnitee and Expenses (including attorneys' fees), judgments, fines and amounts paid in settlement by or for the account of Indemnitee incurred in connection therewith are indemnifiable by the Company under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The determination whether to grant Indemnitee's indemnification request shall be made promptly and in any event within sixty (60) days following the Company's receipt of a request for indemnification in accordance with <u>Section 10(a)</u>. If the Company determines that Indemnitee is entitled to such indemnification or, as contemplated by <u>Section 10(b)</u> the Company has acknowledged such entitlement, the Company will make the required payment in accordance with this Agreement to Indemnitee of the indemnifiable amount within such 60 day period. If the Company is not deemed to have so acknowledged such entitlement or the Company's determination of whether to grant Indemnitee's indemnification request shall not have been made within such sixty (60) day period, the requisite determination of entitlement to indemnification shall, subject to <u>Section 8</u>, nonetheless be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under the DGCL. In making any determination with respect to entitlement to indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement, and the Company shall have the burden of proving by clear and convincing evidence that Indemnitee is not so entitled. The termination of any Proceeding by judgment, order, settlement, conviction, plea, deferred prosecution arrangement, non-prosecution arrangement or otherwise shall not, of itself, create a presumption that Indemnitee did not satisfy any applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that (i) a determination is made pursuant to <u>Section 10</u> of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement is not timely made pursuant to <u>Section 9</u> of this Agreement, (iii) no determination of entitlement to indemnification shall have been timely made pursuant to <u>Section 10(c)</u> of this Agreement within sixty (60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to <u>Sections</u> <u>4</u> or <u>5</u> or the fifth to the last sentence of <u>Section 9</u> of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to <u>Sections 2</u>, <u>3</u> or <u>6</u> of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other Person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of competent jurisdiction of Indemnitee's entitlement to such indemnification or advancement. Alternatively, Indemnitee, at Indemnitee's option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration. The Company shall indemnify the Indemnitee against any and all expenses that are incurred by the Indemnitee in connection with any action for indemnification or advancement of expenses from the Company under this Section 10(a), to the extent such Indemnitee is successful in such action, and to the extent not prohibited by law. In any such proceeding, the review shall be de novo, Indemnitee shall be presumed entitled to the requested indemnification or advancement, the Company shall bear the burden of proving that Indemnitee is not entitled to such indemnification or advancement, and no prior determination by the Company, the Board, Independent Counsel or any other Person shall create a presumption adverse to Indemnitee. The Company shall advance and indemnify Indemnitee against all Expenses incurred by Indemnitee in connection with any action to interpret, enforce or defend Indemnitee's rights under this Agreement, to the fullest extent permitted by applicable law, and shall pay such Expenses in accordance with Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If there is a change in control of the Company, upon written request by Indemnitee for indemnification pursuant to Section 10(a), any determination, if required by the DGCL, with respect to Indemnitee's entitlement thereto shall be made by Independent Counsel selected by Indemnitee with the consent of the Company (such consent not to be unreasonably withheld, conditioned or delayed) in a written opinion, a copy of which shall be delivered to the Company and Indemnitee, and the Company agrees to pay the fees and expenses of the Independent Counsel.

Section 11. **<u>Security</u>**. Notwithstanding anything herein to the contrary, to the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee.

Section 12. **<u>Non-Exclusivity; Survival of Rights; Insurance; Subrogation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of indemnification and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee prior to such amendment, alteration or repeal. The Company shall not adopt any amendment or alteration to, or repeal of, the Certificate of Incorporation or the Bylaws, the effect of which would be to deny, diminish or encumber the Indemnitee's rights to indemnification pursuant to this Agreement, the Certificate of Incorporation, the Bylaws or applicable law relative to such rights prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement than would be afforded currently under the Certificate of Incorporation, the Bylaws or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. The Company shall not withhold, delay, reduce, offset or condition any indemnification or advancement payment on the basis of any claim, counterclaim, setoff, recoupment or other alleged right that the Company or any other Person may have against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The DGCL permits the Company to purchase and maintain insurance on behalf of Indemnitee against any liability asserted against Indemnitee or incurred by or on behalf of Indemnitee or in such capacity as a director, officer or employee of the Company or as an <u>A</u>gent of another Enterprise, or arising out of Indemnitee's status as such, whether or not the Company would have the power to indemnify Indemnitee against such liability under the DGCL, as it may then be in effect. The purchase, establishment, and maintenance of any such insurance shall not in any way limit or affect the rights and obligations of the Company or of Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights and obligations of the Company or the other party or parties thereto with respect to any such insurance. The Company shall obtain and maintain in effect during the entire period for which the Company is obligated to indemnify Indemnitee under this Agreement, one or more policies of insurance with reputable insurance companies to provide the officers/directors of the Company with coverage for losses from wrongful acts and omissions on terms no less favorable than those provided to any other current or former director or officer of the Company and no less favorable than coverage customarily maintained by similarly situated public companies, in each case to the fullest extent commercially available on commercially reasonable terms and to ensure the Company's performance of its indemnification obligations under this Agreement. Such insurance shall include Side A coverage, and the Company shall use commercially reasonable efforts to maintain Side A difference-in-conditions coverage. The policies shall provide that insurance proceeds payable to individual insureds have priority over entity coverage to the maximum extent available. In the event of a change in control or the Company's becoming insolvent, the Company shall maintain in force any and all insurance policies then maintained by the Company in providing insurance (directors' and officers' liability, fiduciary, employment practices or otherwise) in respect of the individual directors and officers of the Company, for a fixed period of six years thereafter (a "Tail Policy"). Such coverage shall be non-cancellable and shall be placed and serviced for the duration of its term by the Company's incumbent insurance broker. Such broker shall place the Tail Policy with the incumbent insurance carriers using the policies that were in place at the time of the event giving rise to the change in control (unless the incumbent carriers will not offer such policies, in which case the Tail Policy placed by the Company's insurance broker shall be substantially comparable in scope and amount as the expiring policies, and the insurance carriers for the Tail Policy shall have an AM Best rating that is the same or better than the AM Best ratings of the expiring policies). The Company must give Indemnitee prompt notice of cancellation, non-renewal, material reduction, reservation of rights, denial of coverage, exhaustion risk, or erosion of limits, and must provide copies of policies, binders, endorsements and correspondence upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, trustees, or <u>A</u>gents of any Enterprise in accordance with Section 12(b) above, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee, trustee or <u>A</u>gent under such policy or policies and such policies shall provide for and recognize that the insurance policies are primary to any rights to indemnification, advancement or insurance proceeds to which Indemnitee may be entitled from one or more Persons with whom or which Indemnitee may be associated to the same extent as the Company's indemnification and advancement obligations set forth in this Agreement. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary and desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. Further, if requested by Indemnitee, within two (2) business days of such request, the Company will instruct the insurance carriers and the Company's insurance broker that they may communicate directly with Indemnitee regarding such claim. The Company shall not take any action, or fail to take any action, that would reasonably be expected to prejudice or impair coverage available to Indemnitee, and shall cooperate with Indemnitee in pursuing coverage for any Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of any payment under this Agreement, the Company to the fullest extent permitted by law shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. The Company shall not exercise any right of subrogation unless and until Indemnitee has been fully indemnified, advanced and reimbursed for all Liabilities and Expenses with respect to the applicable Proceeding. No subrogation right shall require Indemnitee to waive or impair any privilege, work product protection or defense, or to take any action that would reasonably be expected to prejudice Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company's obligation to indemnify, hold harmless, or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, manager, managing member, fiduciary, employee or Agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or hold harmless payments or advancement of expenses from such Enterprise. Notwithstanding any other provision of this Agreement to the contrary, (i) Indemnitee shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification, hold harmless, advancement, contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company's satisfaction and performance of all its obligations under this Agreement, and (ii) the Company shall perform fully its obligations under this Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, hold harmless, contribution or insurance coverage rights against any person or entity other than the Company.

Section 13. **<u>Section 409A of the Code</u>**. If Indemnitee's right to payment or reimbursement of indemnification or expenses pursuant to this Agreement would not be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") pursuant to Treasury Regulation Section 1.409A-1(b)(10), then (a) the payment or reimbursement of indemnification and expenses provided or advanced to or for Indemnitee pursuant to this Agreement in one taxable year shall not affect the amount of indemnification and Expenses provided or advanced to or for Indemnitee in any other taxable year, (b) any reimbursement to Indemnitee of expenses under this Agreement shall be paid to Indemnitee on or before the last day of Indemnitee's taxable year following the taxable year in which the Expense was incurred and (c) the right to advancement, reimbursement or payment of indemnification and <u>E</u>xpenses under this Agreement may not be liquidated or exchanged for any other benefit. In addition, to the extent that this Agreement is subject to Section 409A of the Code, this Agreement shall be interpreted and enforced so as to avoid any tax, penalty or interest under Section 409A of the Code. For purposes of this <u>Section 13</u>, "Expenses" shall be deemed to include, in addition to those items included in the definition thereof in <u>Section 1</u>, any liability, loss, judgment, fine and amounts paid in settlement.

Section 14. **<u>Duration of Agreement; Not Employment Contract</u>**. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee serves as a director, officer, employee, agent, fiduciary or other official of the Company or in any other Corporate Status or as a director, officer, trustee, partner, manager, managing member, fiduciary, employee or Agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee serves at the request of the Company and shall continue thereafter so long as Indemnitee shall be subject to any possible Proceeding by reason of Indemnitee's Corporate Status, whether or not Indemnitee is acting in any such capacity at the time any liability or expense is incurred for which indemnification or advancement can be provided under this Agreement. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any other Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee's employment with the Company (or any of its subsidiaries or any other Enterprise), if any, is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any other Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director of the Company, by the Certificate of Incorporation, the Bylaws or the DGCL.

Section 15. **<u>Severability</u>**. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law; (b) such provision or provisions shall be deemed reformed or amended to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 16. **<u>Enforcement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company or other Corporate Status or as a director, officer, trustee, partner, managing member, employee, Agent or fiduciary of the Enterprise, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company or as a director, officer, trustee, partner, managing member, employee, Agent or fiduciary of the Enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting any of the rights of Indemnitee under the Certificate of Incorporation or Bylaws (which rights shall continue in full force and effect and shall be in addition to the rights provided hereunder) any directors' and officers' liability insurance policy, any other indemnification or advancement agreement, any rights under applicable law, this Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and applicable law, and shall not be deemed a substitute therefor, nor diminish or abrogate any rights of Indemnitee thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The indemnification, hold harmless, and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation, division or otherwise to all or substantially all of the business and/or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, or employee of the Company or <u>A</u>gent of any other Enterprise, and shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may, to the fullest extent permitted by law, enforce this Agreement by seeking, among other things, injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. The Company and Indemnitee further agree that Indemnitee shall, to the fullest extent permitted by law, be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court of competent jurisdiction. The Company hereby waives any such requirement of such a bond or undertaking to the fullest extent permitted by law.

Section 17. **<u>Modification and Waiver</u>**. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the Company and Indemnitee. No waiver of any of the provisions of this Agreement shall be deemed to be or shall constitute a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver.

Section 18. **<u>Notices</u>**. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by email or facsimile transmission, with receipt of oral or email confirmation that such transmission has been received:

&nbsp;&nbsp;&nbsp;&nbsp;(i) If to Indemnitee, at the address indicated on the signature
page of this Agreement, or such other address as Indemnitee shall provide to the Company in accordance with the notice provisions in
this Section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) If to the Company to:

Ionic Digital Inc.

650 Massachusetts Avenue Northwest

6<sup>th</sup> Floor

Washington, DC 20001

Attention: General Counsel

E-mail: legal@ionicdigital.com

or to any other address as may have been furnished to Indemnitee by the Company in accordance with the notice provisions in this Section of this Agreement.

Section 19. **<u>Notices by the Company</u>**. If the Indemnitee is the subject of, or is, to the knowledge of the Company, implicated in any way during an investigation, whether formal or informal, that is related to Indemnitee's Corporate Status and that reasonably could lead to a Proceeding for which indemnification can be provided under this Agreement, the Company shall notify the Indemnitee of such investigation and shall share (to the extent legally permissible) with Indemnitee any information it has provided to any third parties concerning the investigation ("Shared Information"). By executing this Agreement, Indemnitee agrees that such Shared Information may be material non-public information and that Indemnitee is thus obligated to hold such information in confidence and not disclose it publicly; provided, however, that Indemnitee may use the Shared Information and disclose such Shared Information to Indemnitee's legal counsel and third parties, in each case solely in connection with defending Indemnitee from legal liability. The sharing of any Shared Information shall not constitute or be deemed to constitute a waiver of attorney-client privilege, work product protection, common-interest privilege or any other applicable protection.

Section 20. **<u>Applicable Law and Consent to Jurisdiction</u>**. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court, and not in any other state or federal court in the United States of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) consent to service of process at the address set forth in <u>Section 18</u> of this Agreement with the same legal force and validity as if served upon such party personally within the State of Delaware, (d) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (e) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum or is subject (in whole or in part) to a jury trial. To the fullest extent permitted by law, the parties hereby agree that the mailing of process and other papers in connection with any such action or proceeding in the manner provided by <u>Section 18</u> or in such other manner as may be permitted by law, shall be valid and sufficient service thereof.

Section 21. **<u>Counterparts</u>**. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 22. **<u>Miscellaneous</u>**. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 23. **<u>Additional Acts</u>**. If for the validation of any of the provisions in this Agreement any act, resolution, approval or other procedure is required to the fullest extent permitted by law, the Company undertakes to cause such act, resolution, approval or other procedure to be <u>e</u>ffected or adopted in a manner that will enable the Company to fulfill its obligations under this Agreement.

 

*[signature page follows]*

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | |
| **IONIC DIGITAL INC.** | **INDEMNITEE:** |
| By: | By: |
| Name: | Name: |
| Title: | Title: |
|  | Address: |

---

## Exhibit 10.5

**Exhibit 10.5**

**IONIC DIGITAL INC.**

**OMNIBUS INCENTIVE PLAN**

**Article I.**<br> **PURPOSE**

The purpose of this Ionic Digital Inc. Omnibus Incentive Plan (this "**<u>Plan</u>**") is to promote the success of the Company's business for the benefit of its stockholders by enabling the Company to offer Eligible Individuals cash and stock-based incentives in order to attract, retain, and reward such individuals and strengthen the mutuality of interests between such individuals and the Company's stockholders. This Plan is effective as of the date set forth in <u>Article XIV</u>.

**Article II.**<br> **DEFINITIONS**

For purposes of this Plan, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 "**<u>Affiliate</u>**" means a corporation or other entity controlled by, controlling, or under common control with the Company. The term "control" (including, with correlative meaning, the terms "controlled by" and "under common control with"), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of such Person, whether through the ownership of voting or other securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 "**Ap<u>plicable Law</u>**" means the requirements relating to the administration of equity-based awards and the related shares under U.S. state corporate law, U.S. federal and state securities laws, the rules of any stock exchange or quotation system on which the shares are listed or quoted, and any other applicable laws, including tax laws, of any U.S. or non-U.S. jurisdictions where Awards are, or will be, granted under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 "**<u>Award</u>**" means any award under this Plan of any Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Units, Performance Award, Other Stock-Based Award, or Cash Award. All Awards shall be evidenced by and subject to the terms of an Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 "**<u>Award A</u>g<u>reement</u>**" means the written or electronic agreement, contract, certificate, or other instrument or document evidencing the terms and conditions of an individual Award. Each Award Agreement shall be subject to the terms and conditions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 "**<u>Board</u>**" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 "**<u>Cash Award</u>**" means an Award granted to an Eligible Individual pursuant to <u>Section 9.3</u> of this Plan and payable in cash at such time or times and subject to such terms and conditions as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 "**<u>Cause</u>**" means, unless otherwise determined by the Committee in the applicable Award Agreement, with respect to a Participant's Termination of Service, the following: (a) in the case where there is no employment agreement, offer letter, consulting agreement, change in control agreement, or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is such agreement in effect but it does not define "cause" (or words of like import)), the Participant's (i) willful neglect in the performance of the Participant's duties to the Company or willful or repeated failure or refusal to perform such duties, (ii) engagement in conduct in connection with the Participant's employment or services for the Company, which results, or could reasonably be expected to result in, material harm to the business or reputation of the Company or an Affiliate, (iii) conviction of, or plea of guilty or no contest to (A) any felony or (B) any other crime that results, or could reasonably be expected to result in, material harm to the business or reputation of the Company or an Affiliate, (iv) material violation of the written policies of the Company, including but not limited to those relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Company, (v) fraud or misappropriation, embezzlement, or misuse of funds or property belonging to the Company or an Affiliate, (vi) act of personal dishonesty that involves personal profit in connection with the Participant's employment with the Company or an Affiliate, or (vii) any breach of any non-competition, non-solicitation, no-hire, or confidentiality covenant between the Participant and the Company or an Affiliate; or (b) in the case where there is an employment agreement, offer letter, consulting agreement, change in control agreement, or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award that defines "cause" (or words of like import), "cause" as defined under such agreement; <u>provided</u>, <u>however</u>, that with regard to any agreement under which the definition of "cause" only applies on occurrence of a change in control, such definition of "cause" shall not apply until a change in control (as defined in such agreement) actually takes place and then only with regard to a termination thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 "**<u>Chan</u>g<u>e in Control</u>**" means and includes each of the following, unless otherwise determined by the Committee in the applicable Award Agreement or other written agreement with a Participant approved 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;(a) any Person (other than the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the Company), becoming the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities, excluding for purposes herein, acquisitions pursuant to a Business Combination (as defined below) that does not constitute a Change in Control as defined in <u>Section 2.8</u>(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a merger, reorganization, or consolidation of the Company or in which equity securities of the Company are issued (each, a "**<u>Business Combination</u>**"), other than a merger, reorganization or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its direct or indirect parent) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity (or, as applicable, a direct or indirect parent of the Company or such surviving entity) outstanding immediately after such merger, reorganization or consolidation; <u>provided</u>, <u>however</u>, that a merger, reorganization or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person (other than those covered by the exceptions in <u>Section 2.8</u>(a)) acquires more than 50% of the combined voting power of the Company's then outstanding securities shall not constitute a Change in 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;(c) during the period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new director(s) (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in <u>Sections 2.8</u>(a) or (b)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; 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;(d) a complete liquidation or dissolution of the Company or the consummation of a sale or disposition by the Company of all or substantially all of the Company's assets other than the sale or disposition of all or substantially all of the assets of the Company to a Person or Persons who beneficially own, directly or indirectly, 50% or more of the combined voting power of the outstanding voting securities of the Company at the time of the sale.

Notwithstanding the foregoing, with respect to any Award that is characterized as "nonqualified deferred compensation" within the meaning of Section 409A of the Code, an event shall not be considered to be a Change in Control under this Plan for purposes of payment of such Award unless

such event is also a "change in ownership," a "change in effective control," or a "change in the ownership of a substantial portion of the assets" of the Company within the meaning of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 "**<u>Chan</u>g<u>e in Control Price</u>**" means the highest price per Share paid in any transaction related to a Change in Control as determined by the Committee in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 "**<u>Code</u>**" means the U.S. Internal Revenue Code of 1986, as amended from time to time. Any reference to any section of the Code shall also be a reference to any successor provision and any guidance and treasury regulation promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 "**<u>Committee</u>**" means any committee of the Board duly authorized by the Board to administer this Plan; <u>provided</u>, <u>however</u>, that unless otherwise determined by the Board, the Committee shall consist solely of two or more members of the Board who are each (a) a "non-employee director" within the meaning of Rule 16b-3(b), and (b) "independent" under the listing standards or rules of the securities exchange upon which the Common Stock is traded, but only to the extent such independence is required in order to take the action at issue pursuant to such standards or rules. If no committee is duly authorized by the Board to administer this Plan, the term "Committee" shall be deemed to refer to the Board for all purposes under this Plan. The Board may abolish any Committee or re-vest in itself any previously delegated authority from time to time, and will retain the right to exercise the authority of the Committee to the extent consistent with Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 "**<u>Common Stock</u>**" means the common stock, $0.00001 par value per share, of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 "**<u>Compan</u>y**" means Ionic Digital Inc., a Delaware corporation, and its successors by operation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 "**<u>Consultant</u>**" means any natural person who is an advisor or consultant or other service provider to the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 "**<u>Detrimental Conduct</u>**" means, as determined by the Company, a Participant's serious misconduct or unethical behavior, including any of the following: (a) any violation by the Participant of a restrictive covenant agreement that the Participant has entered into with the Company or an Affiliate (covering, for example, confidentiality, non-competition, non-solicitation, non-disparagement, *etc*.); (b) any conduct by the Participant that could result in the Participant's Termination of Service for Cause; (c) the commission of a criminal act by the Participant, whether or not performed in the workplace, that subjects, or if generally known would subject, the Company or an Affiliate to public ridicule or embarrassment, or other improper or intentional conduct by the Participant causing reputational harm to the Company, an Affiliate, or a client or former client of the Company or an Affiliate; (d) the Participant's breach of a fiduciary duty owed to the Company or an Affiliate or a client or former client of the Company or an Affiliate; (e) the Participant's intentional violation, or grossly negligent disregard, of the Company's or an Affiliate's policies, rules, or procedures; or (f) the Participant taking or maintaining trading positions that result in a need to restate financial results in a subsequent reporting period or that result in a significant financial loss to the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 "**<u>Disabilit</u>y**" means, unless otherwise determined by the Committee in the applicable Award Agreement, with respect to a Participant's Termination of Service, any physical or mental disability or infirmity of a Participant that prevents the performance of the Participant's duties for a period of (a) 90 consecutive days or (b) 120 non-consecutive days during any 12-month period. Any question as to the existence, extent, or potentiality of a Participant's Disability upon which the Participant and the Company cannot agree shall be determined by a qualified, independent physician mutually selected by the Company and the Participant or the Participant's representative (which approval shall not be unreasonably withheld, delayed or conditioned). The determination of any such physician shall be final and conclusive for all purposes of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 "**<u>Dividend E</u>q<u>uivalent Ri</u>g<u>hts</u>**" means a right granted to a Participant under this Plan to receive the equivalent value (in cash or Shares) of dividends paid on Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 "**<u>Effective Date</u>**" means the effective date of this Plan as defined in <u>Article XIV</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 "**<u>Eli</u>g<u>ible Em</u>ployee**" means each employee of the Company or any of its Affiliates. An employee on a leave of absence may be an Eligible Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 "**<u>Eli</u>g<u>ible Individual</u>**" means an Eligible Employee, Non-Employee Director, or Consultant who is designated by the Committee in its discretion as eligible to receive Awards subject to the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 "**<u>Exchan</u>g<u>e Act</u>**" means the Securities Exchange Act of 1934, as amended from time to time. Reference to a specific section of the Exchange Act or regulation thereunder shall include such section or regulation, any valid regulation or interpretation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing, or superseding such section or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 "**<u>Fair Market Value</u>**" means, for purposes of this Plan, unless otherwise required by any applicable provision of the Code or any regulations issued thereunder, as of any date and except as provided below, the last sales price reported for the Common Stock on the applicable date: (a) as reported on the principal national securities exchange in the United States on which it is then traded, listed or otherwise reported or quoted or (b) if the Common Stock is not traded, listed, or otherwise reported or quoted, the Committee shall determine in good faith the Fair Market Value in whatever manner it considers appropriate, taking into account the requirements of Section 409A of the Code. For purposes of the grant of any Award, the applicable date shall be the trading day immediately prior to the date on which the Award is granted. For purposes of the exercise of any Award, the applicable date shall be the date a notice of exercise is received by the Committee or, if not a date on which the applicable market is open, the next day that it is open. Notwithstanding the foregoing, with respect to any Award granted on the pricing date of the Company's initial public offering, the Fair Market Value shall mean the initial public offering price of a Share as set forth in the Company's final prospectus relating to its initial public offering filed with the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 "**<u>Family Member</u>**" means "family member" as defined in Section A.1.(a)(5) of the general instructions of Form S-8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 "**<u>Incentive Stock Option</u>**" means any Stock Option granted to an Eligible Employee who is an employee of the Company or its Subsidiaries under this Plan and that is intended to be, and is designated as, an "Incentive Stock Option" within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 "**<u>Non-Employee Director</u>**" means a director on the Board who is not an employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 "**<u>Non-</u>Q<u>ualified Stock Option</u>**" means any Stock Option granted under this Plan that is not an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 **"<u>Other Stock-Based Award</u>**" means an Award granted under <u>Article IX</u> of this Plan that is valued in whole or in part by reference to, or is payable in or otherwise based on, Shares, but may be settled in the form of Shares or cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 "**<u>Participant</u>**" means an Eligible Individual to whom an Award has been granted pursuant to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 "**<u>Performance Award</u>**" means an Award granted under <u>Article VIII</u> of this Plan contingent upon achieving certain Performance Goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 "**<u>Performance Goals</u>**" means goals established by the Committee as contingencies for Awards to vest and/or become exercisable or distributable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31 "**<u>Performance Period</u>**" means the designated period during which the Performance Goals must be satisfied with respect to the Award to which the Performance Goals relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32 "**<u>Person</u>**" means any "person" as such term is used in Sections 13(d) and 14(d) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33 "**<u>Restricted Stock</u>**" means an Award of Shares granted under <u>Article VII</u> of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34 "**<u>Restricted Stock Unit</u>**" means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in cash or other consideration determined by the Committee to be of equal value as of such settlement date, subject to certain vesting conditions and other restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35 "**<u>Rule 16b-3</u>**" means Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36 "**<u>Section 409A of the Code</u>**" means the nonqualified deferred compensation rules under Section 409A of the Code and any applicable treasury regulations and other official guidance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37 "**<u>Securities Act</u>**" means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Reference to a specific section of the Securities Act or regulation thereunder shall include such section or regulation, any valid regulation or interpretation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing, or superseding such section or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.38 "**<u>Shares</u>**" means shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.39 "**<u>Stock A</u>p<u>preciation Ri</u>ght**" means a stock appreciation right granted under <u>Article VI</u> of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.40 "**<u>Stock Option</u>**" or "**O<u>ption</u>**" means any option to purchase Shares granted pursuant to <u>Article VI</u> of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41 "**<u>Subsidiar</u>y**" means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.42 "**<u>Ten Percent Stockholder</u>**" means a Person owning stock representing more than 10% of the total combined voting power of all classes of stock of the Company or its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.43 "**<u>Termination of Service</u>**" means the termination of the applicable Participant's employment with, or performance of services for, the Company and its Affiliates. Unless otherwise determined by the Committee, (a) if a Participant's employment or services with the Company and its Affiliates terminates but such Participant continues to provide services to the Company and its Affiliates in a non-employee capacity, such change in status shall not be deemed a Termination of Service with the Company and its Affiliates and (b) a Participant employed by, or performing services for an Affiliate that ceases to be an Affiliate shall also be deemed to have incurred a Termination of Service provided the Participant does not immediately thereafter become an employee of the Company or another Affiliate. Notwithstanding the foregoing provisions of this definition, with respect to any Award that constitutes a "nonqualified deferred compensation plan" within the meaning of Section 409A of the Code, a Participant shall not be considered to have experienced a "Termination of Service" unless the Participant has experienced a "separation from service" within the meaning of Section 409A of the Code.

**Article III.**<br> **ADMINISTRATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **<u>Authorit</u>y <u>of the Committee</u>**. This Plan shall be administered by the Committee. Subject to the terms of this Plan and Applicable Law, the Committee shall have full authority to grant Awards to Eligible Individuals under this Plan. In particular, the Committee shall 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;(a) determine whether and to what extent Awards, or any combination thereof, are to be granted hereunder to one or more Eligible Individuals;

&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) determine the number of Shares to be covered by each Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) determine the terms and conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder (including, but not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof, or any forfeiture restrictions or waiver thereof, regarding any Award and the Shares, if any, relating thereto, based on such factors, if any, as the Committee shall determine, in its sole discretion);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) determine the amount of cash to be covered by each Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) determine whether, to what extent, and under what circumstances grants of Options and other Awards under this Plan are to operate on a tandem basis and/or in conjunction with or apart from other awards made by the Company outside 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;(f) determine whether and under what circumstances an Award may be settled in cash, Shares, other property, or a combination of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) determine whether, to what extent and under what circumstances cash, Shares, or other property and other amounts payable with respect to an Award under this Plan shall be deferred either automatically or at the election of 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;(h) modify, waive, amend, or adjust the terms and conditions of any Award, at any time or from time to time, including but not limited to Performance Goals;

&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) determine whether a Stock Option is an Incentive Stock Option or Non-Qualified Stock 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;(j) determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of Shares acquired pursuant to the exercise or vesting of an Award for a period of time as determined by the Committee, in its sole discretion, following the date of the acquisition of such Award or Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) modify, extend, or renew an Award, subject to <u>Article XI</u> and <u>Section 6.8</u>(g) of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **<u>Guidelines</u>**. Subject to <u>Article XI</u> of this Plan, the Committee shall have the authority to adopt, alter, and repeal such administrative rules, guidelines, and practices governing this Plan and perform all acts, including the delegation of its responsibilities (to the extent permitted by Applicable Law and applicable stock exchange rules), as it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of this Plan and any Award issued under this Plan (and any agreements or sub-plans relating thereto); and to otherwise supervise the administration of this Plan. The Committee may correct any defect, supply any omission, or reconcile any inconsistency in this Plan or in any agreement relating thereto in the manner and to the extent it shall deem necessary to effectuate the purpose and intent of this Plan. The Committee may adopt special rules, sub-plans, guidelines, and provisions for persons who are residing in or employed in, or subject to, the taxes of any domestic or foreign jurisdictions to satisfy or accommodate applicable foreign laws or to qualify for preferred tax treatment of such domestic or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 **<u>Decisions Final</u>**. Any decision, interpretation, or other action made or taken in good faith by or at the direction of the Company, the Board, or the Committee (or any of its members) arising out of or in connection with this Plan shall be within the absolute discretion of all and each of them, as the case may be, and shall be final, binding, and conclusive on the Company and all employees and Participants and their respective heirs, executors, administrators, successors, and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 **<u>Designation of Consultants/Liability; Delegation of Authority</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee may employ such legal counsel, consultants, and agents as it may deem desirable for the administration of this Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or agent. Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant, or agent shall be paid by the Company. The Committee, its members, and any person designated pursuant to this <u>Section 3.4</u> shall not be liable for any action or determination made in good faith with respect to this Plan. To the maximum extent permitted by Applicable Law, no officer of the Company or member or former member of the Committee or of the Board shall be liable for any action or determination made in good faith with respect to this Plan or any Award granted under it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee may delegate any or all of its powers and duties under this Plan to a subcommittee of directors or to any officer of the Company, including the power to perform administrative functions (including executing agreements or other documents on behalf of the Committee) and grant Awards; <u>provided</u> that, such delegation does not (i) violate Applicable Law, or (ii) result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company. Upon any such delegation, all references in this Plan to the "Committee," shall be deemed to include any subcommittee or officer of the Company to whom such powers have been delegated by the Committee. Any such delegation shall not limit the right of such subcommittee members or such an officer to receive Awards; <u>provided</u>, <u>however</u>, that such subcommittee members and any such officer may not grant Awards to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate, or take any action with respect to any Award previously granted to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate. The Committee may also designate employees or professional advisors who are not executive officers of the Company or members of the Board to assist in administering this Plan, <u>provided</u>, <u>however</u>, that such individuals may not be delegated the authority to grant or modify any Awards that will, or may, be settled in Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 **<u>Indemnification</u>**. To the maximum extent permitted by Applicable Law and to the extent not covered by insurance directly insuring such person, each current and former officer or employee of the Company or any of its Affiliates and member or former member of the Committee or the Board shall be indemnified and held harmless by the Company against any cost or expense (including reasonable fees of counsel acceptable to the Committee) or liability (including any sum paid in settlement of a claim with the approval of the Committee), and advanced amounts necessary to pay the foregoing at the earliest time and to the fullest extent permitted, arising out of any act or omission to act in connection with the administration of this Plan, except to the extent arising out of such officer's, employee's, member's, or former member's own fraud or bad faith. Such indemnification shall be in addition to any right of indemnification that the current or former employee, officer or member may have under Applicable Law or under the by-laws of the Company or any of its Affiliates. Notwithstanding anything else herein, this indemnification will not apply to the actions or determinations made by an individual with regard to Awards granted to such individual under this Plan.

**Article IV.**<br> **SHARE LIMITATION BRACKET THE EVERGREEN SECTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 **<u>Shares</u>**. The aggregate number of Shares that may be issued pursuant to this Plan shall not exceed 4,317,960 Shares (subject to any increase or decrease pursuant to this <u>Article IV</u>), which may be either authorized and unissued Shares or Shares held in or acquired for the treasury of the Company or both. The number of Shares that may be issued or used under this Plan shall be subject to an annual increase on January 1 of each calendar year beginning in 2025, and ending and including 2034, equal to the lesser of (a) 4% of the aggregate number of Shares outstanding on December 31 of the immediately preceding calendar year and (b) such smaller number of Shares as is determined by the Board. The aggregate number of Shares that may be issued or used with respect to any Incentive Stock Option shall not exceed 4,317,960 Shares (subject to any increase or decrease pursuant to <u>Section 4.1</u>). Any Award under this Plan settled in cash shall not be counted against the foregoing maximum share limitations. Any Shares subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full number of Shares to which the Award related will again be available for issuance under this Plan. Notwithstanding anything to the contrary contained herein, Shares subject to an Award under this Plan shall again be made available for issuance or delivery under this Plan if such Shares are (i) Shares tendered in payment of an Option, (ii) Shares delivered or withheld by the Company to satisfy any tax withholding obligation, (iii) Shares covered by a stock-settled Stock Appreciation Right or other Awards that were not issued upon the settlement of the Award, or (iv) Shares subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full number of Shares to which the Award related.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **<u>Substitute Awards</u>**. In connection with an entity's merger or consolidation with the Company or the Company's acquisition of an entity's property or stock, the Committee may grant Awards in substitution for any options or other stock or stock-based awards granted before such merger or consolidation by such entity or its affiliate ("**<u>Substitute Awards</u>**"). Substitute Awards may be granted on such terms as the Committee deems appropriate, notwithstanding limitations on Awards in this Plan. Substitute Awards will not count against the Shares authorized for grant under this Plan (nor shall Shares subject to a Substitute Award be added to the Shares available for Awards under this Plan as provided under <u>Section 4. 1</u> above), except that Shares acquired by exercise of substitute Incentive Stock Options will count against the maximum number of Shares that may be issued pursuant to the exercise of Incentive Stock Options under this Plan, as set forth in <u>Section 4.1</u> above. Additionally, in the event that a Person acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grants pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under this Plan and shall not reduce the Shares authorized for grant under this Plan (and Shares subject to such Awards shall not be added to the Shares available for Awards under this Plan as provided under <u>Section 4.1</u> above); <u>provided</u> that, Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Eligible Employees or Non-Employee Directors prior to such acquisition or combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **<u>Adjustments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The existence of this Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize (i) any adjustment, recapitalization, reorganization, or other change in the Company's capital structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds, debentures, or preferred or prior preference stock ahead of or affecting the Shares, (iv) the dissolution or liquidation of the Company or any Affiliate, (v) any sale or transfer of all or part of the assets or business of the Company or any Affiliate, or (vi) any other corporate act or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions of <u>Section 10.1</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Company at any time subdivides (by any split, recapitalization or otherwise) the outstanding Shares into a greater number of Shares, or combines (by reverse split, combination, or otherwise) its outstanding Shares into a lesser number of Shares, then the respective exercise prices for outstanding Awards that provide for a Participant-elected exercise and the number of Shares covered by outstanding Awards shall be appropriately adjusted by the Committee to prevent dilution or enlargement of the rights granted to, or available for, Participants under this Plan; <u>provided</u> that, the Committee in its sole discretion shall determine whether an adjustment is 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Excepting transactions covered by <u>Section 4.3</u>(b)(i), if the Company effects any merger, consolidation, statutory exchange, spin-off, reorganization, sale or transfer of all or substantially all the Company's assets or business, or other corporate transaction or event in such a manner that the Company's outstanding Shares are converted into the right to receive (or the holders of Common Stock are entitled to receive in exchange therefor), either immediately or upon liquidation of the Company, securities or other property of the Company or other entity, then, subject to the provisions of <u>Section 10.1</u>: (A) the aggregate number or kind of securities that thereafter may be issued under this Plan; (B) the number or kind of securities or other property (including cash) to be issued pursuant to Awards granted under this Plan (including as a result of the assumption of this Plan and the obligations hereunder by a successor entity, as applicable); or (C) the exercise or purchase price thereof, shall be appropriately adjusted by the Committee to prevent dilution or enlargement of the rights granted to, or available for, Participants under this Plan; <u>provided</u> that, the Committee in its sole discretion shall determine whether an adjustment is 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If there shall occur any change in the capital structure of the Company other than those covered by <u>Section 4.3</u>(b)(i) or <u>4. 3</u>(b)(ii), any conversion, any adjustment, or any issuance of any class of securities convertible or exercisable into, or exercisable for, any class of equity securities of the Company, then the Committee shall adjust any Award and make such other adjustments to this Plan to prevent dilution or enlargement of the rights granted to, or available for, Participants under this Plan; <u>provided</u> that, the Committee in its sole discretion shall determine whether an adjustment is 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other extraordinary transaction or change affecting the Shares or the Share price, including any securities offering or other similar transaction, for administrative convenience, the Committee may refuse to permit the exercise of any Award for up to 60 days before or after such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Committee may adjust the Performance Goals applicable to any Awards to reflect any unusual or non-recurring events and other extraordinary items, impact of charges for restructurings, discontinued operations, and the cumulative effects of accounting or tax changes, each as defined by generally accepted accounting principles or as identified in the Company's financial statements, notes to the financial statements, management's discussion and analysis, or other Company public filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Any such adjustment determined by the Committee pursuant to this <u>Section 4.3</u>(b) shall be final, binding, and conclusive on the Company and all Participants and their respective heirs, executors, administrators, successors, and permitted assigns. Any adjustment to, or assumption or substitution of, an Award under this <u>Section 4.3</u>(b) shall be intended to comply with the requirements of Section 409A of the Code and Treasury Regulation §1.424-1 (and any amendments thereto), to the extent applicable. Except as expressly provided in this <u>Section 4.3</u> or in the applicable Award Agreement, a Participant shall have no additional rights under this Plan by reason of any transaction or event described in this <u>Section 4.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 **<u>Annual Limit on Non-Em</u>ploy<u>ee Director Compensation</u>**. In each calendar year during any part of which this Plan is in effect, a Non-Employee Director may not receive Awards for such individual's service on the Board that, taken together with any cash fees paid to such Non-Employee Director during such calendar year for such individual's service on the Board, have a value in excess of $1,000,000 (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes); <u>provided</u> that, (a) the Committee may make exceptions to this limit, except that the Non-Employee Director receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous decisions involving compensation for Non-Employee Directors and (b) for the calendar year in which the pricing date of the Company's initial public offering occurs or for any calendar year in which a Non-Employee Director (i) first commences service on the Board, (ii) serves on a special committee of the Board, or (iii) serves as lead director or non-executive chair of the Board, additional compensation may be provided to such Non-Employee Director in excess of such limit.

**Article V.**<br> **ELIGIBILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 **<u>General Eli</u>g<u>ibilit</u>y**. All current and prospective Eligible Individuals are eligible to be granted Awards. Eligibility for the grant of Awards and actual participation in this Plan shall be determined by the Committee in its sole discretion. No Eligible Individual will automatically be granted any Award under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 **<u>Incentive Stock Options</u>**. Notwithstanding the foregoing, only Eligible Employees who are employees of the Company or its Subsidiaries are eligible to be granted Incentive Stock Options under this Plan. Eligibility for the grant of an Incentive Stock Option and actual participation in this Plan shall be determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 **<u>General Requirement</u>**. The vesting and exercise of Awards granted to a prospective Eligible Individual are conditioned upon such individual actually becoming an Eligible Employee, Consultant, or Non-Employee Director, as applicable.

**Article VI.**<br> **STOCK OPTIONS; STOCK APPRECIATION RIGHTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **<u>General</u>**. Stock Options or Stock Appreciation Rights may be granted alone or in addition to other Awards granted under this Plan. Each Stock Option granted under this Plan shall be of one of two types: (a) an Incentive Stock Option or (b) a Non-Qualified Stock Option. Stock Options and Stock Appreciation Rights granted under this Plan shall be evidenced by an Award Agreement and subject to the terms, conditions and limitations in this Plan, including any limitations applicable to Incentive Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **<u>Grants</u>**. The Committee shall have the authority to grant to any Eligible Individual one or more Incentive Stock Options, Non-Qualified Stock Options, and/or Stock Appreciation Rights; <u>provided</u>, <u>however</u>, that Incentive Stock Options may only be granted to an Eligible Employee who is an employee of the Company or its Subsidiaries. To the extent that any Stock Option does not qualify as an Incentive Stock Option (whether because of its provisions or the time or manner of its exercise or otherwise), such Stock Option or the portion thereof which does not so qualify shall constitute a separate Non-Qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **<u>Exercise Price</u>**. The exercise price per Share subject to a Stock Option or Stock Appreciation Right shall be determined by the Committee at the time of grant; <u>provided</u> that, the per share exercise price of a Stock Option or Stock Appreciation Right shall not be less than 100% (or, in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, 110%) of the Fair Market Value at the time of grant. Notwithstanding the foregoing, in the case of a Stock Option or Stock Appreciation Right that is a Substitute Award, the exercise price per Share for such Stock Option or Stock Appreciation Right may be less than the Fair Market Value on the date of grant; <u>provided</u> that, such exercise price is determined in a manner consistent with the provisions of Section 409A of the Code and, if applicable, Section 424(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **<u>Term</u>**. The term of each Stock Option or Stock Appreciation Right shall be fixed by the Committee; <u>provided</u> that, no Stock Option or Stock Appreciation Right shall be exercisable more than ten years (or, in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, five years) after the date on which the Stock Option or Stock Appreciation Right, as applicable, is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 **<u>Exercisabilit</u>y**. Unless otherwise provided by the Committee in accordance with the provisions of this <u>Section 6.5</u>, Stock Options and Stock Appreciation Rights granted under this Plan shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee at the time of grant. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of a specified event. Unless otherwise determined by the Committee, if the exercise of a Non-Qualified Stock Option or Stock Appreciation Right within the permitted time periods is prohibited because such exercise would violate the registration requirements under the Securities Act or any other Applicable Law or the rules of any securities exchange or interdealer quotation system, the Company's insider trading policy (including any blackout periods) or a "lock-up" agreement entered into in connection with the issuance of securities by the Company, then the expiration of such Non-Qualified Stock Option or Stock Appreciation Right shall be extended until the date that is 30 days after the end of the period during which the exercise of the Non-Qualified Stock Option or Stock Appreciation Right would be in violation of such registration requirement or other Applicable Law or rules, blackout period or lock-up agreement, as determined by the Committee; <u>provided</u>, <u>however</u>, that in no event shall any such extension result in any Non-Qualified Stock Option or Stock Appreciation Right remaining exercisable after the ten-year term of the applicable Non-Qualified Stock Option or Stock Appreciation Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 **<u>Method of Exercise</u>**. Subject to any applicable waiting period or exercisability provisions under <u>Section 6.5</u>, to the extent vested, Stock Options and Stock Appreciation Rights may be exercised in whole or in part at any time during the term of the applicable Stock Option or Stock Appreciation Right, by giving written notice of exercise (which may be electronic) to the Company specifying the number of Stock Options or Stock Appreciation Rights, as applicable, being exercised. Such notice shall be accompanied by payment in full of the exercise price (which shall equal the product of such number of Shares to be purchased multiplied by the applicable exercise price). The exercise price for the Stock Options may be paid upon such terms and conditions as shall be established by the Committee and set forth in the applicable Award Agreement. Without limiting the foregoing, the Committee may establish payment terms for the exercise of Stock Options pursuant to which the Company may withhold a number of Shares that otherwise would be issued to the Participant in connection with the exercise of the Stock Option having a Fair Market Value on the date of exercise equal to the exercise price, or that permit the Participant to deliver cash or Shares with a Fair Market Value equal to the exercise price on the date of payment, or through a simultaneous sale through a broker of Shares acquired on exercise, all as permitted by Applicable Law. No Shares shall be issued until payment therefor, as provided herein, has been made or provided for. Upon the exercise of a Stock Appreciation Right a Participant shall be entitled to receive, for each right exercised, up to, but no more than, an amount in cash and/or Shares (as chosen by the Committee in its sole discretion) equal in value to the excess of the Fair Market Value of one Share on the date that the right is exercised over the Fair Market Value of one Share on the date that the right was awarded to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 **<u>Non-Transferabilit</u>y**. No Stock Option or Stock Appreciation Right shall be transferable by the Participant other than by will or by the laws of descent and distribution, and all Stock Options and Stock Appreciation Rights shall be exercisable, during the Participant's lifetime, only by the Participant. Notwithstanding the foregoing, the Committee may determine, in its sole discretion, at the time of grant or thereafter that a Non-Qualified Stock Option that is otherwise not transferable pursuant to this <u>Section 6.7</u> is transferable to a Family Member of the Participant in whole or in part and in such circumstances, and under such conditions, as specified by the Committee. A Non-Qualified Stock Option that is transferred to a Family Member pursuant to the preceding sentence (a) may not be subsequently transferred other than by will or by the laws of descent and distribution and (b) remains subject to the terms of this Plan and the applicable Award Agreement. Any Shares acquired upon the exercise of a Non-Qualified Stock Option by a permissible transferee of a Non-Qualified Stock Option or a permissible transferee pursuant to a transfer after the exercise of the Non-Qualified Stock Option shall be subject to the terms of this Plan and the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 **<u>Termination</u>**. Unless otherwise determined by the Committee at grant or, if no rights of the Participant are reduced, thereafter, subject to the provisions of the applicable Award Agreement and this Plan, upon a Participant's Termination of Service for any reason, Stock Appreciation Rights may remain exercisable following a Participant's Termination of Service as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination b</u>y <u>Death or Disabilit</u>y. Unless otherwise provided in the applicable Award Agreement, or otherwise determined by the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, if a Participant's Termination of Service is by reason of death or Disability, all Stock Options and Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the time of the Participant's Termination of Service may be exercised by the Participant (or in the case of the Participant's death, by the legal representative of the Participant's estate) at any time within a period of one year from the date of such Termination of Service, but in no event beyond the expiration of the stated term of such Stock Options and Stock Appreciation Rights; <u>provided</u>, <u>however</u>, that, in the event of a Participant's Termination of Service by reason of Disability, if the Participant dies within such exercise period, all unexercised Stock Options and Stock Appreciation Rights held by such Participant shall thereafter be exercisable, to the extent to which they were exercisable at the time of death, for a period of one year from the date of such death, but in no event beyond the expiration of the stated term of such Stock Options and/or 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;(b) <u>Involuntar</u>y <u>Termination Without Cause</u>. Unless otherwise provided in the applicable Award Agreement or otherwise determined by the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, if a Participant's Termination of Service is by involuntary termination by the Company without Cause, all Stock Options and Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the time of the Participant's Termination of Service may be exercised by the Participant at any time within a period of 90 days from the date of such Termination of Service, but in no event beyond the expiration of the stated term of such Stock Options or 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;(c) <u>Voluntar</u>y <u>Resi</u>g<u>nation</u>. Unless otherwise provided in the applicable Award Agreement or otherwise determined by the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, if a Participant's Termination of Service is voluntary (other than a voluntary termination described in Section 6.8(d) hereof), all Stock Options and Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the time of the Participant's Termination of Service may be exercised by the Participant at any time within a period of 30 days from the date of such Termination of Service, but in no event beyond the expiration of the stated term of such Stock Options or 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;(d) <u>Termination for Cause</u>. Unless otherwise provided in the applicable Award Agreement or determined by the Committee at the time of grant, or if no rights of the Participant are reduced, thereafter, if a Participant's Termination of Service (i) is for Cause or (ii) is a voluntary Termination of Service (as provided in <u>Section 6.8</u>(c)) after the occurrence of an event that would be grounds for a Termination of Service for Cause, all Stock Options and Stock Appreciation Rights, whether vested or not vested, that are held by such Participant shall thereupon immediately terminate and expire as of the date of such Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Unvested Stock Options and Stock A</u>p<u>preciation Ri</u>g<u>hts.</u> Unless otherwise provided in the applicable Award Agreement or determined by the Committee at the time of grant or, if no rights of the Participant are reduced, thereafter, Stock Options and Stock Appreciation Rights that are not vested as of the date of a Participant's Termination of Service for any reason shall terminate and expire as of the date of such Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Incentive Stock Option Limitations</u>. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar year under this Plan and/or any other stock option plan of the Company or any Subsidiary exceeds $100,000, such Options shall be treated as Non-Qualified Stock Options. In addition, if an Eligible Employee does not remain employed by the Company or any Subsidiary at all times from the time an Incentive Stock Option is granted until three months prior to the date of exercise thereof (or such other period as required by Applicable Law), such Stock Option shall be treated as a Non-Qualified Stock Option. Should any provision of this Plan not be necessary in order for the Stock Options to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may amend this Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Modification</u>, <u>Extension and Renewal of Stock Options</u>. The Committee may (i) modify, extend, or renew outstanding Stock Options granted under this Plan (<u>provided</u> that, the rights of a Participant are not reduced without such Participant's consent and <u>provided</u>, <u>further</u>, that such action does not subject the Stock Options to Section 409A of the Code without the consent of the Participant), and (ii) accept the surrender of outstanding Stock Options (to the extent not theretofore exercised) and authorize the granting of new Stock Options in substitution therefor (to the extent not theretofore exercised). Notwithstanding the foregoing, an outstanding Option may not be modified to reduce the exercise price thereof nor may a new Option at a lower price be substituted for a surrendered Option (other than adjustments or substitutions in accordance with <u>Article IV</u>), unless such action is approved by the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 **<u>Automatic Exercise</u>**. The Committee may include a provision in an Award Agreement providing for the automatic exercise of a Non-Qualified Stock Option or Stock Appreciation Right on a cashless basis on the last day of the term of such Option or Stock Appreciation Right if the Participant has failed to exercise the Non-Qualified Stock Option or Stock Appreciation Right as of such date, with respect to which the Fair Market Value of the Shares underlying the Non-Qualified Stock Option or Stock Appreciation Right exceeds the exercise price of such Non-Qualified Stock Option or Stock Appreciation Right on the date of expiration of such Option or Stock Appreciation Right, subject to <u>Section 13.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 **<u>Other Terms and Conditions</u>**. As the Committee shall deem appropriate, Stock Options and Stock Appreciation Rights may be subject to additional terms and conditions or other provisions, which shall not be inconsistent with any of the terms of this Plan.

**Article VII.**<br> **RESTRICTED STOCK; RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **<u>Awards of Restricted Stock and Restricted Stock Units</u>**. Shares of Restricted Stock and Restricted Stock Units may be granted alone or in addition to other Awards granted under this Plan. The Committee shall determine the Eligible Individuals to whom, and the time or times at which, grants of Restricted Stock and/or Restricted Stock Units shall be made, the number of shares of Restricted Stock or Restricted Stock Units to be awarded, the price (if any) to be paid by the Participant (subject to <u>Section 7.2</u>), the time or times within which such Awards may be subject to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions of the Awards. The Committee shall determine and set forth in the Award Agreement the terms and conditions for each Award of Restricted Stock and Restricted Stock Units, subject to the conditions and limitations contained in this Plan, including any vesting or forfeiture conditions.

The Committee may condition the grant or vesting of Restricted Stock and Restricted Stock Units upon the attainment of specified Performance Goals or such other factor as the Committee may determine in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **<u>Awards and Certificates</u>**. Restricted Stock and Restricted Stock Units granted under this Plan shall be evidenced by an Award Agreement and subject to the following terms and conditions and shall be in such form and contain such additional terms and conditions not inconsistent with the terms of this Plan, as the Committee shall deem desirable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Purchase Price</u>. The purchase price of Restricted Stock shall be fixed by the Committee. The purchase price for shares of Restricted Stock may be zero to the extent permitted by Applicable Law, and, to the extent not so permitted, such purchase price may not be less than par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Le</u>g<u>end</u>. Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such shares of Restricted Stock, unless the Committee elects to use another system, such as book entries by the Company's transfer agent, as evidencing ownership of shares of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall, in addition to such legends required by Applicable Law, bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Custod</u>y. If stock certificates are issued in respect of shares of Restricted Stock, the Committee may require that any stock certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition of any grant of Restricted Stock, the Participant shall have delivered a duly signed stock power or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by the Company, which would permit transfer to the Company of all or a portion of the shares subject to the Award of Restricted Stock in the event that such Award is forfeited in whole or part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Rig<u>hts as a Stockholder</u>. Except as provided in <u>Section 7.3</u>(a) and this <u>Section 7.2</u>(a) or as otherwise determined by the Committee in an Award Agreement, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a holder of Shares, including, without limitation, the right to receive dividends, the right to vote such shares, and, subject to and conditioned upon the full vesting of shares of Restricted Stock, the right to tender such shares; <u>provided</u> that, the Award Agreement shall specify on what terms and conditions the applicable Participant shall be entitled to dividends payable on 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;(v) <u>Lapse of Restrictions</u>. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock, the certificates for such Shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery to the Participant, except as otherwise required by Applicable Law or other limitations imposed 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;(b) <u>Restricted Stock Units</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;(i) <u>Settlement</u>. The Committee may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably practical after the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant's election, in a manner intended to comply with 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;(ii) Rig<u>hts as a Stockholder</u>. A Participant will have no rights of a stockholder with respect to Shares subject to any Restricted Stock Unit unless and until Shares are delivered in settlement of the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Dividend Equivalent Ri</u>g<u>hts</u>. If the Committee so provides, a grant of Restricted Stock Units may provide a Participant with the right to receive Dividend Equivalent Rights. Dividend Equivalent Rights may be paid currently or credited to an account for the Participant, settled in cash or Shares, and subject to the same restrictions on transferability and forfeitability as the Restricted Stock Units with respect to which the Dividend Equivalent Rights are granted and subject to other terms and conditions as set forth in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Restrictions and Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restriction Period</u>. The Participant shall not be permitted to transfer shares of Restricted Stock awarded under this Plan or vest in Restricted Stock Units during the period or periods set by the Committee (the "**<u>Restriction Period</u>**") commencing on the date of such Award, as set forth in the applicable Award Agreement and such agreement shall set forth a vesting schedule and any event that would accelerate vesting of the Restricted Stock and/or Restricted Stock Units. Within these limits, based on service, attainment of Performance Goals pursuant to <u>Section 7.3</u>(a), and/or such other factors or criteria as the Committee may determine in its sole discretion, the Committee may condition the grant or provide for the lapse of such restrictions in installments in whole or in part, or may accelerate the vesting of all or any part of any Award of Restricted Stock or Restricted Stock Units and/or waive the deferral limitations for all or any part of any Award of Restricted Stock or 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;(b) <u>Termination</u>. Unless otherwise provided in the applicable Award Agreement or determined by the Committee at grant or, if no rights of the Participant are reduced, thereafter, upon a Participant's Termination of Service for any reason during the relevant Restriction Period, all Restricted Stock or Restricted Stock Units still subject to restriction will be forfeited in accordance with the terms and conditions established by the Committee at grant or thereafter.

**Article VIII.**<br> **PERFORMANCE AWARDS**

The Committee may grant a Performance Award to a Participant payable upon the attainment of specific Performance Goals either alone or in addition to other Awards granted under this Plan. The Performance Goals to be achieved during the Performance Period and the length of the Performance Period shall be determined by the Committee upon the grant of each Performance Award. The conditions for grant or vesting and the other provisions of Performance Awards (including, without limitation, any applicable Performance Goals) need not be the same with respect to each Participant. Performance Awards may be paid in cash, Shares, other property, or any combination thereof, in the sole discretion of the Committee as set forth in the applicable Award Agreement.

**Article IX.**<br> **OTHER STOCK-BASED AND CASH AWARDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 **<u>Other Stock-Based Awards</u>**. The Committee is authorized to grant to Eligible Individuals Other Stock-Based Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to Shares, including but not limited to, Shares awarded purely as a bonus and not subject to restrictions or conditions, Shares in payment of the amounts due under an incentive or performance plan sponsored or maintained by the Company, stock equivalent units, and Awards valued by reference to the book value of Shares. Other Stock-Based Awards may be granted either alone or in addition to or in tandem with other Awards granted under this Plan.

Subject to the provisions of this Plan, the Committee shall have authority to determine the Eligible Individuals, to whom, and the time or times at which, such Other Stock-Based Awards shall be made, the number of Shares to be awarded pursuant to such Awards, and all other conditions of the Awards. The Committee may also provide for the grant of Shares under such Awards upon the completion of a specified Performance Period. The Committee may condition the grant or vesting of Other Stock-Based Awards upon the attainment of specified Performance Goals as the Committee may determine, in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 **<u>Terms and Conditions</u>**. Other Stock-Based Awards made pursuant to this <u>Article IX</u> shall be evidenced by an Award Agreement and subject to the following terms and conditions and shall be in such form and contain such additional terms and conditions not inconsistent with the terms of this Plan, as the Committee shall deem desirable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Transferabilit</u>y. Subject to the applicable provisions of the Award Agreement and this Plan, Shares subject to Other Stock-Based Awards may not be transferred prior to the date on which the Shares are issued or, if later, the date on which any applicable restriction, performance, or deferral period lapses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividends</u>. Unless otherwise determined by the Committee at the time of the grant of an Other Stock-Based Award, subject to the provisions of the Award Agreement and this Plan, the recipient of an Other Stock-Based Award shall not be entitled to receive, currently or on a deferred basis, dividends or Dividend Equivalent Rights in respect of the number of Shares covered by the Other Stock-Based 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;(c) <u>Vestin</u>g. Any Other Stock-Based Award and any Shares covered by any such Other Stock- Based Award shall vest or be forfeited to the extent so provided in the Award Agreement, as determined by the Committee, in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Price</u>. Shares under this <u>Article IX</u> may be issued for no cash consideration. Shares purchased pursuant to a purchase right awarded pursuant to an Other Stock-Based Award shall be priced, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 **<u>Cash Awards</u>**. The Committee may from time to time grant Cash Awards to Eligible Individuals in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by Applicable Law, as it shall determine in its sole discretion. Cash Awards may be granted subject to the satisfaction of vesting conditions or may be awarded purely as a bonus and not subject to restrictions or conditions, and if subject to vesting conditions, the Committee may accelerate the vesting of such Awards at any time in its sole discretion. The grant of a Cash Award shall not require a segregation of any of the Company's assets for satisfaction of the Company's payment obligation thereunder.

**Article X.**<br> **CHANGE IN CONTROL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 **<u>Benefits</u>**. In the event of a Change in Control of the Company, and except as otherwise provided by the Committee in an Award Agreement or any applicable employment agreement, offer letter, consulting agreement, change in control agreement, or similar agreement in effect between the Company or an Affiliate and the Participant, a Participant's unvested Awards shall not vest automatically and a Participant's Awards shall be treated in accordance with one or more of the following methods as 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;(a) Awards, whether or not then vested, shall be continued, be assumed, or have new rights substituted therefor, as determined by the Committee in a manner consistent with the requirements of Section 409A of the Code, and restrictions to which shares of Restricted Stock or any other Award granted prior to the Change in Control are subject shall not lapse upon a Change in Control and the Restricted Stock or other Award shall, where appropriate in the sole discretion of the Committee, receive the same distribution as other Shares on such terms as determined by the Committee; <u>provided</u> that, the Committee may decide to award additional Restricted Stock or other Awards in lieu of any cash distribution. Notwithstanding anything to the contrary herein, for purposes of Incentive Stock Options, any assumed or substituted Stock Option shall comply with the requirements of Treasury Regulation Section 1.424-1 (and any amendment 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;(b) The Committee, in its sole discretion, may provide for the purchase of any Awards by the Company for an amount of cash equal to the excess (if any) of the Change in Control Price of the Shares covered by such Awards, over the aggregate exercise price of such Awards; <u>provided</u>, <u>however</u>, that if the exercise price of an Option or Stock Appreciation Right exceeds the Change in Control Price, such Award may be cancelled for no 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;(c) The Committee may, in its sole discretion, terminate all outstanding and unexercised Stock Options, Stock Appreciation Rights, or any Other Stock-Based Award that provides for a Participant-elected exercise, effective as of the date of the Change in Control, by delivering notice of termination to each Participant at least 20 days prior to the date of consummation of the Change in Control, in which case during the period from the date on which such notice of termination is delivered to the consummation of the Change in Control, each such Participant shall have the right to exercise in full all of such Participant's Awards that are then outstanding (without regard to any limitations on exercisability otherwise contained in the Award Agreements), but any such exercise shall be contingent on the occurrence of the Change in Control; <u>provided</u> that, if the Change in Control does not take place within a specified period after giving such notice for any reason whatsoever, the notice and exercise pursuant thereto shall be null and void.

&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) Notwithstanding any other provision herein to the contrary, the Committee may, in its sole discretion, provide for accelerated vesting or lapse of restrictions, of an Award at any time.

**Article XI.**<br> **TERMINATION OR AMENDMENT OF PLAN**

Notwithstanding any other provision of this Plan, the Board or the Committee may at any time, and from time to time, amend, in whole or in part, any or all of the provisions of this Plan (including any amendment deemed necessary to ensure that the Company may comply with any Applicable Law), or suspend or terminate it entirely, retroactively or otherwise; <u>provided</u>, <u>however</u>, that, unless otherwise required by Applicable Law or specifically provided herein, the rights of a Participant with respect to Awards granted prior to such amendment, suspension, or termination may not be materially impaired without the consent of such Participant and, <u>provided</u>, <u>further</u>, that without the approval of the holders of the Shares entitled to vote in accordance with Applicable Law, no amendment may be made that would: (a) increase the aggregate number of Shares that may be issued under this Plan (except by operation of <u>Section 4.1</u>); (b) change the classification of individuals eligible to receive Awards under this Plan; (c) reduce the exercise price of any Stock Option or Stock Appreciation Right; (d) grant any new Stock Option, Stock Appreciation Right, or other award in substitution for, or upon the cancellation of, any previously granted Stock Option or Stock Appreciation Right that has the effect of reducing the exercise price thereof; (e) exchange any Stock Option or Stock Appreciation Right for Common Stock, cash, or other consideration when the exercise price per Share under such Stock Option or Stock Appreciation Right exceeds the Fair Market Value of a Share; or (f) take any action that would be considered a "repricing" of a Stock Option or Stock Appreciation Right under the applicable listing standards of the national exchange on which the Common Stock is listed (if any). Notwithstanding anything herein to the contrary, the Board or the Committee may amend this Plan or any Award Agreement at any time without a Participant's consent to comply with Applicable Law, including Section 409A of the Code. The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, but, subject to <u>Article IV</u> or as otherwise specifically provided herein, no such amendment or other action by the Committee shall materially impair the rights of any Participant without the Participant's consent.

**Article XII.**<br> **UNFUNDED STATUS OF PLAN**

This Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payment as to which a Participant has a fixed and vested interest but which is not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any right that is greater than those of a general unsecured creditor of the Company.

**Article XIII.**<br> **GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 **<u>Lock-Up; Legend</u>**. The Committee may require each person receiving Shares pursuant to a Stock Option or other Award under this Plan to represent to and agree with the Company in writing that the Participant is acquiring the Shares without a view to distribution thereof. The Company may, in connection with registering the offering of any Company securities under the Securities Act, prohibit Participants from, directly or indirectly, selling or otherwise transferring any Shares or other Company securities during any period determined by the underwriter or the Company. In addition to any legend required by this Plan, the certificates for such Shares may include any legend that the Committee deems appropriate to reflect any restrictions on transfer. All certificates for Shares delivered under this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed or any national securities exchange system upon whose system the Common Stock is then quoted, and any Applicable Law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. If the Shares are held in book-entry form, then the book-entry will indicate any restrictions on such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 **<u>Other Plans</u>**. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required, 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;13.3 **<u>No Right to Employment/Directorship/Consultancy</u>**. Neither this Plan nor the grant of any Award hereunder shall give any Participant or other employee, Consultant or Non-Employee Director any right with respect to continuance of employment, consultancy or directorship by the Company or any Affiliate, nor shall there be a limitation in any way on the right of the Company or any Affiliate by which an employee is employed or a Consultant or Non-Employee Director is retained to terminate such employment, consultancy, or directorship at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 **<u>Withholdin</u>g <u>of Taxes</u>**. A Participant shall be required to pay to the Company or one of its Affiliates, as applicable, or make arrangements satisfactory to the Company regarding the payment of, any income tax, social insurance contribution or other applicable taxes that are required to be withheld in respect of an Award. The Committee may (but is not obligated to), in its sole discretion, permit or require a Participant to satisfy all or any portion of the applicable taxes that are required to be withheld with respect to an Award by: (a) the delivery of Shares (which are not subject to any pledge or other security interest) that have been both held by the Participant and vested for at least six months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment under applicable accounting standards) having an aggregate Fair Market Value equal to such withholding liability (or portion thereof); (b) having the Company withhold from the Shares otherwise issuable or deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting, or settlement of the Award, as applicable, a number of Shares with an aggregate Fair Market Value equal to the amount of such withholding liability; or (c) by any other means specified in the applicable Award Agreement or otherwise determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 **<u>Fractional Shares</u>**. No fractional Shares shall be issued or delivered pursuant to this Plan. The Committee shall determine whether cash, additional Awards, or other securities or property shall be used or paid in lieu of fractional Shares or whether any fractional shares should be rounded, forfeited, or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 **<u>No Assi</u>g<u>nment of Benefits</u>**. No Award or other benefit payable under this Plan shall, except as otherwise specifically provided in this Plan or under Applicable Law or permitted by the Committee, be transferable in any manner, and any attempt to transfer any such benefit shall be void, and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts of any person who shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 **<u>Clawbacks; Detrimental Conduct</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Clawbacks</u>. All awards, amounts, or benefits received or outstanding under this Plan will be subject to clawback, cancellation, recoupment, rescission, payback, reduction, or other similar action in accordance with any Company clawback or similar policy or any Applicable Law related to such actions. A Participant's acceptance of an Award will constitute the Participant's acknowledgement of and consent to the Company's application, implementation, and enforcement of any applicable Company clawback or similar policy that may apply to the Participant, whether adopted before or after the Effective Date, and any Applicable Law relating to clawback, cancellation, recoupment, rescission, payback, or reduction of compensation, and the Participant's agreement that the Company may take any actions that may be necessary to effectuate any such policy or Applicable Law, without further consideration or 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;(b) <u>Detrimental Conduct</u>. Except as otherwise determined by the Committee, notwithstanding any other term or condition of this Plan, if a Participant engages in Detrimental Conduct, whether during or after the Participant's service, in addition to any other penalties or restrictions that may apply under this Plan, Applicable Law or otherwise, the Participant must forfeit or pay to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all outstanding Awards granted to the Participant, including Awards that have become vested or 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;(ii) any cash or Shares received by the Participant in connection with this Plan within the 36-month period immediately before the date the Company determines the Participant has engaged in Detrimental Conduct; 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;(iii) the profit realized by the Participant from the sale, or other disposition for consideration, of any Shares received by the Participant under this Plan within the 36-month period immediately before the date the Company determines the Participant has engaged in Detrimental Conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 **<u>Listing and Other Conditions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise determined by the Committee, as long as the Common Stock is listed on a national securities exchange or system sponsored by a national securities association, the issuance of Shares pursuant to an Award shall be conditioned upon such Shares being listed on such exchange or system. The Company shall have no obligation to issue such Shares unless and until such Shares are so listed, and the right to exercise any Option or other Award with respect to such Shares shall be suspended until such listing has been effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time counsel to the Company advises the Company that any sale or delivery of Shares pursuant to an Award is or may in the circumstances be unlawful or result in the imposition of excise taxes on the Company under Applicable Law, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act or otherwise, with respect to Shares or Awards, and the right to exercise any Option or other Award shall be suspended until, based on the advice of said counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon termination of any period of suspension under this <u>Section 13.8</u>, any Award affected by such suspension which shall not then have expired or terminated shall be reinstated as to all Shares available before such suspension and as to Shares which would otherwise have become available during the period of such suspension, but no such suspension shall extend the term of 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;(d) A Participant shall be required to supply the Company with certificates, representations, and information that the Company requests and otherwise cooperate with the Company in obtaining any listing, registration, qualification, exemption, consent, or approval that the Company deems necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 **<u>Governin</u>g <u>Law</u>**. This Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 **<u>Construction</u>**. Wherever any words are used in this Plan in the masculine gender they shall be construed as though they were also used in the feminine gender in all cases where they would so apply, and wherever words are used herein in the singular form they shall be construed as though they were also used in the plural form in all cases where they would so apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 **<u>Other Benefits</u>**. No Award granted or paid out under this Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Company or its Affiliates or affect any benefit or compensation under any other plan now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12 **<u>Costs</u>**. The Company shall bear all expenses associated with administering this Plan, including expenses of issuing Shares pursuant to Awards hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13 **<u>No Ri</u>g<u>ht to Same Benefits</u>**. The provisions of Awards need not be the same with respect to each Participant, and such Awards to individual Participants need not be the same in subsequent years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.14 **<u>Death/Disabilit</u>y**. The Committee may in its discretion require the transferee of a Participant to supply it with written notice of the Participant's death or Disability and to supply it with a copy of the will (in the case of the Participant's death) or such other evidence as the Committee deems necessary to establish the validity of the transfer of an Award. The Committee may also require the agreement of the transferee to be bound by all of the terms and conditions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.15 **<u>Section 16(b) of the Exchan</u>g<u>e Act</u>**. It is the intent of the Company that this Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of this Plan would conflict with the intent expressed in this <u>Section 13.15</u>, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.16 **<u>Deferral of Awards</u>**. The Committee may establish one or more programs under this Plan to permit selected Participants the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant to payment or receipt of Shares or other consideration under an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules, and procedures that the Committee deems advisable for the administration of any such deferral program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.17 **<u>Section 409A of the Code</u>**. This Plan and Awards are intended to comply with or be exempt from the applicable requirements of Section 409A of the Code and shall be limited, construed, and interpreted in accordance with such intent. To the extent that any Award is subject to Section 409A of the Code, it shall be paid in a manner that will comply with Section 409A of the Code. Notwithstanding anything herein to the contrary, any provision in this Plan that is inconsistent with Section 409A of the Code shall be deemed to be amended to comply with or be exempt from Section 409A of the Code and, to the extent such provision cannot be amended to comply therewith or be exempt therefrom, such provision shall be null and void. The Company shall have no liability to a Participant, or any other party, if an Award that is intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant or for any action taken by the Committee or the Company and, in the event that any amount or benefit under this Plan becomes subject to penalties under Section 409A of the Code, responsibility for payment of such penalties shall rest solely with the affected Participants and not with the Company. Notwithstanding any contrary provision in this Plan or Award Agreement, any payment(s) of "nonqualified deferred compensation" (within the meaning of Section 409A of the Code) that are otherwise required to be made under this Plan to a "specified employee" (as defined under Section 409A of the Code) as a result of such employee's separation from service (other than a payment that is not subject to Section 409A of the Code) shall be delayed for the first six months following such separation from service (or, if earlier, until the date of death of the specified employee) and shall instead be paid (in a manner set forth in the Award Agreement) upon expiration of such delay period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.18 **<u>Data Privac</u>y**. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection, use, and transfer, in electronic or other form, of personal data as described in this <u>Section 13.18</u> by and among, as applicable, the Company and its Affiliates, for the exclusive purpose of implementing, administering, and managing this Plan and Awards and the Participant's participation in this Plan. In furtherance of such implementation, administration, and management, the Company and its Affiliates may hold certain personal information about a Participant, including, but not limited to, the Participant's name, home address, telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title(s), information regarding any securities of the Company or any of its Affiliates, and details of all Awards (the "**<u>Data</u>**"). In addition to transferring the Data amongst themselves as necessary for the purpose of implementation, administration, and management of this Plan and Awards and the Participant's participation in this Plan, the Company and its Affiliates may each transfer the Data to any third parties assisting the Company in the implementation, administration, and management of this Plan and Awards and the Participant's participation in this Plan. Recipients of the Data may be located in the Participant's country or elsewhere, and the Participant's country and any given recipient's country may have different data privacy laws and protections. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain, and transfer the Data, in electronic or other form, for the purposes of assisting the Company in the implementation, administration, and management of this Plan and Awards and the Participant's participation in this Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Company or the Participant may elect to deposit any shares of Common Stock. The Data related to a Participant will be held only as long as is necessary to implement, administer, and manage this Plan and Awards and the Participant's participation in this Plan. A Participant may, at any time, view the Data held by the Company with respect to such Participant, request additional information about the storage and processing of the Data with respect to such Participant, recommend any necessary corrections to the Data with respect to the Participant, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting his or her local human resources representative. The Company may cancel the Participant's eligibility to participate in this Plan, and in the Committee's discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws the consents described herein. For more information on the consequences of refusal to consent or withdrawal of consent, Participants may contact their local human resources representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.19 **<u>Successor and Assi</u>gns**. This Plan shall be binding on all successors and permitted assigns of a Participant, including, without limitation, the estate of such Participant and the executor, administrator, or trustee of such estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.20 **<u>Severabilit</u>y <u>of Provisions</u>**. If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.21 **<u>Headin</u>g<u>s and Captions</u>**. The headings and captions herein are provided for reference and convenience only, shall not be considered part of this Plan, and shall not be employed in the construction of this Plan.

**Article XIV.**<br> **EFFECTIVE DATE OF PLAN**

The Plan's effective date (the "**<u>Effective Date</u>**") is the date following entry of the United States Bankruptcy Court for the Southern District of New York (the "**<u>Bankru</u>ptcy <u>Court</u>**") with respect to the Company's voluntary Chapter 11 case filed on July 13, 2022, on which the plan of reorganization of the Company becomes effective in accordance with its terms, with such approval of such Bankruptcy Court being in lieu of initial approval by stockholders of the Company.

**Article XV.**<br> **TERM OF PLAN**

No Award shall be granted pursuant to this Plan on or after the tenth anniversary of the earlier of the date that this Plan is adopted or the date of stockholder approval, but Awards granted prior to such tenth anniversary may extend beyond that date.

\* \* \* \*

**IONIC DIGITAL INC.<br> OMNIBUS INCENTIVE PLAN**

**RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

Ionic Digital Inc., a Delaware corporation (the "***Company***"), pursuant to its Omnibus Incentive Plan, as amended from time to time (the "***Plan***"), hereby grants to the holder listed below (the "***Participant***"), an award of restricted stock units ("***Restricted Stock Units***" or "***RSUs***"). Each vested Restricted Stock Unit represents the right to receive, in accordance with the Restricted Stock Unit Award Agreement attached hereto as **Exhibit A** (the "***Agreement***"), one Common Share ("***Share***"). This award of Restricted Stock Units is subject to all of the terms and conditions set forth herein and in the Agreement and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") and the Agreement.

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| | |
|:---|:---|
| **Participant:** | Andy Stewart |
| **Grant Date:** | November 17, 2025 |
| **Total Number of RSUs:** | 186875 |
| **Vesting Schedule:** | The RSUs will vest over a five (5) year period in equal annual installments, with one-fifth (1/5<sup>th</sup>) of the RSUs vesting on each of the first five (5) anniversaries of the Grant Date, subject in each case to the Participant's continuous employment with the Company through each such vesting date. Notwithstanding the foregoing, in the event of a Change in Control that occurs within the first twelve (12) months of your employment with the Company, (i) if the Valuation of the Company is less than $2.5 billion in connection with such Change in Control, then all outstanding RSUs granted pursuant to this Agreement will vest immediately upon such a Change in Control; and (ii) if the Valuation of the Company is more than $2.5 billion in connection with such Change in Control, then one-half (1/2) of the RSUs granted pursuant to this Agreement will vest immediately upon such Change in Control, in each case, subject to Participant's continuous employment through the date of such Change in Control. For the avoidance of doubt, if the Participant experiences a termination without Cause within the three-month period prior to the consummation of a Change in Control, he shall be entitled to accelerated vesting as if he was employed through the date of such Change in Control. |

---

For the purposes of these Restricted Stock Units, "**Valuation**" means the fair market value of the Company, determined as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts. The Company Valuation shall be calculated based on the aggregate value of all outstanding equity interests in the Company, including all classes of stock and other securities convertible into or exchangeable for equity interests, and shall be reduced by (i) all outstanding indebtedness and other liabilities of the Company (whether current, long-term, contingent, or otherwise), (ii) all accrued but unpaid expenses, and (iii) any other amounts that, in accordance with generally accepted accounting principles (GAAP), should be deducted to determine the net value distributable to equity holders upon a sale, liquidation, or similar transaction. The determination of Valuation shall be made in good faith by the Board of Directors (or its designee), whose decision shall be final and binding.

---

| | |
|:---|:---|
| **Termination:** | If the Participant experiences a termination of employment for any or no reason, all RSUs that have not become vested on or prior to the date of such termination of service will thereupon be automatically forfeited by the Participant without payment of any consideration therefor. |

---

By his or her signature and the Company's signature below, the Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and this Grant Notice. The Participant has reviewed the Plan, the Agreement and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, the Agreement and this Grant Notice. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee (referred to herein and in the Agreement as the "***Administrator***") upon any questions arising under the Plan, the Agreement or this Grant Notice. In addition, by signing below, the Participant also agrees that the Company, in its sole discretion, may satisfy any withholding obligations in accordance with Section 2.6 of the Agreement and the Plan. **The Participant's acceptance of this Agreement constitutes his or her instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf shares of Common Stock from those Shares issuable to Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy Participant's tax withholding obligation.**

---

| | |
|:---|:---|
| **IONIC DIGITAL INC.:** | **PARTICIPANT:** |
| By: | By: |
| Print Name: | Print Name: |
| Title: |  |

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**Exhibit A**

**TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

**RESTRICTED STOCK UNIT AWARD AGREEMENT**

Pursuant to the Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") to which this Restricted Stock Unit Award Agreement (this "***Agreement***") is attached, Ionic Digital Inc., a Delaware corporation (the "***Company***"), has granted to the Participant the number of restricted stock units ("***Restricted Stock Units***" or "***RSUs***") set forth in the Grant Notice under the Company's Omnibus Incentive Plan, as amended from time to time (the "***Plan***"). Each Restricted Stock Unit represents the right to receive one Share upon vesting.

**Article I.**<br>**GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Incorporation of Terms of Plan</u>. The RSUs are subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

**Article II.**<br>**GRANT OF RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Grant of RSUs</u>. Pursuant to the Grant Notice and upon the terms and conditions set forth in the Plan and this Agreement, effective as of the Grant Date set forth in the Grant Notice, the Company hereby grants to the Participant an award of RSUs under the Plan in consideration of the Participant's past or continued service to the Company or any Subsidiaries and for other good and valuable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Unsecured Obligation to RSUs</u>. Unless and until the RSUs have vested in the manner set forth in Article 2 hereof, the Participant will have no right to receive Shares under any such RSUs. Prior to actual payment of any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Vesting Schedule</u>. Subject to Section 2.5 hereof, the RSUs shall vest and become nonforfeitable with respect to the applicable portion thereof according to the vesting schedule set forth in the Grant Notice (rounding down to the nearest whole Share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Consideration to the Company</u>. In consideration of the grant of the award of RSUs pursuant hereto, the Participant agrees to render faithful and efficient services to the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Forfeiture, Termination and Cancellation upon Termination of Service</u>. Notwithstanding any contrary provision of this Agreement or the Plan, upon the Participant's termination of service with the Company or its Subsidiaries for any or no reason, all Restricted Stock Units which have not vested prior to or in connection with such termination of service shall thereupon automatically be forfeited, terminated and cancelled as of the applicable termination date without payment of any consideration by the Company, and the Participant, or the Participant's beneficiary or personal representative, as the case may be, shall have no further rights hereunder with respect to such forfeited RSUs. No portion of the RSUs which has not become vested as of the date on which the Participant incurs a termination of service with the Company or its Subsidiaries shall thereafter become vested, except as may otherwise be provided by the Administrator or as set forth in a written agreement between the Company and the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Issuance of Shares upon Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as administratively practicable following the vesting of any Restricted Stock Units pursuant to Section 2.3 hereof, but in no event later than 30 days after such vesting date (for the avoidance of doubt, this deadline is intended to comply with the "short term deferral" exemption from Section 409A of the Code), the Company shall deliver to the Participant (or any transferee permitted under Section 3.2 hereof) a number of Shares equal to the number of RSUs subject to this Award that vest on the applicable vesting 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;(b) As set forth in Section 13.4 of the Plan, the Company shall have the authority and the right to deduct or withhold, or to require the Participant to remit to the Company, an amount sufficient to satisfy all applicable federal, state and local taxes required by law to be withheld with respect to any taxable event arising in connection with the Restricted Stock Units. Additionally, the Company may, in its sole discretion, satisfy any withholding obligations relating to Participant's RSUs by any of the following means or by a combination of such means: (i) withholding shares of Common Stock otherwise issuable to the Participant upon vesting of the RSUs, (ii) instructing a broker on the Participant's behalf to sell shares of Common Stock otherwise issuable to the Participant upon vesting of the RSUs sufficient to generate net proceeds sufficient to satisfy the Company's minimum statutory withholding obligations with respect to the income recognized by the Participant upon the vesting of the RSUs (based on minimum statutory withholding rates for all tax purposes, including payroll and social security taxes, that are applicable to such income) and the net proceeds of such sale shall be submitted to the Company, (iii) requiring Participant to make a payment in cash to the Company, or (iv) using any other method approved by the Company, and to the extent required by applicable laws or the Plan, approved by the Administrator. Until determined otherwise by the Company, clause (ii) will be the method by which such withholding obligations are satisfied, unless the Participant choses to satisfy his or her withholding obligation in accordance with clause (iii) at any time not less than five (5) business days before any withholding obligation arises. The Company shall not be obligated to deliver any Shares to the Participant or the Participant's legal representative unless and until the Participant or the Participant's legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the taxable income of the Participant resulting from the grant or vesting of the Restricted Stock Units or the issuance of 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;(c) Without prejudice to the provisions of Section 13.4 of the Plan, Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social security and other tax-related items related to Participant's participation in the Plan and the RSUs and legally applicable to Participant or deemed by the Company, the Board in its discretion to be an appropriate charge to Participant even if legally applicable to the Company, Board (to the extent lawful) (collectively, "***Tax-Related Items***") is and remains Participant's responsibility and may exceed the amount (if any) withheld by the Company, the Board, and Participant hereby covenants to pay any such Tax-Related Items, as and when requested by the Company, the Board, any Affiliate or any tax authority. Participant further acknowledges that (i) neither the Company or the Board make any representation or undertaking regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs including, without limitation, the grant or vesting of the RSUs or the subsequent sale/disposal of the RSUs; and (ii) the Company, the Board does not commit to and are under no obligation to structure the RSUs to reduce or eliminate Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the date on which the RSUs are granted and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company, the Board may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Conditions to Delivery of Shares</u>. The Shares deliverable hereunder may be either previously authorized but unissued Shares, treasury Shares or issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall not be required to issue Shares deliverable hereunder prior to fulfillment of the conditions set forth in Section 13.8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Rights as Shareholder</u>. The holder of the RSUs shall not be, nor have any of the rights or privileges of, a shareholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the RSUs and any Shares underlying the RSUs and deliverable hereunder unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall 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 Sections 4.3 or 10.1 of the Plan.

**Article III.**.<br>**OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Administration</u>. The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Transferability</u>. The RSUs shall be subject to the restrictions on transferability set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Tax Consultation</u>. The Participant understands that the Participant may suffer adverse tax consequences in connection with the RSUs granted pursuant to this Agreement (and the Shares issuable with respect thereto). The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the RSUs and the issuance of Shares with respect thereto and that the Participant is not relying on the Company for any tax advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Binding Agreement</u>. Subject to the limitation on the transferability of the RSUs contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Adjustments Upon Specified Events</u>. The Administrator may accelerate the vesting of the RSUs in such circumstances as it, in its sole discretion, may determine. The Participant acknowledges that the RSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and Sections 13 and 14 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant's last address reflected on the Company's records. By a notice given pursuant to this Section 3.6, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Participant's Representations</u>. If the Shares issuable hereunder have not been registered under the Securities Act or any applicable state laws on an effective registration statement at the time of such issuance, the Participant shall, if required by the Company, concurrently with such issuance, make such written representations as are deemed necessary or appropriate by the Company or its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Governing Law</u>. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Conformity to Securities Laws</u>. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any other Applicable Law. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the RSUs are granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board; *provided, however,* that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the RSUs in any material way without the prior written consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in Section 3.2 hereof, this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the Plan, the RSUs and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement does not confer upon the Participant any right to be retained in the employ or service of the Company or any Affiliate and shall not interfere with the ability of the Participant's employer from time to time (the "<u>Employer</u>") to terminate the Participant's service at any time, with or without cause, subject to 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;(b) The Plan is established voluntarily by the Company. It is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement. The grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Awards, or benefits in lieu of Awards, even if Awards have been granted repeatedly in the past. All decisions with respect to future grants of Awards, if any, will be at the sole discretion of the Company. The RSUs are extraordinary items that do not constitute compensation of any kind for service of any kind rendered to the Company or Affiliate, and which are outside the scope of your employment contract, if any and are not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service options, pension or retirement benefits or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof, provided that the RSUs shall be subject to any accelerated vesting provisions in any written agreement between the Participant and the Company or a Company plan pursuant to which the Participant participates, in each case, in accordance with the terms therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>Section 409A</u>. This Award is not intended to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, "***Section 409A***"). However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that this Award (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate for this Award either to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Participant shall have only the rights of a general unsecured creditor of the Company and its Subsidiaries with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to RSUs, as and when payable hereunder.

\* \* \* \* \*

**IONIC DIGITAL INC.**

**OMNIBUS INCENTIVE PLAN**

**PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

Ionic Digital Inc., a Delaware corporation (the "***Company***"), pursuant to its Omnibus Incentive Plan, as amended from time to time (the "***Plan***"), hereby grants to the holder listed below (the "***Participant***"), an award of performance restricted stock units ("***Performance Restricted Stock Units***" or "***PRSUs***"). Each vested Performance Restricted Stock Unit represents the right to receive, in accordance with the Performance Restricted Stock Unit Award Agreement attached hereto as **Exhibit A** (the "***Agreement***"), one Common Share ("***Share***"). This award of Performance Restricted Stock Units is subject to all of the terms and conditions set forth herein and in the Agreement and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Performance Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") and the Agreement.

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| | |
|:---|:---|
| **Participant:** | Andy Stewart |
| **Grant Date:** | November 17, 2025 |
| **Total Number of PRSUs:** | 560625 |

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| | |
|:---|:---|
| **Vesting Criteria:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The PRSUs shall vest upon a Change in Control, subject in each case to the Participant's continued employment through the date of such Change in Control and achievement of the following performance thresholds:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest upon a Change in Control in which the Company has a Valuation that equals or exceeds $2.5 billion;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest upon a Change in Control in which the Company has a Valuation that equals or exceeds $3.75 billion; and<br>One-third (1/3) of the PRSUs shall vest upon a Change in Control in which the Company has a Valuation that equals or exceeds $5 billion.<br>Notwithstanding the foregoing, the PRSUs shall also be eligible to vest upon achievement of the following performance metrics, subject to Participant's continued employment with the Company through achievement of such metric, and for a period of six (6) months thereafter:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest if the Company's average daily weighted stock price over 60 calendar days creates a Valuation that equals or exceeds $2.5 billion;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest if the Company's average daily weighted stock price over 60 calendar days creates a Valuation that equals or exceeds $3.75 billion; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest if the Company's average daily weighted stock price over 60 calendar days creates a Valuation that equals or exceeds $5 billion<br>For the purposes of these Performance Restricted Stock Units, "**Valuation**" means the fair market value of the Company, determined as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts. The Company Valuation shall be calculated based on the aggregate value of all outstanding equity interests in the Company, including all classes of stock and other securities convertible into or exchangeable for equity interests, and shall be reduced by (i) all outstanding indebtedness and other liabilities of the Company (whether current, long-term, contingent, or otherwise), (ii) all accrued but unpaid expenses, and (iii) any other amounts that, in accordance with generally accepted accounting principles (GAAP), should be deducted to determine the net value distributable to equity holders upon a sale, liquidation, or similar transaction. The determination of Valuation shall be made in good faith by the Board of Directors (or its designee), whose decision shall be final and binding. |

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| | |
|:---|:---|
| **Termination:** | If the Participant experiences a termination of employment for any or no reason, all PRSUs that have not become vested on or prior to the date of such termination of service will thereupon be automatically forfeited by the Participant without payment of any consideration therefor. |

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By his or her signature and the Company's signature below, the Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and this Grant Notice. The Participant has reviewed the Plan, the Agreement and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, the Agreement and this Grant Notice. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee (referred to herein and in the Agreement as the "***Administrator***") upon any questions arising under the Plan, the Agreement or this Grant Notice. In addition, by signing below, the Participant also agrees that the Company, in its sole discretion, may satisfy any withholding obligations in accordance with Section 2.6 of the Agreement and the Plan. **The Participant's acceptance of this Agreement constitutes his or her instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf shares of Common Stock from those Shares issuable to Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy Participant's tax withholding obligation.**

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| | |
|:---|:---|
| **IONIC DIGITAL INC.:** | **PARTICIPANT:** |
| By: | By: |
| Print Name: | Print Name: |
| Title: |  |

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**Exhibit A**

**TO PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

**PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT**

Pursuant to the Performance Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") to which this Performance Restricted Stock Unit Award Agreement (this "***Agreement***") is attached, Ionic Digital Inc., a Delaware corporation (the "***Company***"), has granted to the Participant the number of Performance Restricted Stock Units ("***Performance Restricted Stock Units***" or "***PRSUs***") set forth in the Grant Notice under the Company's Omnibus Incentive Plan, as amended from time to time (the "***Plan***"). Each Performance Restricted Stock Unit represents the right to receive one Share upon vesting.

**Article I.**<br>GENERAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Defined Terms</u>.Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Incorporation of Terms of Plan</u>. The PRSUs are subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

**Article II.**<br> **<br> GRANT OF PERFORMANCE RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Grant of PRSUs</u>. Pursuant to the Grant Notice and upon the terms and conditions set forth in the Plan and this Agreement, effective as of the Grant Date set forth in the Grant Notice, the Company hereby grants to the Participant an award of PRSUs under the Plan in consideration of the Participant's past or continued service to the Company or any Subsidiaries and for other good and valuable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Unsecured Obligation to PRSUs</u>. Unless and until the PRSUs have vested in the manner set forth in Article 2 hereof, the Participant will have no right to receive Shares under any such PRSUs. Prior to actual payment of any vested PRSUs, such PRSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Vesting Schedule</u>. Subject to Section 2.5 hereof, the PRSUs shall vest and become nonforfeitable with respect to the applicable portion thereof according to the vesting schedule set forth in the Grant Notice (rounding down to the nearest whole Share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Consideration to the Company</u>. In consideration of the grant of the award of PRSUs pursuant hereto, the Participant agrees to render faithful and efficient services to the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Forfeiture, Termination and Cancellation upon Termination of Service</u>. Notwithstanding any contrary provision of this Agreement or the Plan, upon the Participant's termination of service with the Company or its Subsidiaries for any or no reason, all Performance Restricted Stock Units which have not vested prior to or in connection with such termination of service shall thereupon automatically be forfeited, terminated and cancelled as of the applicable termination date without payment of any consideration by the Company, and the Participant, or the Participant's beneficiary or personal representative, as the case may be, shall have no further rights hereunder with respect to such forfeited PRSUs. No portion of the PRSUs which has not become vested as of the date on which the Participant incurs a termination of service with the Company or its Subsidiaries shall thereafter become vested, except as may otherwise be provided by the Administrator or as set forth in a written agreement between the Company and the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Issuance of Shares upon Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as administratively practicable following the vesting of any Performance Restricted Stock Units pursuant to Section 2.3 hereof, but in no event later than 30 days after such vesting date (for the avoidance of doubt, this deadline is intended to comply with the "short term deferral" exemption from Section 409A of the Code), the Company shall deliver to the Participant (or any transferee permitted under Section 3.2 hereof) a number of Shares equal to the number of PRSUs subject to this Award that vest on the applicable vesting 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;(b) As set forth in Section 13.4 of the Plan, the Company shall have the authority and the right to deduct or withhold, or to require the Participant to remit to the Company, an amount sufficient to satisfy all applicable federal, state and local taxes required by law to be withheld with respect to any taxable event arising in connection with the Performance Restricted Stock Units. Additionally, the Company may, in its sole discretion, satisfy any withholding obligations relating to Participant's PRSUs by any of the following means or by a combination of such means: (i) withholding shares of Common Stock otherwise issuable to the Participant upon vesting of the PRSUs, (ii) instructing a broker on the Participant's behalf to sell shares of Common Stock otherwise issuable to the Participant upon vesting of the PRSUs sufficient to generate net proceeds sufficient to satisfy the Company's minimum statutory withholding obligations with respect to the income recognized by the Participant upon the vesting of the PRSUs (based on minimum statutory withholding rates for all tax purposes, including payroll and social security taxes, that are applicable to such income) and the net proceeds of such sale shall be submitted to the Company, (iii) requiring Participant to make a payment in cash to the Company, or (iv) using any other method approved by the Company, and to the extent required by applicable laws or the Plan, approved by the Administrator. Until determined otherwise by the Company, clause (ii) will be the method by which such withholding obligations are satisfied, unless the Participant choses to satisfy his or her withholding obligation in accordance with clause (iii) at any time not less than five (5) business days before any withholding obligation arises. The Company shall not be obligated to deliver any Shares to the Participant or the Participant's legal representative unless and until the Participant or the Participant's legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the taxable income of the Participant resulting from the grant or vesting of the Performance Restricted Stock Units or the issuance of 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;(c) Without prejudice to the provisions of Section 13.4 of the Plan, Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social security and other tax-related items related to Participant's participation in the Plan and the PRSUs and legally applicable to Participant or deemed by the Company, the Board in its discretion to be an appropriate charge to Participant even if legally applicable to the Company, Board (to the extent lawful) (collectively, "***Tax-Related Items***") is and remains Participant's responsibility and may exceed the amount (if any) withheld by the Company, the Board, and Participant hereby covenants to pay any such Tax-Related Items, as and when requested by the Company, the Board, any Affiliate or any tax authority. Participant further acknowledges that (i) neither the Company or the Board make any representation or undertaking regarding the treatment of any Tax-Related Items in connection with any aspect of the PRSUs including, without limitation, the grant or vesting of the PRSUs or the subsequent sale/disposal of the PRSUs; and (ii) the Company, the Board does not commit to and are under no obligation to structure the PRSUs to reduce or eliminate Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the date on which the PRSUs are granted and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company, the Board may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Conditions to Delivery of Shares</u>. The Shares deliverable hereunder may be either previously authorized but unissued Shares, treasury Shares or issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall not be required to issue Shares deliverable hereunder prior to fulfillment of the conditions set forth in Section 13.8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Rights as Shareholder</u>. The holder of the PRSUs shall not be, nor have any of the rights or privileges of, a shareholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the PRSUs and any Shares underlying the PRSUs and deliverable hereunder unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall 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 Sections 4.3 or 10.1 of the Plan.

**Article III.**<br>**OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Administration</u>. The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the PRSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Transferability</u>. The PRSUs shall be subject to the restrictions on transferability set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Tax Consultation</u>. The Participant understands that the Participant may suffer adverse tax consequences in connection with the PRSUs granted pursuant to this Agreement (and the Shares issuable with respect thereto). The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the PRSUs and the issuance of Shares with respect thereto and that the Participant is not relying on the Company for any tax advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Binding Agreement</u>. Subject to the limitation on the transferability of the PRSUs contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Adjustments Upon Specified Events</u>. The Administrator may accelerate the vesting of the PRSUs in such circumstances as it, in its sole discretion, may determine. The Participant acknowledges that the PRSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and Sections 13 and 14 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant's last address reflected on the Company's records. By a notice given pursuant to this Section 3.6, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Participant's Representations</u>. If the Shares issuable hereunder have not been registered under the Securities Act or any applicable state laws on an effective registration statement at the time of such issuance, the Participant shall, if required by the Company, concurrently with such issuance, make such written representations as are deemed necessary or appropriate by the Company or its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Governing Law</u>. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Conformity to Securities Laws</u>. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any other Applicable Law. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the PRSUs are granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board; *provided, however,* that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the PRSUs in any material way without the prior written consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in Section 3.2 hereof, this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the Plan, the PRSUs and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement does not confer upon the Participant any right to be retained in the employ or service of the Company or any Affiliate and shall not interfere with the ability of the Participant's employer from time to time (the "<u>Employer</u>") to terminate the Participant's service at any time, with or without cause, subject to 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;(b) The Plan is established voluntarily by the Company. It is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement. The grant of the PRSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Awards, or benefits in lieu of Awards, even if Awards have been granted repeatedly in the past. All decisions with respect to future grants of Awards, if any, will be at the sole discretion of the Company. The PRSUs are extraordinary items that do not constitute compensation of any kind for service of any kind rendered to the Company or Affiliate, and which are outside the scope of your employment contract, if any and are not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service options, pension or retirement benefits or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof, provided that the PRSUs shall be subject to any accelerated vesting provisions in any written agreement between the Participant and the Company or a Company plan pursuant to which the Participant participates, in each case, in accordance with the terms therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>Section 409A</u>.This Award is not intended to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, "***Section 409A***"). However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that this Award (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate for this Award either to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Participant shall have only the rights of a general unsecured creditor of the Company and its Subsidiaries with respect to amounts credited and benefits payable, if any, with respect to the PRSUs, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to PRSUs, as and when payable hereunder.

\* \* \* \* \*

## Exhibit 10.6

**Exhibit 10.6**

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|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

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**Energy Management Services Agreement**

This Energy Management Services Agreement together with any Transaction Confirmation as may be hereafter mutually agreed to (the "Agreement"), is entered into by and between **Celsius Mining LLC** ("Customer") and **Priority Power Management, LLC ("PPM")**, a limited liability company duly organized under the laws of Texas, on **November 17, 2022** (the "Effective Date"). PPM and Customer are also referred to herein individually as a "Party" and collectively as the "Parties."

WHEREAS, Customer consumes Energy and has the capability to reduce consumption in response to an Instruction and thus participate in various demand side management programs ("DSM Programs");

WHEREAS, PPM is a Level 4 Qualified Scheduling Entity ("QSE") in ERCOT and is in the business of providing Energy Management Services ("EMS") to customers that desire to participate in demand side management programs ("DSM Programs");

WHEREAS, Customer's participation in each DSM Program will be mutually agreed and documented with a Transaction Confirmation ("TC") signed by both Parties;

WHEREAS, PPM shall provide EMS to Customer subject to the terms and conditions set forth herein;

NOW THEREFORE, in consideration of the foregoing, the mutual Agreements set forth herein and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

**Section 1. Initial and Extended Term.** The initial term of this Agreement shall commence upon the Effective Date and shall continue through the later of either (i) 60-months from the Effective Date, or (ii) the ending date specified on any particular TC (the "Term"). Upon expiration of the initial Term, this Agreement shall automatically renew for successive one-year periods (each renewal period, an "Extended Term") unless either Party gives notice to terminate this Agreement no later than ninety (90) days prior to the then applicable Term or Extended Term. Notwithstanding the foregoing, the initial Term and any Extended Term shall always extend through the end date reflected on any TC.

**Section 2. EMS to be provided by PPM.** In the course of providing EMS to Customer, PPM will:

&nbsp;&nbsp;&nbsp;&nbsp;a. consider the availability, flexibility and constraints of the DSM Assets and, depending on the time of
 year and giving consideration to expected values from participating in the different DSM Programs, recommend Customer's
 participation in the DSM Programs in an effort to maximize the value of the DSM Assets;

&nbsp;&nbsp;&nbsp;&nbsp;b. in conformity with the ERCOT Protocols, provide the Level 4 QSE services necessary for Customer's
 participation in the applicable DSM Program(s), including issuing Instructions received from ERCOT to Customer in accordance with
 the procedures attached hereto as Exhibit A (the "Procedures");

&nbsp;&nbsp;&nbsp;&nbsp;c. meet and maintain necessary certification and performance standards
for a Level 4 QSE in ERCOT;

&nbsp;&nbsp;&nbsp;&nbsp;d. receive from ERCOT and/or a bilateral counterparty as applicable,
revenues earned from Customer's participation in the DSM Programs;

&nbsp;&nbsp;&nbsp;&nbsp;e. on or about the 25th day following the month that revenues are
received by PPM from ERCOT (or an applicable bilateral counterparty) relative to Customer's participation in a DSM Program, produce
and send to Customer a settlement statement. Each settlement statement shall include sufficient and auditable detail to confirm the validity
and accuracy of the information represented therein. Further, each settlement statement shall set forth any payment owed by one Party
to the other Party, and all such amounts shall be settled via wire transfer, to the account specified in the Notices section below, within
ten (10) business days of the date that the settlement statement is sent by PPM to Customer;

&nbsp;&nbsp;&nbsp;&nbsp;f. from time to time, provide Customer with public market information related to the identification of
 issues, trends, developments and forecasts of forward markets for both Energy and Ancillary Services;

&nbsp;&nbsp;&nbsp;&nbsp;g. from time to time, identify market design and regulatory developments
that may impact Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;h. from time to time, identify incremental opportunities for Customer
to minimize their Energy costs and maximize their DSM Program value.

**Section 3. Compensation.** The compensation structure related to Customer's participation in a DSM Program shall be as reflected on the applicable TC.

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|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

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**Section 4. Customer Obligations.** During the Term Customer will do the following:

&nbsp;&nbsp;&nbsp;&nbsp;a. Minimum
 Hedge Threshold. At all times during the Term, prior to any DSM Asset operating as a Controllable
 Load Resource, Customer shall enter into and maintain, for each such DSM Asset, wholesale
 hedges such that eighty-five percent (85%) of Customer's Peak Load for such DSM Asset
 is fully hedged or is otherwise on a fixed rate power purchase contract (the "Minimum
 Hedge Threshold"). Prior to execution and on the 15th day of each month (or on the
 nearest Business Day prior to the 15th day of the month if the 15th day of the month falls
 on a non-Business Day) during the Term, Customer shall provide PPM written documentation
 proving to PPM's satisfaction (which satisfaction shall be determined in PPM's sole
 reasonable discretion) that Customer has met the Minimum Hedge Threshold for its Peak Load
 for each applicable DSM Asset for the upcoming calendar month. For any DSM Asset that is
 operating as a Controllable Load Resource, in the event that either i) PPM determines that
 the Minimum Hedge Threshold has not been met or is not maintained, or ii) Customer requests
 a waiver of the Minimum Threshold Requirement, then Customer shall post Deposit for any such
 DSM Asset with PPM within three (3) Business Days of PPM's demand for Deposit. "Deposit"
 means for each such DSM Asset, cash in an amount equal to (x) the difference between eighty-five
 percent (85%) of Customer's Peak Load for the applicable DSM Asset and the amount of
 Customer's Peak Load for the applicable DSM Asset actually hedged *multipled by* (y) one hundred sixty-eight (168) hours *multiplied by* the highest weekly average around-the-clock price
 for the Customer's Delivery Point for the upcoming calendar month. Upon the applicable
 DSM Asset meeting the Minimum Hedge Threshold or Customer opting to not operate such DSM
 Asset as a Controllable Load Resource, within a commercially reasonable time, PPM shall return
 the applicable Deposit to Customer.

&nbsp;&nbsp;&nbsp;&nbsp;b. notify PPM of any operational changes or constraints regarding
the DSM Assets and the associated infrastructure and telemetry. To the extent that the DSM Assets fail to perform and such failure results
in a cost or fine imposed upon PPM (each, a "Penalty"), then Customer will reimburse PPM for the Penalty. The Penalty will
be reflected on a settlement statement as a debit to Customer and Customer authorizes PPM to immediately reimburse PPM out of the revenue
received by PPM from ERCOT (or other counterparty) related to Customer's participation in a DSM Program;

&nbsp;&nbsp;&nbsp;&nbsp;c. at all times maintain such certificates, permits, licenses,
authorizations, compliance programs or other similar regulatory or legal credentials with regard to the DSM Assets or otherwise to ensure
Customer's performance hereunder and to ensure compliance with the requirements of all applicable governmental, judicial and regulatory
bodies;

&nbsp;&nbsp;&nbsp;&nbsp;d. in the event that ERCOT or the TDSP require certain telemetry
from the DSM Assets, Customer will work with PPM to jointly arrange for the installation and testing of the interconnect infrastructure
to ERCOT's and/or the TDSP's satisfaction ("Interconnect Infrastructure"). Customer will pay for and own such
Interconnect Infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;e. unless otherwise agreed upon in writing, directly operate its
facilities to achieve Customer's load reduction when scheduled for dispatch as part of the DSM Program; and

&nbsp;&nbsp;&nbsp;&nbsp;f. for each DSM Asset, provide the name and current contact information for Customer's contact
 person who will receive the Instructions in accordance with the Procedures (the "Contact Person"). Contact information
 for the Contact Person shall include the cell phone number, email address, and any other relevant information necessary for PPM to
 contact the Contact Person. Customer is responsible for providing PPM with timely updates to this information.

**Section 5. Force Majeure**. "Force Majeure" shall mean an event that is beyond the reasonable control of the affected Party, including, but not limited to: acts of God, explosions, lightning, earthquakes, fires, storms, tornadoes, floods, epidemics, pandemics, system-wide failure of transmission or distribution or the ERCOT ISO, acts of a public enemy, riot, insurrection, acts of terrorism, or the direct or indirect effect of governmental orders, actions or interferences. If either Party is rendered unable by Force Majeure to perform, in whole or part, its obligations under this Agreement, such Party shall give verbal notice to the other Party as soon as reasonably possible following the beginning of the Force Majeure event. Thereafter, and within three (3) business days, the affected Party shall provide, in writing, full details of the Force Majeure event to the other Party. During any such Force Majeure period, the obligations of the Parties (other than the obligation to make payments with respect to performance rendered prior to such Force Majeure event and the obligation to provide or pay for the replacement of Customer's obligated DSM Asset capacity) shall be suspended to the extent reasonably required by the effects of the Force Majeure. The Party claiming Force Majeure shall make all reasonable attempts to remedy its effects, including replacing Customer's currently obligated DSM Asset capacity that may be lost as a result of the event of Force Majeure (as further set forth in the applicable Transaction Confirmation), and resuming or continuing, as the case may be, performance under this Agreement with all reasonable dispatch. Force Majeure shall not include (a) any Party's decision to shut down, sell or relocate its facilities; or (b) economic loss due to either Party's loss of market(s) or supplier(s).

**Section 6. Events of Default and Termination; Remedies and Early Termination.**

&nbsp;&nbsp;&nbsp;&nbsp;**6.1**  **<u>Events of Default</u>.** Any
one or more of the following events shall constitute an event of default by the applicable Party hereunder (each, an "Event of
Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. failure by a Party to make any payment required hereunder or
under any TC when due if such failure is not remedied within five (5) days after receipt by the defaulting Party of written notice of
such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. failure by a Party to perform any other material obligation
hereunder or under any TC and such failure is not remedied within ten (10) days after receipt by defaulting Party of written notice of
such failure by the non-defaulting Party;

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|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. any representation or warranty made by a Party pursuant to this
Agreement or in a TC that shall have been false in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Customer assigns or seeks to assign the Agreement in the event
of a sale of substantially all of its assets to another entity without the consent of PPM in violation of Section 23 herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Other than Customer's pending chapter 11 cases, a Party: (i) commences a voluntary case or
 proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or consents to the filing of a petition
 to such effect or to the appointment of or taking possession by a custodian, receiver or similar official of such party of all or
 substantially all its property or assets, or admits in writing its inability to pay its debts generally as they become due, or takes
 corporate action in furtherance of any such action, or is the subject of an entry by a Court having jurisdiction of a decree or
 order for relief in an involuntary case or proceeding under any such law or decree or order making such an appointment; (ii) has a
 receiver or receiver manager or a court appointed official appointed for all or substantially all its proprietary assets; or institutes any proceedings for the cessation of its business or corporate existence; (iii) makes an
 assignment or attempted assignment for the benefit of its creditors; or consolidates, reorganizes, reincorporates or reconstitutes
 into or as, amalgamates with, or merges into or with a transfer substantially all of its assets to another entity and the
 resulting entity fails to assume all of such Party's obligations hereunder by operation of law or pursuant to an agreement
 reasonably satisfactory to the other Party; or (iv) with respect to Customer, (A) Customer's pending chapter 11 case is
 converted to a case under chapter 7 of the Bankruptcy Code, (B) there is appointed in
 Customer's pending chapter 11 case a chapter 11 trustee or an examiner with expanded powers beyond those set forth in section
 1106(a) of the Bankruptcy Code is appointed; or (C) Customer's pending chapter 11 case is dismissed without a plan being
 confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;**6.2**  **<u>Events of Immediate Termination</u>.** The following
occurrence shall constitute an Event of Termination for which this Agreement may be immediately terminated by either Party upon written
notice to the other Party: failure of either Party to perform its obligations under this Agreement or any TC due to an event of Force
Majeure for a period exceeding ninety (90) days.

&nbsp;&nbsp;&nbsp;&nbsp;**6.3**  **<u>Early Termination</u>.** If an Event of
 Default occurs, the non-defaulting Party (as the terminating Party) may terminate this Agreement
 by written notice to the defaulting Party designating the date of early termination and delivered
 to the defaulting Party no less than ten (10) Business Days before such early termination
 date.

**Section 7. Remedies Upon an Event of Default or Early Termination.** If an Event of Default occurs, without prejudice to any other right or remedy it may have under this Agreement, the non-defaulting Party may, in its discretion, terminate this Agreement and pursue all remedies available at law or in equity, subject however, to any limitations of remedies otherwise provided in this Agreement.

**Section 8. Limitations of Remedies, Liability and Damages.**

&nbsp;&nbsp;&nbsp;&nbsp;**8.1** The
Parties agree that the remedies and measure of damages provided in this Agreement satisfy the essential purposes hereof and where this
Agreement expressly provides for an exclusive remedy in favor of any party for breach, default or failure to perform hereunder, such
remedy shall constitute the sole and exclusive remedy of the non-breaching party for the liabilities of such breaching party arising
out of or in connection with this Agreement, notwithstanding any remedy otherwise available at law or equity. If no measure of damages
or other remedy is expressly provided herein, the obligor's liability shall be limited to direct actual damages only, which direct
actual damages shall be the sole and exclusive remedy and all other remedies or damages at law or in equity are waived. **NOTWITHSTANDING ANYTHING IN THIS AGREEMENT OR ANY TRANSACTION CONFIRMATION TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY BE LIABLE UNDER ANY THIS AGREEMENT OR ANY TRANSACTION CONFIRMATION TO ANY OTHER PARTY OR ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL OR PUNITIVE DAMAGES, INCLUDING ANY DAMAGES FOR BUSINESS INTERRUPTION OR LOSS OF REVENUE OR PROFIT, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT THE PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.** 

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| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;**8.2**  **<u>Duty to Mitigate</u>.** Each Party agrees that it has a duty to mitigate damages, and covenants
 and that it will use commercially reasonable efforts to minimize any damages it may incur as
 a result of the other Party's default or non-performance under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**8.3** Customer shall be liable for any and all charges, fees, penalties,
or claims to which PPM is subject resulting from PPM's performance of the obligations hereunder, including but not limited to charges
assessed by ERCOT, incurred by PPM, Customer, or otherwise assessed to Customer's load, and shall keep PPM whole with respect to any
and all such charges, fees, penalties or claims.

**Section 9. Indemnification.** In addition to the other obligations for indemnification set forth in this Agreement, and except as such obligations may be limited hereunder, each Party shall indemnify, defend and hold the other Party, its parents, Affiliates, officers, partners, parent companies, directors, employees, and agents (the "Party Indemnitees") harmless from Claims asserted against the Party Indemnitees by any Person arising from or out of any breach of its obligations under this Agreement. It is the intent of the Parties that the indemnity and release provided for herein shall be broadly construed and shall apply regardless of whether the Party Indemnitees' strict liability, statutory liability or actual or alleged negligence including, without limitation, the Party Indemnitees' own negligence, is a concurring or contributing cause of the injury, death or damage that is the subject of the Claim, demand, or cause of action asserted against the Party Indemnitees.

**Section 10. Taxes.** Each Party shall be responsible for its own Taxes. Each Party indemnifies releases, defends and agrees to hold harmless the other Party from and against any and all liabilities for Taxes imposed or assessed by any taxing authority with respect to the EMS provided under this Agreement.

**Section 11. Representations and Warranties.** As a material inducement to entering into this Agreement, each Party, with respect to itself, represents and warrants to the other Party, as of the Effective Date of the Agreement and each TC entered hereunder, as follows: (a) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and is qualified to conduct its business in those jurisdictions necessary to perform this Agreement; (b) it has and will maintain all regulatory authorizations, permits and licenses necessary for it to legally perform its obligations under this Agreement; (c) the execution, delivery and performance of this Agreement are within its powers, have been duly authorized by all necessary action and do not violate any of the terms or conditions in its governing documents or any contract to which it is a party or any law, rule, regulation, order, writ, judgment, decree or other legal or regulatory determination applicable to it; and (d) this Agreement and each other document executed and delivered in accordance with this Agreement constitutes its legally valid and binding obligation enforceable against it in accordance with its terms, subject to any equitable defenses.

**Section 12. Confidentiality.** Neither Party shall disclose, unless authorized in writing by the other Party, the fees paid under the terms of this Agreement or any of the details of the methods, plans and practices utilized by PPM in the performance of the EMS which information, disclosed by the disclosing Party, is hereinafter collectively referred to as "Confidential Information," to a third party (other than the receiving Party's lenders, counselors, advisors, or accountants who have agreed to keep such terms and information confidential) except in order to comply with any applicable law, order, regulation or exchange rule or to obtain transmission, distribution, ancillary or other regulated services; provided, however, that each Party will, to the extent legally permissible, notify the other Party of any proceeding of which it is aware of that may result in non-routine disclosure of the disclosing Party's Confidential Information. Further, each Party, when acting as a receiving Party, shall use the Confidential Information solely for the purpose of implementing this Agreement. This confidentiality provision shall not apply to information (a) that was known to the receiving Party prior to its being obtained from the disclosing Party, (b) that is in, or comes into, the public domain, (c) obtained by a Party from a third party who did not, directly or indirectly, receive the information from the disclosing Party or from an entity who was under an obligation of confidentiality to the disclosing Party, or (d) developed by the receiving Party or its Affiliates, independent of any Confidential Information. The obligations set forth in this Section shall survive the termination of this Agreement for a period of two (2) years.

**Section 13. Change in Law.** If there is a change in law or administrative regulation or material change in market design that prohibits the participation of Customer's DSM Assets in the DSM Programs, the Parties shall meet as soon as practicable to attempt to renegotiate the Agreement to comply with such change. If the Parties are not able to reach agreement or there is no way for the Agreement to be modified to alleviate the prohibition within a reasonable time, then either Party may terminate this Agreement upon reasonable written notice to the other Party. In no event shall PPM be obligated to continue this Agreement with respect to Customer's DSM Assets if doing so jeopardizes in any way its market licenses.

**Section 14. Governing Law.** THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO ITS CONFLICT OF LAW PROVISIONS, THE VALIDITY OF THIS AGREEMENT, THE CONSTRUCTION OF ITS TERMS, AND THE INTERPRETATION OF THE RIGHTS AND DUTIES ARISING HEREUNDER.

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| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

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**Section 15. Waiver; Amendments.** Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. Subject to the limitations in this Agreement, all remedies, either under this Agreement or by law or otherwise afforded, shall be cumulative and not alternative. No delay or omission by the Parties hereto in exercising any right or remedy provided for herein shall constitute a waiver of such right or remedy nor shall it be construed as a bar to or waiver of any such right or remedy on any future occasion. This Agreement may be amended, supplemented or modified only by a written instrument duly executed by each Party hereto.

**Section 16. Severability.** The terms and provisions of this Agreement shall be deemed severable. If any term or provision or part thereof contained in this Agreement is held by a court of competent jurisdiction to be contrary to law or public policy or otherwise unenforceable, then (i) the remaining provisions of this Agreement will remain in full force and effect, and the application of such term or provision in any other situation or respect shall not be affected, and (ii) the Parties shall use their good faith efforts to agree to a suitable and equitable term or provision to be substituted therefor in order to carry out, so far as may be legal, valid and enforceable the original intent and purpose of such illegal, invalid or unenforceable provisions.

**Section 17. Survival.** All confidentiality, indemnity and audit rights set forth herein will survive the termination of this Agreement for two (2) years from the effective date of such termination.

**Section 18. Entire Agreement.** This Agreement constitutes the sole and entire agreement of the Parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

**Section 19. No Partnership Created.** Nothing contained in this Agreement shall be construed as constituting a joint venture or partnership between PPM and Customer or any other Person, or otherwise authorize a Party to represent or bind the other Party.

**Section 20. Counterparts.** This Agreement may be executed in several counterparts, each of which will be an original and all of which constitute the same instrument. A signed copy of this Agreement and any TC delivered by PDF, facsimile, electronic mail (e-mail), or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

**Section 21. Setoff.** PPM is hereby authorized, to the fullest extent permitted by law, to set off and apply any and all obligations at any time owing by Customer to PPM under this Agreement against any obligations now or hereafter owing by PPM to Customer. The rights of PPM under this Section 20 are in addition to other rights and remedies (including other rights of setoff) that PPM may have.

**Section 22. Third Party Beneficiaries.** This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

**Section 23. Assignment.** This Agreement shall be binding upon and shall inure to the benefit of, and may be performed by, the successors and assigns of the Parties, except that, no assignment by either Party shall operate to release the assignor from any of its obligations under this Agreement, unless the other Party consents in writing to such assignment and releases, in writing, the assignor from any of its obligations hereunder (such consent not to be unreasonably withheld or delayed).

Notwithstanding the foregoing, and without the consent of the other Party, either Party may assign (i) any of its rights, obligations and duties hereunder to (A) if applicable, subcontractors engaged by it and/or (B) an entity who purchases all or substantially all of the assets of such Party, and/or (C) an affiliate of such Party and/or (D) in connection with Customer's Chapter 11 case.

**Section 24. Definitions.** In addition to the definitions contained in parentheticals throughout the Agreement, the following definitions shall apply hereunder whether stated in the singular or plural. Capitalized terms not otherwise defined in this Agreement shall have the respective meanings set forth in the ERCOT Protocols and/or the PUCT Rules and Regulations.

"4CP" means the Four Coincidental Peaks and is a value measured by the regulated utilities and coops in Texas that is used to directly or indirectly capture regulated transmission and transmission cost recovery factor rates from end-use customers. It is calculated based upon ERCOT system peak demand during the months of June, July, August and September in coincidence with client loads, as measured over a 15-minute interval time period.

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| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

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"Affiliate" means, with respect to any Person, any other Person (other than an individual) that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. For this purpose, "control" means the direct or indirect ownership of fifty percent (50%) or more of the outstanding capital stock or other equity interests having ordinary voting power.

"Agreement" means this Energy Management Services Agreement and any and all Transaction Confirmations.

"Ancillary Services" means the services required by ERCOT as set forth in Section 6 of the ERCOT Protocols.

"Bankrupt" means with respect to any entity, such entity (i) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under a law related to Bankruptcy or Insolvency or has any such petition filed or commenced against it which is not dismissed within 30 days, (ii) makes an assignment or any general arrangement for the benefit of creditors, (iii) otherwise becomes bankrupt or Insolvent (however evidenced), (iv) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (v) is Insolvent.

"Business Day" means any day except a Saturday, Sunday, or a Federal Reserve Bank holiday. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m. CPT.

"Claiming Party" means the Party claiming an event of Force Majeure.

"Claims" means all third party claims, demands or causes of action, that directly or indirectly relate to the subject matter of an indemnity given hereunder, and the resulting losses, damages, expenses, reasonable attorneys' fees and court costs, whether incurred by settlement or otherwise, whether such claims or actions are threatened or filed prior to or after the termination of this Agreement.

"CPT" means Central Prevailing Time.

"DSM Assets" means a facility that has the ability to reduce or modify electricity use in response to instructions or signals. DSM Assets will be identified with its associated site address, common name and utility account number on a TC.

"DSM Programs" means the ERCOT Ancillary Service Markets, Load Resource Participation or Load Acting as a Resource ("LAAR"), TDSP Commercial Load Management ("CLM"), Emergency Response Service ("ERS10" and "ERS30"), collectively "ERS"), Four Coincident Peak ("4CP") and Economic Energy Dispatch opportunities to produce revenue and/or reduce Customer cost. The scope of DSM Programs may change from time to time and to the extent that a new DSM Program becomes available, PPM will notify Customer of the new DSM Program attributes and Customer's participation shall be documented on a TC. The standards of compliance for Ancillary Services, LAAR, ERS10, ERS30 are set forth in the ERCOT Protocols.

"Energy" means electric energy.

"ERCOT" means the Electric Reliability Council of Texas or its successor(s).

"ERCOT Protocols" means the document adopted by ERCOT, including any attachments or exhibits referenced in these Protocols, as amended from time to time, that contain, among other things, the scheduling, operating, planning, reliability, and settlement (including Customer registration) policies, rules, guidelines, procedures, standards, and criteria of ERCOT.

"Governmental Authority" means any federal, state, local, municipal or other government, any governmental, regulatory or administrative agency, commission or other authority, having jurisdiction over a given matter and lawfully exercising, or being entitled to exercise, jurisdiction over the Parties or in connection with such matter.

"HE" means hour ending.

"Insolvent" means with respect to any Party, when such Party shall be unable to pay liabilities as they mature, or such entity shall admit in writing its inability to pay its debts generally as they become due.

"Instruction" means an electronic or verbal communication initiated by ERCOT, sent to PPM and then relayed to Customer to either decrease Energy consumption or increase the output of a Generating Unit or both.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

***"Peak Load*"** is defined as the max interval usage reflected by utility metered historical usage data or telemetered meter data to PPM.

"Person" means any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other business organization, trust, union, association, Governmental Authority or other form or legal entity.

"PUCT" means the Public Utility Commission of Texas.

"Taxes" means any and all sales, use, gross receipts, franchise, excise, or any other taxes or similar charges imposed by any Governmental Authority on, or with respect to the sale and purchase of Energy or other products sold hereunder, but excluding property and income taxes imposed on the respective Parties, fees or charges by ERCOT and any fees or charges already included in the TDSP charges.

"Transmission and Distribution Service Provider" or "TDSP" means the regulated companies providing electric transmission and distribution service as designated by the PUCT.

"Transaction Confirmation" means a document entitled Transaction Confirmation, incorporating the terms of this Agreement by reference, and setting forth the commercial terms and conditions of Customer's participation in a certain DSM Program, signed by both Parties and substantially similar to Exhibit B.

**Section 25. Notices.** Notices, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. The addresses of the Parties for Notice are as follows (or at such other address for a Party as shall be specified in a notice given in accordance with this Section):

---

| | | |
|:---|:---|:---|
| **Notices to CUSTOMER** | **Notices to CUSTOMER** | **Notices to CUSTOMER** |
|  | Contract Issues | Billing & Payment |
| Attn: | Legal | Dave Albert |
| Address: | Celsius Mining LLC<br> 50 Harrison St, Suite 209F | Celsius Mining LLC<br> 50 Harrison St, Suite 209F |
| City,<br> State,<br> Zip | Hoboken NJ 07030 | Hoboken NJ 07030 |
| Phone# |  | 412-736-4933 |
| Email: | legal@celsius.network | david.albert@celsius.network |

---

---

| | |
|:---|:---|
| **Notices to PPM** | **Notices to PPM** |
| Attn: | Russell Schwertner |
| Address: | 4526 Research Forest Drive<br> Suite 250 |
| City,<br> State,<br> Zip, | The Woodlands, TX 77381 |
| Phone# | 281-231-9129 |
| Email: | rschwertner@prioritypower.net |

---

*[Signature page to follow]*

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

IN WITNESS WHEREOF, and intending to be legally bound, the Parties, have duly executed this Agreement by their authorized representatives as of the Effective Date. This Agreement will not become effective as to either Party unless and until executed by both Parties.

---

| | | | |
|:---|:---|:---|:---|
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | Authorized Signatory | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT A**

Procedure for interrupting the load:

&nbsp;&nbsp;&nbsp;&nbsp;1. For ERCOT deployments, PPM will send a trip signal to interrupt
the load.

&nbsp;&nbsp;&nbsp;&nbsp;2. CUSTOMER will receive a deployment notification from PPM
via phone call, text and/or email to the phone number and email supplied by CUSTOMER to PPM for the Contact Person.

&nbsp;&nbsp;&nbsp;&nbsp;3. When the event is over, CUSTOMER will receive a restoration
notification from PPM via phone call, text and/or email to the phone number and email supplied by CUSTOMER to PPM for the Contact Person.

&nbsp;&nbsp;&nbsp;&nbsp;4. PPM will reset the trip signal.

&nbsp;&nbsp;&nbsp;&nbsp;5. CUSTOMER has 3 hours to restore load.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT B**

**Transaction Confirmation #1**

This Transaction Confirmation confirms the transaction between the Parties agreed to as of the date accepted by Priority Power Management LLC ("PPM") below pursuant to and in accordance with the Energy Management Services Agreement entered into between PPM and Celsius Mining LLC("Customer") dated November 17, 2022 (the "Agreement") and constitutes part of and is subject to all of the terms and provisions of such Agreement. Capitalized terms used but not defined herein shall have the meanings given to them in the Agreement, or to the extent not used therein, capitalized terms shall have the respective meanings set forth in the relevant ERCOT Protocols, Manuals, Rules and/or Regulations governing the demand response opportunity, product and/or program.

**Demand Response Opportunity:** ERCOT Ancillary Services Market, including (to the extent offered by ERCOT and to the extent Customer is eligible to participate) Regulation Service – Up, Regulation Service – Down, Responsive Reserve Service, and Non-spinning Reserve Service, and such other ancillary services products as ERCOT may offer from time to time

**Qualification and Registration of Load Resource:** PPM will seek qualification and registration at ERCOT of Customer's DSM Assets based on the capabilities of the DSM Assets, in accordance with the ERCOT Protocols and Applicable Law, which are subject to amendment from time to time. Each DSM Asset may operate as a Controllable Load Resource ("CLR") or a Non- Controllable Load Resource ("Load Resource"), depending upon its ability to meet the functional requirements related thereto.

**Start Date:** November 17, 2022

**Term:** Start Date through November 16, 2027

**DSM Assets:**

---

| | | |
|:---|:---|:---|
| **Common Name** | **ESI ID** | **Estimated Total<br> Quantity (in MW)<br> ("ETQ")** |
| EAST STILES | 10443720005252691 | 15 |
| East Stiles 2 | 10443720005139830 | 15 |
| GARDEN CITY | 10443720005427407 | 12 |
| REBEL | 10443720007617836 | 12.5 |
| Rebel 2 | 10443720002673458 | 12.5 |
| STILES | 10443720000076843 | 20 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Description**: PPM and Customer agree to work together to develop a commercially appropriate curtailment plan for the DSM Assets (the "Curtailment Plan"). As part of the development of such Curtailment Plan, and the maintenance of such Curtailment Plan during the Term, Customer agrees to advise PPM and keep PPM advised as to planned outages, maintenance and forced outages, and recognizes that time is of the essence with respect to such communications. The Curtailment Plan will be updated from time to time, and each Party recognizes the need to update the Curtailment Plan in real-time as is necessary to maximize the performance of the DSM Assets.

Notwithstanding the above, during the Term, unless Customer has opted out in accordance with the terms herein, Customer shall make available the DSM Assets listed in the table above for participation in the Ancillary Services Market. Customer shall make best efforts to maximize participation of the DSM Assets but, from time to time, Customer may opt certain DSM Asset(s) out of participation for an Operating Day (or for certain operating hours during the Operating Day) by giving PPM written notice of Customer's opt-out by 8 a.m. Central Time the day prior to the Operating Day for which the opt-out applies.

Unless Customer has given PPM written notice by 8 a.m. Central Time the day prior to the Operating Day, PPM will offer into the ERCOT Ancillary Services Market, an amount of Customer's capacity associated with the DSM Assets that, in PPM's reasonable judgment, complies with the ERCOT protocols up to the ETQ as set forth in the table above. Customer understands that the ETQ does not represent the ERCOT awarded quantities and is solely a best estimate of possible performance of the DSM Asset, and that the amount of capacity offered, the price associated therewith, and the ERCOT awarded quantities will vary from time to time.

Customer understands that once an offer of capacity related to DSM Asset(s) by PPM on behalf of Customer is accepted by ERCOT and awarded by ERCOT, it becomes "Customer's Ancillary Services Obligation", and Customer agrees to reduce electrical demand to achieve its obligated capacity during a demand response event. Customer also agrees not to offer or otherwise obligate the capacity that comprises the Customer's Ancillary Services Obligation.

PPM agrees to provide Customer reasonable written notice of any Customer Ancillary Services Obligation that may be expected to exceed 24 hours.

**Economic Settlement**: Customer's load shall receive revenues related to its participation in the ERCOT Ancillary Services Market and such revenues are determined using the ERCOT awarded quantities and associated market clearing prices. If, for any period of time during the Term Customer's Ancillary Services Obligation to ERCOT is not met, whether due to Force Majeure, a forced outage, or otherwise, Customer authorizes PPM (at PPM's sole option and without advance notice to Customer) to replace the obligated capacity by procuring financial or physical replacement Ancillary Services from a third party and/or from ERCOT, and the decision with respect to counterparty and price shall be made in PPM's sole discretion (such replacement Ancillary Services called "Replacement AS"). PPM will make commercially reasonable efforts to procure the Replacement AS at a commercially reasonable cost to Customer. For all hours and all obligated capacity for which PPM procures Replacement AS, PPM will charge Customer, and Customer shall be obligated to pay PPM, a "Replacement AS Cost" equal to the amount PPM paid for the Replacement AS. If the Replacement AS charges exceed the revenues relative to this Transaction, Customer will remit payment to PPM in the amount invoiced by PPM within ten (10) Business Days after receipt of the invoice from PPM. If the Replacement AS charges do not exceed the revenues relative to the Transaction, Customer hereby authorizes PPM to net the Replacement AS charges against the revenue and remit the difference to the Customer.

**Reimbursable Expenses; Monthly Telecommunication Costs**. In the event PPM incurs out of pocket expenses related to the EMS, Customer shall reimburse PPM monthly for such expenses that are reasonable in amount, reasonably incurred, verified, and approved by Customer. Customer is further responsible for all monthly telecommunication expenses incurred hereunder and PPM shall pass through the cost of monthly telecommunication expenses to Customer without additional markup. Out of pocket expenses and monthly telecommunication expenses will be reflected on the monthly settlement statement prepared by PPM and delivered to Customer, and Customer shall satisfy those costs and expenses reflected thereon in accordance with the Agreement.

During a period of deployment ERCOT may assess Imbalance Charges to PPM. The full amount of these charges will be passed through to the Customer without markup and Customer is responsible for these Imbalance Charges. If the Imbalance Charges exceed the revenues relative to this Transaction Confirmation, Customer will remit payment to PPM in the amount invoiced by PPM. If the Imbalance Charges do not exceed the revenues relative to the Transaction Confirmation, Customer hereby authorizes PPM to net the Imbalance Charges against the revenue and remit the difference to the Customer in full satisfaction of PPM's obligation hereunder. "Imbalance Charges" include any and all charges assessed by ERCOT related to imbalance, including but not limited to the Real-Time Ancillary Service Imbalance Amount and the Real-Time Reliability Deployment Ancillary Service Imbalance Amount.

For all awarded quantities, the compensation shall be the revenues relative to this Transaction actually received by PPM from ERCOT (subject to the netting of Replacement AS and Imbalance Charges as set forth herein, if any). The net revenues shall be divided between the Parties with:

&nbsp;&nbsp;&nbsp;&nbsp;a) 92% of the net revenue accruing to Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;b) 8% of the net revenue accruing to PPM.

*[Signature page to follow]*

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Agreed and Accepted.** | **Agreed and Accepted.** | | |
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | **Authorized Signatory** | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Transaction Confirmation #2**

This Transaction Confirmation confirms the transaction between the Parties agreed to as of the date accepted by Priority Power Management LLC ("PPM") below pursuant to and in accordance with the Energy Management Services Agreement entered into between PPM and Celsius Mining LLC ("Customer") dated <u>November 17, 2022</u> (the "Agreement") and constitutes part of and is subject to all of the terms and provisions of such Agreement. Terms used but not defined herein shall have the meanings ascribed to them in the Agreement, or to the extent not therein defined terms shall have the respective meanings set forth in the relevant ERCOT Protocols, Manuals, Rules and/or Regulations governing the demand response opportunity and/or program.

**Opportunity:** 4CP

**Term:** 60 Months beginning <u>11/17/2022</u> through <u>11/16/2027</u>

---

| | | |
|:---|:---|:---|
| **Common Name** | **ESI ID** | **Estimated Total<br> Quantity (in MW)<br> ("ETQ)** |
| EAST STILES | 10443720005252691 | 15 |
| East Stiles 2 | 10443720005139830 | 15 |
| GARDEN CITY | 10443720005427407 | 12 |
| REBEL | 10443720007617836 | 12.5 |
| Rebel 2 | 10443720002673458 | 12.5 |
| STILES | 10443720000076843 | 20 |

---

**Description:** PPM will notify CUSTOMER of the periods that PPM reasonably expects 4CP to occur. Customer acknowledges and agrees that

i) it is not possible to know the exact timing of a 4CP event and ii) PPM makes no representation as to its ability to identify in advance any 4CP event.

**Economic Settlement:** The value associated with 4CP will be determined for each ESIID by calculating a "Monthly Curtailment Amount" for each of the intervals in the summer months used by the TDSP to determine 4CP demand. The Monthly Curtailment Amount is calculated by subtracting Customer's actual metered consumption during the 4CP intervals from Customer's Baseline Load. Baseline Load is calculated by the same method as described for the Meter-Before/Meter-After Model as described in the ERCOT Demand Response Baseline Methodologies document. Each Monthly Curtailment Amount will be multiplied by 4 to compute the hourly demand and then averaged to calculate the "4CP Reduction". The 4CP Reduction described above shall be the input into the TDSP tariff calculation to determine the dollar value of the savings realized by taking action to reduce Energy consumption during a 4CP event ("4CP Savings"). The 4CP Savings shall be divided between the Parties with:

&nbsp;&nbsp;&nbsp;&nbsp;a) 100% of the Revenue accruing to Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;b) 0% of the Revenue accruing to PPM.

---

| | | | |
|:---|:---|:---|:---|
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | **Authorized Signatory** | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT B (continued)**

**Transaction Confirmation #3**

This Transaction Confirmation confirms the transaction between the Parties agreed to as of the date accepted by Priority Power Management, LLC ("PPM") below pursuant to and in accordance with the Energy Management Services Agreement entered into between PPM and Celsius Mining LLC ("Customer") dated November 17, 2022 (the "Agreement") and constitutes part of and is subject to all of the terms and provisions of such Agreement. Capitalized terms used but not defined berein shall have the meanings given to them in the Agreement, or to the extent not used therein, capitalized terms shall have the respective meanings set forth in the relevant ERCOT Protocols, Manuals, Rules and/or Regulations governing the demand response opportunity, product and/or program.

**Demand Response Opportunity:** Economic Energy Dispatch

PPM will seek qualification and registration at ERCOT of Customer's DSM Assets based on the capabilities of the DSM Assets, in accordance with the ERCOT Protocols and Applicable Law, which are subject to amendment from time to time. Each DSM Asset may operate as a Controllable Load Resource ("CLR") or a Non-Controllable Load Resource ("Load Resource"), depending upon its ability to meet the functional requirements related thereto. Economic Energy Dispatch may be performed through Customer's Voluntary Load Sales in response to wholesale energy market prices via the energy supply contract with Customer's Retail Electric Provider ("REP") or by participating in Security Constrained Economic Dispatch (SCED) administered by ERCOT.

**Term:** 60 Months beginning <u>11/17/2022</u> through <u>11/16/2027</u>

---

| | | |
|:---|:---|:---|
| **Common Name** | **ESI ID** | **Estimated Total<br> Quantity (in MW)<br> ("ETQ)** |
| EAST STILES | 10443720005252691 | 15 |
| East Stiles 2 | 10443720005139830 | 15 |
| GARDEN CITY | 10443720005427407 | 12 |
| REBEL | 10443720007617836 | 12.5 |
| Rebel 2 | 10443720002673458 | 12.5 |
| STILES | 10443720000076843 | 20 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**Description:** Customer and PPM acknowledge and agree that generally, the intent of the Parties related to Customer's participation in Economic Energy Dispatch, is for any and all economic benefit realized relating to the DSM Asset(s) during the Term to be shared in accordance with the revenue sharing percentages set forth below. Customer further acknowledges that practically, the economic benefit intended to be shared hereunder may be realized in a number of different ways, including but not limited to: (i) dollars received by PPM as the QSE for the DSM Asset, (ii) dollars received by or on behalf of Customer (e.g. financial wholesale provider or Retail Electric Provider) or (iii) as an avoided cost to Customer. In any event and regardless of how the economic benefit is practically realized, Customer agrees to work in good faith to ensure the intent of shared economic benefit is met.

During the Term, the DSM Asset(s) may receive an economic benefit in one of three ways:

1. **SCED.** Customer shall determine a price such that when the Locational Marginal Price (LMP) is at
 or above the determined price Customer agrees to curtail its Energy usage (the "Strike Price"). Upon receipt of an
 ERCOT dispatch, PPM will send a Dispatch Instruction to Customer. Customer acknowledges and agrees that i) it is not possible for
 PPM to know what the LMP at any given time will be and ii) PPM makes no representations with respect to its ability to forecast LMP at any given
 time. Customer shall curtail its usage in accordance with the Dispatch Instruction, the ERCOT Protocols and Applicable Law.

2. **Voluntary Load Curtailment**. Customer may determine a price such that when the LMP is at or above the determined price Customer may curtail
its Energy usage, which may trigger liquidation of wholesale block(s) of Energy procured by Customer or on its behalf. In addition, Customer
may facilitate Voluntary Load Curtailment for 4CP, maintenance, and/or at Customer discretion.

3. **Avoided Cost.** In addition to instances of Energy
Dispatch and Voluntary Load Curtailment as set forth in numbers 1 and 2 above, Customer will receive an economic benefit in the form
of an avoided cost in all instances and for all Intervals where Customer's actual metered consumption is less than the wholesale block
quantity and (x) exceeds (y), where (x) is the Real-Time Settlement Price Point (RTSPP) and (y) is the sum of Customer's wholesale block
price plus the retail adder, regardless of the reason for Customer consuming less than the wholesale block. This Avoided Cost is an additional
economic benefit and shall be shared in accordance with the revenue sharing percentages set forth below.

**Economic Settlement:** The economic benefit associated with 1, 2 or 3 above, will be determined by multiplying (a) the Curtailment Amount (as defined herein) for each Settlement Interval by (b) the value of the [RTSPP] minus [the cost of the wholesale block plus the retail adder]. The Curtailment Amount is calculated by subtracting Customer's actual utility metered consumption from the wholesale block quantity for each Settlement Interval.

Economic Settlement Formula:

Curtailment Amount x (RTSPP (Wholesale Block Price + Retail Adder))

The sum of i) the revenue generated by Customer's Energy Dispatch, ii) the revenue generated by Customer's Voluntary Load Curtailment and iii) the value of the Customer's Avoided Cost associated hereunder (the "Revenue") shall be divided between the Parties with:

&nbsp;&nbsp;&nbsp;&nbsp;a) 92%
of the Revenue accruing to Customer; and

&nbsp;&nbsp;&nbsp;&nbsp;b) 8%
of the Revenue accruing to PPM.

**Payment.** If the Revenue is received by PPM, PPM will issue a line item credit on the monthly settlement statement as set forth in Section 2(e) of the Agreement.

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

If the Revenue is received by the Customer via cash payment from its Retail Electric Provider, wholesale provider, ERCOT or other third party, PPM will insert the Revenue amount as a line item on the settlement statement and Customer will remit to PPM the amount invoiced by PPM within ten (10) Business Days after receipt of the invoice from PPM.

If the Revenue is received in the form of a bill credit from Customer's Retail Electric Provider, wholesale provider, ERCOT, or other third party, Customer will nonetheless remit PPM's percentage share of the Revenue via payment to PPM. PPM will insert the Revenue as a line item on the settlement statement and Customer will remit to PPM the amount invoiced by PPM within ten (10) Business Days after receipt of the invoice from PPM.

**Reimbursable Expenses.** PPM will pass through without markup any telecommunication, labor and material charges associated with enabling telemetry and automation as a line item on the monthly settlement statement as set forth in Section 2(e) of the Agreement.

*[Signature page to follow]*

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Celsius Mining LLC** | **Celsius Mining LLC** | **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Chris Ferraro | By: | /s/ Trent Stout |
| Name: | Chris Ferraro | Name: | Trent Stout |
| Title: | **Authorized Signatory** | Title: | Senior Managing Director |
| Date: | 12/20/2022 | Date: | 12/7/2022 |

---

---

| | |
|:---|:---|
| **Energy Management Services Agreement** | ![](ex10-6_001.jpg) |

---

**EXHIBIT C**

**ACH VENDOR / MISCELLANEOUS PAYMENT INFORMATION FORM**

This form is used to conduct Automated Clearing House (ACH) payments to a recipient per applicable, agreed upon invoicing and/or contractual terms between identified parties. The information below is Confidential and applicable to all privacy laws.

**PAYEE / COMPANY INFORMATION**

---

| | |
|:---|:---|
| Company Name: | **Celsius Mining LLC** |
| Address: | **50 Harrison Street, Suite 209F, Hoboken, New Jersey 07030** |
| Contact Person Name: | **Jenny Fan** |
| Telephone #: | **2018242888** |
| Email Address: | **mining.ap@celsius.network** |

---

**FINANCIAL INSTITUTION INFORMATION**

---

| | |
|:---|:---|
| Institution Name: | **Signature Bank** |
| Address: | **1400 Broadway, 26th Floor, New York, NY 10018** |
| Telephone #: | **(646) 949-4054** |
| Routing Transit #: | **026013576** |
| Account #: | **1504554445** |
| Lockbox # (if applicable): |  |
| Type of Account: | ☒ Checking ☐ Savings ☐ Lockbox |

---

**Please return the completed form to:**

Russell Schwertner<br> Vice President of Asset Operations<br> Priority Power Management LLC<br> rschwertner@prioritypower.net<br> 281-231-9129

## Exhibit 10.7

**Exhibit 10.7**

![](ex10-7_001.jpg)

**Energy Management and Consulting Services Agreement**

This Energy Management and Consulting Services Agreement ("Agreement") is entered into and effective as of the date of September 28, 2021, by and between **Celsius Core LLC** (hereafter "CELSIUS") and **Priority Power Management, LLC**, a Texas limited liability company (hereafter "PPM"), collectively the "Parties".

**Recitals**

**Whereas**, deregulation of the electric energy marketplace has placed greater responsibility upon energy buyers for managing use and costs; and

**Whereas,** PPM has been providing energy management and consulting services to industrial, commercial and other large-volume end-users such as CELSIUS since 2001; and

**Whereas,** CELSIUS seeks assistance from PPM in managing its energy use, costs and related matters, and in negotiating an electricity supply contract with a suitable Retail Electric Provider ("REP") licensed by the Public Utility Commission of Texas;

Now, **Therefore**, in consideration of the mutual covenants set forth herein and other good and valuable consideration, the Parties hereby agree that PPM shall be the exclusive provider of the services outlined herein on the terms and conditions set forth below:

**Terms and Conditions**

**1.**  **<u>Nature and Scope</u>.** CELSIUS hereby retains PPM as the exclusive provider of the energy management and consulting services set forth in
Attachment A (the "Primary Services") for the CELSIUS property listed on Attachment B (the "Facility"), as such
Attachment A may be updated from time to time pursuant to the terms hereof, for the Initial Term and any Renewal Terms, as those terms
are defined below. PPM agrees to provide the Primary Services set forth in Attachment A. CELSIUS and PPM may agree from time to time
for PPM to provide the Other Services to CELSIUS for the Facility as set forth in Attachment A (together with the Primary Services, the
"Services"). PPM assumes no responsibility for performance either by third party suppliers of goods and services to CELSIUS
("Supplier" or "Suppliers") or by CELSIUS under contracts or agreements, formal or informal, between CELSIUS
and its Suppliers and/or customers that do not operate under the direction of PPM. In its performance of the Services, PPM shall not
take title to any electricity.

**2.**  **<u>Term</u>.** This Agreement shall be effective as of
the date stated above and shall remain in force and effect until 60 months following the execution of an electricity supply contract,
or for the length of the electricity supply contract between CELSIUS and an REP, whichever is longer ("Initial Term"); provided
that PPM identified such REP pursuant to its performance of the Primary Services hereunder. Thereafter, without further action by the
Parties, this Agreement shall automatically renew at the end of the Initial Term for one year and thereafter for one-year terms on each
anniversary of the renewal date (each, a "Renewal Term") unless either Party give the other Party written notice at least
90 days prior to the expiration of the then applicable term of this Agreement. In addition, a non-breaching Party may terminate this
Agreement if the other Party breaches its obligations under this Agreement and fails to cure such breach within thirty (30) days after
receipt of notice from the non-breaching Party of the existence of a breach. Provided, however, termination of this Agreement shall not
affect the rights and responsibilities of the Parties under any electricity supply contract in effect, and the termination of this Agreement
shall not be effective until the electricity supply contract terminates or expires.

**3.**  **<u>Compensation</u>.** As compensation for providing the
Services, CELSIUS authorizes PPM to collect from CELSIUS's REP billing and collecting agent, as applicable, a monthly volumetric
fee equal to $0.001 per kWh of CELSIUS's electricity supply for the CELSIUS Facility for the duration of the term of the energy
supply contract. The fee paid to PPM shall be included in the REP's electricity supply contract with CELSIUS, and CELSIUS's
REP will remit the fee to PPM directly.

**4.**  **<u>Facility</u>.** The Facility initially covered under this Agreement is identified on Attachment
 B. Additional facilities may be added at a later date upon the mutual agreement of the Parties. Such additional facilities shall
 only be included in Attachment B only when there is an executed electricity supply contract between CELSIUS and a REP within the
 ERCOT market.

Priority Power Management, LLC Page 1 of 8

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**5.**  **<u>Authority and Exclusivity of PPM</u>.** CELSIUS expressly
authorizes PPM to act on its behalf with respect to the Primary Services at the Facility. CELSIUS agrees to provide a Letter of Limited
Agency on CELSIUS's letterhead, substantially in the form of Attachment C, instructing energy suppliers and or transmission distribution
service providers to provide necessary information to PPM that will be used in providing the Services. Notwithstanding anything to the
contrary, PPM is not authorized to enter into any agreements as agent on behalf of CELSIUS, unless and until CELSIUS has authorized PPM
to do so in written form, including but not limited to pursuant to e-mail. Commencing on the Effective Date and continuing during the
Initial Term and any Renewal Term, CELSIUS agrees that PPM shall have the sole and exclusive right to provide the Primary Services to
CELSIUS at the Facility. During the Initial Term and any Renewal Term, CELSIUS agrees that it (a) shall not directly or indirectly seek,
solicit, or accept any offers for nor contract with any third party (including but not limited to another broker or consultant) for the
provision of the Primary Services (or substantially similar services) to the Facility and that it (b) shall not directly or indirectly
perform the Primary Services (or substantially similar services) for itself by contracting with an REP or demand response service provider
for the CELSIUS Facility. Consideration for CELSIUS's agreement to grant PPM the exclusive right to contract for and provide the
Primary Services to CELSIUS during the Initial Term and any Renewal Term for the CELSIUS Facility are the significant resources expended
by PPM in conducting its investigation of the Sites and initial assessment of the suitability of the Sites for the CELSIUS Facility,
and the initial work to assist CELSIUS in moving forward with securing or developing a Site or Sites, as well as disclosure of such strategically
gained information which would otherwise be confidential.

**6.**  **<u>CELSIUS Responsibilities</u>** . CELSIUS shall have the
following responsibilities during the term of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Data and Errors</u>. CELSIUS shall use reasonable best
efforts to (i) upon PPM's reasonable advanced written request, provide timely and accurate data and information required for PPM
to provide the Services, (ii) review all output produced by PPM as a result of providing the Services, and (iii) notify PPM of any errors
in such input data or output. CELSIUS shall cooperate with PPM in good faith to address the resolution of errors, omissions or deficiencies,
and provide PPM the opportunity to correct the errors, omissions and deficiencies. Upon successful resolution of errors, omissions or
deficiencies, in the reasonable determination of Celsius, CELSIUS shall accept the output as completed.

&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Transactions with Suppliers.</u> CELSIUS shall retain
all legal and/or equitable rights and remedies available to it against any Supplier and/or customer. CELSIUS agrees to hold PPM harmless
and defend PPM from any claims or causes of action asserted by Suppliers arising from CELSIUS's transactions with such Suppliers
and/or customers.

&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Fees and Taxes.</u> CELSIUS shall be responsible for payment
of any electricity supply and any applicable transportation and distribution fees, and all taxes such as sales and use taxes assessed
upon the electricity as set forth in the applicable energy supply contract.

&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Management Action</u>. Upon reasonable request by PPM,
CELSIUS shall promptly provide management determinations, approvals, and other information and assistance reasonably required by PPM
to perform the Services.

&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Authorizations.</u> CELSIUS shall execute Attachment C,
Notice of Limited Agency, which provides PPM with the necessary authority to provide the Services.

**7.**  **<u>Notices</u>** . Except as otherwise expressly provided
for herein, all notices, requests or other communications required or permitted hereunder shall be in writing and shall be deemed to
have been given or made if delivered personally, by overnight delivery service, or by United States mail, return receipt requested, to
a Party at the following address, or at such other address as shall be specified in writing by a Party to the other Party in accordance
with the terms and conditions of this paragraph:

---

| | |
|:---|:---|
| If to PPM: | If to CELSIUS: |
| Priority Power Management, LLC | Celsius Core LLC |
| 2201 E. Lamar Blvd., Suite 275 | 221 River Street, 9<sup>th</sup> Floor |
| Arlington, TX 76006 | Hoboken, NJ, 07030 USA |
| Attn: John Bick, CCO | Attn: Patrick Holert |
| Email: jbick@prioritypower.com | Email: Patrick.holert@celsius.network |

---

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8. <u>INDEMNIFICATION, LIMITATION OF LIABILITY, AND DAMAGES</u>. IN ANY ACTION ARISING OUT OF THIS
 AGREEMENT, THE PARTIES AGREE THAT NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, INDIRECT, LOST PROFITS, OR
 EXEMPLARY DAMAGES. LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES. FURTHERMORE, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE
 LIABILITY OF EACH PARTY TO THE OTHER PARTY SHALL BE LIMITED IN AMOUNT AND SHALL NOT EXCEED THE COMPENSATION RECEIVED BY OR DUE TO
 PPM UNDER THIS AGREEMENT FOR THE TWELVE-MONTH PERIOD IMMEDIATELY PRIOR TO THE DATE ON WHICH THE CLAIM AROSE (ANNUALIZED FOR ANY
 PERIOD SHORTER THAN TWELVE MONTHS). THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT IS BETWEEN PARTIES OF EQUAL BARGAINING POWER AND
 THAT THE FOREGOING LIMITATION OF LIABILITY IS SUPPORTED BY LEGITIMATE COMMERCIAL REASONS.

**9.**  **<u>Force Majeure</u>.** The inability of either Party to
perform under this Agreement shall not be the basis of a claim for damages by either Party, or for breach of contract, when due to causes
or contingencies reasonably beyond the control of the non-performing Party; including strike, riot, sabotage, terrorism, civil disorder,
labor disputes, accidents, failure or fluctuations of power supply, lack of capacity of the local distribution company or transmission
provider and its equipment or power lines, or acts of nature such as flood, earthquake, tornado, storm, or lightning, but excluding extremes
of temperature alone. The Party suffering the force majeure shall notify promptly the other Party in writing of the particulars. With
the exception of labor disputes, and so far as possible, the force majeure shall be resolved with all reasonable dispatch.

**10.**  **<u>Assignment</u>.** This Agreement shall not be assigned
in whole or in part by PPM without the prior written consent of CELSIUS. In the event CELSIUS should sell, transfer, assign or convey
its operating rights to a property covered hereby, this Agreement shall be binding on the successor or assignee.

**11.**  **<u>Confidentiality</u>.** The
Parties shall hold all information, whether oral, written, electronic or otherwise, that each receives from the other (collectively,
"Confidential Information") in strict confidence, and use at least the same degree of care as it uses with respect to its
own confidential information to prevent the disclosure of such Confidential Information. The Parties shall not disclose the Confidential
Information to any person or entity except as necessary to perform obligations described in this Agreement. The Parties shall not provide
Confidential Information to any such person or entity until such person or entity agrees to abide by the terms of this Section.

**12.**  **<u>Applicable Law</u>.** This Agreement shall be performable
in the State of Texas, and shall be governed by and interpreted in accordance with the laws of the State of Texas. Venue for any cause
of action shall be in Tarrant County, Texas.

**13.**  **<u>Entire Agreement</u>.** This Agreement and all attachments
constitute the entire Agreement between the Parties hereto with respect to PPM's performance of the Services at the Facility. Any
amendment, addition or deletion to this Agreement must be in writing and executed by the Parties. This Agreement shall supersede any
prior oral discussions or terms and conditions contained on any form or document used in connection with the Services hereunder. All
implied or express warranties related to the Services are hereby disclaimed. Each Party affirms that it has read this Agreement in its
entirety and it agrees to the terms and conditions contained herein and to the wording of this Agreement, and any ambiguities shall not
be interpreted to the detriment of either Party merely by the fact that such Party is the author of the Agreement.

**14.**  **<u>Severability</u>** . If, any clause or provision of this
Agreement be held or ruled unenforceable or ineffective under the law, such a ruling will in no way affect the validity or the enforceability
of any other clause or provision contained herein.

**15.**  **<u>Authorized Representative</u>.** The person executing
this Agreement on behalf of each Party hereby represents that he/she is said Party's authorized representative and is fully authorized
and empowered to enter into this Agreement and that each Party has full authority to perform the terms and conditions hereof.

**16.**  **<u>Relationship of Parties</u>.** The relationship between
the Parties shall be limited to the performance of Services as set forth in this Agreement and shall not constitute a joint venture,
partnership or an employee-employer relationship. PPM is an independent contractor and shall be responsible for the means and methods
used in performing Services under this Agreement. Neither Party may obligate the other to any expense or liability outside of this Agreement
with respect to the Services, except upon written consent of the other or set forth in an additional agreement.

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In Witness Whereof, the Parties by their respective duly authorized representatives have executed this Agreement. This Agreement shall not become effective as to either Party until executed by both Parties.

---

| | | | |
|:---|:---|:---|:---|
| Priority Power Management, LLC | Priority Power Management, LLC | Celsius Core LLC | Celsius Core LLC |
| By: | /s/ Trent Stout | By: | /s/ Roni Cohen Pavon |
| Name: | Trent Stout | Name: | Roni Cohen Pavon |
| Title: | Senior Managing Director | Title: | Chief Revenue Officer |

---

Priority Power Management, LLC Page 4 of 8

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**Attachment A**

PPM will perform the following **Primary Services**:

**1.** Site Selection & Utility Interconnect

&nbsp;&nbsp;&nbsp;&nbsp;a) Identify potential additional sites that are within a deregulated
area of the ERCOT market and either currently have existing adequate electrical capacity from the utility or can be upgraded in a timely
manner to provide the capacity required.

&nbsp;&nbsp;&nbsp;&nbsp;b) Interface with the utility to assess the utility's
ability to provide adequate service in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;c) Submit electrical load forms, applications for service and
other information as may be required by the utility.

&nbsp;&nbsp;&nbsp;&nbsp;d) Negotiate utility interconnect agreement.

&nbsp;&nbsp;&nbsp;&nbsp;e) Advise CELSIUS on required easements or other matters as
may be required.

**2.** Data Collection and Analysis

&nbsp;&nbsp;&nbsp;&nbsp;a) Gather CELSIUS Facility lists, including supplier information,
account numbers, and service addresses;

&nbsp;&nbsp;&nbsp;&nbsp;b) Gather historical load data for each site;

&nbsp;&nbsp;&nbsp;&nbsp;c) Collect current contracts;

&nbsp;&nbsp;&nbsp;&nbsp;d) Determine whether CELSIUS has a preferred supplier;

&nbsp;&nbsp;&nbsp;&nbsp;e) Analyze and complete any missing or questionable load data,
including identification of demand ratchet and power factor penalty charges;

&nbsp;&nbsp;&nbsp;&nbsp;f) Prepare data for distribution to suppliers.

**3.** Strategy Assessment and Development

&nbsp;&nbsp;&nbsp;&nbsp;a) Assess the short term and long-term goals of CELSIUS;

&nbsp;&nbsp;&nbsp;&nbsp;b) Assess market conditions and develop strategy consistent
with CELSIUS goals;

&nbsp;&nbsp;&nbsp;&nbsp;c) Determine market liquidity and pricing environment;

&nbsp;&nbsp;&nbsp;&nbsp;d) Analyze various pricing structures and product mixes relative
to CELSIUS goals;

&nbsp;&nbsp;&nbsp;&nbsp;e) Gain consensus from CELSIUS on hedging strategy if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;f) Assist CELSIUS with the development of contract terms that
provide operational and incremental purchasing flexibility.

**4.** Procurement

&nbsp;&nbsp;&nbsp;&nbsp;a) Present pricing options to CELSIUS relative to CELSIUS'
guidance and strategy;

&nbsp;&nbsp;&nbsp;&nbsp;b) Prepare electricity Request for Proposals (RFP's) and
distribute to qualified suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;c) Include CELSIUS in group buying pools organized and managed
by PPM if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;d) Provide consistency in communicating RFP questions and answers
to all participating suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;e) Provide evaluation and analysis of all supplier bids and
present findings to CELSIUS;

&nbsp;&nbsp;&nbsp;&nbsp;f) Negotiate terms and conditions with appropriate supplier(s).

**5.** Contract Management

&nbsp;&nbsp;&nbsp;&nbsp;a) Monitor and verify accurate and timely switches of accounts
to new supplier;

&nbsp;&nbsp;&nbsp;&nbsp;b) Review supplier invoices to determine consistency with contract
terms;

&nbsp;&nbsp;&nbsp;&nbsp;c) Manage the addition and or deletion of CELSIUS accounts from
supplier contract;

&nbsp;&nbsp;&nbsp;&nbsp;d) Provide CELSIUS with Mark-to-Market valuations of supply
contracts in the event of a property disposition and or acquisition of a new property;

&nbsp;&nbsp;&nbsp;&nbsp;e) Assist CELSIUS with supplier issue resolution;

&nbsp;&nbsp;&nbsp;&nbsp;f) Provide CELSIUS with estimated annual budgets and or ongoing
performance metrics as needed.

**6.** Portfolio Management

&nbsp;&nbsp;&nbsp;&nbsp;a) Provide CELSIUS with market reports highlighting market events
and pricing levels on a periodic basis;

&nbsp;&nbsp;&nbsp;&nbsp;b) Provide CELSIUS with price discovery by querying market suppliers
regarding current market price;

&nbsp;&nbsp;&nbsp;&nbsp;c) Maintain a customized hedging position report for CELSIUS
outlining various purchases and risk positions, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;d) Perform market outlooking and forward price discovery to
meet CELSIUS-specific trigger levels;

&nbsp;&nbsp;&nbsp;&nbsp;e) Analyze "blend & extend" opportunities to
meet desired budget goals;

&nbsp;&nbsp;&nbsp;&nbsp;f) Adjust strategies as needed to meet changing CELSIUS goals
and market environment.

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**Other Services<sup>1</sup>**

From time to time, CELSIUS may request that PPM provide Other Services, including but not limited to the following:

1) Strategic Utility Planning Services:

&nbsp;&nbsp;&nbsp;&nbsp;a) Identification of power availability, utility service territory
boundaries, and utility contacts in geographic areas targeted for new CELSIUS sites;

&nbsp;&nbsp;&nbsp;&nbsp;b) Interface with utility to provide load estimates, project
timelines, line extension cost estimates, rates and tariff review, and necessary agreements for electric service.

2) Regulated Utility Negotiations

&nbsp;&nbsp;&nbsp;&nbsp;a) Negotiate with utility on behalf of CELSIUS, agreements for
electric service, line extensions, and or other agreements as necessary.

3) Regulated Rate Analysis and Negotiations

&nbsp;&nbsp;&nbsp;&nbsp;a) Analyze utility rates, tariffs, rider, and or service regulations
to determine estimated costs to CELSIUS;

&nbsp;&nbsp;&nbsp;&nbsp;b) Negotiate lowest cost rates and riders when applicable.

4) Regulatory Advisory Services

&nbsp;&nbsp;&nbsp;&nbsp;a) Advise CELSIUS on regulatory rules and services regulations
as may be applicable.

5) Field Project Manager Services

&nbsp;&nbsp;&nbsp;&nbsp;a) Act
as a single-point-of-contact in the field on behalf of CELSIUS with applicable utilities as it relates to new electrical service requests;

&nbsp;&nbsp;&nbsp;&nbsp;b) Coordination
of all aspects of provisioning for electrical service to new CELSIUS sites including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Receiving site location and service requirements from CELSIUS
personnel;

ii) Onsite field meetings with CELSIUS, electrical contractors and utility personnel to develop cost efficient and timely designs for electricity service to CELSIUS site locations;

iii) Coordination and administration of functions such as permit tracking, easements, establishing utility account numbers, applications for service, etc;

&nbsp;&nbsp;&nbsp;&nbsp;c) Develop, manage and distribute management reports of all
CELSIUS projects, desired electricity service dates, contrition dates, issues resolution, etc.

6) Power Studies

&nbsp;&nbsp;&nbsp;&nbsp;a) Power factor analysis and corrective measure solutions;

&nbsp;&nbsp;&nbsp;&nbsp;b) Power quality analysis;

&nbsp;&nbsp;&nbsp;&nbsp;c) Onsite, and or backup emergency, generation analysis;

&nbsp;&nbsp;&nbsp;&nbsp;d) Demand response programs cost benefit analysis.

PPM may perform Other Services as requested by CELSIUS on an ad hoc basis as a part of its fees as outlined herein Section 3, Compensation. However, should PPM's work associated with Other Services becomes a meaningful effort, PPM and CELSIUS may agree on additional compensation for the Other Services in a separate written agreement.

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**ATTACHMENT B**

---

| | | |
|:---|:---|:---|
| **Property Name** | **Address** | **City, St Zip** |

---

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**ATTACHMENT C**

September 28, 2021

**RE: NOTICE OF LIMITED AGENCY**

Dear Utility and/or Energy Service Provider,

<u>CELSIUS CORE LLC</u> (hereinafter referred to as "Principal"), with principal offices located at 221 River Street, 9<sup>th</sup> Floor, Hoboken, NJ, 07030 USA does hereby appoint Priority Power Management, LLC (hereinafter referred to as "Agent"), as the exclusive agent for the limited purpose of requesting and receiving any and all information concerning utility services, line extensions, electrical distribution designs, tariffs, rates, metering, historical usage and billing information, retail electricity pricing and contracting terms.

Furthermore, Agent is authorized to negotiate and enter into on behalf of Principal (subject to a separate written approval by Principal to enter into), any agreements for electric service with transmission and distribution service providers, and pricing and/or contracting for retail electric supply furnished to Principal, and negotiating such final pricing, conversion pricing and terms with suppliers on behalf of Principal.

All inquiries concerning the Principal's electricity requirements should be directed to the following

Person: Mr. Tyler Randolph

Senior Director, Business Development

Priority Power Management, LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) (214) 957-7032

trandolph@prioritypower.com

Thank you for your cooperation in providing information requested in a timely manner. This limited authorization letter shall become effective from the date on which it is executed and shall remain in full force and effect until terminated by Principal or Priority Power Management with at least 10 days written notice to the other party.

Best Regards,

CC: John Bick – Priority Power Management, LLC

Trent Stout – Priority Power Management, LLC

Tyler Randolph – Priority Power Management, LLC

Priority Power Management, LLC Page 8 of 8

## Exhibit 10.8

**Exhibit 10.8**

**Amendment to Energy Management and Consulting Services Agreement**

This Amendment (the "Amendment") dated August 2, 2022 (the "Effective Date"), is made and entered into by and between Celsius Mining LLC ("Customer") and Priority Power Management LLC ("PPM"), each sometimes referred to individually as a "Party" and collectively as the "Parties".

Whereas, Customer and PPM entered that one certain Energy Management and Consulting Services Agreement effective as of September 28, 2021 (the "Agreement"); and

Whereas, in accordance with the Agreement Customer has retained PPM as the exclusive provider of energy management and consulting services for the properties listed on Attachment B thereto (the "Facilities"); and

Whereas, the Parties wish to add certain properties to Attachment B as Facilities and to amend the compensation to be paid to PPM for the Primary Services.

Now Therefore, this Amendment sets forth the Parties' mutual agreement to amend the Agreement to memorialize the recitals set forth above. All capitalized terms herein used but not defined have the meanings set forth in the Agreement.

For good and valuable consideration and in exchange for the mutual promises and covenants made one to another, the Parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. As of the Effective Date of this Amendment, the Parties agree
to add the following properties as Facilities to Attachment B of the Agreement and for PPM to be the exclusive provider of Primary Services
to these Facilities:

---

| | | | |
|:---|:---|:---|:---|
| Property Name | Address | City, State, Zip | GPS Coordinates |
| Rebel | 15135 State Hwy 158 | Garden City, TX 79739 | 31.904523, -101.715488 |
| East Stiles | 7359 N FM 33 | Big Lake, TX 76932 | 31.559836, -101.479721 |
| Stiles | 13345 N State Highway 137 | Big Lake, TX 76932 | 31.925595, -102.210380 |
| Garden City | 6661 E. Hwy 158 | Garden City, TX 79739 | 31.863444, -101.469583 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As of the Effective Date, the Parties further agree to amend
"Section 3 Compensation" of the Agreement by deleting the provision in its entirety and replacing it as follows:

"3. Compensation. As compensation for providing the Services, CELSIUS authorizes PPM to collect from CELSIUS's REP or REP's billing and collecting agent, as applicable, a monthly volumetric fee equal to $0.002 per kWh of CELSIUS's electricity supply for the Facilities for the duration of the term of any energy supply contract for the Facilities. The fee paid to PPM shall be included in the REP's electricity supply contract(s) with CELSIUS, and CELSIUS's REP will remit the fee to PPM directly."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This Amendment is governed by, construed, and enforced in
accordance with the laws of the State of Texas without giving effect to any conflict of law principles that might otherwise be applicable.
Except as specifically amended herein, the terms and conditions of the Agreement shall remain in full force and effect as written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. This Amendment may be executed in several counterparts, each
of which will be deemed an original, and all of which taken together will constitute one single agreement between the Parties with the
same effect as if all the signatures were upon 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.

In Witness Whereof, the Parties, by their respective duly authorized representatives, execute, ratify and confirm this Amendment as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| Priority Power Management, LLC | Priority Power Management, LLC | Celsius Mining LLC | Celsius Mining LLC |
| By: | /s/ Trent Stout | By: | /s/ Amir Ayalon |
| Name: | Trent Stout | Name: | Amir Ayalon |
| Title: | Authorized Signatory | Title: | CEO |

---

## Exhibit 10.9

**Exhibit 10.9**

*Execution Version*

 

**ASSIGNMENT AND ASSUMPTION AGREEMENT**

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "<u>Agreement</u>") is entered into as of January 31, 2024, by and between Celsius Mining LLC, a Delaware limited liability company ("<u>Celsius Mining</u>"), Priority Power Management, LLC, a Delaware limited liability company ("<u>PPM</u>"), and Ionic Digital Inc., a Delaware company ("<u>MiningCo</u>"). Celsius Mining and PPM are each a "Party" and collectively the "Parties" to this Agreement.

**<u>RECITALS</u>**

**WHEREAS**, Celsius Mining and PPM are party to (i) that certain Letter of Intent with Terms and Conditions for Proposed Development of Sites for Virtual Currency Mining Facilities, dated December 22, 2021, for the development and energy management of the Rebel, East Stiles, and Stiles sites (as described therein) (the "<u>Rebel, East Stiles, and Stiles LOI</u>"), (ii) that certain Letter of Intent with Terms and Conditions for Proposed Development of Sites for Virtual Currency Mining Facilities, dated February 16, 2022, for the Garden City site (as described therein) (the "<u>Garden City LOI</u>"), (iii) that certain Amended Energy Management and Consulting Services Agreement, dated as of August 2, 2022 (the "<u>EMCSA</u>"), and (iv) that certain Energy Management Services Agreement, dated as of November 17, 2022 (the "<u>EMSA Agreement</u>," and together with the Rebel, East Stiles, and Stiles LOI, the Garden City LOI, and the EMCSA, each as may be amended, supplemented, or modified from time to time the "<u>Mining Agreements</u>"). The Mining Agreements are attached hereto as **<u>Exhibit A</u>**;

**WHEREAS**, on July 13, 2022, and December 7, 2022, as applicable, Celsius Mining LLC, a Delaware limited liability company and certain of its debtor affiliates (collectively, the "<u>Debtors</u>") commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532, as amended (the "<u>Bankruptcy Code</u>") in the United States Bankruptcy Court for the Southern District of New York (the "<u>Bankruptcy Court</u>");

**WHEREAS**, on September 27, 2023, the Debtors filed the *Modified Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* [Docket No. 3577] (as may be amended, supplemented, or otherwise modified from time to time, the "<u>Plan</u>");<sup>1</sup>

**WHEREAS**, on November 30, 2023, the Debtors filed the *Joint Motion of the Debtors and the Committee for Entry of an Order (I) Approving the Implementation of the MiningCo Transaction and (II) Granting Related Relief* [Docket No. 4050] (the "<u>MiningCo Motion</u>");

**WHEREAS**, on November 9, 2023, the Bankruptcy Court confirmed the *Modified Joint Chapter 11 Plan of Reorganization of Celsius Network LLC and Its Debtor Affiliates* [Docket No. 3972] (the "<u>Confirmation Order</u>"); and on December 27, 2023, the Bankruptcy Court entered an order approving the Wind Down Motion [Docket No. 4171] (the "<u>MiningCo Order</u>");

<sup>1</sup> Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in *Modified Joint Chapter 11 Plan of Celsius Network LLC and its Debtor Affiliates* (the "<u>Plan</u>"), attached as <u>Exhibit A</u> to the *Finding of Fact, Conclusions of Law, and Order Confirming the Modified Joint Chapter 11 Plan of Celsius Network LLC and its Debtor Affiliates* (the "<u>Confirmation Order</u>") [Docket No. 3972].

**WHEREAS**, as part of implementing the Restructuring Transactions, on the Effective Date of the Plan, the Debtors will transfer the Mining Assets to Ionic Digital Inc., a Delaware limited liability company, and/or its designated assignee affiliates under the Plan ("<u>MiningCo</u>"), and such transfer shall constitute a legal, valid, binding, and effective sale of the Mining Assets and shall vest MiningCo with title to the Mining Assets;

**WHEREAS**, Celsius Mining and PPM, seek to amend and modify the Mining Agreements as part of Celsius's chapter 11 plan of reorganization and the establishment of MiningCo; and

**WHEREAS**, as part of implementing the Restructuring Transactions, Celsius Mining, desires to sell, transfer, assign, convey, and deliver to MiningCo, all of Celsius Mining's right, title, and interest in, to and under the Mining Agreements on the Effective Date as set forth herein.

**NOW, THEREFORE**, in consideration of the foregoing and the mutual representations, warranties, covenants, and agreements set forth herein, and intending to be legally bound hereby, Celsius Mining and PPM hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan or the Mining Agreements, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Assignment and Assumption</u>. Pursuant to the Plan, on the Effective Date, Celsius Mining will transfer, assign, convey, and deliver to MiningCo all of Celsius Mining's right, title and interest in and to the Mining Agreements, free and clear of any and all liens and encumbrances. For the avoidance of doubt, MiningCo, as the assignee of the Mining Agreements, shall have no obligation to pay or assume any cure obligation in connection with the assumption and assignment of the Mining Agreements; *provided* that MiningCo shall assume all go-forward rights and obligations on the Effective Date. Notwithstanding anything to the contrary in this Agreement, the Parties acknowledge and agree that, except as explicitly set forth herein (a) each of Celsius Mining and MiningCo reserves all of its rights under the Plan, and (b) this Agreement shall not prejudice any rights of the Debtors or MiningCo under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Amended Agreement</u>. Subject to and in accordance with the Debtors' and MiningCo's rights under the Plan (including without limitation, Article IV and Article V thereof), Celsius Mining and PPM hereby agree to amend the Mining Agreements on the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) PPM shall transfer and assign title to the land for each of
the Garden City site (the " <u>Garden City</u> ") and East Stiles site (" <u>East Stiles</u> ") to MiningCo (or its
subsidiary designees) on the Effective Date in substantially the form attached hereto as  **<u>Exhibit B</u>** , which shall include
a special warranty of title from PPM and its affiliates, and which each Party shall execute on the Effective Date in the form necessary
for recording in the real property records of the county in which each of Garden City and East Stiles is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) PPM shall hereby immediately assign all of its right, title,
and interest, subject only to any consent required from Oncor Electric Delivery Company LLC (" <u>Oncor</u> ") (or cause the
transfer and assignment) of the Facilities Extension Agreements (each, an " <u>FEA</u> " and collectively the " <u>FEAs</u> ")
currently in effect between PPM and Oncor for each of the Rebel site (" <u>Rebel</u> "),
the Stiles site (" <u>Stiles</u> "), East Stiles and Garden City, in each case reflecting Oncor's Primary-Substation Delivery
Tariff, commonly referred to as a "one-span" rate, to MiningCo (or its subsidiary designees) as soon as possible following
the Effective Date and in no event later than thirty (30) days following the Effective Date; to the extent that any consent of Oncor is
required in order to avoid a breach or termination of such FEAs, PPM agrees from the date hereof to use commercially reasonable best efforts
to obtain Oncor consent to such transfer and assignment. PPM shall continuously collaborate with MiningCo in obtaining such consent, and
shall promptly notify MiningCo of any discussions or correspondence with Oncor related thereto until such consent is obtained. As of the
date hereof, PPM represents and warrants that it has disclosed to MiningCo (i) all agreements with Oncor related to the subject matter
herein (including all FEAs) and (ii) all correspondence with Oncor or its affiliates related thereto. Pending receipt of fully executed,
effective and consented to FEAs, PPM agrees that it shall cooperate in making available all benefits of such FEAs to MiningCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) PPM
shall for the duration of the EMSA and EMCSA, and while Celsius Mining (and subsequently MiningCo) is not in continuing uncured payment
default thereunder, grant Celsius Mining (and subsequently MiningCo) sub-easements relating to the delivery of power at the Garden City,
Rebel, East Stiles, and Stiles sites in the form attached hereto as  **<u>Exhibit D</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) PPM
shall within five business days of the Effective Date assign the master easements held by PPM relating to delivery of power at the Garden
City, Rebel, East Stiles, and Stiles sites ("Master Easements") to MiningCo (or its subsidiary designees), substantially in
the form attached hereto as  **<u>Exhibit E</u>** (or such other form in which such easements are currently held by PPM), subject to
there being no continuing uncured payment default under the EMSA and the EMCSA by Celsius and MiningCo, as applicable; *provided* that
if at the time of expiration, Celsius Mining (or MiningCo or any transferee permitted under such agreements) is in payment default of
the EMSA and/or the EMCSA, PPM shall retain title to the Master Easements until such time as such payment obligations under the EMSA and
EMCSA have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Celsius Mining shall promptly pay the outstanding balance of $271,132.62 (except to the extent that such
amount has been previously satisfied by Celsius through payments or offsets benefitting PPM) under the Mining Agreements in full and final
settlement of all disputed amounts thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) The payment due date of the East Stiles Phase 2A and 2B development fees is modified to the date that
the FEA in respect of the Phase 2 expansion capacity for East Stiles of up to 10 MW for Phase 2A and 20 MW for Phase 2B is delivered to
MiningCo, and the fee invoiced shall be $850,000 for Phase 2A and $1,700,000 for Phase 2B (or if a lesser capacity, calculated at a rate
of $85,000 per megawatt actually permitted (" <u>MW</u> ")); *provided* that (i) the payment due date shall occur no earlier
than the date that is six months prior to the capacity availability date communicated by Oncor in writing, upon
delivery of the applicable executable FEA to MiningCo (A) in a form on or better than industry standard, (B) reflecting Oncor's
Primary-Substation Delivery Tariff, commonly referred to as a "one-span" rate, and (C) executed by Oncor and only requiring
MiningCo's execution prior to it becoming effective, where MiningCo is afforded reasonable time, not to be less than fifteen (15)
business days, to review and execute such documentation; (ii) the payment(s) shall be made into escrow and shall not be released to PPM
until such the expansion power capacity is available to be energized;and (iii) the payment(s) shall be refunded to MiningCo if either
(A) Oncor communicates that such expansion power capacity will no longer be available, or (B) such expansion power capacity is not is
available to be energized prior to July 31, 2027. In order to be entitled to the release of the payment(s) held by the escrow agent under
the foregoing sentence, MiningCo must take commercially reasonable steps to achieve the energization of such expansion power capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) With
respect to the Rebel Phase 2 development fee, (i) the Parties shall modify the payment due date to the later of (A) December 31, 2024
or (B) the date that the FEA in respect of the Phase 2 expansion capacity for Rebel of up to 25 MW is delivered to Celsius Mining and
the fee invoiced for $2,125,000 (or if a lesser capacity, calculated at a rate of $85,000 per/MW megawatt); *provided* that in no
event shall the payment due date occur earlier than the date that is six months prior to the capacity availability date communicated
by Oncor in writing upon delivery of the executable Facilities Extension Agreement to MiningCo (A) in a form on or better than industry
standard, (B) reflecting Oncor's Primary-Substation Delivery Tariff, commonly referred to as a "one-span" rate, and
(C) executed by Oncor and only requiring MiningCo's execution prior to it becoming effective, where MiningCo is afforded reasonable
time, not to be less than fifteen (15) business days, to review and execute such documentation; (ii) the payment shall be made into escrow
and shall not be released to PPM until such expansion power capacity is available to be energized; and (iii) the payment shall be refunded
to MiningCo if either (A) Oncor communicates that such expansion power capacity will no longer be available, or (B) such expansion power
capacity is not is available to be energized prior to July 31, 2027. In order to be entitled to the release of the payment(s) held by
the escrow agent under the foregoing sentence, MiningCo must take commercially reasonable steps to achieve the energization of such expansion
power capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Assumption of Liabilities:</u> The parties represent and warrant that MiningCo will not be obligated to pay or assume any cure amounts or other amounts relating to or arising from or during the period prior to the Effective Date with respect to the Mining Agreements. Without limiting the foregoing, after the Mining Agreements are assumed and assigned to MiningCo, MiningCo shall be solely obligated to perform obligations that arise after the Effective Date. Furthermore, except as expressly provided herein, no other agreements by and among Celsius Mining and PPM shall be assumed or assumed and assigned pursuant to this Agreement. Nothing herein is intended or shall be construed as being inconsistent with the Plan (including the Plan Supplement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Release of Claims</u>. Upon the valid assignment and delivery by PPM to MiningCo of (a) each of Garden City and East Stiles, and (b) each of the FEAs, Master Easements and sub- easements detailed above, each of the Parties shall unequivocally, fully, irrevocably, and forever release and forever discharge the other Party and its affiliates, of and from any and all claims, known and unknown, asserted or unasserted, including but not limited to any breaches or defaults, arising under or related to the Mining Agreements and that arose prior to such assignment and delivery. PPM further agrees and covenants not to sue or otherwise assert against MiningCo any claim arising from or relating to any act, omission, or occurrence prior to the Effective Date, whether known or unknown, that arises under or relates to the Mining Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Governing Law</u>. THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. Each Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement in the Bankruptcy Court, and solely in connection with claims arising under this Agreement: (a) irrevocably submits to the exclusive jurisdiction of the Bankruptcy Court; (b) waives any objection to laying venue in any such action or proceeding in the Bankruptcy Court; and (c) waives any objection that the Bankruptcy Court is an inconvenient forum or do not have jurisdiction over any Party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies</u>. PPM agrees and acknowledges that irreparable damage would occur in the event of a breach of this Agreement by PPM and remedies at law would not be adequate to compensate Celsius Mining or MiningCo. Accordingly, PPM agrees that Celsius Mining or MiningCo shall have the right, in addition to any other rights and remedies existing in its favor, to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce its rights and obligations hereunder not only by an action or actions for damages but also by an action or actions for specific performance, injunctive relief, and/or other equitable relief. The right to equitable relief, including specific performance or injunctive relief, shall exist notwithstanding, and shall not be limited by, any other provision of this Agreement. PPM hereby waives any defense that a remedy at law is adequate and any requirement to post bond or other security in connection with actions instituted for injunctive relief, specific performance, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Severability</u>. It is the desire and intent of the Parties that the provisions of this Agreement be enforced to the fullest extent permissible under the Laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Modifications</u>. This Agreement may be amended by the Parties only by an instrument in writing. No course of dealing between or among the parties hereto shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any such party or such holder under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Successors and Assigns</u>. This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors and permitted assigns, as applicable. There are no third-party beneficiaries under this Agreement, and the rights or obligations of any Party under this Agreement may not be assigned, delegated, or transferred to any other person or entity without the prior written consent of the other Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Execution of Agreement</u>. This Agreement may be executed in counterparts (including by means of email in .pdf format), each of which shall be deemed an original, and all of which together shall constitute one and the same instrument, and shall become effective when two or more such counterparts have been signed by each of the parties hereto and delivered to the other party (it being understood that all parties need not sign the same counterpart).

[*Remainder of page intentionally left blank*]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

---

| | |
|:---|:---|
| **CELSIUS MINING LLC** | **CELSIUS MINING LLC** |
| By: | /s/ Christopher Ferraro |
| Name: | Christopher Ferraro |
| Title: | Authorized Signatory |

---

[Signature Page to Assignment and Assumption Agreement]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

---

| | |
|:---|:---|
| **Ionic Digital Inc.** | **Ionic Digital Inc.** |
| By: | /s/ Matt Prusak |
| Name: | Matt Prusak |
| Title: | CEO |

---

[Signature Page to Bill of Sale, Assignment and Assumption Agreement]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

---

| | |
|:---|:---|
| **Priority Power Management, LLC** | **Priority Power Management, LLC** |
| By: | /s/ Trent Stout |
| Name: | Trent Stout |
| Title: | Chief Commercial Officer |

---

[Signature Page to Assignment and Assumption Agreement]

**<u>Exhibit A</u>**

 **Mining Agreements**

Attached.

**<u>Exhibit B</u>**

**Form of Assignment and Bill of Sale**

<u>Attached.</u>

**<u>Exhibit C</u>**

**Form of FEA Assignment Agreement**

To come.

**<u>Exhibit D</u>**

**Form of Sub-easement Agreement**

To come.

**<u>Exhibit E</u>**

**Form of Master Easements Assignment Agreement**

To come.

## Exhibit 10.10

**Exhibit 10.10**

**PERSONAL AND CONFIDENTIAL**

![](ex10-10_001.jpg)

**2332 Galiano Street, 2<sup>nd</sup> Floor <br> Coral Gables, FL 33134**

 ****

December 9, 2024

Mr. Anthony McKiernan

Address on file with the Company

Re: Offer Letter

Dear Anthony,

We are thrilled to extend to you a formal offer of employment at Ionic Digital Services, LLC (the "**Company**"), a wholly owned indirect subsidiary of Ionic Digital Inc. (together with its subsidiaries as appropriate in the context, "**Ionic**") in the position of Chief Executive Officer ("**CEO**") of Ionic. Ionic is a pioneering force in the bitcoin mining industry. Your expertise and background have impressed us, and we are excited about the potential you bring to our team. In this position, you will be expected to devote your full time, attention and energies to the performance of your duties with Ionic. This letter contains the terms and conditions of our offer of employment to you.

**Start Date and Location**

Your expected start date will be December 13, 2024 (the "**Start Date**"). Ionic shall permit you to work remotely from your home office in Connecticut, although you understand and agree that you will travel as required to perform your duties as CEO.

**Position and Reporting Structure**

As CEO, you will play an important role in our future growth. On your Start Date, you will report directly to Ionic's Board of Directors (the "**Board**").

**Compensation**

<u>Base Salary</u>

Your annualized base salary on your Start Date will be $500,000. Your base salary will be payable in accordance with the Company's standard payroll policies (subject to normal required withholding). Any partial periods will be pro-rated based on the actual number of days worked in the month. Your position is classified as a salaried, exempt position and as such, you are not eligible to receive overtime compensation.

<u>Annual Incentive Bonus</u>

For each calendar year of your employment with the Company, beginning with the calendar year 2025 you will be eligible to earn a discretionary incentive bonus for each such calendar year payable, in the Board's sole determination, in cash or immediately vested shares of Ionic common stock (which may not be freely tradeable at the time of issuance) or a combination thereof, with a target bonus opportunity of 100% of your base salary. Any such bonus, if earned and approved by the Board, is paid annually, typically within sixty (60) calendar days after December 31 of the applicable year, subject to your still being an active employee in good standing with the Company in your current position on the date of payment or issuance (except as otherwise expressly set forth in this letter). The milestone(s) required for you to earn such a bonus will be as mutually determined by you and the Board and may include Ionic, department or personal milestone(s) or any combination thereof. For the avoidance of doubt, the milestone(s) to be determined by you and the Board can change from year to year, and there is no guarantee that the target will be reached in any year. All bonus payouts are subject to the discretion and approval of the Board. For calendar year 2024, you will be eligible to earn an annual incentive bonus to be prorated for the portion of the year during which you were employed and determined in the Board's sole discretion. In the event of a bonus payment in shares of Ionic common stock, a portion of your bonus (not less than the amount necessary to cover the withholding obligations on the entire bonus) will still be paid to you in cash.

<u>LTIP Participation</u>

The Company intends to establish a Long-Term Incentive Plan for senior executives of the Company (including you). However, these plans will only become effective upon the completion of both (a) the U.S. Securities and Exchange Commission informs the Company in writing that its Form S-1 (Registration Statement under the Securities Act of 1933) has become effective, and (b) the New York Stock Exchange or the NASDAQ have commenced trading of the common stock of the Company (such date, the "Completion Date"). When the Company implements a LTIP, you will be eligible to participate.

**Benefits and Withholding**

During your employment, you will be eligible to participate in the Company's health plans and other fringe benefit plans that the Company from time to time provides to employees of the Company at your level. All forms of compensation paid to you as an employee of the Company will be less all applicable withholdings, as determined by the Company.

**At-Will Employment**

Your employment with the Company is "at-will", meaning either you or the Company can terminate the employment relationship at any time, with or without cause or notice. No terms or conditions of your employment, including without limitation this at-will relationship, can be modified or changed verbally in any manner and may only be changed by an express written agreement signed by you and authorized executive officer of the Company.

**Contingencies**

This offer is contingent upon a standard background check and your ability to confirm eligibility for employment in the United States. A list of acceptable documents is available on request or can be found at <u>http://www.uscis.gov/files/form/i-9.pdf</u>. Additionally, your acceptance of this offer, and your continued employment with the Company (including any right to receive any payments or benefits hereunder), are expressly conditioned on your agreement to comply and your ongoing compliance with all Company and Ionic policies and procedures and your entering into Company standard confidentiality, intellectual property and restrictive covenant agreements, as applicable.

**Governing Law**

This letter shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof.

**Miscellaneous**

This constitutes the entire agreement between the parties and supersedes all other agreements or understandings (provided that any confidentiality agreements or requirements to which you are subject, by contract or under applicable law, will remain in full force and effect). You may not assign this letter without the Board's prior express written consent. This letter may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this letter delivered by facsimile, email, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this letter.

**SPECIAL NOTE**

Please be advised that the Company respects, and expects your ongoing compliance with, any and all obligations you have with your current and prior employers regarding protected information you may have acquired during your employment with them. It is not our intention to acquire any trade secrets or confidential information from you. The Company understands your continuing obligations and encourages you to understand fully what measures you must take to ensure that no inadvertent misappropriation or prohibited disclosure occurs if you elect to accept this offer of employment with the Company. By accepting this offer of employment, you confirm that you fully understand the duties and responsibilities of the position offered to you, and you confirm that you can perform them without using or disclosing confidential or proprietary information of another party and without violating the terms of any other applicable agreement.

**[Signature Page Follows]**

We are confident that your contributions will be instrumental in driving the Company towards its strategic goals. We look forward to you joining our team and embarking on this exciting journey together. Should you have any questions or require further clarification, please do not hesitate to reach out to me directly at claritasadvisors@gmail.com.

Please indicate your acceptance of this offer by signing and dating below and returning this letter to me as soon as possible. In addition, I would appreciate a call from you informing me of your decision as well.

Sincerely,

---

| | |
|:---|:---|
| By: | /s/ Elizabeth LaPuma |
|  | **Elizabeth LaPuma** |
|  | Chair of the Board |

---

**Offer Letter Acceptance**

I have read, and hereby acknowledge, accept and agree to the terms stated in, this letter as of the date first set forth above.

/s/ Anthony McKiernan

Anthony McKiernan

Date: 2024-12-09

## Exhibit 10.11

**Exhibit 10.11**

![](ex10-12_001.jpg)

**ORDER FORM**

---

| | |
|:---|:---|
| **Anchorage Contact** | **Client Contact** |
| Name: Ryan Porter | Name: Joel Block |
| Email: ryan.porter@anchorlabs.com | Email: joel@ionicdigital.io |

---

This MASTER CUSTODY SERVICE AGREEMENT ("**Agreement**") is made and entered into as of the Effective Date provided herein, by and between Anchorage Digital Bank N.A. ("**Anchorage**"), and each Client as provided herein (each a "**Client**") (collectively, Anchorage and Client, each a "**Party**" and collectively, the "**Parties**").

The Agreement consists of the terms in this Order Form and the Standard Terms and Conditions attached hereto.

---

| | |
|:---|:---|
| **1. Effective Date:** | 1/26/2024 \| 6:00 PM PST |
| **2. Initial Term:** | One (1) year |
| **3. Renewal Term:** | One (1) year |
| **4. Client(s).** Each "Client" listed herein is subject to the Agreement as if this Agreement were between such individual Client and Anchorage, except specifically the Fees will be calculated on an aggregated basis, including the sum of all Clients' Assets Under Custody. | **4. Client(s).** Each "Client" listed herein is subject to the Agreement as if this Agreement were between such individual Client and Anchorage, except specifically the Fees will be calculated on an aggregated basis, including the sum of all Clients' Assets Under Custody. |
|  | Ionic Digital Treasury Inc., a Delaware corporation |

---

&nbsp;&nbsp;&nbsp;&nbsp;5. FEES

In full consideration for Anchorage's provision of the Services described herein, Client will pay Anchorage the following fees ("**Fees**"). Fees will commence the earlier of: (a) on the first date that any Digital Assets are deposited into any Client Account, and (b) ninety (90) days after Effective Date of this Agreement ("**Fees Commencement Date**").

Changes to the Services, including the inclusion of new assets or Clients, are subject to changes in Fees. Fees shall be invoiced by Anchorage, and paid by Client, in US Dollars ("**USD**").

---

| | |
|:---|:---|
| Page **1** of **33** |  |
|  | Confidential & Proprietary |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**FEE TYPE** | **AUC TIER (graduated basis)** | **Annual Basis Points** |
| &nbsp;&nbsp; <br> **Monthly Custody Fee** | <br>Greater than $0 | <br>15 |
| <br> **Monthly NFT Custody Fee** | **NFT AUC** | **Annual Basis Points** |
| <br> **Monthly NFT Custody Fee** | Greater than $0. | 90 |
| **One-Time Onboarding Fee** | <br> $0 | <br> $0 |
| **Monthly Minimum Fee** | <br> $0 | <br> $0 |
| <br> **On-Chain Services** | <br> Varies based on service. | <br> Varies based on service. |

---

**Client shall pay a Fee** which shall be the greater of i) Monthly Custody Fee + Monthly NFT Custody Fee, or ii) Monthly Minimum Fee.

&nbsp;&nbsp;&nbsp;&nbsp;6. Address for Notices:

---

| | |
|:---|:---|
| **To Client(s):** | **Invoice Email:** joel@ionicdigital.com |
|  | **Notice Email:** joel@ionicdigital.com |
|  | **Attention:** Ionic Digital Treasury Inc. |
|  | 2332 Galiano Street, 2nd Floor |
|  | Coral Gables, FL 33134 |
| **To Anchorage:** | legal@anchorage.com AND |
|  | custodyexecutive@anchorage.com |
|  | Anchorage Digital Bank N.A. |
|  | 101 S. Reid Street, Suite 329 |
|  | Sioux Falls, South Dakota 57103 |

---

IN CONSIDERATION AND WITNESS WHEREOF, Anchorage and Client, by their duly authorized representatives, hereby execute this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **ANCHORAGE DIGITAL BANK N.A.** | **ANCHORAGE DIGITAL BANK N.A.** | **ON BEHALF OF EACH CLIENT HEREIN** | **ON BEHALF OF EACH CLIENT HEREIN** |
| By: | /s/ Rachel Anderika | By: | /s/ Joel Block, CFO |
| Name: | Rachel Anderika | Name: | Joel Block |
| Title: | Bank COO | Title: | CFO |
|  |  | Company: Ionic Digital Treasury Inc. | Company: Ionic Digital Treasury Inc. |

---

---

| | |
|:---|:---|
| Page **2** of **33** |  |
|  | Confidential & Proprietary |

---

**AFFILIATED BUSINESS DISCLOSURE <br> AND CONFLICT OF INTEREST WAIVER**

Anchorage Digital Bank N.A. is affiliated with Anchor Labs, Inc., Anchorage Hold LLC, and Anchorage Lending CA, LLC (each an "**Anchorage Affiliate**"), through common ownership and management. In particular, Anchor Labs, Inc. provides certain administrative, technology, marketing, and other support services for custodial accounts on behalf of Anchorage Digital Bank. Because the two companies are under common ownership and management, the owners of Anchor Labs, Inc. will receive an indirect benefit from any fees you pay to Anchorage Digital Bank. In addition, Anchorage Digital Bank and Anchorage Affiliates may also refer clients to each other for the performance of services offered by such companies. Your use of services of Anchorage Digital Bank may result in benefits from such referral to the other companies by virtue of the companies' common ownership and management.

<u>ACKNOWLEDGEMENT</u>

I, duly authorized and on behalf of each Client as set forth in the Order Form, have read this disclosure form, and I acknowledge and understand that Anchorage Digital Bank and Anchorage Affiliates are under common ownership and control. I further acknowledge and understand that by retaining Anchorage Digital Bank, I am providing an indirect financial benefit to the owners of Anchorage Affiliates. Understanding the common ownership and control of the companies, I agree to utilize the services of Anchorage Digital Bank freely and with no influence from anyone. I also understand and agree that referrals for services among Anchorage Digital Bank and Anchorage Affiliates may result in the owners of the referring company receiving an indirect financial benefit from the services provided.

---

| | |
|:---|:---|
| **ON BEHALF OF EACH CLIENT SET FORTH HERETO** | **ON BEHALF OF EACH CLIENT SET FORTH HERETO** |
| By: | /s/ Joel Block, CFO |
| Name: | Joel Block |
| Title: | CFO |
| Company: Ionic Digital Treasury Inc. | Company: Ionic Digital Treasury Inc. |

---

---

| | |
|:---|:---|
| Page **3** of **33** |  |
|  | Confidential & Proprietary |

---

**ANCHORAGE DIGITAL BANK <br> STANDARD TERMS AND CONDITIONS**

*Capitalized terms not defined in the Order Form, body of these Terms and Conditions, or supporting Schedules are defined in Schedule A (Definitions).*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Anchorage Appointment and Provision of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Appointment</u>.
 Client appoints Anchorage to provide the Services, including acting as custodian of Client
 Digital Assets pursuant to this Agreement, and Anchorage hereby accepts such appointment.
 The Parties agree that for purposes of this Agreement, SDCL shall apply to this Agreement,
 including exemption from the list of liability for an "excluded fiduciary" under
 SDCL 55-1B-2(1) through (5). Anchorage is a qualified custodian as defined under Investment
 Advisers Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Provision of the Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to (i) Client's successful completion of the account acceptance process as provided in Section
2.1, and (ii) provided that Client is in compliance with this Agreement, during the Term, Anchorage will provide the Services to Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anchorage will, in its sole discretion, determine the requirements for any Direction, including Authenticated
Instructions, and whether such requirements have been satisfied as to any Direction. Anchorage is entitled to rely upon information, data,
and instructions from Client (or otherwise persons or parties authorized to act on its behalf) related to a Direction in all respects.
Client acknowledges that (i) Anchorage's acceptance of Directions related to Client's deposit and withdrawal of assets is
based on the parameters of Authenticated Instructions and in accordance with Anchorage's Services requirements; and (ii) Anchorage
has no duty to inquire into or investigate the legality, validity, or accuracy of any information, data, or instructions related to a
Direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Services are available only in connection with those Digital Assets and protocols that Anchorage,
in its sole discretion, supports. The type and scope of Services that Anchorage supports for each Digital Asset, and applicable Fees for
such Services, may differ. Under no circumstances should Client attempt to use the Services to store, send, request, or receive Digital
Assets and protocols that Anchorage does not support. Client shall have access to a list of Digital Assets that Anchorage supports in
the Anchorage Application. Anchorage assumes no responsibility in connection with any attempt to use any Account or Vault with Digital
Assets that Anchorage does not support, and any such unsupported Digital Assets deposited to or received in any Account or Vault are subject
to forfeiture and loss. The Digital Assets that Anchorage supports may change from time to time, based on Anchorage's sole and absolute
discretion. Anchorage will notify Client as soon as reasonably practicable in advance if it ceases to support a particular Digital Asset
for which Anchorage has provided Services to Client.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Client acknowledges that Anchorage will not monitor Digital Assets for actions taken by the issuer of
such Digital Asset, if any. Such actions may include an issuer instruction requiring the holder of a Digital Asset to transfer it to a
certain location. For the avoidance of doubt, Client is solely responsible for satisfying or responding to any such actions of an issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Unless acting in accordance with Section 1.2(f), (g), (j) or (k), Anchorage shall only follow the Directions
from Client. Anchorage is released and held harmless by Client for following the Directions from the Client, Client Service Providers,
Control Parties, or Token Issuer, when acting in accordance with any Client Service Provider Agreement, Control Agreement, or Vesting
Schedule as the case may be except to the extent of Anchorage's Bad Acts (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event Client enters into any of the following agreements
 (any such agreement, a "**Client Service Provider Agreement** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) A brokerage services agreement with Anchorage Hold, LLC ()"**Trader** "), under which Client
appoints Trader to act as Client's agent to issue Directions to Anchorage for the transfer of Client's Digital Assets or fiat
currency to an Account or Vault in the name of, and solely controlled by, Trader or its affiliates, for the purpose of trading, clearing,
settling, netting, accounting for, and providing other services in connection with, Client's Digital Assets or fiat currency;

ii) A lending agreement, a loan agreement and security agreement, or other similar agreement, regardless of how titled, with Anchorage Lending CA, LLC ("**Lending**"), under which Client appoints Lending to act as Client's agent to issue Directions to Anchorage for the transfer of Client's Digital Assets or fiat currency to or from an Account or Vault in the name of, and solely controlled by, Lending or its affiliates, or an omnibus account held for Client's benefit, for the purpose of (i) advancing Client's Digital Assets or fiat currency to Lending; or (ii) borrowing Digital Assets or fiat currency from Lending and providing collateral in connection therewith; or

iii) An agency appointment with any other party, under which Client appoints such Third Party ("**Agent**") to act as Client's agent to issue Directions to Anchorage for any purpose set forth in the appointment; then, in each applicable case, Client shall promptly notify Anchorage in writing of any such agency appointment using a form of notice acceptable to Anchorage. Where Client has duly appointed any of Trader, Lending or Agent (each, a "**Client Service Provider**") as its agent pursuant to the foregoing agreements or a Control Agreement (each a Client Service Provider Agreement), Client directs Anchorage to follow, and Anchorage shall follow, any Direction initiated by a Client Service Provider related to Digital Assets or Fiat Services as if initiated directly by the Client provided that such Directions followed by Anchorage shall be limited to those contemplated by a Client Service Provider Agreement or otherwise agreed between Client Service Provider and Anchorage, including, without limitation, through an Authenticated Instruction by a Client Service Provider on Client's behalf.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event Client enters into an account control agreement, vault control agreement, or other similar
agreement (regardless of how titled, a "**Control Agreement**") with Anchorage, a lender (a "**Control Party** ")
and any other parties (each, an "**Ancillary Party** "), under which Client directs Anchorage to follow such Control Party's
instructions as described therein, Client directs Anchorage to follow, and Anchorage shall follow, any Direction initiated by such Control
Party related to Digital Assets or Fiat Services as if initiated directly by the Client. Directions of a Control Party or Ancillary Party
may be initiated by any method contemplated by a Control Agreement or otherwise agreed between a Control Party, Ancillary Party and Anchorage,
including, without limitation, through an Authenticated Instruction by a Control Party on Client's behalf or Ancillary Party on
Client's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) From time to time, Anchorage may, in its sole discretion, offer Client additional optional services involving
settlement services ()"**Optional Settlement Services** "). Client may elect to accept Optional Settlement Services by signing
the Settlement Services Addendum attached to this Agreement, or by accepting such services in the Anchorage Platform if offered therein.
In the event Client accepts Optional Settlement Services, Client agrees to comply with all terms and conditions set forth under the Settlement
Services Addendum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Client agrees that Client is solely responsible for any gas or network fees necessary for the transfer
of Digital Assets pursuant to Client Directions. To the extent a Client's Digital Assets are unable to be transferred out of the
Account due to insufficient gas or network fees necessary for the transfer, Client agrees to promptly deposit additional Digital Assets
to permit such transfer; if Client does not promptly deposit additional Digital Assets to permit such transfer, the Direction to transfer
such Digital Assets shall be deemed canceled and void. Anchorage shall not be liable for paying any gas or network fees on behalf of Client,
unless otherwise agreed in writing between the parties, and shall not be liable for any canceled Directions due to insufficient gas or
network fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Vesting Schedules</u>. By custodying Digital Assets from validators, protocols, or token issuers
 (each a "**Token Issuer**") with a Vesting Schedule ()"**Restricted Assets**") with Anchorage, Client
 agrees that Restricted Assets may be subject to the applicable Vesting Schedule imposed by the applicable Token Issuer. Anchorage
 may, as required by Token Issuer, act in accordance with and comply on a best efforts basis with the applicable Vesting Schedule,
 such that all Restricted Assets deposited in Client Account or Vault shall remain restricted from withdrawal by Client in accordance
 with the applicable Vesting Schedule provided by the Token Issuer, and as instructed by the Token Issuer to Anchorage. Accordingly,
 Client acknowledges and agrees that Client may not be able to
withdraw any Restricted Assets from Client Account or Vault until such assets have vested pursuant to the applicable Vesting Schedule
as provided by Token Issuer, and in the case of any conflict between Client Directions regarding Restricted Assets and the applicable
Vesting Schedule, Anchorage is hereby authorized by Client to act in accordance with the Vesting Schedule.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Token Issuer Risks</u>. Client acknowledges and agrees that Anchorage is not responsible for decisions
made by any Token Issuer, or for any changes to any Vesting Schedule made by the Token Issuer once Client's Restricted Assets are
deposited with Anchorage, and Client acknowledges and accepts any risks associated with decisions made by Token Issuer, which are outside
of Anchorage's control. If Client causes Anchorage to follow any Client Directions that would result in any of the Client Account(s)
being in violation of any applicable Vesting Schedule, Client agrees to indemnify and hold Anchorage harmless against any Claims by the
Token Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>Storage of Digital Assets</u>. Anchorage will receive Digital Assets for storage by generating Private Keys and their Public Key pairs, with Anchorage retaining custody of such Private Keys. Upon receipt, Anchorage will custody the Digital Assets in Client's name or Accounts established for the benefit of the Client, unless otherwise specified in (a) an applicable Client Service Provider Agreement, or (b) instructions provided by a Client Service Provider or a Control Party pursuant thereto. Anchorage shall be deemed to have received a Digital Asset after the Digital Asset's receipt has been confirmed on the relevant Blockchain or otherwise ledgered to Anchorage's reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. <u>Accounting for Digital Assets</u>. At all times, Client owns Digital Assets and fiat currency (if applicable) held by Anchorage on behalf of Client under this Agreement, unless otherwise specified in (a) an applicable Client Service Provider Agreement, or (b) instructions provided by a Client Service Provider or a Control Party pursuant thereto. Client Digital Assets and fiat currency shall be kept separate from the assets of Anchorage and shall not be reflected on Anchorage's balance sheet as assets of Anchorage. Anchorage will record on its books and records all Digital Assets and fiat currency (if applicable) received by it for the Account and will segregate Digital Assets from those of any other person or entity, unless otherwise specified in (i) an applicable Client Service Provider Agreement, or (ii) instructions provided by a Client Service Provider or a Control Party pursuant thereto. Anchorage will provide Client with access to the Technology Platform for transaction records and holdings and will provide Client monthly statements that show balances and transaction records of Client Digital Assets. Upon commercially reasonable notice to Anchorage, Anchorage will provide Client copies of the books and records pertaining to the Client that are in the possession or under the control of Anchorage. The books and records maintained by Anchorage will, to the extent applicable, be prepared and maintained in all material respects as required by applicable Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. <u>Authority to Assign or Pledge</u>. Subject to applicable Law and Section 5.4, Client's Digital Assets and fiat currency shall not be subject to any right, charge, security interest, lien or claim of any kind in favor of Anchorage or any of its Affiliates or of any creditor of any of them, and Anchorage shall not have the independent right or authority to assign, hypothecate, pledge, encumber or otherwise dispose of any Client Digital Assets or fiat currency. The Digital Assets in the Account and the fiat currency in the Deposit Account, as defined in Section 2.7, are not general assets of Anchorage or of any of its Affiliates and are not available to satisfy claims of any creditors of Anchorage or of any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. <u>Application of UCC</u>. Except as may be otherwise provided in this Agreement or applicable Law, the Parties agree the relationship between Anchorage and Client is governed by Article 8 of the Uniform Commercial Code, as adopted and implemented under South Dakota law ("**UCC**"), and that for the purposes of this Agreement, (i) Client is an "entitlement holder" and any Digital Assets credited to the Account for Digital Assets or the Deposit Account for fiat currency, as defined in Section 2.7, shall be treated as a "financial asset" within the meaning of SDCL 57A-8-102(a)(7) and (9); (ii) Anchorage is a "securities intermediary" pursuant to SDCL 57A-8-102(a)(14) with respect to all financial assets held in such securities accounts; (iii) Anchorage maintains its accounts as "securities accounts" pursuant to SDCL 57A-8-501 in the ordinary course of business; and (iv) should Client enter into an agreement with Lending, then instructions given by Lending hereunder are "entitlement orders" pursuant to SDCL 57A-8-507, and Lending is an "entitlement holder" pursuant to SDCL 57A-8-102.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. <u>Rights of Use; Limits on Use</u>. Subject to the terms of this Agreement, including compliance with Schedule B (Technical and Equipment Specifications) and Client's confidentiality obligations under Section 8, Anchorage hereby grants to Client a non-sublicensable, non-exclusive, worldwide right during the Term to access the Technology Platform. The foregoing rights grant extends to access and use by Authorized Persons, and for the Anchorage API only, to Third Parties authorized by Client, subject to Section 2.3(b). Client will not, and will not permit Authorized Persons or Third Parties to: (i) directly or indirectly copy, disseminate, display, distribute, publish, sell, or otherwise use or disclose any part of the Technology Platform, or create any works or other materials based on or derived from any part of the Technology Platform; (ii) reverse engineer, decompile, or disassemble the software used in the Technology Platform; (iii) sell, rent, lease, or license Client's right to use the Technology Platform except as may be set out under this Agreement; or (iv) use the Technology Platform or Services in any other way not expressly authorized by this Agreement. Client will be responsible for all acts and omissions of Authorized Persons in connection with or relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. <u>Support and Maintenance</u>. Subject to applicable Law, as part of the Services and at no additional cost to Client, Anchorage will (i) make available the Technology Platform, and (ii) provide other Support Services as described in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.9. <u>Business Continuity Policy</u>. Anchorage shall maintain a business continuity policy applicable to Anchorage's performance of Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. <u>Forks, Airdrops</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Should a Fork occur: (i) Anchorage retains the right, in its sole discretion, to determine whether or not to support (or cease supporting)
either Forked Network; (ii) in connection with determining to support a Forked Network,
Anchorage may suspend certain operations, in whole or in part (with or without advance notice), for however long Anchorage deems necessary,
in order to take the necessary steps, as determined in its sole discretion, to perform obligations hereunder with respect to supporting
a Forked Network; (iii) Client hereby agrees that Anchorage shall determine, in its sole discretion, whether to support such Forked Network
and that Client shall have no right or claim against Anchorage related to value represented by any change in the value of any Digital
Asset (whether on a Forked Network or otherwise), including with respect to any period of time during which Anchorage exercises its rights
described herein with respect to Forks and Forked Networks; (iv) Anchorage will use commercially reasonable efforts to timely select,
in its sole discretion, at least one (1) of the Forked Networks to support and will identify such selection in a written 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;(1) With respect to a Forked Network that Anchorage chooses not to support, Anchorage shall, in cooperation
with Client but in Anchorage's sole discretion, elect to (x) abandon or otherwise not pursue obtaining the Digital Assets from that
Forked Network, or (y) deliver the Digital Assets from that Forked Network to Client within a time period as determined by Anchorage in
its sole discretion, together with any credentials, keys, or other information sufficient to gain control over such Digital Assets (subject
to the withholding and retention by Anchorage of any amount reasonably necessary, as determined in Anchorage's sole discretion,
to fairly compensate Anchorage for the efforts expended to obtain and deliver such Digital Assets to Client).

&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) With respect to Forked Networks that Anchorage chooses to support, Client may be responsible for the fees
for such support (to be negotiated), and Client acknowledges and agrees that Anchorage assumes no responsibility with respect to any Forked
Network and related Digital Assets that it chooses not to support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Client acknowledges that Digital Asset values can fluctuate substantially which may result in a total
loss of the value of Digital Assets. The supply of Digital Assets available as a result of a Forked Network and Anchorage's ability
to deliver Digital Assets resulting from a Forked Network may depend on circumstances or Third Party providers that are outside of Anchorage's
control. Anchorage does not own or control any of the protocols that are used in connection with Digital Assets and their related Digital
Asset networks, including those resulting from a Forked Network. Accordingly, Anchorage disclaims all liability relating to a Forked Network
and any change in the value of any Digital Assets (whether on a Forked Network or otherwise), and makes no guarantees regarding the security,
functionality, or availability of such protocols or Digital Asset networks. Client accepts
all risks associated with the use of Anchorage's services to conduct transactions, including, but not limited to, in connection
with the failure of hardware, software, and internet connections.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that a Digital Asset network, entity or person (a "**Sender**") attempts to
or does contribute (sometimes called "airdropping" or "bootstrapping") its Digital Assets (collectively, "**Airdropped Digital Assets**") to holders of Digital Assets on an existing Digital Asset network and Client notifies Anchorage in writing
of such event, Anchorage may, in its sole discretion, elect to: (i) subject to an airdrop fee to be determined, support the Airdropped
Digital Asset for custody and, if appropriate, reconcile Account(s); (ii) abandon or otherwise not pursue obtaining the Airdropped Digital
Assets; or (iii) within a time period as determined by Anchorage in its sole discretion, deliver the Airdropped Digital Assets from that
Digital Asset network to Client, together with any credentials, keys, or other information sufficient to gain control over such Airdropped
Digital Assets (subject to the withholding and retention by Anchorage of any amount reasonably necessary, as determined in Anchorage's
sole discretion, to fairly compensate Anchorage for the efforts expended to obtain and deliver such Airdropped Digital Assets to Client).
If Anchorage supports, obtains or delivers Airdropped Digital Assets, such actions will not create any relationship between the Sender
and Anchorage, grant any interest or rights to the Sender (including, without limitation, any Third Party beneficiary rights), or subject
Anchorage to any obligations as it relates to the Sender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. <u>Generally</u>. Notwithstanding any federal, state or local Law to the contrary regarding any common law or contractual duty, Client agrees that Anchorage will perform only such duties as are expressly set forth herein as Services, and no additional duties or obligations shall be implied. Anchorage has the authority to do all acts that Anchorage reasonably determines are necessary, proper, or convenient for it to perform its obligations under this Agreement and shall have no obligation to perform acts which it reasonably believes do not comply with applicable Laws. In providing the Services, Anchorage has no duty to inquire as to the provisions of or application of any agreement or document other than this Agreement, notwithstanding its receipt of such agreement or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Client Responsibilities and Acknowledgements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Account Acceptance; Authorized Person Designations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Services will be provided only after Client's successful completion of the account acceptance process,
including but not limited to the onboarding process in Section 2.3(a), as determined in Anchorage's sole discretion. Anchorage may
terminate this Agreement upon fourteen (14) days' prior written notice to the Client due to Client's failure to complete the
onboarding process with Anchorage. To complete the acceptance process, Client shall provide Anchorage with information and documents,
which include but are not limited to, information necessary for Anchorage's compliance with the Bank Secrecy Act ()"**BSA** "),
and all Laws and regulations relating to anti-money laundering ()"**AML** "), Know-Your-Customer ()"**KYC** "),
counter-terrorist financing, sanctions screening requirements,
or any other legal obligations, in each case, as determined by Anchorage in its sole discretion. Upon acceptance of Client by Anchorage,
Client shall nominate and manage Authorized Persons; provided that if Client has entered into, or at any time enters into, a Client Service
Provider Agreement or Control Agreement that (i) contemplates or requires an Authorized Person to be nominated by a Third Party or (ii)
can only be reasonably implemented through the use of Authorized Persons that are nominated by a Third Party, then Authorized Persons
shall be nominated in accordance with such agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to be approved as an Authorized Person, nominated persons must agree to data collection permissions
and related policies provided in the Anchorage application and Technology Platform, including privacy policies and other terms, which
may be amended from time to time. A copy of the then-current versions of such privacy policies and other terms will be provided at the
written request of Client. Client is solely responsible for the actions or inactions of all Authorized Persons at all times, including
their intentional, unintentional, or coerced use of the Services. With respect to Client's primary custody Account, Client will
initially nominate three (3) or more individuals as Authorized Persons prior to initiation of Client on-boarding by Anchorage, and a minimum
of two (2) of three (3) Authorized Persons must approve an Authenticated Instruction. Anchorage reserves the right in its reasonable sole
discretion to change, upon reasonable advance written notice, the minimum number of Authorized Persons to be designated or which are required
to approve a Direction.

&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) With respect to any Account or Vault opened in connection with a Client Service Provider Agreement or
Control Agreement, the applicable Third Party shall nominate the agreed-upon number of individuals as Authorized Persons, and the Quorum
shall be determined as required by such agreement. Subsequent to the approval and on-boarding of initial Authorized Persons, Client or
an approved Third Party (pursuant to a Client Service Provider Agreement or Control Agreement) may nominate additional Authorized Persons
or revoke an Authorized Person's status, each through a Direction to be approved by a Quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Acceptable Devices</u>. Unless expressly agreed upon otherwise, Client shall maintain a separate Acceptable
Device for each Authorized Person. The Acceptable Device must have Internet accessibility and meet other technical specifications prescribed
by Anchorage in Schedule B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Authorized Persons; Anchorage API</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each person nominated by Client as an Authorized Person must be confirmed by Anchorage as an Authorized
Person. Authorized Persons may be required to successfully complete the onboarding process and training, which may include (i) installing
the Anchorage application onto the person's Acceptable Device; and (ii) training on the Services regarding the creation of Directions
or joining a Quorum. Upon completion of Anchorage's onboarding process and any training, to Anchorage's satisfaction in its
reasonable sole discretion, the nominated person will be designated by Anchorage as one of Client's Authorized Persons and their
device designated by Anchorage as an Acceptable Device, such that they may create Directions or join a Quorum.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As part of the Services, Anchorage may provide Client with access to the Anchorage API, through which
Client may permit Third Party access to the Account(s) or Technology Platform. Anchorage has implemented and will maintain an information
security program that includes policies and procedures reasonably designed for the safeguarding of Anchorage's Technology Platform.
Anchorage shall follow any Directions submitted via the Anchorage API, including Directions for withdrawals and external transfers of
Client's Digital Assets, as though such Directions were submitted from and by Client and without additional authentication, unless
otherwise specified in this Agreement. Authorized Persons may generate API keys and assign roles to a Third Party, including without limitation,
a Third Party application, subject to their compliance with the Anchorage API's Documentation, and applicable Law. Client and all
Authorized Persons shall use industry best practices to safeguard any generated Anchorage API keys. Client shall be responsible for all
Third Party access to the Account(s) and Directions submitted via the Anchorage API, and Anchorage shall not be liable for following any
instructions submitted via an Anchorage API key unless Anchorage's gross negligence or willful misconduct caused unauthorized access
to or possession of such key.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>On-Chain Services</u>. From time to time, Anchorage may, in its sole discretion, offer Client additional optional services involving on-chain transactions (other than deposits and withdrawals included in Anchorage's basic custody service), which may include staking, voting, vesting, signaling, and other activities requiring interaction with the applicable blockchain ("**On-Chain Services**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Offer and Acceptance of On-Chain Services. Anchorage may offer On-Chain Services by presenting the option to elect such services in
the Anchorage application to Authorized Persons of Client. Any offer for On-Chain Services will include the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) a basic description of the On-Chain Service;

ii) a disclosure of the material risks of the On-Chain Service;

iii) a description of any associated fees;

iv) any other key terms of the On-Chain Service, as applicable (for example, Anchorage will disclose if Digital Assets must be locked for a minimum period and would not be immediately accessible to Client); 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;v) an option to expressly agree to the On-Chain Service.

Any Authorized Person may accept an On-Chain Service on behalf of Client by clicking on the button indicating the Authorized Person's election of such service ("Agree" or similar) on behalf of Client.

&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) Cancellation of On-Chain Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Any Authorized Person may cancel an On-Chain Service at any time; provided, however, that in cases where Digital Assets are locked
up for a certain period pursuant to the blockchain protocol,
Anchorage will release locked Digital Assets when and as permitted by the applicable blockchain protocol. If Client desires to cancel
an On-Chain service, Client may do so through the Anchorage application.

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ii) Anchorage may discontinue an On-Chain Service at any time without notice for any reason. If Anchorage decides to discontinue an On-Chain Service, Anchorage will endeavor to provide as much notice to Client as reasonably possible, however Anchorage shall not be liable for any loss of rewards, slashing, penalty, or additional fees that may be incurred by the Client on the blockchain protocol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>Legal Compliance</u>. Notwithstanding any other provision in this Agreement, Client agrees to the extent permitted by applicable Law, at all times to (i) fully satisfy Anchorage's information requests and other requirements, including but not limited to those relating to Authorized Persons or Digital Assets; (ii) fully comply with all applicable Laws, including the BSA and all other Laws and regulations related to AML, KYC, counter-terrorist financing, sanctions screening requirements, or other legal obligations; (iii) notify Anchorage if Client becomes a target of any BSA or Digital Asset related action, investigation or prosecution; (iv) notify Anchorage of any changes in its jurisdiction of organization or any change in ownership of the Client resulting from the acquisition by any Person of the beneficial ownership of ten (10) percent or more of the outstanding voting stock of the Client; and (v) provide Anchorage full cooperation in connection with any inquiry or investigation made or conducted by the U.S. Office of the Comptroller of the Currency ("**OCC**"). Anchorage will have no obligation to provide the Services if Client or Authorized Persons fail to comply with the foregoing to Anchorage's reasonable satisfaction. Client agrees to immediately notify Anchorage if it becomes aware of any suspicious activity or pattern of activity, or any activity which upon investigation may be a suspicious activity or pattern of activity under applicable Laws. As used herein, "Person" means an individual, a corporation, partnership, limited liability company, association, trust, unincorporated organization, or other legal entity or organization, or a Government Body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. <u>Acknowledgements</u>. Client acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Client is an "Entitlement Holder" in a "Financial Asset," as defined by, and
 for purposes of, the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&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) Anchorage does not provide investment advice or exercise investment discretion. Client is capable of evaluating
transaction and investment risks independently, both in general and with regard to all transactions and investment strategies. Client
is solely responsible for, and Anchorage has no involvement in, determining whether any Digital Asset transaction (whether an investment
or otherwise), investment strategy, or related transaction is appropriate for Client;

&nbsp;&nbsp;&nbsp;&nbsp;&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) Anchorage has no control over the Blockchains and markets in which Digital Assets are purchased and traded,
and such may be subject to technology flaws, manipulations, hacks, double spending, "51%" attacks, other attacks, and operational
limitations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Anchorage does not control and makes no guarantee as to the functionality of any Blockchain's decentralized
governance, which could, among other things, lead to delays, conflicts of interest, or operational decisions that may impact Client or
its Digital Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Advancements in cryptography could render current cryptography algorithms utilized by a Blockchain supporting
a specific Digital Asset inoperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The price and liquidity of Digital Assets has been subject to large fluctuations in the past and may be
subject to large fluctuations in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&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) Deposits into Client's Accounts may not be considered "deposits," as that term may be
used under the applicable Laws, rules, or regulations in Client's jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Digital Assets in Client's Accounts are not subject to deposit insurance protection of the Federal
Deposit Insurance Corporation ()"**FDIC"**) and may not be subject to the protection afforded customers under the Securities
Investor Protection Act of 1970, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Digital Assets are not legal tender and are not backed by any government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Legislative and regulatory changes or actions at the state, federal, or international level may adversely
affect the use, transfer, exchange, and value of Digital Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Transactions in Digital Assets may be irreversible, and, accordingly, losses due to fraudulent or accidental
transactions may not be recoverable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Some Digital Asset transactions shall be deemed to be made when recorded on a public ledger, which is
not necessarily the date or time that transaction was initiated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The value of Digital Assets may be derived from the continued willingness of market participants to exchange
fiat currency or Digital Assets for Digital Assets, which may result in the potential for permanent and total loss of value of a particular
Digital Asset should the market for that Digital Asset disappear;

&nbsp;&nbsp;&nbsp;&nbsp;&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) There is no assurance that a person who accepts a Digital Assets as payment today will continue to do
so in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&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) Due to the volatility and unpredictability of the price of Digital Assets relative to fiat currency trading
and owning Digital Assets may result in significant loss over a short period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The nature of Digital Assets may lead to an increased risk of fraud or cyber-attack;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The nature of Digital Assets mean that technological difficulties experienced by Anchorage may prevent the access to or use of Client's
Digital Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Any bond, insurance or trust account maintained by Anchorage for the benefit of its customers may not
be sufficient to cover all losses incurred by Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Client agrees to hold Anchorage harmless from any loss or liability related to the acknowledgments in
this paragraph 2.6 (a)-(r); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Fees and any other payments or compensation otherwise agreed to by Anchorage and Client represent
reasonable compensation for Anchorage's Services and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. <u>Fiat Currency Instructions and Acknowledgements; Undirected Cash Disclosures</u>. Anchorage may, in its sole discretion, offer Fiat Services to Client. If Anchorage offers Fiat Services, and Client accepts Fiat Services, Client shall be subject to the requirements, policies and procedures of any Fiat Institution (as defined below), as applicable, and Anchorage will, acting as Client's agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Deposit all cash deposited by Client with Anchorage, for which the Client has not already provided transfer
instructions, into deposit accounts at FDIC-insured, regulated depository institutions selected by Anchorage (each, a "**Fiat Institution** "),
which accounts will be held for the benefit of (FBO) Anchorage clients ()"**Deposit Accounts** "). Deposit Accounts will
be non-interest-bearing and may be segregated by client or pooled into omnibus accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Enter into such sub-accounting agreements as may be required by the Fiat Institution, and;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Initiate wire transfer requests from time to time for the withdrawal of Client funds from the Deposit
Accounts, which requests are to be honored by the Fiat Institution for withdrawal of Client's funds from such Deposit Accounts for
distributions, investments, fees and other disbursements directed or agreed to by the Client or Client's delegate. All applicable
wire transfer fees shall be paid by the Client.

For the sub-account held for the benefit of Client, Anchorage will keep records to obtain pass-through FDIC coverage of up to the maximum coverage level of $250,000 per Client at a single Fiat Institution. Anchorage makes no guarantee that pass-through FDIC coverage will be available, and Client acknowledges and accepts the risk that pass-through FDIC coverage may not be available. Anchorage shall not be liable for any defaults by a Fiat Institution, including but not limited to any bankruptcy filing or insolvency of a Fiat Institution, and any Losses incurred by Client due to Fiat Institution's actions , omissions, failures, or insolvency.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Ownership and Intellectual Property Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Services and Documentation</u>. As between the Parties and subject to Section 3.2 (Outputs of Services) and 3.3 (Client Data), Anchorage owns the Services, the Documentation, and all Intellectual Property Rights in the Services and the Documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Outputs of Services</u>. Anchorage hereby grants Client a perpetual, royalty-free, non-transferable (except as provided in Section 12.10), non-sublicensable, worldwide license to all output and results from use of the Services by Client or Authorized Persons, including any reports, graphics, data, specification, programs and all other materials or computer output ("**Outputs**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Client Data</u>. As between the Parties, Client owns all Client Data and all Intellectual Property Rights in Client Data. Client hereby grants Anchorage, and any of its Affiliates that provide or may provide additional services to Client, a perpetual, royalty-free, non-transferable (except as provided in this Section 3.3 or Section 12.10), non-sublicensable, worldwide license to disclose and use Client Data (i) to operate and manage the Services for Client; (ii) to monitor, process and support Directions or as necessary to effect, administer, or enforce a transaction or directive that Client otherwise requests or authorizes, including to facilitate Client's use of services provided by Anchorage Affiliates; (iii) to comply with legal or regulatory obligations applicable to the Services including financial reporting and retention of related data; and (iv) in de-identified and anonymized form in aggregation with other clients' data, to improve Anchorage's services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Feedback</u>. From time to time, Client may submit or provide suggestions, requests for features, recommendations, or ideas to Anchorage ("**Feedback**"). By submitting Feedback, Client grants Anchorage a non-exclusive, worldwide, royalty-free, irrevocable, sub-licensable, perpetual license to use the Feedback, without consideration or compensation to Client or Authorized Persons, Affiliates, agents, partners, or personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Term and Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Term</u>. This Agreement is effective as of the Effective Date and will continue in full force and effect for the Initial Term period in the Order Form, and will be automatically renewed for each successive Renewal Term specified in the Order Form (the Initial Term and each Renewal Term collectively referred to herein as the "**Term**"). For each Renewal Term, Anchorage reserves the right to change the Fees, institute new charges, or to otherwise change the Services upon written notice to Client no less than sixty (60) days prior to the commencement of the Renewal Term. Either Party may elect not to renew the Agreement by providing written notice of cancellation no less than thirty (30) days prior to the expiration of the current Term or unless sooner terminated as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Termination for Cause</u>. This Agreement may be terminated by the non-breaching Party upon a material breach which is not cured within thirty (30) days after receipt by the breaching Party of written notice from the non-breaching Party of such breach. Notwithstanding the foregoing, this Agreement may be terminated immediately (without an opportunity to cure) upon written notice by the non-breaching Party in the following cases: (i) either Party reasonably determines that any part of the Services is or may become in violation of applicable Laws or raises material regulatory, risk, or reputational issues; (ii) Client or Authorized Persons have acted fraudulently or made a willful misrepresentation; (iii) the other Party files bankruptcy or is declared insolvent, or has an administrative or other receiver, manager, trustee, liquidator, administrator, or similar officer appointed over all or any substantial part of its assets; (iv) the other Party enters into or proposes any composition or arrangement with its creditors generally; or (v) the other Party violates Section 8.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Effect of Termination Notice</u>. Upon termination of this Agreement, Client will pay Anchorage all Fees, as provided in the Order Form, and documented expenses for Services rendered to Client through the effective date of termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Obligations and Rights on Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Timeline for Termination. Client shall, within thirty (30) days (or as otherwise agreed in writing between
the Parties) of the date of any termination notice, whether sent by Anchorage or by Client, transfer all of Client's Digital Assets
or fiat currency out of all Accounts and Vaults with Anchorage, subject to applicable Laws and any payment obligations and set off to
Anchorage for any outstanding Fees and associated costs of such return (if any). If the Client fails to transfer their Digital Assets
or fiat currency within thirty (30) days (or as otherwise agreed in writing between the Parties) of termination, Client shall work in
good faith with Anchorage to transfer all Digital Asset and fiat currency out of Client Account and Vault as soon as possible. Regardless
of termination, Client shall accrue Fees until all Digital Assets and fiat currency are transferred out of Client Account and Vault with
Anchorage. Notwithstanding the foregoing, Clients may be required to transfer all of Client's Digital Assets or fiat currency earlier
than the time period agreed herein if Anchorage reasonably determines that any part of the Services is or may become in violation of applicable
Laws, or raises material regulatory, risk, or reputational issues. For avoidance of doubt, and regardless of termination, Client shall
be responsible for payment of any Fees accrued until the Client transfers all of Client's Digital Assets from Client's Account
with Anchorage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Digital Assets. A Digital Asset will be deemed to have been returned to Client when: (i) a transfer of
the Digital Asset initiated by Anchorage has received a reasonable number of confirmations on the relevant Blockchain; or (ii) via an
alternative method mutually agreed upon between Anchorage and Client. To the extent a Client's Digital Assets are unable to be transferred
out of the Account due to insufficient gas or network fees necessary for the transfer, Client agrees to deposit additional Digital Assets
to permit such transfer, or otherwise abandons and forfeits any claims to such Digital Assets upon closure of the Account. Client acknowledges
and agrees that upon notice of termination, if Client fails to transfer out Digital Assets within thirty (30) days, those Digital Assets
shall be abandoned and forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Confidential Information and Client Data. At the Disclosing Party's written request, the Receiving
Party will return or destroy any or all of the Disclosing Party's Confidential Information. In addition, upon Client's written
request, Anchorage will return or destroy all Client Data. Notwithstanding the
foregoing, either Party may retain a copy of Confidential Information and Client Data (i) for audit, legal, accounting or compliance purposes;
(ii) if included within unstructured backup files or that technically cannot be deleted; (iii) as licensed pursuant to Section 3.3; or
(iv) as may be required by applicable Laws, including requirements of the OCC, provided that Section 8 shall continue to apply to all
such retained information, notwithstanding termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Timeline for Claims. The Parties agree that any claim, suit, proceeding, cause of action, or arbitration
request arising out of or relating to this Agreement must be asserted by a Party the earlier of (A) the applicable statute of limitation
under applicable Law and (B) within twelve (12) months of the time a Party becomes aware or should have become aware of the event giving
rise to the claim, suit, proceeding, cause of action, or arbitration request..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Fees and Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Fees</u>. Client will pay Anchorage the Fees for the Services as set forth in the Order Form, in any addendum or attachment to this Agreement, or as otherwise agreed in writing between the Parties. Upon termination, Client shall be responsible for payment of any Fees accrued until the Client transfers all of Client's assets out of Client's Account, or until the assets are abandoned and forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Invoices; Payment Terms</u>. Anchorage will submit invoices for the Services as set forth in the Order Form. Except as otherwise set forth in the Order Form, Client agrees to pay all undisputed invoices net thirty (30) days following receipt. If Client reasonably disputes any portion of an invoice, Client agrees, within the foregoing 30-day period, to (i) pay the undisputed amounts; and (ii) provide a detailed explanation with all supporting documentation of the basis for its dispute. The first invoice will be sent after the end of the calendar month including the Fees Commencement Date, unless otherwise agreed in writing by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Taxes.</u> The Fees do not include all taxes, assessments, duties, and other governmental and similar charges ("**Taxes**") that may be assessed on Client or Client's assets by governmental authorities, which are Client's sole obligation to remit unless otherwise mandated by law. Client shall be liable for all Taxes relating to any Digital Assets held on behalf of Client or any transaction related thereto. Client shall remit to Anchorage for the amount of any Tax that Anchorage is required under applicable Laws (whether by assessment or otherwise) to pay on behalf of, or in respect of activity in the Account of Client. In the event that Anchorage is required under applicable law to pay any Tax on behalf of Client, Anchorage shall promptly notify Client of the amount required and Client shall promptly transfer to Anchorage the amount necessary to pay the Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Lien and Right of Setoff, Reserve</u>. To secure payment or performance of Client's Obligations, Client hereby pledges and grants to Anchorage and its Affiliate, Anchorage Hold, LLC, and agrees that Anchorage and its Affiliate, Anchorage Hold, LLC, will have, to the maximum extent permitted by Law, a continuing first lien and security interest in, and right of setoff against Accounts, all assets and property credited to the Accounts (including, for the avoidance of doubt, Digital Assets and fiat currency) or otherwise transferred to Anchorage, contractual and non-contractual rights in respect of any of the foregoing, and all proceeds of the foregoing. Client acknowledges and agrees that Anchorage has no duties or responsibilities with respect to the foregoing property (including any duty to collect any distributions or enforce or preserve any rights pertaining to such property) other than those expressly set forth in this Agreement or under applicable Law.

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Client also acknowledges that Anchorage is acting as agent for each Anchorage Affiliate for purposes of this Section 5.4.

Further, with Client's prior written consent, Anchorage may establish a reserve account to ensure Client pays Fees ("Reserve Account") if Client: (i) breaches this Agreement; (ii) is subject to a material regulatory action or proceeding that Anchorage reasonably determines makes it prudent for it to engage counsel or incur expenses to manage the Account; or (iii) is likely to become the subject of bankruptcy or insolvency proceedings, each as reasonably determined by Anchorage. If Anchorage creates a Reserve Account, Anchorage will provide prior written notice to the Client of the reasons therefore and the required Reserve Account balance. Anchorage may use Reserve Account funds to pay Client obligations to Anchorage, and if such funds are used, Anchorage will account to Client for such funds used in Client's monthly statements. In no case shall any amounts held in the Reserve Account constitute "demand deposits" or be withdrawable by check or similar means for payment to Third Parties or others, within the meaning of 12 U.S.C. 1841(c)(2)(D)(iv)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Representations and Warranties; Disclaimers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Mutual Representations and Warranties</u>. Each Party represents, warrants, and covenants that: (i) it is a validly organized entity under the laws of the jurisdiction of its incorporation; (ii) it has all rights, power, and authority necessary to enter into this Agreement and perform its obligations hereunder; (iii) its performance of this Agreement, and the other Party's exercise of its rights under this Agreement, will not conflict with or result in a breach or violation of any of the terms or provisions or constitute a default under any agreement by which it is bound or any applicable Laws; and (iv) it will comply with all applicable Laws in performing its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Anchorage Representations and Warranties</u>. Anchorage represents, warrants and covenants that: (i) the Services will conform to this Agreement; (ii) it is the owner of or is duly authorized to provide all Services; (iii) it has all rights necessary to grant all the rights and licenses that it purports to grant and perform all of its obligations under this Agreement; (iv) it is not aware of any claim that the Services, and the use thereof by any Authorized Person in accordance with this Agreement, infringe upon or otherwise violate any statutory, common law or other rights of any Third Party in or to any Intellectual Property Rights therein; and (v) as of the Effective Date, there is no pending, threatened, or anticipated claim, suit, or proceeding affecting or that could affect Anchorage's ability to perform and fulfill its obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Client Representations and Warranties</u>. The Client represents, warrants and covenants as of the Effective Date and as of each Direction from Client provided hereunder that: (i) Client is and has been for the past five (5) years or since its formation, whichever is more recent, based on a reasonable investigation and analysis of such applicable Laws, in compliance with all applicable Laws, including but not limited to those relating to anti-money laundering, Know-Your-Customer, customer identification and similar Laws; (ii) Client is, and will at all times remain, the owner or beneficial owner of all Digital Assets handled under this Agreement, subject only to liens and encumbrances granted to Anchorage pursuant to this Agreement or otherwise created as part of the Client's business; (iii) Client shall only use the Account(s) for the purpose of custody of Digital Assets by Client as beneficial owner, and under no circumstances shall Client use or cause Account(s) to receive third party payments; (iv) any Digital Assets or fiat currency deposited into any Account are not proceeds of a crime; and (v) Client is not directly or indirectly owned or controlled by any person or entity (a) included on the Specially Designated Nationals and Blocked Persons or the Consolidated Sanctions List maintained by the Office of Foreign Assets Controls ("**OFAC**") or similar list maintained by any government entity from time to time; or (b) located, organized, or resident in a country or territory that is the target of sanctions imposed by OFAC or any government entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Anchorage Disclaimers</u>. Except to the extent set forth in Sections 6.1 and 6.2 above, **THE SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE," WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ANCHORAGE EXPLICITLY DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT, AND ANY WARRANTIES ARISING OUT OF THE COURSE OF DEALING OR USAGE OF TRADE.** The Parties further acknowledge and agree that Anchorage has no obligation to inquire into, and shall not be liable for any damages or other liabilities or harm to any person or entity relating to: (i) the ownership, validity or genuineness of any Digital Asset; (ii) the authority of any Authorized Person to act on behalf of the Client with respect to a Digital Asset; (iii) the accuracy or completeness of any Client Data or information provided by Client or any Authorized Person with respect to a Digital Asset or Direction; or (iv) the collectability, insurability, effectiveness, marketability or suitability of any Digital Asset. Client additionally understands and agrees that Anchorage will follow the Directions from Client, is considered by this Agreement to be an "excluded fiduciary" and shall be released and held harmless for following the Directions from Client, who is considered by the Agreement to be a Trust Advisor (in its capacity as a custody account holder) under SDCL 55-1B-1(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Prohibition Against Nested Transactions</u>. Client shall not permit any transactions and/or activities of a financial institution from passing through any of the Account(s). Client shall provide Anchorage with such assurances and/or confirmation regarding Client's compliance with the foregoing prohibition as Anchorage may require, at its sole discretion from time to time, within such time frames as Anchorage may require and in form and substance acceptable to Anchorage. Should Client become aware of the use of an Account by any other financial institution, directly or indirectly, Client will promptly cause such use and/or activity to immediately cease and shall promptly notify Anchorage, in writing, of such circumstances.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Security Requirements; Personal Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Security Requirements; Personal Information</u>. Client and Anchorage hereby agree that the Data Processing Addendum provided at: https://anchorage-digital.docsend.com/view/8v28dnjv9wk25xtr shall apply to and is hereby incorporated into this Agreement. Client will comply with and cause Authorized Persons and its Representatives to comply with the terms and conditions set forth in the Data Processing Addendum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Breach Notifications</u>. Anchorage agrees to use commercially reasonable efforts to notify Client of any Personal Data Breach involving Client Data within forty-eight (48) hours of becoming aware of the Personal Data Breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Changes in Law</u>. To the extent that applicable data protection Laws impose any additional compliance obligations that are not sufficiently addressed in this Agreement, the Parties agree to enter into good faith discussions regarding amending this Agreement or taking such other steps as may be mutually agreed as reasonably necessary to achieve compliance with those applicable data protection Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Use and Disclosure</u>. The Parties acknowledge that, in the course of performance of this Agreement, it may be necessary for one Party ("**Disclosing Party**") to disclose or permit access to Confidential Information to the other Party ("**Receiving Party**") and its Representatives. Disclosing Party's disclosure of, or provision of access to, Confidential Information to Receiving Party's Representatives is solely for the purposes agreed to under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Confidential Treatment</u>. Confidential Information disclosed to a Receiving Party will be held in confidence by the Receiving Party and not disclosed to others or used except as expressly permitted under this Agreement or as expressly authorized in writing by the Disclosing Party. Each Party will use the same degree of care to protect the other Party's Confidential Information as it uses to protect its own information of like nature, but in no circumstances less than reasonable care. At the Disclosing Party's written request, the Receiving Party will return or destroy any or all of the Disclosing Party's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Allowances</u>. Notwithstanding anything to the contrary in this Section 8, Confidential Information may be disclosed by a Receiving Party to its Representatives, service providers, including Vendors, and professional advisors who require it in connection with their duties in performing such Party's obligations under this Agreement and who are bound by confidentiality obligations substantially similar to those of this Agreement and which would extend to the Disclosing Party's Confidential Information. If disclosure is compelled by law, pursuant to a duly authorized subpoena, court order, or government authority, unless otherwise prohibited by law, the Receiving Party shall provide the Disclosing Party with prompt notice to permit the Disclosing Party to seek a protective order or other appropriate remedy protecting its Confidential Information from disclosure. If disclosure is required, the Receiving Party shall limit the disclosure of the Confidential Information to only the portions required to be disclosed. Notwithstanding the foregoing, Anchorage and Client may disclose any Confidential Information of Client to the OCC, or that is requested from, or required or appropriate to be provided to, any other state, federal, or international governmental or regulatory body with jurisdiction over Anchorage or Client, without prior notice to the other party. In addition, notwithstanding the foregoing, Anchorage may disclose the existence and terms of this Agreement in connection with an actual or prospective sale or transfer of Anchorage's assets or stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <u>Exceptions</u>. Except with respect to Personal Information, which will in all circumstances remain Confidential Information, obligations under this Section 8 will not apply to information which: (a) is or becomes available in the public domain without breach of this Agreement; (b) was lawfully received by the Receiving Party from a Third Party without confidentiality restrictions; (c) was known or legally in the possession of to the Receiving Party and its Representatives without confidentiality obligations prior to disclosure from the Disclosing Party; and (d) was independently developed by the Receiving Party without breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Indemnification Obligation</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;a) Client will defend, indemnify, and hold harmless Anchorage, its directors, officers, employees and agents (collectively, the "**Anchorage Indemnified Party**") from and against losses, damages, fines, fees (including reasonable fees of attorneys and accountants), and penalties ("**Losses**") asserted in or incurred as a result of claims, demands, suits, or proceedings ("**Claims**") by a Third Party arising out of or in connection with this Agreement, except to the extent arising out of (i) Anchorage's gross negligence, willful misconduct, or fraud as determined by a non-appealable, adjudication by an arbiter of competent jurisdiction ("**Bad Acts**"), provided, however, that Anchorage shall be released and held harmless for Direction from the Client, and (ii) any breach by Anchorage of its obligations, warranties and representations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Client further agrees to indemnify Anchorage for actual, reasonable legal costs and expenses directly related to Client's Account(s) or any related account that are a result of any regulatory inquiry, legal action, litigation, dispute, or investigation whether such situations occur or are anticipated, that arise or relate to Client. Client further agrees to defend, indemnify and hold Anchorage Indemnified Party and any financial institution harmless from and against any Losses or Claims arising from or related to (i) Anchorage's execution of the Directions instituted by Client or anyone acting on Client's behalf or at its direction (such as a Client Service Provider or Control Party), including but not limited to requests for withdrawals by wire transfer made from Client's portion of the Deposit Accounts; (ii) instructions submitted via the Anchorage API, provided that such instructions were submitted pursuant to a validly generated Anchorage API key; and (iii) the actions or omissions of any party to whom the Client may have given access to an Anchorage API key.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Notice and Settlement of a Claim</u>. Anchorage will provide Client with prompt notice of any Claim for which indemnification will be sought hereunder and will cooperate in all reasonable respects with Client in connection with any such Claims, at Client's expense. Client will defend Anchorage at Anchorage's request, but failure to give notice will not relieve Client of its obligations under this Section 9. Client will be entitled to control the handling of any such Claim and to defend or settle any such Claim, in its sole discretion, with counsel of its own choosing, except that any settlement for other than money damages will be subject to the approval of the Anchorage, which approval will not be unreasonably withheld. Client may not settle any Claim without the prior written consent of Anchorage where such proposed settlement may limit, materially interfere with, or otherwise adversely affect the rights of Anchorage herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <u>LIMITATION OF LIABILITY</u>. EXCEPT FOR ANCHORAGE'S BAD ACTS, ANCHORAGE SHALL NOT BE LIABLE FOR ANY LOSSES, WHETHER IN CONTRACT, TORT OR OTHERWISE, INCURRED BY CLIENT, FOR ANY AMOUNT IN EXCESS OF FEES PAID BY CLIENT IN THE TWENTY-FOUR (24) MONTHS PRIOR TO WHEN THE LIABILITY ARISES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <u>DAMAGES LIMITATION</u>. IN NO EVENT WILL ANCHORAGE BE LIABLE FOR (I) LOSSES WHICH ARISE FROM ANCHORAGE'S COMPLIANCE WITH APPLICABLE LAWS, INCLUDING SANCTIONS LAWS ADMINISTERED BY OFAC; OR (II) SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS OR LOSS OF BUSINESS ARISING IN CONNECTION WITH THIS AGREEMENT. IN ADDITION TO THE FOREGOING, ANCHORAGE SHALL NOT BE LIABLE FOR ANY LOSSES WHICH ARISE AS A RESULT OF THE NON-RETURN OF DIGITAL ASSETS THAT CLIENT HAS DELEGATED TO ANCHORAGE OR A THIRD PARTY FOR ON-CHAIN SERVICES, SUCH AS STAKING, VOTING, VESTING, AND SIGNALING, UNLESS SUCH LOSSES OCCUR AS A RESULT OF ANCHORAGE'S BAD ACTS.

FOR THE AVOIDANCE OF DOUBT, THE LIMITATION OF LIABILITY IN THIS SECTION 10 IS A SEPARATE LIMITATION OF LIABILITY AS TO EACH CLIENT AND SHALL NOT INCLUDE ANY AMOUNT PAID BY CLIENTS IN THE AGGREGATE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Dispute Resolution; Binding Arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>Initial Resolution; Mediation</u>. In the event of any dispute, potential claim, question, or is agreement arising from or relating to this Agreement or the breach thereof (collectively, a "**Dispute**"), the aggrieved Party shall notify the other of the aggrieved Party's intent to address and resolve the Dispute, and the specific terms of such Dispute. The Parties shall use their commercially reasonable efforts to promptly settle the Dispute. Such efforts will include, at a minimum, that executives of each Party consult, meet in person, and negotiate with each other in good faith. If the Parties do not resolve the Dispute pursuant to the foregoing paragraph within a period of 30 days following the aggrieved Party's notice, then, upon notice by either Party to the other, the Parties agree to confidentially mediate the Dispute in good faith according to the American Arbitration Association ("**AAA**") Commercial Mediation Procedures in Sioux Falls, South Dakota or another location agreed to by the Parties. The Parties shall work in good faith with the mediator to attempt to complete the mediation within 30 days of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <u>Arbitration</u>. If the parties do not resolve the Dispute pursuant to the foregoing paragraph, then, upon notice by either Party to the other, the Dispute shall be finally settled by binding arbitration administered by the AAA in accordance with the provisions of its rules applicable to commercial disputes. The arbitration shall be conducted on a confidential basis in Sioux Falls, South Dakota, or another location agreed to by the Parties. The arbitration shall be conducted before a single arbitrator experienced in contract, finance and technology law. Any decision or award shall be in writing and shall provide an explanation for all conclusions of law and fact. The arbitrator may award the prevailing Party on each claim or defense, if any, as determined by the arbitrator, some or all of its Costs, in the arbitrator's sole discretion. "**Costs**" mean all reasonable pre-award expenses of the arbitration, including the arbitrators' fees, administrative fees, out-of-pocket expenses such as copying and telephone, witness fees, and reasonable attorneys' fees.

No Party shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce any agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. <u>Exception for Protection of Confidential Information</u>. The Parties each agree that the protection of Confidential Information is necessary and reasonable in order to protect the Disclosing Party and its business. The Parties each expressly agree that monetary damages would be inadequate to compensate the Disclosing Party for any breach of its Confidential Information. Accordingly, each Party agrees and acknowledges that any such violation or threatened violation would cause irreparable injury to the Disclosing Party and that, in addition to any other remedies that may be available, in law, in equity or otherwise, the Disclosing Party shall be entitled to obtain injunctive relief against the threatened breach or continued breach by the Receiving Party, without the necessity of proving actual damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. General Provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Independent Contractor</u>. It is understood by the Parties that Anchorage is an independent contractor, and that this Agreement does not create or constitute a partnership, joint venture or employment relationship between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>No Third Party Beneficiaries</u>. This Agreement is not intended to and shall not be construed to give any Third Party any interest or rights (including, without limitation, any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise expressly 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;12.3. <u>Publicity and Client Identification</u>. The existence and subject matter of this Agreement, including Fees, is deemed the Confidential Information of Anchorage. Notwithstanding the foregoing, for the Term of the Agreement, Client may use Anchorage's name and approved or publicly available trademarks to identify Anchorage as its Digital Asset custodian services provider, and Anchorage may use Client's name and approved or publicly available trademarks to identify Client as a customer of Anchorage. Any use of a Party's trademarks shall be in a form reasonably acceptable to that Party. Any other use of a Party's name or trademarks by the other may only be made with its prior written consent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <u>Force Majeure</u>. Except for obligations to pay Fees, neither Party will be liable to the other Party for the failure to perform or delay in the performance of its obligations under this Agreement to the extent such failure or delay is caused by or results from a Force Majeure Event. The affected Party will not be held liable by the other Party for such non-performance or delay as long as the fact of the occurrence of such Force Majeure Event is duly proven or is reasonably provable. In addition, Anchorage will not be liable to Client for any costs or expenses incurred by Client as a result of any Force Majeure Event. Notwithstanding the foregoing, if the delay in performance exceeds thirty (30) days, the Party awaiting performance will be permitted to terminate this Agreement upon five (5) days' prior written notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. <u>Notices</u>. All notices required or permitted under this Agreement will be in writing and delivered by courier, mail, electronic mail, or within the Anchorage application (except for service of legal process which shall be by courier). A Party's email addresses, or physical address may be changed from time to time by either Party by providing written notice to the other in the manner set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. <u>Execution in Counterparts and by Electronic Means</u>. This Agreement may be executed in counterparts and by electronic means and the Parties agree that such electronic means and delivery will have the same force and effect as delivery of an original document with original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. <u>Entire Agreement; Amendment</u>. This Agreement includes all exhibits, schedules, and attachments referenced herein, all of which are incorporated herein by this reference. This Agreement is the final, complete, and entire agreement of the Parties. There are no other promises or conditions in any other agreement, oral or written. This Agreement supersedes and replace, as applicable, any prior promises, agreements, representations, undertakings, or implications whether made orally or in writing between the Parties related to the subject matter of this Agreement, including but not limited to, any prior Master Custody Services Agreements entered into between the Parties which shall be deemed terminated upon the execution of this Agreement. The Agreement may only be modified or amended in writing and signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. <u>Remedies Cumulative</u>. Each Party will have all of the rights and remedies provided by law in addition to the rights and remedies set forth in this Agreement and in any other agreement or writing between the Parties. All of a Party's rights and remedies are cumulative and may be exercised from time to time, and the pursuit of one right or remedy will not constitute an exclusive election or otherwise preclude or limit its pursuit of any other or additional right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. <u>Severability</u>. If any provision of this Agreement will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provisions will be deemed to be written, construed and enforced as so limited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. <u>Assignment</u>. No Party may assign any of its rights under this Agreement or delegate its performance under this Agreement without the prior written consent of the other Party; except that Anchorage may assign its rights and delegate its performance under this Agreement to: (i) any entity that acquires all or substantially all of its assets; (ii) any Affiliate that controls, is controlled by, or is under common control with Anchorage; and (iii) any successor in a merger, acquisition, or reorganization, including any judicial reorganization, in each case but only if the successor or acquirer entity is a "qualified custodian" as defined under Investment Advisers Act of 1940, or chartered as a bank or trust company under U.S. state or federal law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11. <u>Use of Affiliates</u>. Anchorage may use Anchorage Affiliates to provide certain Services as directed by Anchorage. Without limiting the generality of the foregoing, Anchorage hereby discloses that it is a subsidiary of Anchor Labs, Inc., which provides certain technology and administrative services to Anchorage in support of Anchorage's provision of Services hereunder, pursuant to an Intercompany Services Agreement between Anchorage and Anchor Labs, Inc. Anchorage is, and will at all times be, responsible for the acts and omissions of its Affiliates, including Anchor Labs, Inc., and all provisions under this Agreement that are applicable to Anchorage will apply equally to its Affiliates, including Anchor Labs, Inc. For the avoidance of doubt, this section does not apply to Anchorage's use of a Vendor, Fiat Institution, or other service provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. <u>No Waiver of Contractual Right</u>. The failure of either Party to enforce any provision of this Agreement will not be construed as a waiver or limitation of that Party's right to subsequently enforce and compel strict compliance with every provision of this Agreement. A waiver or consent given on one occasion is effective only in that instance and will not be construed as a bar to or waiver of any other right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. <u>Governing Law</u>. Except to the extent, it is governed by federal banking Law and any other Laws referenced in this Agreement, this Agreement will be governed by and construed exclusively in accordance with the laws of the State of South Dakota, without regard to its conflicts of laws provisions or rules. Subject to Section 11, the Parties hereby agree to submit to the exclusive jurisdiction of any appropriate court located in the State of South Dakota or the United States District Court for South Dakota located in the city of Sioux Falls, South Dakota, as a forum for litigation. Each of the Parties hereto hereby waives all right to trial by jury in any lawsuit, action, proceeding or counterclaim arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. <u>Survival</u>. Any expiration or termination of this Agreement will not affect any accrued claims, rights or liabilities of Parties, and all provisions which must survive to fulfill their intended purposes, or by their nature are intended to survive such expiration or termination will survive, including Sections 2 - 12, and the Schedules.

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**SCHEDULE A DEFINITIONS**

"**Account**" means an account established in the name of, or for the benefit of a Client, in which the ownership of Digital Assets is recorded and to which Digital Assets are credited. Each Account is recorded separately on Anchorage's books and records and has one or more unique wallet addresses. An organization may have one or more Accounts, and an Account may have one or more Vaults. The Authorized Persons and Quorum requirements for each Account may differ from those of other Accounts.

"**Acceptable Device**" means a hardware device with software configuration set forth in Schedule B.

"**Affiliate**" means an entity controlling, controlled by or under common control with a Party.

"**Anchorage API"** means the application programming interface, as such may be modified from time to time, made available by Anchorage as part of the Services.

"**Annual Basis Points**" refers to the annual rate for custody fees. Monthly Custody Fees are

charged at the rate of one-twelfth of the listed annual rate.

"**AUC**" or "**Assets Under Custody**" means the average daily balance of Client Digital Assets in Anchorage's custody each month, calculated after the conclusion of each month, where the average daily balance is determined by adding each daily balance and dividing the sum of the daily balances by the number of days in such month (or in the case of the first month, by the number of days in such month following the Fees Commencement Date). Daily balances are calculated in U.S. Dollars by applying closing prices, as provided by CryptoCompare.com at the close of each day (UTC), or if unavailable, other reliable, reputable third party pricing sources, selected at Anchorage's sole discretion, to the end of day holdings in the Account. If such source(s)' closing prices for certain Digital Assets are unavailable, or Anchorage reasonably determines that such prices are unreliable due to low or inconsistent trading volumes, Anchorage may use fixed pricing for such Digital Assets, which will be determined in Anchorage's reasonable sole discretion*.*

 

"**Authenticated Instruction**" means a Direction (i) regarding specific Digital Assets; (ii) to add or remove Authorized Persons; (iii) to generate or remove, or change permissions for, Anchorage API keys; or (iv) which is otherwise provided for by the Services; by (a) an Authorized Person that has received Quorum approval (where such Quorum approval is required) or (b) an authorized application using an Anchorage API key (generated by an Authorized Person). Anchorage's authentication processes and procedures will be determined by Anchorage in its sole discretion from time to time, and will include biometric authentication for each Authorized Person, which may include but are not limited to fingerprint, facial recognition, or voiceprint. Where the purpose of an Authenticated Instruction relates to Digital Assets, such an Authenticated Instruction is an Entitlement Order for purposes of the UCC.

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"**Authorized Person**" means a person nominated by Client, or another party if so, contemplated by a Client Service Provider Agreement or Control Agreement, and thereafter approved by Anchorage pursuant to Section 2.1.

"**Basis Point**" means 1/100<sup>th</sup> of 1%.

"**Blockchain**" means software operating a distributed ledger which is maintained by a network of computers, and that records all transactions in a Digital Asset in theoretically unchangeable data packages known as blocks, each of which are timestamped to reference the previous block so that the blocks are linked in a chain that evidences the entire history of transactions in the Digital Asset.

"**Client Data**" means any or all of the following, and all copies thereof, regardless of the form or media: (i) Personal Information of Client or an Authorized Person; and (ii) any non-public data or information provided or submitted by or on behalf of Client or an Authorized Person as part of the Services.

"**Confidential Information**" means information and technical data, which is not generally known to the public, whether disclosed directly or indirectly, in writing, orally, or visually, that the Receiving Party knows or should know is confidential or proprietary. Examples of Confidential Information include, but are not limited to, a Party's products, software, websites, apps, marketing plans and materials, business strategies, business methods, models, financial reports or projections, product plans and specifications, designs, processes, manuals, ideas, concepts, drawings, pricing, fees, operational plans, know-how, employee information, shareholder information, vendor information, customer information, and ownership or investor information.

"**Digital Asset**" means a digital representation of value that may function as a medium of exchange or medium for investment, and which is evidenced on, and can be electronically received and stored using distributed ledger technology. For the avoidance of doubt, Digital Assets held by Anchorage for the Client are "Financial Assets" for purposes of the UCC and are not assets of Anchorage.

"**Direction**" means any directions, instructions or requests made by Client through the Services, including but not limited to Authenticated Instructions, through the Anchorage application made by Authorized Persons, or the Anchorage API, relating to the storage or transfer of Digital Assets.

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"**Documentation**" means all Client manuals, training and marketing materials, guides, product descriptions, product specifications, technical manuals, supporting materials, and other information relating to the Services and provided by Anchorage to Client.

"**Fee**" has the meaning provided in the Order Form.

"**Fiat Services**" means services related to the custody, management, and Directions related to fiat currencies owned by Client and held for Client's benefit by Anchorage, including (i) holding Client's fiat currency in an omnibus banking account held for the benefit of Anchorage's clients, and (ii) transferring Client's fiat currency as directed by Client, a Client Service Provider or other Client designee.

"**Force Majeure Event**" means an event, including, but not limited to natural catastrophes, fire, explosions, pandemic or local epidemic, war or other action by a state actor, public power outages, civil unrests and conflicts, labor strikes or extreme shortages, acts of terrorism or

espionage, Domain Name System server issues outside a Party's direct control, technology attacks (e.g., DoS, DDoS, MitM), cyberattack or malfunction on the blockchain network or protocol, or governmental action rendering performance illegal or impossible, occurring after

the Effective Date and that is caused by a circumstance beyond a Party's reasonable control and

that could not have been prevented or avoided by the exercise of due diligence.

"**Fork**" means (i) that a Digital Asset network has been changed in a way that makes it incompatible with the unchanged version of the Digital Asset network, (ii) a material population of miners and/or users of the Digital Asset network accept the changes, and (iii) that the two resulting Digital Asset networks have not been merged together in a timely manner. A Fork may create two separate Digital Asset networks (each, a "**Forked Network**"), and may result in Anchorage holding an identical amount of Digital Assets associated with each Forked Network.

"**Intellectual Property Right(s)**" means, with respect to any thing, material or work (hereinafter, a "**Work**"): any and all (i) worldwide copyrights, trademarks, trade secrets and any other intellectual property and proprietary rights and legal protections in and to such Work including but not limited to all rights under treaties and conventions and applications related to any of the foregoing; (ii) all patents, patent applications, registrations and rights to make applications and registrations for the foregoing; (iii) all goodwill associated with the foregoing; (iv) all renewals, extensions, reversions or restorations of all such rights; (v) all works based upon, derived from, or incorporating the Work; (vi) all income, royalties, damages, claims, and payments now or hereafter due or payable with respect thereto; (vii) all causes of action, either in law or in equity for past, present or future infringement based on the Work; (viii) rights corresponding to each of the foregoing throughout the world; and (ix) all the rights embraced or embodied therein, including but not limited to, the right to duplicate, reproduce, copy, distribute, publicly perform, display, license, adapt, prepare derivative works from the Work, together with all physical or tangible embodiments of the Work.

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"**Laws**" means all United States federal, state and local laws, statutes, ordinances, regulations, rules, executive orders, circulars, opinions, agency guidance, interpretive letters and other official releases, request, or recommendation of or by any government, or any authority, department or agency thereof.

**"Monthly Custody Fee"** means (Annual Basis Points x AUC)/12 as calculated using the fee table in the Order Form.

**"Monthly Minimum Fee"** refers to the fees as agreed by Parties in the Order Form.

"**Monthly NFT Custody Fee**" means as provided in the Order Form or as agreed by Client in the Anchorage Technology Platform, provided that if there is any discrepancy between such Fees, the Fees stated in the Order Form shall govern.

"**NFT**" or "**Non-Fungible Token**" means a digital representation of value which is evidenced in a Blockchain and is used to certify authenticity and ownership of specific Digital Assets. For all purposes of this Agreement (except where specifically addressed), NFTs are included within the definition of "Digital Asset" herein and are deemed a type of Digital Asset.

"**NFT AUC**" means the average daily balance of Client NFTs in Anchorage's custody each month, calculated after the conclusion of each month, where the average daily balance is determined by adding each daily balance from the applicable month and dividing the sum of the daily balances by the number of days in such month (or in the case of the first month, by the number of days in such month following the Fees Commencement Date). Daily balances are calculated in U.S. Dollars based on the corresponding NFT collection floor price. NFT collection floor price means the lowest listed price of any NFT within a collection at a given time, as determined by Anchorage at its sole discretion, provided that such floor price may be subject to change when a reliable, reputable third party pricing source, selected at Anchorage's sole discretion, becomes available.

"**Obligations**" mean in respect of Client, all present and future obligations and liabilities of Client (whether or not matured, unmatured, liquidated, unliquidated, fixed or contingent and irrespective of the currency of such obligations) to Anchorage and each Anchorage Affiliate, as applicable, under this Agreement and any other agreement.

"**On-Chain Services**" has the meaning set forth in Section 2.4.

"**One-Time Onboarding Fee**" refers to the fees for establishing Client as an Anchorage customer, including KYC/AML processes; one in-person training session; Authorized Person onboarding; and remote training for up to ten (10) individuals. Credit, if any, may be applied to Client Fees only above the Monthly Minimum Fee, and will be applied fully each month until the credit has been fully expended within the Initial Term. Any remaining credit after the Initial Term shall be forfeited.

"**Personal Data Breach**" has the meaning provided for in the Data Processing Addendum.

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"**Personal Information**" means any information relating to an identified or identifiable individual, such as name, postal address, email address, telephone number, date of birth, Social Security number (or its equivalent), driver's license number, account number, personal identification number, health or medical information, fingerprint, voice print, or any other unique logical or biometric identifier specific to an individual, regardless of the media in which it is contained, that is: (i) disclosed to Anchorage, its Affiliates or Anchorage Representatives by Client or an Authorized Person in anticipation of, in connection with or incidental to the Services; (ii) processed at any time by Anchorage, an Anchorage Affiliate or Anchorage Representatives in connection with or incidental to the performance of its obligations under this Agreement; or (iii) derived by Anchorage, an Anchorage Affiliate or Anchorage Representatives from the information described in (i) and (ii) above.

"**Private Key**" means an alphanumeric string known only to the holder of a Digital Asset, which must be used to transact the Digital Asset represented by the corresponding Public Key.

"**Public Key**" means an alphanumeric string on a Blockchain that indicates ownership/possession of a specific amount of a Digital Asset by a specific network participant. The Public Key is visible to all participants in the Blockchain's network.

"**Quorum**" means the minimum number of Authorized Persons required to approve a Direction which requires a quorum. Unless otherwise specified in an applicable Client Service Provider Agreement, Control Agreement, or instructions provided in connection therewith, (i) Client may designate the total number and the minimum number of Authorized Persons required to approve an Authenticated Instruction or other Direction so long as Client designates at least three (3) Authorized Persons, with at least two (2) required to approve any Direction.

"**Representative**" means any employees, officers, directors, representatives, contractors, and agents of a Party.

"**SDCL**" means South Dakota Codified Laws.

"**Services**" means the services related to the custody and settlement of Digital Assets provided by Anchorage to Client under this Agreement (including any attachments, schedules, exhibits, or addendums), including the Technology Platform and Support Services. "Services" also includes Fiat Services or On-Chain Services if Anchorage has offered such services to Client, and Client has accepted such services. For the avoidance of doubt, "Services" expressly excludes the provision of legal, tax, brokerage, or investment advice or recommendations.

**"Support Services"** means services supporting the use of the Services, including access to Anchorage Representatives for support related to Account(s), training, etc.

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"**Technology Platform**" means the technology platform and application provided by Anchorage and made available to Client to access the Services and Account(s), including the Anchorage API, and any changes, improvements, extensions thereto or other versions thereof in order to: (i) store Client's Digital Assets and provide related services; (ii) handle Digital Assets according to Authenticated Instructions; and (iii) determine the eligibility of Digital Assets for storage and continued storage. The Technology Platform includes but is not limited to (i) algorithms, computer programs, concepts, ideas, inventions, machines, mask works, procedures, processes, rates, security codes, and works of authorship in all cases whether or not patentable or copyrightable, that are owned or in-licensed by Anchorage or that otherwise are or have been created, developed, owned, incorporated or generated, in whole or in part, by or on behalf of Anchorage for or into or in connection with features, functions, tools or services to be provided pursuant to this Agreement, (ii) all data and other information that are or can be collected, compiled, or derived by or on behalf of Anchorage from any usage by Client or any other person of any work, invention, or other subject matter referred to in the foregoing, and (iii) any work, invention, or other subject matter that constitutes or relates to a suggestion, enhancement, modification, improvement, upgrade, or update regarding, or that is otherwise based on or derived from or related to, any work, invention, or other subject matter referred to in this the foregoing.

"**Third Party**" means a person(s) or any legal entity that is not a Party, a Representative of a Party, or an Affiliate of a Party.

"**UUC**" or "**Units Under Custody**" means the average daily quantity of Client Digital Assets in Anchorage's custody each month, calculated after the conclusion of each month, where the average daily quantity is determined by adding each daily quantity and dividing the sum of the daily quantity amounts by the number of days in such month (or in the case of the first month, by the number of days in such month following the Fees Commencement Date). The first invoice will be sent after the end of the calendar month including the Fees Commencement Date, unless otherwise agreed in writing by the Parties.

"**Vault**" means a subdivision of an Account. Each Vault is held separately on Anchorage's books and records and may have one or more unique wallet addresses. The Authorized Persons and Quorum requirements for each Vault may differ from those of other Vaults.

"**Vendor**" means any Third Party retained by Anchorage or its Affiliates to provide technical or professional services used by Anchorage or its Affiliates to provide the Services to Client.

"**Vesting Schedule**" shall mean a schedule provided by the Token Issuer which determines when the Restricted Assets will become available for Client to withdraw from their Account or Vault.

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**SCHEDULE B<br> **TECHNICAL AND EQUIPMENT SPECIFICATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;1. Acceptable Device.

As to each nominated Authorized Person, a unique iPhone with TouchID or FaceID is required for the Services and must meet the minimum iPhone model as required by Anchorage.

*Note: The iPhone SE is specifically excluded from the list of compatible devices. Anchorage also reserves the right, upon notice to Client, to exclude new iPhone versions for a brief period as Anchorage deems necessary in its sole discretion (such as to ensure that the new software and/or device is operable with the Anchorage application and systems, is secure, and free from material bugs).*

 

&nbsp;&nbsp;&nbsp;&nbsp;2. Software Specifications.

As to each Acceptable Device of each nominated Authorized Person, the operating system must meet the minimum iOS version as required by Anchorage.

&nbsp;&nbsp;&nbsp;&nbsp;3. Changes to Schedule B.

Anchorage may, in its sole discretion, amend the Acceptable Device and Software Specification requirements in this Schedule B for security or service purposes, at any time. Anchorage agrees to use commercially reasonable efforts to provide Client prior notice of any such amendment. Upon amendment of any Acceptable Device and Software Specification requirements, as provided hereunder, Client will update and/or replace the Acceptable Device(s) as may be necessary, at its sole expense. Client understands and agrees that ongoing access to the Services will depend on compliance with Anchorage Acceptable Device and Software Specification requirements.

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## Exhibit 10.12

**Exhibit 10.12**

**CONFIDENTIAL**

CUSTODIAL SERVICES AGREEMENT

Ionic Digital Treasury Inc. &

Fidelity Digital Asset Services, LLC

**THIS CUSTODIAL SERVICES AGREEMENT** (this "***Agreement***") is made on June 18, 2024, (the "***Effective Date***"), by and between Ionic Digital Treasury Inc. (the "***Client***"), and Fidelity Digital Asset Services, LLC (the "***Custodian***", and collectively with the Client, the "***Parties***," and each individually, a "***Party***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. DEFINITIONS AND INTERPRETATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Definitions.** For purposes of this Agreement and any exhibit or schedule hereto, the following terms
shall have the meanings ascribed to them below:

"***Account Tax Documentation***" has the meaning set forth in Section 7.B.

"***Affiliated Agent***" has the meaning set forth in Section 12.C.iii.

"***Assets***" means Cash and Eligible Assets that have been Delivered to the Custodian to be credited to one or more Custody Accounts established and maintained by the Custodian on behalf of the Client, in each case until such Assets are withdrawn or cease to be Assets pursuant to this Agreement. Assets shall also mean any Forked Digital Asset that the Custodian, in its sole discretion, chooses to support pursuant to Section 8 hereof.

"***Authenticated Instruction***" means an Instruction that has been confirmed as originating from an Authorized Person through a video conference call, the use of a mobile phone application or hardware security module or other method of authentication in accordance with procedures specified by the Custodian from time to time as required to be used in connection with the services hereunder.

"***Authorized Agent***" [not applicable].

"***Authorized Person***" has the meaning set forth in Section 5.A.

"***Blockchain Address***" means a public address on a blockchain in which a record of Eligible Assets can be held (including, without limitation, a bitcoin address for the asset commonly known as bitcoin).

"***Business Day***" means any day on which the Federal Reserve Bank of New York is open for business.

"***Cash***" has the meaning set forth in Section 2.A.ii.

"***Cash Credit Request****"* has the meaning set forth in Section 3.D.

"***Cash Custody Account****"* has the meaning set forth in Section 2.A.ii.

"***Cash Debit Request****"* has the meaning set forth in Section 3.E.

"***Client Digital Assets****"* has the meaning set forth in Section 2.B.i.

*"**Confidential Information**"* has the meaning set forth in Section 18.

"***Custody Account****"* has the meaning set forth in Section 2.A.ii.

"***Cut-Off Time****"* has the meaning set forth in Section 5.G.

"***Delivery***" (or "***Deliver***" or "***Delivered***") means the transfer of Eligible Assets to one or more Blockchain Addresses controlled by the receiving Party and provided by the receiving Party to the sending Party for such transfer. Eligible Assets shall be considered Delivered to the Custodian after the prevailing number of network confirmations as required by the Custodian from time to time have occurred on the blockchain used for the transaction transferring the Eligible Assets.

"***Digital Asset***" means a digital asset (also called a "cryptocurrency," "virtual currency," "digital currency," or "digital commodity"), such as bitcoin, which is based on the cryptographic protocol of a computer network that may be (i) centralized or decentralized, (ii) closed or open-source, and (iii) used as a medium of exchange and/or store of value.

 

*"**Digital Asset Credit Request**"* has the meaning set forth in Section 3.A.

*"**Digital Asset Debit Request**"* has the meaning set forth in Section 3.B.

"***Digital Asset Custody Account***" has the meaning set forth in Section 2.A.i.

"***Eligible Assets***" mean Digital Assets that are supported by the Custodian in its sole discretion on any given date in accordance with Section 2.C.

"***Fee Schedule***" means the schedule referred to in Section 12.D.i, as annexed hereto.

"***Force MaJeure Event***" means any event due directly or indirectly to any cause or condition beyond the reasonable control of the Custodian that materially affects its ability to perform its obligations hereunder, such as, but not limited to: changes in the functioning or features of Eligible Assets or the software protocols that govern their operation; sabotage or fraudulent manipulation of the protocols or network that govern Eligible Assets; changes in applicable Law; cybersecurity attacks, hacks or other intrusions; unavailability or malfunction of wire, communications or other technological systems; suspension or disruption of trading markets; requisitions; involuntary transfers; failure of utility services; fire; flooding; adverse weather or events of nature; explosions; acts of God, civil commotion, strikes or industrial action of any kind; riots, insurrection, terrorist acts; war (whether declared or undeclared); or acts of government or government agencies (U.S. or foreign).

"***Fork***" means a change in the consensus rules of a network for a Digital Asset, as further described in <u>Schedule 3</u>.

"***Forked Digital Asset***" means the resulting branches of a Digital Asset that has undergone a Fork.

"***Governmental Authority***" means any governmental body at the supranational, national, state, county, province, city, municipal, local or any other level, any agency, authority, instrumentality, regulatory body, quasi-regulatory authority, administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other entity or subdivision exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of government, securities exchange or self-regulatory organization, in each case in any jurisdiction, having authority over a party.

"***Ineligibility Determination***" has the meaning set forth in Section 2.C.

"***Instructions***" mean communications received by the Custodian through an on-line communication system, by e-mail, or other method or system, as specified by the Custodian from time to time as available for use in connection with the services hereunder.

"***Law***" means each of the following, including any updates thereto throughout the Term, to the extent applicable to a party: any and all supranational, national, state, provincial or local laws, treaties, rules, regulations, regulatory guidance, directives, policies, orders or determinations of (or agreements with), and mandatory written direction from (or agreements with), any Governmental Authority or other regulatory authority, including export laws, sanctions regulations, and all federal and state statutes or regulations relating to banking, stored value, money transmission, unclaimed property, payment processing, telecommunications, unfair or deceptive trade practices or acts, anti-corruption, trade compliance, anti-money laundering, terrorist financing, "know your customer," securities, commodities, derivatives, other financial products or services, privacy or data security.

 

*"**Non-U.S. Bank**"* has the meaning set forth in Section 11.B.xi.

 

*"**Omnibus Wallet**"* has the meaning set forth in Section 2.B.i.

"***Person***" means any natural person, corporation, general partnership, limited partnership, limited liability company, joint venture, trust, proprietorship, governmental body or other entity, association or organization of any nature. Any reference herein to any Person shall be construed to include such Person's successors and assigns.

"***Proper Instructions***" has the meaning set forth in Section 5.B.

*"**Sanctioned Party**"* has the meaning set forth in Section 11.B.viii. *"**Sanctions**"* has the meaning set forth in Section 11.B.viii.

*"**System Failure**"* means a failure of any computer hardware or software used by the Custodian or a service provider to the Custodian, or any telecommunications lines or devices used by the Custodian or a service provider to the Custodian.

"***Taxes***" means all federal, state, local, foreign, and other taxes, government fees or the like, including, without limitation, income taxes, estimated taxes, alternative minimum taxes, franchise taxes, capital stock taxes, sales taxes, use taxes, ad valorem, or value-added taxes, employment and payroll-related taxes, withholding taxes, and transfer taxes, whether or not measured in whole or in part by net income, and all deficiencies, or other additions to tax, interest thereon, and fines and penalties imposed in connection therewith.

 

*"**Term**"* has the meaning set forth in Section 20.

 

*"**Trade Order**"* has the meaning set forth in Section 4.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Interpretation**. The words "hereof," "herein" and "hereunder"
and words of like import used in this Agreement will refer to this Agreement as a whole and not to any particular provision of this Agreement.
References to Sections, Exhibits, Appendices and Schedules are to Sections, Exhibits, Appendices and Schedules of this Agreement unless
otherwise specified. All Exhibits, Appendices and Schedules annexed hereto or referred to herein are hereby incorporated in and made a
part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit, Appendix or Schedule but not
otherwise defined therein, will have the meaning as defined in this Agreement. Any singular term in this Agreement will be deemed to include
the plural, and any plural term the singular. Whenever the words "such as," "include," "includes"
or "including" are used in this Agreement, they will be deemed to be followed by the words "without limitation,"
whether or not they are in fact. The word "will" shall be construed to have the same meaning and effect as the word "shall."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ESTABLISHMENT AND MAINTENANCE OF CUSTODY ACCOUNTS AND APPOINTMENT
OF CUSTODIAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Custody Accounts.** The Client authorizes, approves and directs the Custodian to establish and maintain on its books, in the
name of the Client, pursuant to 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;i. one or more custody accounts for the receipt, safekeeping and maintenance of Eligible Assets (each a "  ***Digital Asset Custody Account*** "); 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;ii. one or more U.S. dollar cash accounts (each a "  ***Cash Custody Account*** ", and, together
with the Digital Asset Custody Accounts, the "  ***Custody Account*** "), each corresponding to a Digital Asset Custody
Account, to hold cash and monies received for deposit for the account of the Client ("  ***Cash***") in accordance with
the terms of this Agreement. Cash held for the Client in Cash Custody Accounts may be held by the Custodian in an omnibus, non-interest
bearing cash account, along with the Cash of other customers of the Custodian, at an unaffiliated depository in the name of the Custodian,
specifically designated for the purpose of holding funds of the Custodian's customers. The Custodian may hold Cash in a Cash Custody
Account subject to and in accordance with applicable local law, rules or practices. The establishment of the Custody Account in the name
of the Client shall be subject to successful completion of the Custodian's screening procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Digital Asset Segregation.

&nbsp;&nbsp;&nbsp;&nbsp;&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. Digital Assets in the Digital Asset Custody Account will be held through an omnibus wallet structure along
with the Digital Assets of other customers of the Custodian (an "  ***Omnibus Wallet*** "). The Client agrees that the
Digital Assets that are transferred by the Client to the Custodian or acquired by the Client through Trade Orders ("  ***Client Digital Assets***") will be treated as fungible with those Digital Assets of other clients of the Custodian that are based
on the same cryptographic protocol or consensus rules of a computer network (subject to Schedule 3) that are also held in the Omnibus
Wallet by the Custodian on behalf of such other clients. The Client acknowledges that the redelivery rights of the Client in respect of
the Client Digital Assets are not necessarily for the same Digital Assets as the Client Digital Assets (or addresses or accounts that
are associated with the Client Digital Asset), but rather will be in respect of an equal amount of Digital Assets that are based on the
same cryptographic protocol or consensus rules of a computer network (subject to Schedule 3) as the Client Digital Asset. The Custodian
will manage all associated private keys on behalf of the Client, subject to 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;ii. A portion of the Digital Assets held for clients in the Omnibus Wallet will be held within an offline
storage system used by the Custodian in connection with the storage or maintenance of the Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Acceptance and Holding of Assets.** The Custodian will determine in its sole discretion whether to
accept Assets of any kind for custody in the Custody Account. If the Custodian determines in its sole discretion that, due to legal, regulatory,
operational, security or reputational risk, an Asset currently held in custody is no longer an Eligible Asset ("  ***Ineligibility Determination*** "), the Custodian shall (i) deliver the Client written notice of such Ineligibility Determination, (ii) provide
no other services with respect to any such Asset, except for Digital Asset Debit Requests and the services described in this Section 2,
following such Ineligibility Determination and (iii) within 60 Business Days, or if that is not reasonably practicable, as promptly as
reasonably practicable, of the delivery of the Ineligibility Determination, Deliver Digital Assets that are of the same type as the Client
Digital Assets (as set forth in Section 2.B.i) in the amount of the Digital Assets subject to the Ineligibility Determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Designation of Assets.** The Custodian shall on its books and records segregate all Digital Assets
from the proprietary property of the Custodian; <u>provided</u> that the Custodian may maintain in the Omnibus Wallet an amount of proprietary
Digital Assets that are used for operational or other purposes. The ownership of all of the Client's Assets shall be clearly recorded
in the Custodian's books and records as belonging to the Client. Without the consent of the Client, the Custodian will not lend,
pledge or hypothecate any Client Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Status of Custodian**. The Custodian is a limited liability company and its capacity under this Agreement
shall 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;i. a bailee with respect to any Digital Asset Custody Account and any Digital Assets in such Digital Asset
Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&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. an agent for the exclusive benefit of the Client and other customers of the Custodian with respect to
any Cash Custody Account and any cash deposits in such Cash Custody Account, subject to Section 12.C.vii; 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;iii. agent or principal with respect to any actions taken by the Custodian with respect to the purchase and
sale services pursuant to Section 4 of this Agreement, subject to Section 12.C.vii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. TRANSFER OF ASSETS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Credits to the Digital Asset Custody Account.** Subject to the terms of this Agreement, the Client
may transfer Eligible Assets from an external provider or other third parties to the Digital Asset Custody Account. In advance of any
such transfer from an external provider or other third party, the Client shall send the Custodian the applicable Proper Instructions in
accordance with Section 5.B (a "  ***Digital Asset Credit Request***") and the name of the owner(s) of the Digital Assets.
The Custodian is not obligated to credit any Digital Assets to the Digital Asset Custody Account before the Custodian actually receives
such Digital Assets by final settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Digital Asset Credit Request and verifying that such request complies
with Section 5.B, will generate and deliver to the Client a recipient address and complete any Delivery to the Digital Asset Custody Account
within two (2) Business Days after receipt of the Digital Assets at the recipient address specified by the Custodian to the Client (or
at an address previously specified by the Custodian to the Client and not subsequently identified to the Client as invalid), subject to
successful completion of the Custodian's screening procedures. Delivery to the Digital Asset Custody Account is subject to the payment
of the Custodian's fees as specified in the Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian shall monitor associated nodes, as determined to be necessary by the Custodian in its sole
discretion, for incoming transactions. The Custodian shall advise the Client of Eligible Assets availability after Eligible Assets have
been Delivered to the Digital Asset Custody Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Debits to the Digital Asset Custody Account**. Subject to the terms of this Agreement, the Client
may Deliver Eligible Assets from the Digital Asset Custody Account by sending the Custodian the applicable Proper Instructions in accordance
with Section 5.B (a "  ***Digital Asset Debit Request*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Digital Asset Debit Request and verifying that such request complies
with Section 5.B, will initiate the transfer and broadcast the Digital Asset Debit Requests to the blockchain supporting the relevant
Eligible Asset within two (2) Business Days after the Custodian receives such Digital Asset Debit Request, subject to successful completion
of the Custodian's screening procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian shall provide the Client with a confirmation of a pending debit transaction. Within the
three (3) hours immediately following receipt of such confirmation, the Client may notify the Custodian to query or halt the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. If the Custodian has received a Digital Asset Debit Request that would result in the transfer of Assets
from the Custody Account exceeding the credit to the Custody Account for that Asset, the Custodian may, in its sole and absolute discretion,
reject such Instructions or decide which deliveries it will make (in whole or in part and in the order it selects).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Request for Additional Information.** The Client shall promptly provide to the Custodian such additional
information as the Custodian may request regarding the source or ownership of the Eligible Assets that are subject to a Digital Asset
Credit Request or the recipient of Eligible Assets (and any associated financial institution) that are the subject of a Digital Asset
Debit Request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **Credits to the Cash Custody Account**. Subject to the terms of this Agreement, the Client may transfer
Cash into the Client's Cash Custody Account from a third-party bank account or a third party by sending the Custodian the applicable
Proper Instructions in accordance with Section 5.B (a "  ***Cash Credit Request*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Cash Credit Request and verifying that such request complies with Section
5. B, will complete any transfer to the Cash Custody Account within the time period specified by the Custodian. Transfers to the Cash Custody
Account are subject to fees specified in the Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **Debits to the Cash Custody Account**. Subject to the terms of this Agreement, the Client may transfer
Cash from the Cash Custody Account to an account at a third-party bank established and maintained in the name of the Client or in the
name of a third party in connection with the Client's purchase of Digital Assets by sending the Custodian the applicable Proper
Instructions in accordance with Section 5.B (a "  ***Cash Debit Request*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Custodian, upon receiving the Cash Debit Request and verifying that such request complies with Section
5. B, will complete any transfer from the Cash Custody Account within the time period specified by the Custodian. Transfers
from the Cash Custody Account are subject to fees specified in the Fee Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Such transfer may only be effected via wire transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Purpose of Transfer of Cash**. Any transfer of Cash to or from the Client's Cash Custody Account
requested by the Client pursuant to this Agreement shall be solely for the purpose of the settlement of transactions that are the subject
of the Client's Digital Asset Credit Request or Digital Asset Debit Request, to transfer Cash to an account at a third-party bank
established and maintained in the name of the Client or to pay fees or expenses of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Investment in and Transfer of Assets**. The Client shall bear the sole risk and expense associated
with investing, transferring or otherwise transacting in respect of Digital Assets (except to the extent otherwise specifically provided
in this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **Transaction Limits**. The Custodian may, for risk management or other reasons, impose reasonable
limits on the number or size, or both, of transactions processed for the Client under this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. PURCHASE AND SALE OF DIGITAL ASSETS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Role of Custodian**. The Custodian may purchase any Digital Assets constituting Eligible Assets from
the Client or sell any such Digital Assets to the Client upon receipt of a sale or purchase order in the form of Proper Instructions from
the Client ("  ***Trade Orders*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Execution and Order Fulfillment**. The Custodian will execute and fulfill the Client's Trade
Orders in accordance with the terms set forth in <u>Schedule 2</u> attached hereto, as such terms and procedures may be modified by the
Custodian from time to time. THE CUSTODIAN'S EXECUTION AND SETTLEMENT OF TRADE ORDERS IS SUBJECT TO AVAILABLE LIQUIDITY AND MARKET
CONDITIONS GENERALLY. THE CUSTODIAN RESERVES THE RIGHT TO CANCEL OR REJECT ANY TRADE ORDER, IN WHOLE OR IN PART, FOR ANY REASON.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. INSTRUCTIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Authorized Persons and Authorized Agents**. The Persons identified as "Authorized Persons"
on the Firm Authorized User Form(s) completed by the Client or the Authorized Agent shall, subject to approval by the Custodian, be authorized
to act on behalf of the Client in the performance of those acts or duties specified for each such person from time to time in the Firm
Authorized User Form(s) ("  ***Authorized Persons*** "). The Client, or Authorized Agent acting on behalf of the Client,
may, from time to time, add to or remove names from the list of Authorized Persons maintained by the Custodian, or change the authorizations
granted to any Authorized Person, by delivery of a new or revised Firm Authorized User Form to the Custodian. If at any time there are
no Authorized Persons designated by the Client or the Authorized Agent, the president/chief executive officer and chief financial officer
of the Client shall be deemed Authorized Persons hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Proper Instructions .

&nbsp;&nbsp;&nbsp;&nbsp;&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. "Proper Instructions" mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) With respect to Digital Assets Debit Requests or Cash Debit Requests, an Authenticated Instruction delivered
by an Authorized Person (or Person that the Custodian believes in good faith to be an Authorized Person after following Custodian's
procedures) that is confirmed by an Authenticated Instruction from at least one additional Authorized Person (or Person that the Custodian
believes in good faith to be an Authorized Person after following Custodian's procedures);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) With respect to Digital Assets Credit Requests or Cash Credit Requests, an Authenticated Instruction delivered
by an Authorized Person (or Person that the Custodian believes in good faith to be an Authorized Person after following Custodian's
procedures);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) With respect to Trade Orders, an Instruction delivered by an Authorized Person (or Person that the Custodian
believes in good faith to be an Authorized Person after following Custodian's procedures) through the user interface specified by
the Custodian to submit Trade Orders; 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;d) With respect to requests not involving the transfer of Assets from or to the Custody Account, an Instruction
delivered by an Authorized Person (or Person that the Custodian believes in good faith to be an Authorized Person after following Custodian's
procedures).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian may act upon and rely upon any Proper Instruction received from, or believed in good faith
by the Custodian to be received from, an Authorized Person, that have been validated in accordance with procedures in place from time
to time, unless or until the Custodian has (i) received written notice of any change thereto from the Client and (ii) had a reasonable
time to note and implement such change. Validation procedures used by the Custodian are designed only to verify the source of the Instruction
and not to detect errors in the content of that Instruction or to prevent duplicate Instructions. The Client agrees that the Custodian
shall have no obligation to act in accordance with purported Instructions to the extent that they conflict with applicable Law. The Custodian
shall not be liable for any loss resulting from a delay while it obtains clarification of any Proper Instructions. The Client agrees that
the Custodian is not responsible for any errors made by the Client, any errors resulting, directly or indirectly, from fraud or the duplication
of any Instruction by or on behalf of the Client, or any losses resulting from the malfunctioning of any devices used by the Client or
any Authorized Person or loss or compromise of credentials used by the Client or any Authorized Person to deliver Instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Rejection of Instruction**. The Custodian may reject or decide, in its sole and absolute discretion,
not to act on any Instruction to transfer Eligible Assets (i) based on the Custodian's applicable policies and procedures, including
the results of the Custodian's transaction monitoring and screening procedures, (ii) where it reasonably doubts such Instruction's
contents, authorization, origination or compliance with the Custodian's policies and procedures, (iii) where it reasonably believes
that acting on the Instruction could (a) require it to register or qualify as a regulated entity, (b) violate or facilitate the violation
of any Law or (c) subject the Custodian to any financial or other liability for which it has not been provided adequate indemnification,
and, in each case, the Custodian covenants to promptly notify the Client of its decision in such instance if permitted to do so by Law,
or (iv) in order to give effect to transaction limits imposed in accordance with Section 3.H. In the event the Custodian shall receive
conflicting Instructions from the Client or any Authorized Person, the Custodian
shall be entitled, at its option, to refrain from taking action until such conflicting Instructions are reconciled to its reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Responsibility for Instructions**. The Client is responsible for any Instructions actually given
to the Custodian or on which the Custodian is entitled to rely hereunder, whether or not properly authorized by the Client after following
Custodian's procedures. The Custodian shall have no duty or responsibility to inquire into, make recommendations, or determine the
suitability of any Instructions or transactions affecting the Custody Account after following Custodian's procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Acknowledgment of Risk**. The Client expressly acknowledges and agrees that the use of electronic
communication systems to convey Instructions does not eliminate the risk of error and fraudulent activities or security and privacy issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **English**. Instructions are to be given in the English language only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Cut-Off Times**. The Custodian may act on Instructions only within applicable cut-off times specified
by the Custodian from time to time on Business Days when the Custodian is open for business in the ordinary course (a "  ***Cut-Off Time*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. PERFORMANCE BY THE CUSTODIAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Custodial Duties Requiring Instructions.** The Custodian shall carry out any of the following actions
only upon receipt of specific Instructions, delivered in accordance with Section 5, authorizing and requesting same:

&nbsp;&nbsp;&nbsp;&nbsp;&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. Receive or deliver any Assets, except as otherwise specifically 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;&nbsp;&nbsp;&nbsp;&nbsp;ii. Carry out any action affecting Assets and the Custody Account, other than those specified in Section 6.B
below; provided, however, that each instance shall be subject to the prior approval and agreement of the Custodian; provided further,
that all Instructions regarding Forked Digital Assets are subject to Section 8 of this Agreement; 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;iii. Transfer Assets in connection with the services described in Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Non-Discretionary Custodial Duties**. Absent a contrary Instruction, the Custodian shall be permitted,
and is hereby authorized and directed by Client to, and may authorize subcustodians or depositories to, carry out any of the following
actions without any further Instructions or approval by or on behalf of Client:

&nbsp;&nbsp;&nbsp;&nbsp;&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. In the Client's name or on its behalf, sign any affidavits, certificates of ownership and other
certificates and documents relating to Assets which may be required (a) to obtain any Assets, or (b) by any tax or regulatory authority
having jurisdiction over the Assets or the Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&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. Notify the Client of notices, circulars, reports and announcements that require discretionary action,
in each case, which the Custodian has received in the course of acting in the capacity of custodian of any Assets held on the Client's
behalf; 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;iii. Attend to all non-discretionary matters in connection with anything provided in this Section 6.B or any
Instruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Use of Third Parties.

The Custodian may perform any of its duties or obligations under this Agreement through depositories, subcustodians, subcontractors or agents (including its affiliates), whenever and on such terms and conditions as it deems necessary or advisable to perform such duties or obligations or liabilities.

The Custodian shall act in good faith and use reasonable care in the selection and continued appointment of unaffiliated depositories, subcustodians, subcontractors or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Reporting**. The Custodian will provide to Client monthly account statements identifying the Digital
Assets in the Custody Account on a monthly basis and setting forth all transactions in the Custody Account during such month. Upon written
request from the Authorized Agent, the Custodian will also provide copies of monthly account statements to the Authorized Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Security of Assets**. The Custodian may take such steps that it determines, in its sole discretion,
may be necessary or advisable to inspect and protect the security of the Assets, the Custody Account or the Omnibus Wallet or enhance
the Custodian's ability to secure the Assets or the Omnibus Wallet, including cancelling, interrupting, terminating or suspending
any or all of the Custodian's services and operations hereunder and the Client's access to the Custodian's services and operations, to
any Assets or to the Custody Accounts. The Custodian may from time to time review and amend its policies and procedures or impose such
additional policies and procedures as the Custodian, in its sole discretion, considers necessary or advisable to enhance the Custodian's
ability to secure the Assets or the Omnibus Wallet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. TAXATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Client's Tax Obligations**. The Client shall, for all tax purposes, be treated as the owner
of all Assets held by the Custodian pursuant to this Agreement. It is the Client's sole responsibility to determine whether and
to what extent Taxes and Tax reporting obligations may apply to the Client with respect to its Assets, Custody Accounts, and transactions,
and the Client shall timely pay all such Taxes and shall file all returns, reports, and disclosures required by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Tax Information**. Upon execution of this Agreement, as well as upon request of the Custodian, the
 Client will promptly provide the Custodian with all forms, certifications, documentation, representations and warranties and any
 other information as the Custodian may request ("  ***Account Tax Documentation*** "), including a duly completed
 and executed W-9 or W-8 (both available at www.irs.gov), as applicable, as to the Client's and/or the Client's
 underlying beneficial owners' tax status and/or residence. The Client
warrants that, when given, such Account Tax Documentation is true, complete and correct. If any such Account Tax Documentation becomes
inaccurate, incorrect or obsolete, the Client will notify the Custodian immediately and promptly provide updated Account Tax Documentation.
The Client understands that the Custodian may disclose any information with respect to Client Assets, Custody Accounts and transactions
required or requested by any applicable taxing authority or other governmental entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Payments; Indemnity.** Custodian is authorized to deduct and/or withhold Taxes, including Taxes arising
as a result of the Client's failure to provide Account Tax Documentation pursuant to Section 7.B above, from Client's
Assets, Custody Account or cash or other property of the Client and remit such amounts to the relevant taxing authority. If any
Taxes become payable with respect to any prior payment made to the Client by the Custodian, the Custodian may withhold any cash or
other property of the Client held or received with respect to Client's Assets, Custody Accounts or cash or other property in
satisfaction of such prior Taxes. The Client shall remain liable for any Tax deficiency. If Taxes are required to be deducted or
withheld from any payments made by the Client to Custodian, the Client will pay such additional amounts as are necessary so that
Custodian receives a net amount equal to the amount Custodian would have received absent such withholding or deduction. Without
limiting Section 13 hereof, the Client shall indemnify and hold the Custodian harmless from and against any and all liabilities,
penalties, interest or additions to tax with respect to, or resulting from, any delay in, or failure by, the Custodian to pay,
withhold or report any Taxes imposed on Client's Assets, cash or other property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. DIGITAL ASSET FORKS

The Custodian is not responsible for any Fork of a Digital Asset, including any Eligible Assets, and is not liable for any loss in value of the Assets held by the Custodian on the Client's behalf as a result of any Fork or otherwise. It is the responsibility of the Client to make itself aware of anticipated or upcoming operational or systemic changes in a Digital Asset and the Client must carefully consider publicly available information as well as information provided by the Custodian, if any, in determining whether to continue to use an account with the Custodian in connection with a Forked Digital Asset. In the event of a Fork of an Eligible Asset, the Custodian will use reasonable efforts to investigate the technical and operational feasibility of providing services with respect to Forked Digital Assets and will act in accordance with its Policy Statement on Forks as set forth in <u>Schedule 3</u> attached hereto, which may be supplemented or modified by the Custodian from time to time in its sole discretion; <u>provided</u> that the Custodian retains the right, in its sole discretion, to determine whether or not to support (or cease supporting) each Forked Digital Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. VALUE AND SUPPLY OF DIGITAL ASSETS; INSURANCE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **VALUE FLUCTUATION.** THE CLIENT UNDERSTANDS THAT THE VALUE OF DIGITAL ASSETS AND ANY UNSUPPORTED
FORKED DIGITAL ASSET CAN FLUCTUATE SUBSTANTIALLY, WHICH MAY RESULT IN A SIGNIFICANT OR TOTAL LOSS OF THE VALUE OF THE ASSETS HELD BY THE
CUSTODIAN ON THE CLIENT'S BEHALF OR ANY UNSUPPORTED FORKED DIGITAL ASSET. THE CLIENT AGREES THAT THE CUSTODIAN WILL NOT BE LIABLE
FOR ANY LOSS IN VALUE OF THE ASSETS OR UNSUPPORTED FORKED DIGITAL ASSET AT ANY TIME.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **SUPPLY OF DIGITAL ASSETS.** THE SUPPLY OF DIGITAL ASSETS AVAILABLE TO THE CUSTODIAN TO PROVIDE TO
THE CLIENT THROUGH TRADE ORDERS AND THE ABILITY OF THE CUSTODIAN TO DELIVER DIGITAL ASSETS DEPENDS ON THIRD PARTY PROVIDERS THAT ARE OUTSIDE
OF THE CUSTODIAN'S CONTROL. THE CUSTODIAN DOES NOT OWN OR CONTROL ANY OF THE PROTOCOLS THAT ARE USED IN CONNECTION WITH DIGITAL
ASSETS AND THEIR RELATED NETWORKS, INCLUDING THOSE RESULTING FROM A FORK. ACCORDINGLY, THE CUSTODIAN DISCLAIMS ALL LIABILITY RELATING
TO SUCH PROTOCOLS AND ANY CHANGE IN THE VALUE OF ANY DIGITAL ASSETS (WHETHER FORKED DIGITAL ASSETS OR NOT), ANY ELIGIBLE ASSETS, OR ANY
ASSETS, AND MAKES NO GUARANTEES REGARDING THE SECURITY, FUNCTIONALITY, OR AVAILABILITY OF SUCH PROTOCOLS OR NETWORKS. THE CLIENT ACCEPTS
ALL RISKS ASSOCIATED WITH THE USE OF THE SERVICES TO CONDUCT TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, RISKS IN CONNECTION WITH THE
FAILURE OF HARDWARE, SOFTWARE AND INTERNET CONNECTIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **INSURANCE**. THE CLIENT ACCEPTS THAT DIGITAL ASSETS ARE NOT SUBJECT TO THE PROTECTIONS OR INSURANCE
PROVIDED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR THE SECURITIES INVESTOR PROTECTION CORPORATION. IN ADDITION, ALTHOUGH THE CUSTODIAN
MAY MAINTAIN INSURANCE FOR ITS OWN BENEFIT IN CONNECTION WITH ITS BUSINESS, THIS INSURANCE, IF MAINTAINED, IS SOLELY FOR THE BENEFIT OF
THE CUSTODIAN AND DOES NOT GUARANTEE OR INSURE THE CLIENT IN ANY WAY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ACKNOWLEDGMENT OF DIGITAL ASSET RISKS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **General Risks.** The Client understands and acknowledges that investing in, buying, and selling Digital
Assets presents a variety of risks that are not presented by investing in, buying, and selling products in other, more traditional asset
classes. These risks include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Digital Assets are not legal tender, operate without central authority or banks, and are not backed by
any government.

&nbsp;&nbsp;&nbsp;&nbsp;&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. Digital Assets are a new technological innovation with a limited history and are a highly speculative
asset class, and as such, have in the past experienced, and are likely in the future to continue to experience, high volatility, including
periods of extreme volatility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Digital Assets could become subject to Forks, and various types of cyberattacks, including but not limited
to a "51% Attack" or a "Replay Attack," as described in the Policy Statement on Forks attached to this Agreement
as <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Trading platforms on which Digital Assets are traded, including exchanges that may be used by the Custodian
to fill Trade Orders, may stop operating or shut down due to fraud, technical problems, hackers or malware, and these trading platforms
may be more susceptible to fraud and security breaches than established, regulated exchanges for other products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The decentralized, open source protocol of the peer-to-peer computer network supporting a Digital Asset
could be affected by internet disruptions, fraud or cybersecurity attacks, and such network may not be adequately maintained and protected
by its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Regulatory actions or policies may limit the ability to exchange a Digital Asset or utilize it for payments,
and federal, state or foreign governments may restrict the use and exchange of Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. It may be or in the future become illegal to acquire, own, sell, or use a Digital Asset in one or more
countries, and the regulation of Digital Assets within and outside of the United States is still developing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. A Digital Asset could decline in popularity, acceptance or use, thereby impairing its price and liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Acknowledgement.** The risks described in this Section 10 are just some of the risks presented by
investing in, buying and selling Digital Assets, and the Client acknowledges that the Client is solely responsible for understanding and
accepting the risks involved in investing in, buying, and selling Digital Assets, acknowledges that, subject to the other provisions of
this Agreement, the Custodian has no control or influence
over such risks, and acknowledges that the Custodian shall not be liable for any loss in value of Digital Assets that occurs in connection,
directly or indirectly, with these risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. REPRESENTATIONS AND WARRANTIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **General.** Each Party hereto represents and warrants to the other Party, as of the date this Agreement, 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;i. It is duly organized and in good standing in its jurisdiction of formation;

&nbsp;&nbsp;&nbsp;&nbsp;&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. It has the requisite power and authority to execute this Agreement and to perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. It has taken all necessary action to authorize the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. This Agreement, when executed and delivered, will be its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar 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;v. Any consent, authorization or Instruction required in connection with its execution and performance of
this Agreement has been provided by any relevant third 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;vi. Any act reasonably required by any relevant governmental or other authority to be done in connection with
its execution and performance of this Agreement has been or will be done (and will be renewed if necessary); 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;vii. Neither the execution nor performance of this Agreement by such Party will materially breach any applicable
Law, contract or other requirement to which such Party is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Client.** In addition to the general representations set forth in <u>Section 11(A)</u> hereof, the Client also represents, warrants
and covenants to the Custodian 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;i. Its principal place of business is in Florida, and it will notify the Custodian before changing its principal
place of business to another State or foreign country;

&nbsp;&nbsp;&nbsp;&nbsp;&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. It has the requisite power and authority to deposit the Assets in the Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Any factual information heretofore or contemporaneously furnished
by or on behalf of the Client in writing to the Custodian for purposes of or in connection with the services contemplated by this Agreement
is true and accurate in all material respects on the date as of which such information is dated or certified and not incomplete by omitting
to state any fact necessary to make such information not misleading in any material respect at such time; <u>provided</u> that, with
respect to forecasts or projections, the Client represents only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. There is no claim pending, or to the Client's knowledge, threatened, and no encumbrance or other
lien, in each case, that may adversely affect any delivery of Assets made in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. It has not relied on any oral or written representation or warranty made by the Custodian or any other
person on the Custodian's behalf, other than those explicitly set forth in <u>Section 11.A.</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. It owns the Assets in the Custody Account free and clear of all liens, claims, security interests and
encumbrances (except those granted herein) and it has all rights, title and interest in and to the Assets in the Custody Account as necessary
for the Custodian to perform its obligations 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;&nbsp;&nbsp;&nbsp;&nbsp;vii. It acknowledges that Digital Assets are new forms of assets, that the law regarding their ownership, custody
and transfer is developing and uncertain, and that custody of such assets poses certain risks that are not present in the case of more
traditional asset classes, including the risks of fraud and theft; and it understands that it will bear such risks and the potential loss
or diminution in value of Digital Assets due to (a) changes or developments in the Law or conditions under existing Law in which its rights
in and to such Digital Assets are not adequately protected, (b) changes in the Custodian's policies or procedures made in the Custodian's
sole discretion in light of legal, regulatory, operational, security or reputational risks, (c) an Ineligibility Determination or (d)
fraud and theft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. It is not, and no transferee of Assets pursuant to any Digital Asset Debit Request is, (a) the target
of any economic, financial or trade sanctions or embargoes, export controls or other restrictive measures imposed by the United States
of America (including those administered by the United States Department of the Treasury's Office of Foreign Assets Control), the
European Union, any member state of the European Union, the United Kingdom or the United Nations (the "  ***Sanctions*** "),
or (b) located, organized or resident in a country or territory with which dealings are broadly restricted or prohibited by any Sanctions
(as of the date hereof, Crimea, Cuba, Iran, North Korea and Syria)(any such country, territory, entity or individual described in this
clause (ix), a "  ***Sanctioned Party*** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. The Client does not know or have any reason to suspect that (a) any part of the Assets are or will be
derived from, held for the benefit of, or related in any way to transactions with or on behalf of, any Sanctioned Party, and (b) any Sanctioned
Party has or will have any legal or beneficial interest in the Client or any of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. The Client does not know or have any reason to suspect that (a) any part of the Assets was derived from
unlawful activities, or (b) any part of the Assets or proceeds of the Assets will be used to finance any unlawful activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. If the Client is a non-U.S. banking institution (a "  ***Non-U.S. Bank***") or is holding the Assets directly or indirectly on behalf of or for the benefit of a Non-U.S. Bank, such Non- U.S.
Bank (a) maintains a place of business at a fixed address, other than solely a post office box or an electronic address,
in a country where the Non-U.S. Bank is authorized to conduct banking activities; (b) at such location, employs one or more individuals
on a full-time basis; (c) maintains operating records related to its banking activities; (d) is subject to inspection by the banking
authority that licensed the Non-U.S. Bank; and (e) does not provide banking services to any other Non-U.S. Bank that does not have a
physical presence in any country and that is not a registered affiliate of such Non-U.S. Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. If the Client is an entity holding the Assets on behalf of any of its own customers, whether or not expressly
identified to the Custodian from time to time, any such customers of the Client shall not be customers or indirect customers of the Custodian
by virtue of the services provided hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiii. If the Client is an entity holding the Assets on behalf of third parties, (a) the Client is in compliance
in all material respects with Sanctions and, as applicable to the Client, the U.S. Bank Secrecy Act, as amended, the U.S. Money Laundering
Control Act of 1986, as amended, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, as amended, or any similar U.S. federal, state or foreign law or regulation, (b) the Client has anti-money laundering
policies and procedures in place reasonably designed to verify the identity of its customers and investors and their sources of funds,
and (c) the Client has established the identities of and conducted thorough due diligence with respect to all of its customers or investors
who beneficially own or will beneficially own, directly or indirectly, any of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiv. It acknowledges that the Custodian may, with or without prior notice to the Client, "freeze"
the Client's Custody Account, or any other Assets of the Client in the Custodian's possession or control, including, but not
limited to, prohibiting transfers, declining any Cash Debit Request, Cash Credit Request, Digital Asset Debit Request or Digital Asset
Credit Request, and/or segregating Assets or property, if the Custodian determines, suspects, or is advised that such actions are necessary
or advisable to comply with any applicable anti-money laundering, OFAC or other laws or regulations in any relevant jurisdiction. The
Client acknowledges that the Custodian may be required to report transactions that raise suspicions of money laundering or OFAC violations
and to disclose the identity of the Client and any related parties to appropriate government authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xv. It does conduct and intends to continue to conduct its business in material compliance with all applicable
Laws, and has obtained all regulatory licenses, approvals and consents necessary to carry on its business as now conducted; without limiting
the generality of the foregoing, it will not use the services provided by Custodian hereunder in any manner that is, or would result in,
a violation of any 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;xvi. It is aware of and familiar with, and has been fully informed of, the risks associated with giving Proper
Instructions, and is willing to accept such risks, and it shall (and shall cause each Authorized Person to) safeguard and treat with extreme
care any devices or credentials related to Proper Instructions, understands that there may be alternative methods of giving or delivering
the same than the methods selected by the Custodian, agrees that the security procedures (if any) to be followed in connection therewith
provide a commercially reasonable degree of protection in light of its particular needs and circumstances, and acknowledges and agrees
that a deposit or withdrawal request may conclusively be presumed by the Custodian to have
been given by Authorized Person(s) duly authorized to do so, and may be acted upon as given; 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;xvii. It has determined, and agrees that it is solely responsible for ensuring, that the services offered by
the Custodian under this Agreement are sufficient for all legal, regulatory, contractual, operational and other requirements and obligations
of the Client, and that such services are appropriate and desirable for the Client, including, but not limited to, determining whether
the services provided by the Custodian hereunder are sufficient for satisfying any obligation of the Client to arrange for a qualified
custodian to maintain Client funds and securities under the Investment Advisers Act of 1940, as amended. The Custodian makes no express
or implied warranty, guarantee, or representation that the services offered by the Custodian under this Agreement satisfy any legal or
regulatory requirements applicable to the custody of Client Assets. The Custodian shall have no liability whatsoever for, and the Client
shall indemnify and hold the Custodian harmless against, any loss in value of the Assets held by the Custodian on the Client's behalf
and any other loss, expense, cost or liability of any kind incurred by the Custodian arising directly or indirectly out of the Client's
failure or alleged failure to comply with any Law, contract or operational requirements applicable to the Client, including, but not limited
to, any Law applicable to the custody of Client Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Custodian**. The Custodian represents to the Client that the Custodian is (A) a New York State limited
liability trust company authorized pursuant to Section 102-a of the New York Banking Law to engage in all activities described in Sections
96 and 100 of the New York Banking Law, with the exception of accepting deposits and making loans, and (B) a "bank" as defined
in Section 202(a) of the Investment Advisers Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. SCOPE OF RESPONSIBILITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Standard of Care.** The Custodian shall exercise the reasonable care of a professional custodian
for hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Limitations on Liability and Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&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. In no event will the Custodian be responsible or liable for any loss, claim or damage suffered by the
Client, except to the extent of a final, non-appealable judicial determination that such loss, claim or damage directly resulted from
the gross negligence, willful misconduct or fraud of the Custodian. In the event of such final, non-appealable judicial determination,
the liability of the Custodian will not exceed the lesser of (a) the replacement cost of any Assets and (b) the market value of the Assets
(as determined by the Custodian) to which such loss or damage relates at the time the Client reasonably should have been aware of such
gross negligence, willful misconduct or fraud. In the event of any loss sustained by the Client for which the Custodian is liable hereunder,
the liability of the Custodian shall be reduced to the extent that the Client's own conduct contributed to such loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Custodian shall not be liable for any loss caused, directly or indirectly, by (a) the failure of the
Client to adhere to the Custodian's policies and procedures that have been disclosed to the Client, (b) a Force Majeure Event or
(c) any action taken pursuant to Section 6.E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Under no circumstances will the Custodian
 be liable to the Client for (a) acting in accordance with or conclusively relying upon any
 Instruction that it believes in good faith to have been authorized by the Client or any Person
 acting on behalf of the Client, or (b) <u>any indirect, consequential, incidental, special or punitive loss or damage, even if the Custodian has been advised of or otherwise might have anticipated the possibility of such loss or damage</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Custodian shall not be responsible or liable to the Client for any loss caused, directly or indirectly,
by (a) any failure or delay to act by any service provider to the Custodian or (b) any System Failure (other than
a System Failure caused by the gross negligence, willful misconduct or fraud of the Custodian or the Custodian's affiliates), that
prevents the Custodian from fulfilling its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Limitations on the Custodian's Responsibility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** **General.** The Custodian shall only be responsible for the performance of those duties as are expressly
set forth herein, including acting in accordance with any Proper Instructions given in accordance with this Agreement. The Custodian shall
have no implied duties or other obligations whatsoever. The Custodian shall not be subject to, nor required to comply with, any other
agreement to which the Client is a 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;**ii.** **No Liability for Third Parties.** The Custodian, provided that the Custodian shall have acted in
good faith and used reasonable care in the selection and continued appointment of the third party and subject to clause iii below, is
not responsible or liable for the acts, omissions, defaults, insolvency, negligence, gross negligence, misconduct or fraud of any third
party selected by the Custodian to perform any of its duties or obligations under this Agreement, other than any Affiliated Agent. In
addition, and subject to clause iii below, in no event shall the Custodian be liable for the acts, omissions, defaults, insolvency, negligence,
gross negligence, misconduct or fraud of any other third 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;**iii.** **Sole Obligations of the Custodian.** The Client understands and agrees that notwithstanding any delegation
by the Custodian of any of its obligations and duties to any affiliate of the Custodian (defined as an "  ***Affiliated Agent*** "),
no such agreement with any Affiliated Agent shall discharge the Custodian from its obligations hereunder, and the rights of the Client
with respect to the Custodian extend only to the Custodian and do not extend to any Affiliated Agent of the Custodian. The Client shall
have no direct or indirect rights or causes of action against any Affiliated Agent, nor shall any Affiliated Agent have any responsibility
or liability to any Client of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iv.** **Performance Subject to Laws.** The Client understands and agrees that the Custodian's performance
of this Agreement may be subject to relevant Laws and any rules, operating procedures, practices, and protocols related to Digital Assets,
all of which may be subject to change. The Custodian may from time to time review and amend its policies and procedures or impose such
additional policies and procedures as the Custodian, in its discretion, considers necessary or advisable due to change in any Law, including
any Law related to Digital Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**v.** **Preventing of Performance.** The Custodian will not be responsible for any failure to perform
 any of its obligations if such performance is prevented, hindered or delayed by a Force Majeure Event, by changes in the
 Custodian's policies or procedures made in the Custodian's sole discretion in light of legal, regulatory, operational,
 security or reputational risks or after an Ineligibility
Determination. In such case, the Custodian's obligations will be suspended for so long as the Force Majeure Event continues or any
change in the Custodian's policies or procedures or Ineligibility Determination remains in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vi.** **Validity of Assets.** The Custodian does not warrant or guarantee the form, authenticity, value or
validity of any Asset received by the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vii.** **No Fiduciary Duties.** The Custodian has no fiduciary duty to the Client in any respect, including
with respect to the Assets held in the Custody Account under this Agreement (irrespective of whether an affiliate of the Custodian has
provided other services or is currently providing other services to the Client on other matters).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**viii.** **Capacity of Custodian.** For the avoidance of doubt, the Custodian is not acting as an investment
manager or as a broker or dealer (as respectively defined in the Securities Exchange Act of 1934, as amended), nor is it acting as an
investment, financial, legal or tax adviser to the Client. This Agreement is an arm's length, commercial transaction between the
Client and the Custodian. The Custodian is not recommending that the Client take any investment or other action with respect to the Assets
held in the Custody Account 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;&nbsp;&nbsp;&nbsp;&nbsp;**ix.** **Forwarded Information; Contents of Documents.** The Custodian is not responsible for the form, accuracy
or content of any notice, circular, report, announcement or other material provided under Section 6.B.ii of this Agreement not prepared
by the Custodian and the Custodian shall not be required to make any investigation into the facts or matters stated in any certificate,
report, or other document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**x.** **Security of Assets**. The Custodian shall not be liable to the Client for any loss resulting from
actions taken by the Custodian to inspect, protect or improve the security of the Client's Assets pursuant to Section 6.E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xi.** **Conflicting Claims**. In the event of any dispute or conflicting claims by any person or persons
with respect to the Assets, the Custodian shall be entitled to refuse to act until either (a) such dispute or conflicting claim
shall have been finally determined by a court of competent jurisdiction or settled by agreement between conflicting parties, and the Custodian
shall have received written evidence satisfactory to it of such determination or agreement or (b) the Custodian shall have received an
indemnity, security or both, satisfactory to it and sufficient to hold it harmless from and against any and all loss, liability and expense
that the Custodian may incur as a result of its actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xii.** **Legal and Regulatory Compliance**. The Custodian shall have no obligation to review, monitor or otherwise
ensure compliance by the Client or the Authorized Agent with (a) any Law applicable to the Client or the Authorized Agent or (b) any term
or condition of any agreement between the Client and any third party, including the Authorized Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xiii.** **Reliance on Written Items**. The Custodian may rely on and shall be protected in acting or refraining
from acting upon any written notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt or other
paper or document furnished to it in accordance with this Agreement, not only as to its due execution and validity, but also as to the
truth and accuracy of any information therein contained, which it in good faith believes to be genuine and signed or presented by an Authorized
Person. The Custodian shall be entitled to presume
the genuineness and due authority of any signature appearing thereon. The Custodian shall not be bound to make any independent investigation
into the facts or matters stated in any such notice, instruction, statement, certificate, request, waiver, consent, opinion, report, receipt
or other paper or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Client Obligations .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Client agrees to pay all fees, expenses, charges and obligations incurred from time to time for any
services pursuant to this Agreement as determined in accordance with the terms of the Fee Schedule attached hereto, which may be changed
from time to time by the Custodian upon prior written notice to the Client or the Authorized Agent, together with any other amounts payable
to the Custodian under the Agreement. The Client authorizes the Authorized Agent to acknowledge receipt of any changes to the Fee Schedule
on behalf of the Client without providing prior notice to, or obtaining prior consent from, the Client. Unless otherwise agreed, all fees
and expenses paid to the Custodian shall be paid in U.S. Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Client hereby acknowledges that the Custodian is subject to various laws including those verifying
the identities of customers, pursuant to which the Custodian will obtain, verify and record information that allows the Custodian to identify
each Client. Accordingly, prior to entering into this Agreement, the Custodian will ask the Client to provide certain information including,
but not limited to, the Client's name, physical address, tax identification number and other information that will help the Custodian
to identify and verify the Client's identity, such as organizational documents, certificate of good standing, license to do business
or other pertinent identifying information. The Custodian may obtain and verify comparable information for any Authorized Person. The
Client shall provide the Custodian with documentation to allow for obtaining and verifying the beneficial owners and control persons of
customers that are legal entities. The Client acknowledges that the Custodian cannot provide services under this Agreement until the Custodian
verifies the identity of the Client (and, if applicable, Authorized Persons and/or beneficial owners) in accordance with its customer
identification and verification procedures. The Client's Custody Account may be restricted or closed if the Custodian cannot obtain
and verify this information. The Custodian will not be responsible for any losses or damages (including, but not limited to, lost opportunities)
that may result if a Client's Custody Account is restricted or closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Client will promptly provide the Custodian with such additional information and documentation (including,
as applicable, by executing additional documentation) as the Custodian may request to identify the owner(s) of Assets, for the Custodian
to comply with applicable Law and its policies and procedures, and to enable the Custodian to perform its duties and obligations 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;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Client shall promptly inform the Custodian if (a) the Client is or becomes a Sanctioned Person, (b)
the Client is or becomes located, organized, or resident in, or begins to conduct business in or with a country or territory with which
dealings are broadly restricted or prohibited by any Sanctions (including, as of the date hereof, Crimea, Cuba, Iran, North Korea and
Syria) or (c) the Client becomes aware that the Client or any Asset, or any transaction involving an Asset, is or becomes the target of
any Sanctions or investigation (including the reasonable details thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The Client shall not grant any other Person a lien, security interest, charge or similar rights or claims
against the Assets without the Custodian's prior consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. In giving any Instructions which purport to be Proper Instructions under this Agreement, the Client will
act, and will cause the Authorized Agent to act, in accordance with the provisions of any and all constitutional documents of the Client,
any and all documents governing the Assets and any related laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. The Client and its Authorized Persons are responsible for creating a strong password and maintaining adequate
security and control of any and all IDs, passwords, hints, personal identification numbers, or any other codes that the Client and any
Authorized Person uses to access the services provided by the Custodian under this Agreement. Any loss or compromise of the foregoing
information and/or the Client's personal information may result in unauthorized access to the Custody Account by third-parties and
the loss or theft of any Digital Assets or Assets held in the Custody Account and any associated accounts. The Client is responsible for
keeping the Client's contact information, including email address and telephone number, up to date in order to receive any notices
or alerts that the Custodian may send to the Client. The Custodian assumes no responsibility for any loss that the Client may sustain
due to compromise of account login credentials not due to fault of the Custodian, or due to any failure by the Client, any Authorized
Person or the Authorized Agent to follow or act on any notices or alerts that the Custodian may send to the Client, an Authorized Person
or the Authorized Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. At any time, the Custodian may request Instructions from any Authorized Person or Authorized Agent (or
Person that the Custodian believes in good faith to be an Authorized Person or Authorized Agent), and may consult with its own legal counsel
or outside legal counsel for the Client with respect to any matter arising in connection with the services to be performed by the Custodian
under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. INDEMNITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Indemnity to the Custodian.** The Client agrees to indemnify, defend and hold harmless the Custodian,
its parent companies, subsidiaries and affiliates, and its and their directors, officers, agents and employees, against any and all claims,
costs, causes of action, losses, liabilities, lawsuits, demands and damages, fines, penalties and expenses, including without limitation,
any and all court costs and reasonable attorney's fees, in any way related to or arising out of or in connection with this Agreement
or any action taken or not taken pursuant hereto, except to the extent that the Custodian would be liable under Section 12.B hereunder.
The foregoing indemnifications shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Client's Direct Liability.** The disclosure by the Client to the Custodian that the Client
has entered into this Agreement as the agent or representative of another person shall not relieve the Client of any of its obligations
under this Agreement, including those described in Section 13.A above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. CLIENT FINAL DISTRIBUTION OF ASSETS

The Client agrees that the Assets will be finally distributed, transferred and delivered to the Client only upon the Client's indefeasible payment in full of any amounts due and owing to the Custodian hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. REMEDIES UPON NONPAYMENT

If the Client, upon demand, fails to pay the Custodian any required amount in respect of any Asset subject to this Agreement, the Custodian may, after reasonable notice and at least three (3) days to cure such failure to the Client (except as required by Law) and at any time appropriate, sell such Asset and/or exercise in respect of each such Asset any and all the rights and remedies of a secured party on default under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. LIEN AND SET OFF

In addition to all rights and remedies available to the Custodian under applicable Law, the Custodian shall have, and the Client hereby grants, a continuing lien on and valid and perfected first-priority security interest in all Assets in the Custody Account until the satisfaction of all liabilities of the Client to the Custodian arising under this Agreement, including without limitation liabilities in respect of any fees and expenses or credit exposures in relation to the Custody Account incurred in the performance of services under this Agreement. Custodian shall have all the remedies of a secured party under the Uniform Commercial Code in effect in the Commonwealth of Massachusetts. The Client shall not grant any other Person a lien, security interest, charge or similar rights or claims against the Assets without the Custodian's prior written consent.

Without limiting any other rights and remedies of the Custodian under this Agreement or applicable Law, to the extent permitted by applicable Law, the Custodian may, with at least three (3) days' (or otherwise, as soon as reasonably practicable) prior notice to the Client, set off any certain and final payment obligation owed to the Custodian by the Client against any payment obligations owed by the Custodian to the Client, regardless of the place of payment, delivery and/or currency of any obligation (and for such purposes may make any necessary conversions of currencies or Digital Assets)..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. RECORDS

The Client shall examine each statement provided by the Custodian and notify the Custodian in writing within five (5) Business Days of the date of such statement of (A) any discrepancy between Instructions given by the Client and the position shown on the statement and (B) any other errors known to the Client. Absent such timely notification, the Custodian's liability for any loss or damage in regards to such discrepancy shall not accrue beyond such five (5) Business Day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. CONFIDENTIAL INFORMATION

Each of the Custodian and the Client agrees that it will maintain any confidential and proprietary information disclosed to it by the other Party hereto ("***Confidential Information***") in a confidential manner using the same care it uses to protect the confidentiality of its own confidential information, and will not use for its own benefit or otherwise the Confidential Information of the other Party except (x) as expressly authorized by this Agreement and to the extent necessary for performance of this Agreement or (y) upon the prior written consent of the other Party; <u>provided</u>, <u>however</u>, that each of the Custodian and the Client may disclose any such confidential or proprietary information of the other Party to those of its affiliates and its and their officers, directors, employees, agents (including attorneys and financial advisors), and contractors, in each case, who need to know such information for purposes of this Agreement and who are bound by confidentiality obligations consistent with the terms hereof. Notwithstanding the foregoing, Confidential Information shall not include information that was (a) publicly available prior to disclosure by such disclosing party; (b) already in the receiving party's possession and not subject to an obligation of confidentiality; (c) obtained by the receiving party from a third party without restriction on disclosure; (d) entirely independently developed by the receiving party without reference to any Confidential Information of the disclosing party; (e) the tax treatment and any facts that may be relevant to the income tax consequences of the transactions contemplated by this Agreement. The Client shall treat the terms of this Agreement, including the fees set forth on Schedule 1 hereto, as Confidential Information.

If, at any time, the receiving party is required by law or regulation to make any disclosure of any of the Confidential Information, by summons, subpoena, judicial or administrative order or otherwise, the receiving party shall (to the extent permissible and practicable under the circumstances) give prompt prior written notice of such requirement to the disclosing party and permit the disclosing party to intervene in any relevant proceedings to protect its interests in the Confidential Information, and provide reasonable cooperation and assistance to the disclosing party in lawful efforts to resist, limit or delay disclosure at the disclosing party's sole expense. Notwithstanding the foregoing, the Custodian may disclose the Client's Confidential Information to the Custodian's regulators without any notice thereof.

The receiving party shall promptly notify the disclosing party in writing of any loss, or use, access or disclosure of Confidential Information of the disclosing party in violation of this Agreement promptly following recipient's discovery and shall promptly take measures to minimize the effect and prevent its recurrence. The receiving party shall be liable under this Agreement to the disclosing party for any loss, or access, use, or disclosure in violation of this Agreement by itself or its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. TRADE NAMES

The Client acknowledges that the names and logos of the Custodian and its affiliates including, but not limited to, "Fidelity", "Fidelity Investmentsâ" and "Fidelity Digital Assets" (collectively, "***Names***") are proprietary trademarks and trade names and are of significant value and importance. Client will not undertake any written or oral sales, advertising, press release, marketing, promotional or solicitational activities which identify, make reference to or otherwise use these Names, or suggest either orally or in writing that Client is an agent or partner of, affiliated with or in any way part of the Fidelity organization, except as otherwise approved in writing by the Custodian. No reference to the Custodian or Fidelity companies may be made in such a way as to potentially mislead customers of the Client.

Notwithstanding the preceding paragraph, during the term of this Agreement, Client shall have permission to use the Custodian's full legal entity name, Fidelity Digital Asset Services, LLC, or its associated trade name, Fidelity Digital Assets, in the marketing of the Client's services when referring to the Custodian as providing custody, trade execution or other applicable services, as the case may be, as a simple statement of fact, without providing notice to, or receiving prior written consent from, the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Term.** The term of this Agreement shall commence on the Effective Date and terminate when terminated pursuant to this Section
20 (the "  ***Term*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Termination**. Either Party may terminate this Agreement in whole or in part, with or without cause,
by giving not less than thirty (30) days' prior written notice to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **Immediate Termination by Either Party**. Without prejudice to any accrued rights and remedies under
this Agreement, either Party may terminate this Agreement immediately by giving written notice to the other Party upon the occurrence
of any of the following events (provided such notice to terminate is given within three (3) months following the occurrence of the event):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. if the other Party commits any material breach of any of its obligations under this Agreement and, in
the case of any breach which is capable of remedy, fails to remedy such breach within seven (7) days of delivery of a written notice to
the other Party specifying such breach (or such longer period as the notice may specify); 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;ii. if the other Party becomes insolvent, enters into liquidation (apart from solvent liquidation for the
purposes of amalgamation or reconstruction) or is dissolved or declared bankrupt or has a receiver, administrator or administrative receiver
appointed over all or a substantial part of its assets or enters into an arrangement with its creditors or takes or suffers similar action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **Immediate Termination by Custodian**. Without prejudice to any accrued rights and remedies under
 this Agreement, the Custodian may terminate this Agreement immediately by giving written notice to the Client if in its sole
 discretion it has determined that (i) continuing to provide services under this Agreement would result in violation of any Law, (ii)
 any of the representations or warranties made by the Client under this Agreement cease to be true in any material respect on a
 continuing basis, or (iii) the Client has conducted or participated in any activity, transaction or conduct that will cause a
 material adverse impact or reflection on the Custodian's reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **Effect on Assets.** Upon termination of this Agreement and subject to <u>Section 14</u> hereof, the
Custodian shall deliver the Client's Assets as instructed by the Client in writing. If by the termination date the Client has not
given instructions to the Custodian regarding where to deliver any Assets, the Custodian will continue to maintain the Custody Account
until the Client provides such Proper Instructions to effect a free delivery of such Assets, and the Client shall be liable to pay monthly
storage fees in the amount determined by the Custodian until all Assets are removed. However, the Custodian will provide no other services
with respect to any such Assets following termination. Notwithstanding termination of this Agreement or any Proper Instruction, the Custodian
may retain sufficient Assets to close out or complete any transaction that was in process prior to such termination or to pay any fees
of the Custodian or amounts otherwise outstanding hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. **Surviving Terms**. The rights and obligations contained in Sections 7, 11, 13, 15, 16, 18 and 19
of this Agreement 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;21. GOVERNING LAW AND JURISDICTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Governing Law.** This Agreement is solely and exclusively governed, construed and enforced in accordance
with the laws of the Commonwealth of Massachusetts, without giving effect to conflict of law rules or principles that would cause the
application of the laws of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Jurisdiction.** Both Parties submit to personal jurisdiction in the federal and state courts located
in Commonwealth of Massachusetts, and further agree that any and all claims and controversies arising out of this Agreement that cannot be amicably resolved
by the Parties shall be brought solely and exclusively in a court in the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Venue.** Each Party hereto waives any objection it may have at any time, to the laying of venue of
any actions or proceedings brought in an inconvenient forum and further waives the rights to object that such court does not have jurisdiction
over such parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Negotiated Agreement**. Each Party acknowledges that it has had the opportunity to negotiate the
terms of this Agreement, including the foregoing governing law and jurisdiction provisions, and that it has freely contracted to bind
itself to such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Entire Agreement; Amendments.** This Agreement, including all exhibits and schedules, constitutes
the entire Agreement and understanding between the Parties, and supersedes all previous communications, representations or agreements,
whether written or oral, with respect to the subject matter hereof. In the event that this Agreement conflicts with any exhibit, schedule,
or terms of use, the terms of this Agreement shall control and govern. Except as specified in this Agreement, this Agreement may be modified
only by written agreement signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Notices**. For the purposes of any notices or other communications required to be delivered hereunder,
the Custodian's address shall be 245 Summer Street, Boston, MA 02210 and the Client's address shall be as set forth in the
account opening documentation provided by the Client to the Custodian, as updated from time to time. Either Party may provide such notice
by sending written notice by registered or certified mail or by e-mail to the address designated by the other Party. Any notices provided
under this provision shall be effective, upon receipt (in the case of registered or certified mail) or by the recipient acknowledging
receipt (in the case of e-mail).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Third Parties**. This Agreement is not intended to confer any rights or benefits to any third parties,
including, but not limited to, the Client's affiliates, employees, customers, counterparties or investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Severability.** If any provision of this Agreement is or becomes illegal, invalid, or unenforceable
under any applicable Law, the remaining provisions shall remain in full force and effect (as shall that provision under any other law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Waiver of Rights.** No failure or delay of the Client or the Custodian in exercising any right or
remedy under this Agreement shall constitute a waiver of that right. Any waiver of any right will be limited to the specific instance.
The exclusion or omission of any provision or term from this Agreement shall not be deemed to be a waiver of any right or remedy the Client
or the Custodian may have under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Recordings.** The Client and the Custodian consent to telephonic or electronic recordings for security
and quality of service purposes and agree that either may produce telephonic or electronic recordings or computer records as evidence
in any proceedings brought in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Assignment.** The Custodian may assign this Agreement, delegate its duties hereunder, and transfer
the Custody Account to any of its affiliates or to its successors and assigns, whether by merger, consolidation, or otherwise, in each
case, so long as such entity is a similarly regulated and supervised entity, with at least three (3) days' notice to the Client.
The Client may not assign or transfer any of its rights or obligations under this Agreement without the Custodian's prior written consent. Any attempted transfer
or assignment in violation hereof shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **No Agency**. Nothing contained in this Agreement shall constitute the Client and/or the Custodian
(and/or any other Person) as members of any partnership, joint venture, association, syndicate, unincorporated business or similar assignment
as a result of or by virtue of the engagement or relationship established by this Agreement. Neither the Client nor the Custodian shall
hold itself out as an agent, partner or joint venture partner of the other or any of the subsidiaries or companies controlled directly
or indirectly by or affiliated with the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **No Affiliate Obligations**. The Client acknowledges and agrees that (i) the obligations and duties
of the Custodian hereunder apply only to the Custodian and are not obligations or duties of any other member of the Fidelity organization;
(ii) notwithstanding any affiliation of the Custodian with the Fidelity organization or any member thereof (including FMR LLC, the parent
company of the Custodian), this Agreement is with the Custodian only, and the rights of the Client under this Agreement apply only to
the Custodian and not to FMR LLC or any other affiliate of the Custodian; and (iii) the Custodian may in its sole and absolute discretion
in the performance of its responsibilities hereunder make such arrangements as it sees fit with any affiliate to have access to and use
the services and resources of its affiliates, and in such event, the Custodian alone shall remain solely responsible to the Client for
the provision of services hereunder and any such affiliate shall have no duty, responsibility or liability whatsoever to any Client in
connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.** **Other Business**. Nothing herein shall prevent the Custodian or any of its affiliates from engaging
in other business, or from entering into any other transaction or financial or other relationship with, or receiving fees from or from
rendering services of any kind to, the Client or any other Person. The Custodian and its affiliates may own and trade Digital Assets and
are not prohibited from engaging in other business or activities, including those that might be in direct competition with the Client.
The Custodian and its affiliates (or funds or other accounts advised or managed by them) may have investments in, or other commercial
arrangements with, counterparties that fill Trade Orders or other service providers to the Custodian. Affiliates of the Custodian (and
funds or other accounts advised or managed by them) may themselves utilize the Custodian's trade execution service and submit Trade
Orders that could be internally crossed with Trade Orders of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K.** **Headings.** Titles to Sections of this Agreement are included for convenience of reference only and
shall be disregarded in construing the language contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L.** **Counterparts; Electronic Signatures.** This Agreement may be executed in several counterparts, each
of which shall be an original, but all of which together shall constitute one and the same agreement. This Agreement may be accepted,
executed, and agreed to through the use of electronic signatures and electronic transmission.

[*signature page follows*]

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| IONIC DIGITAL TREASURY INC. | IONIC DIGITAL TREASURY INC. |
| By: | /s/ John Penver |
| Name: | John Penver |
| Title: | Interim CEO |
| FIDELITY DIGITAL ASSET SERVICES, LLC | FIDELITY DIGITAL ASSET SERVICES, LLC |
| By: | /s/ Michael O'Reilly |
| Name: | Michael O'Reilly |
| Title: | President |

---

**<u>Schedule 1</u>**

**<u>Fees</u>**

(as of the Effective Date)

---

| | | | |
|:---|:---|:---|:---|
| **Fee** | **Fee Amount** | **Fee Amount** | **Notes** |
| Custody Charge for Digital Assets | **Chargeable Digital Assets:<br> (Aggregate Balance)** | **Rate - <br> Annualized** | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
| Custody Charge for Digital Assets | Up to $25,000,000 | 30 bps | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
| Custody Charge for Digital Assets | Between $25,000,000 and $100,000,000 | 25 bps | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
| Custody Charge for Digital Assets | Greater than $100,000,000 | 15 bps | &nbsp;&nbsp;&nbsp;&nbsp;**Asset Aggregation:**<br>· **Multi-Account Aggregation:** The Custody Charge shall be applied to the aggregate amount of all Digital Assets in all digital asset custody accounts established at the Custodian that are in the name of the Client.<br>**Calculation Detail:** |
|  | <br> Under this schedule, the aggregate value of customer Digital Assets will be charged at a single rate according to the tier that the aggregate Digital Asset balance falls into. | <br> Under this schedule, the aggregate value of customer Digital Assets will be charged at a single rate according to the tier that the aggregate Digital Asset balance falls into. | <br> · Custody charge accrues daily<br>· Custody charge is calculated by the Custodian on the actual daily value of Digital Assets, based on the price (as at 5:00 p.m. US ET) of:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CoinDesk's XBX Index (in the case of Bitcoin)<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· CoinDesk's ETX Index (in the case of Ether)<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· or another index chosen by the Custodian |
| Trade Orders | 20 bps of the notional USD trade value of each executed Trade Order | 20 bps of the notional USD trade value of each executed Trade Order |  |
| Transfers of Assets | US$15 per outgoing transfer | US$15 per outgoing transfer |  |
| Wire Fee | US$15 per outgoing wire | US$15 per outgoing wire |  |
| Other Fees | as agreed by the parties | as agreed by the parties |  |

---

**<u>Schedule 2</u>**

**<u>Purchase and Sale Execution and Order Fulfillment</u>**

**(as of June 27, 2022)**

Clients may buy Digital Assets with U.S. dollars and sell Digital Assets for U.S. dollars in "spot" transactions through the Custodian's execution service in accordance with the following terms, as such terms and procedures may be modified by the Custodian from time to time. As further described below, the Custodian's trade execution service is comprised of (1) an internal matching engine with a "dark" order book, (2) a smart order router to facilitate execution of Trade Orders that do not match through the internal matching engine, and (3) external market reference data.

**Business Hours**

Trade Orders may be entered only within applicable 'trading session hours' specified by the Custodian on Business Days when the Custodian is open for business in the ordinary course. Open Trade Orders (or portions thereof) that are not fully executed by the close of trading session hours will be cancelled by the Custodian. Trading session hours, and the time in force for Trade Orders, may be modified by the Custodian from time to time.

**Trading Accounts / Balances**

Trade Orders may be submitted in amounts of Digital Assets or US Dollars (or portions thereof) that do not exceed the "XBT Balance" or "USD Balance" in the Client's Custody Account, as reflected in the trading interface. The executed U.S. dollar value of Trade Orders will be rounded up or down to the nearest cent. If one cent or less is remaining in a Trade Order that was submitted in U.S. dollars, the Custodian will treat that order as filled. Trade Orders entered in US Dollars will be converted to quantities of Digital Assets for execution; as a result, the actual amount of an executed Trade Order entered in US Dollars may be more or less than the US Dollar amount entered for the Trade Order.

The Custodian's trading interface can only be accessed via successful log-in to the Custodian's custody dashboard. The Custodian's custody dashboard will display, for each Custody Account, the "Available", "Unsettled" and "Total Value" amounts for both U.S. dollars and Digital Assets. Because the custody dashboard does not reflect open Trade Orders, the "Available" balances shown in the custody dashboard could be different than the "XBT Balance" and "USD Balance" shown in the trading interface.

**Balance Available to Trade**

When a Trade Order is entered, the notional U.S. dollar value of the purchase, or quantity of Digital Assets of the sale will be deducted from the Client's "Available" balance in the Custody Account. An additional reserve may be deducted for market orders to protect against market movement. Deducted value may be returned to the Client's Custody Account if the Trade Order expires, is cancelled, or the executed value is less than the amount deducted. "Available" balances are maintained in real-time to account for intraday activity.

Digital Asset and U.S. dollar balances related to executed Trade Orders must be settled in the Client's Custody Account (as reflected in the "Available" balance) before additional Trade Orders may be placed in respect of those Digital Asset and U.S. dollar balances. When open Trade Orders exist, the Client should refer to the "Available" balances as reflected in the trading interface to determine Digital Asset or U.S. dollar balances available for transfer.

**Order Entry**

All Trade Orders must be submitted through the Custodian's proprietary trading interface. Initially, the Custodian's system will support market, limit, and stop-limit orders.

The Custodian may, for risk management or other reasons, impose limits on the number or size, or both, of Trade Orders. Each Trade Order shall not exceed the maximum limit in notional U.S. dollar value established by the Custodian; multiple Trade Orders from the Client may have a cumulative value over the maximum limit if they are entered as separate Trade Orders that individually do not exceed the maximum limit. Each Trade Order must exceed a minimum amount in notional U.S. dollar value established by the Custodian. The Client is responsible for the accuracy, content, and submission of each Trade Order.

**Execution Quality**

The Custodian will attempt to provide Clients with the 'best' price for Trade Orders that is available from its internal order books or network of approved counterparties through its order handling process, as described in this Schedule 2. As used in this Schedule 2, 'best price' means the highest available price for "sells" and the lowest available price for "buys". The Custodian makes no representations as to how the execution price of any Trade Order compares to prices quoted by other trading platforms or market information generally, and makes no assurances that Client Trade Orders will be executed at prices more favorable to the Client than are available through other trading platforms. <u>The Custodian is not, and is not registered as, a broker-dealer or investment adviser and has no obligation to seek "best execution" for Client purchases or sales of Digital Assets</u>.

**Order Handling**

The Custodian's order handling process will first attempt to electronically match each Trade Order with a Trade Order from another client (on the opposite side) before routing a Trade Order externally. The Client will not know if an executed Trade Order was internally matched or routed away.

The internal matching engine prioritizes orders with the highest (buy) or lowest (sell) price over orders with a lower (buy) or higher (sell) price; orders are then ranked on the system by arrival time. Trade Orders are matched internally at the mid-point of prices that are derived from reference prices from external marketplaces, subject to the requirements of the applicable order type. Limit orders are matched internally if the Limit price is greater than or equal to the best ask for buy orders, or less than or equal to the best bid for sell orders. <u>The Client will not know the execution price of an order before the Trade Order is executed.</u>

If a Trade Order is not matched internally, it will be routed away to counterparties that have been previously approved by the Custodian. The composition of the network of approved counterparties available to the Custodian may change at any time. The Custodian does not provide economic incentives to counterparties to attract order flow. The Custodian is not able to honor Client requests or prohibitions about trading with certain counterparties. The identity of the approved counterparties to whom the Client's Trade Order has been externally routed will not be disclosed to the Client.

The routing algorithm prioritizes Trade Orders by price, as described in the second paragraph of this section. The Custodian's system requests the best prices that are available from approved counterparties; the Custodian's order handling process will choose the best price from among the prices that are quoted by approved counterparties within a narrow range and will execute the Client's Trade Order at that price as the execution price, subject to requirements of the applicable order type. <u>The Client will not know the execution price of an order before the Trade Order is executed</u>. Trade Orders are not aggregated, and buy and sell orders are not netted, when quotes are requested from approved counterparties.

The Custodian will only execute Trade Orders that have been internally matched with another Trade Order or that have been executed at a price received from an approved counterparty. The Custodian does not mark-up or mark-down any quotes received from approved counterparties. The Custodian may declare a Trade Order to be null and void, or may adjust the execution price or other components of a Trade Order, if it determines, in its sole discretion, that the execution price of the Trade Order was clearly erroneous.

With respect to each executed Trade Order that was routed away (or, with respect to partial executions of a Trade Order, that portion that is executed), the relevant deliver, receive and related payment obligations will be owed to and from the Client and the Custodian (and will be settled through corresponding credits or debits to the Client's Custody Account) and not to or from the Client and the counterparty that has provided the execution price of the related Trade Order. With respect to each executed Trade Order that was matched internally, the Custodian will settle the Trade Order through corresponding credits or debits to the Client's Custody Account, as applicable, without a requirement for any Delivery to occur.

**Settlement**

Proceeds from all Trade Orders will be made available to the Client, as reflected in the "Available" balance, promptly following execution of their Trade Order.

**Trading Fees**

Upon trade execution, Trade Orders will be assessed a per transaction fixed fee in basis points (based on notional value) in the amount specified in the Custodial Services Agreement, which may be updated from time to time. For purchases of Digital Assets, the U.S. dollar value of the Client's Cash Custody Account will be reduced at order entry by the amount of the transaction fee, and the full executed quantity of Digital Assets will be credited to the Client's Digital Assets Account, subject to the settlement procedures described above. For sales of Digital Assets, the U.S. dollar proceeds received by the Client will be reduced by the amount of the transaction fee.

**Market Data / Best Bid Offer**

The Custodian's custody dashboard will display external market reference data solely for the purpose of providing information to Clients about broader market conditions. Such external market reference data may include prices and other information about purchases or sales of Digital Assets on certain trading platforms that are not available for Client Trade Orders. Market data may appear with a time delay, and the Custodian is not responsible for the accuracy or completeness of pricing or trade information from external trading venues. <u>Prices of Digital Assets that are displayed in the Custodian's trading interface are for reference only and should not be relied upon by the Client as the expected execution price of any Trade Order.</u>

The Custodian's trading interface will display non-executable pricing that is derived from external reference data of the best bid and ask from select external marketplaces. Market data for Trade Orders facilitated by the Custodian is hidden from Client and public view.

**Limitations of Order Entry**

Trade Orders that include any of the following characteristics will not be accepted by the Custodian:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Trade Order for a Custody Account that is subject to a restriction imposed by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notional value of Trade Order exceeds the maximum limit established by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notional value of Trade Order is less than the minimum amount established by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Notional value of a "buy" order exceeds the "Available" U.S. dollar balance in Client's Cash Custody
Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Quantity of Digital Assets subject to a "sell" order exceeds the "Available" Digital Assets balance in Client's
Digital Asset Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Limit Prices entered exceed a percentage (determined by the Custodian) above or below the prevailing market price; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Any subsequent Trade Order deemed to be a duplicate of a previously accepted Trade Order.

**Limitations of Execution**

Trade Orders will not be executed under any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Trade Orders for a Client that are open when the Custodian imposes a restriction on the Client's Custody Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Client successfully cancels a Trade Order prior to execution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. A Trade Order cannot match on the internal order book and no price quotes are received from approved counterparties, either due to market
conditions, restrictions applicable to approved counterparties or for other reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A Trade Order cannot match on the internal order book and the Custodian has disabled access to one or more approved counterparties
due to trading limits, credit risk or for other reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. A Trade Order that remains open at the end of time in force limits specified by the Custodian; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Trade Orders that the Custodian determines (in its sole discretion) to be clearly erroneous.

**<u>Schedule 3</u>**

**<u>Policy Statement on Forks</u>**

(as of November 29, 2019)

<u>Introduction</u>

Disagreements among developers of digital assets can result in non-backwards compatible changes to the consensus rules of a blockchain, which can cause two (or more) digital assets to appear that are essentially copies of one another, with balances on both chains. "Hard" forks and airdrops result in the creation of new digital assets, but do not necessarily create value. Digital assets that result from hard forks or airdrops may not be available to customers of Fidelity Digital Asset Services, LLC ("<u>FDAS</u>").

<u>Background</u>

Set forth below are certain terms that are sometimes used when discussing forks.

A "<u>hard fork</u>" is a fork that changes the consensus rules of the network in a non-backwards compatible way. Hard forks, including those with widespread community support, require updates to software.

A "<u>soft fork</u>" is a fork that changes the consensus rules of the network in a backwards compatible way. These forks are voluntary; using the fork's new features is an option, but not a requirement, that can be taken into account by users of the network.

A "<u>51% attack</u>" can occur when a fork does not change the "proof of work" function, and one of the resulting forks has a significantly higher hashrate than the other. In such circumstances, miners who switch their hashrate temporarily to the minority chain are able to reverse transactions, which can result in losses.

A "<u>replay attack</u>" occurs when the fork does not change the transaction format so that a transaction is valid on both chains. Some forks have chosen not to implement replay protection, and others have chosen to implement new transaction signing mechanisms that avoid movement of funds on both chains when a user intended to move them on only one chain.

An "<u>airdrop</u>" is a general term for a new coin or fork that imports addresses from another coin. It is a way to distribute assets to users of a network without conducting a sale.

The "<u>address</u>" on a blockchain is a "payment instruction" and generally contains a unique identifier that identifies the coin (e.g., starts with 1 or 3 for bitcoin addresses). Confusion and additional risks arise when a fork does not change the address format.

A "<u>chain reorganization</u>" can occur when a hard fork does not change its proof of work function, and one side has more hashrate than the other initially but that hashrate moves to another fork after the fork activates. This can reorganize the minority chain deposits received even before the fork, and is the reason why exchanges may pause operations for a period of time before a fork is deployed.

<u>Policy</u>

In light of the foregoing, a hard fork can be considered an attack on the user's key management policies and introduces additional risks. In connection with the occurrence or anticipated occurrence of a fork, FDAS may suspend operations (with or without advance notice) while it evaluates the consequences of a fork and determines which chain resulting from the fork it will support as an Eligible Asset under this Agreement.

FDAS is not responsible for hard forks or soft forks, any of which may result in material changes to the value or functioning of a digital asset.

FDAS may, but is not required to, implement the features of future soft forks of digital assets.

In the event of a hard fork of a digital asset, FDAS will determine in its sole discretion which branch of the blockchain it will support, and FDAS is under no obligation to support any other forks or versions of digital assets. FDAS will use reasonable efforts to notify its clients of hard forks that, in its sole discretion, may result in a material change to a network for the related digital asset; however, it remains the responsibility of the Client to make itself aware of hard forks and their consequences. In determining whether or not to support a fork and provide services with respect to the related digital asset as an Eligible Asset under this Agreement, FDAS will evaluate various technical and market considerations that it determines to be relevant at that time. Those considerations could include, but are not limited 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;1. technical attributes of the fork (e.g., changes in proof of work function and/or address format; replay protection);

&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. timing of the announcement and implementation of the fork;

&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. support of the new asset from development teams;

&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. treatment of new asset by leading trading venues;

&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. price and trading volumes; 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;6. regulatory and tax considerations.

However, a decision by FDAS is not required to be based on the factors set forth above and could include other considerations that FDAS determines to be relevant at the time. FDAS will use reasonable efforts to allow customers within a prescribed period of time to withdraw digital assets that are created as a result of a hard fork or airdrop and that FDAS determines not to support; however, it is not required to do so.

## Exhibit 10.13

**Exhibit 10.13**

**EMPLOYMENT AGREEMENT**

This Employment Agreement (the "<u>Agreement</u>"), entered into as of November 13, 2025, with employment commencing on November 17, 2025 (the "<u>Effective Date</u>"), is made by and between Andy Stewart (the "<u>Executive</u>") and Ionic Digital Inc., a Delaware corporation (the "<u>Company</u>").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. It is the desire of the Company to assure itself of the services of the Executive by engaging the Executive to perform services under the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Executive desires to provide services to the Company on the terms herein provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. This Agreement is intended to supersede any prior agreements or understandings, whether formal or informal, between the Executive and the Company or any of its Affiliates (as defined below).

**AGREEMENT**

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below, the parties hereto agree as follows:

1. <u>Certain Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Accountants</u>" shall have the meaning set forth in Section 12(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Accrued Obligations</u>" shall have the meaning set forth in Section 5(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Action</u>" shall have the meaning set forth in Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Affiliate</u>" shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person, where "control" shall have the meaning given such term under Rule 405 of the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Agreement</u>" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Annual Base Salary</u>" shall have the meaning set forth in Section 3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Annual Bonus</u>" shall have the meaning set forth in Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Board</u>" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Business</u>" shall have the meaning set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company shall have "<u>Cause</u>" to terminate the Executive's employment pursuant to Section 4(a)(iii) hereunder upon the occurrence of any of the following, as determined by the Board based on facts available to the Board at the time of determination: (i) willful and continued failure to perform his duties to the Company, other than any such failure resulting from his incapacity due to physical or mental illness; provided, that the performance of the Company, in of itself, shall not be considered evidence of his failure to perform his duties with the Company, so long as he is exerting his reasonable best efforts in good faith; (ii) willful misconduct that is or may reasonably be expected to be materially injurious to the Company or any of its affiliates; (iii) material breach of the Company's code of conduct or any other material policy of the Company that is applicable to the Executive; (iv) engagement in fraud, embezzlement or illegal or unethical conduct which is, in each case, materially injurious to the Company or any of its affiliates; (v) conviction of, or a plea of guilty or no contest to, any (A) felony or comparable crime under foreign law or (B) criminal offense involving fraud, dishonesty or moral turpitude; or (vi) the Executive's breach of the (A) confidentiality or non-disparagement provisions or (B) the non-competition and non-solicitation provisions to which the Executive is subject, including, without limitation, Sections 6 and 7 hereof; <u>provided</u> that the Company shall provide the Executive with written notice of the events or occurrences described above, and, to the extent curable and reasonably capable of prompt cure, an opportunity to cure within ten (10) calendar days (except that the Executive shall not be given more than one opportunity in the aggregate to remedy such occurrences).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Code</u>" shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Company</u>" shall, except as otherwise provided in Sections 6 and 7, have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Company Parties</u>" shall have the meaning set forth in Section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Competing Business</u>" shall have the meaning set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Confidential Information</u>" shall have the meaning set forth in Section 7(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Corporate Opportunities</u>" shall have the meaning set forth in Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Date of Termination</u>" shall mean (i) if the Executive's employment is terminated by his death, the date of his death, (ii) if the Executive's employment is terminated pursuant to Section 4(a)(ii)-(v), the date specified or otherwise effective pursuant to Section 4(b) or (iii) if the Executive's employment is terminated upon expiration of the Term due to either party's non-renewal in accordance with Section 2(b), the last day of the then-current Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Disability</u>" shall mean the disability of the Executive caused by any physical or mental injury, illness or incapacity as a result of which Executive has been unable to effectively perform the essential functions of Executive's duties for a continuous period of more than 90 days or for any 180 days (whether or not continuous) within a 365-day period, as determined by the Board in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Effective Date</u>" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Excess Parachute Payment</u>" shall have the meaning set forth in Section 12(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Excise Tax</u>" shall have the meaning set forth in Section 12(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Executive</u>" shall have the meaning set forth in the preamble hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Full Payment</u>" shall have the meaning set forth in Section 12(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Governmental Entity</u>" means any national, state, county, local, municipal, or other government or any court of competent jurisdiction, administrative agency, commission or other governmental authority or instrumentality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Inventions</u>" shall have the meaning set forth in Section 7(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Notice of Termination</u>" shall have the meaning set forth in Section 4(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Person</u>" shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Entity, or other entity of whatever nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Proprietary Rights</u>" shall have the meaning set forth in Section 7(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Reduced Payment</u>" shall have the meaning set forth in Section 12(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Restricted Period</u>" shall have the meaning set forth in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Section 409A</u>" shall have the meaning set forth in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Severance Payments</u>" shall have the meaning set forth in Section 5(b)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Severance Period</u>" shall have the meaning set forth in Section 5(b)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>Target Bonus</u>" shall have the meaning set forth in Section 3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Term</u>" shall have the meaning set forth in Section 2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Transaction Payment</u>" shall have the meaning set forth in Section 12(a).

2. <u>Employment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In General</u>. The Company shall employ the Executive, and the Executive shall enter the employ of the Company, for the period set forth in Section 2(b), in the position set forth in Section 2(c), and upon the other terms and conditions herein provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term of Employment</u>. The Company agrees to employ the Executive, and the Executive agrees to be employed by the Company, in each case, pursuant to this Agreement, for a period commencing on the Effective Date, and continuing until the Date of Termination (such period, the "<u>Term</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Position and Duties</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;(i) <u>Position</u>. During the Term, the Executive shall serve as the Chief Executive Officer of the Company, with duties, responsibilities and authority customary for such position. Such duties, responsibilities and authority may include services for one or more subsidiaries or Affiliates of the Company. The Executive shall report to the Board. The Executive shall devote the Executive's full business time, skill, attention to the performance of the Executive's duties hereunder; <u>provided</u>, <u>however</u>, that the Executive shall be entitled to (A) serve on civic, charitable and religious boards and, with advance written notice to the Board, one (1) for-profit board of directors and (B) manage the Executive's personal and family investments, in each case, to the extent that such activities do not materially interfere with the performance of the Executive's duties and responsibilities hereunder, are not in conflict with the business interests of the Company or its Affiliates and do not otherwise compete with the business of the Company or its Affiliates. For the avoidance of doubt, if a majority of the Board determines that the Executive is providing services to another entity that is competitive with the Company, the Executive shall cease to provide such services (as a director or otherwise) as soon as possible following the Executive's receipt of written notice from the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Board Service</u>. As of the Effective Date, the Company shall cause the Executive to be appointed a director of the Company, or if unable to be appointed directly, then nominate Executive to be appointed as a director of the Company. During the Term, the Company shall nominate the Executive for re-election as a director of the Company upon the expiration of the Executive's initial term as a director and upon the expiration of each subsequent term thereafter.

3. <u>Compensation and Related Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Base Salary</u>. During the Term, the Executive shall receive a base salary at a rate of five hundred thousand dollars ($500,000) per annum, which shall be paid in accordance with the customary payroll practices of the Company, subject to annual review and possible increase (but not decrease) as determined by the Board in its sole discretion, except for any proportionate reduction that applies as part of a reduction to substantially all senior executives of the Company (the "<u>Annual Base Salary</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Bonus</u>. With respect to each fiscal year that ends during the Term, the Executive shall be eligible to receive an annual cash bonus (the "<u>Annual Bonus</u>"), with a target Annual Bonus amount equal to one hundred percent (100%) of the Annual Base Salary (the "<u>Target Bonus</u>"). The Executive's actual Annual Bonus for a given year, if any, shall be determined in the Board's sole discretion on the basis of the Executive's and/or the Company's attainment of objective financial and/or other subjective or objective criteria established by the Board and determined by objectives proposed by the Executive and advocated by the chairman of the compensation committee of the Board. Notwithstanding the foregoing, (i) the Executive's Annual Bonus for the 2025 fiscal year shall be equal to the prorated portion of Target Bonus, determined based on the number of days worked in such fiscal year, which bonus will be paid by March 15, 2026, and (ii) the Executive's Annual Bonus for the 2026 fiscal year will be no less than $250,000. If the Company enters into a definitive transaction agreement with respect to a liquidity event, or an initial public offering is registered, in each case by June 30, 2026, the Executive's Annual Bonus for the 2026 fiscal year will be no less than $500,000. Notwithstanding the foregoing, no Annual Bonus shall be payable with respect to any fiscal year unless the Executive remains continuously employed with the Company on the date of payment, except as otherwise provided in Section 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benefits</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;(i) During the Term, the Executive shall be entitled to participate in the employee benefit plans, programs and arrangements of the Company now (or, to the extent determined by the Board, hereafter) in effect, subject to and in accordance with their terms, including pension benefits and medical and welfare benefits. For the avoidance of doubt, nothing herein is intended, or shall be construed, to require the Company or its Affiliates to institute or continue any particular benefit plan, program or arrangement, and such benefit plans, programs or arrangements may be amended or terminated from time to time in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Vacation</u>. During the Term, the Executive shall be entitled to vacation that is no less favorable than other senior executives at the Company, in accordance with the Company's vacation policies as in effect from time to time. Any vacation shall be taken at the reasonable and mutual convenience of the Company and the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Equity</u>. As soon as reasonably practicable following the Effective Date, the Executive shall be granted 186,875 Restricted Stock Units and 560,625 Performance Stock Units (the "<u>Equity Award</u>"), subject to such other terms and conditions as set forth in the Company's Omnibus Incentive Plan and the award agreements substantially in the forms attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Business Expenses</u>. During the Term, the Company shall reimburse the Executive for all reasonable travel and other business expenses incurred by the Executive in the performance of the Executive's duties to the Company, in accordance with the Company's expense reimbursement policies and procedures (which shall include appropriate itemization and substantiation of expenses incurred).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Additional Compensation</u>. Except as otherwise provided herein, the Executive shall not be entitled to any additional compensation for his service as a member of the Board or other positions or titles he may hold with any subsidiary or Affiliate of the Company to the extent he is so appointed.

4. <u>Termination</u>. The Executive's employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Circumstances</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;(i) <u>Death</u>. The Executive's employment hereunder shall terminate upon his death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Disability</u>. If the Executive has incurred a Disability, the Company may give the Executive written notice of its intention to terminate the Executive's employment. In that event, the Executive's employment with the Company shall terminate effective on the later of the thirtieth (30<sup>th</sup>) calendar day after receipt of such notice by the Executive and the date specified in such notice; <u>provided</u> that within the thirty (30) calendar day period following receipt of such notice, the Executive shall not have returned to full-time performance of his duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Termination with Cause</u>. The Company may terminate the Executive's employment with Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Termination without Cause</u>. The Company may terminate the Executive's employment without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Resignation</u>. The Executive may resign from the Executive's employment upon not less than forty-five (45) calendar days' advance written notice to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Termination</u>. Any termination of the Executive's employment by the Company or by the Executive under this Section 4 (other than termination pursuant to Section 4(a)(i) (death)) shall be communicated by a written notice to the other party hereto (i) indicating the specific termination provision in this Agreement relied upon, (ii) except with respect to a termination pursuant to Section 4(a)(iv) (Termination without Cause), setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (iii) specifying a Date of Termination as provided herein (a "<u>Notice of Termination</u>"). If the Company delivers a Notice of Termination under Section 4(a)(ii) (Disability), the Date of Termination shall be at least thirty (30) calendar days following the date of such notice; <u>provided</u>, <u>however</u>, that such notice need not specify a Date of Termination, in which case the Date of Termination shall be determined pursuant to Section 4(a)(ii). If the Company delivers a Notice of Termination under Section 4(a)(iii) or 4(a)(iv) (Termination with Cause, Termination Without Cause), the Date of Termination shall be, in the Company's sole discretion, the date on which the Executive receives such notice or any subsequent date selected by the Company. The failure by the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Cause shall not waive any right of the Company hereunder or preclude the Company from asserting such fact or circumstance in enforcing the Company's rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of All Positions</u>. Upon termination of the Executive's employment for any reason, the Executive agrees to resign, as of the Date of Termination or such other date requested by the Company, from all positions on the Board and all committees thereof (and, if applicable, from the board of directors or similar governing bodies (and all committees thereof) of all other Affiliates of the Company) and from all other positions and offices that the Executive then holds with the Company and its subsidiaries and Affiliates. The Executive agrees to promptly execute such documents as the Company, in its sole discretion, shall reasonably deem necessary to effect such resignations, and in the event that the Executive is unable or unwilling to execute any such document, Executive hereby grants his proxy to any officer of the Company to so execute on his behalf.

5. <u>Company Obligations upon Termination of Employment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In General</u>. Subject to Section 11(b), upon termination of the Executive's employment for any reason, the obligations of the Company to pay or provide the Executive with compensation and benefits under Section 3 shall cease, and the Company shall have no further obligations to provide compensation or benefits to the Executive hereunder except the Executive (or the Executive's estate) shall be entitled to receive (i) any amount of the Executive's Annual Base Salary earned through the Date of Termination not theretofore paid, (ii) any amount arising from the Executive's participation in, or benefits under, any employee benefit plans, programs or arrangements under Section 3(c) (other than severance plans, programs or arrangements), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements including, where applicable, any death and disability benefits, (iv) any accrued vacation pay owed to the Executive pursuant to Section 3(d) and (v) any expenses owed to the Executive under Section 3(f) (the "<u>Accrued Obligations</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination without Cause</u>. Subject to Section 11(b) and subject to the Executive's continued compliance with the covenants contained in Sections 6 and 7, if the Company terminates the Executive's employment without Cause pursuant to Section 4(a)(iv), the Company shall, in addition to the Accrued Obligations:

&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) Continue to pay the Annual Base Salary in accordance with the Company's customary payroll practices during the period (the "<u>Severance Period</u>") beginning on the Date of Termination and ending on the earlier to occur of (A) the twelve (12) month anniversary of the Date of Termination and (B) the first date that the Executive violates any covenant contained in Section 6 and 7 (the "<u>Severance Payments</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;(ii) pay the Executive a prorated portion of the Annual Bonus payable with respect to the fiscal year in which such termination occurs, determined on a daily basis, based solely on the actual level of achievement of the applicable performance goals for such year, and payable if and when annual bonuses are paid to other senior executives of the Company with respect to such year; 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;(iii) to the extent not paid as of the Date of Termination, pay the Executive the Annual Bonus payable with respect to the fiscal year immediately preceding the calendar year in which such termination occurs, based on actual performance for such year, and payable if and when annual bonuses are paid to other senior executives of the Company with respect to such year;

<u>provided</u>, <u>however</u>, that notwithstanding the foregoing, (A) the amounts payable to the Executive under this Section 5(b) shall be contingent upon and subject to the Executive's execution and non-revocation of a general waiver and release of claims agreement in the Company's customary form (and the expiration of any applicable revocation period), on or prior to the sixtieth (60<sup>th</sup>) calendar day following the Date of Termination; and (B) the installment payments pursuant to this Section 5(b) shall commence on the first payroll period following the effective date of such release of claims, and the initial installment shall include a lump-sum payment of all amounts accrued under this Section 5(b) from the Date of Termination through the date of such initial payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Survival</u>. The expiration or termination of the Term shall not impair the rights or obligations of any party hereto, which shall have accrued prior to such expiration or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Other Severance</u>. Executive expressly acknowledges that any severance payments and benefits under the Section 5(b) are in lieu of any other payments or benefits that the Executive may otherwise be eligible to receive under any Company plan, policy or program providing for severance, separation pay or salary continuation payments or benefits.

6. <u>Non-Competition; Non-Solicitation; Non-Hire</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Acknowledgements</u>. The Executive acknowledges that the Company has expended and shall continue to expend substantial amounts of time, money and effort to develop business strategies, employee and customer relationships and goodwill and build an effective organization. The Executive acknowledges that the Executive is and shall become familiar with the Company's Confidential Information (as defined below), including trade secrets, and that the Executive's services are of special, unique and extraordinary value to the Company and its Affiliates. The Executive acknowledges that the Company has a legitimate business interest and right in protecting its Confidential Information, business strategies, employee and customer relationships and goodwill, and that the Company would be seriously damaged by the disclosure of Confidential Information and the loss or deterioration of its business strategies, employee and customer relationships and goodwill. The Executive acknowledges (i) that the business of the Company and its Affiliates is national in scope and without geographical limitation within the United States and (ii) notwithstanding the jurisdiction of formation or principal office of the Company and its Affiliates, or the location of any of their respective executives or employees (including, without limitation, the Executive), it is expected that the Company and its Affiliates will have business activities and have valuable business relationships within their respective industries throughout the United States. The Executive further acknowledges that although the Executive's compliance with the covenants contained in Sections 6 and 7 may prevent the Executive from earning a livelihood in a business similar to the business of the Company, the Executive's experience and capabilities are such that the Executive has other opportunities to earn a livelihood and adequate means of support for the Executive and the Executive's dependents. In addition, the Executive agrees and acknowledges that the potential harm to the Company of the non-enforcement of Sections 6 and 7 outweighs any potential harm to the Executive of their enforcement by injunction or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Restrictions</u>. The Executive shall not, at any time during the Term or during the twelve (12) month period (the "<u>Restricted Period</u>") following the Date of 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;(i) directly or indirectly engage in, provide services to, have any equity interest in, or manage or operate any Person, firm, corporation, partnership, business or entity (a "<u>Business</u>") (whether as director, officer, employee, principal, agent, representative, owner, partner, member, security holder, consultant, volunteer or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) the digital infrastructure and cryptocurrency mining business, including the development of facilities related to digital infrastructure and cryptocurrency mining in any geographic location in which the Company, its subsidiaries or Affiliates engage in, whether through selling, distributing, manufacturing, marketing, purchasing, or otherwise, that competes with the Company or any entity owned by the Company (a "<u>Competing Business</u>") if performing the duties and responsibilities of such engagement or association could result in the Executive (1) intentionally or unintentionally using, disclosing or relying on Confidential Information (as defined below) to which the Executive had access by virtue of the Executive's job duties or other responsibilities with the Company or (2) exploiting customer goodwill cultivated in the course of the Executive's employment with the Company. Notwithstanding the foregoing, the Executive shall be permitted to (I) acquire a passive stock or equity interest in such a Competing Business (including the stock that the Executive owns on the date hereof in Flexential and TierPoint); <u>provided</u> that the stock or other equity interest acquired is not more than five percent (5%) of the outstanding interest in such Business and the Executive does not actively participate in the business of such Business, and (II) following the termination of the Executive's employment with the Company, advise financial sponsors in matters that are not competitive with any businesses 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;(ii) directly or indirectly solicit or recruit, on his own behalf or on behalf of any other Person, the services of, or hire or engage, or interfere with the Company's relationship with, any individual who is (or, at any time during the Term, was) an employee, independent contractor or director of the Company, or solicit any of the Company's then-current employees, independent contractors or directors to terminate services with the Company; <u>provided</u> that the placement of general advertisements in newspapers, magazines or electronic media shall not, by itself, constitute a breach of this Section 6(b)(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) directly or indirectly, on his own behalf or on behalf of any other Person, recruit or otherwise solicit, any customer, client, distributor, vendor, sales agency, independent sales representative, subscriber, supplier, licensee, licensor or other business relation of the Company, or encourage or induce any such Person to terminate its arrangement with the Company or otherwise change or interfere with its relationship with the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) perform any action, activity or course of conduct which is substantially detrimental to the businesses or business reputations of the Company or any of its subsidiaries or Affiliates, including (A) interfering with the relationship of the Company or any of its subsidiaries or Affiliates with any Person who or which is employed by or otherwise engaged to perform services for, or any customer, client, distributor, vendor, sales agency, independent sales representative, subscriber, supplier, licensee, licensor or other business relation of the Company or any of its subsidiaries or Affiliates or (B) assisting any Person in any way to do, or attempt to do, anything prohibited by Section 6(b)(i), (ii), (iii) or (iv)(A) above.

The Restricted Period shall be tolled during (and shall be deemed automatically extended by) any period in which the Executive is in violation of any of the provisions of Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Enforceability</u>. In the event that the terms of this Section 6 shall be determined by a final and non-appealable judicial decision by a court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. Moreover, and without limiting the generality of Section 8, notwithstanding the fact that any provision of this Section 6 is determined not to be specifically enforceable, the Company will nevertheless be entitled to recover monetary damages as a result of the Executive's breach of such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Company Defined</u>. As used in this Section 6, the term "Company" shall include the Company, and any direct or indirect subsidiaries and Affiliates thereof and any successors thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. The provisions contained in Section 6(b) may be waived with the prior written consent of the Board.

7. <u>Non-Disclosure of Confidential Information; Non-Disparagement; Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Disclosure of Confidential Information; Return of Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Confidential Information</u>. Except as required in the faithful performance of the Executive's duties hereunder, during the Term and in perpetuity thereafter, the Executive shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Executive's benefit or the benefit of any Person, any confidential or proprietary information or trade secrets (A) of or relating to the Company or any of its Affiliates, including, without limitation, information with respect to the Company's or any of its Affiliates' operations, protocols, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment or (B) that was or is received or obtained in confidence by, or on behalf of the Company from any other Person (collectively, "<u>Confidential Information</u>"), or deliver to any Person any document, record, notebook, computer program or similar repository of or containing any such Confidential Information; <u>provided</u> that the Executive's good faith performance of the Executive's duties and responsibilities for the Company and its Affiliates during employment shall not be deemed a breach of this Section 7(a). Upon the Executive's termination of employment for any reason, the Executive shall promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents or any other documents concerning the Company's or any of its Affiliates' Confidential Information, customers, business plans, marketing strategies, products or processes. The Executive further agrees that any property situated on the premises of, and owned by, the Company or its subsidiaries or Affiliates, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by the Company's personnel at any time with or without notice. The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and shall assist such counsel in resisting or otherwise responding to such process; <u>provided</u> that, subject to Section 7(a)(iv), (A) the Executive shall promptly notify the Company in writing, and consult with and assist the Company in seeking a protective order or request for other appropriate remedy, (B) in the event that such protective order or remedy is not obtained, or if the Company waives compliance with the terms hereof, the Executive shall disclose only that portion of the Confidential Information which, based on the written advice of the Executive's legal counsel, is legally required to be disclosed and shall exercise reasonable best efforts to provide that the receiving Person shall agree to treat such Confidential Information as confidential to the extent possible (and permitted under applicable law) in respect of the applicable proceeding or process and (C) the Company shall be given an opportunity to review the Confidential Information prior to disclosure thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Disputes</u>. Without limiting the foregoing, the Executive agrees to keep confidential the existence of, and any information concerning, any dispute between the Executive and the Company or its Affiliates, except that the Executive may disclose information concerning such dispute to the Executive's immediate family, to the Company's senior management and legal personnel charged with handling any such disputes, to the court that is considering such dispute or to the Executive's financial and legal counsel and advisors (provided that such counsel and advisors agree not to disclose any such information other than as necessary to the prosecution or defense of such dispute).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Prior Employer Information</u>. The Executive further agrees that the Executive will not improperly use or disclose any confidential information, proprietary information or trade secrets, if any, of any former employers or any other Person to whom the Executive has an obligation of confidentiality, and will not bring onto the premises of the Company or its Affiliates any unpublished documents or any property belonging to any former employer or any other Person to whom the Executive has an obligation of confidentiality unless consented to in writing by the former employer or other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Permissible Disclosure of Confidential Information</u>. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit the Executive from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Executive does not need the prior authorization of the Company to make any such reports or disclosures and the Executive is not required to notify the Company that the Executive has made such reports or disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Disparagement; Media Statements</u>. The Executive shall not, at any time during the Term and in perpetuity thereafter, directly or indirectly, disparage, criticize or otherwise make derogatory statements (whether or not such statements legally constitute libel or slander) regarding the Company or any of its Affiliates, successors, shareholders, partners, members, employees, directors or officers (the "<u>Company Parties</u>"). The foregoing shall not be violated by the Executive's truthful responses to legal process or inquiry by a Governmental Entity or to incorrect, disparaging or derogatory public statements to the extent reasonably necessary to correct or refute such public statements. During and after any employment with the Company, regardless of how, when or why such employment ends, the Executive shall not, absent the explicit prior written approval of the Company, (i) announce or otherwise make any statement relating to the actual, intended or proposed termination of the Executive's employment with the Company (other than disclosure to the Executive's immediate family, professional or medical advisers provided the Executive ensures such individuals maintain the confidentially of this information), (ii) comment upon or discuss any of the Company or the Company Parties (whether disparagingly or otherwise) in or through any media (including, but not limited to, any online or social media), (iii) make any statement, posting or other communication that purports to be on behalf of any of the Company or the Company Parties, or which a third party may reasonably perceive has been authorized, approved or endorsed by any of the Company or the Company Parties or reflects the views of any of the Company Parties, (iv) share, post, transmit or upload any material related in any material respect to any of the Company or the Company Parties with, to, through or on any online or other media or (v) aid or assist any other Person to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Intellectual Property 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;(i) <u>Inventions and Proprietary Rights</u>. The Executive agrees that the results and proceeds of the Executive's services for the Company (including, but not limited to, any trade secrets, products, services, processes, know-how, designs, developments, innovations, analyses, drawings, reports, techniques, technology, formulas, methods, developmental or experimental work, improvements, discoveries, inventions, ideas, source and object codes, programs, matters of a literary, musical, dramatic or otherwise creative nature, writings and other works of authorship) resulting from services performed while an employee of the Company or otherwise in the course of Executive's work for the Company and any works in progress, whether or not patentable or registrable under copyright or similar statutes, that were made, developed, conceived or reduced to practice or learned by the Executive, either alone or jointly with others (collectively, "<u>Inventions</u>"), shall be works-made-for-hire and the Company shall be the sole and exclusive owner throughout the universe of any and all trade secret, patent, copyright and other intellectual property rights (collectively, "<u>Proprietary Rights</u>") of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion, without any further payment to the Executive whatsoever. Executive hereby irrevocably assigns and agrees to assign any and all of the Executive's right, title and interest in and to all Inventions, including, without limitation, any and all Proprietary Rights of whatsoever nature therein and thereto, whether or not now or hereafter known, existing, contemplated, recognized or developed, to the Company, and the Company shall have the right to use the same in perpetuity throughout the universe in any manner determined by the Company without any further payment to the Executive whatsoever. Executive shall promptly and fully disclose to the Company all information known to the Executive concerning such Inventions. The Executive hereby irrevocably assigns to the Company any and all claims, of any nature whatsoever, that the Executive now or may hereafter have for past, present or future infringement of any Proprietary Rights assigned hereunder 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;(ii) <u>Moral Rights</u>. To the maximum extent permitted by applicable law, Executive hereby irrevocably and unconditionally waives, quitclaims and agrees never to assert, in each case with respect to the Company or any successor or assignee thereof, any claims Executive may now or hereafter have in any jurisdiction to any rights of paternity, integrity, disclosure and withdrawal or any other rights that may be known or referred to as "moral rights" or "authors rights" ("<u>Moral Rights</u>") in or with respect to any Inventions or Proprietary Rights or the use of any of the foregoing. To the extent any Moral Rights cannot be so waived or quitclaimed, Executive hereby consents to any action of the Company or its successor or assignee that would violate such Moral Rights in the absence of such consent. The foregoing waiver, quitclaim, non-assertion and consent are made in favor of, and extend to the Company and all successors and assignees thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Use of Prior IP</u>. Executive agrees not to use, incorporate or include, or permit or cause to be used, incorporated or included, any intellectual property or other proprietary rights owned or purported to be owned by Executive or any other Person (collectively, "<u>Prior IP</u>"), in each case with or in any Inventions or any products or services (or any component or portion thereof) of the Company, in each case, without the prior written consent of the Company. Notwithstanding the foregoing, if, in the course of Executive's employment by the Company, Executive uses, incorporates or includes, or permits or causes to be used, incorporated or included, any Prior IP, in each case with or in any of the Inventions or any products or services (or any component or portion thereof) of the Company, or if Executive uses, or permits or causes to be used, any Prior IP within the scope of Executive's employment by the Company or otherwise in the performance of Executive's work or services for or on behalf of the Company, Executive hereby grants to the Company a perpetual, irrevocable, non-exclusive, worldwide, freely-transferable, royalty-free and fully paid up license (with the right to grant sublicenses through multiple levels of sublicensees) under all proprietary rights to make, have made, use, sell, offer to sell, license, import, export, reproduce, modify, create derivative works of and works based upon, perform, display, execute, distribute, digitally transmit and otherwise exploit any of such Prior IP in any medium or format, whether now known or hereafter developed or discovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Executive Assistance</u>. The Executive agrees that, from time to time, as may<br> be requested by the Company and at the Company's sole cost and expense, the Executive shall do any and all things that the Company may reasonably deem useful or desirable to establish or document the Company's exclusive ownership throughout the United States of America or any other country of any and all Proprietary Rights in any such Inventions, including, without limitation, the execution of appropriate copyright and/or patent applications or assignments. To the extent the Executive has any Proprietary Rights in the Inventions that cannot be assigned in the manner described above, the Executive unconditionally and irrevocably waives the enforcement of such Proprietary Rights and grants the Company a perpetual, irrevocable, exclusive, worldwide, freely-transferable, royalty-free and fully paid up license (with the right to grant sublicenses through multiple levels of sublicensees), under all proprietary rights, to make, have made, use, sell, offer to sell, license, import, export, reproduce, modify, create derivative works of and works based upon, perform, display, execute, distribute, digitally transmit and otherwise exploit any Proprietary Rights and Inventions in any medium or format, whether now known or hereafter developed or discovered. This Section 7(c) is subject to and shall not be deemed to limit, restrict or constitute any waiver by the Company of any Proprietary Rights of ownership to which the Company may be entitled by operation of law by virtue of the Executive's employment with the Company. The Executive further agrees that, from time to time, as may be requested by the Company and at the Company's sole cost and expense, the Executive shall assist the Company in every proper and lawful way to obtain and from time to time enforce Proprietary Rights relating to Inventions in any and all countries. To this end, the Executive shall execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. In addition, the Executive shall execute, verify and deliver assignments of such Proprietary Rights to the Company or its designees. The Executive's obligation to assist the Company with respect to Proprietary Rights relating to such Inventions in any and all countries shall continue beyond the termination of the Executive's employment with the Company. If the Company is unable, due to Executive's unavailability or for any other reason, to secure Executive's signature with respect to any documents in connection with any action described in this Section 6(iv), Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Executive's agent and attorney-in-fact, to act for and on Executive's behalf and stead to execute such documents and to do all other lawfully permitted acts to further any application for, or any prosecution, issuance, maintenance, assignment or transfer of, any Inventions or Proprietary Rights pertaining or related to any such Inventions, or to otherwise carry out the purposes of this Agreement, with the same legal force and effect as if originally executed by Executive. This designation and appointment is deemed coupled with an interest and is irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Permissible Disclosure of Trade Secrets</u>. Notwithstanding anything to the contrary contained herein, the Executive shall not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made: (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the Company's trade secrets to the Executive's attorney and use the trade secret information in the court proceeding if the Executive: (1) files any document containing the trade secret under seal; and (2) does not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Company Defined</u>. As used in this Section 7, the term "Company" shall include Holdings, the Company and any direct or indirect subsidiaries and Affiliates thereof and any successors thereto.

8. <u>Injunctive Relief</u>. The Executive recognizes and acknowledges that a breach of any of the covenants contained in Sections 6 and 7 will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Sections 6 and 7, in addition to any other remedy that may be available at law or in equity, the Company shall be entitled (without the necessity of showing economic loss or other actual damage) to specific performance and injunctive relief (including temporary restraining orders, preliminary injunctions and/or permanent injunctions) in any court of competent jurisdiction for any actual or threatened breach of any of the covenants set forth in Section 6 or 7. The preceding sentence shall not be construed as a waiver of the rights that the Company and its Affiliates may have for damages under this Agreement or otherwise, and all of the Company's and its Affiliates' rights shall be unrestricted.

9. <u>Indemnification</u>. During the Executive's employment and service as a director or officer (or both) and at all times thereafter during which the Executive may be subject to liability, the Executive shall be entitled to indemnification set forth in the Company's Certificate of Incorporation and By-laws to the maximum extent allowed under the laws of the State of Delaware. Executive shall be entitled to the protection of any insurance policies the Company may elect to maintain generally for the benefit of its directors and officers against all costs, charges and expenses incurred or sustained by him in connection with any action, suit or proceeding to which he may be made a party by reason of his being or having been a director, officer or employee of the Company or any of its subsidiaries (other than any dispute, claim or controversy arising under or relating to this Agreement). Notwithstanding anything to the contrary herein, the Executive's rights under this Section 9 shall survive the termination of his employment for any reason and the expiration of this Agreement for any reason. For the avoidance of doubt, the Executive is not entitled to advancement of legal fees.

10. <u>Cooperation</u>. The Executive agrees that during and after his employment with the Company, upon reasonable notice and without the necessity of the Company's obtaining a subpoena or court order, the Executive shall assist the Company and its Affiliates in the defense of any claims or potential claims that may be made or threatened to be made against the Company or any of its Affiliates in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise, that are not adverse to the Executive (each, an "<u>Action</u>"), and shall assist the Company and its Affiliates in the prosecution of any claims that may be made by the Company or any of its Affiliates in any Action, to the extent that such claims may relate to the Executive's employment or the period of the Executive's employment by the Company and its Affiliates. The Executive agrees, unless precluded by law, to promptly inform the Company if the Executive is asked to participate (or otherwise become involved) in any such Action. The Executive also agrees, unless precluded by law, to promptly inform the Company if the Executive is asked to assist in any investigation (whether governmental or otherwise) of the Company or any of its Affiliates (or their actions) to the extent that such investigation may relate to the Executive's employment or the period of the Executive's employment by the Company, regardless of whether a lawsuit has then been filed against the Company or any of its Affiliates with respect to such investigation. The Company or one of its Affiliates shall reimburse the Executive for all of the Executive's reasonable out-of-pocket expenses associated with such cooperation following his Date of Termination.

11. <u>Section 409A of the Code</u>. The parties hereto acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code and the Department of Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date ("<u>Section 409A</u>"). Notwithstanding any provision of this Agreement to the contrary, in the event that the Company determines that any amounts payable hereunder will be taxable currently to the Executive under Section 409A(a)(1)(A) of the Code and related Department of Treasury guidance, the Company and the Executive shall cooperate in good faith to (i) adopt such amendments to this Agreement and appropriate policies and procedures, including amendments and policies with retroactive effect, that they mutually determine to be necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Agreement, to preserve the economic benefits of this Agreement, and to avoid less-favorable accounting or tax consequences for the Company, and/or (ii) take such other actions as mutually determined to be necessary or appropriate to exempt the amounts payable hereunder from Section 409A or to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes thereunder; <u>provided</u>, <u>however</u>, that this Section 11 does not create an obligation on the part of the Company to modify this Agreement and does not guarantee that the amounts payable hereunder will not be subject to interest or penalties under Section 409A, and in no event whatsoever shall the Company or any of its Affiliates be liable for any additional tax, interest or penalties that may be imposed on the Executive as a result of Section 409A or any damages for failing to comply with Section 409A.

12. <u>Corporate Opportunity</u>. During the Term, the Executive shall submit to the Board all business, commercial and investment opportunities or offers presented to the Executive or of which the Executive becomes aware which relate to the business of the Company and its Subsidiaries at any time during the Term ("<u>Corporate Opportunities</u>").Unless approved by the Board, the Executive shall not accept or pursue, directly or indirectly, any Corporate Opportunities on the Executive's own behalf.

13. <u>Assignment and Successors</u>. The Company may assign its rights and obligations under this Agreement to any entity, including any successor to all or substantially all the assets of the Company, by merger or otherwise, and may assign or encumber this Agreement and its rights hereunder as security for indebtedness of the Company and its Affiliates. The Executive may not assign the Executive's rights or obligations under this Agreement to any individual or entity. This Agreement shall be binding upon and inure to the benefit of the Company and the Executive and their respective successors, assigns, personnel, legal representatives, executors, administrators, heirs, distributees, devisees and legatees, as applicable. In the event of the Executive's death following a termination of the Executive's employment, all unpaid amounts otherwise due the Executive (including under Section 5) shall be paid to the Executive's estate.

14. <u>Governing Law</u>. This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Delaware, without reference to the principles of conflicts of law of Delaware or any other jurisdiction, and where applicable, the laws of the United States.

15. <u>Validity</u>. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

16. <u>Notices</u>. Any notice, request, claim, demand, document and other communication hereunder to any party hereto shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by nationally recognized overnight courier, or certified or registered mail, postage prepaid, to the following address (or at any other address as any party hereto shall have specified by notice in writing to the other party hereto):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Company:

Ionic Digital Inc.

2332 Galiano Street, 2nd Floor

Coral Gables, FL 33134

Attention: Elizabeth LaPuma, Chair of the Board

and a copy to (which shall not constitute notice):

White & Case LLP

1221 Avenue of the Americas

New York, New York 10020

Attention: Gregory Pesce

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Executive, at the Executive's most recent address on the payroll records of the Company.

17. <u>Legal Fees</u>. The Company shall reimburse the Executive for reasonable legal fees incurred in connection with the Executive's negotiation and entrance into this Agreement up to a maximum limit of $15,000. Any such legal fees should be submitted as soon as practicable following the Executive's execution of this Agreement.

18. <u>Counterparts</u>. This Agreement may be executed in several counterparts (including by facsimile transmission or electronic image scan (PDF)), each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

19. <u>Entire Agreement</u>. The terms of this Agreement (together with any other agreements and instruments contemplated hereby or referred to herein) is intended by the parties hereto to be the final expression of their agreement with respect to the employment of the Executive by the Company and may not be contradicted by evidence of any prior or contemporaneous agreement (including, without limitation, any term sheet). The parties hereto further intend that this Agreement shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative or other legal proceeding to vary the terms of this Agreement. This Section 19 shall not be used to limit or restrict the Executive's obligations or the rights or remedies, whether express or implied, of the Company under any non-competition, non-solicitation or confidentiality policies of the Company that are applicable to the Executive.

20. <u>Amendments; Waivers</u>. This Agreement may not be modified, amended or terminated except by an instrument in writing signed by the Executive and a duly authorized officer of Company (other than the Executive) that expressly identifies the amended provision of this Agreement. By an instrument in writing similarly executed and similarly identifying the waived compliance, the Executive or a duly authorized officer of the Company may waive compliance by the other party or parties with any provision of this Agreement that such other party was or is obligated to comply with or perform; <u>provided</u>, <u>however</u>, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure to comply or perform. No failure to exercise and no delay in exercising any right, remedy or power hereunder shall preclude any other or further exercise of any other right, remedy or power provided herein or by law or in equity.

21. <u>Construction</u>. This Agreement shall be deemed drafted equally by both of the parties hereto. Its language shall be construed as a whole and according to its fair meaning. Any presumption or principle that the language is to be construed against any party shall not apply. The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary. Also, unless the context clearly indicates to the contrary: (a) the plural includes the singular, and the singular includes the plural; (b) "and" and "or" are each used both conjunctively and disjunctively; (c) "any," "all," "each," or "every" means "any and all," and "each and every"; (d) "includes" and "including" are each "without limitation"; and (e) "herein," "hereof," "hereunder," and other similar compounds of the word "here" refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection.

22. <u>Dispute Resolution</u>. The parties agree that any suit, action or proceeding brought by or against such party in connection with this Agreement shall be brought solely in any state or federal court within the State of Delaware. Each party expressly and irrevocably consents and submits to the jurisdiction and venue of each such court in connection with any such legal proceeding, including to enforce any settlement, order or award, and such party agrees to accept service of process by the other party or any of its agents in connection with any such proceeding.

EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTY IN RESPECT OF ITS RIGHTS OR OBLIGATIONS HEREUNDER.

23. <u>Enforcement</u>. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable, this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision were never a part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

24. <u>Withholding</u>. The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local and foreign withholding and other taxes and charges that the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.

25. <u>Employee Representations</u>. The Executive represents, warrants and covenants that (a) that the Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on his own judgment, (b) the Executive has the full right, authority and capacity to enter into this Agreement and perform the Executive's obligations hereunder, (c) the Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive's duties and obligations to the Company hereunder during or after the Term and (d) the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment or agreement to which the Executive is subject. Prior to execution of this Agreement, the Executive was advised by the Company of the Executive's right to seek independent advice from an attorney of the Executive's own selection regarding this Agreement. The Executive acknowledges that the Executive has entered into this Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Agreement after being given the opportunity to consult with counsel. The Executive further represents that in entering into this Agreement, Executive is not relying on any statements or representations made by any of the Company's directors, officers, employees or agents that are not expressly set forth herein, and that the Executive is relying only upon Executive's own judgment and any advice provided by Executive's attorney.

26. <u>Recovery of Amounts Paid</u>. Executive acknowledges and agrees that Executive shall be subject to the applicable provisions of any clawback policy implemented by the Company from time to time that is generally applicable to similarly situated executives, including without limitation any policy implemented pursuant to Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and/or the rules and regulations of any applicable securities exchange.

[*Signature page follows.*]

The parties have executed this Agreement as of the date first written above.

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| | |
|:---|:---|
| **IONIC DIGITAL INC**. | **IONIC DIGITAL INC**. |
| By: | /s/ Elizabeth LaPuma |
| Name: | Elizabeth LaPuma |
| Title: | Chair of the Board |
| **EXECUTIVE** | **EXECUTIVE** |
| By: | /s/ Andy Stewart |
| Name: | Andy Stewart |

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[Signature Page to Andy Stewart Employment Agreement]

**Exhibit A**

**Omnibus Plan and PSU and RSU Award Agreements**

[*Attached*.]

## Exhibit 10.14

**Exhibit 10.14**

**IONIC DIGITAL INC.<br> OMNIBUS INCENTIVE PLAN**

**PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

Ionic Digital Inc., a Delaware corporation (the "***Company***"), pursuant to its Omnibus Incentive Plan, as amended from time to time (the "***Plan***"), hereby grants to the holder listed below (the "***Participant***"), an award of performance restricted stock units ("***Performance Restricted Stock Units***" or "P***RSUs***"). Each vested Performance Restricted Stock Unit represents the right to receive, in accordance with the Performance Restricted Stock Unit Award Agreement attached hereto as **Exhibit A** (the "***Agreement***"), one Common Share ("***Share***"). This award of Performance Restricted Stock Units is subject to all of the terms and conditions set forth herein and in the Agreement and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Performance Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") and the Agreement.

---

| | |
|:---|:---|
| **Participant:** | Andy Stewart |
| **Grant Date:** | November 17, 2025 |
| **Total Number of PRSUs:** | 560625 |
| **Vesting Criteria:** | The PRSUs shall vest upon a Change in Control, subject in each case to the Participant's continued employment through the date of such Change in Control and achievement of the following performance thresholds:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest upon a Change in Control in which the Company has a Valuation that equals or exceeds $2.5 billion;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest upon a Change in Control in which the Company has a Valuation that equals or exceeds $3.75 billion; and<br>One-third (1/3) of the PRSUs shall vest upon a Change in Control in which the Company has a Valuation that equals or exceeds $5 billion.<br>Notwithstanding the foregoing, the PRSUs shall also be eligible to vest upon achievement of the following performance metrics, subject to Participant's continued employment with the Company through achievement of such metric, and for a period of six (6) months thereafter:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest if the Company's average daily weighted stock price over 60 calendar days creates a Valuation that equals or exceeds $2.5 billion;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest if the Company's average daily weighted stock price over 60 calendar days creates a Valuation that equals or exceeds $3.75 billion; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One-third (1/3) of the PRSUs shall vest if the Company's average daily weighted stock price over 60 calendar days creates a Valuation that equals or exceeds $5 billion<br>For the purposes of these Performance Restricted Stock Units, "**Valuation**" means the fair market value of the Company, determined as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts. The Company Valuation shall be calculated based on the aggregate value of all outstanding equity interests in the Company, including all classes of stock and other securities convertible into or exchangeable for equity interests, and shall be reduced by (i) all outstanding indebtedness and other liabilities of the Company (whether current, long-term, contingent, or otherwise), (ii) all accrued but unpaid expenses, and (iii) any other amounts that, in accordance with generally accepted accounting principles (GAAP), should be deducted to determine the net value distributable to equity holders upon a sale, liquidation, or similar transaction. The determination of Valuation shall be made in good faith by the Board of Directors (or its designee), whose decision shall be final and binding. |
| **Termination:** | If the Participant experiences a termination of employment for any or no reason, all PRSUs that have not become vested on or prior to the date of such termination of service will thereupon be automatically forfeited by the Participant without payment of any consideration therefor. |

---

By his or her signature and the Company's signature below, the Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and this Grant Notice. The Participant has reviewed the Plan, the Agreement and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, the Agreement and this Grant Notice. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee (referred to herein and in the Agreement as the "***Administrator***") upon any questions arising under the Plan, the Agreement or this Grant Notice. In addition, by signing below, the Participant also agrees that the Company, in its sole discretion, may satisfy any withholding obligations in accordance with Section 2.6 of the Agreement and the Plan. **The Participant's acceptance of this Agreement constitutes his or her instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf shares of Common Stock from those Shares issuable to Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy Participant's tax withholding obligation.**

---

| | | | |
|:---|:---|:---|:---|
| **IONIC DIGITAL INC.:** | **IONIC DIGITAL INC.:** | **PARTICIPANT:** | **PARTICIPANT:** |
| By: | /s/ Elizabeth LaPuma | By: | /s/ Andy Stewart |
| Print Name: | Elizabeth LaPuma | Print Name: | Andy Stewart |
| Title: | Chair of the Board |  |  |

---

**EXHIBIT A<br> TO PERFORMANCE RESTRICTED STOCK UNIT AWARD GRANT NOTICE<br>PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT**

Pursuant to the Performance Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") to which this Performance Restricted Stock Unit Award Agreement (this "***Agreement***") is attached, Ionic Digital Inc., a Delaware corporation (the "***Company***"), has granted to the Participant the number of Performance Restricted Stock Units ("***Performance Restricted Stock Units***" or "***PRSUs***") set forth in the Grant Notice under the Company's Omnibus Incentive Plan, as amended from time to time (the "***Plan***"). Each Performance Restricted Stock Unit represents the right to receive one Share upon vesting.

**ARTICLE I.<br>GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Incorporation of Terms of Plan</u>. The PRSUs are subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

**ARTICLE II.<br>GRANT OF PERFORMANCE RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Grant of PRSUs</u>. Pursuant to the Grant Notice and upon the terms and conditions set forth in the Plan and this Agreement, effective as of the Grant Date set forth in the Grant Notice, the Company hereby grants to the Participant an award of PRSUs under the Plan in consideration of the Participant's past or continued service to the Company or any Subsidiaries and for other good and valuable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Unsecured Obligation to PRSUs</u>. Unless and until the PRSUs have vested in the manner set forth in Article 2 hereof, the Participant will have no right to receive Shares under any such PRSUs. Prior to actual payment of any vested PRSUs, such PRSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Vesting Schedule</u>. Subject to Section 2.5 hereof, the PRSUs shall vest and become nonforfeitable with respect to the applicable portion thereof according to the vesting schedule set forth in the Grant Notice (rounding down to the nearest whole Share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Consideration to the Company</u>. In consideration of the grant of the award of PRSUs pursuant hereto, the Participant agrees to render faithful and efficient services to the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Forfeiture, Termination and Cancellation upon Termination of Service</u>. Notwithstanding any contrary provision of this Agreement or the Plan, upon the Participant's termination of service with the Company or its Subsidiaries for any or no reason, all Performance Restricted Stock Units which have not vested prior to or in connection with such termination of service shall thereupon automatically be forfeited, terminated and cancelled as of the applicable termination date without payment of any consideration by the Company, and the Participant, or the Participant's beneficiary or personal representative, as the case may be, shall have no further rights hereunder with respect to such forfeited PRSUs. No portion of the PRSUs which has not become vested as of the date on which the Participant incurs a termination of service with the Company or its Subsidiaries shall thereafter become vested, except as may otherwise be provided by the Administrator or as set forth in a written agreement between the Company and the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Issuance of Shares upon Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as administratively practicable following the vesting of any Performance Restricted Stock Units pursuant to Section 2.3 hereof, but in no event later than 30 days after such vesting date (for the avoidance of doubt, this deadline is intended to comply with the "short term deferral" exemption from Section 409A of the Code), the Company shall deliver to the Participant (or any transferee permitted under Section 3.2 hereof) a number of Shares equal to the number of PRSUs subject to this Award that vest on the applicable vesting 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;(b) As set forth in Section 13.4 of the Plan, the Company shall have the authority and the right to deduct or withhold, or to require the Participant to remit to the Company, an amount sufficient to satisfy all applicable federal, state and local taxes required by law to be withheld with respect to any taxable event arising in connection with the Performance Restricted Stock Units. Additionally, the Company may, in its sole discretion, satisfy any withholding obligations relating to Participant's PRSUs by any of the following means or by a combination of such means: (i) withholding shares of Common Stock otherwise issuable to the Participant upon vesting of the PRSUs, (ii) instructing a broker on the Participant's behalf to sell shares of Common Stock otherwise issuable to the Participant upon vesting of the PRSUs sufficient to generate net proceeds sufficient to satisfy the Company's minimum statutory withholding obligations with respect to the income recognized by the Participant upon the vesting of the PRSUs (based on minimum statutory withholding rates for all tax purposes, including payroll and social security taxes, that are applicable to such income) and the net proceeds of such sale shall be submitted to the Company, (iii) requiring Participant to make a payment in cash to the Company, or (iv) using any other method approved by the Company, and to the extent required by applicable laws or the Plan, approved by the Administrator. Until determined otherwise by the Company, clause (ii) will be the method by which such withholding obligations are satisfied, unless the Participant choses to satisfy his or her withholding obligation in accordance with clause (iii) at any time not less than five (5) business days before any withholding obligation arises. The Company shall not be obligated to deliver any Shares to the Participant or the Participant's legal representative unless and until the Participant or the Participant's legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the taxable income of the Participant resulting from the grant or vesting of the Performance Restricted Stock Units or the issuance of 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;(c) Without prejudice to the provisions of Section 13.4 of the Plan, Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social security and other tax-related items related to Participant's participation in the Plan and the PRSUs and legally applicable to Participant or deemed by the Company, the Board in its discretion to be an appropriate charge to Participant even if legally applicable to the Company, Board (to the extent lawful) (collectively, "***Tax-Related Items***") is and remains Participant's responsibility and may exceed the amount (if any) withheld by the Company, the Board, and Participant hereby covenants to pay any such Tax-Related Items, as and when requested by the Company, the Board, any Affiliate or any tax authority. Participant further acknowledges that (i) neither the Company or the Board make any representation or undertaking regarding the treatment of any Tax-Related Items in connection with any aspect of the PRSUs including, without limitation, the grant or vesting of the PRSUs or the subsequent sale/disposal of the PRSUs; and (ii) the Company, the Board does not commit to and are under no obligation to structure the PRSUs to reduce or eliminate Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the date on which the PRSUs are granted and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company, the Board may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Conditions to Delivery of Shares</u>. The Shares deliverable hereunder may be either previously authorized but unissued Shares, treasury Shares or issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall not be required to issue Shares deliverable hereunder prior to fulfillment of the conditions set forth in Section 13.8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Rights as Shareholder</u>. The holder of the PRSUs shall not be, nor have any of the rights or privileges of, a shareholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the PRSUs and any Shares underlying the PRSUs and deliverable hereunder unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall 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 Sections 4.3 or 10.1 of the Plan.

**ARTICLE III.**<br>**OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Administration</u>. The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the PRSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Transferability</u>. The PRSUs shall be subject to the restrictions on transferability set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Tax Consultation</u>. The Participant understands that the Participant may suffer adverse tax consequences in connection with the PRSUs granted pursuant to this Agreement (and the Shares issuable with respect thereto). The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the PRSUs and the issuance of Shares with respect thereto and that the Participant is not relying on the Company for any tax advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Binding Agreement</u>. Subject to the limitation on the transferability of the PRSUs contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Adjustments Upon Specified Events</u>. The Administrator may accelerate the vesting of the PRSUs in such circumstances as it, in its sole discretion, may determine. The Participant acknowledges that the PRSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and Sections 13 and 14 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant's last address reflected on the Company's records. By a notice given pursuant to this Section 3.6, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Participant's Representations</u>. If the Shares issuable hereunder have not been registered under the Securities Act or any applicable state laws on an effective registration statement at the time of such issuance, the Participant shall, if required by the Company, concurrently with such issuance, make such written representations as are deemed necessary or appropriate by the Company or its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Governing Law</u>. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Conformity to Securities Laws</u>. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any other Applicable Law. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the PRSUs are granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board; *provided, however,* that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the PRSUs in any material way without the prior written consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in Section 3.2 hereof, this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the Plan, the PRSUs and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement does not confer upon the Participant any right to be retained in the employ or service of the Company or any Affiliate and shall not interfere with the ability of the Participant's employer from time to time (the "<u>Employer</u>") to terminate the Participant's service at any time, with or without cause, subject to 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;(b) The Plan is established voluntarily by the Company. It is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement. The grant of the PRSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Awards, or benefits in lieu of Awards, even if Awards have been granted repeatedly in the past. All decisions with respect to future grants of Awards, if any, will be at the sole discretion of the Company. The PRSUs are extraordinary items that do not constitute compensation of any kind for service of any kind rendered to the Company or Affiliate, and which are outside the scope of your employment contract, if any and are not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service options, pension or retirement benefits or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof, provided that the PRSUs shall be subject to any accelerated vesting provisions in any written agreement between the Participant and the Company or a Company plan pursuant to which the Participant participates, in each case, in accordance with the terms therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>Section 409A</u>. This Award is not intended to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, "***Section 409A***"). However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that this Award (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate for this Award either to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Participant shall have only the rights of a general unsecured creditor of the Company and its Subsidiaries with respect to amounts credited and benefits payable, if any, with respect to the PRSUs, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to PRSUs, as and when payable hereunder.

\* \* \* \* \*

## Exhibit 10.15

**Exhibit 10.15**

**IONIC DIGITAL INC.<br> OMNIBUS INCENTIVE PLAN**

**RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

Ionic Digital Inc., a Delaware corporation (the "***Company***"), pursuant to its Omnibus Incentive Plan, as amended from time to time (the "***Plan***"), hereby grants to the holder listed below (the "***Participant***"), an award of restricted stock units ("***Restricted Stock Units***" or "***RSUs***"). Each vested Restricted Stock Unit represents the right to receive, in accordance with the Restricted Stock Unit Award Agreement attached hereto as **Exhibit A** (the "***Agreement***"), one Common Share ("***Share***"). This award of Restricted Stock Units is subject to all of the terms and conditions set forth herein and in the Agreement and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") and the Agreement.

---

| | |
|:---|:---|
| **Participant:** | Andy Stewart |
| **Grant Date:** | November 17, 2025 |
| **Total Number of RSUs:** | 186875 |
| **Vesting Schedule:** | The RSUs will vest over a five (5) year period in equal annual installments, with one-fifth (1/5<sup>th</sup>) of the RSUs vesting on each of the first five (5) anniversaries of the Grant Date, subject in each case to the Participant's continuous employment with the Company through each such vesting date. Notwithstanding the foregoing, in the event of a Change in Control that occurs within the first twelve (12) months of your employment with the Company, (i) if the Valuation of the Company is less than $2.5 billion in connection with such Change in Control, then all outstanding RSUs granted pursuant to this Agreement will vest immediately upon such a Change in Control; and (ii) if the Valuation of the Company is more than $2.5 billion in connection with such Change in Control, then one-half (1/2) of the RSUs granted pursuant to this Agreement will vest immediately upon such Change in Control, in each case, subject to Participant's continuous employment through the date of such Change in Control. For the avoidance of doubt, if the Participant experiences a termination without Cause within the three-month period prior to the consummation of a Change in Control, he shall be entitled to accelerated vesting as if he was employed through the date of such Change in Control.<br>For the purposes of these Restricted Stock Units, "**Valuation**" means the fair market value of the Company, determined as of the applicable valuation date, without giving effect to any minority, illiquidity, or similar discounts. The Company Valuation shall be calculated based on the aggregate value of all outstanding equity interests in the Company, including all classes of stock and other securities convertible into or exchangeable for equity interests, and shall be reduced by (i) all outstanding indebtedness and other liabilities of the Company (whether current, long-term, contingent, or otherwise), (ii) all accrued but unpaid expenses, and (iii) any other amounts that, in accordance with generally accepted accounting principles (GAAP), should be deducted to determine the net value distributable to equity holders upon a sale, liquidation, or similar transaction. The determination of Valuation shall be made in good faith by the Board of Directors (or its designee), whose decision shall be final and binding. |

---

---

| | |
|:---|:---|
| **Termination:** | If the Participant experiences a termination of employment for any or no reason, all RSUs that have not become vested on or prior to the date of such termination of service will thereupon be automatically forfeited by the Participant without payment of any consideration therefor. |

---

By his or her signature and the Company's signature below, the Participant agrees to be bound by the terms and conditions of the Plan, the Agreement and this Grant Notice. The Participant has reviewed the Plan, the Agreement and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, the Agreement and this Grant Notice. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee (referred to herein and in the Agreement as the "***Administrator***") upon any questions arising under the Plan, the Agreement or this Grant Notice. In addition, by signing below, the Participant also agrees that the Company, in its sole discretion, may satisfy any withholding obligations in accordance with Section 2.6 of the Agreement and the Plan. **The Participant's acceptance of this Agreement constitutes his or her instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to sell on Participant's behalf shares of Common Stock from those Shares issuable to Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy Participant's tax withholding obligation.**

---

| | | | |
|:---|:---|:---|:---|
| **IONIC DIGITAL INC.:** | **IONIC DIGITAL INC.:** | **PARTICIPANT:** | **PARTICIPANT:** |
| **By:** | /s/ Elizabeth LaPuma | By: | /s/ Andy Stewart |
| **Print Name:** | Elizabeth LaPuma | Print Name: | Andy Stewart |
| **Title:** | Chair of the Board |  |  |

---

**Exhibit A<br>TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE**

**RESTRICTED STOCK UNIT AWARD AGREEMENT**

Pursuant to the Restricted Stock Unit Award Grant Notice (the "***Grant Notice***") to which this Restricted Stock Unit Award Agreement (this "***Agreement***") is attached, Ionic Digital Inc., a Delaware corporation (the "***Company***"), has granted to the Participant the number of restricted stock units ("***Restricted Stock Units***" or "***RSUs***") set forth in the Grant Notice under the Company's Omnibus Incentive Plan, as amended from time to time (the "***Plan***"). Each Restricted Stock Unit represents the right to receive one Share upon vesting.

**Article I.<br>GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Defined Terms</u>. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Incorporation of Terms of Plan</u>. The RSUs are subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

**Article II.<br>GRANT OF RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Grant of RSUs</u>. Pursuant to the Grant Notice and upon the terms and conditions set forth in the Plan and this Agreement, effective as of the Grant Date set forth in the Grant Notice, the Company hereby grants to the Participant an award of RSUs under the Plan in consideration of the Participant's past or continued service to the Company or any Subsidiaries and for other good and valuable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Unsecured Obligation to RSUs</u>. Unless and until the RSUs have vested in the manner set forth in Article 2 hereof, the Participant will have no right to receive Shares under any such RSUs. Prior to actual payment of any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Vesting Schedule</u>. Subject to Section 2.5 hereof, the RSUs shall vest and become nonforfeitable with respect to the applicable portion thereof according to the vesting schedule set forth in the Grant Notice (rounding down to the nearest whole Share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Consideration to the Company</u>. In consideration of the grant of the award of RSUs pursuant hereto, the Participant agrees to render faithful and efficient services to the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Forfeiture, Termination and Cancellation upon Termination of Service</u>. Notwithstanding any contrary provision of this Agreement or the Plan, upon the Participant's termination of service with the Company or its Subsidiaries for any or no reason, all Restricted Stock Units which have not vested prior to or in connection with such termination of service shall thereupon automatically be forfeited, terminated and cancelled as of the applicable termination date without payment of any consideration by the Company, and the Participant, or the Participant's beneficiary or personal representative, as the case may be, shall have no further rights hereunder with respect to such forfeited RSUs. No portion of the RSUs which has not become vested as of the date on which the Participant incurs a termination of service with the Company or its Subsidiaries shall thereafter become vested, except as may otherwise be provided by the Administrator or as set forth in a written agreement between the Company and the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Issuance of Shares upon Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as administratively practicable following the vesting of any Restricted Stock Units pursuant to Section 2.3 hereof, but in no event later than 30 days after such vesting date (for the avoidance of doubt, this deadline is intended to comply with the "short term deferral" exemption from Section 409A of the Code), the Company shall deliver to the Participant (or any transferee permitted under Section 3.2 hereof) a number of Shares equal to the number of RSUs subject to this Award that vest on the applicable vesting 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;(b) As set forth in Section 13.4 of the Plan, the Company shall have the authority and the right to deduct or withhold, or to require the Participant to remit to the Company, an amount sufficient to satisfy all applicable federal, state and local taxes required by law to be withheld with respect to any taxable event arising in connection with the Restricted Stock Units. Additionally, the Company may, in its sole discretion, satisfy any withholding obligations relating to Participant's RSUs by any of the following means or by a combination of such means: (i) withholding shares of Common Stock otherwise issuable to the Participant upon vesting of the RSUs, (ii) instructing a broker on the Participant's behalf to sell shares of Common Stock otherwise issuable to the Participant upon vesting of the RSUs sufficient to generate net proceeds sufficient to satisfy the Company's minimum statutory withholding obligations with respect to the income recognized by the Participant upon the vesting of the RSUs (based on minimum statutory withholding rates for all tax purposes, including payroll and social security taxes, that are applicable to such income) and the net proceeds of such sale shall be submitted to the Company, (iii) requiring Participant to make a payment in cash to the Company, or (iv) using any other method approved by the Company, and to the extent required by applicable laws or the Plan, approved by the Administrator. Until determined otherwise by the Company, clause (ii) will be the method by which such withholding obligations are satisfied, unless the Participant choses to satisfy his or her withholding obligation in accordance with clause (iii) at any time not less than five (5) business days before any withholding obligation arises. The Company shall not be obligated to deliver any Shares to the Participant or the Participant's legal representative unless and until the Participant or the Participant's legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the taxable income of the Participant resulting from the grant or vesting of the Restricted Stock Units or the issuance of 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;(c) Without prejudice to the provisions of Section 13.4 of the Plan, Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social security and other tax-related items related to Participant's participation in the Plan and the RSUs and legally applicable to Participant or deemed by the Company, the Board in its discretion to be an appropriate charge to Participant even if legally applicable to the Company, Board (to the extent lawful) (collectively, "***Tax-Related Items***") is and remains Participant's responsibility and may exceed the amount (if any) withheld by the Company, the Board, and Participant hereby covenants to pay any such Tax-Related Items, as and when requested by the Company, the Board, any Affiliate or any tax authority. Participant further acknowledges that (i) neither the Company or the Board make any representation or undertaking regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs including, without limitation, the grant or vesting of the RSUs or the subsequent sale/disposal of the RSUs; and (ii) the Company, the Board does not commit to and are under no obligation to structure the RSUs to reduce or eliminate Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the date on which the RSUs are granted and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company, the Board may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Conditions to Delivery of Shares</u>. The Shares deliverable hereunder may be either previously authorized but unissued Shares, treasury Shares or issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall not be required to issue Shares deliverable hereunder prior to fulfillment of the conditions set forth in Section 13.8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Rights as Shareholder</u>. The holder of the RSUs shall not be, nor have any of the rights or privileges of, a shareholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the RSUs and any Shares underlying the RSUs and deliverable hereunder unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall 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 Sections 4.3 or 10.1 of the Plan.

**Article III.<br>OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Administration</u>. The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Transferability</u>. The RSUs shall be subject to the restrictions on transferability set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Tax Consultation</u>. The Participant understands that the Participant may suffer adverse tax consequences in connection with the RSUs granted pursuant to this Agreement (and the Shares issuable with respect thereto). The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the RSUs and the issuance of Shares with respect thereto and that the Participant is not relying on the Company for any tax advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Binding Agreement</u>. Subject to the limitation on the transferability of the RSUs contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Adjustments Upon Specified Events</u>. The Administrator may accelerate the vesting of the RSUs in such circumstances as it, in its sole discretion, may determine. The Participant acknowledges that the RSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and Sections 13 and 14 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company's principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant's last address reflected on the Company's records. By a notice given pursuant to this Section 3.6, either party may hereafter designate a different address for notices to be given to that party. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Participant's Representations</u>. If the Shares issuable hereunder have not been registered under the Securities Act or any applicable state laws on an effective registration statement at the time of such issuance, the Participant shall, if required by the Company, concurrently with such issuance, make such written representations as are deemed necessary or appropriate by the Company or its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Governing Law</u>. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Conformity to Securities Laws</u>. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any other Applicable Law. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the RSUs are granted, only in such a manner as to conform to Applicable Law. To the extent permitted by Applicable Law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Amendment, Suspension and Termination</u>. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board; *provided, however,* that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the RSUs in any material way without the prior written consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in Section 3.2 hereof, this Agreement shall be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the Plan, the RSUs and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement does not confer upon the Participant any right to be retained in the employ or service of the Company or any Affiliate and shall not interfere with the ability of the Participant's employer from time to time (the "<u>Employer</u>") to terminate the Participant's service at any time, with or without cause, subject to 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;(b) The Plan is established voluntarily by the Company. It is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement. The grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Awards, or benefits in lieu of Awards, even if Awards have been granted repeatedly in the past. All decisions with respect to future grants of Awards, if any, will be at the sole discretion of the Company. The RSUs are extraordinary items that do not constitute compensation of any kind for service of any kind rendered to the Company or Affiliate, and which are outside the scope of your employment contract, if any and are not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service options, pension or retirement benefits or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Entire Agreement</u>. The Plan, the Grant Notice and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof, provided that the RSUs shall be subject to any accelerated vesting provisions in any written agreement between the Participant and the Company or a Company plan pursuant to which the Participant participates, in each case, in accordance with the terms therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>Section 409A</u>. This Award is not intended to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, "***Section 409A***"). However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that this Award (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate for this Award either to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Participant shall have only the rights of a general unsecured creditor of the Company and its Subsidiaries with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to RSUs, as and when payable hereunder.

\* \* \* \* \*

## Exhibit 10.16

**Exhibit 10.16**

Private & Confidential<br> Execution Version

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.**

**NET LEASE AGREEMENT**

(Buildings A, B, C, D and O&M)

This NET LEASE AGREEMENT ("**<u>Lease</u>**") is entered into as of October 14, 2025 ("**<u>Effective Date</u>**") between IONIC DIGITAL CEDARVALE LLC, a Delaware limited liability company ("**<u>Landlord</u>**") and NSCALE WARD COUNTY LLC, a Delaware limited liability company ("**<u>Tenant</u>**") (both of whom may be referred to as a "**<u>party</u>**" and collectively, the "**<u>parties</u>**"), as amended by that Amendment No. 1, dated February 27, 2026, between the parties.

In consideration of the rents and provisions herein stipulated to be paid and performed, Landlord and Tenant hereby covenant and agree as follows:

**ARTICLE 1. <br> PREMISES AND TERM**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Premises Description</u>. Landlord leases to Tenant, and Tenant leases from Landlord, for the Term and subject to the Permitted Encumbrances the land described on **<u>Exhibit A</u>** attached hereto (the "**<u>Land</u>**"), together with the buildings and other improvements now or hereafter thereon (collectively, the "**<u>Improvements</u>**") and all easements and other rights appurtenant thereto. The Land, the Improvements and the rights appurtenant thereto are collectively called the "**<u>Premises</u>**." The state in which the Premises are located is referred to herein as the "**<u>State</u>**." The Premises have an address of 3013 Ranch Road 516, Barstow, TX 79719.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Landlord's Work; Delivery Requirements</u>. Landlord at its sole cost and expense will complete only the work ("**<u>Landlord's Work</u>**") and deliver the Premises in accordance with **<u>Exhibit C</u>** (Work Letter) attached hereto. Landlord and Tenant will agree within sixty (60) days of the Effective Date, on any additional security requirements to be incorporated within the Work Letter and the Landlord's costs therefore shall be paid for by Tenant (including a reasonable management fee); <u>provided</u>, <u>however</u>, the failure to agree on such requirements or to complete such requirements by the Commencement Date shall not result in any default or violation of this Lease. It is estimated the Landlord's Work will be completed within sixty (60) days of the Effective Date and Landlord shall provide notice thereof to Tenant. If the Landlord's Work is not completed by the Commencement Date, then the parties will use commercially reasonable efforts to coordinate the performance of work being performed individually or jointly by the parties during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Use</u>. Tenant may use the Premises for a Permitted Use, subject to applicable law, and not for any other purpose. As used herein, the term "**<u>Permitted Use</u>**" means as a data center and network operations center and for any and all uses ancillary or incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Initial Term</u>. This Lease shall be effective as of the Effective Date. The initial term (the "**<u>Initial Term</u>**") of this Lease shall commence upon the later of (i) forty-five (45) days after the Effective Date and (ii) Landlord's receipt of the Option Payment (the "**<u>Commencement Date</u>**") and end on the date that is ten (10) Lease Years after the Rent Commencement Date. "**<u>Rent Commencement Date</u>**" shall mean August 1, 2026. "**<u>Lease Year</u>**" shall mean (i) for the first Lease Year, such period commencing on August 1, 2026 and ending on January 31, 2027 (which for the avoidance of doubt is eighteen (18) months) and (ii) for each successive Lease Year, the successive period of twelve (12) calendar months, e.g., commencing February 1 and ending January 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Renewal Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall have the option to extend the Term of this Lease one time for a period of ten (10) years at Fair Market Rent as determined in <u>Section 1.5(b)</u> below prior to the commencement of the Renewal Term. The extension term is referred to as a "**<u>Renewal Term</u>**." The Renewal Term may be exercised by Tenant delivering written notice to Landlord of such exercise no later than eighteen (18) months before the expiration of the Initial Term and no earlier than twenty-four (24) months before the expiration of the Initial Term. The Renewal Term shall be upon all of the terms and conditions contained in this Lease. As used herein "**<u>Term</u>**" shall mean, collectively, the Initial Term and, if properly exercised, the Renewal Term. Notwithstanding anything contained herein to the contrary, Tenant shall not have the right to extend the Term if as of the final day of the Initial Term, an Event of Default exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Tenant delivers a notice of renewal in accordance with <u>Section 1.5(a)</u> then, no later than eighteen (18) months before the expiration of the Initial Term, Landlord will send Tenant its determination of Fair Market Rent. If Tenant disagrees with Landlord's Fair Market Rent determination, Tenant will send Landlord written notice within ten (10) days after receipt of the same and Landlord and Tenant will work towards an agreement for thirty (30) days, failing which, within five (5) days of the expiration of the thirty (30) day period, Landlord and Tenant will each select an appraiser with at least ten (10) years' data center experience in the market in which the Premises are located. The two (2) appraisers will exchange their Fair Market Rent determinations within ten (10) days after selection, and if the lower appraisal is not less than ninety percent (90%) of the higher appraisal, the average of the two (2) appraisals will be deemed the Fair Market Rent. If the lower appraisal is less than ninety percent (90%) of the higher appraisal, the appraisers will select a similarly qualified 3rd appraiser and the three (3) appraisers will exchange Fair Market Rent determinations within twenty (20) days thereafter. If the lowest appraisal is not less than 90% of the highest appraisal, the average of the three (3) appraisals will be the Fair Market Rent. If the lowest appraisal is less than ninety percent (90%) of the highest appraisal, the Fair Market Rent will be the appraisal amount that is closest to the 3rd appraisal. If Fair Market Rent has not been determined thirty (30) days prior to the date that is eighteen (18) months before the expiration of the Initial Term, Tenant's deadline to renew will extend to the date that is thirty (30) days after the Fair Market Rent determination. Each party will pay the cost of its own appraiser, and the parties will split the cost of the 3rd appraiser.

&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) As used herein "**<u>Fair Market Rent</u>**" means the then-prevailing market rate, but in no event less than the then current Base Rent under this Lease, for leases for comparable space and power capacity in the vicinity of the Premises and taking into account the length of the term, and the credit of Tenant, and all other relevant factors and will reflect all monetary and non-monetary concessions being granted to tenants for comparable transactions, including brokerage commissions, improvements performed by landlords and tenant improvement allowances, and rent concessions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>Net Lease; Non-Terminability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Lease is an absolute net lease. The Rent and other sums and charges provided herein shall be paid without notice, demand, setoff, counterclaim, recoupment, abatement, suspension, deduction, or defense, except as otherwise expressly permitted by this Lease. All expenses of operating the Premises shall be paid by Tenant, except as otherwise specifically set forth herein. All obligations to be performed by Tenant under this Lease shall be performed at Tenant's sole expense and without reimbursement or contribution by Landlord, unless otherwise expressly provided in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise expressly provided in this Lease: (i) the obligations of Tenant under this Lease shall be separate and independent covenants, (ii) Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events, and (iii) this Lease shall not be terminable by Tenant. No amounts due from Landlord to Tenant shall be deducted from or offset against any amounts payable by Tenant to Landlord hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as specifically provided under <u>Section 7.1</u> (Condemnation) below, Tenant hereby waives any statute, and any other right at law or in equity to terminate this Lease on its own behalf and, to the extent permitted under applicable law, on behalf of any proposed subtenant, assignee or other transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Lease is a true lease and is not a financing lease, capital lease, mortgage, equitable mortgage, deed of trust, trust agreement, security agreement or other financing or trust arrangement, and the economic realities of this Lease are those of a true lease. Each party shall reflect the transaction represented hereby in all applicable books, records, and reports (including income tax filings) in a manner consistent with "true lease" treatment rather than "financing" treatment.

&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) Landlord and Tenant acknowledge and agree that they have executed and delivered this Lease with the understanding that (i) the Premises is the property of Landlord, (ii) Tenant has only the right to the possession and use of the Premises upon the terms and conditions of this Lease, (iii) the Rent is the fair market rent for the use of the Premises and was agreed to by Landlord and Tenant on that basis, and (iv) the execution and delivery of, and the performance by Tenant of its obligations under, this Lease does not constitute a transfer of all or any part of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 <u>As Is</u>. The Premises are being leased "as is," and "where is," with all faults and with tenant accepting all defects, if any, in and to the Premises. Landlord makes, and has made, no warranty of any kind, express or implied, with respect to the Premises (without limitation, Landlord makes no warranty as to the habitability, fitness or suitability of the Premises for a particular use or purpose). Tenant represents to Landlord that Tenant has examined the Premises and Permitted Encumbrances prior to the execution and delivery of this Lease and has found the same to be satisfactory for the purposes contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 <u>Quiet Enjoyment</u>. Throughout the Term of this Lease, and provided that no Event of Default exists, Landlord shall do no act to disturb Tenant's quiet possession and enjoyment of the Premises, and Landlord shall defend the same against any party claiming by, through or under Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 <u>Right of First Refusal</u>. Landlord hereby grants to Tenant the right of first refusal in connection with the lease of all or any portion of additional power capacity of the Substation that is or becomes available for supply to the Premises or adjoining parcels owned by Landlord or its affiliates, including any present or future buildings on the Premises ("**<u>First Refusal Capacity</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Offer and Acceptance</u>. In the event that the Landlord wishes to accept an offer from a bona fide third party in relation to the First Refusal Capacity then the Landlord will deliver written notice to Tenant describing (i) the First Offer Capacity that Landlord proposes to lease out (ii) the material financial and other terms of the offer received by such bona fide third party (including without limitation the base rent) and (iii) the identity of such third party making such offer ("**<u>First Offer Notice</u>**"). The First Offer Notice shall constitute an offer, subject to contract, by the Landlord to the Tenant to lease the First Refusal Capacity to the Tenant on the terms set out in the First Offer Notice. Tenant may exercise its right to lease the First Refusal Capacity by delivering written notice to Landlord within thirty (30) days after receipt of the applicable First Offer Notice. The parties will, within thirty (30) days after Tenant's written notice to Landlord, use best efforts to execute a new lease for such First Refusal Capacity or an amendment to this Lease that incorporates such First Offer Capacity in accordance with the terms set out in the First Offer 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;(b) <u>Rejection and Re-offer</u>. If Tenant does not notify Landlord within thirty (30) days after receipt of the First Offer Notice of Tenant's election to lease the First Offer Capacity (including if Tenant elects to lease only a portion of such First Offer Capacity), then Landlord will be free to lease to any third party any First Offer Capacity. If Landlord does not enter into a lease with a third party for such First Offer Capacity within the next twelve (12) months, then Landlord must again offer the First Offer Capacity to Tenant in accordance with this <u>Section 1.9</u> before leasing it to a third party; provided the Tenant's 30 day period to exercise its right to lease shall be reduced to thirty (30) days for any such re-offered First Offer Capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>ROFR Exceptions</u>. Notwithstanding anything contained herein to the contrary, Tenant will not be afforded the rights specified in this <u>Section 1.9</u> in the case of any of the following: (i) the additional power capacity is used for the business of Landlord or its affiliates, (ii) Tenant has assigned this Lease to any party other than an affiliate of the original Tenant executing this Lease, or (iii) an Event of Default exists and is continuing.

**ARTICLE 2. <br> RENT; SECURITY DEPOSIT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Base Rent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Rent Commencement Date, no Base Rent shall be payable to Landlord.

&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) During the first five (5) Lease Years of the Initial Term, Tenant shall pay to Landlord as fixed monthly rent for the Premises an amount equal to $[\*\*\*] per kW of the Required Power Capacity (i.e., an aggregate of $15,210,000 per month), save in relation to the applicable months in: (i) in August and September 2026, the Tenant shall pay an amount equal to $[\*\*\*] per kW for 50MW in aggregate per month (i.e. $3,250,000 per month); (ii) in October and November 2026 the Tenant shall pay an amount equal to $[\*\*\*] per kW for 100MW in aggregate per month (i.e. $6,500,000 per month); and (iii) in December 2026 and January 2027 the Tenant shall pay an amount equal to $[\*\*\*] per kW for 150MW in aggregate per month (i.e. $9,750,000 per month).

&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) During the first five (5) Lease Years of the Initial Term, commencing at such time that Landlord makes available to Tenant the Expansion Power Capacity, Tenant shall pay to Landlord as additional fixed monthly rent for the Premises an amount equal to $[\*\*\*] per kW of Expansion Power Capacity (i.e. $5,785,000 per month). If such Expansion Power Capacity is made available on a date other than the first day of a calendar month, the terms of <u>Section 2.2</u> shall apply.

&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) During each successive Lease Year following the fifth Lease Year of the Initial Term, Tenant shall pay to Landlord as fixed monthly rent for the Premises an amount equal to 103% multiplied by the fixed monthly rent payable in the immediately preceding Lease Year, as shown on **<u>Exhibit D</u>** attached hereto.

&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) During the first five (5) Lease Years of the Renewal Term, Tenant shall pay to Landlord as fixed monthly rent for the Premises an amount equal to Fair Market Rent as determined pursuant to <u>Section 1.5</u> above. During each successive Lease Year following the fifth Lease Year of the Renewal Term, Tenant shall pay to Landlord as fixed monthly rent for the Premises an amount equal to 103% multiplied by the fixed monthly rent payable in the immediately preceding Lease Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All such sums are herein referred to as "**<u>Base Rent</u>**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Pro Rata Portions of a Month</u>. Payments of Base Rent and Additional Rent for any fractional calendar month will be prorated. If the Commencement Date or the first day of the Renewal Term occurs on a date other than the first day of a calendar month, the Base Rent for such month shall be prorated on the basis of the actual days in such month. If the Commencement Date is a date other than the first day of a calendar month, Tenant shall pay Landlord on the Commencement Date the Base Rent for such partial calendar month together with the Base Rent for the first full calendar month of the Initial Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Rent Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Rent</u>. Base Rent shall be payable in advance on or before the first (1st) day of each calendar month of the Term. Rent and other sums to be paid by Tenant shall be payable in lawful money of the United States of America. Base Rent and Additional Rent shall be paid by Tenant to Landlord at the address of Landlord set forth in <u>Section 13.7</u> below or at such other address as may be designated by Landlord from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Lease, within 30 calendar days following the Effective Date, Tenant shall pay to Landlord an amount equal to $45,630,000 (the "**<u>Option Payment</u>**"), <u>provided</u> that such Option Payment shall offset Tenant's obligation to pay Base Rent commencing in February 2027, in equal monthly amounts during the remainder of the first Lease Year (but shall not be offset against any Base Rent before February 2027 including for a partial calendar month). The Option Payment shall be for Landlord's own account and deemed earned in full as of the Effective Date and in no event shall it be returned to Tenant. For the avoidance of doubt, Landlord shall not be required to place the Option Payment in any escrow or similar account, and any proceeds thereof or interest accrued thereon shall be for the account of, payable to and deemed paid to Landlord. In the event that this Lease is terminated due to an Event of Default prior to or during the first Lease Year, Landlord shall have the unfettered right (in addition to all other rights and remedies available to Landlord) to retain the entire Option Payment, as liquidated damages for removing the Premises from the market, it being expressly understood and agreed that Landlord's damages would be impossible to ascertain and that the Option Payment constitutes a fair and reasonable amount of compensation in such event. If Tenant fails to deliver the Option Payment within forty-five (45) days of the Effective Date, then it shall be an immediate Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Additional Rent</u>. All amounts payable by Tenant to Landlord under the terms of this Lease other than the Base Rent are collectively called "**<u>Additional Rent</u>**." Base Rent and Additional Rent are sometimes referred to collectively as the "**<u>Rent</u>**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Late Payments</u>. If any installment of Rent is not paid within ten (10) days of the date on which such Rent becomes due, Tenant shall pay Landlord interest on such past due payment at the Default Rate accruing from the due date of such payment until the same is paid in full. If any installment of Rent is not paid for a period of fifteen (15) days after notice of nonpayment thereof is delivered by Landlord to Tenant, Tenant shall pay Landlord a late charge in an amount equal to the lesser of five percent (5%) of the unpaid installment of Rent or the highest late charge permitted by applicable law. The "**<u>Default Rate</u>**" shall mean the sum of (i) the prime rate of interest from time to time as published in the *Wall Street Journal*, plus (ii) five percent (5%) per annum, provided that in no event shall such rate exceed the maximum rate of interest permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Reimbursement of Expenses</u>. Tenant shall reimburse Landlord, within ten (10) days after written demand by Landlord, for any reasonable out-of-pocket expenses (including reasonable attorney's fees) paid or incurred by Landlord after the date of this Lease as the result of any request by Tenant for any action, approval or consent by Landlord plus interest thereon if not paid within such ten (10) day period at the Default Rate on the unreimbursed portion of the amount so paid from the date of payment by Landlord until Landlord shall have been reimbursed in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Credit</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within five (5) days of the Effective Date, Tenant shall provide to Landlord an irrevocable investment grade guaranty from Tenant's OEM GPU supplier approved by Landlord ("**<u>OEM</u>**") in the form of guarantee issued by the relevant investment grade OEM in the aggregate face amount equal to the Rent payable in the first five (5) Lease Years, which shall remain in effect from the Effective Date until the commencement of the sixth Lease Year and be in a form approved by Landlord, in each case, in its sole discretion. If Tenant fails to deliver the guaranty from OEM, then it shall be an immediate Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On or prior to the Effective Date, Tenant shall provide to Landlord an irrevocable guaranty from Tenant's Parent guarantying all Rent payable from and after the commencement of the sixth Lease Year, which shall remain in effect for the Term of this Lease and be in a form approved by Landlord. "**<u>Tenant's Parent</u>**" shall mean NSCALE GLOBAL HOLDINGS LIMITED, a company incorporated in England and Wales with company registration number 15749408 and having its registered address at C/O Zedra Booths Hall, Booths Park 3, Chelford Road, Knutsford, Cheshire, United Kingdom, WA16 8GS. "**<u>Lease Guarantor</u>**" shall mean, individually and/or collectively, as the context may require, any party that provides a guaranty to Landlord for any obligations of Tenant under this Lease, including, without limitation, OEM and Tenant's Parent.

**ARTICLE 3.<br> UTILITIES; SUBSTATION; TAXES; LEGAL COMPLIANCE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Utilities</u>. Tenant shall pay or cause to be paid when due all charges for all public or private utility services to or for the Premises during the Term, including, without limitation, all charges for heat, light, electricity, water, gas, telephone service, cable service, internet service, garbage collection, sanitary sewer service and storm sewer or other drainage service. Any requests by Tenant for increased capacity under any tariff or electric service agreement which is beyond the Required Power Capacity must be approved by Landlord in writing in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Substation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Power Capacity</u>. Landlord will only provide the electrical power infrastructure for the Premises as expressly set out in this <u>Section 3.2</u>. Landlord will furnish step-down transformation of utility power sufficient to accommodate (i) by the Commencement Date, 234 MWs of electrical power (the "**<u>Required Power Capacity</u>**") and (ii) upon availability from the applicable utility, an additional 89 MWs of electrical power (the "**<u>Expansion Power Capacity</u>**"), in each case to the Premises from the Substation for Tenant's continuous use. As of the Effective Date, the parties agree that Landlord has satisfied its obligation to obtain sufficient electrical capacity to accommodate the delivery of the Required Power Capacity to the Premises. Landlord does not have any further obligation to provide electrical infrastructure or power capacity or supply except as expressly set forth in this <u>Section 3.2</u>. Tenant acknowledges that Landlord shall not be liable for the failure, interruption, suspension, or disruption of utility services or power capacity to the Premises or Substation and none of the same shall be deemed an event of default by Landlord, or an eviction or disturbance of Tenant's use and possession of the Premises or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Maintenance</u>. Landlord will (or shall cause a third-party manager or the utility or energy service provider to) ensure the Substation is in good working condition and repair and properly insured at all times, and cause the Substation to be operated, maintained and repaired in conformance with good utility business practice and applicable law and the costs and expenses for the foregoing will be charged to Tenant as Additional Rent. The parties acknowledge that as of the Effective Date, the Substation serves only the Premises, and that in the future the Substation may have increased power capacity and serve additional adjoining parcels, in such event the parties shall cooperate in good faith to amend this Lease, so the costs and expenses of the Substation are fairly allocated. Landlord will grant Tenant such access to the Substation as may be required to enforce Tenant's rights under this Lease or as otherwise reasonably required in coordination with Landlord to ensure the delivery of power supply to the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**<u>Substation</u>**" means the high voltage transformer yard and other related improvements now or hereafter owned by Landlord and located on the Substation Land. The Substation includes the electrical equipment and infrastructure between the utility or energy service provider's transmission lines and switching station and Landlord's 34.5kV bus which Tenant will terminate its cables on. The Substation does not include any equipment, infrastructure or scope of work that is the responsibility of the utility or energy service provider or any affiliate thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**<u>Substation Land</u>**" means that portion of the Land, which may be updated from time to time, on which the Substation is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Taxes and Impositions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing on the Commencement Date and continuing during the Term, Tenant shall pay all Impositions to the extent properly allocable to the Term. As used herein, the term "**<u>Impositions</u>**" shall mean the following: (i) all taxes or assessments of every kind and nature assessed against or imposed upon the Premises and the Substation Land which are measured by the value of real property, (ii) all taxes or assessments of every kind and nature assessed against or imposed upon the leasehold estate of Tenant under this Lease, (iii) all taxes or assessments of every kind and nature assessed against or imposed upon the gross amount of the Rent, including without limitation, any sales tax, use tax, gross receipts tax, occupancy tax or excise tax levied by any governmental body on or with respect to the Rent, (iv) all fees, contributions, charges and other amounts payable pursuant to any Permitted Encumbrance, (v) all permit fees, inspection fees, license fees or similar charges attributable to the Tenant's business operations at the Premises, (vi) all excise tax imposed on Landlord as a result of Landlord's ownership of the Premises or receipt of Rent and (vii) all other public charges and/or taxes whether of a like or different nature, even if unforeseen or extraordinary, imposed upon or assessed against the Premises or the Tenant's business operations therein. Notwithstanding the foregoing, if any of the following are imposed on Landlord, they shall be excluded from Impositions and shall be paid by Landlord (except to the extent they are imposed in substitution for any Imposition which would otherwise be payable by Tenant as provided hereunder): inheritance, estate, succession, transfer, gift, or capital stock tax, or any income taxes or other taxes on Landlord's net income (as opposed to any tax assessed against gross receipts) arising out of or related to the ownership of the fee title to the Premises.

&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) Tenant shall pay the Impositions to the respective taxing authorities or to the other payees thereof prior to the date such Impositions become delinquent, and shall provide Landlord with copies of paid receipts evidencing the payment of such Impositions within ten (10) days after Landlord's written request. If any Imposition is not paid by Tenant as provided in the immediately preceding sentence, Landlord, after giving Tenant at least ten (10) days written notice thereof, may (but shall not be obligated to) pay the unpaid Imposition, including any penalties and interest thereon, in which event Tenant shall be obligated to reimburse Landlord on demand for any amount so paid by Landlord plus interest thereon at the Default Rate on the unreimbursed portion of the amount so paid from the date of payment by Landlord until Landlord shall have been reimbursed in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If by law any Imposition may at the option of the taxpayer be paid in installments, Tenant may exercise such option, and shall pay all such installments and interest thereon, if any. At the end of the Term, Tenant shall deposit with Landlord an amount sufficient to pay Tenant's pro rata share of all Impositions for the calendar year in which the Lease terminates. Impositions applicable to any period prior to the Commencement Date or subsequent to the expiration or earlier termination of the Term shall be prorated between Landlord and Tenant based on the number of actual days elapsed during the applicable period of assessment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Permitted Contests of Impositions</u>. Tenant, at its sole expense, may, by appropriate legal proceedings conducted in good faith and with due diligence, contest the amount or validity of any Imposition, if: (a) such proceedings operate to suspend the collection thereof from Landlord and the Premises; (b) Tenant shall have furnished such security, if any, as may be required in the proceedings; (c) Tenant shall give Landlord reasonable notice of, and information pertaining to, such contest and regular progress reports with respect thereto; (d) no Event of Default shall exist; and (e) if such Imposition is secured by a lien on the Premises, then Tenant shall have removed such lien by bonding or otherwise. Tenant shall promptly and diligently prosecute each such contest to a final conclusion. Landlord shall cooperate as requested by Tenant including, without limitation, providing all documents or information in its possession requested by Tenant, as reasonably required to enable Tenant to prosecute any such contest. Tenant shall indemnify, defend and hold Landlord harmless from and against all causes of action, claims, damages, demands, losses, judgments, liabilities and expenses (including reasonable attorneys' fees and costs) (collectively, "**<u>Claims</u>**") arising in connection with any such contest and shall, promptly after the final determination of such contest, pay all amounts which shall be imposed therein, together with all penalties, fines, interest, and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Compliance with Laws and Permitted Encumbrances</u>. Tenant shall at all times during the Term, at Tenant's sole expense, perform all Alterations (whether structural or non-structural) and other work necessary to cause the Premises (and Tenant's operations at the Premises) to comply in all material respects with all applicable law or other legal requirements, including any future law that differs substantially from the law in effect on the Effective Date. In addition, Tenant shall comply with and perform all of the obligations imposed upon the owner of the Premises by any of the Permitted Encumbrances. Tenant shall obtain and maintain all licenses and permits required to operate the Premises for the applicable Permitted Use and shall provide Landlord with copies of all such licenses and permits within thirty (30) days after any reasonable request by Landlord. "**<u>Permitted Encumbrances</u>**" shall mean any easement, declaration, covenant, condition, restriction, lien or other agreement encumbering title to the Premises (other than any Mortgage or other documents securing or governing the loan secured by the Mortgage) as of the Commencement Date or entered into after the Commencement Date by Tenant or with Tenant's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Term, except as set forth in <u>Section 3.6(b)</u> below, Tenant shall be solely responsible for its compliance with Environmental Laws applicable to the Premises, including the performance of all actions required by any governmental authority having jurisdiction over the Premises with respect to Hazardous Materials, or as necessary to comply with Environmental Laws with respect to Hazardous Materials released on, in or under the Premises during or before the Term. Tenant shall be solely responsible for the release of Hazardous Materials by anyone on, in, about or under the Premises: (i) during the Term except as the result of the gross negligence or willful misconduct of Landlord or Lender or the agent or contractor of either of them; and (ii) after the Term as the result of the gross negligence or willful misconduct of Tenant or its agent, invitee or contractor.

&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) Landlord shall be solely responsible for the release of Hazardous Materials on, in or under the Premises: (i) before the Term as the result of the gross negligence or willful misconduct of Landlord or its agent or contractor; and (ii) after the Term except as the result of the gross negligence or willful misconduct of Tenant or its agent, invitee or contractor.

&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) Tenant shall indemnify, defend, and hold harmless, Landlord, Lender and their officers, directors, managers, agents (acting within the scope of such agency) and affiliates from and against all Claims arising directly or indirectly from the release of Hazardous Materials for which Tenant is responsible pursuant to <u>Section 3.6(a)</u> hereof. The foregoing indemnification shall survive any assignment or termination of this Lease.

&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) Landlord shall indemnify, defend, and hold harmless, Tenant and Tenant's officers, directors, managers, agents (acting within the scope of such agency) and affiliates from and against all Claims arising directly or indirectly from the release of Hazardous Materials for which Landlord is responsible pursuant to <u>Section 3.6(b)</u> hereof. The foregoing indemnification shall survive any termination of this Lease.

&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) Landlord and Tenant shall supply to the other, and to Lender, as promptly as possible, and, in any event, within ten (10) days after receipt of same, copies of all Claims or notices of violation of any Environmental Law, relating in any way to the Premises or Tenant's use thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**<u>Environmental Laws</u>**" means all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, relating to, or imposing liability or standards of conduct concerning air, soil or water pollution, or occupational or environmental conditions on, under, or about the Premises, as now in effect, including without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) and the Superfund Amendments and Reauthorization Act of 1986 (SARA) (42 U.S.C.A. §§ 9601 et seq.); the Resource Conservation and Recovery Act of 1976 (RCRA) and the Solid Waste Disposal Act (42 U.S.C.A. §§ 6901 et seq.); the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) (33 U.S.C.A. §§ 1251 et seq.); the Toxic Substances Control Act (TSCA) (15 U.S.C.A. §§ 2601 et seq.); the Hazardous Materials Transportation Authorization Act (HMTA) (49 U.S.C.A. §§ 5101 et seq.; the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) (7 U.S.C.A. §§ 136 et seq.); the Clean Air Act (CAA) (42 U.S.C.A. §§ 7401 et seq.); the Safe Drinking Water Act (SDWA) (42 U.S.C.A. §§ 300f et seq.); the Surface Mining Control and Reclamation Act of 1977 (SMCRA) (30 U.S.C.A. §§ 1201 et seq.); the Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA or EPCRTKA) (42 U.S.C.A. §§ 11001 et seq.); and the Texas Solid Waste Disposal Act (V.C.T.A. Health and Safety Code Sections 361.001 et seq.), the Texas Water Code (V.C.T.A. Water Code Sections 26.001-26.407) and Risk Reduction Standard No. 1 (30 Tex. Adm. Code Section 335.554); each as amended and as now or hereafter in effect and any similar state or local 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;(g) "**<u>Hazardous Materials</u>**" means: (a) those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in CERCLA, RCRA, TSCA, HMTA, or under any other Environmental Law; (b) those substances listed in the United States Department of Transportation (DOT) (Table 49 C.F.R. § 172.101), or by the Environmental Protection Agency (EPA), or any successor agency, as hazardous substances (40 C.F.R. Part 302); (c) other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (d) any material, waste, or substance that is: (i) a petroleum or refined petroleum product (ii) asbestos (iii) polychlorinated biphenyl (iv) designated as a hazardous substance pursuant to 33 U.S.C.A. § 1321 or listed pursuant to 33 U.S.C.A. § 1317 (v) a flammable explosive, or (vi) a radioactive material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Qualified Data Center Exemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Landlord maintains the Qualifying Data Center Exemption designation No. DC737649-OP1 with respect to the Premises (the "**<u>QDCE</u>**") issued by the Texas Comptroller of Public Accounts (the "**<u>Comptroller</u>**"). Landlord is a "Qualified Owner" per Texas Administrative Code Rule 3.335(a) as in effect on the date hereof ("**<u>Rule 3.335</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;(b) By entering into this Lease, Landlord intends to amend and/or supplement the QDCE in order to update the designation from "Qualifying Data Center" to "Qualifying Large Data Center", which updated designation Landlord shall make commercially reasonable efforts to obtain.

&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) By entering into this Lease, Tenant intends to apply for the designation "Qualified Operator" per Rule 3.335 and Tenant's affiliate Nscale Ward County Borrower SPV, LLC ("**<u>Nscale SPV</u>**") intends to apply for the designation "Qualified Occupant" per Rule 3.335. Accordingly, Tenant shall promptly deliver to Landlord a completed application and associated documentation to amend and/or supplement the QDCE in order to include Tenant and Nscale SPV thereunder: The Parties undertake to take the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Tenant shall provide to Landlord all information necessary to enable Landlord to submit the relevant applications, amendments, and supplements to the Comptroller 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;(ii) simultaneous with submission to the Comptroller, Landlord shall send Tenant an electronic copy of all such submissions and other communications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Tenant shall not contact the Comptroller without the prior consent of Landlord; 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;(iv) Landlord shall promptly notify Tenant of all material communications and notices from, and issuances by, the Comptroller.

&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) Tenant represents that the investments it will report shall constitute "qualifying purchases" within the meaning of Rule 3.335 and Texas Tax Code Sections 151.359 and 151.3595, and that such investments are permissible to be included in the total investment required to satisfy the minimum investment amount required to be designated a "Qualifying Occupant" under Rule 3.335.

&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) Following its approval or acceptance by the Comptroller as a "Qualified Operator" per Rule 3.335 and Nscale SPV's approval or acceptance by the Comptroller as a "Qualified Occupant", if Tenant or Nscale SPV is contacted by the Comptroller concerning the QDCE, Tenant's status as a "Qualified Operator", Nscale SPV's status as a "Qualified Occupant", or any other matter (including matters unrelated to this Lease), Tenant will provide written notice to Landlord within three (3) days.

&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) Landlord shall maintain its "Qualified Owner" designation under the QDCE and, in furtherance thereof, shall comply with all statutory and regulatory requirements necessary to maintain such designation (the "**<u>Landlord Exemption Requirements</u>**"). Landlord shall not negligently, recklessly or intentionally take (or omit to take) any action that would jeopardize or impair its "Qualified Owner" designation under the QDCE.

&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) Tenant shall maintain its "Qualified Operator" designation and shall maintain Nscale SPV's designation as a "Qualified Occupant" per Rule 3.335 and, in furtherance thereof, shall comply with all statutory and regulatory requirements necessary to maintain such designation, including, without limitation, meeting any minimum expenditure and employment requirements, maintaining sole occupancy, maintaining the Substation in accordance with Section 3.2(b) and refraining from pursuing other tax abatements that would jeopardize or impair such designation (the "**<u>Nscale Exemption Requirements</u>**"). Tenant shall not negligently, recklessly or intentionally take (or omit to take) any action that would jeopardize or impair its "Qualified Operator" designation or Nscale SPV's "Qualified Occupant" designation per Rule 3.335. Within thirty (30) days after the end of each calendar year during the Term, Tenant shall deliver to Landlord a written report, in form and substance agreed by the Parties , evidencing Tenant's compliance with the Nscale Exemption 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;(h) In the event of any QDCE-related audit by the Comptroller or another government entity, including with respect to compliance with the Landlord Exemption Requirements and/or the Nscale Exemption Requirements, each party shall make commercially reasonable efforts to cooperate with the other party and with the Comptroller (or relevant government entity) in order to maintain the QDCE and designations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If at any time the QDCE, or Tenant's status as a "Qualified Operator" or Nscale SPV's status as a "Qualified Occupant" per Rule 3.335, is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) not approved; 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;(ii) withdrawn, cancelled, eliminated, negated, or disqualified by the Comptroller or any other government entity (a "**<u>QDCE Loss</u>**"), Tenant shall be liable for and shall pay all past, present and future Impositions, along with all associated penalties and interest, that assess or accrue during the Term as a result of or following such QDCE Loss and shall indemnify, defend and hold harmless Landlord and its affiliates from any Claims asserted against or incurred by Landlord or its affiliates.

Notwithstanding the foregoing, Landlord shall be solely responsible for, and shall indemnify and hold Tenant harmless against, any Impositions (including any associated penalties and interest) arising from or relating to a QDCE Loss that are attributable to any period prior to the Effective Date, regardless of when such amounts are assessed or billed.

&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) Landlord shall make commercially reasonable efforts to cooperate with Tenant if Tenant requests a new legal entity be added as a "Qualified Occupant" or "Qualified Operator" under the QDCE, including submitting timely applications, amendments and supplements to the Comptroller.

&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) Tenant agrees to use good faith efforts to cooperate with Landlord by: (a) complying with reporting requirements required by the State of Texas, or required under Texas law; (b) taking any additional steps or executing any documentation as reasonably requested by Landlord or the State of Texas; and (c) providing documentation and support regarding Tenant's capital investment in connection with the Premises as requested by Landlord.

&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) Landlord shall not be liable to Tenant on account of, and Tenant shall not have any remedies with respect to damages or losses resulting from, any statement, representation or warranty regarding the QDCE, Rule 3.335 or any designation or benefits pursuant thereto; provided, however, that the foregoing limitation of liability shall not apply to the extent any such statement, representation or warranty by Landlord constitutes gross negligence or willful misconduct of Landlord.

&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) Each Party shall maintain and preserve all documents, records, filings, correspondence, reports, certifications, and other materials relating to the QDCE (collectively, "**<u>Exemption Records</u>**") for a period of ten (10) years after the date such Exemption Records are created or received, or for such longer period as may be required by applicable law or by the Comptroller. Exemption Records shall be maintained in an organized manner and made available for inspection by the other Party upon reasonable prior notice and during normal business hours. Each Party shall hold the Exemption Records strictly confidential.

**ARTICLE 4.<br> REPAIRS AND ALTERATIONS TO PREMISES; EQUIPMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Tenant's Repair, Replacement, and Maintenance Obligations</u>. During the Term, Tenant, at its expense, shall maintain the Premises (including the electrical systems, roads, grounds and parking and the foundation, roof and structure of the Improvements and any easements benefitting the Land or Improvements) in good condition, repair, and cleanliness to a standard that is as high or higher than that of comparable commercial premises in the region where the Premises are located and in compliance with applicable law, reasonable wear and tear excepted. Tenant shall, at its expense, make all repairs and replacements to the Improvements, structural or otherwise, that are required to maintain the Premises according to such standard. Tenant shall not commit nor suffer any waste on the Premises. **TENANT ACKNOWLEDGES THAT LANDLORD IS NOT OBLIGATED TO MAKE ANY REPAIRS WHATSOEVER TO THE PREMISES OR TO REPLACE ANY COMPONENT OF THE PREMISES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Alterations to Improvements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall not perform work on the Premises (an "**<u>Alteration</u>**") that is a Major Alteration without the written consent of Landlord, which consent shall not be unreasonably withheld or conditioned. Tenant may undertake Alterations that are not Major Alterations without Landlord's written consent so long as such Alterations are completed in accordance with <u>Section 4.2(d)</u> below and no Event of Default exists. At the expiration or earlier termination of this Lease, all Alterations and all fixtures installed therein shall become the property of Landlord (except as provided in <u>Section 4.3</u> 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;(b) For purposes of this Lease, "**<u>Major Alterations</u>**" shall mean: (i) Alterations which affect the foundation or footprint of the Improvements; (ii) Alterations which involve the structural elements of the Improvements, such as a load-bearing wall, structural beams, columns, supports or roof; (iii) Alterations affecting the Substation or power capacity, including, without limitation, attachments of Tenant equipment to the electrical systems of the Substation if such electrical connections may overload the power capacity of the Premises or Substation electrical systems or fail to leave a recommended safety margin of capacity in the system or relevant part thereof; or (iv) Alterations which involve constructing new Improvements or underground storage tanks.

&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) Major Alterations shall be made by a licensed contractor and according to plans and specifications prepared by an architect or engineer and approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. For each Major Alteration, unless waived by Landlord, Tenant shall deliver, or cause the general contractor to deliver, to Landlord, payment and performance bonds naming Landlord and Lender as additional obligees, issued by a company rated "A" or better by Standard & Poor's (and in a form reasonably acceptable to Landlord) covering such Major Alteration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Landlord gives its prior written consent to any Alteration, or if such consent is not required, Tenant agrees that in connection with such Alteration: (i) the fair market value of the Premises shall not be lessened in any material respect after the completion of the Alteration, or its structural integrity impaired; (ii) the Alteration shall not in the aggregate reduce the gross floor area of the Improvements; (iii) all work shall be performed in a good and workmanlike manner by a licensed contractor, and shall be expeditiously completed in compliance with applicable laws and the Permitted Encumbrances; (iv) Tenant shall promptly pay all expenses of the Alteration, and shall discharge or bond off any Mechanic's Lien(s) filed against any of the Premises arising out of the same; (v) Tenant shall provide written notice to Landlord prior to commencement of such Alterations, together with a summary of the work to be performed, the costs thereof, copies of any construction contracts and plans and specifications; (vi) Tenant shall provide Landlord on a monthly basis copies of lien waivers, disbursements and such other information reasonably requested by Landlord with respect to the hard and soft cost of the work and costs incurred by Tenant or any contractor for the Alterations since the last disbursement so that Landlord can verify that the amounts disbursed from time to time are represented by work that is completed in place or delivered to the site and free and clear of Mechanic's Lien claims, (vii) Tenant shall procure and pay for all permits and licenses required in connection with the Alteration; (viii) upon completion of the Alteration, Tenant shall promptly provide Landlord with (A) evidence of full payment to all laborers and materialmen contributing to the Alteration, (B) if the Alteration required Landlord's consent, a certificate executed by Tenant or its contractor certifying the Alteration to have been completed in conformity with the plans and specifications, (C) a certificate of occupancy (if the Alteration is of such a nature as would require the issuance of a certificate of occupancy) or other permit or license required by applicable law for the Alteration, and (D) any other documents or information reasonably requested by Landlord; and (ix) before commencement of any work, Tenant shall execute and file or record (or cooperate with Landlord in the execution and filing as to any notices to be signed by Landlord) as appropriate, a "Notice of Non-Responsibility," or any equivalent notice, if any, permitted under 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;(e) With respect to the Alterations contemplated to be performed by Tenant before the Rent Commencement Date, all such Alterations shall comply with the fit-out conditions provided by OEM and Tenant shall keep OEM informed of the status of such Alteration work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Trade Fixtures and Equipment</u>. Tenant, at its own expense, may install, modify, or remove its Trade Fixtures and Equipment in the Premises. Tenant will maintain its Trade Fixtures and Equipment at its sole cost. Upon the expiration of the Term, provided that no Event of Default exists, Tenant shall be entitled to remove its Trade Fixtures and Equipment from the Premises, but Tenant shall promptly repair any damage to the Premises which is caused by such removal. The term "**<u>Trade Fixtures and Equipment</u>**" shall mean all of Tenant's tangible personal property, equipment and trade fixtures, including, without limitation, racks (for servers and other equipment), servers, and computer, switch, communications, and internet protocol equipment, cable/data drops, telephones, and related hardware, and any modular containers or systems which contain any of the same, in each case, which can be removed without material damage to the Premises and which are not essential to the normal building functions for any generic use of the Premises (i.e., not related to Tenant's particular use). Trade Fixtures and Equipment shall not include items which cannot be removed without material damage to the Premises or which are essential to the normal function of the building for any generic use, including, without limitation, plumbing systems and fixtures, toilets, windows, window coverings, heating, ventilation and air conditioning systems, electrical systems, light fixtures, security systems, surveillance systems, parking control systems and other similar fixtures and systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Mechanic's and Other Liens</u>. At all times during the Term, Tenant shall indemnify, defend, and hold Landlord harmless from and against all liens, charges, or encumbrances of any kind and claims thereof for labor, services, materials, supplies, or equipment ("**<u>Mechanic's Lien</u>**"), performed on or furnished to the Premises at the direction or order of Tenant, its agent, invitee or any subtenant. Should any Mechanic's Lien be recorded against the Premises by reason of Tenant's acts or omissions because of a claim against Tenant, Tenant shall cause the same to be cancelled or discharged of record by bond or otherwise within twenty-five (25) days after notice to Tenant by Landlord. If Tenant shall fail to cancel or discharge said Mechanic's Lien or other lien within the time provided, then Landlord may, at its sole option, cancel or discharge the same, and upon Landlord's demand, Tenant shall promptly reimburse Landlord for its out-of-pocket costs incurred as a result of such failure.

**ARTICLE 5.<br> INSURANCE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Insurance Maintained by Tenant</u>. Tenant shall maintain, provide or cause to be provided, at its own expense the following insurance:

&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) Special form insurance with respect to the Improvements insuring against any peril now or hereafter included within the classification "All Risk" or "Special Perils" (including, without limitation, fire, lightning, windstorm, hail, terrorism, explosion, riot, riot attending a strike, civil commotion, vandalism, aircraft, vehicles and smoke), in each case: (i) in an amount equal to 100% of the actual replacement cost of the Improvements, exclusive of costs of excavations, foundations, underground utilities and footings, with a waiver of depreciation ("**<u>Full Replacement Cost</u>**"); (ii) in an amount sufficient so that no co-insurance penalties shall apply; (iii) providing for no deductible in excess of 5% of the Full Replacement Cost; (iv) at all times insuring against at least those hazards that are commonly insured against under a "special causes of loss" form of policy, as the same shall exist on the Commencement Date, and together with any increase in the scope of coverage provided under such form after the Commencement Date; (v) if the structure or use of the Premises is legal nonconforming, providing coverage for contingent liability from operation of building laws, demolition costs and increased cost of construction endorsements together with an ordinance or law coverage endorsement; (vi) naming Landlord and Lender as "loss payee" as their respective interests may appear; and (vii) providing coverage for certified acts of terrorism as defined by the Terrorism Risk Insurance Act of 2002 or any successor 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;(b) Commercial general liability insurance against claims of personal injury or death and property damage caused by an occurrence upon, in or about the Premises, affording a minimum coverage of not less than $1,000,000 combined single limit (per occurrence), with an aggregate annual limit of $2,000,000 and an umbrella coverage of $5,000,000, and naming Landlord and Lender as "additional insureds";

&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) Loss of rents or business interruption insurance covering all risks required to be insured against under <u>Section 5.1(a)</u>, <u>(d)</u> and <u>(e)</u> in an amount sufficient to cover all Rent payable under this Lease for the period of any interruption in Tenant's business, not to exceed twelve (12) months;

&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) As long as any construction is taking place on the Premises, builder's risk insurance in the full amount of the cost of the proposed Improvements; 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;(e) Flood insurance if the Premises are located in a flood zone.

All insurance policies required to be maintained by Tenant hereunder shall be with insurance companies with a Standard & Poor's claims paying ability rating of not less than "A," authorized to do business in the State. All insurance policies shall: (i) provide for a waiver of subrogation by the insurer as to claims against Landlord, Lender, and their respective employees and agents; (ii) name Landlord and Lender as additional insureds and/or loss payees, as appropriate, as their interests may appear; (iii) provide that the policy of insurance shall not be cancelled or materially modified without at least thirty (30) days' prior written notice to Landlord and Lender; and (iv) provide that the insurer shall not deny a claim because of the negligence of Landlord, Lender, or Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Certificates</u>. Within 20 days of request by Landlord, Tenant shall provide Landlord with insurance certificates evidencing the insurance required under <u>Section 5.1</u> to be maintained by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Landlord's Acquisition of Insurance</u>. If Tenant at any time during the Term fails to procure or maintain any insurance required hereunder or to pay the premiums therefor, Landlord shall have the right to procure the same and to pay any and all premiums thereon, and any amounts paid by Landlord in connection with the acquisition of insurance shall be immediately due and payable as Additional Rent, and Tenant shall pay to Landlord upon demand the full amount so paid and expended by Landlord, together with interest thereon at the Default Rate from the date of such expenditure by Landlord until repayment in full by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Waiver of Subrogation</u>. Landlord releases Tenant and its officers, directors, managers and agents, and Tenant releases Landlord and its officers, directors, managers and agents, from any liability for damage or destruction to the Premises or any Trade Fixtures and Equipment whether or not caused by the act or omission of, respectively, Tenant or any of its officers, directors, manager or agents, or Landlord or any of its officers, directors, managers or agents, and hereby waives all claims against the others for damage, loss or injury resulting from Casualty, but only to the extent covered by insurance (or, with respect to a claim against Landlord or its officers, directors, managers or agents, to the extent the same would have been covered by insurance had Tenant maintained the insurance required under this Lease).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Blanket Policies</u>. Any insurance provided for in this Article may be effected by a blanket policy or policies of insurance, or under so-called all-risk or multi-peril insurance policies, provided that the amount of the total insurance available with respect to the Premises shall provide coverage and indemnity at least equivalent to separate policies in the required amounts, and provided further that in other respects, any such policy or policies shall comply with the provisions of this Article. Any increased coverage provided by individual or blanket policies shall be satisfactory, provided the aggregate liability limits covering the Premises under such policies shall otherwise comply with the provisions of this Article.

**ARTICLE 6.<br> DAMAGE OR DESTRUCTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Notice of Damage</u>. If the Improvements are damaged or destroyed by fire or other casualty ("**<u>Casualty</u>**"), Tenant shall deliver prompt written notice thereof to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Tenant's Obligation to Repair</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Casualty occurs, then Tenant shall promptly commence and complete the repair or reconstruction of the damaged Improvements to substantially the condition such Improvements were in immediately before the Casualty ("**<u>Restoration</u>**") at Tenant's sole expense. All casualty insurance proceeds disbursed to Tenant shall be used by Tenant solely for Restoration. Tenant shall promptly commence and diligently and continuously carry out the Restoration to full completion as soon as reasonably possible. The Restoration shall be performed by Tenant in a good and workmanlike manner, in accordance with applicable law and the Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to such Restoration, Tenant shall deliver its good faith estimate of the cost thereof, which shall be subject to the approval of Landlord and Lender, which approval shall not be unreasonably withheld. The approved Restoration estimate shall be used by the parties to calculate any excess costs of Restoration to be funded by Tenant as herein provided, but shall not be a limitation upon the full application of Net Insurance Proceeds to all reasonable costs of Restoration incurred by Tenant in the manner set forth herein. The insurance proceeds for any such Casualty shall first be applied to pay all of Landlord's and Lender's reasonable out-of-pocket expenses and attorney's fees incident to the collection thereof; the balance of such insurance proceeds after deduction for such costs ("**<u>Net Insurance Proceeds</u>**") shall be held by Landlord (or if required by the Mortgage or all other documents securing or governing the loan secured by the Mortgage, Lender) and disbursed in accordance with this <u>Section 6.2(b)</u>. The cost of Restoration shall be paid first out of Tenant's own funds to the extent that the approved Restoration estimate exceeds the Net Insurance Proceeds. Any Net Insurance Proceeds remaining after final payment has been made for the Restoration and after Tenant has been reimbursed for any portions it contributed to the cost of Restoration shall be paid to (or retained by) Tenant. If the cost of Restoration shall exceed the Net Insurance Proceeds, the deficiency shall be paid by Tenant. The Net Insurance Proceeds shall be paid out from time to time to Tenant as the work progresses (less any cost to Lender or Landlord of recovering and paying out such proceeds, including, without limitation, reasonable attorneys', trustees' or escrow fees relating thereto and costs allocable to inspecting the work and the plans and specifications), subject to each of the following 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;(i) At the time of any disbursement, no Event of Default shall exist and no
Mechanic's Lien shall have been filed and remain undischarged or unbonded.

&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) Disbursements shall be made from time to time in an amount not exceeding
the hard and soft cost of the work and costs incurred since the last disbursement upon receipt of reasonable evidence of cost and payment
so that Landlord can verify that the amounts disbursed from time to time are represented by work that is completed in place or delivered
to the site and free and clear of Mechanic's Lien claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each request for disbursement shall be accompanied by a certificate of Tenant
describing the work, materials or other expenses, for which payment is requested, stating the cost incurred and stating that Tenant has
not previously received payment for such work or expense and the certificate to be delivered by Tenant upon completion of the work shall,
in addition, state that the work has been substantially completed and complies with the applicable requirements of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) No disbursement made prior to final completion of any item of work shall
cause the aggregate amount disbursed with respect to such item of work to exceed 90% of the value of the portion of such item of work
which has been completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Net Insurance Proceeds held by Landlord or Lender in accordance with this
Section shall be held in a separate federally insured interest bearing account. Any interest earned on the Net Insurance Proceeds shall
be a part of the Net Insurance Proceeds, and shall be disbursed in accordance with this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>No Abatement</u>. No Rent or other amounts payable under this Lease shall abate during any period the Premises are untenantable, in whole or in part, as the result of any Casualty (other than as provided in <u>Section 6.4</u> below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Casualty to Substation</u>. In the event the Substation is damaged by a Casualty, Landlord will deliver prompt written notice thereof to Tenant. Landlord will thereafter send Tenant notice within 30 days after the Casualty specifying the estimated time and cost to restore the Substation to its pre-casualty condition in all material respects, at Landlord's sole cost, unless such Casualty was caused by the gross negligence or willful misconduct of Tenant or its agent, invitee or contractor. Base Rent will be proportionally abated based on available power from the date of the casualty to completion of all restoration work to the Substation. If Landlord fails to complete its restoration work within 90 days of the estimated time in Landlord's notice to Tenant, subject to extension for delays caused by Tenant and Force Majeure, Tenant may, upon written notice to Landlord, complete restoration of the Substation at Landlord's sole cost.

**ARTICLE 7.<br> CONDEMNATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Total or Substantial Taking</u>. As used herein, the term "**<u>Taking</u>**" or "**<u>taken</u>**" shall mean the exercise by any governmental or quasi-governmental authority of the right of eminent domain pursuant to any constitutional or statutory authority, or any private purchase in lieu thereof. If all of the Premises should be subjected to a Taking, this Lease shall terminate on the date physical possession is taken by the condemning authority. If a partial Taking occurs such that the remaining portion of the Premises is not suitable for Tenant's continued use of the Premises, then this Lease shall, at Tenant's option, terminate and the Rent shall be abated during the unexpired portion of this Lease, effective on the later of: (a) the date physical possession is taken by the condemning authority or (b) thirty days after Tenant gives Landlord notice of termination. Any election by Tenant to terminate this Lease in accordance with this <u>Section 7.1</u> shall be evidenced by a written notice of termination delivered to Landlord no later than thirty (30) days after the date physical possession of the Premises is taken by the condemning authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Partial Taking</u>. If a partial Taking occurs which does not give rise to Tenant's termination rights set forth in <u>Section 7.1</u> above, or if Tenant elects not to terminate this Lease as provided in <u>Section 7.1</u> above with respect to any Taking, then (a) the Rent for the unexpired portion of this Lease shall not be reduced, and (b) following such partial Taking, Tenant shall as soon as reasonably practicable commence and complete the repair or reconstruction of the remaining Premises, to the extent practicable, to substantially the same usefulness, design, construction, and quality, and with power capacity and access, of or at the Premises as of the time immediately before the Taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Collection and Disposition of Condemnation Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All compensation awarded or paid for a Taking of the Premises shall be paid to Landlord. Notwithstanding the foregoing, Landlord shall have no interest in any compensation made to Tenant for Tenant's moving and relocation expenses, for the loss of Tenant's Trade Fixtures and Equipment, and for the loss of Tenant's business if a separate award for such items is made to Tenant and such award will not reduce the amount payable to Landlord (and Tenant may seek awards for such items if such conditions are satisfied).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If this Lease is not terminated under <u>Section 7.1</u> above, then so long as no Event of Default exists: (a) Landlord shall make such compensation, net of the out-of-pocket expenses paid or incurred by Landlord and Lender to recover such compensation, available to Tenant to pay the cost of repair or reconstruction and (b) any such compensation remaining after reimbursement to Tenant for the cost of Restoration shall be apportioned equally between Tenant and Landlord.

**ARTICLE 8.<br> INSPECTION BY LANDLORD; TENANT ESTOPPEL; TENANT FINANCIALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Inspection of Premises</u>. Landlord and Landlord's agents and representatives shall be entitled, from time to time, upon 48 hours prior notice to Tenant (or without notice in the event of a bona fide emergency), to enter upon and access the Premises at reasonable times for the purpose of inspecting the same (and permitting prospective lenders to inspect the Premises) and during the last twelve (12) months of the Term of this Lease, for the purpose of showing the Premises (and erecting for sale/lease signs) to prospective tenants or prospective purchasers of the Land. In exercising such rights to access the Premises, Landlord and Landlord's agents and representatives shall use reasonable efforts to avoid any interference with Tenant's use of the Premises.

In addition, Landlord and Landlord's agents and representatives shall have the right, from time to time, without notice, to enter and access only the portions of the Premises reasonably necessary to develop, operate, maintain or repair the Substation or increase power capacity of the Substation.

Notwithstanding the foregoing, Landlord will not either directly or indirectly: (i) access, manipulate or use, for itself or on behalf of any third party, any content or traffic stored on Tenant's equipment or transmitted over Tenant's network facilities or (ii) knowingly allow any third party, other than governmental authorities with appropriate jurisdiction pursuant to a validly issued subpoena (or an equivalent document or authority in the applicable jurisdiction), to access, directly or indirectly, any content or traffic stored on Tenant's equipment or transmitted over Tenant's network facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Tenant Estoppel</u>. Within 20 days after request by Landlord, Tenant shall execute and deliver to Landlord a written statement addressed to Landlord (or to a party designated by Landlord including Lender) certifying to all factual matters reasonably requested by Landlord or Lender relating to this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>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;(a) Within 60 days after the end of each fiscal quarter and within 120 days after the end of each fiscal year of Tenant, Tenant shall deliver to Landlord and Lender complete financial statements of Tenant and Guarantor (if any) including a balance sheet, profit and loss statement, statement of cash flows and all other related schedules for the fiscal period then ended. All such financial statements shall be prepared in accordance with generally accepted accounting principles and shall be audited by an independent certified public accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Tenant or Guarantor is or becomes a publicly listed company and is required to file quarterly and annual statements with the Securities and Exchange Commission, which statements are available on EDGAR, Tenant shall not be obligated to supply any of the financial statements described in <u>Section 8.2(a)</u> above.

**ARTICLE 9. <br> INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Tenant Indemnity</u>. Without limitation of the other indemnity provisions set forth in this Lease but subject to <u>Section 5.4</u> and <u>Section 9.3</u>, Tenant shall indemnify, defend (with counsel approved by Landlord), hold harmless and reimburse Landlord and Landlord's officers, agents, employees, partners, successors, and assigns (collectively, the "**<u>Landlord Parties</u>**") from, against and for any Claims which may be asserted against or suffered or incurred by Landlord Parties by reason of: (i) Tenant's breach of this Lease, regardless of whether Tenant has received notice of such breach, (ii) any accident, injury or damage to person or property which occurs on the Premises during the Term or which results from the negligence or willful misconduct of Tenant or its agents, invitees or contractors, (iii) any violation of applicable law or the Permitted Encumbrances at or on the Premises or by Tenant or any of Tenant's agents, invitees, contractors or employees or (iv) Tenant's use or occupancy of the Premises, or from the conduct of Tenant's business or from any activity, work, or things done, permitted, or suffered by Tenant in, on, or about the Premises or elsewhere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Landlord Indemnity</u>. Subject to <u>Section 5.4</u> and <u>Section 9.3</u>, Landlord shall indemnify, defend, hold harmless and reimburse Tenant and Tenant's officers, agents, employees, partners, successors, and assigns (collectively, the "**<u>Tenant Parties</u>**"), from, against and for any Claim which may be asserted against or imposed upon Tenant Parties by reason of the gross negligence or willful misconduct of Landlord or its agents or contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Excluded Claims</u>. Notwithstanding any provision in this Lease to the contrary: (a) Landlord shall have no obligation to defend, indemnify or hold harmless the Tenant (or its officers, directors, managers, agents or affiliates) for, from and against any Claim arising from the gross negligence or willful misconduct of Tenant or its officers, directors, managers, agents, invitees, contractors or affiliates and (b) Tenant shall have no obligation to defend, indemnify or hold harmless the Landlord or Lender (or their officers, directors, managers, agents or affiliates) for, from or against any Claim arising from the gross negligence or willful misconduct of Landlord, Lender or their officers, directors, managers, agents, contractors or affiliates.

**ARTICLE 10. <br> ASSIGNMENT, SUBLETTING, LENDERS AND EASEMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Assignment and Subleasing by Tenant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 10.2(b)</u>, Tenant shall not, directly or indirectly, voluntarily or by operation of law, sell, assign, encumber, mortgage, pledge, or otherwise transfer or hypothecate all any part of the Premises, or Tenant's leasehold estate hereunder, or sublet all or any portion of the Premises or permit the Premises to be occupied by anyone other than Tenant (each such act herein referred to as a "**<u>Transfer</u>**"), without Landlord's and Lender's prior written consent in each instance, which consent shall not be unreasonably withheld, conditioned, or delayed, save that the Tenant shall be entitled to assign this Lease, any part of the Premises, or Tenant's leasehold estate hereunder to any of its affiliates, or sublet all or any portion of the Premises or permit the Premises to be occupied by any of its affiliates without the prior written consent of the Landlord and Lender. For the avoidance of doubt, the cumulative transfer of any equity interest greater than 50% or any transfer of a controlling interest in Tenant and/or Tenant's ownership (at any level) in one or a series of transactions, or as a merger or consolidation of Tenant with another legal entity, shall be deemed Transfers for purposes hereof. Any attempted Transfer without Landlord's prior written consent shall be void and shall constitute a breach of this Lease. Notwithstanding anything to the contrary in this Lease, Tenant shall have the right, without the consent of Landlord and Lender, to assign Tenant's interest in this Lease and/or to sublet or license all or any portion of the Leased Properties and/or to make any Transfer: (a) to any entity which purchases all or substantially all of the assets of Tenant; (b) as part of a merger, acquisition, consolidation or public offering of stock or other interests; (c) to any Affiliate of Tenant; (d) to its financiers in connection with any financial arrangements in connection with the Lease and Tenant's anchor customer; and/or (e) to any Lease Guarantor, so long as, in each case, (i) the proposed Transfer is not reasonably expected to result in a violation of any other material term or condition of this Lease; (ii) in respect of each of (a) to (c), the proposed transferee has experience in the operation of data centers similar to the Premises and has a favorable business and operational reputation and character (as reasonably determined by Landlord); and (iii) the net worth of the proposed transferee after such assignment, merger, acquisition, consolidation or public offering of stock or other interests is equal or greater than Tenant's net worth immediately prior to such assignment merger, acquisition, consolidation or public offering of stock or other interests. Notwithstanding any of the foregoing, in the event of Tenant becoming insolvent, Tenant's anchor customer may within 30 days elect via written notice to Landlord to step-into this Lease and novate all obligations of Tenant's for the remainder of the (then) current Term, provided that such anchor customer shall pay all Rent that is then due and owing by Tenant to Landlord hereunder prior to the novation. Notwithstanding the foregoing, for so long as the lease guaranty from OEM is in effect, no Transfer shall be permitted under this Lease without the prior consent of OEM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Tenant wishes to assign or otherwise make a Transfer of this Lease, Tenant shall first notify Landlord of the name of the proposed transferee and of the material terms, provisions and conditions contained in the proposed Transfer, and shall provide Landlord with drafts of the proposed assignment or sublease and such information as to the proposed transferee's financial condition, business experience, proposed business(es) to be conducted on the Premises, and standing as Landlord may reasonably require. In the event that the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment, plus any bonus or other consideration therefor or incident thereto) exceeds the Rent payable under this Lease, then Tenant shall be bound and obligated to pay Landlord, as Additional Rent hereunder, all such excess Rent and other excess consideration within ten (10) days following receipt thereof by Tenant. Landlord shall have the right to collect Rent directly from any assignee, or upon an Event of Default a subtenant of Tenant, without releasing or limiting the liability of Tenant hereunder, except to the extent of Tenant's liability for the Rent collected by Landlord directly from such assignee or subtenant. In addition, promptly after any such assignment or sublease, Tenant shall reimburse Landlord and Lender for all reasonable out-of-pocket expenses incurred by them in connection with such transactions, including reasonable attorneys' fees and costs.

&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) No such assignment or sublease shall operate to release Tenant from liability under this Lease or to reduce any of its obligations hereunder. Notwithstanding anything herein to the contrary, Tenant may not assign or sublet the Premises if: (i) such assignment or sublease would cause any part of the Premises to become "tax exempt use property" within the meaning of Section 168(h) of the Internal Revenue Code, (ii) any direct or indirect beneficial interest in the assignee or subtenant is owned by a person listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury, or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of such office or pursuant to any other applicable Executive Order unless such ownership is through a United States publicly traded entity, (iii) the assignee or subtenant enjoys diplomatic or sovereign immunity, or (iv) such sublease or assignment is not for a Permitted Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Tenant Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Personal Property</u>. Anything herein to the contrary notwithstanding, Tenant may grant liens upon and security interests in Tenant's Trade Fixtures and Equipment. Accordingly, Landlord waives its landlord's lien (whether statutory or common law) upon the Trade Fixtures and Equipment. Landlord shall execute any commercially reasonable agreement, consent, waiver or other instrument requested by Tenant or any lienholder which may be required in connection with such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Leasehold Mortgages</u>. Anything herein to the contrary notwithstanding, Tenant may grant leasehold mortgages upon its leasehold estate or collaterally assign this Lease to any bona fide third party lender under a secured corporate financing by Tenant or Tenant's parent and all such leasehold mortgages shall be subject and subordinate to any existing or future Mortgage in the same manner and to the same extent this Lease is subject and subordinate to any such existing or future Mortgage. Any such Leasehold mortgage shall be a lien only upon Tenant's leasehold estate hereunder and shall not be a lien upon Landlord's fee or reversionary interest in the Premises, and no such leasehold mortgage shall be deemed or interpreted as a subordination of Landlord's fee interest or interest in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Assignment by Landlord</u>. In the event of the transfer and assignment by Landlord of its interest in this Lease to a person expressly assuming Landlord's obligations under this Lease, Landlord shall thereby be released from any further obligations hereunder, and Tenant agrees to look solely to such successor in interest of Landlord for performance of such future obligations. Any security given by Tenant to secure performance of Tenant's obligations hereunder shall be assigned and transferred by Landlord to such successor in interest and Landlord shall thereby be discharged of any further obligation relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Landlord Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Subordination; Non-Disturbance</u>. Subject to the provisions of this Section, Tenant's leasehold estate hereunder shall automatically be subject and subordinate to the lien of any deed of trust, deed to secure debt or mortgage covering Landlord's interest in the Premises (a "**<u>Mortgage</u>**"), given in favor of any lender(s) providing financing to Landlord ("**<u>Lender</u>**"); <u>provided</u>, <u>however</u>, that in consideration of such subordination, and as a condition precedent thereto without the necessity of Tenant taking any action or executing any additional instrument, the Lender agrees that so long as no Event of Default exists: (a) Tenant's leasehold estate and right of possession hereunder shall not be disturbed, nor shall this Lease be affected in any manner, by any default under such Mortgage or by any foreclosure or other enforcement action under such Mortgage, or by any sale in lieu thereof, and (b) the purchaser at such foreclosure sale or pursuant to a deed in lieu thereof shall be bound to Tenant for the Term, the rights of Tenant hereunder shall expressly survive, and this Lease shall in all respects continue in full force, and (c) Tenant shall not be named as a party defendant in any such foreclosure suit, except as may be required by applicable law. Upon request by Landlord, Tenant shall execute a subordination, non-disturbance and attornment agreement for the benefit of any Lender upon such terms that are reasonably acceptable to Tenant and such Lender and are not inconsistent with this <u>Section 10.4</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;(b) <u>Financing Cooperation; Campus Separation</u>. In addition, Tenant acknowledges that this Lease and Premises may be financed after the Effective Date, and Tenant agrees to cooperate in good faith with Landlord's reasonable requests relating to such financing program process and requirements, and agrees and acknowledges that information relating to Tenant and this Lease may be made available by Landlord to the financing parties, and Tenant agrees to cooperate in good faith with Landlord in securing such financing, at Landlord's sole expense, including amending this Lease, entering into new Leases and/or separating or subdividing the Premises to accommodate such financing requirements or completing any documents reasonably necessary to accomplish any such financing transaction (so long as Tenant's rights and entitlements under this Lease are not reduced thereby; <u>provided</u> that if there are separate leases they shall not be cross-defaulted). If the Premises are separated, the parties will work together in good faith to reconstruct or reconfigure any security features including fencing or barriers, access roads and other community features, and agree upon easements for access, rights-of-way, utilities, and other necessary uses in order for Tenant to operate the applicable premises and improvements as a stand-alone facility for the Permitted Use, in each case as reasonably necessary to facilitate Tenant's continued operation of the Premises in accordance with its security requirements and having regard to the nature and layout of the campus and other tenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice and Cure Rights for Lender</u>. Upon Tenant's receipt of written notice of the name and mailing address of Lender, Tenant shall deliver to Lender a copy of any written notice of default delivered by Tenant to Landlord, and Lender shall have the opportunity to cure (or cause to be cured) such default a period that 30 days after the time to cure as is available to Landlord under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Easements</u>. Landlord may grant easements, licenses, and rights of use and access for the use of portions of the Premises for underground or overhead easements, transmission lines, pipelines or similar facilities, which do not include the installation of surface structures on any Improvements other than: (i) pipeline markers, vents and similar minor obstructions or (ii) power poles, towers or standards for carrying overhead lines or transmission facilities. Landlord may subject the Premises to a condominium regime or reciprocal easement agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Advance Notice of Sale.</u> Provided no Event of Default exists and is continuing, in the event that the Landlord wishes to pursue any sale or other transfer or disposal to a third party of all or substantially all of the assets or undertakings of the Landlord or of the Premises or an assignment pursuant to Section 10.3 of this Lease, then the Landlord will provide the Tenant with at least thirty (30) days prior written notice and the Parties will then enter into good faith discussions in connection with a potential sale by the Landlord to the Tenant (or any of its affiliates), subject to the agreement of terms by the Parties in their sole discretion. These discussions are intended to explore the feasibility of a transaction but shall not be construed as creating any binding obligation to proceed with such a transaction. The discussion and negotiation process shall be non-exclusive, and each party reserves the right to engage in similar discussions with third parties. Either party may terminate these discussions at any time, for any reason, without liability or obligation to the other party.

**ARTICLE 11. <br> END OF TERM**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Surrender Upon Termination</u>. Subject to the terms of this Lease, upon expiration or earlier termination of this Lease, Tenant shall deliver the Premises to Landlord in reasonably good repair and condition, ordinary wear and tear excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Holding Over</u>. If Tenant remains in possession of the Premises after the expiration of this Lease and without the execution of a new Lease, Tenant shall be deemed to be occupying the Premises as a tenant from month to month at a monthly fixed rent equal to 125% of the Base Rent payable during the last full calendar month of the Term, and otherwise subject to all the provisions of this Lease insofar as the same are applicable to a month-to-month tenancy. Nothing contained in this <u>Section 11.2</u>, or this Lease shall be construed as a grant of Landlord's permission for Tenant to remain in possession of the Premises after the expiration of this Lease without the execution of a new Lease.

**ARTICLE 12. <br> DEFAULT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>Event of Default</u>. The occurrence of any of the following shall constitute an "**<u>Event of Default</u>**" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall fail to pay when due any installment of Rent or any other obligation under this Lease involving the payment of money and such failure shall continue unremedied for a period of five (5) days after Landlord gives Tenant notice of such failure provided that the expiry of such five (5) day period is no earlier than thirty (30) days following the due date for such monetary obligation.

&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) Tenant shall fail to maintain the insurance required to be maintained under <u>Section 5.1</u> or shall breach its obligations under <u>Section 2.3(b)</u>, <u>Section 2.7</u>, <u>Section 4.2</u>, <u>Section 4.4</u> or <u>Exhibit B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant shall fail to comply with any provision of this Lease, other than as described in subsection (a) or (b) above, and shall not cure such failure within thirty (30) days after notice thereof from Landlord, except that if the failure is not reasonably capable of cure within said 30-day period and Tenant promptly commences efforts to cure such failure, an Event of Default shall not exist so long as Tenant diligently prosecutes such efforts to completion (but such cure period, including any extension, shall not in the aggregate exceed one hundred twenty (120) days).

&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) Tenant or any Lease Guarantor shall make a transfer in fraud of creditors, or shall make an assignment for the benefit of creditors.

&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) Tenant or any Lease Guarantor shall file a petition under the federal Bankruptcy Code, as amended, or under any similar law or statute of the United States or any state thereof, or Tenant shall be the subject of proceedings filed against Tenant under any such laws by any person other than Landlord.

&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) A receiver or trustee shall be appointed for all or substantially all of the assets of Tenant or any Lease Guarantor by any person other than Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any Lease Guarantor shall fail to comply with any provision of its respective guaranty beyond any notice and cure periods provided for thereunder, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>Remedies for Tenant's Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence and continuance of an Event of Default, Landlord may: (i) terminate this Lease and recover possession of the Premises, including, without limitation, through self-help rights; (ii) bring suit for the collection of rents and/or any damages resulting from Tenant's default without entering into possession of the Premises or voiding this Lease; or (iii) continue this Lease in effect and recover Rent as it becomes due. Acts of maintenance or preservation or efforts to relet the Premises (including removing Tenant's Trade Fixtures and Equipment) or the appointment of a receiver upon initiative of Landlord does not constitute a termination of Tenant's right to possession, unless written notice of termination is given by Landlord to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an Event of Default exists, then the following clauses shall be in effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Landlord shall have the exclusive right to adjust and compromise any claims under any insurance carried by Tenant for which Landlord is an additional insured or loss payee. All insurance proceeds and other proceeds related to a Casualty or a Taking shall be paid to Lender to be applied in accordance with the Loan Documents, or if there is no Lender, then to Landlord who may use such proceeds to cure the Event of Default or apply same to the cost of Restoration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Landlord may, to the extent permitted by applicable law, whether or not this Lease has been terminated enter upon and repossess the Premises and any Trade Fixtures and Equipment by reasonable force, summary proceedings, ejectment or otherwise, and, to the extent permitted by applicable law, may remove Tenant and all other Persons and any of Tenant's property from the Premises.

&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) Mention in this Lease of any particular remedy shall not preclude Landlord from any other remedy hereunder, at law or in equity, including, without limitation, the right of injunction. Tenant waives any rights of redemption granted by applicable laws if Tenant is properly vacated, evicted or dispossessed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <u>Damages Upon Lease Termination</u>. If Landlord terminates this Lease pursuant to <u>Section 12.2</u>, Landlord shall retain the Option Payment as liquidated damages (regardless of the date of termination) and may recover from Tenant (in addition to any other remedies available to Landlord under applicable laws): (a) the worth at the time of award of all accrued but unpaid Rent and other charges payable hereunder by Tenant; plus (b) the worth at the time of award of the amount by which all unpaid Rent and other charges payable hereunder by Tenant which would have been earned after termination until the time of award <u>exceeds</u> the amount of such rental loss that Tenant proves could have been reasonably avoided; plus (c) the worth at the time of award of the amount by which all unpaid Rent and other charges payable hereunder by Tenant after the time of award for the remainder of the Term <u>exceeds</u> the amount of such rental loss that Tenant proves could be reasonably avoided; plus (d) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease. As used in this <u>Section 12.3(a)</u> and <u>(b)</u>, the "**<u>worth at the time of award</u>**" is computed by allowing interest at the Default Rate. As used in <u>Section 12.3(c)</u>, the "**<u>worth at the time of award</u>**" is computed by discounting such amount at the discount rate (primary credit rate) of the Federal Reserve Bank in or closest to the State at the time of award plus one percent (1%). As used in <u>Section 12.3</u>, "**<u>time of award</u>**" means the earlier of the date when Tenant pays to Landlord the amount recoverable by Landlord, or the date of entry of any final determination, order, or judgment of any court or other legally constituted body determining the amount recoverable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 <u>Landlord's Default and Tenant's Remedies</u>. Landlord shall be in default of this Lease if: (a) in the case of a default which can be cured by payment of money, such default continues for fifteen (15) days after notice to Landlord without cure; or (b) in the case of a default which cannot be cured by payment of money, it continues either for thirty (30) days after notice, or such longer time as is reasonably necessary so long as Landlord initiates such cure within the aforementioned thirty (30) day period and thereafter prosecutes such cure to completion. In the event of a Landlord default, Tenant will have recourse to all legal and equitable remedies then available to Tenant, except that Tenant waives any right to terminate the Lease or to abate Rent or to make any offset against Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 <u>Limited Liability</u>. The liability of Landlord to Tenant for any default by Landlord under the terms of this Lease shall be limited solely to the interest of Landlord in the Premises, including rents, profits, and insurance, condemnation and sales proceeds therefrom; and Landlord shall not be liable for any deficiency. In no event shall Landlord or any partner, member or shareholder of Landlord be personally liable for any of the obligations of Landlord hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 <u>Mitigation</u>. If there is a default by one party which continues beyond applicable notice and cure periods, the non-defaulting party shall use commercially reasonable efforts to mitigate its damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7 <u>Right to Perform</u>. Except as otherwise expressly provided in this Lease, if Tenant shall fail to perform any of Tenant's obligations under this Lease following receipt by Tenant of Landlord's written notice of default, and after the expiration of all applicable cure periods, and if such default is capable of being cured by Landlord, then Landlord, without thereby waiving the default, and in addition to any other right or remedy of Landlord, may perform the same at the expense of Tenant, in which event Tenant shall pay to Landlord the reasonable, out-of-pocket expenses incurred by Landlord in connection with the performance thereof, together with interest at the Default Rate from the date incurred by Landlord until paid by Tenant. Landlord shall have the right, from time to time, without notice, to enter and access the portions of the Premises reasonably necessary to perform the same. Such sum shall be due within thirty (30) days after receipt by Tenant of a statement (including reasonable evidence thereof) of the amount of such expenses.

**ARTICLE 13. <br> MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>Time of the Essence and Force Majeure</u>. Time is expressly declared to be of the essence of this Lease. Except as otherwise expressly provided in this Lease, performance by Landlord or Tenant of its obligations under this Lease will be extended day-for-day by the period of delay caused by Force Majeure; <u>provided</u>, <u>however</u>, that the foregoing shall not excuse the payment of Rent or any other sum of money owing or required to be paid pursuant to this Lease or the financial inability of either party to perform. "**<u>Force Majeure</u>**" shall mean acts of God and circumstances beyond a party's reasonable control which may include: strikes, lockouts, sit-downs, pandemics and epidemics, acts of governmental authorities (including delay in issuing permits or licenses), unusual transportation delays, riots, floods, washouts, explosions, earthquakes, fires, storms, weather (including wet grounds or inclement weather which prevents construction), acts of the public enemy, wars, or insurrections, and which was not foreseeable, or, if foreseeable, could not reasonably have been avoided, provided for or protected against by the party who is obligated to perform. A party whose performance is delayed by Force Majeure must use commercially reasonable efforts to minimize any such delay and any effects of such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <u>Lease Construed as a Whole</u>. The language in all parts of this Lease shall in all cases be construed as a whole according to its fair meaning and neither strictly for nor against Landlord or Tenant. Words used in the singular will include the plural, and vice versa, and any gender will be deemed to include the other, as the context may require. All uses of "applicable law" and words of similar import shall mean "all applicable laws, ordinances, governmental orders or regulations and applicable orders or directions from any public office or body having jurisdiction over such matter". All uses of "including" and words of similar import shall mean "including, without limitation". Unless otherwise specified, the words "hereof," "herein" and "hereunder" and words of similar import when used in this Lease shall refer to this Lease as a whole and not to any particular provision of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 <u>Severability</u>. If any provision of this Lease (other than those relating to payment of Rent) or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 <u>Survival</u>. Each provision of this Lease which may require the payment of money or the performance of obligations by, Tenant after the expiration of the Term hereof or its earlier termination shall survive such expiration or earlier termination. In addition, all indemnity obligations of Landlord and Tenant under this Lease arising during the Term of this Lease shall survive the termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 <u>Amendment</u>. This Lease may be amended only in writing, signed by the party against whom enforcement is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 <u>Notices</u>. Any notice to be given or to be served upon any party hereto in connection with this Lease must be in writing, and may be given by the party or its attorney by nationally recognized courier which provides evidence of delivery and shall be deemed to have been given and received on the next business day after any such notice, properly addressed, with overnight, priority service prepaid, is delivered to such courier. If given otherwise than as provided in the preceding sentence, any such notice shall be deemed to have been given when delivered to and received by the party to whom it is addressed. Such notices shall be given to the parties at the following addresses, or to such other address as either party may from time to time designate by written notice to the other:

Landlord: Ionic Digital Cedarvale LLC

c/o Ionic Digital

2332 Galiano Street, 2nd floor

Coral Gables, FL 33134

Attention: CEO and Legal

with a copy to: Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, NY 10017

Attention: Brian Hirsch

Tenant: c/o Nscale US Holdings Inc.

500 W 2nd Street, Suite 1900 – 525

Austin TX 78701

Attention: Josh Payne and Phoebee Gahan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 <u>Attorneys' Fees</u>. In any proceeding or controversy associated with or arising out of this Lease or a claimed or actual breach thereof, or in any proceeding to recover the possession of the Premises, or in any bankruptcy proceeding or appeal involving this Lease or the Premises, the prevailing party shall be entitled to recover from the other party all costs and reasonable attorneys' fees incurred in connection with such matter; <u>provided</u>, <u>however</u>, that if prior to commencement of a trial, the non-prevailing party offered to pay an amount equal to or in excess of such judgment (determined without reference to costs and attorneys' fees), then the prevailing party shall not be entitled to any award of costs or attorneys' fees associated with such legal action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 <u>Governing Law; Jury Trial</u>. This Lease shall be construed according to and governed by the internal laws (without regard to conflict of laws principles) of the State. THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 <u>Exhibits and Schedule</u>. The Exhibits and Schedule hereto are hereby incorporated by reference herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 <u>Successors and Assigns</u>. All of the provisions of this Lease shall inure to and be binding upon the Landlord and Tenant and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12 <u>Entire Agreement</u>. This Lease contains the final and complete expression of the parties relating in any manner to the leasing, use and occupancy of the Premises and other matters set forth in this Lease. No prior agreements or understanding pertaining to the same shall be valid or of any force. This Lease shall not be modified except in a writing signed by Landlord and Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13 <u>Electronic Signatures; Counterparts</u>. Each party may deliver executed signature pages to this Lease by electronic means to the other (e.g., PDF and DocuSign), and the electronic copy will be deemed to be effective as an original. This Lease may be executed in any number of counterparts, each of which is an original and all of which together comprise the same Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.14 <u>Brokers</u>. Landlord and Tenant each represents to the other that no broker has been involved in this Lease, other than Cushman & Wakefield. Landlord shall be responsible for any and all brokerage commissions payable to Cushman & Wakefield through its separate agreement. Landlord and Tenant agree that if any other claim for brokerage commissions are ever made against Landlord or Tenant in connection with this Lease, all claims shall be handled and paid by the party whose actions or alleged commitments form the basis of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.15 <u>No Waiver Implied</u>. No waiver of any default hereunder shall be implied from any omission by either party to take any action on account of such default if such default persists or is repeated and no express waiver shall affect any default other than the default specified in the express waiver and then only for the time and to the extent therein stated. The acceptance by Landlord of Rent with knowledge of the breach of any of the covenants of this Lease by Tenant shall not be deemed a waiver of any such breach. One or more waivers of any breach of any provision of this Lease shall not be construed as a waiver of any subsequent breach of the same provision. The consent, by Landlord or Tenant, as the case may be, to any act by the other party requiring consent shall not be deemed to waive or render unnecessary Landlord's or Tenant's consent, as the case may be, to any subsequent similar acts by the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.16 <u>Waivers</u>. Tenant waives any claim or defense based upon the characterization of this Lease as anything other than a true lease and as a lease of all of the Premises. Tenant stipulates and agrees (1) not to challenge the validity, enforceability or characterization of the lease of the Premises as a true lease and/or as a single, unseverable instrument pertaining to the lease of all, but not less than all, of the Premises, and (2) not to assert or take or omit to take any action inconsistent with the agreements and understandings herein, including Section 1.6 and Section 13.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.17 <u>Memorandum of Lease</u>. This Lease will not be placed on record by either party. However, Tenant, at Tenant's election and sole cost, may record a memorandum of lease or similar summary document in form and content reasonably acceptable to Landlord, in the applicable land records at any time after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.18 <u>State Specific Provisions</u>. Landlord and Tenant agree that each provision of this Lease and the exhibits to this Lease for determining charges and amounts payable by Tenant (including, but not limited to, provisions regarding Impositions and insurance premiums payable as Additional Rent, if any) is commercially reasonable and, as to each such charge or amount, constitutes a statement of the amount of the charge or a method by which the charge is to be computed for purposes of §93.012 of the Texas Property Code. **TENANT FURTHER VOLUNTARILY AND KNOWINGLY WAIVES (TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW) ALL RIGHTS AND BENEFITS OF TENANT UNDER SUCH TEXAS PROPERTY CODE SECTION, AS IT NOW EXISTS OR AS IT MAY BE AMENDED OR SUCCEEDED IN THE FUTURE.**

**[Signature page follows.]**

**IN WITNESS WHEREOF**, Landlord and Tenant have caused this Lease to be executed and delivered, effective as of the Effective Date.

---

| | |
|:---|:---|
| **<u>LANDLORD</u>**<u>:</u> | **<u>LANDLORD</u>**<u>:</u> |
| IONIC DIGITAL CEDARVALE LLC, | IONIC DIGITAL CEDARVALE LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Anthony McKiernan |
| Name: | Anthony McKiernan |
| Title: | President |

---

[Signature Page to Net Lease Agreement]

---

| | |
|:---|:---|
| **<u>TENANT</u>**<u>:</u> | **<u>TENANT</u>**<u>:</u> |
| NSCALE WARD COUNTY LLC, | NSCALE WARD COUNTY LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Joshua Payne |
| Name: | Joshua Payne |
| Title: | Director & CEO |

---

**<u>Exhibit A</u>**

**Premises**

BEING AN 50.079 ACRE TRACT OF LAND SITUATED IN SECTION 229, BLOCK 34, H. & T.C. RR. CO. SURVEY, ABSTRACT NO. 292, WARD COUNTY, TEXAS, AND BEING ALL OF A CALLED 10.000 ACRE TRACT OF LAND CONVEYED TO BOBBIE M. AVARY, AS RECORDED IN VOLUME 588, PAGE 398, OFFICIAL PUBLIC RECORDS, WARD COUNTY, TEXAS, AND BEING A 14.216 ACRE TRACT OUT OF A CALLED 135 ACRE TRACT OF LAND CONVEYED TO C. S. MAJORS, AS RECORDED IN VOLUME 33, PAGE 592, OFFICIAL PUBLIC RECORDS, WARD COUNTY, TEXAS, AND BEING A 25.863 ACRE TRACT OUT OF A CALLED 135 ACRE TRACT OF LAND CONVEYED TO THERESA WALKER & BOBIE AVARY, AS RECORDED IN VOLUME 511, PAGE 348, OFFICIAL PUBLIC RECORDS, WARD COUNTY, TEXAS. SAID 50.079 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

BEGINNING AT A 1/2" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICES" SET FOR THE SOUTHEAST CORNER OF SAID 50.079 ACRE TRACT, FROM SAID CORNER A 1/2" CAPPED IRON ROD FOUND FOR THE SOUTHEAST CORNER OF SAID SECTION 229 BEARS S 47°22'12" E, A DISTANCE OF 823.42 FEET (TIE). SAID SET 1/2" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICES" BEING CALLED THE POINT OF BEGINNING AND HAVING A TEXAS COORDINATE SYSTEM OF 1983, CENTRAL ZONE (4203), STATE PLANE COORDINATE OF N: 10526729.26, E: 1325676.09 FEET, FOR REFERENCE.

THENCE N 47°22'21" W, A DISTANCE OF 1114.22 FEET TO A 1/2" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICES" SET FOR THE SOUTHWEST CORNER OF SAID 50.079 ACRE TRACT FROM WHICH A FOUND I" IRON ROD BEARS S 42°42'20" W, A DISTANCE OF 2.21 FEET (TIE);

THENCE N 42°42'20" E, PASSING A FOUND 1/2" IRON ROD AT A DISTANCE OF 736.04 FEET AND CONTINUING FORA TOTAL DISTANCE OF 1838.10 FEET TO A 1/2" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICES" SET FOR THE NORTHWEST CORNER OF SAID 50.079 ACRE TRACT;

THENCE S 59°29'33" E, A DISTANCE OF 1139.96 FEET TO A 1/2" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICES" SET FOR THE NORTHEAST CORNER OF SAID 50.079 ACRE TRACT;

THENCE S 42°42'20" W, A DISTANCE OF 2077.50 FEET TO THE POINT OF BEGINNING, CONTAINING 50.079 ACRES OR 2,181,428 SQUARE FEET OF LAND, MORE OR LESS.

Provided that, notwithstanding the above description, the Tenant acknowledges that the Land shall not include the Substation Land, and the Improvements and Premises shall not include the Substation.

**<u>Exhibit B</u>**

Intentionally Omitted

**<u>Exhibit C</u>**

**Work Letter**

Removal of Landlord's Trade Fixtures and Equipment from the Premises, and repair of any damage to the Premises which is caused by such removal.

Create common access driveway from the security gate to the rear of the parcel.

Create common access driveway to Substation yard.

Delivery of vacant possession of the Premises in broom clean condition.

**<u>Exhibit D</u>**

**Rent Schedule**

---

| | | |
|:---|:---|:---|
| <br>**Lease Year** | **Required Power Capacity (234,000 kW)**<br> **per KW per month** | **Expansion Power Capacity (89,000 kW)**<br> **per KW per month** |
| 1 <br>(August 1, 2026 - January 31, 2028) | $[\*\*\*] | $[\*\*\*] |
| 2 <br>(February 1, 2028 - January 31, 2029) | $[\*\*\*] | $[\*\*\*] |
| 3 <br>(February 1, 2029 - January 31, 2030) | $[\*\*\*] | $[\*\*\*] |
| 4 <br>(February 1, 2030 - January 31, 2031) | $[\*\*\*] | $[\*\*\*] |
| 5 <br>(February 1, 2031 - January 31, 2032) | $[\*\*\*] | $[\*\*\*] |
| 6 <br>(February 1, 2032 - January 31, 2033) | $[\*\*\*] | $[\*\*\*] |
| 7 <br>(February 1, 2033 - January 31, 2034) | $[\*\*\*] | $[\*\*\*] |
| 8 <br>(February 1, 2034 - January 31, 2035) | $[\*\*\*] | $[\*\*\*] |
| 9 <br>(February 1, 2035 - January 31, 2036) | $[\*\*\*] | $[\*\*\*] |
| 10 <br>(February 1, 2036 - January 31, 2037) | $[\*\*\*] | $[\*\*\*] |

---

## Exhibit 10.17

**Exhibit 10.17**

**SECOND AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT AND CONFIDENTIALITY AGREEMENT**

This Second Amended and Restated Professional Services Agreement is made on November 24, 2024 (the "Effective Date") between Ionic Digital, Inc. ("Client"), and Laura Schnaidt ("Consultant"). Client and Consultant are sometimes collectively referred to herein as the "Parties" and individually as a "Party."

WHEREAS, the Parties entered into a Professional Services Agreement on October 26, 2024 (the "Original Agreement") and amended and restated the Original Agreement on November 1, 2024 (the "Amended and Restated Agreement") in order to change Consultant's scope of services and title from legal consultant to General Counsel;

WHEREAS, the Parties wish to amend and restate the Amended and Restated Agreement in its entirety in order to reflect the increased level of responsibilities and scope of services that Consultant is undertaking by increasing Consultant's Fees;

NOW, THEREFORE, based upon the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties to amend and restate the Amended and Restated Agreement in its entirety and agree as follows:

**1. TERM.**

The Agreement will commence as of the Effective Date and will terminate in accordance with Section 7.

**2. SERVICES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Services. Consultant shall serve as the Client's General Counsel as further outlined in Exhibit A to this Agreement (the "Services"). In rendering such Services, Consultant will use the requisite time and effort necessary to appropriately perform the Services, and carry out all functions customarily required of a General Counsel, and Consultant shall observe and act at all times in a manner consistent with industry standards, any applicable laws, or governmental regulations. Consultant shall also comply with all rules and procedures communicated to her by the Client, including those related to security and confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Cooperation of Client. Client agrees to comply with all reasonable requests of Consultant and shall provide Consultant with access to all documents, resources and facilities as may be reasonably necessary for the performance of the Services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Location of Performance. Consultant shall work remotely unless periodically asked to travel, in which case, Consultant shall travel in compliance with Client's travel policy. Client shall provide Consultant with access to its electronic materials, information and systems to the extent necessary for the performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Exclusions from Services. The Parties acknowledge and agree that Consultant is not a registered investment advisory firm or a law firm. Consultant shall not be obligated to provide services that are outside the scope of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Modification of Services. No changes to the Services will be authorized by Consultant, and Consultant shall have no obligation to perform any additional or modified Services, until such change is agreed to in writing and signed by Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. Subcontractors and Consultants. Client acknowledges and agrees that it may request that Consultant use its subcontractors and consultants to perform some of the Services to be provided under this Agreement. In the event Consultant utilizes subcontractors or consultants to perform any of the Services, Consultant shall not be responsible under this Agreement to Client for the failure of Client's third-party subcontractors and consultants to perform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. No Exclusivity; Dedication of Time. This consulting arrangement does not create an exclusive relationship and Client is free to retain other consultants of its choosing. Correspondingly, Consultant has other clients that rely on her for general matters, and Client agrees that Consultant may represent, perform services for, and contract with other clients, persons, or companies as Consultant, in her sole discretion but subject to her obligations under applicable professional responsibility law, sees fit, including through companies she owns and manages. The Parties agree that Consultant shall dedicate a substantial amount of her time and efforts (approximately 80%) to performing the Services for Client, provided however, that this Agreement shall not restrict her from performing services for other clients or operating companies she owns and manages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. Registrations, Permits and Licenses. Client agrees, at its own expense, to operate in full compliance with all governmental laws, regulations and requirements applicable to the duties conducted hereunder. Unless otherwise specified in writing and agreed to by Consultant, it shall be Client's responsibility to pay for any licenses, permits, and registrations as may be necessary for Consultant's performance of the Services under this Agreement.

**3. CONSULTING FEE AND EXPENSES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Consulting Fee. In consideration for the performance of the Services, Client shall pay Consultant a consulting fee (the "Consulting Fee") of $40,000 per month (the "Monthly Rate"). The Monthly Rate is payable in arrears promptly upon receipt by Client of Consultant's monthly invoice. Client agrees that Consultant may resign or suspend work if satisfactory arrangements are not made to pay amounts outstanding for more than 45 days. The Consulting Fee is neither refundable nor contingent upon any conditions other than performance of the Services, and is payable in full each month. Consultant has the right to terminate this Agreement upon any failure of Client to promptly pay the Consulting Fee in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. No Provision of Facilities or Equipment; Reimbursable Expenses. Except as otherwise provided in this Section 3.2, Consultant shall provide at her own expense her office or place of business, any necessary equipment, office supplies, materials, appropriate assistance from other persons, and any other services needed for the performance of the Services under this Agreement. Fees and expenses, such as for travel, search and filing fees and overnight mail, will be added to the monthly invoice. The foregoing notwithstanding, Client shall reimburse Consultant for all reasonable and necessary out-of-pocket travel expenses, if any, and any other pre-approved expenses, in each case, incurred by Consultant in connection with the Services. Consultant shall submit to the Client, within ten (10) days following the last day of each calendar month during the Term, an account of all reimbursable expenses incurred by Consultant and/or her personnel during the prior calendar month. Client shall pay Consultant for the full amount of all pre-approved expenses within fourteen (14) days following Client's receipt of such account.

**4. TAXES.**

Consultant hereby represents and warrants that Consultant is solely and exclusively responsible for paying all federal, state and/or local taxes and withholdings with respect to any Monthly Fees Consultant receives as a result of the performance of the Services. Consultant acknowledges that Client is not withholding any taxes from the payments made to Consultant under this Agreement, and Client shall report all compensation paid to Consultant hereunder on an IRS Form 1099.

**5. INDEMNIFICATION; LIMITATION OF LIABILITY; ACTIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Indemnification by Client. Client will indemnify and hold Consultant harmless against all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, fines, penalties, costs, and expenses, including reasonable attorneys' fees (collectively "Damages") asserted against, imposed upon or incurred by Consultant by reason of, resulting from, or in connection with: (i) third party damages resulting from the breach or failure to perform any obligation, covenant, or agreement made or given by Client in this Agreement; and (ii) any claim by a thirty-party for bodily injury, death, or property damage caused by the negligent, reckless, or intentional acts or omissions of Client or its employees, agents, or anyone for whom Client is responsible in connection with the performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. Exculpation. To the fullest extent permitted by applicable law, the Consultant shall not be liable to Client for any action taken or omitted to be taken by Consultant in good faith and in a manner reasonably believed to be in or not opposed to the best interests of Client, except for Damages found in a final determination by a court of competent jurisdiction to have arisen from Consultant's breach of this Agreement, fraud, gross negligence, or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE UNDER THIS AGREEMENT TO THE OTHER PARTY FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, STATUTORY, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF USE, LOSS OF TIME, INCONVENIENCE, LOST BUSINESS OPPORTUNITIES, DAMAGE TO GOOD WILL OR REPUTATION, AND COSTS OF COVER, REGARDLESS OF WHETHER SUCH LIABILITY IS BASED ON BREACH OF CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR SUCH DAMAGES COULD HAVE BEEN REASONABLY FORESEEN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. Actions. No action shall be brought for any claim relating to or arising out of this Agreement more than one (1) year after the accrual of such cause of action, except for money due on an open account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. D&O Insurance Coverage. Client, to the fullest extent permitted by applicable law, will use reasonable best efforts to cause consultant to be an insured party under Client's existing directors and officers insurance policy (including, without limitation, to the extent permitted by applicable law, identifying her as an officer of Client for this purpose).

**6. CONFIDENTIAL INFORMATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Confidential Information. Consultant acknowledges and agrees that as a result of the Services to be provided hereunder, it may acquire certain confidential and proprietary information concerning or relating to Client, or Client's parent, subsidiary or affiliate companies (collectively, the "Client Group"), including, without limitation, business and financial information and records; business methods and practices; investment strategies and processes; technological methods; business affiliates; suppliers and vendors; procedures and operational methods; inventions and developments; contracts; information concerning employees, partners, and contractors including identities, contact information, compensation, or other terms of engagement, and performance; and any other information regarding the Client Group's business that has not been intentionally made known to the public, all of which is confidential and in some instances constitute trade secrets (the "Confidential Information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Use of Confidential Information; Standard of Care. Consultant shall maintain the Confidential Information in strict confidence. Consultant shall use the same degree of care as she uses with respect to her own similar information, but no less than a reasonable degree of care, to protect Client's Confidential Information from any unauthorized use, disclosure, dissemination, or publication. Consultant shall only use the Confidential Information in furtherance of her performance of her obligations under this Agreement, and agrees not to use Client's Confidential Information for any other purpose or for the benefit of any third party, without the prior written approval of Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Exceptions. Confidential Information does not include information that: (i) was lawfully in Consultant's possession before receipt from Client; (ii) at or after the time of disclosure, becomes generally available to the public other than through any act or omission of Consultant; (iii) is developed by Consultant independently of any Confidential Information it receives from Client; (iv) Consultant receives from a third party free to make such disclosure without, to the best of Consultant's knowledge, breach of any legal or contractual obligation; or (v) is disclosed by Consultant with Client's prior written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Required Disclosures. If Consultant is confronted with legal action to disclose Confidential Information received under this Agreement, Consultant shall, unless prohibited by applicable law or regulation, provide prompt written notice to Client to allow Client an opportunity to seek a protective order or other relief it deems appropriate, and Consultant shall reasonably assist Client in such efforts. If disclosure is nonetheless required, Consultant shall limit her disclosure to only that portion of the Confidential Information that Consultant is advised by her legal counsel must be disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. Unauthorized Use or Disclosure of Confidential Information. In the event Consultant discovers that any Confidential Information has been used, disseminated or accessed in violation of this Agreement, it will immediately notify Client, take all commercially reasonable actions available to minimize the impact of the use, dissemination or publication, and take all necessary steps to prevent any further breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. Return of Confidential Information; Survival. Consultant shall promptly return or, at Client's option, certify destruction of all copies of Confidential Information at any time upon Client's request or within fourteen (14) business days following the expiration or earlier termination of this Agreement. However, Consultant's obligation under this Section 6 shall not extend to information that is already in the public domain at the time of disclosure to Consultant; or, following disclosure, becomes generally known or available through no act or omission on the part of Consultant in violation of this Agreement. The provisions of this Section 6 shall survive for a period of two (2) years from the date of termination of Consultant's engagement under this Agreement.

**7. TERMINATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Termination by Mutual Agreement. This Agreement is "at will" and the Parties may terminate the Agreement immediately upon mutual agreement of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Obligations Upon Termination. Except as otherwise provided in this Agreement, upon the expiration or termination of this Agreement for any reason and at any time, all relationships and duties between Consultant and Client shall be terminated; provided, however, that Consultant shall perform all reasonable and necessary tasks to provide for an orderly transition of Consultant's work to Client or to another consultant or employee designated by Client.

**8. RELATIONSHIP OF THE PARTIES.**

The Parties hereto agree that the Services rendered by Consultant in the fulfillment of the terms and obligations of this Agreement shall be as an independent contractor and not as an employee, and with respect thereto, Consultant is not entitled to the benefits provided by Client to its employees including, but not limited to, group insurance and participation in Client's employee benefit plans. Consultant shall be responsible for payment of all taxes arising out of Consultant's activities in accordance with this Agreement, including by way of illustration but not limitation, federal and state income tax, social security tax, unemployment insurance taxes, and any other taxes or fees as required.

**9. NO AUTHORITY TO BIND CLIENT.**

Consultant shall be entitled to represent to third parties that Consultant serves as a consultant to Client and/or as Client's General Counsel, and, if so instructed by the Client, is authorized to enter into discussions with such third parties on Client's behalf to the extent so authorized. However, except as expressly outlined in Exhibit A, Consultant shall have no authority to make any commitments or enter into any agreements whatsoever on behalf of Client or to bind Client in any way.

**10. GOVERNING LAW AND VENUE.**

This Agreement will be governed by and interpreted in accordance with the laws of the State of New York, without giving effect to the principles of conflicts of law of such state. The Parties hereby agree that any action arising out of this Agreement shall be brought solely in a court of competent jurisdiction in and for New York County, New York. Both Parties hereby submit to the exclusive jurisdiction and venue of any such court (and of the appropriate appellate courts) and waive any objection to jurisdiction or venue laid therein.

**11. LEGAL FEES; COLLECTION EXPENSES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Legal Fees. If either Party incurs any legal fees associated with the enforcement of this Agreement or any rights under this Agreement, the Parties shall be responsible for their own attorney's fees and any court, arbitration, mediation, or other litigation expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. Collection Costs. If Consultant incurs any costs, expenses, or fees, including reasonable attorney's fees and professional collection services fees, in connection with the collection or payment of any amounts due it under this Agreement, Client agrees to reimburse Consultant for all such costs, expenses and fees.

**12. CUMULATIVE REMEDIES.**

All rights and remedies of the Parties under this Agreement shall be cumulative and the exercise of any one right or remedy shall not bar the exercise of any other right or remedy.

**13. ASSIGNMENT; THIRD PARTY BENEFICIARIES.**

This Agreement shall be binding upon and inure to the benefit of the successors, assigns and legal representatives of the Parties. A Party may not, without written consent of the other Party, assign this Agreement to a purchaser or transferee.

**14. SEVERABILITY.**

If any provision or portion of this Agreement shall be rendered by applicable law or held by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions or portions shall remain in full force and effect.

**15. HEADINGS; CONSTRUCTION.**

The headings and captions appearing in this Agreement have been inserted for the purposes of convenience and ready reference, and do not purport to and shall not be deemed to define, limit or extend the scope or intent of the provisions to which they appertain. This Agreement is the result of negotiations between the Parties and their counsel. Accordingly, this Agreement shall not be construed more strongly against either Party regardless of which Party is more responsible for its preparation, and any ambiguity that might exist herein shall not be construed against the drafting Party.

**16. SURVIVAL.**

In the event of termination of this Agreement, the provisions of Sections 4-7 hereof shall survive the termination of this Agreement and shall continue to apply in accordance with their terms.

**17. COUNTERPARTS.**

This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument, without necessity of production of the others. An executed signature page delivered via electronic transmission or an electronic signature shall be deemed as effective as an original executed signature page.

**18. NOTICES.**

All notices or other communications required under this Agreement shall be in writing and shall be deemed effective when received and made by a method of communication that provides a receipt:

If to Consultant, to:

Attn: Laura Schnaidt

140 Hope Street, Apt 3A, Brooklyn, NY 11211

Laura@paradoxprincipals.com

If to Client, to:

Ionic Digital, Inc.

Attn: John Penver, Interim CEO and CFO

jpenver@ionicdigital.com

**19. WAIVER.**

No waiver of any term or right in this Agreement shall be effective unless in writing, signed by an authorized representative of the waiving Party. The failure of either Party to enforce any provision of this Agreement shall not be construed as a waiver or modification of such provision, or impairment of its right to enforce such provision or any other provision of this Agreement thereafter.

**20. ENTIRE AGREEMENT; MODIFICATION.**

This Agreement, and any exhibits attached hereto, are the entire agreement between the Parties with respect to the subject matter hereof, and supersedes any prior agreement or communications between the Parties, whether written, oral, electronic or otherwise. Each Party acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not contained in this Agreement, and that no other agreement, statement, or promise not contained in this Agreement will be valid or binding. No change, modification, amendment, or addition of or to this Agreement or any part thereof shall be valid unless in writing and signed by authorized representatives of the Parties.

[signatures follow]

In witness whereof, the Parties hereto have executed this Agreement on the date set forth below.

**IONIC DIGITAL INC.**

Name: <u>John Penver</u> <br> Title: Interim Chief Executive Officer and Chief Financial Officer <br> Date: 2024-11-24

**CONSULTANT**

---

| | |
|:---|:---|
| Name: | <u>/s/ Laura Schnaidt</u> |
|  | Laura Schnaidt |
| Date: | 2024-11-24 |

---

**<u>Exhibit A</u>**

**<u>General Counsel Role Description</u>**

The general counsel will be responsible for ensuring that firm business strategies, policies, and programs are developed and applied in full recognition of all legal implications and risks. The general counsel will act as the manager of the firm's Legal Department while providing legal services as a practicing counsel, and managing relationships and matters with outside counsels. The general counsel will ensure that the legal affairs of the firm are attended to in an effective and efficient manner and that all legal records are properly compiled and securely maintained for the required time period. The general counsel reports and is responsible to the Board of Directors and executive management.

## Exhibit 10.18

**Exhibit 10.18**

![](ex10-18_001.jpg)

**CLIENT SERVICE AGREEMENT**

THIS CLIENT SERVICE AGREEMENT (this "***Agreement***") is made effective as of the 2<sup>nd</sup> of September, 2025, by and between ZRG INTERIM SOLUTIONS, a division of ZRG PARTNERS, LLC, a Delaware corporation with its principal address at 365 West Passaic Street, Suite 465, Rochelle Park, New Jersey 07662 ("***ZRG***"), and Ionic Digital with its principal address in ADDRESS ("***CLIENT***").

WHEREAS, ZRG is in the business of locating for clients, according to their specifications, experienced personnel to provide services to such clients on an interim or project basis (hereinafter used in the plural to refer to one or more of such personnel and defined as "***Personnel***");

WHEREAS, from time to time, CLIENT desires to engage ZRG to locate such Personnel and to utilize the services of such Personnel through ZRG; and

WHEREAS ZRG and CLIENT wish to enter into an agreement setting forth the terms and conditions pursuant to which ZRG will locate and provide such Personnel to provide services to CLIENT.

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, ZRG and CLIENT agree as follows:

**1.** **Location and Qualifications of Personnel**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon CLIENT'S request, ZRG will endeavor to locate Personnel
for CLIENT according to the qualifications, experience and project requirements provided to ZRG. The specific work to be performed by
each Personnel providing services to CLIENT shall be set forth in a Statement of Services for such Personnel in the form attached hereto
as Appendix A (each, a "  ***Statement of Services*** "). In light of the fact that in all cases CLIENT will have the
opportunity to interview all Personnel presented by ZRG prior to the commencement of any services for CLIENT by such personnel, (i) ZRG
shall not have any liability to CLIENT if such Personnel are determined by CLIENT not to meet its requirements, and (ii) CLIENT will
not be relieved of the obligation to make payments to ZRG for the services provided by such Personnel up to the time that the services
of such Personnel are terminated by CLIENT. If at any time the services being provided to CLIENT by Personnel are unsatisfactory to CLIENT,
then in such event CLIENT will promptly notify ZRG in order to afford ZRG the opportunity to replace such Personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of ZRG with respect to Personnel presented
to CLIENT for consideration are expressly limited to performance of a background check on such Personnel presented to CLIENT to ensure
that such Personnel (x) do not have any felony convictions during the immediately preceding seven-year period in any states, and (ii)
are legally authorized to work in the United States. With respect to such Personnel, ZRG will maintain all forms necessary to be in compliance
with the Immigration Reform and Control Act of 1986.

**2.** **Services Provided under the Statement of Services**. For
each Personnel who will be providing services to CLIENT pursuant to this Agreement, CLIENT will issue, and ZRG will acknowledge and accept,
a Statement of Services referencing its incorporation of the terms and conditions of this Agreement. In the event of a conflict between
the terms of this Agreement and the terms of a Statement of Services, the terms of this Agreement shall control unless the Statement
of Services specifically (and not generally) identifies the conflicting terms in this Agreement and explicitly states that such terms
shall not apply but shall instead be superseded by the Statement of Services. Each Statement of Services will be signed by an authorized
representative of CLIENT.

Upon expiration of a Statement of Services, to the extent that any services provided by one or more Personnel are thereafter provided on the same or a different project, such services will be provided under the terms of this Agreement and under the payment rate(s) applicable to each such Personnel as set forth in the most recent Statement of Services covering that Personnel until such time as a new Statement of Services is issued by CLIENT and acknowledged and accepted by ZRG.

![](ex10-18_001.jpg)

**3.** **Acceptance and Provision of Services**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Personnel providing services to CLIENT shall report the
results of their work, to the extent required by CLIENT, to CLIENT'S Project Manager or other agent designated by CLIENT. CLIENT'S
Project Manager or other agent designated by CLIENT shall review for approval for each bi-weekly period (i.e., once every two weeks),
the time records of Personnel on a form provided by ZRG to such Personnel and submitted to CLIENT. CLIENT'S approval of such time
records (including, without limitation, costs of any applicable overtime rates, travel, per diem and other costs stated thereon) shall
be evidenced by its signature thereon and such approval shall constitute acceptance of the work performed by such Personnel and CLIENT'S
agreement to pay ZRG as stated herein. Acceptance by CLIENT of Personnel time records shall not be unreasonably withheld or delayed,
and any refusal to accept such time records shall be noted on the time record for the relevant bi-weekly period with a written explanation
of the reasons that the work performed was not acceptable. Failure to so note such refusal shall constitute acceptance by CLIENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) CLIENT will at all times oversee and direct the services to
be provided by all Personnel providing services to CLIENT hereunder, and, therefore, ZRG makes no representations or warranties to CLIENT,
whether express, implied, or otherwise, including warranties of quality, competence, accuracy or suitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) CLIENT will provide to all Personnel providing services to CLIENT
hereunder, at CLIENT'S sole cost and expense, all work materials, workspace, equipment and other amenities necessary in order for
such Personnel to provide the services required by CLIENT and as set forth in the Statement of Services.

**4.** **Billing and Payment**. ZRG will bill CLIENT through invoices
issued to CLIENT in arrears on a bi-weekly basis for services provided by Personnel and associated costs,. Unless otherwise set forth
in the applicable Statement of Services, the amount payable by CLIENT to ZRG will equal the product of (x) the billing rate of the applicable
Personnel, multiplied by (y) the number of hours worked by the applicable Personnel during the applicable billing period, plus any associated
costs incurred during the applicable billing period. All invoices issued by ZRG to CLIENT will be due net 15 days, unless some other
time has been specifically agreed to in the applicable Statement of Services, according to the rates and terms set forth in the applicable
the Statement of Services. CLIENT shall contact ZRG within five days following receipt of an invoice if there are any inconsistencies
or inaccuracies on the invoice. Late invoicing by ZRG shall not affect the obligation of CLIENT to pay for the services covered by that
invoice. If payment is not received by ZRG within 30 days of receipt of the applicable invoice by CLIENT, ZRG reserves the right to charge
and collect a late fee in an amount equal to the lesser of (i) one percent per month on the outstanding balance, or (ii) the maximum
amount permitted by law. The Billing Rate shown on the Statement of Services is based on the work being performed within one year. Should
an engagement extend beyond 12 months, the Billing Rate will be increased at the rate of 5% annually on the anniversary of the Project
Start Date shown in the Statement of Services.

![](ex10-18_001.jpg)

**5.** **Personnel not Employees of CLIENT**. ZRG and CLIENT acknowledge
and agree that: (i) ZRG is an independent contractor of CLIENT; (ii) all Personnel providing services to CLIENT under this Agreement
will either be employees of, or independent contractors retained by, ZRG; (iii) for purposes of FICA, FUTA and income tax withholding,
all taxes and withholding obligations with respect to all Personnel providing services to CLIENT under this Agreement will be the obligation
of ZRG and/or such Personnel; (iv) CLIENT will not have any responsibility to withhold any amounts on the fees and expenses paid to ZRG
pursuant to this Agreement; and (v) for purposes of any pension plan or health benefit plan maintained by CLIENT for its employees, the
Personnel providing services to CLIENT under this Agreement will not be deemed to be employees of CLIENT. This Agreement shall not be
construed to create any association, partnership, joint venture, employment, or agency relationship between CLIENT and ZRG and/or Personnel
for any purpose.

**6.** **Termination of Services of Personnel**. With respect to
Personnel providing services to CLIENT through ZRG pursuant to this Agreement, CLIENT will provide ZRG with notice not less than 14 days
prior to termination of any services of any Personnel, regardless of whether such termination comes before, is coincident with, or follows
the duration date set forth in the applicable Statement of Services covering the services of such Personnel. Notwithstanding the foregoing,
CLIENT may terminate the services of any Personnel for cause immediately upon notice to ZRG. In the event, ZRG plans to terminate or
reassign any Personnel providing services under this Agreement on behalf of CLIENT, ZRG will provide CLIENT with notice not less than
14 days prior to such termination or reassignment. If any Personnel providing services under this Agreement have terminated their relationship
with ZRG, and whether such termination is in violation of such Personnel's agreement with ZRG, ZRG shall provide CLIENT with prompt
notice of such termination.

**7.** **Intellectual Property Rights**. ZRG acknowledges and agrees
that all material, documentation, deliverables and other tangible expressions of information, whether in final production or draft, that
result from any work performed by any Personnel providing services to CLIENT under this Agreement, shall be deemed to be works made-for-hire
and all rights, title and interest, including any copyright, patent rights and all other intellectual property rights, shall belong exclusively
to CLIENT unless otherwise agreed upon in writing by both parties or by CLIENT and such Personnel, as appropriate.

**8.** **Confidentiality**. ZRG will not disclose to any party any
information learned by ZRG that that is treated as confidential and proprietary by the CLIENT including without limitation the existence
and terms of this Agreement, trade secrets, technology, and information pertaining to business operations and strategies, customers,
pricing, marketing, finances, sourcing, personnel, or operations of the CLIENT, any member of its Group, or their respective suppliers
or customers, in each case whether spoken, written, printed, electronic, or in any other form or medium (collectively, the "Confidential
Information"). ZRG agrees to treat all Confidential Information as strictly confidential, not to disclose Confidential Information
or permit it to be disclosed, in whole or part, to any third party without the prior written consent of the CLIENT in each instance,
and not to use any Confidential Information for any purpose whatsoever, directly or indirectly, either individually or with others, except
as specifically required in the performance hereunder. ZRG shall notify the CLIENT immediately in the event you become aware of any loss
or unauthorized disclosure of any Confidential Information.

Confidential Information shall not include information that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. is or becomes generally available to the public other than through
your breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. is rightfully in your possession at the time of its initial
disclosure by the CLIENT, without restriction as to use or disclosure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. is communicated to you by a third party that had no confidentiality
obligations with respect to such information.

![](ex10-18_001.jpg)

CLIENT may request that the Personnel covered by this Agreement execute a separate agreement not to disclose CLIENT'S confidential information, and in such case ZRG will have no obligation or responsibility, directly or indirectly, with respect to the performance or breach of such separate agreement by such Personnel. CLIENT will (i) not request from the Personnel providing services under this Agreement, any information regarding the rates and/or other terms of remuneration agreed to between ZRG and such Personnel, (ii) not induce such Personnel to provide such information, (iii) not disclose or permit to be disclosed to such Personnel, directly or indirectly, any information regarding the rates or other terms of remuneration agreed to between CLIENT and ZRG, and (iv) promptly notify ZRG if such rates or other terms are disclosed to any Personnel.

Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. Unless prohibited by applicable law, ZRG agrees to provide written notice of any such order to an authorized officer of the CLIENT within two (2) day of receiving such request or order, but in any event sufficiently in advance of making any disclosure to permit the CLIENT to contest the request or order or seek confidentiality protections, as determined in the CLIENT's sole discretion and you agree to cooperate with the CLIENT in preventing, limiting or otherwise contesting such disclosure.

**9.** **Contracting of Personnel by CLIENT**. During the term of
this Agreement and for a period of 12 months following termination thereof for any reason whatsoever (the "  ***Restricted Period*** "),
CLIENT will not, directly or indirectly, other than through ZRG, solicit for hire, contract with, employ, engage, retain or receive the
services of, any Personnel covered by a Statement of Services or otherwise identified to CLIENT by ZRG (each a "  ***Restricted Person*** "). Notwithstanding the foregoing, CLIENT may directly employ/engage/retain any such Personnel as its employee/consultant
if CLIENT, at least 15 days in advance of such employment/engagement/retention, (i) provides ZRG with notice of a request to employ/engage/retain
such Personnel other than through ZRG (i.e., either directly or through an affiliate or third party), which request may be granted or
withheld in the sole discretion of ZRG, and (ii) agrees to and does pay a placement fee in an amount equal to 30% of such employed/engaged/retained
Personnel's first-year compensation calculated on an annualized basis, including, for purposes of clarification, any target or
guaranteed bonus payment (the "  ***Placement Fee*** "). For purposes of this Section 9 only, the term "CLIENT"
will be deemed to include any affiliates, subsidiaries, partners, successors, assignees and/or customers of CLIENT.

Notwithstanding the foregoing, if CLIENT employs, engages or retains any Restricted Person at any time during the Restricted Period without the consent of ZRG and the payment of the corresponding Placement Fee, then CLIENT shall pay to ZRG, as liquidated damages, an amount equal to 100% of such employed/engaged/retained Personnel's first-year compensation calculated on an annualized basis. The Placement Fee payable by CLIENT to ZRG pursuant to this Section 9 shall be paid by CLIENT to ZRG within ten days following the first day of employment/engagement/retention of such Personnel.

---

| | |
|:---|:---|
| **10** | **Insurance**. During the term of this Agreement, ZRG will procure and maintain in effect the following insurance coverage: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) General Liability Insurance - Personal injury and property damage,
combined single limit –$1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Worker's Compensation Insurance - Required by state law;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Automobile Insurance - Bodily injury and property damage, combined
single limit – $1,000,000.

Upon request, ZRG will provide CLIENT with certificates of insurance according to industry standards.

![](ex10-18_001.jpg)

**11.** **Limitations on Liability**. In connection with the services
to be provided by ZRG generally under this Agreement and specifically by a particular Personnel, in no event shall ZRG be liable to CLIENT
or to any third party for damages to any property or person in an amount greater than the amount paid by CLIENT in connection with the
performance of such services by such Personnel whose actions or omissions are the basis for such damage claim, *provided, however*,
that ZRG shall not be liable for any damages whatsoever caused by any acts or omissions beyond its control or not due to its fault, or
for any special or consequential damages, loss of profits, interest, penalties or fines; and *provided further*, that if CLIENT
requests or directs that ZRG perform an act or omit the performance of an act, and if ZRG performs or omits the performance of such act
as directed or requested, or if CLIENT approves, affirms or ratifies the performance or omission of any act of ZRG, then notwithstanding
anything to the contrary contained in this Agreement, neither CLIENT nor any third party shall have any claim against ZRG in connection
with the performance or omission of such act. In the event that ZRG performs or omits to perform any act that may support a claim by
CLIENT for damages and/or liability, CLIENT shall give prompt notice to ZRG upon its initial receipt of information that could reasonably
support such claim, and failure to give such timely notice by CLIENT shall constitute a waiver of such claim. CLIENT acknowledges and
agrees that the limitation on liability set forth in this Section 11 is a material inducement to cause ZRG to enter into this Agreement
and to provide the services to be performed by ZRG hereunder and that but for such limitation ZRG would not enter into this Agreement.

**12.** **Termination of this Agreement**. This Agreement will continue
in effect until terminated by CLIENT or ZRG at any time upon the terminating party giving not less than 30 days' notice to the
other party. Such termination of this Agreement shall not affect any Personnel providing services hereunder unless such Personnel are
terminated in accordance with the terms of Section 6 above.

**13.** **Assignment; Binding Effect**. Neither this Agreement nor
any interest hereunder may be assigned or otherwise transferred by either party to any third party without the prior written consent
of the other party, which consent shall not be unreasonably withheld or delayed, and any assignment in violation of the foregoing will
be void *ab initio*. Notwithstanding the foregoing, this Agreement, any outstanding Statement of Services and the rights and obligations
set forth herein and therein, may be transferred and assigned to any successor in interest to all or substantially all of the business
and assets of either party, whether pursuant to an asset acquisition, merger or otherwise, upon notice to the other party. This Agreement
shall be binding upon and inure to the benefit of the successors and permitted assigns of ZRG and CLIENT.

**14.** **Notices**. Any requirement to "notify," or
for "notice" or "notification," in connection with the subject matter of this Agreement shall be in writing and
shall be effective when delivered personally or by Federal Express or other nationally recognized overnight courier to the party for
whom intended, or five days following deposit of the same into the United States mail, certified mail, return receipt requested, first
class postage prepaid, addressed to such party at the address set forth above in the first paragraph of this Agreement. Either party
may designate a different address by notice to the other given in accordance herewith.

**15.** **Severability**. If any term or provision of this Agreement
shall be found to be illegal or otherwise unenforceable, the same shall not invalidate the whole of this Agreement, but such term or
provision shall be deemed modified to the extent necessary to render such term or provision enforceable, and the rights and obligations
of the parties shall be construed and enforced accordingly, preserving to the fullest permissible extent the intent and agreements of
the parties as set forth herein.

![](ex10-18_001.jpg)

**16.** **Complete Agreement and Amendment; Counterparts**. This
Agreement and any Statement of Services executed hereunder contain the entire agreement between the parties hereto with respect to the
matters covered herein. CLIENT acknowledges that it is entering into this Agreement solely on the basis of the agreements and representations
contained herein. This Agreement shall not be modified in any way except in writing signed by both parties and stating expressly that
it constitutes a modification of this Agreement. This Agreement may be executed in counterparts, including by facsimile, and each such
counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.

**17.** **Governing Law; Jurisdiction; Waiver of Jury Trial**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. Construction and interpretation of this
Agreement shall be governed by the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Jurisdiction</u>. All actions, suits or proceedings arising
out of this Agreement shall be brought in United States District Court for the Southern District of New York or in any court of the State
of New York located in the Borough of Manhattan in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the courts identified in the preceding sentence in any action, suit or proceeding arising out of or relating to this Agreement and
agrees that any such action, suit or proceeding shall be brought only in such court. Each party hereby irrevocably waives, to the fullest
extent permitted by law, any objection that such party may now or hereafter have to the laying of the venue of any such action, suit
or proceeding brought in such a court and any claim that any such action, suit or proceeding brought in such a court has been brought
in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>WAIVER OF JURY TRIAL</u>. EACH PARTY ACKNOWLEDGES AND AGREES
THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH
SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT
OF OR RELATING TO THIS AGREEMENT.

![](ex10-18_001.jpg)

IN WITNESS HEREOF, the parties have caused this Client Service Agreement to be executed by their authorized agents as of the date written above.

---

| | | | |
|:---|:---|:---|:---|
| **ZRG INTERIM SOLUTIONS, A DIVISION OF ZRG PARTNERS, LLC** | **ZRG INTERIM SOLUTIONS, A DIVISION OF ZRG PARTNERS, LLC** | **CLIENT: Ionic Digital** | **CLIENT: Ionic Digital** |
| By: | /s/ Brett Magid | By: | /s/ Anthony McKiernan |
|  | Signature |  | Signature |
| Name: | Brett Magid | Name: | Anthony McKiernan |
| Title: | Managing Director | Title: | Chief Executive Officer |
| Date: | 9/5/2025 \| 11:33 AM PDT | Date: | 9/10/2025 \| 9:14 AM EDT |

---

![](ex10-18_001.jpg)

**Appendix A**

***STATEMENT OF SERVICES***

 ****

In accordance with, and incorporating by reference all the terms and conditions of, the Client Service Agreement entered into between ZRG INTERIM SOLUTIONS, a division of ZRG PARTNERS, LLC ("***ZRG***"), and Ionic Digital ("***CLIENT***") dated September 2, 2025 (the "***Client Service Agreement***"), it is agreed as follows:

---

| | |
|:---|:---|
| ***Client Name:*** | Ionic Digital |
| ***Client Billing Address:*** |  |
| ***Address where Services are to be Provided <br> (if Different than Billing Address):*** | ***N/A*** |
| ***Client Project Manager:*** |  |
| ***Telephone Number:*** |  |
| ***Invoices****: Need name(s) and email address(es) to send invoices to each billing period.* |  |
| ***Project Start Date:*** | September 10, 2025 |
| ***Anticipated Length of Project:*** | 3-4 months, as needed |
| ***Description of Project:*** | Interim CFO |
| ***ZRG Personnel Assigned:*** | Jim Gallagher |
| ***Billing Rate:*** | $19,000 per week |
| ***Travel Time Rate:*** | N/A |
| ***Expenses:*** | If applicable, expenses are a direct pass-through of any approved travel expenses (including airfare, transportation, lodging, meals, etc.) on behalf of CLIENT. Personnel will follow T & E guidelines of CLIENT as directed by CLIENT. |
| ***Business travel expenses to include travel time:*** | If applicable, business travel will include travel time. Travel time is equal to air travel time plus two hours and will be billed at one-half the hourly bill rate. |

---

---

| | | | |
|:---|:---|:---|:---|
| **Issued by CLIENT: Ionic Digital** | **Issued by CLIENT: Ionic Digital** | **Acknowledged and Accepted by <br> ZRG INTERIM SOLUTIONS, A DIVISION OF ZRG PARTNERS, LLC:** | **Acknowledged and Accepted by <br> ZRG INTERIM SOLUTIONS, A DIVISION OF ZRG PARTNERS, LLC:** |
| Signature: | /s/ Anthony McKiernan | Signature: | /s/ Brett Magid |
| Name: | Anthony McKiernan | Name: | Brett Magid |
| Title: | Chief Executive Officer | Title: | Managing Director |
| Date: | 9/10/2025 \| 9:14 AM EDT | Date: | 9/5/2025 \| 11:33 AM PDT |

---

## Exhibit 10.19

**Exhibit 10.19**

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this "**Agreement**"), is made as of June 26, 2026, by and between Ionic Digital Inc., a Delaware corporation (the "**Company**"), and the undersigned purchaser (the "**Purchaser**"). The Company and the Purchaser are sometimes referred to herein individually as a "**Party**" and collectively, as the "**Parties**").

**WHEREAS**, the Company intends to list its shares of Class A common stock, par value $0.00001 per share (the "**Common Stock**"), on either the NASDAQ Global Select Market ("**Nasdaq**") or the New York Stock Exchange ("**NYSE**", and such listing, whether by means of a direct listing, initial public offering or otherwise, the "**Listing**");

**WHEREAS**, in advance of the Listing, on the terms and subject to the conditions set forth herein, the Purchaser desires to invest in, and the Company desires to issue to the Purchaser, (i) shares of Series A Convertible Preferred Stock, par value $0.00001 per share, of the Company (the "**Series A Preferred Stock**"), (ii) the Tranche I Warrants (as defined herein), (iii) the Tranche II Warrants (as defined herein) and (iv) the Tranche III Warrants (as defined herein);

**WHEREAS**, substantially concurrently with the parties' execution and delivery of this Agreement, the Company, the Purchaser and certain Other Purchasers (as defined below) have duly executed and delivered the Registration Rights Agreement (as defined herein);

**WHEREAS**, in connection with the transactions contemplated by this Agreement and the other Transaction Agreements (the "**Transactions**"), the Company has adopted and filed, or will file prior to or at the Closing, the Certificate of Designations of Series A Convertible Preferred Stock of the Company in the form of <u>Exhibit A</u> attached to this Agreement (the "**Certificate of Designations**") with the Secretary of State of the State of Delaware;

**WHEREAS**, on or prior to the Closing (as defined herein), the Company is entering into subscription agreements (the "**Other Subscription Agreements**" and together with this Agreement, the "**Subscription Agreements**") with certain other purchasers (the "**Other Purchasers**" and together with Purchaser, the "**Purchasers**"), pursuant to which such Other Purchasers have agreed to subscribe for and purchase from the Company, and the Company desires to issue and sell to the Other Purchasers at the Closing, shares of Series A Preferred Stock; and

**WHEREAS**, the Company and the Purchaser desire to set forth the terms and conditions upon which the Purchaser will purchase, and the Company will issue and sell, the Purchased Securities (as defined herein).

**NOW, THEREFORE**, in consideration of the foregoing and the mutual agreements, covenants, representations and warranties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Purchase and Sale of 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;**1.2** **Closing; Delivery**. The purchase and sale of the Purchased Securities shall take place remotely via the exchange of documents and signatures on the date which is five (5) Business Days after the date hereof, or at such other time and place as the Company and the Purchaser shall mutually agree upon in writing (the "**Closing**"). The date on which the Closing actually occurs shall be referred to herein as the "**Closing Date**." At the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Purchaser shall (i) pay (or cause to be paid) to the Company the aggregate Purchase Price payable by the Purchaser as set forth on the signature page hereto by wire transfer of immediately available funds to a bank account designated by the Company prior to the Closing Date, and (ii) deliver to the Company executed counterparts to the Warrants and the registration rights agreement relating to the shares of Common Stock issuable upon conversion of the shares of Series A Preferred Stock, the Warrants and the shares of Common Stock issuable upon exercise of the Warrants, in the form attached as <u>Exhibit E</u> hereto (the "**Registration Rights Agreement**"); 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;(b) The Company shall deliver, or cause to be delivered, to the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) a certified copy of the Certificate of Designations that was duly filed with the Secretary of State of the State of Delaware, which shall be in full force and effect as of the Closing, and (B) resolutions of the Board of Directors (as defined herein) approving the Transaction Agreements and the 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;&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) a book-entry statement evidencing the ownership by the Purchaser of the applicable number of shares of Series A Preferred Stock as contemplated by this Agreement and as set forth on the signature page hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Warrants, duly executed by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an executed counterpart to the Registration Rights 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;**1.3** **Lock-up**. Notwithstanding anything to the contrary set forth in this Agreement or any other Transaction Document, the Purchaser hereby agrees that it shall not Transfer (as defined herein) any Lock-Up Securities (as defined herein) (the "**Lock-Up**") until the date that is 180 days after the first trading date of the Common Stock on an Exchange pursuant to the Listing (the "**Lock-Up Period**"); provided, however, that the restrictions set forth in this Section 1.3 or any other lock-up restriction shall not apply to transactions (including, without limitation, any swap, hedge or similar agreement or arrangement) or announcements, in each case, relating to shares of Common Stock or other securities acquired by the Purchaser or its Affiliates on or after the first trading date of the Common Stock pursuant to the Direct Listing or any open market or other transactions after the Direct Listing or that do not relate to shares of capital stock of the Company owned prior to the Direct Listing; provided, further, that during the Lock-up Period, the Purchaser may Transfer Lock-Up Securities to its Affiliates, so long as any such Affiliate agrees in a writing executed with the Company to be bound by the terms of the Lock-Up contained in this Agreement; provided, further, that during the Lock-Up Period, (i) the Purchaser shall be permitted to Transfer any shares of Common Stock subject to the Lock-Up so long as such shares are sold at a per share price greater than $70.00 per share (as adjusted for stock splits, stock dividends, combinations, recapitalizations and the like) and (ii) if the Purchaser Transfers any shares of Common Stock pursuant to clause (i), a pro rata portion (based on the percentage such Transferred shares of Common Stock represent of the number of outstanding shares of Common Stock held by the Purchaser immediately prior to such Transfer in respect of the shares of Common Stock acquired upon conversion of the Series A Preferred Stock purchased pursuant to this Agreement) of the aggregate number of Lock-Up Warrants (including the shares of Common Stock issuable upon exercise of such Lock-Up Warrants) issued to the Purchaser hereunder shall be released from the Lock-Up. Any discretionary waiver or termination by the Company of the restrictions of any or all of such lock-up restrictions applicable to any other stockholder of the Company shall apply pro rata to the Purchaser, based on the number of shares subject to such restrictions.

&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** **Allocation of Purchase Price**. Promptly following the Closing, the Company shall obtain fair market valuations as of the Closing Date for the Series A Preferred Stock, the Tranche I Warrants, the Tranche 2 Warrants and the Tranche 3 Warrants (the "**Valuations**"). The Valuations shall be conducted by a nationally recognized valuation or appraisal firm selected by the Company and reasonably acceptable to the Anchor Investors. The Company and the Purchaser agree that, for U.S. federal income tax purposes, the Purchase Price for the Purchased Securities shall be allocated on a fair market value basis between (i) the value of the Series A Preferred Stock and (ii) the value of the Warrants, with the portion of the Purchase Price allocated to the Series A Preferred Stock, the portion of the Purchase Price allocated to the Tranche I Warrants, the portion of the Purchase Price allocated to the Tranche II Warrants and the portion of the Purchase Price allocated to the Tranche III Warrants each to be equal to the values ascribed to such securities in the Valuations. The parties hereto shall not take any position for U.S. federal income tax purposes inconsistent with such allocation except as required by a change in applicable law or pursuant to the good faith resolution of any tax contest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5** **Defined Terms Used in this Agreement**. In addition to the terms defined above, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate**" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund, private investment fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person; provided that, notwithstanding the foregoing, any portfolio company of Purchaser or any of its Affiliates will be deemed not to be an Affiliate of any of the Group Companies for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Anchor Investors**" means, collectively, Oaktree, Sachem Head and, Attestor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Anti-Corruption Laws**" means, collectively: (i) the U.S. Foreign Corrupt Practices Act of 1977; (ii) the UK Bribery Act 2010; and (iii) any other applicable anti-bribery or anti-corruption Legal Requirements related to combating bribery, corruption and money laundering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Applicable Legal Requirements**" means, collectively, as applicable based on context, the General Corporation Law of the State of Delaware and other applicable Legal 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;(e) "**Attestor**" means, Attestor Value Master Fund, LP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Board of Directors**" means the Board of Directors 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;(g) "**Business Day**" means any day, other than a Saturday, a Sunday, or any other day on which commercial banks in New York, New York are authorized or required by law to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Cleansing Information**" means all material non-public information (within the meaning of the federal securities laws) concerning the Company, its Subsidiaries or their respective securities that has been disclosed or otherwise made available, directly or indirectly, by or on behalf of the Company or any of its Representatives to the Purchaser or any of the Purchaser's Affiliates or Representatives in connection with the Transactions, including in the course of due diligence, other than any Excluded Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Cleansing Release**" means a press release, Current Report on Form 8-K, or other public disclosure that is broadly disseminated in a manner reasonably designed to effect broad, non-exclusionary distribution of information to the public and that, taken together with the Company's other public filings and disclosures, is sufficient to cause all Cleansing Information to no longer constitute material non-public information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Code**" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Company IT Systems**" means any and all IT Systems owned, leased, or licensed by any Group Company that are used (or held for use) in or in connection with the business of the Group Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Company Material Adverse Effect**" means any change, event, circumstance, development, fact or occurrence (collectively, "**Events**"), that, individually or when aggregated with other Events: (a) has had or would be reasonably likely to have a materially adverse effect on the business, assets, liabilities, operations, condition (financial or otherwise) or results of operations of the Group Companies, taken as a whole; or (b) is reasonably likely to prevent or materially delay the ability of the Company to consummate the Transactions; provided, however, that no change, event, circumstance, fact or occurrence or effect arising out of or related to any of the following, alone or in combination, shall be taken into account in determining whether a Company Material Adverse Effect has occurred or would be reasonably likely to occur: (i) acts of war, sabotage, civil unrest or terrorism, or any escalation or worsening of any such acts of war, sabotage, civil unrest or terrorism, or changes in global, national, regional, state or local political or social conditions; (ii) earthquakes, hurricanes, tornados, epidemics, pandemics, tsunami, flood, mudslide, wild fire, other natural or man-made disasters, act of God or other force majeure event; (iii) changes attributable to the public announcement, pendency or consummation of the Transactions or the Listing (including the impact thereof on relationships with customers, suppliers, employees or Governmental Entities); (iv) changes or proposed changes in Applicable Legal Requirements, regulations or legally binding interpretations thereof or decisions by courts or any Governmental Entity after the date of this Agreement; (v) changes or proposed changes in GAAP (or any legally binding interpretation thereof) after the date of this Agreement; (vi) any downturn in general economic, political, regulatory or legal conditions, including changes in the credit, debt, securities, financial, capital or reinsurance markets (including changes in interest or exchange rates, prices of any security or market index or commodity or any disruption of such markets), in each case, in the United States or anywhere else in the world; (vii) events or conditions generally affecting the industries and markets in which the Company and its Subsidiaries operate; (viii) any failure in and of itself to meet any projections, forecasts, guidance, estimates, milestones, budgets or financial or operating predictions of revenue, earnings, cash flow or cash position; provided, that this clause (viii) shall not prevent a determination that any Event underlying such failure has resulted in a Company Material Adverse Effect; (ix) any matter set forth on the Company Disclosure Schedule; or (x) any actions required to be taken, or required not to be taken, pursuant to the terms of this Agreement; provided, however, that if an Event or effect related to clauses (i), (ii), (iv) through (vii) disproportionately and adversely affects the Group Companies, taken as a whole, compared to other similarly situated Persons operating in the same industry as the Group Companies, then such Events may be taken into account in determining whether a Company Material Adverse Effect has occurred to the extent (but only to the extent) that such Events have had a disproportionate and adverse impact on the Group Companies, taken as a whole, as compared to such other Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "**Company Options**" means each option to purchase Common Stock granted, and that remains outstanding, under the Equity Incentive Plan or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Company Stock**" means the shares of Common Stock and the shares of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Company Stockholder**" means a holder of a share of Company Stock issued and outstanding immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Confidentiality Agreement**" means the Purchaser's confidentiality agreement with the Company in connection with the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Contracts**" means any contract, subcontract, agreement, indenture, note, bond, loan or credit agreement, instrument, installment obligation, lease, mortgage, deed of trust, license, sublicense, commitment, power of attorney, guaranty or other legally binding commitment, arrangement, understanding or obligation, whether written or oral, in each case, as amended and supplemented from time to time and including all schedules, annexes and exhibits thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Data Center**" means the operational data centers, including all expansions thereto completed prior to the date hereof, in each case, owned, leased, managed or operated by the Group Companies, including any equipment, property or other assets (including buildings, structures and improvements) owned by the Group Companies and placed upon the Data Center or underlying site or property; provided, however, that such term does not include any equipment, property or other assets (including buildings, structures and improvements owned by any third party) owned by any third party and placed upon the Data Center or underlying site or property pursuant to Data Center Leases or other Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Data Center Lease**" means any master service agreement, colocation agreement, lease, sublease or similar Contract (including service or similar orders thereunder) to which any of the Group Companies is a party and by which any of the Group Companies grants a Person a leasehold estate, leasehold interest, subleasehold estate, sublease interest, license or the right to use or occupy space in, or to receive power or ancillary services related to, any Data Center.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Derivative Rights**" means, with respect to any Equity Interests of any Person, any and all options, warrants, rights, convertible or exchangeable securities, "phantom" equity rights, equity appreciation rights, profits interests, equity-based performance units, commitments, Contracts, arrangements or undertakings of any kind to which such Person is a party or is bound obligating such Person to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of capital stock of or other equity (or phantom equity) interests in, or any security convertible or exercisable for or exchangeable into any capital stock or other Equity Interest in, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Environmental Laws**" means any and all applicable Legal Requirements regulating, relating to or imposing liability or standards of conduct concerning Hazardous Materials, pollution, protection of the environment, natural or cultural resources, endangered or threatened species, or human health and safety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Equity Incentive Plan**" means The Ionic Digital Inc. Omnibus Incentive 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;(w) "**Equity Interests**" means, with respect to any Person, any and all shares, interests, participations, rights in, or other equivalents (however designated and whether voting or non-voting) of, such Person's capital stock or other equity interests (including partnership or limited liability company interests in a partnership or limited liability company or any other interest or participation right that confers on a Person the right to receive a share of the profits and losses, or distributions of assets, of the issuing Person), and all Derivative Rights with respect to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**ERISA Affiliate**" means any trade or business (whether or not incorporated) that, together with the Company or any of its Subsidiaries, is treated as a single employer under Section 414 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;(z) "**Exchange**" means NASDAQ or NYSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Excluded Information**" means (a) the existence and terms of this Agreement and the Transactions, to the extent and for so long as the same has not been publicly disclosed in accordance with the Confidentiality Agreement; (b) the Company's proprietary financial projections, forecasts, budgets and similar forward-looking estimates; and (c) any other information that the Company, in good faith and after consultation with its outside counsel, determines cannot be publicly disclosed without (i) requiring disclosure of competitively sensitive or trade secret information or (ii) violating any applicable Legal Requirement or contractual confidentiality obligation owed to a third 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;(cc) "**Export Control Laws**" means (a) the U.S. Export Administration Regulations and all other Legal Requirements adopted by Governmental Entities of the United States and other countries relating to trade, import and export controls and (b) the anti-boycott regulations administered by the U.S. Department of Commerce and the U.S. Department of the Treasury and all anti-boycott Legal Requirements adopted by Governmental Entities of other countries relating to prohibition of unauthorized boycotts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**GAAP**" means United States generally accepted accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Government Contracts**" means any prime contract, subcontract, purchase order, task order, delivery order, basic ordering agreement, pricing agreement, letter contract or other similar written arrangement of any kind, including all amendments, modifications and options thereunder or relating thereto between the Company or a Company Subsidiary, on the one hand, and: (a) any Governmental Entity; (b) any prime contractor of a Governmental Entity in its capacity as a prime contractor; or (c) any subcontractor at any tier performing work that is directly charged to any contract of a type described in clauses (a) or (b) above, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Governmental Entity**" means any federal, state, provincial, municipal, local or foreign government, other political subdivision thereof, governmental authority, regulatory or administrative agency (which for the purposes of this Agreement shall include the SEC and any Exchange), self-regulatory organization, governmental commission, department, board, bureau, agency or instrumentality, court or tribunal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Group Companies**" means the Company and all of its direct and indirect 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;(hh) "**Hazardous Materials**" means any substance, material or waste that is listed, classified, defined, characterized, designated or otherwise regulated by a Governmental Entity as a "toxic substance," "hazardous substance," "hazardous material," "contaminant," "pollutant," "hazardous waste," "solid waste" or words of similar meaning or effect, or otherwise regulated under any Environmental Law, including any asbestos, asbestos-containing materials, lead or lead-based paint, polychlorinated biphenyls, chlorinated solvents, per- and polyfluoroalkyl substances, petroleum, petroleum byproducts, petroleum breakdown products, or radioactive materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Intellectual Property**" means any and all rights, title, or interests in or relating to intellectual property, whether protected, created or arising under the laws of the United States or any other jurisdiction, including: (a) all patents, patent applications and invention disclosures, including provisional patent applications and similar filings and any and all substitutions, divisions, continuations, continuations-in-part, divisions, reissues, renewals, extensions, reexaminations, patents of addition, supplementary protection certificates, utility models, inventors' certificates, or the like and any foreign equivalents of the foregoing (including certificates of invention and any applications therefor) (collectively, "**Patents**"); (b) all registered and unregistered trademarks, business marks, service marks, certification marks, brand names, trade dress rights, slogans, logos, corporate names, and trade names, and other source or business identifiers and general intangibles of a like nature, together with the goodwill associated with any of the foregoing, along with all applications, registrations, intent-to-use registrations or similar reservations of marks, renewals and extensions thereof (collectively, "**Trademarks**"); (c) all registered and unregistered copyrights, applications for registration of copyright, works of authorship, literary works, databases, Software, pictorial and graphic works, mask work rights, reversions and moral rights (collectively, "**Copyrights**"); (d) all internet domain names and social media usernames and accounts; (e) trade secrets, know-how, technology, discoveries and improvements, proprietary rights, formulae, customer lists, business plans, confidential and proprietary information, technical information, techniques, inventions (including conceptions and/or reductions to practice), designs, drawings, procedures, processes, models, formulations, manuals and systems, whether or not patentable or copyrightable (collectively, "**Trade Secrets**"); and (f) all other intellectual property, intellectual property rights, proprietary information and proprietary rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**IT Systems**" means Software (including firmware and middleware), systems, hardware, networks, servers, computers, workstations, routers, hubs, switches, data communications lines, interfaces, platforms, databases, websites, and all other information technology equipment, including any of the foregoing accessed pursuant to outsourced or cloud computing arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**knowledge**," including the phrase "to the Company's knowledge," shall mean the actual knowledge after reasonable due inquiry as to a specified fact or event of the individuals listed on Schedule A of the Company Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Legal Proceedings**" means any action, complaint, petition, demand, suit, hearing, claim, charge, audit, lawsuit, litigation, investigation (formal or informal), inquiry, arbitration or proceeding (in each case, whether civil, criminal or administrative or at law or in equity) by or before a Governmental 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;(mm) "**Legal Requirements**" means any federal, state, local, municipal, foreign or other law, statute, constitution, treaty, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling, injunction, judgment, Order, assessment, writ or other legal requirement, or binding administrative policy or guidance, issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental 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;(nn) "**Licensed Intellectual Property**" means all Intellectual Property owned by a third Person and licensed to any of the Group Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Lien**" means any mortgage, deed of trust, hypothecation, easement, license, encroachment, claim, title defect, survey defect, pledge, security interest, encumbrance, lien, option, right of first offer, right of first refusal, restriction or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof, any agreement to give any security interest and any restriction relating to use, quiet enjoyment, voting, transfer, receipt of income or exercise of any other attribute of ownership).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Lock-Up Securities**" means the shares of Series A Preferred Stock, Common Stock issuable upon conversion of the shares of Series A Preferred Stock, the Lock-Up Warrants and the shares of Common Stock issuable upon exercise of the Lock-Up Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**Lock-Up Warrants**" means Warrants representing 98% of the shares of Common Stock issuable upon exercise of each of (i) the Tranche I Warrants, (ii) the Tranche II Warrants and (ii) the Tranche III Warrants, in each case, issued to Purchaser hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "**Material Data Center Lease**" means any Data Center Lease that involves recurring payments by customers to the Group Companies in an aggregate amount exceeding $1,000,000 per year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "**Oaktree**" means, collectively, Oaktree London Liquid Value Opportunities Fund (VOF), L.P., Oaktree Value Opportunities Fund Holdings, L.P. and Oaktree-Copley Investments, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "**Order**" means any award, injunction, judgment, regulatory or supervisory mandate, order, writ, decree or ruling entered, issued, made, or rendered by any Governmental Entity that possesses competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "**Owned Intellectual Property**" means any and all Intellectual Property owned (or purported to be owned), in whole or in part, by any of the Group Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "**Permitted Liens**" means: (i) Liens for Taxes not yet due and payable or for Taxes that are being contested in good faith by appropriate proceedings and in each case that are sufficiently reserved for on the Financial Statements in accordance with GAAP; (ii) statutory and contractual Liens arising out of operation of Legal Requirements or with respect to a liability or obligation incurred in the ordinary course and: (1) that are not yet delinquent and have not arisen out of breach or default; and (2) that are being contested in good faith through appropriate proceedings and in each case that are sufficiently reserved for on the Financial Statements in accordance with GAAP; (iii) Liens of carriers, warehousemen, mechanics, materialmen and repairmen incurred in the ordinary course and: (1) that are not yet delinquent and have not arisen out of breach or default; or (2) that are being contested in good faith through appropriate proceedings and in each case that are sufficiently reserved for on the Financial Statements in accordance with GAAP; (iv) in the case of real property, zoning, building code, or other planning restrictions, variances, covenants, rights of way, encumbrances, easements and other irregularities in title, none of which, individually or in the aggregate, materially detract from the value of, or interfere in any material respect with the present use of or occupancy of the affected real property by any of the Group Companies; (v) in the case of Intellectual Property, non-exclusive licenses of Owned Intellectual Property granted by any Group Company to customers in the ordinary course of business consistent with past practice; (vi) all exceptions, restrictions, easements, imperfections of title, charges, rights-of-way and other Liens of record arising in the ordinary course and not incurred in connection with the borrowing of money that do not, individually or in the aggregate, materially detract from the value of, or materially interfere with the present use of, the assets of the Group Companies, taken as a whole; (vii) ordinary course purchase money Liens and Liens securing rental payments under operating or capital lease arrangements for amounts not yet due or payable; (viii) other Liens arising in the ordinary course of business and not incurred in connection with the borrowing of money in connection with workers' compensation, unemployment insurance or other types of social security; (ix) reversionary rights in favor of landlords under any Company Real Property Leases with respect to any of the buildings or other improvements owned by the Company or any of its Subsidiaries; and (x) Liens that do not, individually or in the aggregate, result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "**Person**" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**Personal Information**" means, in addition to any definition for any similar term (e.g., "**personally identifiable information**") provided by Applicable Legal Requirements, all information that identifies, could be used to identify or is otherwise associated with an individual person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "**Privacy Laws**" means any and all Applicable Legal Requirements relating to the privacy, receipt, collection, compilation, use, storage, processing, sharing, safeguarding, security, disposal, destruction, disclosure or transfer (including cross-border) of Personal Information and any and all Applicable Legal Requirements relating to breach notification in connection with Personal Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) "**Representatives**" means, with respect to a specified Person, the investors, officers, directors, managers, employees, agents, advisors, counsel, accountants, investment bankers and other representatives of such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "**Sachem Head**" means, collectively, Sachem Head LP, Sachem Head Master LP and SH Stony Creek Master Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) "**Sanctions Laws**" means any Legal Requirements related to economic or financial sanctions or embargoes imposed, administered or enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the European Union or any of its Member States, the United Nations, or His Majesty's Treasury of the United Kingdom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) "**Securities**" means, collectively, the shares of Series A Preferred Stock purchased pursuant to this Agreement, the shares of Common Stock issuable upon conversion of the shares of Series A Preferred Stock, the Warrants, and the shares of Common Stock issuable upon exercise of the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) "**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) "**Security Incident**" an occurrence that materially impairs the confidentiality, integrity or availability of any of the Company IT Systems or any of the information that the Company IT Systems process, store or transmit, or that constitutes a material violation of the Data Security Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) "**Software**" means any and all (a) computer programs, including any and all algorithms, models and methodologies, whether in source code, object code, human readable form or other form, including compilers, middleware, tools, firmware, operating systems, specifications, platforms, algorithms, interfaces, APIs, architecture, modules, test specifications, scripts, executables, libraries, and other components thereof; (b) descriptions, flow charts and other work products used to design, plan, organize and develop any of the foregoing, screens, user interfaces, report formats, firmware, development tools, templates, menus, buttons and icons; and (c) all versions, updates, releases, patches, corrections, enhancements and modifications thereto and all documentation including developer notes, instructions, comments, annotations, user manuals and other training documentation relating to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) "**Subsidiary**" means, with respect to any Person, any partnership, limited liability company, corporation or other business entity of which: (a) if a corporation, a majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; (b) if a partnership, limited liability company or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof; or (c) in any case, such Person controls the management thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Tax**" or "**Taxes**" means any and all federal, state, local and foreign taxes, including, without limitation, gross receipts, income, profits, license, sales, use, estimated, alternative minimum, capital gains, windfall profits, premium, occupation, value added, ad valorem, transfer, franchise, capital stock, withholding, payroll, recapture, net worth, employment, workers compensation, unemployment, disability, severance, social security, escheat, excise and property taxes, assessments, stamp, environmental, registration, governmental charges, duties, levies, fees and other similar charges, in each case, in the nature of a tax and imposed by a Governmental Entity (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), together with all deficiency assessments, interest, penalties and additions imposed by a Governmental Entity with respect to any such amounts and shall include any liability for such amounts as a result of being a transferee or successor or member of a combined, consolidated, unitary or affiliated group or as a result of any express or implied obligation to indemnify any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) "**Tax Returns**" means any federal, state, local or foreign return, declaration, report, form, claim for refund, or information return or statement relating to Taxes that is filed or required to be filed with a Governmental Entity, including any election, declaration, disclosure, schedule, estimate or attachment thereto and any amendment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) "**Tranche I Warrants**" means the warrants to purchase shares of Common Stock issued in the form attached hereto as <u>Exhibit B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) "**Tranche II Warrants**" means the warrants to purchase shares of Common Stock issued in the form attached hereto as <u>Exhibit C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm) "**Tranche III Warrants**" means the warrants to purchase shares of Common Stock issued in the form attached hereto as <u>Exhibit D</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;(nnn) "**Transaction Agreements**" means (i) this Agreement, (ii) the Certificate of Designations, (iii) the Warrants, (iv) the Confidentiality Agreement and (v) the Registration Rights 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;(ooo) "**Transfer**" means the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Exchange Act, and the rules and regulations of the SEC promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in clause (a) or (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppp) "**Warrants**" means, collectively, the Tranche I Warrants, the Tranche II Warrants and the Tranche III Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Representations and Warranties of the Company**.

Except as set forth on the Company Disclosure Schedule attached as <u>Exhibit F</u> to this Agreement, the Company hereby represents and warrants to the Purchaser that the following representations are true, correct and complete as of the Closing 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;**2.1** **Organization and Qualification**. The Company is a corporation duly incorporated, validly existing and in good standing under the Legal Requirements of the State of Delaware and has all requisite corporate or similar power and authority to own, lease and operate its assets and properties and to carry on its business as it is now being conducted, except where the failure to have such power and authority would not, individually or in the aggregate, reasonably be expected to be material to the Group Companies, taken as a whole. The Company is duly licensed or qualified to do business in each jurisdiction in which the ownership of its property or the character of its activities is such as to require it to be so licensed or qualified, except where the failure to be so licensed or qualified or in good standing would not, individually or in the aggregate, result in a Company Material Adverse Effect. True, complete and correct copies of the certificate of incorporation and by-laws (or other comparable governing instruments with different names) (collectively referred to herein as "**Charter Documents**") of the Company, as amended and currently in effect, have been made available to the Purchaser or its Representatives.

&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** **Company 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;(a) The Company's direct and indirect Subsidiaries, together with their jurisdiction of incorporation or organization of each such Subsidiary, as applicable, are listed on <u>Section 2.2</u> of the Company Disclosure Schedule (the "**Company Subsidiaries**"). Each Company Subsidiary has been duly formed or organized and is validly existing under the Legal Requirements of its respective jurisdiction of incorporation or organization and has the requisite power and authority to own, lease and operate its assets and properties and to conduct its business as now being conducted, except where the failure to have such power and authority would not, individually or in the aggregate, result in a Company Material Adverse Effect. The Company has made available to the Purchaser or its Representatives true, correct and complete copies of the Charter Documents of the Company Subsidiaries, as amended and currently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Company Subsidiary is duly licensed or qualified to do business and, where applicable, is in good standing as a foreign corporation (or other entity, if applicable) in each jurisdiction in which it is conducting business, or the operation, ownership or leasing of its property or the character of its activities is such as to require it to be so licensed or qualified, except where the failure to be so licensed or qualified or in good standing would not, individually or in the aggregate, result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3** **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;(a) The authorized capital stock of the Company consists of: (i) 1,015,000,001 shares, consisting of 1,000,000,000 shares of Common Stock, 1 share of Class B common stock, $1.00 par value per share (the "**Class B Common Stock**"), and 15,000,000 shares of preferred stock, $0.00001 par value per share ("**Preferred Stock**"), of which 7,547,166 are designated as Series A Preferred Stock and 40,000 are designated as Series Z Preferred Stock. Prior to giving effect to the Closing, (i) 37,374,261 shares of Common Stock are issued and outstanding; (ii) no shares of Class B Common Stock are issued and outstanding and (iii) 40,000 shares of Series Z Preferred Stock are issued and outstanding. No other shares of capital stock or other voting securities of the Company are issued, reserved for issuance or outstanding. All of the issued and outstanding shares of Common Stock have been duly authorized and validly issued and are fully paid and non-assessable and have not been issued in violation of any preemptive or similar rights. Each share of Common Stock has been issued in compliance with: (A) Applicable Legal Requirements and (B) the Company's Charter Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 2.3(b)</u> of the Company Disclosure Schedule sets forth the true, complete and correct capitalization of the Company immediately following the Closing on an as-converted, as-exercised and fully-diluted basis, including the number of shares of the following: (i) issued and outstanding Common Stock, including, with respect to restricted Common Stock, vesting schedule and repurchase price; (ii) outstanding Company Options, including vesting schedule and exercise price; (iii) shares of Common Stock reserved for future award grants under the Equity Incentive Plan; (iv) each series of Preferred Stock; and (v) warrants or stock purchase rights, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth on <u>Section 2.3(b)</u> of the Company Disclosure Schedule, there are no stock appreciation, phantom stock, stock-based performance unit, profit participation, restricted stock, restricted stock unit or other equity-based compensation award or similar rights with respect to the Company and there are no outstanding options, warrants, rights (including, without limitation, preemptive rights, rights of first refusal, conversion rights, voting rights, exchange rights or other similar rights) with respect to, or other securities convertible into or exchangeable or exercisable for shares of the Common Stock or Preferred Stock, or any other commitments or agreements providing for the issuance of additional shares, the sale of treasury shares, or for the repurchase or redemption of shares of Common Stock or Preferred Stock, and there are no agreements of any kind which may obligate the Company to issue, purchase, register for sale, redeem or otherwise acquire any of its capital stock. Except for this Agreement and the Registration Rights Agreement, there are no registration rights, and there is no voting trust, proxy, rights plan, anti-takeover plan or other agreements or understandings with respect to the shares of Common Stock or Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Company Option has been granted with an exercise price that is at least equal to the fair market value of the underlying Common Stock on the date of grant, as determined in accordance with 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;(e) The outstanding shares of capital stock (or other Equity Interests) of each of the Company Subsidiaries have been duly authorized and validly issued and (if applicable) are fully paid and non-assessable (where such concepts are applicable) and have not been issued in violation of any preemptive or similar rights. Each share of capital stock (or other Equity Interests) of each of the Company Subsidiaries has been issued in compliance in all with: (A) Applicable Legal Requirements and (B) the Company's Charter Documents. The Company or one or more of its wholly owned Subsidiaries owns of record and beneficially all the issued and outstanding shares of capital stock (or other Equity Interests) of each of the Company Subsidiaries free and clear of any Liens, other than (i) any Liens as may be set forth on <u>Section 2.3(c)</u> of the Company Disclosure Schedule; (ii) for any restrictions on sales of securities under applicable securities laws; and (iii) Permitted Liens. There are no outstanding options, warrants or rights (including, without limitation, preemptive rights, rights of first refusal, registration rights, conversion rights, voting rights, exchange rights or other similar rights) with respect to, or other securities convertible into or exercisable or exchangeable for any shares of capital stock (or other Equity Interests) of such Company Subsidiaries, any other commitments or agreements providing for the issuance of additional shares (or other Equity Interests), the sale of treasury shares, or for the repurchase or redemption of such Company Subsidiaries' shares of capital stock (or other Equity Interests), or any agreements of any kind which may obligate any Company Subsidiary to issue, purchase, register for sale, redeem or otherwise acquire any of its shares of capital stock (or other Equity Interests). Except for the Equity Interests of the Company Subsidiaries set forth on <u>Section 2.2(a)</u> of the Company Disclosure Schedule, neither the Company nor any of the Company Subsidiaries owns, directly or indirectly, any ownership, equity, profits or voting interest in any Person or has any agreement or commitment to purchase any such interest, and has not agreed and is not obligated to make nor is bound by any written, oral or other Contract, binding understanding, option, warranty or undertaking of any nature, as of the date hereof or as may hereafter be in effect under which it may become obligated to make, any future investment in or capital contribution to any other Person. There are no declared but unpaid dividends or distributions with respect to the outstanding Equity Interests of any Group 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;(f) Except as provided for in the Transaction Agreements, as a result of the consummation of the Transactions, no shares of capital stock, warrants, options or other securities of the Company are issuable and no rights in connection with any shares, warrants, options or other securities of the Company accelerate or otherwise become triggered (whether as to vesting, exercisability, convertibility or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **Due Authorization**. The Company has all requisite corporate or similar power and authority to: (a) execute, deliver and perform this Agreement, the other Transaction Agreements to which it is a party and each ancillary document that it has executed or delivered or is to execute or deliver pursuant to such agreements; and (b) carry out the Company's obligations hereunder and thereunder and to consummate the Transactions , in each case, subject to the consents, approvals, authorizations and other requirements described in <u>Section 2.6</u>. The execution and delivery by the Company of this Agreement, the other Transaction Agreements to which it is a party and the consummation by the Company of the Transactions have been duly and validly authorized by all requisite action, including approval by the Board of Directors, and no other corporate proceeding on the part of the Company is necessary to authorize this Agreement or the other Transaction Agreements or the consummation of the Transactions. This Agreement and the other Transaction Agreements to which it is a party have been duly and validly executed and delivered by the Company and (assuming this Agreement constitutes a legal, valid and binding obligation of the Purchaser) constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors' rights generally and subject, as to enforceability, to general principles of equity (collectively, the "**Remedies Exception**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6** **No Conflict; Governmental Consents and Filings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on <u>Section 2.6(a)</u> of the Company Disclosure Schedule, subject the receipt of the consents, approvals, authorizations and other requirements set forth in <u>Section 2.6(b)</u>, the execution, delivery and performance of this Agreement (including the consummation by the Company of the Transactions) and the other Transaction Agreements to which the Company is a party by the Company do not and will not, directly or indirectly, with or without notice or lapse of time or both: (i) violate any provision of, or result in the breach of, any Applicable Legal Requirement to which any of the Group Companies is subject or by which any property or asset of any of the Group Companies is bound; (ii) conflict with, contravene or violate the Charter Documents of any of the Group Companies; (iii) violate any provision of or result in a breach, modification, default, vesting or acceleration of any provision or any right or obligation or the loss of a benefit to which any of the Group Companies is entitled, require any payment pursuant to, or require a consent under, any Company Material Contract or Approval, or terminate or result in the termination of any Company Material Contract, or result in the creation of any Lien upon any of the properties or assets of any of the Group Companies, or constitute an event which would result in any of the foregoing; or (iv) result in a violation or revocation of any required Approvals, except to the extent that the occurrence of any of the foregoing items set forth in clauses (i), (iii) and (iv) would not, individually or in the aggregate, result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No consent, notice, approval or authorization of, or designation, declaration or filing with, any Governmental Entity or any other Person is required on the part of the Company with respect to the Company's execution, delivery or performance of this Agreement, any of the other Transaction Agreements to which it is a party or the consummation by the Company of the Transactions, except for: (i) compliance with any applicable requirements of the securities laws, (ii) any consents, notices, approvals, authorizations, designations, declarations or filings that have previously been obtained or made, and (iii) the filing of the Certificate of Designations, which will have been filed as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7** **Legal Compliance; Approvals**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on <u>Section 2.7</u> of the Company Disclosure Schedule, each of the Group Companies (i) has, since the Incorporation Date, complied with, and is not currently in violation of, any Applicable Legal Requirements to which such Group Company is subject, and (ii) are not under investigation with respect to any violation of any Applicable Legal Requirements, in each case, except for failures to comply or violations which would not, individually or in the aggregate, result in a Company Material Adverse Effect. Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, no written, or to the Company's knowledge, oral notice or other communication from any Governmental Entity regarding any actual, alleged, or potential violation of, or non-compliance with, any Applicable Legal Requirements to which a Group Company, or any assets owned by it or used in its business, is subject has been received since the Incorporation Date by any of the Group Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Group Company is in possession of, owns or holds all franchises, grants, authorizations, licenses, permits, consents, certificates, approvals, orders and similar authorizations from Governmental Entities ("**Approvals**") necessary to own, lease and operate its properties and to carry on its business as it is now being conducted, except where the failure to have such Approvals would not, individually or in the aggregate, result in a Company Material Adverse Effect. <u>Section 2.7(b)</u> of the Company Disclosure Schedule sets forth (i) all material Approvals of each Group Company and (ii) all pending material Approvals of each Group Company. No Group Company has reason to believe that any pending Approvals will not be timely obtained in the ordinary course of business on commercially reasonable terms, prior to the time the same is required under Applicable Legal Requirements, except where the failure to have such Approvals would not, individually or in the aggregate, result in a Company Material Adverse Effect. The operations of the Group Companies are and have since the Incorporation Date been conducted in compliance with all Approvals, except as would not, individually or in the aggregate, result in a Company Material Adverse Effect. Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, all Approvals are in full force and effect, there is no pending or, to the knowledge of the Company, threatened (in writing) claim, examination or governmental investigation against a Group Company to enjoin, revoke, terminate or modify in any material respect any of such Approvals and no Group Company has received any written, or to the Company's knowledge, oral notice from a Governmental Entity since the Incorporation Date regarding: (i) any violation of or failure to comply with any term or requirement of any Approval or (ii) any revocation, withdrawal, suspension, cancellation, termination or modification of any Approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8** **Government Contracts**. Except as set forth on <u>Section 2.8</u> of the Company Disclosure Schedule, no Group Company is party to: (i) any Contract, including an individual task order, delivery order, purchase order, basic ordering agreement, teaming agreement, joint venture, letter Contract, blanket purchase agreement or similar arrangement of any kind between the Company or any of its Subsidiaries, on one hand, and any Governmental Entity, on the other hand, or (ii) any subcontract (at any tier) or other Contract by which the Company or one of its Subsidiaries has agreed to provide goods or services through a prime contractor to a Governmental Entity (each a "**Government Contract**"). None of the Company or any of its Subsidiaries have provided any offer, bid, quotation or proposal to sell products made or services provided by the Company or any of its Subsidiaries that, if accepted or awarded, would lead to any Contract or subcontract of the type described by the foregoing sentence. Except as would not, individually or in the aggregate, reasonably be expected to be material to the Group Companies, taken as a whole, no Group Company has (v) breached or violated, in any material respect, any Applicable Legal Requirement, term or condition, certification or representation pertaining to any Government Contract; (w) made any false representation or certification in connection with a Government Contract; (x) had any Government Contract terminated by any Governmental Entity or any other Person for default or failure to perform or otherwise received a cure, show cause or similar notice; (y) conducted any internal investigation or initiated or made a voluntary or mandatory disclosure (or been required to make such a disclosure) to a Governmental Entity with respect to any alleged or possible irregularity, misstatement or omission related to a Government Contract; or (z) to the knowledge of the Company, received a formal written performance evaluation from a Governmental Entity containing a materially adverse or negative performance rating related to a Government Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9** **Financial Statements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has made available to the Purchaser true, correct and complete copies of the audited consolidated balance sheets of the Company and its Subsidiaries as of December 31, 2024 and December 31, 2025, and the related audited consolidated statements of operations, cash flows and stockholders' equity for the eleven month period ended December 31, 2024 and the year ended December 31, 2025 (the "**Audited Financial Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Audited Financial Statements (i) present fairly, in all material respects, the consolidated financial position and results of operations of the Company and its Subsidiaries as of the dates and for the periods indicated in such financial statements; (ii) were prepared in conformity with GAAP; (iii) were prepared from, and are in accordance in all material respects with, the books and records of the Company and its Subsidiaries; and (iv) comply in all material respects with the applicable accounting requirements and with the rules and regulations of the SEC, the Exchange Act and the Securities Act applicable to a registrant, in effect as of the respective dates thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth on <u>Section 2.9(c)</u> of the Company Disclosure Schedules, the Group Companies have established and maintain a system of internal accounting controls over financial reporting sufficient in all material respects to provide reasonable assurances (i) regarding the reliability of financial reporting related to the Group Companies and the preparation of financial statements in accordance with GAAP as in effect as of the date of such financial statements; (ii) that transactions, receipts and expenditures of the Group Companies are being executed and made only in accordance with appropriate authorizations of management and the board of directors, board of managers or similar governing body of each applicable Group Company; (iii) regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Group Companies; and (iv) that accounts, notes and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the collection thereof on a current and timely basis. Except as set forth on <u>Section 2.9(c)</u> of the Company Disclosure Schedules, since January 12, 2024 (the "**Incorporation Date**"), neither the Company (including, to the Company's knowledge, any employee thereof) nor any independent auditor of the Company has identified or been made aware of (i) any significant deficiency or material weakness in the system of internal accounting controls utilized by the Company or any of its Subsidiaries; (ii) any fraud, whether or not material, that involves the Company's or any of its Subsidiaries' management or other employees who have a role in the preparation of financial statements or the internal accounting controls utilized by the Company and its Subsidiaries; or (iii) any claim or allegation regarding any of the foregoing. None of the Group Companies is a party to, or has any commitment to become a party to, any off balance sheet arrangement, including any "off balance sheet arrangement" (as defined in Item 303(a) of Regulation S-K promulgated by the SEC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10** **No Undisclosed Liabilities**. The Group Companies do not have any liabilities that would be required to be set forth on, or reserved against on, a consolidated balance sheet of the Group Companies or in the notes thereto prepared in accordance with GAAP, except for liabilities: (a) provided for in, or otherwise reflected or adequately reserved for on the Audited Financial Statements or disclosed in the notes thereto; (b) that have arisen since the date of the most recent audited balance sheet included in the Audited Financial Statements in the ordinary course of the operation of business of the Group Companies and which are not material to the Group Companies, taken as a whole (none of which is a liability resulting from breach of contract, breach of warranty, tort, infringement or misappropriation); (c) incurred in connection with the Transactions; or (d) that would not, individually or in the aggregate, reasonably be expected to be material to the Group Companies, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11** **Absence of Certain Changes or Events**. Since December 31, 2025, no Company Material Adverse Effect has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12** **Litigation**. Except as set forth on <u>Section 2.12</u> of the Company Disclosure Schedule, in each case, solely to the extent such information would be required to be disclosed in a registration statement on Form S-1 filed by the Company with the SEC under applicable SEC rules and regulations, including Item 103 of Regulation S-K: (a) there currently are no pending or, to the Company's knowledge, threatened in writing, Legal Proceedings against any of the Group Companies or any of its properties or assets, or any of the directors or officers of any of the Group Companies with regard to their actions as such; (b) there are no pending or threatened in writing, audits, examinations or investigations by any Governmental Entity against any of the Group Companies or any of its properties or assets, or any of the directors or officers of any of the Group Companies with regard to their actions as such; (c) there currently are no pending or, to the Company's knowledge, threatened in writing Legal Proceedings by any of the Group Companies, or which a Group Company has commenced material preparations to initiate, against any third party; (d) there currently are no settlements or similar Contracts or agreements that impose any material ongoing obligations or restrictions on any of the Group Companies; and (e) there are no Orders imposed or, to the Company's knowledge, threatened in writing, to be imposed upon any of the Group Companies or any of their respective properties or assets, or any of the directors or officers of any of the Group Companies with regard to their actions as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13** **Company Benefit Plans**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) With respect to each Company Benefit Plan that would be required to be disclosed in a registration statement on Form S-1 filed by the Company with the SEC under applicable SEC rules and regulations, the Company has made available to the Purchaser or its Representatives copies of: (i) such Company Benefit Plan, or the applicable form listed on <u>Section 2.13(a)</u> of the Company Disclosure Schedule, and any trust agreement relating to such plan; (ii) the most recent summary plan description for such Company Benefit Plan for which such summary plan description is required; (iii) the most recent annual report on Form 5500 and all attachments thereto filed with the Internal Revenue Service with respect to such Company Benefit Plan (if applicable); (iv) the most recent determination or opinion letter, if any, issued by the Internal Revenue Service with respect to such Company Benefit Plan; (v) the most recently prepared actuarial report for such Company Benefit Plan, if applicable; and (vi) any material non-routine correspondence with any Governmental Entity regarding any Company Benefit Plan since the Incorporation Date. "**Company Benefit Plan**" means each "employee benefit plan" as defined in Section 3(3) of ERISA, any employment, individual consulting, retirement, severance, termination or change in control agreements, deferred compensation, vacation, sick, stock option, stock purchase, stock appreciation rights, stock-based or equity or other equity-based, incentive, bonus, commission, supplemental retirement, profit-sharing, insurance, medical, welfare, fringe or other benefits or remuneration of any kind, and any other agreement, arrangement, plan, Contract, policy or program providing compensation or other benefits to any current or former director, officer, employee or other service provider, whether or not in writing, which is maintained, sponsored or contributed to by the Company or any of the Company Subsidiaries or under which the Company or any of the Company Subsidiaries has any obligation or liability (contingent or otherwise); provided, that no "multiemployer plan," within the meaning of Section 3(37) or 4001(a)(3) of ERISA shall be a Company Benefit Plan hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect: (i) each Company Benefit Plan has been administered in accordance with its terms and all Applicable Legal Requirements, including ERISA and the Code; (ii) all contributions required to be made with respect to any Company Benefit Plan on or before the date hereof have been made; and (iii) no non-exempt "prohibited transaction" (within the meaning of Section 406 of ERISA and Section 4975 of the Code) has occurred or is reasonably expected to occur with respect to any Company Benefit Plan. Each Company Benefit Plan which is intended to be qualified within the meaning of Section 401(a) of the Code: (A) has received a favorable determination or opinion letter as to its qualification; or (B) has been established under a standardized master and prototype or volume submitter plan for which a current favorable Internal Revenue Service advisory letter or opinion letter has been obtained by the plan sponsor and is valid as to the adopting employer, and nothing has occurred and no circumstances exist that would reasonably be expected to result in the loss of the qualification of such plan under Section 401(a) 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;(c) Neither the Company, the Company Subsidiaries, nor any of their respective ERISA Affiliates has, since the Incorporation Date, sponsored, been obligated to contribute to, or has any reasonable expectation of current or contingent liability in respect of: (i) an "employee pension benefit plan" (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA, Section 412 of the Code or Section 302 of ERISA (including any "multiemployer plan" within the meaning of Section 3(37) of ERISA); (ii) a "multiple employer plan" as defined in Section 413(c) of the Code; or (iii) a "multiple employer welfare arrangement" within the meaning of Section 3(40) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, with respect to the Company Benefit Plans or their administrators or fiduciaries: (i) no actions, suits or claims (other than routine claims for benefits in the ordinary course) are pending or, to the Company's knowledge, threatened; and (ii) no facts or circumstances exist that would reasonably be expected to give rise to any such actions, suits or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) None of the Company Benefit Plans provides for, and none of the Group Companies has any liability in respect of, post-retiree health, welfare or life insurance benefits or coverage for any participant or any beneficiary of a participant, except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or similar state or other Legal Requirements and at the sole expense of such participant or the participant's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither the execution and delivery of this Agreement nor the consummation of the Transactions will, either alone or in connection with any other event(s): (i) result in any payment or benefit becoming due to any current or former employee, individual contractor or director of the Company or the Company Subsidiaries under any Company Benefit Plan or otherwise; (ii) increase any amount of compensation or benefits otherwise due or payable to any current or former employee, individual contractor or director of the Company or the Company Subsidiaries under any Company Benefit Plan or otherwise; or (iii) result in the acceleration of the time of payment, funding or vesting of any benefits to any current or former employee, individual contractor or director of the Company or its Subsidiaries under any Company Benefit Plan or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the execution and delivery of this Agreement nor the consummation of the Transactions shall, either alone or in connection with any other event(s), give rise to any "excess parachute payment" as defined in Section 280G(b)(1) of the Code or any excise tax owing under Section 4999 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;(h) No Group Company has any obligation to gross-up or reimburse any current or former employee, individual consultant or director for any tax or related interest or penalties incurred by such individual, including under Sections 409A or 4999 of the Code or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Company Benefit Plan which is a "nonqualified deferred compensation plan" subject to Section 409A of the Code has been established, operated and maintained in compliance with Section 409A of the Code in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Company Benefit Plan can be amended, terminated or otherwise discontinued after the Closing in accordance with its terms, without material liabilities to the Company or any of the Company Subsidiaries other than ordinary administration expenses typically incurred in a termination event and/or payments or benefits provided pursuant to the terms of such Company Benefit Plan as in effect on the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.14** **Labor Relations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No Group Company is a party to, bound by, negotiating or required to negotiate any collective bargaining agreement or other agreement with a labor union or other labor organization. To the Company's knowledge, no employees of any Group Company are represented by any labor union or other labor organization. To the Company's knowledge, there are no activities or proceedings of any labor union or other labor organization to organize any employees of any Group Company and no demand for recognition or certification as the exclusive bargaining representative of any employees has been made by or on behalf of any labor union or other labor organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, there are no strikes, work stoppages, slowdowns, lockouts, arbitrations, or material grievances or other labor disputes (including unfair labor practice charges, grievances, or complaints) against any Group Company pending, or, to the Company's knowledge, threatened against or involving the Company involving any employee, and since the Incorporation Date, there have been no strikes, work stoppages, slowdowns, lockouts, arbitrations, or material grievances or other labor disputes (including unfair labor practice charges, grievances, or complaints) against any Group 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;(c) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, the Company is, and since the Incorporation Date, has been, in compliance with all Applicable Legal Requirements relating to the employment of labor, including all such Legal Requirements relating to wages (including minimum wage and overtime), hours of work, child labor, discrimination, civil rights, withholdings and deductions, classification and payment of employees, independent contractors, and consultants, employment equity, the federal Worker Adjustment and Retraining Notification Act and any similar state or local "mass layoff" or "plant closing" Legal Requirement (collectively, "**WARN**"), collective bargaining, occupational health and safety, workers' compensation, and immigration. There has been no "mass layoff" or "plant closing" (as defined by WARN) with respect to the Company within the six (6) months prior to the date of this Agreement and no such events are reasonably expected to occur prior to Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not, individually or in the aggregate, reasonably be expected to be material to the Group Companies, taken as a whole, there have been no employment discrimination or employment or sexual harassment or sexual misconduct allegations raised, brought, threatened, or settled relating to any current or former appointed officer or director or employee at the level of vice president or above of the Company or any of the Company Subsidiaries involving or relating to his or her services provided to the Company or any of the Company Subsidiaries. Since the Incorporation Date, the Company has not entered into any settlement agreements resolving, in whole or in part, allegations of sexual harassment or sexual misconduct by any current or former appointed officer or director or employee at the level of vice president or above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery of this Agreement and the other Transaction Agreements and the performance of this Agreement and the Transactions do not require any Group Company to seek or obtain any consent, engage in consultation with, or issue any notice to any unions or labor organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To the Company's knowledge, no officer of the Company intends to resign or retire as a result of the transactions contemplated 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;**2.15** **Real Property; Tangible Property**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.15(a)</u> of the Company Disclosure Schedule sets forth a true, correct and complete list of all real property owned in fee by any of the Group Companies (the "**Owned Real Property**"), including the address and record owner of each such parcel. With respect to each parcel of Owned Real Property, the applicable Group Company is the sole owner and has good, marketable and valid title in fee simple to such Owned Real Property, free and clear of all Liens other than Permitted Liens. There are no outstanding options, rights of first offer, rights of first refusal or similar rights to purchase any Owned Real Property or any portion thereof or interest therein. There is no pending or, to the Company's knowledge, threatened in writing Legal Proceeding in the nature of condemnation, expropriation, notice of reserve, eminent domain, expropriation or similar matters before any Governmental Entity with respect to any Owned Real Property which, individually or in the aggregate, would result in a Company Material Adverse Effect. No Group Company has received written notice that the use of any parcel of the Owned Real Property fails to comply with, or is in violation of, applicable laws or zoning ordinances in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 2.15(b)</u> of the Company Disclosure Schedule lists all material real property leased, subleased or otherwise occupied by the Group Companies (the "**Leased Real Property**"), including the address of such Leased Real Property and all leases, subleases, licenses, occupancy agreements and other similar documents related to the Group Companies' use or occupancy of any Leased Real Property, including all amendments and modifications thereto and guarantees thereof (collectively, the "**Company Real Property Leases**"). The Company or one of the Company Subsidiaries has a good and valid leasehold estate in, and enjoys peaceful and undisturbed possession of, all Leased Real Property free and clear of any and all Liens (other than Permitted Liens). The Company Real Property Leases are (i) in full force and effect, subject to the Remedies Exception; and (ii) represent the valid and binding obligations of the Company or one of the Company Subsidiaries party thereto and, to the Company's knowledge, represent the valid and binding obligations of the other parties thereto. None of the Group Companies nor, to the Company's knowledge, any other party thereto, is in breach or default under, and no event has occurred which, with notice or the lapse of time or both, would become a breach or default under, any Company Real Property Lease, and no party to any Company Real Property Lease has given any written or, to the Company's knowledge, oral, claim or notice of any such breach, default or event which, individually or in the aggregate, would result in a Company Material Adverse Effect. No party to any Company Real Property Lease has exercised any termination rights with respect thereto. No Leased Real Property, or any portion thereof, is currently sublet or sublicensed by any Group Company to a third party. There is no pending or, to the Company's knowledge, threatened in writing Legal Proceeding in the nature of condemnation, expropriation, notice of reserve, eminent domain or similar matters before any Governmental Entity with respect to any Leased Real Property which, individually or in the aggregate, would result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Owned Real Property and Leased Real Property represent all of the material real property that is used by the Group Companies in the ordinary course of business with respect to the operation of the business of the Group Companies and is sufficient in all material respects for such use as conducted in accordance with past practice. The Owned Real Property and Leased Real Property and the use and operation thereof in the conduct of the business of the Group Companies do not violate in any material respect any Applicable Legal Requirement, consent, Lien or agreement of any Governmental Entity. No buildings, structures, improvements or fixtures constituting a part of the Owned Real Property and Leased Real Property encroach on any real property not owned or leased by the Group Companies to the extent that removal of such encroachment would reasonably be expected to have a Company Material Adverse Effect. There are no Liens affecting the Owned Real Property and Leased Real Property that impair the ability of the Group Companies to use such property in the operation of the Business in the ordinary course of business, other than any such Liens that would not reasonably be expected to have a Company Material Adverse Effect. None of the Owned Real Property, Leased Real Property nor the Group Companies' occupancy or use thereof violates the terms of any Lien except as would not reasonably be expected to, individually or in the aggregate, have a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company or one of the Company Subsidiaries owns and has good and marketable title to, or a valid leasehold interest in or right to use, all of its material tangible assets reflected on the books and records of the Company or personal property, free and clear of all Liens other than: (i) Permitted Liens; and (ii) the rights of lessors under any leases. The material tangible assets or personal property (together with the Intellectual Property rights and contractual rights) of the Group Companies: (A) constitute all of the assets, rights and properties that are necessary for the operation of the businesses of the Group Companies as they are now conducted, and taken together, are adequate and sufficient for the operation of the businesses of the Group Companies as currently conducted; and (B) have been maintained in all material respects in accordance with generally applicable accepted industry practice, are in good working order and condition, except for ordinary wear and tear and as would not, individually or in the aggregate, result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.16** **Taxes**. There are no income or other material taxes due and payable by the Group Companies that have not been timely and properly paid and there are no material withholding taxes required to be withheld by the Group Companies that have not been withheld and timely and properly paid over to the appropriate governmental agency. There have been no examinations or audits with respect to any taxes or tax returns of Group Companies, by any applicable federal, state, county, local or foreign governmental agency, and the Company has not received written notice of an intent to commence any such examination or audit that remains outstanding. Each of the Group Companies has duly and timely filed all income or other material tax returns required to have been filed by it, and there are in effect no waivers of applicable statutes of limitations with respect to taxes for any year. The Company is not now and has never been a "United States real property holding corporation" within the meaning of Section 897 of the Code and any applicable regulations promulgated thereunder (a "**USRPHC**"). The Company is properly classified as a corporation for U.S. federal income tax 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;**2.17** **Environmental Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Group Companies, and each property or facility at any time owned, leased, or operated by any of the Group Companies, is, and since the Incorporation Date has been, in compliance with all Environmental Laws, except for any such instance of non-compliance that would not individually or in the aggregate, result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Group Companies has obtained, holds, is, and since the Incorporation Date has been, in compliance with all permits required under Environmental Laws for each of the Group Companies to own or operate their assets and to conduct their respective businesses, except where the absence of, or failure to be in compliance with, any such permit would not individually or in the aggregate, result in a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as would not reasonably be expected to result in a Company Material Adverse Effect, there are no written claims or notices of violations pending or, to the Company's knowledge, threatened in writing against any of the Group Companies or any property or facility owned, leased, or operated by any of the Group Companies alleging material violations of or liability under any Environmental Law, and, to the Company's knowledge, there are no facts or circumstances which could reasonably be expected to form the basis of any such claims or notices of violations under any Environmental 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;(d) None of the Group Companies nor, to the Company's knowledge, any other Person has disposed of or released any Hazardous Material at, on or under any facility currently or formerly owned, leased or operated by any of the Group Companies or any third-party site, in each case in a manner that would be reasonably likely to give rise to a material liability of the Group Companies under any Environmental 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;(e) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, none of the Group Companies has agreed to indemnify any Person or assumed by Contract or Legal Requirement the defense or liability of any third party arising under Environmental 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;**2.18** **Brokers; Third Party Expenses**. No broker, finder, investment banker or other Person is entitled to, nor will be entitled to, either directly or indirectly, any brokerage fee, finders' fee or other similar commission, for which any Purchaser or any of the Group Companies would be liable in connection with the Transactions based upon arrangements made by any of the Group Companies or any of their Affiliates other than fees payable by the Company to J.P. Morgan Securities LLC and BTIG, LLC (collectively, the "**Placement Agents**") pursuant to that certain engagement letter by and among the Company and the Placement Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.19** **Intellectual Property**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.19(a)</u> of the Company Disclosure Schedule sets forth a true, correct and complete list of each registered Patent and Patent application, registered Trademark and application for Trademark registration, registered Copyright, and internet domain name (collectively, "**Registered IP**"), and material unregistered Trademarks used as the names of Company products or services, in each case, in which any of the Group Companies has an ownership interest or an exclusive license or similar exclusive right in any field or territory (in each case setting forth the applicable jurisdiction, title, application and registration or serial number and date, and record owner and, if different, the legal owner and beneficial owner).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company or one of the Company Subsidiaries (i) is the sole and exclusive owner of all right, title and interest in and to all Owned Intellectual Property, free and clear of all Liens (other than Permitted Liens), and (ii) owns, or has the right to use pursuant to a valid license, sublicense, or other written agreement all other Intellectual Property and IT Systems used in or necessary for the conduct and operation of the business of the Group Companies, as presently conducted and as proposed to be conducted immediately following the Closing except as would not, individually or in the aggregate, result in a Company Material Adverse Effect) and none of the foregoing will be materially adversely impacted by (nor will require the payment or grant of additional material amounts or material consideration as a result of) the execution, delivery, or performance of this Agreement or any Transaction Agreement or the consummation of the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, the Group Companies, the conduct and operation of the business of the Group Companies as presently conducted (including the creation, licensing, marketing, importation, offering for sale, sale, or use of the products and services of the business of the Group Companies), and the use of the Owned Intellectual Property has not since the Incorporation Date infringed, misappropriated or otherwise violated, and are not infringing, misappropriating or otherwise violating any Intellectual Property rights of any Person. There are no Legal Proceedings pending (or to the Company's knowledge, threatened) and none of the Group Companies has received from any Person since the Incorporation Date any written (or to the Company's knowledge, oral) notice, charge, complaint, claim or other assertion (A) of any infringement, misappropriation or other violation of any Intellectual Property right of any Person or (B) contesting the use, ownership, validity, or enforceability of any of the Owned Intellectual Property. To the Company's knowledge, no third Person has infringed, misappropriated or violated, or is infringing, misappropriating or violating, any Owned Intellectual Property, and no such claims have been made in writing against any Person by any of the Group Companies since the Incorporation Date. None of the Owned Intellectual Property is subject to any pending or outstanding Order, settlement, consent order or other disposition of dispute that restricts the use, transfer, or registration of, or adversely affects the validity or enforceability of, any Owned Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No past or present director, officer or employee, consultants, and independent contractors of any of the Group Companies owns (or has any claim, or any right (whether or not currently exercisable) to any ownership interest, in or to) any material Owned Intellectual Property. Except as set forth on <u>Section 2.19(d)</u> of the Company Disclosure Schedule, each of the past or present employees, consultants, and independent contractors of the Group Companies who were or are either (i) privy to any material Trade Secrets of any Group Company or (ii) engaged in creating or developing for or on behalf of such Group Company any material Owned Intellectual Property in the course of such Person's employment or engagement has executed and delivered a valid written agreement pursuant to which such Person has, respectively, (x) agreed to hold all confidential information of such Group Company in confidence both during and after such Person's employment or retention, as applicable; and (y) presently assigned to such Group Company all of such Person's rights, title and interest in and to all Intellectual Property created or developed for such Group Company in the course of such Person's employment or retention thereby (or all such rights, title, and interest vested in a Group Company by operation of law). To the Company's knowledge, there is no breach by any such Person with respect to any material Intellectual Property under any such 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;(e) Each of the Group Companies, as applicable, has taken commercially reasonable steps to maintain the secrecy, confidentiality and value of all Trade Secrets constituting Owned Intellectual Property (including all source code for any Software constituting Owned Intellectual Property) and all Trade Secrets of any Person to whom any Group Company has a contractual confidentiality obligation with respect to such Trade Secrets. No Trade Secret that constitutes Owned Intellectual Property and is material to the business of the Group Companies has been authorized to be disclosed, or, to the Company's knowledge, has been disclosed to any other Person, other than as subject to a written agreement that contains customary restrictions regarding the disclosure and use of such Trade Secret.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No open source Software is or has been included, incorporated or embedded in, linked to, combined, made available or distributed with, or used in the development, maintenance, operation, delivery or provision of any material Software constituting Owned Intellectual Property, in each case, in a manner that requires or obligates any Group Company to: (i) disclose, contribute, distribute, license or otherwise make available to any Person any source code constituting Owned Intellectual Property; (ii) license any Software constituting Owned Intellectual Property for making modifications or derivative works; (iii) disclose, contribute, distribute, license or otherwise make available to any Person any Software constituting Owned Intellectual Property for no or nominal charge; or (iv) grant a license to, or refrain from asserting or enforcing any of, its Patents (collectively, "**Copyleft Terms**"), in each case, except as would not, individually or in the aggregate, reasonably be expected to be material to the conduct of the businesses of the Group Companies (taken as a whole). Except as has not had, or would not have, individually or in the aggregate, a Company Material Adverse Effect, each Group Company is in compliance with the terms and conditions of all relevant licenses for open source Software used in the business of the Group Companies (including any Software constituting Owned Intellectual Property).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No government funding, nor any facilities of a university, college, other educational institution, or similar institution, or research center, was used by any Group Company in the development of any Owned Intellectual Property. No Governmental Entity has any: (i) ownership interest or exclusive license in or to any material Owned Intellectual Property; (ii) "unlimited rights" (as defined in 48 C.F.R. § 52.227-14 and in 48 C.F.R. § 252.227-7013(a)) in or to any Software except as set forth in <u>Section 2.19(g)(ii)</u> of the Company Disclosure Schedule; or (iii) "march in rights" (pursuant to 35 U.S.C. § 203) in or to any Patents constituting material Owned Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Except as would not, individually or in the aggregate, reasonably be expected to be material to the conduct of the businesses of the Group Companies (taken as a whole), the Company or one of the Company Subsidiaries owns or has a valid right to access and use all Company IT Systems. The Company IT Systems are adequate in all material respects for the operation and conduct of the business of the Group Companies as currently conducted. To the Company's knowledge, neither the Company IT Systems nor any Software that constitutes Owned Intellectual Property contains any viruses, worms, Trojan horses, bugs, faults or other devices, errors, contaminants or defects that (i) materially disrupt or materially adversely affect the functionality of the Company IT Systems or such Software or (ii) enable or assist any Person to access without authorization any Company IT Systems or such Software (collectively, "**Malicious Code**"). To the Company's knowledge, since the Incorporation Date, there has been no material unauthorized access to or material breach or violation of any Company IT Systems (or data processed thereon). Since the Incorporation Date, there have been no failures, breakdowns, continued substandard performance, data loss, material outages, material unscheduled downtime or other adverse events affecting any such Company IT Systems that have caused or could reasonably be expected to result in the substantial disruption of or material interruption in or to the conduct and operation of the business of the Group Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, neither the execution, delivery and performance of this Agreement nor the consummation of the Transactions will result in the: (i) loss or impairment of, or any Lien (other than any Permitted Lien) on, any Owned Intellectual Property or material Licensed Intellectual Property; (ii) release, disclosure or delivery of any source code constituting Owned Intellectual Property to any Person; (iii) grant, assignment or transfer to any other Person of any license or other right or interest under, to or in any Owned Intellectual Property; or (iv) payment of any additional consideration to, or the reduction of any payments from, any Person with respect to any Owned Intellectual Property or material Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.20** **Privacy**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not, individually or in the aggregate, reasonably be expected to be material to the conduct of the businesses of the Group Companies (taken as a whole), the Group Companies, and any Person acting for or on the Group Companies' behalf, have at all times since the Incorporation Date complied, as applicable to the Group Companies, with: (i) all applicable Privacy Laws; (ii) all of the Group Companies' written policies regarding Personal Information ("**Group Companies' Privacy Notices**"); and (iii) the Group Companies' obligations regarding Personal Information and information technology security under any Contracts (clauses (i)-(iii) above, collectively, "**Data Security Obligations**"). None of the Group Companies has since the Incorporation Date received any notice of any claims, investigations, inquiries or alleged violations of any Data Security Obligation or been charged with the violation of any Privacy Laws. None of the Group Companies has notified in writing, or been required by Applicable Legal Requirements or Contract to notify in writing, any person or entity of any personal data or information security-related incident. To the Company's knowledge, none of the Group Companies' Privacy Notices have contained any material omissions or been misleading or deceptive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not, individually or in the aggregate, result in a Company Material Adverse Effect, each of the Group Companies has, since the Incorporation Date: (i) implemented and maintained, in all material respects, reasonable security regarding the confidentiality, integrity and availability of their applicable Company IT Systems and the data thereon against loss, theft, misuse or unauthorized access, use, modification or disclosure; and (ii) required all third-party service providers, outsourcers, processors or other third parties to comply with applicable Privacy Laws in all material respects. To the Company's knowledge, any third party who has provided Personal Information to such Group Company since the Incorporation Date has done so in compliance with applicable Privacy Laws, including providing any notice and obtaining any consent required under such Privacy 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;(c) Except as would not, individually or in the aggregate, reasonably be expected to be material to the conduct of the businesses of the Group Companies (taken as a whole), since the Incorporation Date, there have been no Security Incidents or misuse of any Personal Information in the possession or control of any of the Group Companies or collected, used or processed by or on behalf of the Group Companies and none of the Group Companies have experienced any Security Incident that has compromised the integrity or availability of their Company IT Systems. Since the Incorporation Date, the Group Companies have implemented reasonable disaster recovery and business continuity plans designed to safeguard the data and Personal Information in its possession or control. The Company has conducted commercially reasonable data security testing or audits at reasonable and appropriate intervals and has resolved or remediated any issues identified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.21** **Agreements, Contracts and Commitments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.21(a)</u> of the Company Disclosure Schedule sets forth a true, correct and complete list of each Company Material Contract that is in effect and that would be required to be filed as an exhibit to a registration statement on Form S-1 filed by the Company with the SEC pursuant to Item 601(b)(10) of Regulation S-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) All Company Material Contracts are: (i) in full force and effect, subject to the Remedies Exception and (ii) represent the legal, valid and binding obligations of the Company or one of the Company Subsidiaries party thereto and, to the Company's knowledge, represent the legal, valid and binding obligations of the other parties thereto. None of the Group Companies nor, to the Company's knowledge, any other party thereto, is in breach of or default under, and no event has occurred which with notice or lapse of time or both would become a breach of or default under, or would result in a termination of any of the Company Material Contracts, and no party to any Company Material Contract has given any written or, to the Company's knowledge, oral, claim or notice of any such breach, default or event, which individually or in the aggregate, would be reasonably likely to be material to the Group Companies, taken as a whole. No party to any Company Material Contract has exercised any termination rights with respect thereto and no Group Company has received any notice (written or, to the knowledge of the Company, oral) of the intention of any party to terminate or cancel any provision of any Company Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Other than the Affiliate Agreements listed in <u>Section 2.21</u> of the Company Disclosure Schedule, there are no other transactions pending or contemplated between any of the Group Companies and any of their current or former shareholders and Affiliates related to the business, ownership or operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.22** **Insurance**. All material insurance policies, and other forms of insurance held by, or for the benefit of, the Group Companies (collectively, the "**Insurance Policies**"), are in full force and effect. None of the Group Companies has received any written notice from any insurer under any of the Insurance Policies, canceling, terminating or materially adversely amending any such policy or denying renewal of coverage thereunder and all premiums on such insurance policies due and payable as of the date hereof have been paid. There is no pending material claim by any Group Company against any insurance carrier for which coverage has been denied or disputed by the applicable insurance carrier (other than a customary reservation of rights 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;**2.23** **Related Party Transactions**. No stockholder, officer or director of the Group Companies or, to the Company's knowledge, any immediate family member thereof (a) is presently a party or has a direct or indirect interest in any Person (excluding any holdings of publicly traded securities) party to any Contract with any Group Company (excluding Contracts related to (i) employee compensation and other ordinary incidents of employment (including participation in Company Benefit Plans) and (ii) equity ownership); (b) owns any direct or indirect interest in any material assets of the Group Companies; or (c) has any cause of action or other claim against, or owes any amounts to, the Group Companies except for claims of employees in the ordinary course of business, including for bona-fide employment-related compensation, expense reimbursements, or accrued vacation pay or for accrued benefits under a Company Benefit Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.24** **Anti-Corruption; Sanctions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Group Companies, or, to the Company's knowledge, any of their Affiliates, Representatives or any other Persons, in each case to the extent acting or purporting to act for and on behalf of any of the Group Companies, is or has been, since the Incorporation Date, (i) a Person named on any Sanctions Laws-related or Export Control Laws-related list of designated Persons; (ii) located, organized or resident in a country or territory which is itself the subject of or target of any Sanctions Laws; (iii) an entity owned, directly or indirectly, individually or in the aggregate, 50% or more by one or more Persons described in clauses (i) or (ii); (iv) transacting business with or on behalf of any Person described in clauses (i)-(iii) or any country or territory described in clause (ii) in violation of Sanctions Laws; (v) otherwise in violation or been subject to any investigation by a Governmental Entity for violation of Sanctions Laws or Export Control Laws; (vi) conducted or initiated any internal investigation, or made a voluntary, directed, or involuntary disclosure to any Governmental Entity regarding any alleged act or omission arising under or relating to any noncompliance with any Sanctions Laws or Export Control Laws; or (iv) received any notice, request, citation or report from any Person of any actual or potential noncompliance with any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Group Companies, or, to the Company's knowledge, any of their Affiliates, Representatives or any other Persons, in each case to the extent acting or purporting to act for and on behalf of the Group Companies has, since the Incorporation Date, (i) made, offered, promised, paid or received any bribes, kickbacks or other similar improper payments to or from any Person or (ii) made or paid any contributions, directly or indirectly, to a domestic or foreign political party or candidate, in each case of clauses (i) or (ii), in violation of the Anti-Corruption 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;**2.25** **Vendors; Customer**s.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 2.25(a)</u> of the Company Disclosure Schedule sets forth (a) the top ten vendors, based on the aggregate amount payable by the Company or its Subsidiaries to such counterparty during the year ended December 31, 2025 or the anticipated aggregate amount payable by the Company or its Subsidiaries to such counterparty during the period ending on the date twelve months after the date hereof (the "**Top Vendors**") and (b) the top customers, based on the aggregate amount payable to the Company or its Subsidiaries by such counterparty during the year ended December 31, 2025 or the anticipated aggregate amount payable to the Company or its Subsidiaries by such counterparty during the period ending on the date twelve months after the date hereof (the "***Top Customers***"), in each case solely to the extent such information would be required to be disclosed in a registration statement on Form S-1 filed by the Company with the SEC under applicable SEC rules and regulations, including Item 101 of Regulation S-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as set forth on <u>Section 2.25(b)</u> of the Company Disclosure Schedule, and solely to the extent such information would be required to be disclosed in a registration statement on Form S-1 filed by the Company with the SEC under applicable SEC rules and regulations, none of the Top Vendors or Top Customers has notified the Company or any of the Company's Subsidiaries in writing, or to the Company's knowledge, verbally: (i) that it will, or, to the Company's knowledge, has threatened to, terminate, cancel, materially limit or materially alter and adversely modify any of its existing business with the Company or any of the Company's Subsidiaries (other than due to the expiration of an existing contractual arrangement); or (ii) that it is in a material dispute with the Company or its Subsidiaries or their respective businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.26** **Sufficiency of Assets**. The tangible and intangible assets owned, licensed or leased by the Group Companies constitute all of the assets reasonably necessary and sufficient, in all material respects, for the continued conduct of the business of the Group Companies in the ordinary course after the Closing as currently conducted as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.27** **Rights of Registration and Voting Rights**. Except as provided in the Charter Documents and the Registration Rights Agreement and as contemplated by the Listing, the Company is not under any obligation to register under the Securities Act any of its currently outstanding securities or any securities issuable upon exercise or conversion of its currently outstanding securities. Except for the settlement agreement and cooperation agreement entered into between the Company and Figure Markets Holdings, Inc., GXD Labs LLC, certain directors of the Company, and certain stockholders of the Company, to the Company's knowledge, no stockholder of the Company has entered into any agreements with respect to the voting of capital shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.28** **Other Subscription Agreements**. Notwithstanding anything to the contrary set forth herein, the Company acknowledges and agrees that during the period beginning on the date hereof and ending on the date of Listing, the Company will not enter into any Other Subscription Agreements with Other Purchasers with terms and conditions that are more advantageous to the Other Purchasers thereunder in any material respect than the terms and conditions set forth in this Agreement, unless such terms and conditions are also offered to the Purchaser. The Company hereby represents and warrants to the Purchaser that the Company is presently not a party to any side letter, management rights letter, or other similar agreements between the Company and any of the holders of capital stock providing additional rights or benefits to such holders and will not enter any such agreement prior to, or concurrently with, the execution of the this Agreement, without first obtaining the prior written consent of the Anchor Investors. The Company has made available to the Purchaser copies of all Other Subscription Agreements and all side letters or other similar agreements currently in effect or proposed between the Company and any of the Company's investors or any affiliates of such investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.29** **Data Centers**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not have a Company Material Adverse Effect, each Data Center has (i) a fully-functioning fire suppression system to the extent required by Applicable Legal Requirements; (ii) fully-functioning equipment and facilities, in accordance with good industry practice, sufficient for such Data Center to receive electric energy from the applicable utility up to the applicable peak contractual demand of such Data Center; (iii) an executed Contract for the purchase of electric energy from a utility or third-party supplier; (iv) functioning sources of emergency power, in accordance with good industry practices, sufficient to permit such Data Center to maintain substantially normal operations in the event of short-term utility power interruptions; and (v) functioning cooling, power, humidity, network and security facilities and equipment to the extent required by Applicable Legal Requirements and as required to conduct the business of the Group Companies in accordance with past practice. Except as would not have a Company Material Adverse Effect, the Group Companies own or lease all such Data Centers free and clear of any Liens (other than Permitted Liens).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The fibers and related infrastructure (including poles, ducts, and highway shoulders) owned by a Group Company and used in connection with the business of the Group Companies (the "**Physical Network**") is free and clear of any Liens, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth on <u>Section 2.29(c)</u> of the Company Disclosure Schedule, no Data Center or Physical Network is undergoing material works of construction, refurbishment or alteration. Each such Data Center and any expansions thereto under construction as of the date hereof, is being constructed, developed, refurbished or altered in the ordinary course of business consistent with good industry practice in all material respects. There are no adverse physical conditions or defects affecting any Data Center (including any expansions thereto under construction as of the date hereof) or the Physical Network, other than adverse conditions or defects that would be repaired as identified in the ordinary course of business or as would otherwise not have a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Data Center and the Physical Network is working, functional in all material respects, and in good repair and working order condition for its current and proposed use in all material respects, subject to ordinary wear and tear. The operating temperature and humidity ranges at each Data Center are, in all material respects, within the appropriate "allowable" specifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Group Companies are not party to any Contract or other obligation to provide electric power to any Person except in the ordinary course of business. All utility and municipal services necessary for the proposed use and occupancy of each Data Center (including any expansions thereto under construction as of the date hereof) are available, in each case, except as would not have, individually or in the aggregate, a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as would not have a Company Material Adverse Effect, all power and cooling equipment used by the Group Companies has, since the date of installation, been subject to commercially reasonable, recurring preventative maintenance consistent with customary and appropriate industry standards and currently is supported by relevant manufacturers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except as would not have a Company Material Adverse Effect, the Group Companies maintain commercially reasonable security systems at each of the Data Centers (including any expansions thereto under construction as of the date hereof) for which the Group Companies provide security services and otherwise maintain the security of such Data Centers (including any expansions thereto under construction as of the date hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.30** **Disclaimer of Other Warranties**. THE COMPANY HEREBY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY PROVIDED IN <u>SECTION 3</u>, NONE OF THE PURCHASER OR ANY OF ITS AFFILIATES OR REPRESENTATIVES HAS MADE, IS MAKING, OR SHALL BE DEEMED TO MAKE ANY REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, TO THE COMPANY, ANY OF ITS AFFILIATES OR REPRESENTATIVES OR ANY OTHER PERSON, WITH RESPECT TO THE PURCHASER OR ANY OF ITS BUSINESSES, ASSETS OR PROPERTIES OF THE FOREGOING, OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, FUTURE RESULTS, PROPOSED BUSINESSES OR FUTURE PLANS. WITHOUT LIMITING THE FOREGOING AND NOTWITHSTANDING ANYTHING TO THE CONTRARY: (A) NONE OF THE PURCHASER OR ANY OF ITS AFFILIATES OR REPRESENTATIVES SHALL BE DEEMED TO MAKE TO THE COMPANY OR ITS AFFILIATES OR REPRESENTATIVES ANY REPRESENTATION OR WARRANTY OTHER THAN AS EXPRESSLY MADE BY THE PURCHASER TO THE COMPANY IN <u>SECTION 3</u>; AND (B) NONE OF THE PURCHASER NOR ANY OF ITS AFFILIATES OR REPRESENTATIVES, HAS MADE, IS MAKING, OR SHALL BE DEEMED TO MAKE TO THE COMPANY OR ITS AFFILIATES OR REPRESENTATIVES OR ANY OTHER PERSON ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO: (I) THE INFORMATION DISTRIBUTED OR MADE AVAILABLE TO THEM BY OR ON BEHALF OF THE PURCHASER IN CONNECTION WITH THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS AND THE TRANSACTIONS OR (II) ANY MANAGEMENT PRESENTATION, CONFIDENTIAL INFORMATION MEMORANDUM OR SIMILAR DOCUMENT. THE COMPANY ACKNOWLEDGES THAT IT HAS CONDUCTED, TO ITS SATISFACTION, AN INDEPENDENT INVESTIGATION AND VERIFICATION OF THE PURCHASER AND THE BUSINESS, ASSETS, LIABILITIES, PROPERTIES, FINANCIAL CONDITION, RESULTS OF OPERATIONS AND PROJECTED OPERATIONS OF THE FOREGOING AND, IN MAKING ITS DETERMINATION THE COMPANY HAS RELIED ON THE RESULTS OF ITS OWN INDEPENDENT INVESTIGATION AND VERIFICATION, IN ADDITION TO THE REPRESENTATIONS AND WARRANTIES OF THE PURCHASER EXPRESSLY AND SPECIFICALLY SET FORTH IN <u>SECTION 3</u> OF THIS AGREEMENT. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS <u>SECTION 2.30</u>, CLAIMS AGAINST THE PURCHASER OR ANY OTHER PERSON SHALL NOT BE LIMITED IN ANY RESPECT IN THE EVENT OF INTENTIONAL FRAUD IN THE MAKING OF THE REPRESENTATIONS AND WARRANTIES IN <u>SECTION 3</u> BY SUCH PERSON.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Representations and Warranties of the Purchaser**.

The Purchaser hereby represents and warrants, severally and not jointly, to the Company 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;**3.1** **Due Authorization**. The Purchaser has full power and authority to enter into the Transaction Agreements to which the Purchaser is a party. The Transaction Agreements to which the Purchaser is a party, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the Purchaser, enforceable in accordance with their terms, subject to the Remedies Exception.

&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** **Purchase Entirely for Own Account**. This Agreement is made with the Purchaser in reliance upon the Purchaser's representation to the Company, which by the Purchaser's execution of this Agreement, the Purchaser hereby confirms, that the Securities to be acquired by the Purchaser will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the 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;**3.3** **Disclosure of Information**. The Purchaser has had an opportunity to discuss the Company's business, management, financial affairs and the terms and conditions of the offering of the Securities with the Company's management and has had an opportunity to review the Company's facilities. The Purchaser became aware of this offering of the Purchased Securities solely by means of direct contact between the Purchaser and the Company or its Affiliates, or by means of direct contact between the Purchaser and the Placement Agents, and the Purchased Securities were offered to the Purchaser solely by such direct contact. The Purchaser did not become aware of this offering of the Purchased Securities, nor were the Purchased Securities offered to the Purchaser, by any other 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;**3.4** **Restricted Securities**. The Purchaser understands that the issuance of the Purchased Securities have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser's representations as expressed herein. The Purchaser understands that the Purchased Securities are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Purchased Securities indefinitely unless their resale is registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Purchaser acknowledges that the Company has no obligation to register or qualify the shares of Common Stock issuable upon conversion of the Series A Preferred Stock or exercise of the Warrants, as applicable, for resale, except as provided in the Registration Rights Agreement. The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements, including, but not limited to, the time and manner of sale, the holding period for the Purchased Securities, and on requirements relating to the Company which are outside of the Purchaser's control, and which the Company is under no obligation and may not be able to satisfy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5** **No Public Market**. The Purchaser understands that no public market now exists for the Purchased Securities, and that the Company has made no assurances that a public market will ever exist for the 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** **Legends**. The Purchaser understands that the Purchased Securities and any securities issued in respect of or exchanged for the Purchased Securities may bear one or all of the following legends: (a)"NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH 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) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY 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;(c) any legend set forth in, or required by, the other Transaction Agreements; 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;(d) any legend required by the securities laws of any state to the extent such laws are applicable to the Securities represented by the certificate, instrument, or book entry so legended.

&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** **Accredited Investor**. The Purchaser and all of its equity owners are each accredited investors as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. The Purchaser (a) is an institutional account as defined in FINRA Rule 4512(c), (b) is a sophisticated investor, experienced in investing in private equity transactions and capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities, and (c) has exercised independent judgment in evaluating its participation in the purchase of the Securities. The Purchaser understands and acknowledges that the purchase and sale of the Securities hereunder meets (i) the exemptions from filing under FINRA Rule 5123(b)(1)(A) and (ii) the institutional customer exemption under FINRA Rule 2111(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8** **Investor**. The Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Purchased Securities or any use of this Agreement, including (i) the Legal Requirements within its jurisdiction for the purchase of the Purchased Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. The Purchaser's subscription and payment for and continued beneficial ownership of the Purchased Securities will not violate any applicable securities or other laws of the Purchaser's jurisdiction. The Purchaser acknowledges that it has consulted its own advisors (including Tax advisors) regarding the Transactions, that it is relying solely upon its own advisors in connection with assessing the Tax consequences of the Transactions, and that no Group Company has offered any Tax advice to the Purchaser or made any representation, warranty or guarantee regarding the Tax consequences of the 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;**3.9** **No General Solicitation**. Neither the Purchaser nor any of its officers, directors, employees, agents, stockholders or partners has either directly or indirectly, including through a broker or finder, (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and sale of the 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;**3.10** **Residence**. The office of the Purchaser in which its principal place of business takes place is identified in the address of the Purchaser set forth on the signature page.

&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** **Exculpation**. The Purchaser acknowledges that it is not relying upon any Person, other than the Company and its officers and directors, in making its investment or decision to invest in the Company. The Purchaser agrees that none of (i) any Other Purchaser (including the controlling persons, members, officers, directors, partners, agents, or employees of any such Other Purchaser), (ii) the Placement Agents, any of their respective Affiliates or any of their respective control persons, officers, directors or employees, or (iii) any other Person that is not a party hereto, shall be liable to the Purchaser pursuant to this Agreement for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the 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;**3.12** **Disclaimer of Other Warranties**. THE PURCHASER HEREBY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY PROVIDED IN <u>SECTION 2</u>, NONE OF THE COMPANY, ANY OF ITS SUBSIDIARIES OR ANY OF THEIR RESPECTIVE AFFILIATES OR REPRESENTATIVES HAS MADE, IS MAKING, OR SHALL BE DEEMED TO MAKE ANY REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, TO THE PURCHASER, ANY OF ITS AFFILIATES OR REPRESENTATIVES OR ANY OTHER PERSON, WITH RESPECT TO THE COMPANY STOCKHOLDERS (OR ANY HOLDER OF DERIVATIVE SECURITIES OF THE COMPANY), ANY OF THE GROUP COMPANIES, OR ANY OF THE DIRECTORS, OFFICERS, MANAGERS, EMPLOYEES, BUSINESSES, ASSETS OR PROPERTIES OF THE FOREGOING, OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, FUTURE RESULTS, PROPOSED BUSINESSES OR FUTURE PLANS. WITHOUT LIMITING THE FOREGOING AND NOTWITHSTANDING ANYTHING TO THE CONTRARY: (A) NONE OF THE COMPANY, ANY OF ITS SUBSIDIARIES OR ANY OF THEIR RESPECTIVE AFFILIATES OR REPRESENTATIVES SHALL BE DEEMED TO MAKE TO THE PURCHASER OR ITS AFFILIATES OR REPRESENTATIVES ANY REPRESENTATION OR WARRANTY OTHER THAN AS EXPRESSLY MADE BY THE COMPANY IN <u>SECTION 2</u>; AND (B) NONE OF THE COMPANY, ANY OF ITS SUBSIDIARIES, NOR THEIR RESPECTIVE AFFILIATES OR REPRESENTATIVES, HAS MADE, IS MAKING, OR SHALL BE DEEMED TO MAKE TO THE PURCHASER OR ITS AFFILIATES OR REPRESENTATIVES OR ANY OTHER PERSON ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO: (I) THE INFORMATION DISTRIBUTED OR MADE AVAILABLE TO THE PURCHASER OR ITS REPRESENTATIVES BY OR ON BEHALF OF THE COMPANY IN CONNECTION WITH THIS AGREEMENT AND THE OTHER TRANSACTION AGREEMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY; (II) ANY MANAGEMENT PRESENTATION, CONFIDENTIAL INFORMATION MEMORANDUM OR SIMILAR DOCUMENT; OR (III) ANY FINANCIAL PROJECTION, FORECAST, ESTIMATE, BUDGET OR SIMILAR ITEM RELATING TO THE COMPANY, ANY OF ITS SUBSIDIARIES AND/OR THE BUSINESS, ASSETS, LIABILITIES, PROPERTIES, FINANCIAL CONDITION, RESULTS OF OPERATIONS AND PROJECTED OPERATIONS OF THE FOREGOING. THE PURCHASER ACKNOWLEDGES THAT IT HAS CONDUCTED, TO ITS SATISFACTION, AN INDEPENDENT INVESTIGATION AND VERIFICATION OF THE COMPANY, ITS SUBSIDIARIES AND THE BUSINESS, ASSETS, LIABILITIES, PROPERTIES, FINANCIAL CONDITION, RESULTS OF OPERATIONS AND PROJECTED OPERATIONS OF THE FOREGOING AND, IN MAKING ITS DETERMINATION TO PROCEED WITH THE TRANSACTIONS, THE PURCHASER HAS RELIED ON THE RESULTS OF ITS OWN INDEPENDENT INVESTIGATION AND VERIFICATION, IN ADDITION TO THE REPRESENTATIONS AND WARRANTIES OF THE COMPANY EXPRESSLY AND SPECIFICALLY SET FORTH IN <u>SECTION 2</u> OF THIS AGREEMENT. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS <u>SECTION 3.12</u>, CLAIMS AGAINST THE COMPANY OR ANY OTHER PERSON SHALL NOT BE LIMITED IN ANY RESPECT IN THE EVENT OF INTENTIONAL FRAUD IN THE MAKING OF THE REPRESENTATIONS AND WARRANTIES IN <u>SECTION 2</u> BY SUCH PERSON.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.13** **Placement Agent Reliance and Exculpation**. The Purchaser agrees, for the express benefit of each Placement Agent, its affiliates and its respective directors, officers, employees, agents and representatives (collectively, the "**Placement Agent Parties**"), 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;(a) the Purchaser is not relying upon, and has not relied upon, any statement, representation or warranty made by any Placement Agent Party in making its investment or decision to invest 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;(b) each Placement Agent is acting solely as placement agent in connection with the transactions contemplated hereby and is not acting as an underwriter, initial purchaser, dealer or in any other such capacity and is not and shall not be construed as a fiduciary for the Purchaser in connection with the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Placement Agent Party has made, and will not make, any representation or warranty with respect to the Company or the offer and sale of the Purchased Securities or any other matter concerning the Company or the transactions contemplated hereby, and the Purchaser will not rely on any statements made by any Placement Agent Party, orally or in writing, to the contrary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Purchaser will be responsible for conducting its own due diligence investigation with respect to the Company and the offer and sale of the Purchased Securities, and no Placement Agent Party has made any independent investigation with respect to the Company, the Purchased Securities, or the accuracy, completeness or adequacy of any information supplied to the Purchaser 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;(e) the Purchaser has negotiated the offer and sale of the Purchased Securities directly with the Company, and no Placement Agent Party will be responsible for the ultimate success of any such investment; 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;(f) no Placement Agent Party will have any responsibility with respect to (i) any representations, warranties or agreements made by any Person under or in connection with the transactions contemplated hereby or any of the documents furnished pursuant thereto or in connection therewith, or the execution, legality, validity or enforceability (with respect to any Person) of any thereof, or (ii) the business, affairs, financial condition, operations, properties or prospects of, or any other matter concerning, the Company or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Covenants**.

&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** **Listing**. The Company shall use reasonable best efforts to file a Registration Statement on Form S-1 (or other appropriate form) with the SEC and to have such Registration Statement declared effective, and to cause the Common Stock to be listed on an Exchange in connection with the Listing, in each case, as promptly as practicable following such effectiveness and, in any event, not later than August 15, 2026; provided, that, for the avoidance of doubt, the obligations under this this <u>Section 4.1</u> shall continue in the event the Listing has not occurred by such date. The Company shall keep the Purchaser reasonably informed on a current basis of the status of the Listing and shall promptly notify the Purchaser of any material developments with respect 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;**4.2** **Certificate of Designations**. Prior to or at the Closing, the Company shall duly file, or cause to be duly filed, the Certificate of Designations with the Secretary of State of the State of Delaware and deliver a certified copy of the Certificate of Designations that was duly filed with the Secretary of State of the State of Delaware to the Purchaser, which shall be in full force and effect as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Status; Notifications**. From and after the date hereof until the earlier of (i) the voluntary or automatic conversion of all of the shares of Series A Preferred Stock into Common Stock in accordance with the Certificate of Designations and (ii) the date on which no shares of Series A Preferred Stock remain outstanding, the Company shall give prompt notice to the Purchaser of any Event that, individually or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect, and any material breach of the terms of this Agreement; provided that the delivery of any notice pursuant to this <u>Section 4.3</u> shall not affect or be deemed to modify any representation, warranty, covenant, right, remedy, or condition to any obligation of any Party hereto or update the Company Disclosure Schedule.

&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** **Press Release**. Promptly after the Closing, the Company shall issue a press release announcing the consummation of the Transactions, the form and substance of which shall be mutually agreed upon by the Company and the Purchaser. The Company shall not, and shall cause its Affiliates not to, disclose the identity of the Purchaser in any press release, marketing, or similar materials without the prior consent of the Purchaser. For the avoidance of doubt, the Company may, without prior written consent, disclose the identity of the Purchaser orally or in writing (i) to the extent necessary to comply with applicable securities laws or (ii) as may otherwise be required by applicable law or stock exchange rule, in which case of clause (i) and (ii), to the extent not prohibited by Legal Requirements, the Company shall use its commercially reasonable efforts to provide the Purchaser with sufficient time, consistent with such requirements, to review the nature of such requirements and to comment upon such disclosure prior to publication and the Company shall consider and implement in good faith such comments reasonably proposed by Purchaser or its counsel for inclusion therein.

&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** **Material Non-Public Information; Information Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained in this Agreement or the other Transaction Agreements, from and after the date of this Agreement, unless expressly agreed to by the Purchaser in writing, the Company will not provide any information to the Purchaser or its Affiliates or Representatives (i) which includes material non-public information (including without limitation any information derived from such material non-public information) ("**MNPI**"), (ii) that, when taken together with the other information provided would constitute MNPI or (iii) that would in any manner restrict the Purchaser's or any of its Affiliates' trading activities or its or their ability to make any particular trade with respect to the issuer or other company. For the avoidance of doubt, the Purchaser does not accept any duties with respect to any information except information that is confidential information that Purchaser has agreed in writing to treat as confidential. In addition, as to any information provided to Purchaser, in no event shall the Purchaser's duties under this Agreement or under any common law or other principle or source in any manner be deemed or construed as limiting the Purchaser's, its Affiliates' or their respective representatives' ability to trade any publicly-listed or any other security, and any such duties are hereby disclaimed by the parties to this Agreement. Further, the Company represents that it (including its employees and agents) will conduct itself in accordance with all applicable laws, regulations and ethical standards, including, without limitation, the federal securities laws and all legal prohibitions against insider trading and the improper disclosure of inside information or other information in breach of a duty of trust or confidence. The Company covenants that it (including its employees and agents) will not disclose to the Purchaser any information if (a) the disclosure violates any applicable laws or regulations, including the federal securities laws, and particularly insider trading laws, (b) the disclosure violates any agreement, contract or duty to which the Company is subject, or (c) the Company knows or reasonably should know that the disclosure of the information by the direct or indirect source of the information breaches or breached any agreement, contract or duty to which the direct or indirect source was subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Prior to the Listing, the Company shall issue a Cleansing Release and make such public disclosures as are necessary to cause all Cleansing Information to cease to be material non-public information, in each case, as and to the extent necessary to enable the Purchaser and its Affiliates and Representatives to be free to trade in the Company's securities in compliance with applicable Legal Requirements, subject to the Lock-Up. Each Cleansing Release shall be made in a manner that complies with Regulation FD and the applicable rules of the Exchange. The Purchaser and the Company shall consult and cooperate in good faith regarding the form, substance and timing of each Cleansing Release, and the Company shall give the Purchaser a reasonable opportunity to review and comment on each Cleansing Release prior to its issuance, with such comments to be considered in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For so long as the Purchaser owns any shares of Series A Preferred Stock, the Company shall deliver or make available to the Purchaser, solely to the extent the Purchaser consents in writing to receive such information prior to such delivery or making available: (a) annual audited consolidated financial statements of the Company and its Subsidiaries within 120 days after the end of each fiscal year to which they relate; (b) annual budgets of the Company and its Subsidiaries within 120 days after the end of each fiscal year to which they relate; (c) quarterly consolidated financial statements of the Company and its Subsidiaries within 45 days after the end of each fiscal quarter to which they relate; (d) monthly profit and loss statement and statement of recurring revenue within 30 days of each month to which they relate; (e) materials provided to the members of the Board of Directors; provided, however, that the Company shall not be obligated under this <u>Section 4.6(c)</u> to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company); or (ii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel; (f) quarterly capitalization information with respect to the Company within 45 days after the end of each fiscal quarter to which they relate; (g) information provided to the Company's lenders; and (h) such other information regarding, and reasonable access to the management of the Company with respect to, the results, operations, business affairs and financial condition of the Company as the Purchaser may reasonably request.

&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** **Pay-to-Play**. Notwithstanding anything to the contrary set forth in this Agreement or the Company's certificate of incorporation or bylaws, in no event will the Purchaser be subject to any pay to play or similar provisions in this Agreement or the Company's certificate of incorporation or bylaws (or any amendments of such agreements or documents with substantially the same effect) requiring the Purchaser to subscribe for additional shares or other securities of the Company to maintain its rights or privileges under this Agreement (other than any loss of rights or privileges solely as a result of any dilution of the Purchaser's ownership of the Company as a result of non-participation by the Purchaser in any issuance of shares or other securities of the Company, subject to the terms of the Transaction Agreements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7** **[Investment Right**. At any time after the date hereof until the earlier of: (a) the Direct Listing or (b) the consummation of the sale of the Company's securities pursuant to a registration statement filed by the Company under the Securities Act of 1933, as amended, in connection with the firm commitment underwritten offering of its securities to the general public or at such time when the Company or any successor first becomes subject to the periodic reporting requirements of Section 12(b), 12(g) or 15(d) of the Exchange Act, the Purchaser shall have the right, but not the obligation (the "**Investment Right**"), upon written notice to the Company, to require the Company to purchase all or any portion of the shares of capital stock of the Company then owned by the Purchaser for an aggregate purchase price of $1.00. The Investment Right shall supersede any conflicting rights in this Agreement, the Certificate of Designation, certificate of incorporation or the bylaws of the Company as in effect from time to time.]<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Survival of Representations and Warranties**. All the agreements, representations and warranties made by each Party hereto in this Agreement shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Miscellaneous**.

&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** **Successors and Assigns**. Except as otherwise expressly provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns, heirs, executors and administrators and shall inure to the benefit of and be enforceable by each person who shall be a holder of the Securities from time to time; provided, however, that, subject to the terms of this Agreement, the Purchaser may transfer or assign its rights and obligations under this Agreement in whole or from time to time in part, without the consent of the Company, to one or more of its Affiliates at any time; provided that such transfer or assignment shall not relieve the Purchaser of its obligations hereunder or enlarge, alter or change any obligation of any other Party hereto or due to the Purchaser. Any purported transfer or assignment in violation of this <u>Section 6.1</u> shall be null and void. Nothing in this Agreement, express or implied, is intended to confer upon any Party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Governing Law**. 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 as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal laws of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Counterparts**. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including .pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, the Uniform Electronic Transactions Act or other applicable law, 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.

<sup>1</sup> NTD: For Citadel 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;**6.4** **Titles and Subtitles; Disclosure Schedules**. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. The Company Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in <u>Section 2</u>, and the disclosures in any section or subsection of the Company Disclosure Schedule shall qualify other sections and subsections in <u>Section 2</u> only to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5** **Notices**. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the Party to be notified, (b) when sent, if sent by electronic mail during normal business hours of the recipient, 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 deposit with a nationally recognized overnight courier, freight prepaid, specifying next Business Day delivery, with written verification of receipt. If notice is given to the Company, it shall be sent to Ionic Digital Inc., 650 Massachusetts Avenue NW, 6<sup>th</sup> Floor, Washington, DC 20001, Attention: Richard Carson, General Counsel (\*\*\*); and a copy (which shall not constitute notice) shall also be sent to White & Case LLP, 609 Main Street, Suite 2900, Houston, Texas 77002, Attention: A.J. Ericksen (\*\*\*) and Daniel Nussen (\*\*\*). If notice is given to the Purchaser, it shall be sent to [●], Attention: [●] ([●]); and a copy (which shall not constitute notice) shall also be sent to Milbank LLP, 55 Hudson Yards, New York, NY 10001; Attention: Scott Golenbock (\*\*\*), Douglas Howell (\*\*\*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6** **No Finder's Fees**. The Purchaser agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of the Transactions (and the costs and expenses of defending against such liability or asserted liability) for which the Purchaser or any of its officers, employees or Representatives is responsible. The Company agrees to indemnify and hold harmless the Purchaser from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of the Transactions (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or Representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7** **Further Assurances**. Following the date of this Agreement, (i) the parties to this Agreement shall cooperate with one another to prepare and file all documents and forms and amendments thereto as may be required under applicable law with respect to the Transactions, (ii) the parties shall, and shall cause their respective Affiliates and their and their respective Representatives to, execute and deliver such additional instruments, documents, conveyances or assurances and take such other actions as shall be necessary, or otherwise reasonably be requested by the other Party, to confirm and assure the rights and obligations provided for in this Agreement and render effective the consummation of the Transactions, or otherwise to carry out the intent and purposes of this Agreement, and (iii) each Party shall use all reasonable best efforts to take or cause to be taken all actions, and to do or cause to be done all other things, that are necessary, proper or advisable in order for such Party to fulfill and perform its respective obligations in respect 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;**6.8** **Transaction Expenses**. Each Party shall be responsible for its own costs and expenses (including, without limitation, fees and disbursements of counsel, consultants, accountants and other advisors) incurred in connection with the negotiation, preparation, execution and delivery of this Agreement and the other Transaction Agreements and the consummation of the transactions contemplated hereby and thereby (the "**Transaction Expenses**"); provided, however, that the Purchaser shall be entitled to the payment or reimbursement by the Company of the Purchaser's reasonable and documented Transaction Expenses, not to exceed an amount equal to Purchaser's pro rata share of $500,000 in the aggregate, based on the Purchaser's *pro rata* portion of the aggregate purchase price paid by all Purchasers under all Subscription Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.9** **Amendments and Waivers**. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the parties to this Agreement, or in the case of a waiver, by the Party against whom the waiver is to be effective; provided, that, notwithstanding anything to the contrary set forth herein or in any Warrant issued to any Other Purchaser, the Company acknowledges and agrees that the Company will not amend, waive any material right under, or otherwise modify any provision of any Other Subscription Agreement with any other Other Purchaser or Warrant issued to any Other Purchaser in any way that is more advantageous to any Other Purchaser in any material respect, unless such amendment, waiver or other modification is also offered to the Purchaser. No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10** **Severability**. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11** **Delays or Omissions**. No delay or omission to exercise any right, power or remedy accruing to any Party under this Agreement, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement, or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.12** **Entire Agreement**. This Agreement (including the exhibits hereto) and the other Transaction Agreements constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled. For the avoidance of doubt, nothing in this Agreement shall be construed as superseding or limiting the terms of the Confidentiality Agreement. Notwithstanding the foregoing, each Placement Agent is an intended third-party beneficiary of the representations and warranties of the Purchaser set forth in <u>Section 3.13</u> of this Agreement, and each Placement Agent shall be entitled to rely on such representations and warranties as if such representations and warranties were made directly to such Placement Agent. The Purchaser agrees that no Placement Agent Party shall be liable to the Purchaser for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the 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;**6.13** **Dispute Resolution**. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of the State of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of the State of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each Party will bear its own costs in respect of any disputes arising under this Agreement. The prevailing party (as determined by a court of competent jurisdiction in a final, non-appealable order) shall be entitled to reasonable and documented attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.14** **WAIVER OF JURY TRIAL**. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.15** **Specific Performance**. Each Party hereto expressly acknowledges and agrees that it would be difficult to measure the damages that might result from any actual or threatened breach of this Agreement, and that any actual or threatened breach by a Party hereto of any of the provisions of this Agreement may result in immediate, irreparable and continuing injury to the other Party hereto for which a remedy at law would be inadequate. Each of the parties hereto therefore agrees that, in addition to any other available remedies the other Party hereto may have in equity or at law, such other Party shall be entitled, without the posting of a bond, to enforce specifically the terms and provisions of this Agreement and to obtain temporary, preliminary and permanent injunctive relief or other equitable relief, in each case issued by a court of competent jurisdiction in accordance with <u>Section 6.15</u>, in case of any such actual or threatened breach by 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;**6.16** **Tax Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall use commercially reasonable efforts to provide any information reasonably requested by the holders of the Series A Preferred Stock and necessary to enable such holders (or their direct or indirect equity owners) to comply with their U.S. federal income tax reporting obligations, including, but not limited to, a determination of the amount of the Company's current and accumulated earnings and profits in any taxable year where such determination is relevant to determining the amount (if any) of any distribution received by such holders from the Company that is properly treated as a dividend for U.S. federal income tax purposes. Notwithstanding anything to the contrary in any agreements or documents related to the transactions contemplated by this Agreement, no such agreement or document shall require any holder of Series A Preferred Stock or any representative thereof to make available its or their Tax returns to the Company or any Person for any purposes including in connection with any proceeding or other dispute (whether between the parties or involving third persons).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall use reasonable best efforts to prevent the Company from becoming a USRPHC and (ii) promptly notify the Purchasers in writing if the Company reasonably determines that it has become, or is likely to become, a USRPHC.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the date first written above.

---

| |
|:---|
| **COMPANY:** |
| **IONIC DIGITAL INC.** |
| By: |
| Name: |
| Title: |

---

[*Signature Page to Securities Purchase Agreement*]

By: 

Name: 

Title: 

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Shares of Series A Preferred Stock** | &nbsp;&nbsp;[●] |
| &nbsp;&nbsp;**Tranche I Warrant Shares** | &nbsp;&nbsp;[●] |
| &nbsp;&nbsp;**Tranche II Warrant Shares** | &nbsp;&nbsp;[●] |
| &nbsp;&nbsp;**Tranche III Warrant Shares** | &nbsp;&nbsp;[●] |
| &nbsp;&nbsp;**Aggregate Purchase Price** | &nbsp;&nbsp;$[●] |
| &nbsp;&nbsp;**Address for Notices** | &nbsp;&nbsp;[●] |
| &nbsp;&nbsp;**E-mail for Notices** | &nbsp;&nbsp;[●] |
| &nbsp;&nbsp;**Name in which shares and Warrants are to be registered (if different from above)** |  |

---

[*Signature Page to Securities Purchase Agreement*]

**EXHIBITS**

---

| | |
|:---|:---|
| **<u>Exhibit A</u>** | **Certificate of Designations of Series A Preferred Stock** |
| **<u>Exhibit B</u>** | **Form of Tranche I Warrant** |
| **<u>Exhibit C</u>** | **Form of Tranche II Warrant** |
| **<u>Exhibit D</u>** | **Form of Tranche III Warrant** |
| **<u>Exhibit E</u>** | **Form of Registration Rights Agreement** |
| **<u>Exhibit F</u>** | **Company Disclosure Schedule** |

---

## Exhibit 10.20

**Exhibit 10.20**

REGISTRATION RIGHTS AGREEMENT

by and among

IONIC DIGITAL INC.

and the INVESTORS named herein

Dated: June 26, 2026

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

**<u>Page</u>**

---

| | | |
|:---|:---|:---|
| 1.(a) | Definitions | 1 |
| (b) | Interpretation | 7 |
| 2. | General; Securities Subject to this Agreement | 7 |
| (a) | Grant of Rights | 7 |
| (b) | Registrable Securities | 7 |
| (c) | Holders of Registrable Securities | 8 |
| (d) | Transfer of Registration Rights | 8 |
| (e) | Mandatory Shelf Registration | 9 |
| (f) | Valid Business Reason. | 10 |
| 3. | Demand Registration | 11 |
| (a) | Request for Demand Registration | 11 |
| (b) | Incidental or "Piggy-Back" Rights with Respect to a Demand Registration | 12 |
| (c) | Effective Demand Registration | 12 |
| (d) | Expenses | 13 |
| (e) | Underwriting Procedures | 13 |
| (f) | Selection of Underwriters | 13 |
| (g) | Withdrawal | 14 |
| 4. | Incidental or "Piggy-Back" Registration | 14 |
| (a) | Request for Incidental or "Piggy-Back" Registration | 14 |
| (b) | Expenses | 15 |
| 5. | Form S-3 Registration | 15 |
| (a) | Request for Form S-3 Registration | 15 |
| (b) | Form S-3 Underwriting Procedures | 15 |
| (c) | Limitations on Form S-3 Registrations | 16 |
| (d) | Expenses | 16 |
| (e) | Automatic Shelf Registration Statement | 16 |
| (f) | Shelf Take-Downs | 17 |
| 6. | Hedging Transactions | 18 |
| 7. | Holdback Agreements | 18 |
| (a) | Restrictions on Public Sale by the Investors. | 18 |
| (b) | Restrictions on Public Sale by the Company. | 19 |
| 8. | Registration Procedures | 19 |
| (a) | Obligations of the Company | 19 |
| (b) | Seller Requirements | 23 |
| (c) | Notice to Discontinue | 23 |
| (d) | Registration Expenses | 24 |

---

i

---

| | | |
|:---|:---|:---|
| 9. | Indemnification; Contribution | 24.0 |
| (a) | Indemnification by the Company | 24.0 |
| (b) | Indemnification by the Investors | 25.0 |
| (c) | Conduct of Indemnification Proceedings | 25.0 |
| (d) | Contribution | 26.0 |
| (e) | Primacy of Indemnification | 26.0 |
| 10. | Rule 144 | 27.0 |
| 11. | Listing. | 27.0 |
| 12. | Miscellaneous | 28.0 |
| (a) | Stock Splits, etc. | 28.0 |
| (b) | No Inconsistent Agreements | 28.0 |
| (c) | Remedies | 28.0 |
| (d) | Amendments and Waivers | 28.0 |
| (e) | Notices | 28.0 |
| (f) | Consent to Electronic Notice | 30.0 |
| (g) | Permitted Assignees; Third Party Beneficiaries | 30.0 |
| (h) | Counterparts | 31.0 |
| (i) | Headings | 31.0 |
| (j) | Governing Law | 31.0 |
| (k) | Jurisdiction | 31.0 |
| (l) | Waiver Of Jury Trial | 32.0 |
| (m) | Severability | 32.0 |
| (n) | Rules of Construction | 32.0 |
| (o) | Entire Agreement | 32.0 |
| (p) | Further Assurances | 32.0 |
| (q) | Other Agreements | 32.0 |

---

ii

**REGISTRATION RIGHTS AGREEMENT**

REGISTRATION RIGHTS AGREEMENT dated as of June 26, 2026, by and among Ionic Digital Inc., a Delaware corporation (the "**Company**"), and the investors that are party to this Agreement from time to time, as set forth herein (individually as an "**Investor**" and collectively together with their respective permitted affiliates and assigns, the "**Investors**").

**WHEREAS**, on or prior to the date hereof, the Investors have purchased or otherwise acquired shares of the Company's preferred stock (the "**Preferred Stock**") pursuant to that certain Securities Purchase Agreement, dated as of June 26, 2026 (the "**Securities Purchase Agreement**");

**WHEREAS**, the Preferred Stock shall automatically convert into shares (the "**Conversion Shares**") of the Company's common stock, par value $0.00001 per share (the "**Common Stock**") in the event of (each, a "**Going Public Transaction**") (x) a transaction in which the Company lists its Common Stock on the NYSE or Nasdaq (a "**Direct Listing**"), (y) a merger or other transaction in which the Common Stock is converted into cash and/or securities, including such a transaction with a special purpose acquisition company on the NYSE or Nasdaq (a "**de-SPAC Transaction**"), or (z) a firm commitment underwritten public offering of shares of Common Stock (an "**Initial Public Offering**");

**WHEREAS**, on or prior to the date hereof, the Investors have acquired three tranches of five-year warrants to purchase shares of Common Stock at strike prices equating to pre-money equity valuations of $2.4 billion ("**Tranche 1**"), $2.8 billion ("**Tranche 2**") and $3.3 billion ("**Tranche 3**", and collectively with Tranches 1 and 2, the "**Warrants**"), a portion of which Warrants, until expiration of the Lock-Up Period (as defined herein), is non-detachable from and tied to the Preferred Stock or the Conversion Shares as set forth in the Securities Purchase Agreement; and

**WHEREAS**, to induce the Investors to enter into the Securities Purchase Agreement, the Company has agreed to provide certain registration rights with respect to the Registrable Securities (as defined herein) under the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "**Securities Act**"), and applicable state securities laws.

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. (a) <u>Definitions</u>**. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:

"<u>Affiliate</u>" means, with respect to a Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any investment fund now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person. The term "<u>affiliated</u>" shall have the correlative meaning. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as used with respect to a Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise.

"<u>Agreement</u>" means this Registration Rights Agreement as the same may be amended, supplemented, or modified in accordance with the terms hereof.

"<u>Approved Underwriter</u>" has the meaning set forth in Section 3(f) hereof.

"<u>Automatic Shelf Registration Statement</u>" means an "automatic shelf registration statement" as defined in Rule 405 promulgated under the Securities Act.

"<u>Board of Directors</u>" means the board of directors of the Company (or any duly authorized committee thereof).

"<u>Business Day</u>" means any day other than a Saturday, Sunday, any federal holiday or any other day on which banking institutions in the State of New York are authorized or required to be closed by law or governmental action.

"<u>Closing Price</u>" means, with respect to each type of Registrable Securities, as of the date of determination, (a) if such Registrable Securities are listed on a national securities exchange, the closing price per share or unit of such Registrable Security on such date as officially reported on the principal national securities exchange on which such Registrable Securities are then listed or admitted to trading, including, if applicable, the Nasdaq Official Closing Price as reflected on Nasdaq.com or the official closing price reported on the consolidated tape for any NYSE market; provided that, if no closing price is so reported, the Closing Price shall be the average of the closing bid and asked prices on such date as officially reported on such exchange, or, if no such closing price is so reported, the average of the closing bid and asked prices on such date, as officially reported on the principal national securities exchange on which such Registrable Securities are then listed or admitted to trading; or (b) if such Registrable Securities are not listed or admitted to trading on any national securities exchange, the last sale price or, if such last sale price is not reported, the average of the high bid and low asked prices on the automatic quotation system on which such Registrable Securities are then listed, as reported by a nationally recognized reporting service selected in good faith by the Company (or any successor thereto); or (c) if on any such date the Registrable Securities are not quoted on any such automatic quotation system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such Registrable Securities selected in good faith by the Company; or (d) if none of (a), (b) or (c) is applicable, a market price per share or unit determined in good faith by the Board of Directors. If trading is conducted on a continuous basis on any exchange, then the closing price shall be as set forth at 4:00 P.M. New York City time.

"<u>Common Stock</u>" has the meaning set forth in the recitals hereto.

"<u>Company</u>" has the meaning set forth in the preamble to this Agreement.

"<u>Company Underwriter</u>" has the meaning set forth in Section 4(a) hereof.

"<u>Conversion Shares</u>" has the meaning set forth in the recitals hereto.

"<u>de-SPAC Transaction</u>" has the meaning set forth in the recitals hereto.

"<u>Demand Registration</u>" has the meaning set forth in Section 3(a) hereof.

"<u>Direct Listing</u>" has the meaning set forth in the recitals hereto.

"<u>Disclosure Package</u>" means, with respect to any offering of Registrable Securities, (i) the preliminary Prospectus, (ii) each Free Writing Prospectus and (iii) all other information, in each case, that is deemed, under Rule 159 promulgated under the Securities Act, to have been conveyed to purchasers of securities at the time of sale of such securities (including, without limitation, a contract of sale).

"<u>Effectiveness Deadline</u>" has the meaning set forth in Section 2(e)(ii).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC thereunder.

"<u>Filing Deadline</u>" has the meaning set forth in Section 2(e)(i) hereof.

"<u>FINRA</u>" means the Financial Industry Regulatory Authority, Inc.

"<u>Form S-3 Shelf Registration Statement</u>" has the meaning set forth in Section 5(f) hereof.

"<u>Free Writing Prospectus</u>" means any "free writing prospectus" as defined in Rule 405 promulgated under the Securities Act.

"<u>Going Public Transaction</u>" has the meaning set forth in the recitals hereto.

"<u>Hedging Counterparty</u>" means a broker-dealer registered under Section 15(b) of the Exchange Act or an Affiliate thereof.

"<u>Hedging Transaction</u>" means any transaction involving a security linked to any Registrable Securities or any security that would be deemed to be a "derivative security" (as defined in Rule 16a-1(c) promulgated under the Exchange Act) with respect to any Registrable Securities or transaction (even if not a security) which would (were it a security) be considered such a derivative security, or which transfers some or all of the economic risk of ownership of any Registrable Securities, including, without limitation, any forward contract, equity swap, put or call, put or call equivalent position, collar, non-recourse loan, sale of exchangeable security or similar transaction. For the avoidance of doubt, the following transactions shall be deemed to be Hedging 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transactions by an Investor in which a Hedging Counterparty engages in short sales of Registrable Securities pursuant to a prospectus and may use Registrable Securities to close out its short position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) transactions pursuant to which an Investor sells short Registrable Securities pursuant to a prospectus and delivers Registrable Securities to close out its short position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) transactions by an Investor in which the Investor delivers, in a transaction exempt from registration under the Securities Act, Registrable Securities to the Hedging Counterparty who will then publicly resell or otherwise transfer such Registrable Securities pursuant to a prospectus or an exemption from registration under the Securities Act; 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) a loan or pledge of Registrable Securities to a Hedging Counterparty who may then become a selling stockholder and sell the loaned securities or, in an event of default in the case of a pledge, sell the pledged securities, in each case, in a public transaction pursuant to a prospectus.

"<u>Incidental Registration</u>" has the meaning set forth in Section 4(a) hereof.

"<u>Incidental Registration Notice</u>" has the meaning set forth in Section 4(a) hereof.

"<u>Indemnified Party</u>" has the meaning set forth in Section 9(c) hereof.

"<u>Indemnifying Party</u>" has the meaning set forth in Section 9(c) hereof.

"<u>Initial Lock-Up Agreement</u>" means, with respect to each Investor, the lock-up undertaking applicable to such Investor set forth in the Securities Purchase Agreement.

"<u>Initial Public Offering</u>" has the meaning set forth in the recitals hereto.

"<u>Initial Registration Statement</u>" has the meaning set forth in Section 2(e)(i) hereof.

"<u>Initiating Holders</u>" means one or more Investors requesting a Demand Registration pursuant to Section 3(a).

"<u>Initiating Shelf Holder</u>" has the meaning set forth in Section 5(f) hereof.

"<u>Inspector</u>" has the meaning set forth in Section 8(a)(i) hereof.

"<u>Investors</u>" means the undersigned parties who are listed on the signature pages, in each case together with their respective affiliates and managed funds that hold Registrable Securities, and any Permitted Assignee that becomes a party hereto.

"<u>Investors' Counsel</u>" has the meaning set forth in Section 8(a)(i) hereof.

"<u>Liability</u>" has the meaning set forth in Section 9(a) hereof.

"<u>Lock-Up Period</u>" means the period set forth (a) in the Initial Lock-Up Agreement, (b) in any lock-up agreement entered into with the underwriters in connection with the Going Public Transaction, not to exceed 180 days following the effective date of the initial Registration Statement filed in connection with the Going Public Transaction and (c) in any lock-up agreement entered into with the underwriters for any subsequent underwritten public offering, not to exceed 90 days following the effective date of the Prospectus relating to such underwritten public offering.

"<u>Majority Investors</u>" means beneficial owners of Registrable Securities representing more than 50% of the total number of outstanding Registrable Securities.

"<u>Market Price</u>" means, on any date of determination, the average of the daily Closing Price of the applicable type of Registrable Securities for the immediately preceding thirty days on which the national securities exchanges are open for trading; <u>provided</u>, <u>however</u>, that if the Closing Price is determined pursuant to clause (d) of the definition of Closing Price, the "Market Price" means such Closing Price on the date of determination.

"<u>Marketed Underwritten Shelf Take-Down</u>" has the meaning set forth in Section 5(f) hereof.

"<u>national securities exchange</u>" means those markets or exchanges, as defined under Section 6 of the Exchange Act, on which the Registrable Securities may be listed or admitted to trading.

"<u>New Registration Effectiveness Deadline</u>" has the meaning set forth in Section 2(e)(iii) hereof.

"<u>New Registration Filing Deadline</u>" has the meaning set forth in Section 2(e)(iii) hereof.

"<u>New Registration Statement</u>" has the meaning set forth in Section 2(e)(iii) hereof.

"<u>Non-Marketed Underwritten Shelf Take-Down</u>" has the meaning set forth in Section 5(f) hereof.

"<u>OTC Markets</u>" means the electronic inter-dealer quotation system operated by OTC Markets Group Inc. (or any successor thereto), including the OTCQX Best Market, the OTCQB Venture Market and the Pink Open Market (or any successor thereto).

"<u>Permitted Assignee</u>" means, with respect to any Person, to the extent applicable, (i) such Person's parents, spouse, siblings, siblings' spouses, children (including stepchildren and adopted children), children's spouses, grandchildren or grandchildren's spouses thereof ("<u>Family Members</u>"), (ii) a corporation, partnership or limited liability company, a majority of the beneficial interests of which shall be held by such Person, such Person's Affiliates and/or such Person's Family Members, (iii) a trust, the beneficiaries of which are such Person and/or such Person's Family Members, (iv) such Person's heirs, executors, administrators, estate or a trust under such Person's will, (v) an entity described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, that is established by such Person, (vi) any Affiliate of such Person, (vii) any Person to whom such Person transfers Registrable Securities representing at least 5% of the outstanding Common Stock as of the date of such transfer and (viii) if such Person is a corporation, partnership or limited liability company, any wholly-owned subsidiary of such entity or the direct or indirect partners, members, stockholders or Affiliates of such entity.

"<u>Permitted Withdrawal</u>" has the meaning set forth in Section 3(g) hereof.

"<u>Person</u>" means any individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company, government (or an agency or political subdivision thereof) or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity.

"<u>Pledgee</u>" has the meaning set forth in Section 2(d)(i) hereof.

"<u>Preferred Stock</u>" has the meaning set forth in the recitals hereto.

"<u>Prospectus</u>" means the prospectus related to any Registration Statement (including, without limitation, a prospectus or prospectus supplement that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance on Rule 415, 430A, 430B or 430C under the Securities Act, as amended or supplemented by any amendment or prospectus supplement), including post-effective amendments, and all materials incorporated by reference in such prospectus.

"<u>Records</u>" has the meaning set forth in Section 8(a)(viii) hereof.

"<u>Registrable Securities</u>" means, subject to Section 2(b) and Section 2(d)(i) hereof, whether now or hereafter owned by an Investor, any and all (i) Conversion Shares issued or issuable in exchange for the Preferred Stock, (ii) the Warrants and the shares of Common Stock issued or issuable upon exercise of the Warrants (such shares the "**Warrant Shares**") and (iii) any other equity security of the Company issued or issuable with respect to any Conversion Shares issued or issuable in exchange for the Preferred Stock, Warrants or Warrant Shares, upon exercise or conversion of convertible or exchangeable securities, by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or reorganization.

"<u>Registration Expenses</u>" has the meaning set forth in Section 8(d) hereof.

"<u>Registration Statement</u>" means a registration statement filed pursuant to the Securities Act.

"<u>S-3 Initiating Holders</u>" means one or more Investors initiating an S-3 Registration pursuant to Section 5(a).

"<u>S-3 Participating Stockholders</u>" has the meaning set forth in Section 5(a) hereof.

"<u>S-3 Registration</u>" has the meaning set forth in Section 5(a) hereof.

"<u>SEC</u>" means the Securities and Exchange Commission or any similar agency then having jurisdiction to enforce the Securities Act or Exchange Act.

"<u>Securities Act</u>" has the meaning set forth in the recitals hereto.

"<u>Securities Purchase Agreement</u>" has the meaning set forth in the recitals hereto.

"<u>Selling Stockholders</u>" has the meaning set forth in Annex B hereto.

"<u>Shelf Take-Down</u>" has the meaning set forth in Section 5(f) hereof.

"<u>underwritten public offering</u>" of securities means a public offering of such securities registered under the Securities Act in which an underwriter, placement agent or other intermediary participates in the distribution of such securities, including, without limitation, a Hedging Transaction in which a Hedging Counterparty participates.

"<u>Underwritten Shelf Take-Down</u>" has the meaning set forth in Section 5(f) hereof.

"<u>Underwritten Shelf Take-Down Notice</u>" has the meaning set forth in Section 5(f) hereof.

"<u>Valid Business Reason</u>" has the meaning set forth in Section 2(f) hereof.

"<u>Warrants</u>" has the meaning set forth in the recitals hereto.

"<u>WKSI</u>" means a "well-known seasoned issuer" as defined under Rule 405.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>Interpretation</u>**. For purposes of this Agreement, unless otherwise noted:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All references to laws, rules, regulations and forms in this Agreement shall be deemed to be references to such laws, rules, regulations and forms, as amended from time to time or, to the extent replaced, the comparable successor laws, rules, regulations and forms thereto in effect at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All references to agencies, self-regulatory organizations or governmental entities in this Agreement shall be deemed to be references to the comparable successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All references to agreements and other contractual instruments shall be deemed to be references to such agreements or other instruments as they may be amended, waived, supplemented or modified from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All references to any amount of securities (including Registrable Securities) shall be deemed to be a reference to such amount measured on an as-converted or as-exercised basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>General; Securities Subject to this Agreement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) <u>Grant of Rights</u>**. The Company hereby grants registration rights to the Investors upon the terms and conditions set forth 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;**(b) <u>Registrable Securities</u>**. For the purposes of this Agreement, Registrable Securities held by any Investor will cease to be Registrable Securities, when (i) a Registration Statement covering such Registrable Securities has been declared effective under the Securities Act by the SEC and such Registrable Securities have been disposed of pursuant to such effective Registration Statement, (ii) such Registrable Securities are sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met, (iii) such Registrable Securities are otherwise transferred, the Company has delivered a new certificate or other evidence of ownership for such securities not bearing a restrictive legend and such Registrable Securities may be resold without limitation or subsequent registration under the Securities Act; or (iv) the Registrable Securities have ceased to be outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) <u>Holders of Registrable Securities</u>**. A Person is deemed to be a holder of Registrable Securities whenever such Person owns of record or beneficially owns such Registrable Securities, or holds an option to purchase, or a security convertible into or exercisable or exchangeable for, Registrable Securities whether or not such purchase, conversion, exercise or exchange has actually been effected. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company may act upon the basis of the instructions, notice or election received from the registered owner of such Registrable Securities. Registrable Securities issuable upon exercise of an option or upon conversion, exercise or exchange of another security shall be deemed outstanding for the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) <u>Transfer of Registration Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Investor may transfer or pledge Registrable Securities with the associated registration rights under this Agreement (including transfers occurring by operation of law or by reason of intestacy) to a Permitted Assignee or a pledgee ("**Pledgee**") only if (1) such Permitted Assignee or Pledgee agrees in writing to be bound as an Investor by the provisions of this Agreement, such agreement being substantially in the form of <u>Annex A</u> hereto, and (2) (A) immediately following such transfer or pledge, the further disposition or transfer of such Registrable Securities by such Permitted Assignee or Pledgee would be restricted under the Securities Act and, in the opinion of counsel reasonably satisfactory to the Company, the entire amount of all such Registrable Securities could not be sold in a single sale, without any limitation as to volume or manner of sale pursuant to Rule 144 promulgated under the Securities Act or (B) such Permitted Assignee, together with its Affiliates, beneficially owns Registrable Securities representing more than 5% of the outstanding shares of Common Stock as of the date of such transfer. Upon any transfer or pledge of Registrable Securities other than as set forth in this Section 2(d), such securities shall no longer constitute Registrable Securities, except that any Registrable Securities that are pledged or made the subject of a Hedging Transaction, which Registrable Securities are not ultimately disposed of by the Investor pursuant to such pledge or Hedging Transaction shall be deemed to remain "**Registrable Securities**," notwithstanding the release of such pledge or the completion of such Hedging Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to Section 2(b) hereof, if an Investor assigns its rights under this Agreement in connection with the transfer of less than all of its Registrable Securities, the Investor shall retain its rights under this Agreement with respect to its remaining Registrable Securities. If an Investor assigns its rights under this Agreement in connection with the transfer of all of its Registrable Securities, such Investor shall have no further rights or obligations under this Agreement, except under Section 9 hereof in respect of offerings in which it participated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) <u>Mandatory Shelf 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;(i) **<u>Mandatory Registration</u>**. The Company shall, as promptly as reasonably practicable and in any event no later than 60 days after the consummation of a Going Public Transaction (the "**Filing Deadline**"), prepare and file with the SEC an initial Registration Statement (the "**Initial Registration Statement**") on Form S-1 (or, if the Company is then eligible, Form S-3) covering the resale of all Registrable Securities. The Company may satisfy such requirement by electing to cover the resale of all Registrable Securities on the Registration Statement relating to the Going Public Transaction. Before filing the Registration Statement, the Company shall furnish the Investors with a copy of the Registration Statement. Subject to any SEC comments, such Registration Statement shall include the plan of distribution substantially in the form attached hereto as **Annex B**, or, in the case of the Registration Statement relating to the Going Public Transaction, **Annex C**. Such Registration Statement also shall cover, to the extent allowable under the Securities Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. Such Registration Statement shall not include any shares of Common Stock or other securities for the account of any other holder of securities of the Company without the prior written consent of the Majority Investors. The Company shall (a) use commercially reasonable efforts to address in each such document prior to being so filed with the SEC such comments as the Investors or Investors' Counsel shall reasonably propose, and (b) not file any Registration Statement or Prospectus or any amendment or supplement thereto containing information regarding the Investor to which such Investor reasonably objects, unless such information is required to comply with any applicable law or regulation. The Investors shall furnish all information reasonably requested by the Company and as shall be reasonably required in connection with any registration referred to in this Agreement. The Company shall use its reasonable best efforts to keep the Initial Registration Statement continuously effective, supplemented and amended, until such date as there are no longer any Registrable Securities (including by filing one or more subsequent shelf registration statements if any shelf ceases to be effective), and shall use its reasonable best efforts to convert the Form S-1 to a Form S-3 as soon as practicable after the Company becomes eligible to use Form S-3.

Within 10 Business Days after the Warrants (or any portion of them) become separately transferable, the Company shall file a new Registration Statement, or amend or supplement the Initial Registration Statement, to cover the resale of the Warrants, unless they are already covered by an effective 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;(ii) **<u>Effectiveness</u>**. The Company shall use its reasonable best efforts to have the Initial Registration Statement and any amendment declared effective by the SEC at the earliest possible date but no later than the earlier of (a) the 60<sup>th</sup> calendar day following the initial filing date of the Initial Registration Statement if the SEC notifies the Company that it will "review" the Initial Registration Statement and (b) the 5<sup>th</sup> Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that the Initial Registration Statement will not be "reviewed" or will not be subject to further review (the "**Effectiveness Deadline**"); provided, however, that such Effectiveness Deadline shall not apply in the event that the Registrable Securities are included on the Registration Statement relating to the Going Public Transaction. The Company shall notify the Investors by e-mail as promptly as practicable, and in any event, within 12 hours, after the Registration Statement is declared effective or is supplemented and shall provide the Investors with copies of any Prospectus to be used in connection with the sale or other disposition of the securities covered thereby. The Company shall use reasonable best efforts to keep the Initial Registration Statement continuously effective pursuant to Rule 415 promulgated under the Securities Act and available for the resale by the Investors of all of the Registrable Securities covered thereby at all times. The Initial Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **<u>Sufficient Number of Shares Registered</u>**. In the event the number of shares available under the Initial Registration Statement at any time is insufficient to cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the Initial Registration Statement or file a new registration statement (together with any prospectuses or prospectus supplements thereunder, a "**New Registration Statement**"), so as to cover all of such Registrable Securities as soon as reasonably practicable, but in any event not later than ten Business Days after the necessity therefor arises (the "**New Registration Filing Deadline**"). The Company shall use its reasonable best efforts to have such amendment and/or New Registration Statement become effective as soon as reasonably practicable following the filing thereof but no later than the earlier of (a) the 60<sup>th</sup> calendar day following the initial filing date of the New Registration Statement if the SEC notifies the Company that it will "review" the New Registration Statement and (b) the fifth Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that the New Registration Statement will not be "reviewed" or will not be subject to further review (the earlier of such dates, the "**New Registration Effectiveness Deadline**"). The provisions of Section 2(e)(i) and Section 2(e)(ii) shall apply to the New Registration Statement, except as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Valid Business Reason.</u> If (1) the Board of Directors, in its good faith judgment, determines that any registration of Registrable Securities should not be made or continued because it would materially impede, delay or interfere with any proposed financing, offer and sale of securities, acquisition, merger, tender offer, business combination, corporate reorganization or other significant transaction involving the Company or because such registration would require the Company to disclose material nonpublic information that would not otherwise be required to be disclosed under applicable law, (2) the Company has a bona fide business purpose for preserving the confidentiality of such proposed transaction or information and (3) the Company has prohibited its executive officers and directors from purchasing, selling or otherwise transacting in the Company's securities as a result of the proposed transaction or information pursuant to the Company's securities trading policies (a "Valid Business Reason"), (x) the Company may postpone filing a Registration Statement (but not the preparation of the Registration Statement), delay the effectiveness of the Initial Registration Statement or any other Registration Statement, or suspend the use of any Prospectus until such Valid Business Reason no longer exists, but in no event (i) for more than 60 consecutive days per occasion or (ii) for a total of more than 120 total days in any 12 month period after the occurrence of the Valid Business Reason and (y) in case a Registration Statement has been filed relating to a Demand Registration, the Company may postpone amending or supplementing such Registration Statement (in which case, if the Valid Business Reason no longer exists or if more than 30 consecutive days have passed since such postponement, the Initiating Holders may request a new Registration Statement (which request shall not be counted as a Demand Registration for purposes of Section 3(a) below) or request the prompt amendment or supplement of such Registration Statement).

The Company shall (a) give written notice to all Investors of its determination to postpone filing, amending or supplementing a Registration Statement and of the fact that the Valid Business Reason for such postponement no longer exists, in each case, promptly after the occurrence thereof and (b) use commercially reasonable efforts to terminate any delay caused by a Valid Business Reason as promptly as practicable. Notwithstanding anything to the contrary contained herein, the Company may not postpone a filing, amendment or supplement under this Section 2(f) due to a Valid Business Reason (i) for more than 60 consecutive days per occasion or (ii) for a total of more than 120 days in any 12-month period. Each request for a Demand Registration by the Initiating Holders shall state the type and amount of the Registrable Securities proposed to be sold and the intended method of disposition thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <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;**(a) <u>Request for Demand Registration</u>**.

To the extent permitted by applicable law and regulations, at any time beginning 180 days after the effective date of the Registration Statement for, or the date of, the Going Public Transaction, any Initiating Holder may make a written request to the Company to register, and the Company shall register, under the Securities Act (other than pursuant to a Registration Statement on Form S-4 or S-8), in accordance with the terms of this Agreement (a "**Demand Registration**"), the number of Registrable Securities stated in such request; provided, however, that the Company shall not be obligated to effect (i) more than (x) one such Demand Registration in any 12 month period and (y) four such Demand Registrations in the aggregate initiated by the Investors, (ii) a Demand Registration if the Initiating Holders propose to sell Registrable Securities in such Demand Registration at an anticipated aggregate offering price (calculated based upon the Market Price of the Registrable Securities on the date on which the Company receives the written request for such Demand Registration) to the public of less than $40,000,000 (calculated prior to any reduction by an underwriter pursuant to Section 3(e)) unless such Demand Registration includes all of the then-outstanding Registrable Securities held by the applicable Initiating Holder or (iii) any such Demand Registration within the Lock-Up Period (or such shorter period as the Company may determine in its sole discretion) after the effective date of any other Registration Statement of the Company (other than a Registration Statement on Form S-4 or S-8).

If the Board of Directors, in its good faith judgment, determines that a Valid Business Reason exists, (x) the Company may postpone filing a Registration Statement (but not the preparation of the Registration Statement) relating to a Demand Registration or suspend the use of any Prospectus until such Valid Business Reason no longer exists, but in no event (i) for more than 60 consecutive days per occasion or (ii) for a total of more than 120 days in any 12 month period after the date when the Demand Registration was requested or, if later, after the occurrence of the Valid Business Reason and (y) in case a Registration Statement has been filed relating to a Demand Registration, the Company may postpone amending or supplementing such Registration Statement (in which case, if the Valid Business Reason no longer exists or if more than 60 consecutive days have passed since such postponement, the Initiating Holders may request a new Demand Registration (which request shall not be counted as an additional Demand Registration for purposes of this Section 3(a)) or request the prompt amendment or supplement of such Registration Statement).

The Company shall (a) give written notice to all Investors of its determination to postpone filing, amending or supplementing a Registration Statement and of the fact that the Valid Business Reason for such postponement no longer exists, in each case, promptly after the occurrence thereof and (b) use commercially reasonable efforts to terminate any delay caused by a Valid Business Reason as promptly as practicable. Notwithstanding anything to the contrary contained herein, the Company may not postpone a filing, amendment or supplement under this Section 3(a) due to a Valid Business Reason (i) for more than 60 consecutive days per occasion or (ii) for a total of more than 120 days in any 12-month period. Each request for a Demand Registration by the Initiating Holders shall state the type and amount of the Registrable Securities proposed to be sold and the intended method of disposition thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>Incidental or "Piggy-Back" Rights with Respect to a Demand Registration</u>.**

Any Investor that has not requested a registration under Section 3(a) hereof may, pursuant to this Section 3(b), offer its Registrable Securities under any Demand Registration. The Company shall (i) as promptly as practicable, but in no event later than 5 Business Days after the receipt of a request for a Demand Registration from the Initiating Holders, give written notice thereof to all of the Investors (other than Initiating Holders), which notice shall specify the type and number of Registrable Securities subject to the request for Demand Registration and the intended method of disposition of such Registrable Securities, and (ii) subject to Section 3(e) hereof, include in the Registration Statement filed pursuant to the Demand Registration all of the Registrable Securities held by such Investors from whom the Company has received a written request for inclusion therein within 5 Business Days of the date on which the Company sent the written notice referred to in clause (i) above. Each such request by such Investors shall specify the type and number of Registrable Securities proposed to be registered. The failure of any Investor to respond within such five Business Day period referred to in clause (ii) above shall be deemed to be a waiver of such Investor's rights under this Section 3(b) with respect to such Demand Registration. Any Investor may waive its rights under this Section 3(b) by giving written notice 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;**(c) <u>Effective Demand Registration</u>**.

Subject to Section 3(a), the Company shall use its reasonable best efforts (taking into account, among other things, accounting and regulatory matters) to file a Registration Statement relating to the Demand Registration and to use its commercially reasonable efforts to cause such Registration Statement to become effective as promptly as practicable after it receives a request under Section 3(a) hereof and to remain continuously effective for the lesser of (i) the period during which all Registrable Securities registered in the Demand Registration are sold or (ii) 180 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) <u>Expenses</u>**.

Except as provided in Section 3(g) or 8(d) hereof, the Company shall pay all Registration Expenses in connection with a Demand Registration, whether or not such Demand Registration becomes 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;**(e) <u>Underwriting Procedures</u>**.

If the Initiating Holders so elect, the Company shall use its commercially reasonable efforts to cause the offering made pursuant to such Demand Registration pursuant to this Section 3 to be in the form of a firm commitment underwritten public offering and the managing underwriter or underwriters selected for such offering shall be the Approved Underwriter selected in accordance with Section 3(f) hereof. In connection with any Demand Registration under this Section 3 involving an underwritten offering, none of the Registrable Securities held by any Investor making a request for inclusion of such Registrable Securities pursuant to Section 3(a) or 3(b) hereof shall be included in such underwritten offering unless such Investor accepts the terms of the offering as agreed upon by the Company, the Initiating Holders and the Approved Underwriter (including, without limitation, offering price, underwriting commissions or discounts and lockup agreement terms), and then only in such quantity as set forth below. If the Approved Underwriter advises the Company that the aggregate amount of such Registrable Securities requested to be included in such offering is sufficiently large to have a material adverse effect on the distribution or sales price of the Registrable Securities in such offering, then the Company shall include in such Demand Registration, to the extent of the amount that the Approved Underwriter believes may be sold without causing such material adverse effect, <u>first</u>, such number of Registrable Securities of the Investors that are participating in such offering pursuant to Section 3(a) or 3(b) hereof, which Registrable Securities shall be allocated pro rata among the Investors participating in the offering, based on the aggregate number of Registrable Securities held by each such Investor, <u>second</u>, any other securities of the Company requested by any other holders (including any other Investors) to be included in such registration, pro rata among such other holders based on the number of securities held by each such holder, except to the extent any such holders have agreed under existing agreements to grant priority with regard to participation in such offering to any other holders of securities of the Company, and <u>third</u>, securities offered by the Company for its own account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) <u>Selection of Underwriters</u>**. If any Demand Registration or S-3 Registration, as the case may be, of Registrable Securities is in the form of an underwritten public offering, the Initiating Holders or S-3 Initiating Holders, as the case may be, shall select and obtain one or more investment banking firms of national or regional reputation to act as the managing underwriter or underwriters of the offering; <u>provided</u>, <u>however</u>, that such firm or firms shall, in any case, also be approved by the Company, such approval not to be unreasonably withheld, delayed or conditioned. If any S-3 Registration of Registrable Securities is in the form of a Hedging Transaction, the S-3 Initiating Holders shall select and obtain an investment banking firm of national or regional reputation to act as the Hedging Counterparty of the Hedging Transaction; <u>provided</u>, <u>however</u>, that such firm shall, in any case, also be approved by the Company, such approval not to be unreasonably withheld, delayed or conditioned. An investment banking firm or firms selected pursuant to this Section 3(f) shall be referred to as the "**Approved Underwriter**" 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;**(g) <u>Withdrawal</u>**. The Initiating Holders shall be entitled to withdraw or revoke a request for a Demand Registration without the prior written consent of the Company if (i) such withdrawal or revocation is as a result of facts or circumstances arising after the date on which a request for a Demand Registration was made and the Initiating Holders reasonably determine that participation in such registration would have a material adverse effect on the Initiating Holders, (ii) the Closing Price is more than twenty percent lower than the Closing Price on the date the Initiating Holders requested such Demand Registration or (iii) the Initiating Holders agree to pay all fees and expenses incurred by the Company in connection with such withdrawn registration (each, a "**<u>Permitted Withdrawal</u>**"). If a Permitted Withdrawal occurs, the related Demand Registration shall not be counted as a Demand Registration for purposes of Section 3(a) hereof. Any Permitted Withdrawal shall constitute and effect an automatic withdrawal by all other Initiating Holders and any other Investor participating in such Demand Registration pursuant to the provisions of Section 3(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Incidental or "Piggy-Back" 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;**(a) <u>Request for Incidental or "Piggy-Back" Registration</u>.** 

If the Company proposes to file a Registration Statement with respect to an offering of Common Stock, or Warrants by the Company for its own account (other than a Registration Statement on Form S-4 or S-8) or for the account of any stockholder of the Company other than Investors pursuant to Sections 3 and 5 hereof, then the Company shall give written notice (an "**Incidental Registration Notice**") of such proposed filing to each of the Investors at least ten Business Days before the anticipated filing date, which notice shall describe the proposed registration and distribution and offer such Investors the opportunity to register the number of Registrable Securities that each such Investor may request (an "**Incidental Registration**"). Any such request by an Investor must be made in writing and received by the Company within five Business Days of the date on which the Company sent the Incidental Registration Notice. The failure of any Investor to respond to an Incidental Registration Notice within five Business Days shall be deemed a waiver of such Investor's rights under this Section 4(a) with respect to such Incidental Registration. The Company shall use its commercially reasonable efforts to cause the managing underwriter or underwriters in the case of a proposed underwritten offering (the "**Company Underwriter**") to permit each Investor who has requested in writing to participate in the Incidental Registration pursuant to this Section 4(a) to include the number of such Investor's Registrable Securities indicated by such Investor in such offering on the same terms and conditions as the Company or the account of such other stockholder, as the case may be, included therein. Any withdrawal of the Registration Statement by the Company for any reason shall constitute and effect an automatic withdrawal of any Incidental Registration related thereto. In connection with any Incidental Registration under this Section 4(a) involving an underwritten offering, the Company shall not be required to include any Registrable Securities in such underwritten offering unless the Investors thereof accept the terms of the underwritten offering as agreed upon between the Company, such other stockholders, if any, and the Company Underwriter (including, without limitation, offering price, underwriting commissions or discounts and lockup agreement terms), and then only in such quantity as set forth below. If the Company Underwriter determines that the aggregate amount of the securities requested to be included in such offering is sufficiently large to have a material adverse effect on the distribution or sales price of the securities in such offering, then the Company shall include in such Incidental Registration, to the extent of the amount that the Company Underwriter believes may be sold without causing such material adverse effect, <u>first</u>, (i) all of the securities to be offered for the account of the Company, in the case of a Company initiated Incidental Registration or (ii) all of the securities to be offered for the account of the stockholders who have requested such Incidental Registration, pro rata among such requesting stockholders based on the number of securities held by each such holder, <u>second</u>, any Registrable Securities and any other shares of Common Stock, or Warrants, as applicable, requested by holders thereof in the case of an Incidental Registration initiated by the Company or by stockholders of the Company to be included in such registration (to the extent that the holders of such securities do not have priority to be included in such registration), pro rata among the Investors and such other holders based on the number of securities held by each such holder, and <u>third</u>, all of the securities to be offered for the account of the Company, in the case of an Incidental Registration initiated by any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>Expenses</u>**. Except as provided in Section 8(d) hereof, the Company shall bear all Registration Expenses in connection with any Incidental Registration pursuant to this Section 4, whether or not such Incidental Registration becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Form S-3 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;**(a) <u>Request for Form S-3 Registration</u>**. Upon the Company becoming eligible for use of Form S-3 under the Securities Act in connection with a secondary public offering of its equity securities, in the event that the Company shall receive from any S-3 Initiating Holders a written request that the Company register under the Securities Act on Form S-3 (an "**S-3 Registration**") the sale of all or a portion of the Registrable Securities owned by such S-3 Initiating Holder (which S-3 Registration may be a shelf registration pursuant to Rule 415 promulgated under the Securities Act, in which case the provisions of Section 5(f) shall apply), the Company shall give written notice of such request to all of the other Investors (other than S-3 Initiating Holders) as promptly as practicable but in no event later than ten Business Days before the anticipated filing date of such Form S-3, which notice shall describe the proposed registration, the intended method of disposition of such Registrable Securities and any other information that at the time would be appropriate to include in such notice, and offer such other Investors the opportunity to register the number of Registrable Securities as each such Investor may request in writing to the Company, given within ten Business Days of the date on which the Company sent the written notice of such registration. Each request for an S-3 Registration by an S-3 Initiating Holder shall state the type and number of the Registrable Securities proposed to be registered and the intended method of disposition thereof. With respect to each S-3 Registration, the Company shall, subject to Section 5(b) hereof, (i) include in such offering the Registrable Securities of the S-3 Initiating Holders and the Investors who have requested in writing to participate in such registration on the same terms and conditions as the Registrable Securities of the S-3 Initiating Holders included therein (collectively, the "**S-3 Participating Stockholders**") and (ii) use its commercially reasonable efforts to file a Registration Statement relating to the S-3 Registration (taking into account, among other things, accounting and regulatory matters) and to use its commercially reasonable efforts to cause such Registration Statement to become effective as promptly as practicable after it receives a request under this Section 5(a). Notwithstanding the foregoing, immediately upon determination of the price at which such Registrable Securities are to be sold in an S-3 Registration that is a firm commitment underwritten public offering, if such price is below the price which the S-3 Initiating Holders find acceptable, the S-3 Initiating Holders shall then have the right, by written notice to the Company, to withdraw their Registrable Securities from being included in such offering; <u>provided</u>, that such a withdrawal by the S-3 Initiating Holders shall constitute and effect an automatic withdrawal by all other S-3 Participating Stockholders. If the S-3 Initiating Holders request, and if the Company is a WKSI, the Company shall cause such S-3 Registration to be made pursuant to an Automatic Shelf Registration Statement and may omit the names of the S-3 Participating Stockholders and the amount of the Registrable Securities to be offered thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>Form S-3 Underwriting Procedures</u>**. If the S-3 Initiating Holders so elect, the Company shall cause such S-3 Registration pursuant to this Section 5 to be in the form of a firm commitment underwritten public offering and the managing underwriter or underwriters selected for such offering shall be the Approved Underwriter selected in accordance with Section 3(f) hereof. In connection with any S-3 Registration under this Section 5 involving an underwritten public offering, none of the Registrable Securities held by any Investor making a request for inclusion of such Registrable Securities pursuant to Section 5(a) hereof shall be included in such underwritten offering unless such Investor accepts the terms of the offering as agreed upon by the Company, the S-3 Initiating Holders and the Approved Underwriter (including, without limitation, offering price, underwriting commissions and discounts and lockup agreement terms) and then only in such quantity as set forth below. If the Approved Underwriter advises the Company that the aggregate amount of such Registrable Securities requested to be included in such offering is sufficiently large to have a material adverse effect on the distribution or sales price of the Registrable Securities in such offering then the Company shall include in such offering, to the extent of the amount that the Approved Underwriter believes may be sold without causing such material adverse effect, <u>first</u>, such number of Registrable Securities of the Investors participating in the offering under Section 5(a) hereof, which Registrable Securities shall be allocated pro rata among such Investors participating in the offering, based on the number of Registrable Securities held by each such Investor, <u>second</u>, any other securities of the Company requested by holders thereof to be included in such registration, except to the extent any such holders have agreed under existing agreements to grant priority with regard to participation in such offering to any other holders of securities of the Company, and <u>third</u>, securities offered by the Company for its own account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) <u>Limitations on Form S-3 Registrations</u>**. If the Board of Directors, in its good faith judgment, determines that a Valid Business Reason exists, (x) the Company may postpone filing a Registration Statement relating to an S-3 Registration (but not the preparation of the Registration Statement) until such Valid Business Reason no longer exists, but in no event (i) on more than two occasions or (ii) for more than 30 consecutive days per occasion or (iii) for a total of more than 60 days in any 12 month period after the date when the S-3 Registration was requested or, if later, after the occurrence of the Valid Business Reason and (y) in case a Registration Statement has been filed relating to an S-3 Registration, the Company may postpone amending or supplementing such Registration Statement (in which case, if the Valid Business Reason no longer exists or if more than 30 consecutive days have passed since such postponement, the S-3 Initiating Holders may request the prompt amendment or supplement of such Registration Statement or a new S-3 Registration). The Company shall (a) give written notice to all Investors of its determination to postpone or delay amending or supplementing a Registration Statement and of the fact that the Valid Business Reason for such postponement or delay no longer exists, in each case, promptly after the occurrence thereof and (b) use commercially reasonable efforts to terminate any delay caused by a Valid Business Reason as promptly as practicable. Notwithstanding anything to the contrary contained herein, the Company may not postpone a filing or delay amending or supplementing a filing under this Section 5(c) due to a Valid Business Reason (i) on more than two occasions or for more than 30 consecutive days or (ii) for a total of more than 60 days in any 12 month period. In addition, the Company shall not be required to effect any registration pursuant to Section 5(a) hereof (i) within the Lock-Up Period, (ii) if Form S-3 is not available for such offering by the S-3 Initiating Holders or (iii) if the S-3 Initiating Holders, together with the Investors (other than S-3 Initiating Holders) registering Registrable Securities in such registration, propose to sell their Registrable Securities at an aggregate price (calculated based upon the Market Price of the Registrable Securities on the last date on which the Company could receive requests for inclusion in such S-3 Registration under Section 5(a) hereof) to the public of less than $20,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) <u>Expenses</u>**. Except as provided in Section 8(d) hereof, the Company shall bear all Registration Expenses in connection with any S-3 Registration pursuant to this Section 5, whether or not such S-3 Registration becomes 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;**(e) <u>Automatic Shelf Registration Statement</u>**. After the Registration Statement with respect to an S-3 Registration that is an Automatic Shelf Registration Statement becomes effective, upon written request by an S-3 Initiating Holder, the Company shall, as promptly as practicable after receiving such request, (i) file with the SEC a prospectus supplement naming the S-3 Participating Stockholders as selling stockholders and the amount of Registrable Securities to be offered and include, to the extent not included or incorporated by reference in the Registration Statement, any other information omitted from the Prospectus used in connection with such Registration Statement as permitted by Rule 430B promulgated under the Securities Act (including the plan of distribution and the names of any underwriters, placement agents or brokers) and (ii) pay any necessary filing fees to the SEC within the time period required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) <u>Shelf Take-Downs</u>**. Any Investor (an "**Initiating Shelf Holder**") that holds Registrable Securities included in a Form S-3 that provides for offers and sales of Registrable Securities on a delayed or continuous basis pursuant to Rule 415 of the Securities Act (a "Form S-3 Shelf Registration Statement") may initiate an offering or sale of all or part of such Registrable Securities (a "**Shelf Take-Down**"), in which case the provisions of this Section 5(f) shall apply. Unless otherwise required pursuant to clauses (i) and (ii) below, no S-3 Initiating Holder shall be required to provide any other Investors with notice of a proposed Shelf Take-Down. For the avoidance of doubt, it is understood and agreed that a Shelf Take-Down shall not be considered a Demand Registration for purposes of Section 3 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If in connection with any Shelf Take-Down in which the S-3 Initiating Holder proposes to sell Registrable Securities to the public at an aggregate price to the public in excess of $20,000,000, the S-3 Initiating Holders so elect in a written request delivered to the Company (an "**<u>Underwritten Shelf Take-Down Notice</u>**"), a Shelf Take-Down may be in the form of an underwritten public offering (an "**<u>Underwritten Shelf Take-Down</u>**") and, subject to the limitations set forth in the proviso to Section 5(a), the Company shall file and effect an amendment or supplement to its Form S-3 Shelf Registration Statement for such purpose as soon as practicable. Such S-3 Initiating Holders shall indicate in such Underwritten Shelf Take-Down Notice whether it intends for such Underwritten Shelf Take-Down to involve a customary "road show" (including an "electronic road show") or other substantial marketing effort by the underwriters (a "**Marketed Underwritten Shelf Take-Down**"). Upon receipt of an Underwritten Shelf Take-Down Notice indicating that such Underwritten Shelf Take-Down will be a Marketed Underwritten Shelf Take-Down, the Company shall promptly (but in any event no later than three Business Days prior to the expected date of such Marketed Underwritten Shelf Take-Down) give written notice of such Marketed Underwritten Shelf Take-Down to all other S-3 Participating Stockholders and shall permit the participation of all such S-3 Participating Stockholders that request inclusion in such Marketed Underwritten Shelf Take-Down who respond in writing within ten Business Days after the receipt of such notice of their election to participate. The provisions of Section 5(b) (other than the first sentence thereof) shall apply with respect to the right of the Initiating Shelf Holder and any other Shelf Holder to participate in any Underwritten Shelf Take-Down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If any Initiating Shelf Holder desires to effect a Shelf Take-Down that does not constitute a Marketed Underwritten Shelf Take-Down (a "**<u>Non-Marketed Underwritten Shelf Take-Down</u>**"), such Initiating Shelf Holder shall so indicate in a written request delivered to the Company no later than two Business Days prior to the expected date of such Non-Marketed Underwritten Shelf Take-Down, which request shall include (A) the total number of Registrable Securities expected to be offered and sold in such Non-Marketed Underwritten Shelf Take-Down, (B) the expected plan of distribution of such Non-Marketed Underwritten Shelf Take-Down and (C) the action or actions required (including the timing thereof) in connection with such Non-Marketed Underwritten Shelf Take-Down, and, subject to the limitations set forth in Section 5(c), the Company shall file and effect an amendment or supplement to its Form S-3 Shelf Registration Statement for such purpose as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Hedging Transactions</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In any S-3 Registration, the S-3 Initiating Holders may (on behalf of themselves and the Investors) elect to engage in a Hedging Transaction. The Company agrees that, in connection with any proposed Hedging Transaction, if, in the reasonable judgment of the S-3 Initiating Holders (after good-faith consultation with counsel to the Company), it is necessary or desirable to register under the Securities Act such Hedging Transaction or sales or transfers (whether short or long) of Registrable Securities in connection therewith, then the Company shall use commercially reasonable efforts to take such actions (which may include, among other things, the filing of a prospectus supplement or post-effective amendment to a Registration Statement to include additional or changed information that is material or is otherwise required to be disclosed, including, without limitation, a description of such Hedging Transaction, the name of the Hedging Counterparty, identification of the Hedging Counterparty or its Affiliates as underwriters or potential underwriters, if applicable, or any change to the plan of distribution) as may reasonably be required to register such Hedging Transaction or sales or transfers of Registrable Securities in connection therewith under the Securities Act in a manner consistent with the rights and obligations of the Company hereunder with respect to the registration of Registrable Securities. Any information regarding the Hedging Transaction included in a Registration Statement, Prospectus or Free Writing Prospectus pursuant to this Section 6(a) shall, for purposes of Section 9 hereof, be deemed to be information provided by the Investor that is party to such Hedging Transaction and is selling Registrable Securities pursuant to such Registration Statement for purposes of Section 9 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;(b) The selection of any Hedging Counterparty shall not be subject to Section 3(f) hereof, but the Hedging Counterparty shall be selected by the Investors holding a majority of the Registrable Securities subject to the Hedging Transaction that are proposed to be included in 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;(c) If in connection with a Hedging Transaction, a Hedging Counterparty or any Affiliate thereof is (or may be considered) an underwriter or selling stockholder, then it shall be required to provide customary indemnities to the Company regarding the plan of distribution and like matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Holdback Agreements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restrictions on Public Sale by the Investors</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;(i) Each Investor agrees to enter into an Initial Lock-Up 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;(ii) To the extent requested by the Approved Underwriter or the Company Underwriter, as the case may be, in the case of an underwritten public offering, each Investor (other than any Pledgee or Hedging Counterparty) agrees (x) not to effect any public sale or distribution of any Registrable Securities or of any securities convertible into or exchangeable or exercisable for such Registrable Securities, including a sale pursuant to Rule 144 (or any successor rule or regulation) promulgated under the Securities Act, or offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or enter into any hedging or similar transaction with the same economic effect as a sale of, any Registrable Securities during the Lock-Up Period (subject to any applicable exceptions provided in the Initial Lock-Up Agreement) and (y) except as otherwise consented to by the Company, not to make any request for a Demand Registration or S-3 Registration under this Agreement that would require the filing of a registration during the Lock-Up Period except as part of such underwritten public 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;(b) <u>Restrictions on Public Sale by the Company</u>. Unless the Company shall have received the prior written consent of the Majority Investors, the Company agrees not to (i) effect any public sale or distribution of any of its securities, or any securities convertible into or exchangeable or exercisable for such securities (except pursuant to registrations on Form S-4 or S-8), (ii) file any Registration Statements relating to the registration of securities for the Company's account (except pursuant to registrations on Form S-4 or S-8), or (iii) make any public announcements related to clause (i) or (ii), in each case, during the period beginning on the effective date of any Registration Statement relating to a registration in which the Investors are participating and ending on the earlier of (x) the date on which all Registrable Securities registered on such Registration Statement are sold and (y) the Lock-Up Period (except as part of such registration), <u>provided</u>, <u>however</u>, that the restrictions set forth in this Section 7(b) shall apply only to the extent that the Investors are subject to comparable restrictions in connection with an applicable underwritten public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Registration Procedures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) <u>Obligations of the Company</u>**. Whenever registration of Registrable Securities has been requested or required pursuant to Section 3, Section 4 or Section 5 hereof, the Company shall use its reasonable best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of distribution thereof as quickly as practicable, and in connection with any such request, 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;(i) use its reasonable best efforts (taking into account, among other things, accounting and regulatory matters) to, as promptly as practicable, prepare and file with the SEC a Registration Statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of such Registrable Securities in accordance with the intended method of distribution thereof, and cause such Registration Statement to become effective; <u>provided</u>, <u>however</u>, that (x) before filing a Registration Statement or Prospectus or any amendments or supplements thereto (including, without limitation, any documents incorporated by reference therein), or before using any Free Writing Prospectus, the Company shall provide one firm of legal counsel selected by the Investors holding a majority of the Registrable Securities being registered in such registration ("**<u>Investors' Counsel</u>**"), any managing underwriter or broker/dealer participating in any disposition of such Registrable Securities pursuant to a Registration Statement and any attorney retained by any such managing underwriter or broker/dealer (each, an "<u>Inspector</u>" and collectively, the "<u>Inspectors</u>") with an opportunity to review and comment on such Registration Statement and each Prospectus included therein (and each amendment or supplement thereto) and each Free Writing Prospectus to be filed with the SEC, subject to such documents being under the Company's control, and (y) the Company shall notify the Investors' Counsel and each seller of Registrable Securities pursuant to such Registration Statement of any stop order issued or threatened by the SEC and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) use its commercially reasonable efforts to, as promptly as practicable, prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the lesser of (x) one hundred twenty (120) days (or, in the case of an S-3 Registration, three years from the effective date of the Registration Statement if such Registration Statement is filed pursuant to Rule 415 promulgated under the Securities Act) and (y) such shorter period which will terminate when all Registrable Securities covered by such Registration Statement have been sold (or, if such Registration Statement is an Automatic Shelf Registration Statement, on the third anniversary of the date of filing of such Automatic Shelf Registration Statement); provided, however, that, in the case of the Initial Registration Statement, the Company shall instead keep such Registration Statement continuously effective in accordance with Section 2(e) until there are no longer any Registrable Securities; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in 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;(iii) furnish to each seller of Registrable Securities such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits thereto), the Prospectus included in such Registration Statement (including each preliminary Prospectus), any Prospectus filed under Rule 424 under the Securities Act and any Free Writing Prospectus as each such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) use its commercially reasonable efforts to register or qualify such Registrable Securities under such other securities or "blue sky" laws of such jurisdictions as any seller of Registrable Securities may reasonably request, and continue such registration or qualification in effect in such jurisdiction for as long as any such seller reasonably requests and do any and all other acts and things that may be reasonably necessary or advisable to enable any such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller; <u>provided</u>, <u>however</u>, that the Company shall not be required to (x) qualify generally to do business in any jurisdiction where it would not otherwise be required, (y) subject itself to taxation in any such jurisdiction or (z) consent to general service of process in any such jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) as soon as possible following its actual knowledge thereof, notify each seller of Registrable Securities: (A) when a Prospectus, any Prospectus supplement, any Free Writing Prospectus, a Registration Statement or a post-effective amendment to a Registration Statement has been filed with the SEC, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective; (B) of any request by the SEC or any other federal or state governmental authority for amendments or supplements to a Registration Statement, related Prospectus or Free Writing Prospectus or for additional information; (C) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceedings for such purpose; and (D) of the existence of any fact or happening of any event of which the Company has knowledge which makes any statement of a material fact in such Registration Statement, related Prospectus or Free Writing Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue or which would require the making of any changes in the Registration Statement, Prospectus or Free Writing Prospectus in order that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of such Prospectus or Free Writing Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) upon the occurrence of any event contemplated by Section 8(a)(v)(D) hereof or, subject to Sections 3(a) and 5(c) hereof, the existence of a Valid Business Reason use its reasonable best efforts to prepare as soon as possible a supplement or amendment to such Registration Statement, related Prospectus or Free Writing Prospectus and furnish to each seller of Registrable Securities a reasonable number of copies of such supplement to, or amendment of, such Registration Statement, Prospectus or Free Writing Prospectus as may be necessary so that, after delivery to the purchasers of such Registrable Securities, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of such Prospectus or Free Writing Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) enter into customary agreements (including an underwriting agreement in customary form with the Approved Underwriter or Company Underwriter, if any, selected as provided in Section 3, Section 4 or Section 5 hereof, as the case may be) and take such other commercially reasonable actions as are reasonably required in order to facilitate the disposition of Registrable Securities and shall provide all reasonable cooperation, including causing its appropriate officers to attend and participate in "road shows" and other information meetings organized by the Approved Underwriter or Company Underwriter, if and as applicable, and causing counsel to the Company to deliver customary legal opinions in connection with any such underwriting agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) make available at reasonable times for inspection by any Inspector all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries (collectively, the "**<u>Records</u>**") as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's and its subsidiaries' officers, directors and employees, and the Company's independent registered public accounting firm, to supply all information reasonably requested by any such Inspector in connection with such Registration Statement. Records that the Company determines, in good faith, to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by the Inspectors (and the Inspectors shall confirm their agreement in writing in advance to the Company if the Company shall so request) unless (x) the disclosure of such Records is necessary, in the Company's judgment, to avoid or correct a misstatement or omission in the Registration Statement, (y) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction after exhaustion of all appeals therefrom or (z) the information in such Records was known to the Inspectors on a non-confidential basis prior to its disclosure by the Company or has been made generally available to the public. Each Inspector agrees that it shall, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, promptly give notice to the Company and allow the Company, at the Company's expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) if such sale is pursuant to an underwritten public offering, obtain a "cold comfort" letter addressed to the underwriters and Investors dated the effective date of the Registration Statement and the date of the closing under the underwriting agreement from the Company's independent registered public accounting firm in customary form and covering such matters of the type customarily covered by "cold comfort" letters as the managing underwriter reasonably requests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) furnish an opinion of counsel representing the Company for the purposes of such registration, addressed to the underwriters, if any, and to the seller making such request, covering such legal matters with respect to the registration in respect of which such opinion is being given as the underwriters, if any, and such seller may reasonably request and are customarily included in such opinions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable but no later than fifteen months after the effective date of the Registration Statement, an earnings statement covering a period of twelve months beginning after the effective date of the Registration Statement, in a manner which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) cause any Registrable Securities included in the Registration Statement to be listed on a national securities exchange or quoted on the OTC Markets, as applicable, and on each securities exchange or quotation system on which the applicable type of Registrable Securities is then listed or quoted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) cooperate with each seller of Registrable Securities and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) cause the Registrable Securities covered by such Registration Statement to be registered with or approved by such other governmental agencies or authorities, as may be reasonably necessary by virtue of the business and operations of the Company to enable the seller or sellers of Registrable Securities to consummate the disposition of such 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;(xv) provide a transfer agent or warrant agent and registrar for the Registrable Securities and a CUSIP number for each type of the 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;(xvi) cooperate with the holders of Registrable Securities to facilitate the timely preparation and delivery of certificates or uncertificated shares representing the Registrable Securities to be sold pursuant to such Registration Statement, free of any restrictive legends and registered in such names as such holders may reasonably request, it being understood that the Company may satisfy this obligation through the use of The Depository Trust Company's Direct Registration System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) take all other steps reasonably necessary to effect the registration of the Registrable Securities contemplated hereby and reasonably cooperate with the holders or underwriters (in the case of an underwritten offering) of such Registrable Securities to facilitate the disposition of such Registrable Securities pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) within the deadlines specified by the Securities Act and the rules promulgated thereunder, make all required filings of all prospectuses and Free Writing Prospectuses with the SEC; 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;(xix) within the deadlines specified by the Securities Act and the rules promulgated thereunder, make all required filing fee payments in respect of any Registration Statement or Prospectus used under this Agreement (and any offering covered thereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>Seller Requirements</u>**. In connection with any offering under any Registration Statement under this Agreement, each Investor (i) shall promptly furnish to the Company in writing such information with respect to such Investor and the intended method of disposition of its Registrable Securities as the Company may reasonably request or as may be required by law or regulations for use in connection with any related Registration Statement or Prospectus (or amendment or supplement thereto) and all information required to be disclosed in order to make the information previously furnished to the Company by such Investor not contain a material misstatement of fact or necessary to cause such Registration Statement or Prospectus (or amendment or supplement thereto) not to omit a material fact with respect to such Investor necessary in order to make the statements therein not misleading; (ii) shall comply with the Securities Act and the Exchange Act and all applicable state securities laws and comply with all applicable regulations in connection with the registration and the disposition of the Registrable Securities; and (iii) shall not use any Free Writing Prospectus without the prior written consent of the Company. If any seller of Registrable Securities fails to provide such information required to be included in such Registration Statement by applicable securities laws or otherwise necessary or desirable in connection with the disposition of such Registrable Securities in a timely manner after written request therefor, the Company may exclude such seller's Registrable Securities from a registration under Sections 3, 4 or 5 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;**(c) <u>Notice to Discontinue</u>**. Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 8(a)(v)(D) hereof or, subject to Section 3(a) and 5(c) hereof, the existence of Valid Business Reason, such Investor shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Investor's receipt of the copies of the supplemented or amended Prospectus or Free Writing Prospectus contemplated by Section 8(a)(vi) hereof (or if no supplemental or amended prospectus or Free Writing Prospectus is required, upon confirmation from the Company that use of the Prospectus or Free Writing Prospectus is once again permitted); provided, that the foregoing shall not (x) limit the right of any Investor to settle any sale of Registrable Securities for which a contract for sale was entered into prior to such Investor's receipt of such notice, and the Company shall cause its transfer agent to deliver un-legended shares of Common Stock to the relevant transferee in accordance with such sale, or (y) limit the right of any Investor to sell or otherwise dispose of Registrable Securities pursuant to Rule 144 or any other exemption from the registration requirements of the Securities Act. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement (including, without limitation, the period referred to in Section 8(a) (ii) hereof) by the number of days during the period from and including the date of the giving of such notice pursuant to Section 8(a)(v)(D) hereof to and including the date when sellers of such Registrable Securities under such Registration Statement shall have received the copies of the supplemented or amended Prospectus or Free Writing Prospectus contemplated by and meeting the requirements of Section 8(a)(vi) hereof (or if no supplemental or amended prospectus or Free Writing Prospectus is required, upon confirmation from the Company that use of the Prospectus or Free Writing Prospectus is once again permitted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) <u>Registration Expenses</u>**. Except as provided under the last sentence of this Section 8(d), the Company shall pay all expenses arising from or incident to its performance of, or compliance with, this Agreement, including, without limitation (i) all expenses, including filing fees, in connection with the preparation and filing of the Registration Statement, preliminary prospectus or final prospectus and amendments and supplements thereto, (ii) SEC, stock exchange and FINRA registration (including any counsel retained in connection with FINRA registration) and filing fees, (iii) transfer agents' and registrars' fees and expenses, (iv) all expenses with respect to road shows, (v) all fees and expenses incurred in complying with state securities or "blue sky" laws (including reasonable fees, charges and disbursements of one firm or counsel to any underwriter incurred in connection with "blue sky" qualifications of the Registrable Securities as may be set forth in any underwriting agreement), (vi) all printing, messenger and delivery expenses, (vii) the fees, charges and expenses of counsel to the Company and of its independent registered public accounting firm and the reasonable and documented legal fees, charges and expenses of Investors' Counsel in an amount not to exceed $75,000 and (viii) any liability insurance or other premiums for insurance obtained in connection with any Demand Registration or piggy-back registration thereon, Incidental Registration, Mandatory Shelf Registration or S-3 Registration pursuant to the terms of this Agreement, regardless of whether such Registration Statement is declared effective. All of the expenses described in the preceding sentence of this Section 8(d) are referred to herein as "**Registration Expenses**." The holders of Registrable Securities sold pursuant to a Registration Statement shall bear the expense of any broker's commission or underwriter's discount or commission relating to the registration and sale of such Investors' Registrable Securities and shall, other than as set forth in clause (vii) above, bear the fees and expenses of their own counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Indemnification; Contribution</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) <u>Indemnification by the Company</u>**. The Company agrees to indemnify and hold harmless each Investor, its partners, directors, officers, Affiliates, stockholders, members, employees, trustees, agents, representatives and advisors and each Person who controls (within the meaning of Section 15 of the Securities Act) such Investor from and against any and all losses, claims, damages, liabilities, judgments, fines, penalties, charges and expenses, or any action or proceeding in respect thereof (including reasonable costs of investigation, court costs, costs of preparation, amounts paid in settlement and reasonable attorneys' fees and expenses) (each, a "**Liability**" and collectively, "**Liabilities**"), arising out of or based upon (a) any untrue, or allegedly untrue, statement of a material fact contained in the Disclosure Package, the Registration Statement, the Prospectus, any Free Writing Prospectus or in any amendment or supplement thereto; (b) the omission or alleged omission to state in the Disclosure Package, the Registration Statement, the Prospectus, any Free Writing Prospectus or in any amendment or supplement thereto any material fact required to be stated therein or necessary to make the statements therein not misleading under the circumstances such statements were made; and (c) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities or "blue sky" laws, or any rule or regulation thereunder applicable to the Company and relating to any action or inaction required of the Company in connection with any such Registration Statement, and, subject to the provisions of this Section 9, will reimburse each such indemnified person, for any legal and any other expenses reasonably incurred, as they are incurred, in connection with investigating and defending or settling any such Liability; <u>provided</u>, <u>however</u>, that the Company shall not be held liable in any such case to the extent that any such Liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission contained in such Disclosure Package, Registration Statement, Prospectus, Free Writing Prospectus or such amendment or supplement thereto in reliance upon and in conformity with information concerning such Investor furnished in writing to the Company by or on behalf of such Investor, and reviewed and approved in writing by such Investor, expressly for use therein; <u>provided</u>, <u>further</u>, that, with respect to any superseded Disclosure Package, Registration Statement, Prospectus or Free Writing Prospectus, the foregoing indemnity shall not inure to the benefit of any indemnified person from whom the Person asserting the Liability purchased Registrable Securities to the extent that the untrue statement or omission was corrected in a revised document and the Company timely made such corrected document available to such indemnified person and promptly advised such indemnified person in writing not to use the superseded document. The Company shall also provide customary indemnities to any underwriters of the Registrable Securities, their officers, directors and employees and each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act) to the same extent as provided above with respect to the indemnification of the Investors. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified person and shall survive the transfer of the Registrable Securities by such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>Indemnification by the Investors</u>**. In connection with any offering in which an Investor is participating pursuant to Section 3, 4 or 5 hereof, such Investor agrees severally and not jointly to indemnify and hold harmless the Company, the other Investors, any underwriter retained by the Company and each Person who controls the Company, the other Investors or such underwriter (within the meaning of Section 15 of the Securities Act) to the same extent as the foregoing indemnity from the Company to the Investors (including indemnification of their respective partners, directors, officers, Affiliates, stockholders, members, employees, trustees and controlling persons), but only to the extent that Liabilities arise out of or are based upon a statement or alleged statement or an omission or alleged omission that was made in reliance upon and in conformity with information with respect to such Investor furnished in writing to the Company by or on behalf of such Investor, and reviewed and approved in writing by such Investor, expressly for use in such Disclosure Package, Registration Statement, Prospectus, Free Writing Prospectus or such amendment or supplement thereto, including, without limitation, the information furnished to the Company pursuant to Section 8(b) hereof and, subject to the provisions of this Section 9, will reimburse the Company, such directors, controlling persons, such other Investors and the underwriters for any legal and any other expenses reasonably incurred, as they are incurred, in connection with investigating and defending or settling any such Liability; <u>provided</u>, <u>however</u>, that the total amount to be indemnified by such Investor pursuant to this Section 9(b) shall be limited to the dollar amount of net proceeds (after deducting the underwriters' discounts and commissions and net of all expenses paid by such Investor in connection with any claim relating to this Section 9 and the amount of any damages such Investor has otherwise been required to pay by reason of such untrue statement or omission) received by such Investors in the offering to which such Disclosure Package, Registration Statement, Prospectus, Free Writing Prospectus or such amendment or supplement thereto relates. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified person and shall survive the transfer of the Registrable Securities by such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) <u>Conduct of Indemnification Proceedings</u>**. Any Person entitled to indemnification or contribution hereunder (the "**Indemnified Party**") agrees to give prompt written notice to the indemnifying party (the "**Indemnifying Party**") after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; <u>provided</u>, <u>however</u>, that the failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of any Liability that it may have to the Indemnified Party hereunder (except to the extent that the Indemnifying Party is materially prejudiced or otherwise forfeits substantive rights or defenses by reason of such failure). If notice of commencement of any such action is given to the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense, with counsel chosen by it and reasonably satisfactory to such Indemnified Party. Each Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the reasonable and documented out-of-pocket fees and expenses of such counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel reasonably satisfactory to the Indemnified Party or (iii) the named parties to any such action (including any impleaded parties) include both the Indemnifying Party and the Indemnified Party and such parties have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party. In any of such cases, the Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not be liable for the reasonable and documented out-of-pocket fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all Indemnified Parties and all such reasonable and documented out-of-pocket fees and expenses shall be reimbursed as incurred. No Indemnifying Party shall be liable for any settlement entered into without its written consent. No Indemnifying Party shall, without the consent of such Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of which such Indemnified Party is a party and indemnity has been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability for claims that are the subject matter of such proceeding. Notwithstanding the foregoing, if at any time an Indemnified Party shall have requested the Indemnifying Party to reimburse the Indemnified Party for fees and expenses of counsel as contemplated by this Section 9, the Indemnifying Party agrees that it shall be liable for any settlement of any proceeding effected without the Indemnifying Party's written consent if (i) such settlement is entered into more than thirty Business Days after receipt by the Indemnifying Party of the aforesaid request and (ii) the Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request or contested the reasonableness of such fees and expenses prior to the date of such settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) <u>Contribution</u>**. If the indemnification provided for in this Section 9 from the Indemnifying Party is unavailable to an Indemnified Party hereunder or insufficient to hold harmless an Indemnified Party in respect of any Liabilities referred to herein, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liabilities in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such Liabilities. The relative faults of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party. The amount paid or payable by a party as a result of the Liabilities referred to above shall be deemed to include, subject to the limitations set forth in Sections 9(a), 9(b) and 9(c) hereof, any reasonable and documented out-of-pocket legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding; <u>provided</u>, that the total amount to be contributed by any Investor shall be limited to the net proceeds (after deducting the underwriters' discounts and commissions) received by such Investor in the offering.

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 9(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) <u>Primacy of Indemnification</u>**. The Company hereby acknowledges that certain of the Investors have certain rights to indemnification, advancement of expenses and/or insurance provided by certain of its affiliates (collectively, the "**Indemnitors**"). The Company hereby agrees that (i) it is the Indemnitor of first resort (i.e., its obligations to the Investors are primary and any obligation of the Indemnitors to advance expenses or to provide indemnification for the same Liabilities incurred by any of the Investors are secondary to any such obligation of the Company), (ii) that it shall be liable for the full amount of all Liabilities to the extent legally permitted and as required by the terms of this Agreement and the articles and other organizational documents of the Company (or any other agreement between the Company and the relevant Investor), without regard to any rights any Investor may have against the Indemnitors, and (iii) it irrevocably waives, relinquishes and releases the Indemnitors from any and all claims (x) against the Indemnitors for contribution, indemnification, subrogation or any other recovery of any kind in respect thereof and (y) that any Investor must seek indemnification from any Indemnitor before the Company must perform its indemnification obligations under this Agreement. No advancement or payment by the Indemnitors on behalf of any Investor with respect to any claim for which such Investor has sought indemnification from the Company hereunder shall affect the foregoing. The Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery which any Investor would have had against the Company if the Indemnitors had not advanced or paid any amount to or on behalf of such Investor. The Company and the Investors agree that the Indemnitors are express third party beneficiaries of this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Rule 144</u>**.

With a view to making available to the Investors the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the SEC that may at any time permit the Investors to sell Registrable Securities to the public without registration, the Company covenants that, from and after the effective date of the Registration Statement for the Going Public Transaction, the Company shall: (a) make and keep adequate current public information available, as those terms are understood and defined in Rule 144, until the earlier of (i) such date as all of the Registrable Securities may be sold without restriction by the holders thereof pursuant to Rule 144 (or any other rule of similar effect) and (ii) such date as there are no longer any Registrable Securities; (b) 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; (c) furnish to each Investor, so long as such Investor owns any Registrable Securities, promptly upon request, (i) a written statement by the Company as to whether it has complied with the reporting requirements of the Securities Act and the Exchange Act and with the requirements of this Section, (ii) a copy of, or electronic access to, the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (iii) such other information as may be reasonably requested in order to avail such Investor of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without registration; and (d) use commercially reasonable efforts to comply with Rule 172 under the Securities Act and, promptly upon becoming aware that it does not satisfy the conditions specified in Rule 172 such that an Investor is required to deliver a prospectus in connection with any disposition of Registrable Securities, notify the Investors in writing thereof.

The Company shall, if requested by an Investor, use its commercially reasonable efforts to (i) cause removal of any restrictive legend related to compliance with the federal securities laws set forth on the Registrable Securities and (ii) issue Registrable Securities without any such legend in certificated or book-entry form or by electronic delivery, at the Investor's option, within 5 Business Days of such request if, in either case, (A) the Registrable Securities may be sold by the Investor without restriction under Rule 144, including, without limitation, any volume and manner of sale restrictions, or (B) the Investor has sold or transferred Registrable Securities pursuant to the Registration Statement or in compliance with Rule 144, provided that, in either case, the Investor and its broker shall submit certifications satisfactory to the Company and its transfer agent with respect to such sale or transfer and compliance with the Securities Act and the rules promulgated thereunder, including Rule 144, as applicable. The Company shall, at its expense, use commercially reasonable efforts to instruct the applicable transfer agent, warrant agent or registrar to remove the applicable restrictive legend and to cause counsel to the Company to deliver a customary legal opinion, instruction letter or authorization, if reasonably required by such transfer agent, warrant agent, registrar, The Depository Trust Company or the Investor's broker or custodian to effect such legend removal, issuance or transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Listing.</u> From and after the Going Public Transaction, the Company shall use commercially reasonable efforts to (i) cause all Common Stock to be listed on a national securities exchange and (ii) cause the Warrants to be quoted on the OTC Markets, and to maintain such quotation for so long as the Warrants remain outstanding and constitute Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) <u>Stock Splits, etc.</u>** The provisions of this Agreement shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) <u>No Inconsistent Agreements</u>**. The Company represents and warrants that, no Person other than the Investors has any right to require the Company to register any securities, or to include any securities in any Registration Statement filed by the Company. On or after the date hereof, the Company shall not enter into any agreement that is inconsistent with or senior to the Investors' rights under this Agreement, or grant additional registration rights that are senior to the Investors' rights, or that would allow any Person to be included in any Registration Statement or underwritten offering other than on a basis subordinate to, and subject to cutback in favor of, the Registrable Securities. As among the parties hereto, this Agreement supersedes any other registration rights agreement with similar terms, and in the event of a conflict, this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) <u>Remedies</u>**. The Investors, in addition to being entitled to exercise all rights granted by law, including recovery of damages, shall be entitled to specific performance of their rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive in any action for specific performance the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) <u>Amendments and Waivers</u>**.

. Except as otherwise provided herein, the provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless consented to in writing by the Company and the Majority Investors; <u>provided that</u> (i) this Agreement may not be amended with respect to any Investor without the written consent of such Investor unless such amendment applies to all Investors in the same fashion and (ii) the consent of each Investor is required for any amendment to Section 2, Section 9 or the definition of "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;**(e) <u>Notices</u>**. All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be made by registered or certified first-class mail, return receipt requested, telecopy, electronic transmission, courier service or personal delivery:

&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) If to the Company:

Ionic Digital Inc.<br> 650 Massachusetts Avenue Northwest, 6th Floor<br> Washington, DC 20001<br> Telephone: (754) 273-6593<br> Email: \*\*\*<br> Attention: Andy Stewart, Chief Executive Officer

with a copy to:

White & Case LLP<br> 1211 Avenue of the Americas<br> New York, NY 10020-1095<br> Email: \*\*\*<br> A.J. Ericksen, Daniel Nussen, Russell Deutsch.

&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) If to Attestor Value Master Fund, LP:

c/o Attestor Limited

7 Seymour Street

London, W1H 7JW

United Kingdom

Telephone: +44 (0) 20 7074 9610<br> Email: \*\*\*<br> Attention: Christopher Guth

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If to Oaktree Capital Management, L.P.:

Oaktree Value Opportunities Fund Holdings, L.P.

c/o Oaktree Capital Management, L.P.

333 South Grand Avenue, 28<sup>th</sup> Floor

Los Angeles, CA 90071

Beginning March 1, 2027:<br> 555 South Flower Street, Suite 3700

Los Angeles, CA 90071

Telephone: (213) 830-6300<br> Email: \*\*\*<br> Attention: Colin McLafferty

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If to Sachem Head Capital Management, LP:

Sachem Head Capital Management, LP

250 West 55<sup>th</sup> Street, 34th Floor

New York, NY 10019

Telephone: (212) 714-3300<br> Email: \*\*\*<br> Attention: Michael D. Adamski, General Counsel

with a copy to:

Milbank LLP<br> 55 Hudson Yards<br> New York, New York 10001<br> Attention: \*\*\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If to Citadel Multi-Asset Master Fund Ltd.:

c/o Citadel Enterprise Americas LLC

830 Brickell Plaza, Floor 15

Miami, FL 33131

Email: \*\*\*

Attention: Grant Tse (or, in case of account statement, Kirsten

Hedde)

with a copy to:

Choate, Hall & Stewart LLP

Two International Place

Boston, MA 02110

Attention: Tobin P. Sullivan

E-Mail: \*\*\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If to Brookdale Global Opportunity Fund or Brookdale International Partners, L.P.:

c/o Weiss Asset Management LP

222 Berkeley St, 16th Floor

Boston, MA 02116

Telephone: 617-778-7780

Email: \*\*\*

Attention: Legal Department

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) If to any other Investor, at its address as it appears in the
books and records of the Company.

All such notices, demands and other communications shall be deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five Business Days after being deposited in the mail, postage prepaid, if mailed; and when receipt is acknowledged, if telecopied, or electronically transmitted. Any party may by notice given in accordance with this Section 12(e) designate another address or Person for receipt of notices hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) <u>Consent to Electronic Notice</u>**. Each Investor consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the "**DGCL**"), as amended or superseded from time to time, by electronic mail pursuant to Section 232 of the DGCL (or any successor thereto) at the e-mail addresses set forth above or Annex A, as updated from time to time by notice to the Company. To the extent that any notice given by means of electronic mail is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected e-mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each party agrees to promptly notify the other parties of any change in its e-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;**(g) <u>Permitted Assignees; Third Party Beneficiaries</u>**. This Agreement shall inure to the benefit of and be binding upon the Permitted Assignees of the parties hereto as provided in Section 2(d) hereof. Except as provided in Section 9 hereof, no Person other than the parties hereto and their Permitted Assignees is intended to be a beneficiary 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;**(h) <u>Counterparts</u>**. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile or pdf signature including any electronic signatures complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or pdf (or other electronic reproduction of a) signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) <u>Headings</u>**. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning 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;**(j) <u>Governing Law</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k) <u>Jurisdiction</u>**. Any action or proceeding against any party hereto relating in any way to this Agreement or the transactions contemplated hereby may be brought and enforced in the federal or state courts in the State of New York, and each party, on behalf of itself and its respective successors and assigns, irrevocably consents to the jurisdiction of each such court in respect of any such action or proceeding. Each party, on behalf of itself and its respective successors and assigns, irrevocably consents to the service of process in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, return receipt requested, to such person or entity at the address for such person or entity set forth in Section 12(e) hereof or such other address as such person or entity shall notify the other in writing. The foregoing shall not limit the right of any person or entity to serve process in any other manner permitted by law or to bring any action or proceeding, or to obtain execution of any judgment, in any other jurisdiction.

Each party, on behalf of itself and its respective successors and assigns, hereby irrevocably waives any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising under or relating to this Agreement or the transactions contemplated hereby in any court located in the State of New York or located in any other jurisdiction chosen by the Company in accordance with Section 12(j) hereof. Each party, on behalf of itself and its respective successors and assigns, hereby irrevocably waives any claim that a court located in the State of New York is not a convenient forum for any such action or proceeding.

Each party, on behalf of itself and its respective successors and assigns, hereby irrevocably waives, to the fullest extent permitted by applicable United States federal and state law, all immunity from jurisdiction, service of process, attachment (both before and after judgment) and execution to which it might otherwise be entitled in any action or proceeding relating in any way to this Agreement or the transactions contemplated hereby in the courts of the State of New York, of the United States or of any other country or jurisdiction, and hereby waives any right it might otherwise have to raise or claim or cause to be pleaded any such immunity at or in respect of any such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l) <u>Waiver Of Jury Trial</u>**. EACH PARTY, ON BEHALF OF ITSELF AND ITS RESPECTIVE SUCCESSORS AND ASSIGNS, HEREBY IRREVOCABLY WAIVES ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION BASED UPON, OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m) <u>Severability</u>**. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired.

&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) <u>Rules of Construction</u>**. Unless the context otherwise requires, references to sections or subsections refer to sections or subsections of this Agreement. Terms defined in the singular have a comparable meaning when used in the plural, and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o) <u>Entire Agreement</u>**. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto with respect to the subject matter contained herein. There are no restrictions, promises, representations, warranties or undertakings with respect to the subject matter contained herein, other than those set forth or referred to herein. This Agreement supersedes all prior agreements and understandings among the parties with respect to such subject matter.

&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) <u>Further Assurances</u>**. Each of the parties shall execute such documents and perform such further acts as may be reasonably required or desirable to carry out or to perform the provisions 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;**(q) <u>Other Agreements</u>**. Nothing contained in this Agreement shall be deemed to be a waiver of, or release from, any obligations any party hereto may have under, or any restrictions on the transfer of Registrable Securities or other securities of the Company imposed by, any other agreement.

 

*[Remainder of page intentionally left blank]*

 

IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Registration Rights Agreement on the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **IONIC DIGITAL INC.** | **IONIC DIGITAL INC.** |
| By: |  |
| Name: | Andy Stewart |
| Title: | Chief Executive Officer |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **INVESTORS:** | **INVESTORS:** |
| **ATTESTOR VALUE MASTER FUND, LP** | **ATTESTOR VALUE MASTER FUND, LP** |
| Acting through its investment manager | Acting through its investment manager |
| Attestor Limited | Attestor Limited |
| By: |  |
| Name: | Christopher Guth |
| Title: | Authorized Signatory |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **OAKTREE VALUE OPPORTUNITIES FUND HOLDINGS, L.P.** | **OAKTREE VALUE OPPORTUNITIES FUND HOLDINGS, L.P.** |
| By: | Oaktree Value Opportunities Fund GP, L.P. |
| Its: | General Partner |
| By: | Oaktree Value Opportunities Fund GP Ltd. |
| Its: | General Partner |
| By: | Oaktree Capital Management, L.P. |
| Its: | Director |
| By: |  |
| Name: | Colin McLafferty |
| Title: | Authorized Signatory |
| By: |  |
| Name: | Steven Tesoriere |
| Title: | Authorized Signatory |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **OAKTREE-COPLEY INVESTMENTS, LLC** | **OAKTREE-COPLEY INVESTMENTS, LLC** |
| By: | Oaktree Capital Management, L.P. |
| Its: | Manager |
| By: |  |
| Name: | Colin McLafferty |
| Title: | Authorized Signatory |
| By: |  |
| Name: | Steven Tesoriere |
| Title: | Authorized Signatory |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **OAKTREE LONDON LIQUID VALUE OPPORTUNITIES FUND (VOF), L.P.** | **OAKTREE LONDON LIQUID VALUE OPPORTUNITIES FUND (VOF), L.P.** |
| By: | Oaktree London Liquid Value Opportunities Fund (VOF) GP, L.P. |
| Its: | General Partner |
| By: | Oaktree London Liquid Value Opportunities GP Ltd. |
| Its: | General Partner |
| By: | Oaktree Capital Management, L.P. |
| Its: | Director |
| By: |  |
| Name: | Colin McLafferty |
| Title: | Authorized Signatory |
| By: |  |
| Name: | Steven Tesoriere |
| Title: | Authorized Signatory |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **SACHEM HEAD LP** | **SACHEM HEAD LP** |
| **By: Sachem Head GP LLC, its general partner** | **By: Sachem Head GP LLC, its general partner** |
| By: |  |
| Name: | Scott D. Ferguson |
| Title: | Managing Member |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **SACHEM HEAD MASTER LP** | **SACHEM HEAD MASTER LP** |
| By: |  |
| Name: | Scott D. Ferguson |
| Title: | Managing Member |

---

*[Signature Page to Registration Rights Agreement]*

---

| | |
|:---|:---|
| **SH STONY CREEK MASTER LTD.** | **SH STONY CREEK MASTER LTD.** |
| By: |  |
| Name: | Amit Malhotra |
| Title: | Director |

---

*[Signature Page to Registration Rights Agreement]*

<u>Annex A</u>

**[Name and Address of Transferee]**

Ionic Digital Inc.<br> 650 Massachusetts Avenue Northwest, 6th Floor<br> Washington, DC 20001<br>

**[Name and Address of Transferor]**

, 20

Ladies and Gentlemen:

Reference is made to the Registration Rights Agreement, dated as of , 2026 (the "<u>Registration Rights Agreement</u>"), by and among Ionic Digital Inc., a Delaware corporation, and the certain stockholders named therein. All capitalized terms used herein but not otherwise defined shall have the meanings given to them in the Registration Rights Agreement.

In connection with the transfer by **[Name of Transferor]** of Registrable Securities with associated registration rights under the Registration Rights Agreement to **[Name of Transferee]** as transferee (the "<u>Transferee</u>"), the Transferee hereby agrees to be bound as an Investor by the provisions of the Registration Rights Agreement as provided under Section 2(d)(i) thereto.

This agreement shall be governed by New York law.

---

| | |
|:---|:---|
| Yours sincerely, | Yours sincerely, |
| **[Name of Transferee]** | **[Name of Transferee]** |
| By: |  |
|  | Name: |
|  | Title: |

---

Annex A-1

<u>Annex B</u> 

**PLAN OF DISTRIBUTION**

The Investors and their respective donees, pledgees, transferees or other successors-in-interest selling shares of Common Stock, Warrants or interests in shares of Common Stock or Warrants received after the date of the Prospectus from an Investor as a gift, pledge, partnership distribution or other transfer (collectively, the "**Selling Stockholders**") may, from time to time, sell, transfer or otherwise dispose of any or all of their Registrable Securities (consisting of shares of Common Stock issued or issuable upon conversion of the Preferred Stock, Warrants and shares of Common Stock issued or issuable upon exercise of the Warrants) or interests in shares of Common Stock or Warrants on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

Notwithstanding anything to the contrary in this Plan of Distribution, all offers, sales, transfers and other dispositions of Registrable Securities described herein (including short sales, hedging and derivative transactions and any resales following the effective date of the Registration Statement) may be effected only to the extent permitted by, and shall remain subject to, the Lock-Up Period (including the carve-out permitting sales at a price per share greater than $70.00 (as adjusted for stock splits, stock dividends, combinations, recapitalizations and similar events)) and the transfer restrictions set forth in the Securities Purchase Agreement.

The Selling Stockholders may use any one or more of the following methods when disposing of Registrable Securities or interests therein:

● distributions to members, partners, stockholders or other equityholders of the Selling Stockholders;

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● short sales effected after the effective date of the Registration Statement, subject to the Lock-Up Period and the transfer restrictions set forth in the Securities Purchase Agreement;

Annex B-1

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise, subject to the Lock-Up Period and the transfer restrictions set forth in the Securities Purchase Agreement;

● broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;

● a combination of any such methods of sale; and

● any other method permitted pursuant to applicable law.

The Selling Stockholders may, from time to time, pledge or grant a security interest in some or all of the Registrable Securities owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Registrable Securities, from time to time, under the Prospectus, or under an amendment to the Prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of Selling Stockholders to include the pledgee, transferee or other successors-in-interest as Selling Stockholders under the Prospectus, in each case subject to the Lock-Up Period and the transfer restrictions set forth in the Securities Purchase Agreement. The Selling Stockholders also may transfer the Registrable Securities in other circumstances, in which case the transferees, pledgees or other successors-in-interest will be the Selling Stockholders for purposes of the Prospectus.

In connection with the sale of Registrable Securities or interests therein, the Selling Stockholders may, subject to the Lock-Up Period and the transfer restrictions set forth in the Securities Purchase Agreement, enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course of hedging the positions they assume. The Selling Stockholders may also sell shares of Common Stock short and deliver these securities to close out their short positions, or loan or pledge the Registrable Securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by the Prospectus, which shares such broker-dealer or other financial institution may resell pursuant to the Prospectus (as supplemented or amended to reflect such transaction).

The aggregate proceeds to the Selling Stockholders from the sale of the Registrable Securities will be the purchase price of the Registrable Securities less discounts or commissions, if any. Each of the Selling Stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of Registrable Securities to be made directly or through agents. The Company will not receive any of the proceeds from any resale of Registrable Securities by the Selling Stockholders; upon any exercise of the Warrants by payment of cash, however, the Company will receive the exercise price of the Warrants.

Annex B-2

The Selling Stockholders also may resell all or a portion of the Registrable Securities in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule, or another available exemption from the registration requirements of the Securities Act. The Selling Stockholders and any underwriters, broker-dealers or agents that participate in the sale of the Registrable Securities or interests therein may be "underwriters" within the meaning of Section 2(a)(11) of the Securities Act (it being understood that the Selling Stockholders shall not be deemed to be underwriters solely as a result of their participation in any resale effected pursuant to the Registration Statement). Any discounts, commissions, concessions or profit they earn on any resale of the Registrable Securities may be underwriting discounts and commissions under the Securities Act. Selling Stockholders who are "underwriters" within the meaning of Section 2(a)(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act.

To the extent required, the Registrable Securities to be sold, the names of the Selling Stockholders, the respective purchase prices and public offering prices, the names of any agent, dealer or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the Registration Statement that includes the Prospectus. Such prospectus supplement or post-effective amendment, and any underwritten offering of Registrable Securities, shall be effected in accordance with, and remain subject to, the applicable provisions of the Registration Rights Agreement (including the demand, piggyback and underwritten shelf takedown provisions thereof).

In order to comply with the securities laws of some states, if applicable, the Registrable Securities may be sold in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the Registrable Securities may not be sold unless they have been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied with. The Company has advised the Selling Stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities of the Selling Stockholders and their affiliates. The Company has agreed to indemnify the Selling Stockholders against certain liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration of the Registrable Securities offered by the Prospectus, and the Company has agreed to keep the Registration Statement continuously effective until the Registrable Securities cease to be Registrable Securities in accordance with the Registration Rights Agreement.

Annex B-3

<u>Annex C</u>

**PLAN OF DISTRIBUTION**

The Registered Stockholders and their pledgees, donees, transferees, assignees, or other successors-in-interest may sell their shares of Class A common stock covered hereby pursuant to brokerage transactions on the Nasdaq Global Select Market or any other public exchange or registered alternative trading system at prevailing market prices at any time after the shares of Class A common stock are listed for trading thereon. All shares held by the Registered Stockholders may be freely sold upon effectiveness of this Registration Statement, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements. In addition, the remaining issued and outstanding shares of our Class A common stock may be freely sold in the public market in reliance upon exemptions from registration under the Securities Act.

We are not party to any arrangement with any registered stockholder or any broker-dealer with respect to sales of shares of Class A common stock by the registered stockholders, except we will engage financial advisors with respect to certain other matters relating to our listing, as further described below. As such, we do not anticipate receiving any notice as to if and when any Registered Stockholder may elect to sell their shares of Class A common stock or the prices at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of the shares of Class A common stock covered by this prospectus.

We will not receive any proceeds from the sale of shares of Class A common stock by the Registered Stockholders. Upon any exercise of the Warrants by payment of cash, however, we will receive the exercise price of the Warrants. We expect to recognize certain non-recurring costs as part of our transition to a publicly-traded company, consisting of professional fees and other expenses. As part of our direct listing, these fees will be expensed in the period incurred and not deducted from net proceeds to the issuer as they would be in an initial public offering.

We have engaged J.P. Morgan, Jefferies and BTIG, as our financial advisors to advise and assist us with respect to certain matters relating to our listing. These matters include assisting us in defining our objectives with respect to the filing of the registration statement of which this prospectus forms a part, our preparation of the registration statement of which this prospectus forms a part, our preparation of investor communications and presentations in connection with investor education, and being available to consult with Nasdaq, including on the day that our shares of Class A common stock are initially listed on the Nasdaq Global Select Market.

In addition, J.P. Morgan will determine when our shares of Class A common stock are ready to trade and to approve proceeding with the opening of trading at the current reference price (as defined below). However, the financial advisors have not been engaged to participate in investor meetings or to otherwise facilitate or coordinate price discovery activities or sales of our Class A common stock in consultation with us, except as described herein.

Annex C-1

On the day that our shares of Class A common stock are initially listed on the Nasdaq Global Select Market, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative current reference price on the basis of such accepted orders. During a 10-minute "Display Only" period, market participants may enter quotes and orders in Class A common stock in Nasdaq's systems and such information is disseminated, along with other indicative imbalance information, to J.P. Morgan and other market participants (including the other financial advisors) by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which J.P. Morgan, in its capacity as our designated financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once J.P. Morgan has notified Nasdaq that our shares of Class A common stock are ready to trade, Nasdaq will calculate the current reference price (as defined below) for our shares of Class A common stock, in accordance with Nasdaq's rules. If J.P. Morgan then approves proceeding at the current reference price, Nasdaq will conduct price validation checks in accordance with Nasdaq rules. As part of conducting its price validation checks, Nasdaq may consult with J.P. Morgan and other market participants (including the other financial advisors). Upon completion of such price validation checks the applicable orders that have been entered will then be executed at such price and regular trading of our shares of Class A common stock on the Nasdaq Global Select Market will commence.

Under Nasdaq's rules, the "current reference price" means: (i) the single price at which the maximum number of orders to buy or sell our shares of Class A common stock can be matched; (ii) if more than one price exists under clause (i), then the price that minimizes the number of our shares of Class A common stock for which orders cannot be matched; (iii) if more than one price exists under clause (ii), then the entered price (i.e. the specified price entered in an order by a customer to buy or sell) at which our shares of Class A common stock will remain unmatched (i.e. will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq after consultation with J.P. Morgan, Jefferies and BTIG in their capacities as financial advisors. J.P. Morgan, Jefferies and BTIG will exercise any consultation rights only to the extent that they may do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M (to the extent applicable), or applicable relief granted thereunder. In determining the current reference price, Nasdaq's algorithms will match orders that have been entered into and accepted by Nasdaq's system. This occurs with respect to a potential current reference price when orders to buy shares of Class A common stock at an entered bid price that is greater than or equal to such potential current reference price are matched with orders to sell a like number of shares of Class A common stock at an entered asking price that is less than or equal to such potential current reference price.

The Registered Stockholders will not be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will they control or influence J.P. Morgan, Jefferies and BTIG in carrying out their roles as our financial advisors. We will not be involved in the price-setting process.

To illustrate, as a hypothetical example of the calculation of the current reference price, if Nasdaq's algorithms matched all accepted orders as described above, and two limit orders remained — a limit order to buy 500 shares of Class A common stock at an entered bid price of $10.01 per share and a limit order to sell 200 shares of Class A common stock at an entered asking price of $10.00 per share — the current reference price would be determined as follows:

● Under clause (i), if the current reference price is $10.00, then the maximum number of additional shares that can be matched is 200. If the current reference price is $10.01, then the maximum number of additional shares that can be matched is also 200, which means that the same maximum number of additional shares would be matched at the price of either $10.00 or $10.01.

Annex C-2

● Because more than one price under clause (i) exists, under clause (ii), the current reference price would be the price that minimizes the imbalance between orders to buy or sell (i.e. minimizes the number of shares that would remain unmatched at such price). Selecting either $10.00 or $10.01 as the current reference price would create the same imbalance in the limit orders that cannot be matched, because at either price 300 shares would not be matched.

● Because more than one price under clause (ii) exists, then under clause (iii), the current reference price would be the entered price at which orders for shares of Class A common stock at such entered price will remain unmatched. In such case, choosing $10.01 would cause 300 shares of the 500 share limit order with the entered price of $10.01 to remain unmatched, compared to choosing $10.00, where all 200 shares of the limit order with the entered price of $10.00 would be matched, and no shares at such entered price remain unmatched. Thus, Nasdaq would select $10.01 as the current reference price because orders for shares at such entered price will remain unmatched.

The above example (including the prices) is provided solely by way of illustration.

J.P. Morgan, as the designated financial advisor under Nasdaq Rule 4120(c)(8), will determine when our shares of Class A common stock are ready to trade and approve proceeding at the current reference price primarily based on consideration of volume, timing, and price. In particular, J.P. Morgan will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the current reference price. If J.P. Morgan does not approve proceeding at the current reference price (for example, due to the absence of adequate pre-opening buy and sell interest), J.P. Morgan will request that Nasdaq delay the open until such a time that sufficient price discovery has been made to ensure a reasonable amount of volume crosses on the opening trade.

Similar to a Nasdaq-listed underwritten initial public offering, in connection with the listing of our shares of Class A common stock, the financial advisors and buyers and sellers (or their brokers) who have subscribed will have access to the Nasdaq Stock Market's Order Imbalance Indicator (sometimes referred to as the Net Order Imbalance Indicator), a widely available, subscription-based data feed, prior to submitting buy or sell orders. Nasdaq's electronic trading platform simulates auctions every second to calculate a current reference price, the number of shares that can be paired off the current reference price, the number of shares that would remain unexecuted at the current reference price and whether a buy-side or sell-side imbalance exists, or whether there is no imbalance, in order to disseminate that information continuously to buyers and sellers via the Order Imbalance Indicator data feed.

However, because this is not an underwritten initial public offering, there will be no "book building" process (i.e., an organized process pursuant to which buy and sell interest is coordinated in advance to some prescribed level – the "book"). Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of our Class A common stock to the public as there would be in an underwritten initial public offering. This lack of an initial public offering price could impact the range of buy and sell orders collected by the Nasdaq Global Select Market from various broker-dealers. Consequently, the public price of our shares of Class A common stock may be more volatile than in an underwritten initial public offering and could, upon listing on the Nasdaq Global Select Market, decline significantly and rapidly.

Annex C-3

In addition, in order to list on the Nasdaq Global Select Market, we are also required to have at least three registered and active market makers. We understand that J.P. Morgan, Jefferies and BTIG intend (but are not obligated) to act as registered and active market makers, although any such market-making, if commenced, may be discontinued at any time. Further, our financial advisors may assist interested registered stockholders with the establishment of brokerage accounts.

In addition to sales made pursuant to this prospectus, the shares of Class A common stock covered by this prospectus may be sold by the Registered Stockholders in individually negotiated transactions exempt from the registration requirements of the Securities Act. Under the securities laws of some states, shares of Class A common stock may be sold in such states only through registered or licensed brokers or dealers. The Registered Stockholders may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of Class A common stock covered hereby or interests in shares of Class A common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

The Registered Stockholders may use any one or more of the following methods when disposing of shares of Class A common stock covered hereby or interests therein:

● distributions to members, partners, stockholders or other equityholders of the Registered Stockholders;

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● short sales effected after the effective date of the Registration Statement, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements;

Annex C-4

● broker-dealers may agree with the Registered Stockholders to sell a specified number of such shares at a stipulated price per share;

● a combination of any such methods of sale; and

● any other method permitted pursuant to applicable law.

The Registered Stockholders may from time to time transfer, distribute (including distributions in kind by Registered Stockholders that are investment funds), pledge, assign, or grant a security interest in some or all the shares of Class A common stock owned by it and, if it defaults in the performance of its secured obligations, the transferees, distributees, pledgees, assignees, or secured parties may offer and sell the shares of Class A common stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of the registered stockholders to include the transferee, distributee, pledgee, assignee, or other successors in interest as Registered Stockholders under this prospectus. The Registered Stockholders also may transfer the shares in other circumstances, in which case the transferees, distributes, pledgees, or other successors in interest will be the registered beneficial owners for purposes of this prospectus.

In connection with the sale of shares of Class A common stock or interests therein, the Registered Stockholders may, subject to the Lock-Up and the transfer restrictions set forth in the Securities Purchase Agreements, enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares of Class A common stock in the course of hedging the positions they assume. The Registered Stockholders may also sell shares of Class A common stock short and deliver these securities to close out their short positions, or loan or pledge shares of Class A common stock to broker-dealers that in turn may sell these securities. The Registered Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to the Prospectus (as supplemented or amended to reflect such transaction).

If any of the Registered Stockholders utilize a broker-dealer in the sale of the shares of Class A common stock being offered by this prospectus, such broker-dealer may receive commissions in the form of discounts, concessions, or commissions from such registered stockholder or commissions from purchasers of the shares of Class A common stock for whom they may act as agent or to whom they may sell as principal. The aggregate proceeds to the Registered Stockholders from the sale of the shares of Class A common stock will be the purchase price of the shares of Class A common stock less discounts or commissions, if any. Each of the Registered Stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of shares of Class A common stock to be made directly or through agents.

Annex C-5

The Registered Stockholders also may resell all or a portion of the shares of Class A common stock in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule, or another available exemption from the registration requirements of the Securities Act. The Registered Stockholders and any underwriters, broker-dealers or agents that participate in the sale of the shares of Class A common stock or interests therein may be "underwriters" within the meaning of Section 2(a)(11) of the Securities Act (it being understood that the Registered Stockholders will not be deemed to be underwriters solely as a result of their participation in any resale effected pursuant to the registration statement of which this prospectus forms a part). Any discounts, commissions, concessions or profit they earn on any resale of the shares of Class A common stock may be underwriting discounts and commissions under the Securities Act. Registered Stockholders who are "underwriters" within the meaning of Section 2(a)(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act.

To the extent required, the shares of Class A common stock to be sold, the names of the Registered Stockholders, the respective purchase prices and public offering prices, the names of any agent, dealer or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement of which this prospectus forms a part. Such prospectus supplement or post-effective amendment, and any underwritten offering of shares of Class A common stock, will be effected in accordance with, and remain subject to, the applicable provisions of the Registration Rights Agreement.

In order to comply with the securities laws of some states, if applicable, the shares of Class A common stock may be sold in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the shares of Class A common stock may not be sold unless they have been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied with. We have advised the Registered Stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities of the Registered Stockholders and their affiliates. The Company has agreed to indemnify the Registered Stockholders against certain liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration of the shares of Class A common stock offered by this prospectus.

Annex C-6

## Exhibit 16.1

**Exhibit 16.1**

June 26, 2026

Securities and Exchange Commission

Washington, D.C. 20549

Commissioners:

We have read Ionic Digital Inc.'s statements included under "Change in Accountants" of its Form S-1 filed on June 26, 2026, and we agree with such statements concerning our firm.

/s/ RSM US LLP

## Exhibit 21.1

**Exhibit 21.1**

**SUBSIDIARIES OF IONIC DIGITAL INC.**

---

| | |
|:---|:---|
| **Subsidiary name** | **Jurisdiction of incorporation** |
| Ionic Digital Holdings Inc. | Delaware, United States |
| Ionic Digital Treasury Inc. | Delaware, United States |
| Ionic Digital Mining Leasing LLC | Delaware, United States |
| Ionic Digital Mining LLC | Delaware, United States |
| Ionic Digital Services LLC | Delaware, United States |
| Ionic Digital Garden City LLC | Delaware, United States |
| Ionic Digital East Stiles LLC | Delaware, United States |
| Ionic Digital Cedarvale LLC | Delaware, United States |
| Barber Lake Development LLC | Delaware, United States |
| Cedarvale Meter Holding Company, LLC | Delaware, United States |

---

## Exhibit 23.1

**Exhibit 23.1**

<u>Consent of Independent Registered Public Accounting Firm</u>

We hereby consent to the use in the Prospectus constituting a part of this Registration Statement of our report dated May 1, 2026, relating to the consolidated financial statements of Ionic Digital Inc., which is contained in that Prospectus.

We also consent to the reference to us under the caption "Experts" in the Prospectus.

/s/ BDO USA, P.C.

Los Angeles, California

June 29, 2026

## Exhibit 99.1

**Exhibit 99.1**

**IONIC DIGITAL INC.**

**Global Code of Conduct and Ethics**

**Effective February 2025**

**Table of contents**

---

| | |
|:---|:---|
|  | **Page** |
| Introduction | 1 |
| What to do when you have an ethics concern or question | 1 |
| Where to report | 2 |
| Cooperation with investigations | 2 |
| What happens when you report an ethics or compliance concern | 2 |
| A respectful, safe and professional workplace | 3 |
| A respectful and inclusive workplace |  |
| Discrimination and harassment | 3 |
| A safe and healthy workplace | 3 |
| Workplace safety and environment | 3 |
| Workplace violence | 4 |
| Drugs and alcohol | 4 |
| Misconduct outside the workplace | 5 |
| Solicitation and fundraising | 5 |
| Gambling | 6 |
| Employee privacy | 6 |
| Monitoring and recording at work | 6 |
| Integrity and fairness in the workplace |  |
| Conflicts of interest | 7 |
| Personal conflicts of interest | 7 |
| Outside employment | 8 |
| Outside activities | 8 |
| Political interactions and contributions | 9 |
| Seeking public office | 10 |
| Insider trading and securities transactions | 10 |

---

i

---

| | |
|:---|:---|
| Outside financial interests | 10 |
| Loans | 10 |
| Protecting Ionic's assets and reputation. | 11 |
| Preparing, disclosing, and maintaining accurate records | 11 |
| Promoting transparent and complete disclosure | 11 |
| Safeguarding company information | 12 |
| Acquiring other parties' non-public information | 12 |
| Intellectual property | 13 |
| Gathering information about competitors | 13 |
| Protecting company communication and information systems | 13 |
| Proper use of Ionic resources | 14 |
| Security of facilities | 14 |
| External communications | 14 |
| Integrity and fairness in the marketplace | 18 |
| Relationships with customers | 17 |
| Customer privacy | 18 |
| Customer marketing | 18 |
| Selling with integrity | 18 |
| Relationships with business providers and partners | 19 |
| Relationships with competitors | 19 |
| Relationships with former employees | 20 |
| Gifts and entertainment | 20 |
| Gifts | 21 |
| Entertainment | 21 |
| Bribery, anticorruption and government ethics | 21 |
| Anti-money laundering laws | 22 |
| International relationships | 22 |
| Foreign Corruption Practices Act (FCPA) | 22 |
| Compliance with sanctions and anti-boycott laws | 22 |

---

ii

**Introduction<sup>1</sup>**

**What to do when you have an ethics concern or question**

Ionic Digital Inc. ("**Ionic,**" "**we**" or the "**Company**") provides a safe community that encourages employees to reach out and ask questions about what is right or wrong without fear of retaliation. Employees are empowered to come forward if they feel that they have been placed in an ethically precarious position. Employees who are challenged with tough ethical questions or who are not sure how to proceed in order to resolve those issues are encouraged to seek guidance from supervisors, managers or other appropriate Ionic personnel. Retaliation against employees who report concerns is strictly prohibited, and if you have concerns about retaliation, you must report those as well. Ionic prohibits retaliation against employees for submitting complaints or cooperating with investigations, and anyone engaging in retaliation is subject to discipline, up to and including termination of employment.

We are defined by our values: community, loyalty, integrity, social responsibility, respect and excellence. These values should guide us in how we deal with every problem at work, large and small. This Global Code of Conduct and Ethics ("**Code of Conduct**" or the "**Code**") gives us detailed guidance about how to apply Ionic's values to specific issues and challenges that arise in our jobs. It reflects our changing business environment and has been approved by the Ionic Board of Directors (the "**Board**").

You must follow the law, this Code of Conduct, and all Ionic policies and guidelines applicable to you. You can't violate any of these rules for any reason, even if you are instructed to do so by your supervisor. Violations of this Code, or any other Ionic policy, can lead to discipline up to and including termination of employment.

But following this Code of Conduct is just a starting point. We're all expected to help maintain and promote the culture of integrity, inclusiveness and community that is one of our greatest competitive advantages. Employees in supervisory roles have a special duty to set the right example. Supervisors must promote an open door culture in which employees are comfortable speaking their mind. A critical part of maintaining a culture of integrity, inclusiveness and community is making sure that each of us asks questions and raises concerns. If you do this, you can help the Company spot issues before they turn into problems. Reporting misconduct or ethics concerns isn't just an option – it's each employee's responsibility. You must report suspected misconduct and violations of this Code. If you believe that you or anyone else is the subject of retaliation for reporting misconduct or cooperating with an investigation, you must report it to Ionic's Legal Department and Human Resources.

<sup>1</sup> You are required to comply with this Code of Conduct as a condition of continued employment. This Code may be changed by the Ionic at any time, except pursuant to any applicable collective bargaining obligations, without notice to you. Except where applicable law provides otherwise, employment with Ionic is "at will," which means that you or Ionic may terminate your employment, at any time, with or without cause, with or without notice, for any reason not prohibited by law, unless governed by a collective bargaining agreement or specific contract of employment. Any at will employment relationship may not be modified except in a written agreement signed by an authorized Ionic officer.

If your local laws conflict with this Code of Conduct or your business unit has more restrictive policies or practices, you must comply with the local law or the unit's policy or practice.

**Where to report**

You have many resources available to you should you have any concerns or questions about how this Code of Conduct applies to a particular issue. You may contact your manager, Human Resources, or Ionic's Legal Department.

You must immediately report any instance of violence, hostile behavior, or possession of weapons on company property to your supervisor. In cases of imminent danger, you should contact 911 or local law enforcement first, and then contact your supervisor.

You must report any concerns or questions you have about the accuracy or integrity of Ionic's financial statements, reporting, accounting, internal accounting controls, or auditing matters to Ionic's Legal Department.

**Cooperation with investigations**

Every employee has a duty to report potential or apparent violations of this Code of Conduct. Further, every employee is obligated to fully cooperate in any investigation by Ionic regarding a reported concern and cooperate in the legal representation and defense of Ionic's interests.

**What happens when you report an ethics or compliance concern**

Ionic is committed to fully investigating all reported ethics and compliance concerns. Employees are encouraged to bring such concerns to our attention. When making a report, employees should provide as many specific details as possible because that will assist us in executing a complete, timely and thorough investigation. Please refer to the Global Whistleblower Policy for procedures and policies on bringing concerns to our attention.

You must cooperate completely in any investigation. You must be honest and forthcoming at all times during an investigation, and you must provide any investigator with full, accurate, timely, and truthful information. Misrepresenting facts or failing to disclose facts during an investigation is strictly prohibited. You can't interfere with or obstruct an investigation conducted by the Company or by any government agency.

**Administering the Code**

The Audit Committee is responsible for administering the Code of Conduct in an independent, objective and consistent manner. We realize that the Code will not cover every possible circumstance, especially when issues arise with contracts or local laws. As such, Ionic may modify the Code, as necessary. Any waivers of the Code, however, must be approved by the Board or its designees.<sup>2</sup> In the extremely rare situation that a waiver is approved, we will quickly and properly disclose it where required by law.

<sup>2</sup> NTD: Nasdaq rule amendments allow for waiver to be made by a committee of the board of directors for directors and executive officers, rather than the board alone.

**A respectful, safe and professional workplace.**

We are committed to a safe, healthy, and professional work environment in which each of us is treated with respect and given the opportunity to achieve performance excellence. As an Ionic employee, you are expected to treat fellow employees, partners and vendors with respect, dignity, honesty, fairness and integrity at all times.

Not only is this sound business practice, it's also the right thing to do.

**Discrimination and harassment**

We are committed to maintaining a workplace free from illegal discrimination or harassment, including sexual harassment or harassment based on any other legally protected category.

We respect and comply with all laws providing equal opportunity to individuals without regard to race, color, religion, age, sex, pregnancy, sexual orientation, gender identity and expression, genetic information, national origin, disability, marital status, citizenship status, veteran status, military service status, and any other protected category under applicable law.

Unlawful harassment comes in many forms and includes conduct or language that creates a hostile or offensive work environment. It can be physical, verbal, or visual. For example, sexual harassment may include inappropriate touching, unwelcome romantic advances, lewd gestures, or the display of obscene material. Other forms of harassment may include racist comments, ethnic slurs, religious stereotypes, or homophobic jokes.

We do not tolerate such behavior. If you are subjected to or observe unlawful harassment, you should report it to your supervisor (if appropriate), Human Resources or Ionic's Legal Department, and, if you are comfortable doing so, confront the perceived harasser and ask that they stop. Supervisors who become aware of harassment concerns must report the issue.

**A safe and healthy workplace**

We share a responsibility for maintaining a safe and healthy workplace and for doing business in a way that meets our responsibilities to each other, our customers, and the public.

**Workplace safety and environment**

We are additionally committed to providing a safe workplace and to meeting our environmental responsibilities.

That means that each of us must perform our jobs in a safe and environmentally responsible manner and in compliance with Ionic's values and the law. Supervisors must ensure that direct reports are trained in the safety and environmental practices of their jobs, report potential noncompliance, and investigate all environmental, health, and safety concerns of which they become aware.

You must report a work-related crash or injury; a hazard or incident; or a violation of an environmental, health, or safety law or company policy to your supervisor

**Workplace violence**

We are committed to maintaining a work environment that is free from violence and weapons, or threatening, hostile, or abusive behavior.

You must never engage in violent or threatening behavior toward fellow employees, customers, or business partners.

We maintain a weapons-free workplace. Under no circumstances should anyone possess or use any weapon or weapon component (e.g., ammunition) on Company property, in a Company vehicle, or while conducting Company business. Unless expressly permitted by local law, this includes weapons stored in a locked personal vehicle on Company property.

It is critical that you take personal responsibility for immediately reporting any instance of violence, threats, hostile behavior, or weapon possession on Company property to your supervisor. In cases of imminent danger, you should immediately notify local law enforcement (e.g., 911 or other applicable local emergency service number).

Domestic violence can also have an impact on workplace safety. If you are the victim of domestic violence, you should notify the police and security about any person who may be threatening your safety or the safety of fellow employees. You can also contact your supervisor, Human Resources, Legal Department, or anyone at Ionic you feel comfortable speaking to.

**Drugs and alcohol**

Substance abuse is incompatible with workplace health and safety.

You may not report to work under the influence of alcohol, an illegal drug, or any controlled substance for which you do not have a prescription. If you are taking prescription medication that affects your perception or responsiveness, you should notify your supervisor and Human Resources.

You must not use or possess illegal drugs or drug paraphernalia while on Company property or when on Company time. You should not possess or use controlled substances or prescription drugs that have not been prescribed to you by a physician.

Marijuana is an illegal drug under U.S. federal law. Even if you work in a jurisdiction that has legalized marijuana for medical or recreational purposes, you may not report to work under the influence of marijuana, or use or possess marijuana while on Company property or when on Company time.

Possession and use of alcohol are prohibited on Company property, and when conducting Company business. There are limited exceptions to this prohibition:

&nbsp;&nbsp;&nbsp;&nbsp;♦ alcohol may be served at social functions on Company premises,
but only with prior approval from a supervising officer (or above leader);

&nbsp;&nbsp;&nbsp;&nbsp;♦ alcohol may be consumed if it is served at an external event
at which you are representing Ionic (e.g., a business dinner or cocktail reception).

In such cases, consumption of alcohol must be voluntary, in moderation, and in a manner that does not embarrass the Company.

**Misconduct outside the workplace**

Each of us must avoid any misconduct off the job that could impair our ability to do our jobs or affect the Company's reputation or business interests.

Accordingly, you must promptly report to Ionic Human Resources any arrest, charge, or conviction for:

&nbsp;&nbsp;&nbsp;&nbsp;♦ a felony (or equivalent under local law);

&nbsp;&nbsp;&nbsp;&nbsp;♦ an offense involving dishonesty, assault, or battery;

&nbsp;&nbsp;&nbsp;&nbsp;♦ a drug-related offense;

&nbsp;&nbsp;&nbsp;&nbsp;♦ an
alcohol-related offense relating to conduct while on Company property or business or that may otherwise affect your ability to perform
your job, or affect the Company's business interests; or

&nbsp;&nbsp;&nbsp;&nbsp;♦ any other offense which may affect your ability to perform
your job or otherwise affect the Company's business interests.

**Solicitation and fundraising**

You may not engage in solicitation or fundraising during work time (defined as the work time of either the employee making or receiving the solicitation), and you may not engage in the distribution of nonbusiness literature during work time or in Company work areas. Further, you may not use Company resources to solicit or distribute at any time. Non-employees may not engage in solicitation, fundraising, or the distribution of literature on Company property.

There are limited exceptions to this policy:

&nbsp;&nbsp;&nbsp;&nbsp;♦ Company pre-approved communications relating to employee
benefits or services;

&nbsp;&nbsp;&nbsp;&nbsp;♦ communications about charitable initiatives undertaken with
the approval of Ionic's Legal Department;

**Gambling**

Gambling is illegal in many jurisdictions and can contribute to an unprofessional workplace. You may not gamble (online or offline) on Company property, when using Company systems, or while conducting Company business. You may not participate in games of chance (including sports pools, raffles, or lotteries) on Company property, when using Company systems, or while conducting Company business without written approval from Ionic.

**Employee privacy**

You must take appropriate steps to protect confidential personal employee information, including social security numbers, identification numbers, passwords, bank account information, and medical information. You should never access or obtain, and may not disclose outside of Ionic, another employee's personal information obtained from Ionic's business records or systems unless you are acting for legitimate business purposes and in accordance with applicable laws, legal process, and company policies, including obtaining any approvals necessary under those policies.

**Monitoring and recording at work**

To maintain a safe and professional work environment, Ionic monitors employee use of Company property, consistent with applicable law. Monitoring applies to company facilities and vehicles. Such monitoring also applies to Company-provided communications devices, our networks and computer systems (including corporate email, encrypted and unencrypted internet access, and any application, such as web-based email, accessed from Company provided devices and systems).

In cases involving safety or suspected misconduct (for example, investigating claims of sexual harassment, workplace violence, or suspected theft), the Company reserves the right to monitor or inspect, without notice, any company property or any personal property on Company premises that may contain evidence of misconduct, consistent with applicable law or any local data privacy notice. With respect to Company provided or paid for communications devices or accounts, the Company may, as permitted by law or any local data privacy notice, access any stored information (whether on the device, our servers or with a third-party) that may contain evidence of misconduct, and employees are required to cooperate, including by providing access to the information, when requested by Ionic's Legal Department or its designee, or IT/Security Department.

Unless you are participating in an approved observation program or have obtained prior approval from Ionic's IT/Security or Legal Department, subject to applicable law or any local data privacy notice, you may not record (photo, video, or audio) an employee (while the employee is at work or engaged in business activities), a customer, partner, or competitor without that individual's knowledge and consent, or access another employee's information systems or business records without that employee's knowledge and consent.

**Conflicts of interest**

You must avoid any relationships or activity that might impair, or even appear to impair, your ability to make objective and fair decisions when performing your job. When acting on behalf of the Company, you must advance the Company's legitimate interests when the opportunity to do so arises. If you identify a situation where the Company's interests are being harmed, you must report the matter to Ionic Human Resources or Legal Department.

You must never use Ionic property or information for personal gain or take personal advantage of any opportunity that arises in your work for Ionic.

You must disclose any potential or actual conflict to Ionic as soon as you become aware of it.

**Personal conflicts of interest**

**I am an employee and one of my reports disclosed a personal conflict of interest to me. I promptly implemented controls to minimize the risk. Is that sufficient?**

No. All conflicts and potential conflicts of interest must be cleared by Ionic.

Certain types of personal relationships can create actual or apparent conflicts of interest both internally at Ionic and in our interactions with third parties. Never use your position at the company to advance your personal interests or those of a friend or relative at the expense of the company's interests.

Internally, you may not supervise – directly or indirectly – someone with whom you share a close personal relationship, such as anyone in your family or household, or someone with whom you have or had a romantic relationship or other similar relationship. Even if a family member or romantic partner is not in your reporting chain, if you interact with such a person as part of your Ionic work responsibilities, you must avoid any actions at work that could create even the appearance of a conflict of interest. If you are uncertain about what interactions are appropriate, you must contact Ionic Human Resources or Legal Department.

Externally, you may not participate in the selection process for, have discretionary authority involving Ionic's business with, or supervise Ionic's relationship with, a company that does business with Ionic if it employs someone with whom you have a close personal relationship or is a company with which you have a business relationship. Exceptions to this restriction are extremely limited and require the approval of Ionic Human Resources and Legal Department.

If a family member or person with whom you have a close personal relationship is employed by an entity that does business with Ionic, you cannot interact with that individual about business between Ionic and the outside entity.

**Outside employment**

**How do I find out if the company where I have a second job is providing services or access to services that are also provided by Ionic?**

If you think there is any chance that an outside employer might be operating in the same space as Ionic, you must contact Ionic Human Resources for guidance.

**My supervisor knows that I have a side job. Do I have to let anyone else know?**

A "side hustle" related to the field in which you work for Ionic, competitive with Ionic, or involving any product or service in which Ionic might be active, must be pre-approved by Ionic Human Resources and Legal Department.

You may not—with or without compensation—be self-employed or employed by, consult with, own, perform services for, or aid:

&nbsp;&nbsp;&nbsp;&nbsp;♦ a company or organization (including a charitable organization)
that is a vendor, supplier, partner, contractor, subcontractor, or competitor of Ionic; or

&nbsp;&nbsp;&nbsp;&nbsp;♦ a
company that provides services or access to services that are provided by Ionic, or that Ionic is seeking to provide or provide access
to.

Outside work must not interfere with your work for Ionic. This limitation also applies to simultaneous employment by Ionic and its subsidiaries, affiliates, and joint ventures in which the Company maintains an ownership interest. Exceptions to the requirements of the previous paragraph may be granted only upon written approval by Ionic Human Resources and Legal Department.

Unless you receive the prior written approval of your supervisor, Human Resources and Legal Department, you may not engage in any outside employment or self-employment or perform any commercially-related services—with or without compensation—while absent from work on any Company-approved leave of absence, absence due to sickness or disability, Family Medical Leave, or comparable leave provided for by applicable law.

**Outside activities**

**I have been asked to participate in an investor expert network as a digital assets industry professional. This expert network does research to assist investors. If I do not reveal any confidential Ionic information, can I participate?**

Employees and executives are generally prohibited from participating in expert networks for investors due to insider trading concerns. You should consult with Ionic Legal Department regarding this request.

When employees participate in outside activities, Ionic draws a distinction between personal activities (not representing Ionic) and service on behalf of the Company (representing Ionic). Many employees, in their personal capacities, participate in outside civic and charitable activities by serving as trustees or members of various community organizations such as local not-for- profits, religious institutions, parent teacher associations, or homeowners' associations. If a matter regarding Ionic's services or access to services or products arises when performing such outside civic or charitable activities, you must remove yourself from discussing or voting on the matter or on any matter that involves the interests of Ionic or its competitors to avoid conflicts of interest. Participation in outside civic or charitable activities should not interfere with your work for Ionic. To the extent your participation infringes on Company time or involves the use of Ionic resources, your supervisor's approval is required.

Service in an outside organization on behalf of Ionic means that you are expected to represent Ionic's interests when participating in the organization's activities. Prior to serving as a representative of Ionic with any outside organization, you must obtain the prior approval of Ionic Human Resources, Legal Department and your supervisor.

Special approval requirements apply when seeking to serve on any outside company's board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;♦ Service on the board of directors of a public corporation
must be approved in advance by both Ionic Human Resources, Legal Department and your organization's executive office.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Service
on the board of directors of a non-public corporation must be approved in advance by Ionic Human Resources and Legal Department.

**Political interactions and contributions**

Ionic encourages participation in the political process and each of us is responsible for ensuring compliance with all laws and regulations relating to interactions with government officials, including laws governing campaign finance, government ethics, and lobbying. In addition, all lobbying activities on behalf of the Company must be authorized by Ionic's Legal Department.

If you are appearing before a government body or engaging in contact with a public official outside of your ordinary work duties regarding a business in which Ionic is engaged or a business issue in which Ionic has an interest, make it clear that you are not representing Ionic and advise your supervisor in advance.

Your personal political contributions and activities must be kept separate from the Company. If you make political contributions, you may not refer to your employment or use the Company's assets, including its name, in connection with your contributions, unless required to do so by law. You may not make payments of corporate contributions, whether monetary or non-monetary assets, to any domestic or foreign political party, candidate, campaign, or public official unless that contribution is permitted under applicable laws inside and outside the U.S., and approved in advance by Ionic's Legal Department. In addition, you may never reimburse anyone for any political contribution.

**Seeking public office**

Before you seek any elected or appointed public office, including a local position, such as school board, you must obtain the approval of your director level or above supervisor and Ionic.

**Insider trading and securities transactions**

Insider trading occurs when a person trades in a company's securities using material inside information, often referred to as material non-public information—that is, information that is not publicly available and that could reasonably affect a person's decision about whether to buy or sell the securities.

It also occurs when a person gives material inside information to someone else who trades on it. Insider trading is a serious violation of the law and can result in severe penalties, including imprisonment. Please refer to the Ionic's Insider Trading Policy for further information about this matter.

**Outside financial interests**

**Can I purchase stock in a company that is a vendor on a project I am working on?**

If you are working with that vendor, you cannot purchase stock in that company.

You may not transact any business in a company's securities or derivatives of those securities if you conduct or supervise Ionic business with that company.

If you have a pre-existing stock interest in a company and your position at Ionic requires you to conduct or supervise business with this company, you must disclose your ownership interest to a supervisor. You may not trade in that company's securities without advance approval from Ionic's Legal Department.

You may not take a significant financial interest in a company that is a business provider or that competes with or is in one of the same lines of business as Ionic. A significant financial interest is any financial interest that is more than US$100,000 and that represents either (1) more than [25%] of your annual gross income or (2) more than 1% of the value of the other company. If any investment appreciates over time so that it creates an actual or apparent conflict of interest, it should be brought to the attention of Ionic's Legal Department.

**Loans**

Personal loans from the Company to any executive officer (as defined by securities law) are unlawful and strictly prohibited. Personal loans from the Company to any other employee must be approved in writing in advance by Ionic's Legal Department or under an approved Ionic program. Loans greater than US$25 between employees in a direct or indirect reporting relationship are prohibited.

**Protecting Ionic's assets and reputation.**

We are all accountable for protecting the company's assets and reputation.

**Preparing, disclosing, and maintaining accurate records**

**I am required to track and record the time I spend working each week. I sometimes fail to properly record half-days as vacation days or personal time, but it is not a common occurrence. Is this a big deal?**

Yes. Failure to accurately record your time is a violation of this Code of Conduct and could result in discipline up to and including termination of employment.

We are committed to maintaining and providing truthful information that satisfies all legal requirements. We do not tolerate the falsification or improper alteration of records.

You must create and maintain true and accurate records. If you identify any mistakes or discrepancies, no matter how small, you must try to resolve them immediately, and you must promptly notify your supervisor.

You may never direct anyone to create or approve a false or misleading record, or intentionally take any action that helps to create a false or misleading record, such as withholding information from someone preparing a record.

Company records must be retained according to applicable laws and company policies. You may never destroy, alter, or conceal any record if you have been directed to retain it or if you know – or reasonably believe there is a possibility – of any litigation or any internal or external investigation concerning that record.

If you believe a record was intentionally falsified or created to be misleading, or if anyone directed you to violate any section of this policy, you must immediately contact Ionic Human Resources.

**Promoting transparent and complete disclosure**

Our investors and shareholders are key to our success and we are committed to transparency in financial reporting. All disclosures made in financial reports and in public communications must be full, fair, accurate, and understandable.

You may not selectively disclose (even in one-on-one or small meetings) any material information regarding the Company. You should be particularly careful not to disclose such information if you make presentations to customers, business providers, investors, or other third parties.

We use auditors to ensure the accuracy of our reporting. You must cooperate with auditors and provide them with complete, accurate, and timely information, and you must never improperly influence or mislead any auditor.

**Safeguarding company information**

Our business depends on protecting its proprietary, non-public, and confidential information, as well as the information others entrust to us as part of our business. Examples of such information include: "inside information" that could lead someone to buy or sell Ionic stock, marketing presentations, or copyrighted materials. You must comply with all Company policies regarding the protection of Ionic's information. You may not release non-public Company financial information to the public or third parties unless specifically authorized by your supervisor and Ionic's Legal Department.

You may not release other non-public Company information to the public, third parties, or internet forums (including blogs or chat rooms) unless you are specifically authorized to do so by your Ionic supervisor and Legal Department. You may only disclose non-public Company information to employees who have demonstrated a legitimate, business-related need for the information.

Your obligation to safeguard Ionic information continues even after your employment at the Company has ended, and you may never disclose or use non-public Company information absent Ionic's specific written authorization.

**Acquiring other parties' non-public information**

**A customer shared a competitor's pricing in connection with a pending bid because the customer wants to make it clear that there is a certain "price to beat." Can I use this information?**

No. This information is almost certainly proprietary and the customer may not be authorized to share it with Ionic. You should contact Ionic's Legal Department, preserve the email, and do not take further action until directed by Ionic's Legal Department.

**A competitor's pricing information was posted on a blog. It's marked "confidential." Can I use it?**

If you have reason to believe the blogger wasn't authorized to post the information and that it is non-public, contact Ionic's Legal Department to receive guidance before using it.

**In connection with a pending transaction, a partner sent me confidential information. A properly approved NDA is in place. Can I accept the information?**

Yes, you can accept confidential information pursuant to a properly approved NDA.

You cannot accept or use non-public information belonging to a third party (including information from a former employer) unless the person disclosing the information is authorized to do so, Ionic has the owner's written permission to receive it, and the information is provided according to a written agreement approved in advance by your supervisor and Ionic's Legal Department.

**Intellectual property**

Our intellectual property is a valuable asset and must be protected by everyone. Similarly, you must respect the proprietary rights of others by complying with all applicable laws and agreements, including those with business providers, competitors, and customers.

You must not acquire the intellectual property of others through unlawful or inappropriate means. You may not copy, use, or share copyrighted materials unless you obtain the specific, written, prior consent of the owner, or unless such use is permitted under applicable law as determined by Ionic's legal department.

If you have entered into any agreement with a prior employer with respect to intellectual property, non-competition, non-solicitation, or non-disclosure, you are required to disclose such an agreement to your supervisor, Human Resources and Legal Department.

**Gathering information about competitors**

Gathering information about competitors is a common business practice, but you must always do so with integrity. You must always accurately represent yourself and may never misrepresent your identity when gathering information. You are also required to direct that all consultants and agents with whom you work on behalf of Ionic do the same.

You may generally obtain information from public sources, industry gatherings, surveys, and competitive research, but it is never acceptable to obtain or request non-public information from any source, including the internet. It is never appropriate to engage in theft, espionage, or breach of a competitor's non-disclosure agreement. If information you receive is marked private or marked in such a way as to indicate it is private, absent an appropriate confidentiality agreement, do not use it and contact Ionic's Legal Department for guidance.

**Protecting company communication and information systems**

Ionic's communication and information systems, including all company Computers and mobile devices, are critical to the Company's operation. You must protect Company information from accidental or unauthorized disclosure. You must also protect the security of user IDs and passwords for all company systems and devices. Additionally, you must also comply with all company policies relating to the use of computer hardware and software on company systems, and the acquisition, use, and disposition of data on company systems. Only approved software and hardware may be used on Company systems, and such media must have a legitimate business purpose and be malware free.

You may not use Company systems, such as email or instant messaging, to engage in activities that are illegal, violate company policy, or could result in Ionic's liability or reputational harm. Some examples of improper uses of Company systems include:

&nbsp;&nbsp;&nbsp;&nbsp;♦ pornographic, obscene, offensive, harassing or discriminatory
content;

&nbsp;&nbsp;&nbsp;&nbsp;♦ unauthorized mass distributions;

&nbsp;&nbsp;&nbsp;&nbsp;♦ communications on behalf of commercial ventures; and

&nbsp;&nbsp;&nbsp;&nbsp;♦ communications directed to a group of employees on behalf
of an outside organization.

You may make limited personal use of Company systems, so long as it does not interfere with your work responsibilities, incur costs, or otherwise violate this Code of Conduct or Ionic policy. You may not send non-public Company information to personal email unless you are authorized to do so by a supervisor and comply with Company policies regarding encryption.

**Proper use of Ionic resources**

You are required to protect Ionic's resources, as well as property belonging to customers, business providers, and co-workers. All Company resources must be used appropriately, and never for personal gain. Company property cannot be taken, sold, loaned, intentionally damaged, given away, or otherwise disposed of, regardless of its condition or value, without specific authorization.

You are never permitted to use Ionic equipment or vehicles for personal purposes, or any device or system to obtain unauthorized free or discounted service.

Ionic benefits plans and programs must be used honestly. You are not permitted to misrepresent any fact regarding your health status, covered members, beneficiaries, or any other facts, including reasons for absence, for any purpose.

**Security of facilities**

To ensure a safe work environment and the integrity of the Company's facilities, you must take all appropriate precautions to protect Ionic's systems and premises. Do not leave visitors unescorted or sensitive areas unattended or unlocked. When on Company property and conducting Company business, request identification from others you do not recognize. You must report all suspicious activity to your supervisor.

**External communications (applicable to Ionic employees, directors and board observers (if any))**

**If I am using my personal social media account on my personal time, does this Global Code of Conduct and Ethics apply?**

Yes, portions of this Code of Conduct still apply to your personal use of social media. For example, if you identify Ionic as your employer and post a racist comment or encourage acts of violence on your social media pages, such behavior may constitute prohibited off-duty misconduct.

**Where can I get more information about the Company's policies on social media?**

How we use social media and what we say has the potential to affect our reputation and/or expose us to business or legal risk. You must comply with the following rules and guidelines when you reference Ionic, its operations or its relationships or industry-related topics. These rules and guidelines are not intended to restrict communications or actions protected or required by state or federal law.

**<u>Social Media Rules and Guidelines</u>**

**"Ionic" media channels.** No employee may create or register a social media channel on behalf of Ionic without prior authorization from the Chief Executive Officer or the Chief Legal Officer.

**Don't be the leak.** You may mention information about official Ionic announcements only if the information has already been announced publicly via a press release, Form 8-K or information posted on official, Ionic-owned social media accounts, but you may not take information out of context or otherwise change its meaning.

**Be balanced.** Ionic carefully formulates its messages to the public, so as to ensure that the information it releases fairly reflects the performance of Ionic and complies with all laws. Be sure not to "like" or re-tweet the messages released by Ionic in a way that distorts the message that Ionic intended to convey, for example, by only "liking" or re-tweeting the positive parts of a more comprehensive communication released by Ionic.

**Act responsibly.** You are personally responsible for content you post. Don't use abusive, harassing, speculative, defamatory, discriminatory, threatening or unlawful language. You should also show proper consideration for others' privacy. Your posts and responses, even from personal accounts, could be read and reported by news media and remain public for a long time, so consider all consequences before you post. Take care to understand a site's terms of service.

**Identify yourself.** When speaking about Ionic or industry-related matters on your personal account, you should disclose your identity and, when relevant, role at Ionic, but make clear that you are not speaking on behalf of Ionic. You should also be aware of your association with Ionic in online social networks. If you identify yourself as an Ionic employee, ensure your profile and related content is consistent with how you wish to present yourself with colleagues and customers.

**Distinguish your views.** If you publish content on your personal account related to Ionic, the sterilization services or lab testing industries or the work you do, you should make it clear you are speaking for yourself and not on behalf of Ionic. For example, you can use a disclaimer, such as: *"The views presented are my own and do not represent those of Ionic."*

**Respect the rights of others.** You are responsible for your social media communications. Avoid disseminating legally-protected copyrighted materials unless you have appropriate authorization (i.e., license or permission from the owner of the content). You should also be mindful of content posted on private sites, and obtain any required approvals or authorization before reposting on public channels.

**Be truthful.** Be aware that making untruthful statements about individuals, competitors or business partners could subject you or Ionic to claims of defamation by businesses or individuals. Take responsibility to ensure that any content you post about a third party is truthful.

**Alert the Chief Legal Officer to criticism or negative comments made about Ionic.** If you see criticism towards Ionic on social media sites that you believe requires an official response from Ionic, contact the Legal Department. It's up to everyone to keep their eyes open for relevant commentary in the community— both positive and negative.

**Use your judgment and common sense.** There are always consequences to what you publish. If you feel uncomfortable about what you're about to post, rethink it, and consider discussing with the Legal Department. Use the test: "if this were a news headline, would it harm Ionic?" Follow the platform's terms of use regarding what you post.

**Public versus private.** You are responsible for knowing whether the content you are posting will be posted publicly or to a private, self-identified group of people. However, these rules and guidance apply regardless of the size of the group.

**Logos and trademarks.** Do not misuse Ionic logos or trademarks, which you may only use if you have the authority to do so. For example, you should not use "Ionic" in your screen name or other social media ID.

**Keep in mind the global scope of social media.** Local posts, even to a limited audience, can be mistranslated, misunderstood or illegal in other countries. Therefore, you must qualify or limit your posts appropriately. If you are unsure or have questions, consult with the Legal Department.

**Be familiar with our communications policies.** Ionic has a number of policies that include restrictions and guidelines regarding external communication of Ionic's information, including this Code of Conduct and the Insider Trading Policy. Non-compliance with these policies can result in disciplinary action, up to and including termination. Employees should review our policies prior to discussing Ionic on social media. Certain information should not be discussed online, even if stated as an opinion, and even if you use a disclaimer, including:

**Confidential information.** Confidential information includes our trade secrets, products and services, intellectual property, non-public information about our customers, prospective customers, and suppliers (as well as our customers' and suppliers' proprietary information and trade secrets), sensitive or personal information about our employees obtained with or without authorization in the course of one's employment or from Ionic records, non-public information about our finances, business prospects and plans, strategies and policies, and methods of doing business, or other private information, including information subject to a non-disclosure or confidentiality agreement. All non-public information about Ionic or its businesses or activities should be considered confidential information.

**Sensitive or "inside" information.** Sensitive or "inside" information includes things like Ionic's future business performance (including upcoming quarters or future periods), Ionic's business plans, unannounced strategies or prospects, potential acquisitions or divestitures, or similar matters involving Ionic's competitors. This applies to anyone including conversations with financial analysts, the press or other third parties (including friends and relatives). If you're unsure of the sensitivity of a particular subject, seek advice from your manager, the Legal Department before talking about it or simply refrain from the conversation. Ionic's policy is not to comment on rumors in any way about these issues. You should merely say, "no comment" to rumors or refer the inquirer to the Legal Department. Do not deny or affirm them (or suggest the same in subtle ways), speculate about them or propagate them by participating in "what if"-type conversations.

**References to customers, partners or suppliers without their approval.** Externally, never identify a customer, partner or supplier by name without permission, and never discuss confidential details of a customer relationship.

Unless you receive prior approval from both your supervisor and Human Resources, when presenting your personal views in public or at professional, community, and other events, you may never suggest you are speaking on behalf of the Company.

External requests and inquiries seeking information from the Company must be directed to the appropriate organizations:

&nbsp;&nbsp;&nbsp;&nbsp;♦ Investor Relations or a vendor designated by the Company
is responsible for contact with the news media and inquiries about community relations.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Investor
Relations or a vendor designated by the Company handles communications related to the Company's financial performance and all contacts
with the financial community.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Human
Resources or a vendor designated by the Company handles inquiries regarding current and former employees, including employment verification.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Ionic's Legal Department handles contacts from outside
attorneys, law enforcement, legislative bodies, and regulatory agencies.

This includes responses to subpoenas, court orders, and inquiries from law enforcement, including requests to access Ionic facilities. You may never confirm or deny the existence, or discuss the substance, of any subpoena, warrant or court order, and must immediately refer any such inquiries or requests to security or Ionic's Legal Department. If you receive any legal documents relating to Ionic, you must immediately forward them to Ionic's Legal Department.

Ionic generally does not make company-sponsored endorsements or provide testimonials. You may not use Ionic's name, nor may you make any endorsement, without the explicit approval of Ionic's Legal Department.

**Integrity and fairness in the marketplace.**

Our relationships with customers, suppliers, and society are fundamental to our commercial success and are a critical part of our social responsibility. Each of us must ensure that our interactions outside the Company are based on integrity.

**Customer privacy**

We are all responsible for protecting customers' privacy. You must only obtain, use, or share customer information for legitimate business purposes.

Ionic's privacy policies describe the information the Company collects from and about customers and website visitors and how that information may be used and shared. The privacy policies also explain the choices customers have about certain uses and sharing of that information. You must respect these choices.

You must not, and must not permit others to access, listen to, monitor, record, tamper with, or disclose any customer communication, except as required by the duties of your position to comply with a valid service or installation order, to comply with a valid legal order or law, or for the limited purpose of quality monitoring and training, or as approved by Ionic's Legal Department.

You must also protect customer information. That means you may not access, view, use, modify or share customer information without a proper business reason. You also may not access account information concerning yourself, or your friends, acquaintances, family, or coworkers without prior approval from your supervisor.

Ionic contractors and business partners also must protect customer information. Before sharing any customer information with a third party, ensure that a written agreement that protects customer information is in place.

If you are aware of or suspect unauthorized access to, disclosure of, or loss of customer information, you must report it immediately to Ionic's Legal Department.

**Customer marketing**

You must follow all Company policies and applicable laws before using any customer's information to market to the customer, including marketing for additional products and services or access to services.

**Selling with integrity**

You may never deceive customers, and you must fully, clearly, and directly inform customers of the terms and conditions of our services:

&nbsp;&nbsp;&nbsp;&nbsp;♦ All advertising and sales materials must be truthful and
accurate. All claims must be substantiated in advance with a factual basis and backup. No advertising or sales materials should be released
without Ionic's Legal Department approval.

&nbsp;&nbsp;&nbsp;&nbsp;♦ When selling to Ionic's customers, never disparage
or misrepresent the Company's products or services.

&nbsp;&nbsp;&nbsp;&nbsp;♦ When advertising the price of Ionic's products and
services, the customer must be clearly informed of all material terms and restrictions for obtaining the advertised rate in marketing
and promotional materials. There should be no hidden charges.

&nbsp;&nbsp;&nbsp;&nbsp;♦ All rules regarding sales and promotions must be followed
without exception.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Promote Ionic's products and services by focusing on
their strength, quality, reputation, and where appropriate, through fair and accurate comparisons with our competitors. You should not
disparage competitors or make misleading or inaccurate comparisons with competitors' products and services.

&nbsp;&nbsp;&nbsp;&nbsp;♦ Report to Ionic's Legal Department any loopholes or
flaws in promotions or offers that allow customers or the Company to be harmed.]

**Relationships with business providers and partners**

You must use good judgment when selecting and maintaining relationships with all of Ionic's business providers and partners. Employees who select, supervise, and work with business providers must:

&nbsp;&nbsp;&nbsp;&nbsp;♦ use a selection process that is fair, lawful, does not improperly
discriminate, and complies with all Company policies;

&nbsp;&nbsp;&nbsp;&nbsp;♦ ensure that business providers and partners are apprised
of their obligation to abide by all applicable Ionic policies;

&nbsp;&nbsp;&nbsp;&nbsp;♦ put all agreements in writing and obtain all required approvals
for agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;♦ protect the confidential information of business providers
and partners.

**Relationships with competitors**

We depend upon a fair marketplace for our success. Accordingly, we will never seek to eliminate or reduce competition through illegal agreements with competitors. To safeguard against this risk, you may not enter into agreements with competitors without advance approval from Ionic's Legal Department. When thinking about what companies could be competitors, take a broad view and, if in doubt, contact Ionic's Legal Department prior to making any agreement.

You must avoid agreements that could violate antitrust and competition laws such as fixing prices, dividing markets or products, rigging bids, or boycotting particular suppliers or customers. Explicit agreements, informal "gentlemen's agreements," and even a "wink and a nod" are against the law and can result in criminal penalties for Ionic or you personally.

When interacting with competitors externally – including at trade association activities or in informal settings – do not discuss Ionic's pricing, terms, or marketing plans.

**Relationships with former employees**

**My colleague left Ionic last month to work for one of our vendors where he is working on Ionic matters. Can I interact with the former employee regarding Ionic business?**

It depends. When a former employee has left Ionic, depending on the role he plays at his new employer, there may be restrictions on Ionic employees' ability to immediately interact with the person. You should reach out to Ionic's Legal Department to discuss the individual circumstances.

Your obligation to follow the Company's standards continues even after your employment at Ionic ends:

&nbsp;&nbsp;&nbsp;&nbsp;♦ When leaving or retiring, you must return all Ionic property,
including all records and equipment. You can't use or disclose Ionic's non-public information in any subsequent employment,
unless you receive written permission in advance from a Ionic supervisor and Ionic's Legal Department.

&nbsp;&nbsp;&nbsp;&nbsp;♦ You may not provide any Ionic non-public information to former
employees unless properly authorized. If a former employee solicits non-public information from you, you must immediately notify security
or Ionic's Legal Department.

**Gifts and entertainment**

Gifts and entertainment can be part of promoting a successful working relationship with our business partners and customers. However, if you fail to follow the rules relating to gifts and entertainment, it can damage our relationships, harm our reputation, and expose the company to legal risk.

No gift or entertainment can be exchanged if (a) it might create the appearance of undue influence, unfairness or impropriety, (b) it is intended to improperly influence another person's business judgment, or (c) you are participating in, conducting, or directly supervising a formal Ionic procurement process.

If you receive or want to offer a gift or entertainment that is outside of this Code of Conduct standards, you must contact Ionic's Legal Department for guidance.

Moreover, you may never use your own funds to circumvent our rules regarding gifts and entertainment, and you must ensure that all gifts and entertainment are accurately reflected in Ionic's books and records, including expense reports. Our rules regarding gifts and entertainment can apply to your family and individuals with whom you have a close personal relationship when those individuals receive gifts and entertainment because of your position at Ionic.

**Gifts**

A gift is anything of value, including promotional trinkets, food, beverages, and event tickets, that you give or receive. To be permissible, a gift must comply with all applicable laws and be:

&nbsp;&nbsp;&nbsp;&nbsp;♦ unsolicited;

&nbsp;&nbsp;&nbsp;&nbsp;♦ not cash or usable as cash (including gift cards unless they
have been approved as part of an authorized Ionic program and by Ionic's Legal Department); and

&nbsp;&nbsp;&nbsp;&nbsp;♦ no more than US$150 in value in a calendar year to or from
the same organization, unless approved by a director level supervisor and Ionic's Legal Department.

You must receive approval from Ionic's Legal Department before offering or accepting any gifts of travel or lodging.

**Entertainment**

Entertainment is any meal or event you attend with a customer or business provider. If you do not attend an event with a customer or business provider, the tickets to the event are considered a gift, not entertainment. To be permissible, entertainment must comply with all applicable laws and be:

&nbsp;&nbsp;&nbsp;&nbsp;♦ attended by both an Ionic employee and a business provider's
employee, and be an occasion where business is discussed;

&nbsp;&nbsp;&nbsp;&nbsp;♦ no more than US$250 in value per occasion, per person, unless
approved by a director level supervisor and Ionic's Legal Department; and

&nbsp;&nbsp;&nbsp;&nbsp;♦ at a venue and conducted in a manner that does not violate
other provisions of this Code of Conduct or harm the Ionic's reputation (e.g., attending an event at an adult entertainment venue).

**Bribery, anticorruption and government ethics**

**Who counts as a "government official?"**

Legal definitions of "government official" can vary. For the purpose of complying with Company policy, you should take the broadest possible view of who is a government official. This includes all elected and appointed officials and any employee of any government entity, at any level, including national, state, provincial, local, or municipal level. It also includes officials and employees associated with quasi-governmental entities and state-owned companies. If you're in doubt as to whether someone should be treated as a government official, contact Ionic's Legal Department for assistance.

Ionic employees must comply with all anti-bribery and anti-corruption laws applicable in any jurisdiction in which we operate.

You must not offer or pay a bribe to anyone, and you must never receive or solicit a bribe from anyone. If you are ever offered a bribe by anyone, you must report it to Ionic's Legal Department immediately.

You must obtain Ionic's Legal Department approval before offering any gifts, entertainment, meals, or anything else of value to any government official, whether they are based inside or outside of the United States. You must also obtain Ionic's Legal Department approval before entering into personal business with a government official as a consultant on behalf of Ionic (for example, hiring a government official or entering into a joint venture or partnership with a government official).

You may never make payments to any third party you suspect may be passed on to government officials or otherwise used to improperly influence anyone's decision making to obtain business or other benefits for Ionic. Whenever you retain any agents or consultants in connection with our global business, you must verify that there are adequate controls to prevent funds provided to those agents from being used to make improper payments.

You must ensure that Ionic and any agents or consultants hired to represent Ionic properly document all transactions and maintain accurate records regarding all payments, including amounts, recipients, and purpose of payments.

If you have questions about any anti-corruption or anti-bribery related issue, contact Ionic's Legal Department immediately.

**Anti-money laundering laws**

Money laundering is an attempt to hide or disguise the proceeds of criminal activity through a series of otherwise legitimate business transactions. Be sure products and services or access to services are reviewed before release to determine if any features could be susceptible to money laundering. We prohibit knowingly engaging in transactions that facilitate money laundering or result in unlawful diversion.

**International relationships**

We must follow the law, wherever we do business. If you find that there is a conflict between applicable law and this Code of Conduct or Ionic policy, you should comply with the law and seek further guidance from Ionic's Legal Department.

**Foreign Corruption Practices Act (FCPA)**

It is Ionic's policy that all employees, partners, independent contractors, agents, representatives, vendors and other third-parties who work with Ionic fully comply with the anti-bribery laws of the United States and of the foreign countries where Ionic may do business. Bribery of any kind in the United States and abroad is strictly prohibited.

**Compliance with sanctions and anti-boycott laws**

Check with Ionic's Legal Department for specific guidance, but the U.S. maintains broad prohibitions on dealings with countries such as Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, the non-government controlled areas of the Kherson and Zaporizhzhia regions of Ukraine and the so-called Donetsk People's Republic and Luhansk People's Republic in Ukraine.

Received and acknowledged

Name:

## Exhibit 99.2

**Exhibit 99.2**

**IONIC DIGITAL INC.**

**AUDIT COMMITTEE CHARTER**

**A.** **PURPOSE** 

The Audit Committee (the "**Committee**") of the Board of Directors (the "**Board**") of Ionic Digital Inc. (the "**Company**") shall fulfill the following responsibilities and duties outlined in this Charter (the "**Charter**"):

1. Provide assistance to the Board with respect to its oversight
of:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The quality and integrity of the Company's financial
statements, including the oversight of the Company's accounting and financial reporting processes and the financial statement audits;

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company's compliance with legal and regulatory
requirements applicable to financial statements and accounting and financial reporting processes;

&nbsp;&nbsp;&nbsp;&nbsp;(c) The independent registered public accounting firm's
qualifications, performance and independence;

&nbsp;&nbsp;&nbsp;&nbsp;(d) The design, implementation and performance of the Company's
internal audit function; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) Significant financial matters, including but not limited
to the Company's tax planning, treasury policies, currency exposures, dividends and share issuance and repurchases.

2. Prepare the audit committee report required by the rules of
the U.S. Securities and Exchange Commission (the "**SEC**") to be included in the Company's annual proxy statement.

**B.** **STRUCTURE AND OPERATIONS** 

**Composition and Qualifications**

The Committee shall be comprised of three or more members of the Board, each of whom shall be determined by the Board to be "independent" under the rules of The Nasdaq Stock Market ("**Nasdaq**") and Rule 10A-3(b)(1) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), subject, in each case, to an election by the Company to rely upon applicable transition periods permitted by the SEC and Nasdaq, and shall have the experience, qualifications, attributes and/or skills deemed necessary by the Board to serve on the Committee. In addition, each member of the Committee must not have participated in the preparation of the financial statements of the Company or any current subsidiary of the Company at any time during the past three years.

Each member of the Committee must be able to read and understand fundamental financial statements, including the Company's balance sheet, income statement and cash flow statement. At least one member of the Committee must have past employment experience in finance or accounting, requisite professional certification in accounting, or any other comparable experience or background which results in the individual's financial sophistication, including being or having been a chief executive officer, chief financial officer or other senior officer with financial oversight responsibilities.

It is also expected that at least one member of the Committee will be an "audit committee financial expert" as defined by the applicable rules of the SEC. A director who qualifies as an audit committee financial expert under such SEC rules is presumed to be a person with the financial sophistication described in the preceding paragraph. Committee members may enhance their familiarity with finance and accounting by participating in educational programs conducted by the Company or by an outside consultant.

No member of the Committee may serve simultaneously on the audit committee of more than three public companies (including the Committee). The chairperson of the Committee may not serve simultaneously on the audit committee of more than two public companies (including the Committee).

**Appointment and Removal**

The members of the Committee shall be appointed by the Board based on recommendations from the Nominating and Corporate Governance Committee, and each member shall serve until such member's successor is duly elected and qualified or until such member's earlier resignation, removal, retirement, disqualification or death. The members of the Committee may be removed, with or without cause, by action of the Board at any time in the Board's sole discretion.

**Chairperson**

Unless a chairperson of the Committee (the "**Chairperson**") is selected by the Board, the members of the Committee shall designate a Chairperson by majority vote of the full Committee membership. The Chairperson will chair all regular sessions of the Committee and is responsible for setting the agendas of Committee meetings in consultation with the other Committee members, the chief financial officer, the head of internal audit (or other personnel or service providers responsible for the internal audit function), the chief information security officer (if any), and the independent auditor. In the absence of the Chairperson, the Committee shall select another member to preside.

**Agenda, Minutes and Reports**. An agenda, together with materials relating to the subject matter of each meeting, shall be sent to members of the Committee prior to each meeting. Minutes for all meetings of the Committee shall be prepared to document the Committee's discharge of its responsibilities. The minutes shall be circulated in draft form to all Committee members to ensure an accurate final record, shall be approved at a subsequent meeting of the Committee and may be distributed periodically to the full Board as it may request. The Committee shall make regular reports to the Board and such other periodic reports to the Board as it deems useful from time to time.

**Delegation to Subcommittees**

The Committee may form subcommittees composed of one or more of its independent members for any purpose that the Committee deems appropriate and may delegate to such subcommittees such power and authority as the Committee deems appropriate.

**C.** **MEETINGS** 

The Committee shall meet at least quarterly or more frequently as circumstances dictate. Unless otherwise restricted by the Company's certificate of incorporation or bylaws, the Chairperson or any member of the Committee may call meetings of the Committee. Unless otherwise restricted by the Company's certificate of incorporation, Corporate Governance Guidelines or bylaws, all meetings of the Committee may be held in person, telephonically or by other communications equipment (including video conference) by means of which all persons participating in the meeting can hear each other. In addition, unless otherwise restricted by the Company's certificate of incorporation, Corporate Governance Guidelines or bylaws, the Committee may act by unanimous written consent in lieu of a meeting. Any decision or determination of the Committee reduced to writing and signed by all of the members of the Committee (including by means of electronic transmission) shall be as fully effective as if such decision or determination had been made at a meeting duly called and held.

As part of its goal to foster open communication, the Committee should periodically meet separately with each of management, the independent registered public accounting firm and the internal auditors (or other personnel or service providers responsible for the internal audit function) to discuss any matters that the Committee or each of these groups believe would be appropriate to discuss privately. The Committee should also meet with the independent registered public accounting firm and management on a quarterly basis to review the Company's financial statements in a manner consistent with that outlined in this Charter. The Committee may invite to its meetings any director, management of the Company and such other persons as it deems appropriate in order to carry out its responsibilities. The Committee may also exclude from its meetings any persons it deems appropriate in order to carry out its responsibilities.

A majority of the Committee shall constitute a quorum for the transaction of business, and the vote of a majority of the Committee members present at any meeting at which there is a quorum shall be the act of the Committee.

**D.** **RESPONSIBILITIES, DUTIES AND AUTHORITY** 

The following functions shall be the common recurring activities of the Committee in carrying out its responsibilities. These functions should serve as a guide with the understanding that the Committee may carry out additional functions and adopt additional policies and procedures, or may carry out less than all of the following, in each case as the Committee deems to be required or appropriate in light of business, legislative, regulatory, legal or other conditions or changes. The Committee shall also carry out any other responsibilities and duties delegated to it by the Board from time to time.

The Committee, in discharging its oversight role, is empowered to study or investigate any matter of interest or concern that the Committee deems appropriate. In this regard, the Committee shall have the authority, in its sole discretion, to engage and terminate independent counsel and other advisers, as it determines necessary or appropriate to carry out its duties. However, The Company shall provide appropriate funding, as determined by the Committee, for payment of compensation to the independent registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company and any advisers that the Committee chooses to engage, as well as funding for the payment of ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.

The Committee shall be given full access to the Company's internal auditors (or other personnel or service providers responsible for the internal audit function), Board, corporate executives, employees and independent registered public accounting firm as necessary to carry out its responsibilities and duties.

Notwithstanding the foregoing, the Committee is not responsible for certifying the Company's financial statements or guaranteeing the independent registered public accounting firm's report. The fundamental responsibility for the Company's financial statements and disclosures rests with management while the independent registered public accounting firm is responsible for conducting the annual audit in accordance with the standards of the Public Company Accounting Oversight Board (the "**PCAOB**").

**Documents/Reports Review**

1. Review and discuss with management and the independent registered
public accounting firm prior to public dissemination the Company's annual audited financial statements and quarterly financial
statements, including the Company's specific disclosures under "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and the form of audit opinion to be issued by the independent registered public accounting firm to be
included in the Company's Annual Report on Form 10-K.

2. Discuss with the independent registered public accounting firm
the overall scope and plans for their audits and other financial reviews, as well as matters required to be discussed by the applicable
auditing standards adopted by the PCAOB and approved by the SEC from time to time, including any critical audit matters.

3. Review and discuss with management and the independent registered
public accounting firm the Company's earnings press releases (paying particular attention to the use of any "pro forma,"
"adjusted" or non-GAAP information and measures), as well as financial information and earnings guidance provided to analysts
and rating agencies. The Committee's discussion in this regard may be general in nature (i.e., discussion of the types of information
to be disclosed and the type of presentation to be made) and need not take place in advance of each earnings release or each instance
in which the Company may provide earnings guidance.

4. Review and discuss with management and the independent registered
public accounting firm any major issues arising as to the adequacy and effectiveness of the Company's internal controls, any actions
taken in light of material control deficiencies and the adequacy of disclosures about changes in internal control over financial reporting.

**Independent Registered Public Accounting Firm**

5. Be directly responsible for the appointment, compensation, retention,
oversight and termination of any independent registered public accounting firm engaged for the purpose of preparing or issuing an audit
report or performing other audit, review or attest services for the Company (including the resolution of disagreements between management
and such firm regarding financial reporting).

6. Inform each independent registered public accounting firm engaged
for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company that such
independent registered public accounting firm must report directly to the Committee.

7. Pre-approve all auditing services and non-audit services (other
than "prohibited non-audit services") to be provided to the Company by its independent registered public accounting firm.
The Committee may delegate authority to one or more independent members to grant pre-approvals of audit and permitted non-audit services;
provided that any such pre-approvals shall be presented to the full Committee at its next scheduled meeting. Notwithstanding the foregoing,
pre-approval is not necessary for minor non-audit services only if: (a) the aggregate amount of all such non-audit services provided
to the Company constitutes not more than five percent of the total amount of revenues paid by the Company to its independent registered
public accounting firm during the fiscal year in which the non-audit services are provided; (b) such services were not recognized by
the Company at the time of the engagement to be non-audit services; and (c) such services are promptly brought to the attention of the
Committee and approved prior to the completion of the audit by the Committee or by one or more members of the Committee who are members
of the Board to whom authority to grant such approvals has been delegated by the Committee.

The following shall be "**prohibited non-audit services**": (a) bookkeeping or other services related to the accounting records or financial statements of the Company; (b) financial information systems design and implementation; (c) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (d) actuarial services; (e) internal audit outsourcing services; (f) management functions or human resources; (g) broker-dealer, investment adviser or investment banking services; (h) legal services and expert services unrelated to the audit; and (i) any other service that the PCAOB prohibits through regulation.

8. Review, at least annually, the qualifications, performance and
independence of the independent registered public accounting firm and present its conclusions with respect to the independent registered
public accounting firm to the full Board. In conducting its review and evaluation, the Committee:

&nbsp;&nbsp;&nbsp;&nbsp;(a) will obtain and review a report by the Company's independent
registered public accounting firm describing: (i) such firm's internal quality-control procedures; (ii) any material issues raised
by the most recent internal quality-control review, or peer review, of the independent registered public accounting firm, or by any inquiry
or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits
carried out by such firm, and any steps taken to deal with any such issues; and (iii) the firm's independence, including a written
statement delineating all relationships between such firm and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;(b) will actively engage in a dialogue with the independent registered
public accounting firm with respect to any disclosed relationships or services that may impact such firm's objectivity and independence,
and will take (or recommend that the Board take) appropriate action to oversee the independence of the independent registered public
accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;(c) should review and evaluate the lead audit partner of the
independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;(d) will confirm and evaluate the rotation of the audit partners
on the audit engagement team as required by law, and should consider whether there should be regular rotation of the independent registered
public accounting firm itself; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) should take into account the opinions of management and the
Company's internal auditors (or other personnel or service providers responsible for the internal audit function).

9. Inquire from the independent registered public accounting firm
periodically whether the financial statements of the Company have been selected by the PCAOB for inspection. The Committee shall be apprised
on a "real time" basis of any material developments in connection with any such inspection.

10. Confirm with the independent registered public accounting firm
that the audit was conducted in a manner consistent with Section 10A of the Exchange Act.

**Financial Reporting Process**

11. In consultation with the independent registered public accounting
firm, management and the internal auditors (or other personnel or service providers responsible for the internal audit function), review
the integrity of the Company's financial reporting processes. In that regard, the Committee must obtain and discuss with management
and the independent registered public accounting firm reports from management and the independent registered public accounting firm regarding:

&nbsp;&nbsp;&nbsp;&nbsp;(a) all critical accounting policies and practices to be used
by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;(b) analyses prepared by management and/or the independent registered
public accounting firm setting forth significant financial reporting issues and judgments made in connection with the preparation of
the financial statements, including all alternative treatments of financial information within GAAP related to material items that have
been discussed with the Company's management, the ramifications of the use of the alternative disclosures and treatments, and the
treatment preferred by the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;(c) major issues regarding accounting principles and financial
statement presentations, including any significant changes in the Company's selection or application of accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(d) major issues as to the adequacy of the Company's internal
controls and any special audit steps adopted in light of material control deficiencies; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) any other material written communications between the independent
registered public accounting firm and the Company's management.

The Committee should also obtain and discuss with the independent registered public accounting firm other material written communications between the independent registered public accounting firm and management, such as any management letter or schedule of unadjusted differences.

12. Review periodically the effect of regulatory and accounting
initiatives, as well as off-balance sheet structures (if any), on the financial statements of the Company.

13. Review with the independent registered public accounting firm
(a) any audit problems or difficulties encountered by such firm in the course of the review or audit work, including any restrictions
on the scope of its activities or on access to requested information, and any significant disagreements with management; and (b) management's
responses to such matters. Without excluding other possibilities, the Committee may wish to review with the independent registered public
accounting firm (x) any accounting adjustments that were noted or proposed by such firm but were "passed" (as immaterial
or otherwise); (y) any communications between the audit team and the independent registered public accounting firm's national office
respecting auditing or accounting issues presented by the engagement; and (z) any "management" or "internal control"
letter issued, or proposed to be issued, by the independent registered public accounting firm to the Company.

**Internal Audit**

14. Oversee the Company's internal audit function, which may
be outsourced to a third-party service provider.

15. Review the significant reports to management prepared by the
internal auditors (or other personnel or service providers responsible for the internal audit function) and management's responses.

16. Review and discuss the responsibilities, budget and staffing
of the Company's internal audit function with management and, if appropriate, with the independent registered public accounting
firm and/or any third-party service provider providing internal audit services to the Company.

**Legal Compliance / General**

17. Periodically review and discuss with the Company's Chief
Legal Officer or their designee any legal matters, including legal compliance with any applicable laws and regulations, any correspondence
with regulators or governmental agencies and any published reports, that have been brought to the Committee's attention and that
could have a significant impact on the Company's financial statements. The Chief Legal Officer has express authority to communicate
personally with the Chair about any such matters (as appropriate).

18. Review and discuss with management and the independent registered
public accounting firm the Company's guidelines and policies with respect to risk assessment and risk management. The Committee
should discuss the Company's major financial risk exposures and the steps management has taken to monitor and control such exposures.

19. Set clear policies for hiring employees or former employees
of the independent registered public accounting firm. At a minimum, these policies must provide that any independent registered public
accounting firm may not provide audit services to the Company if the chief executive officer, controller, chief financial officer, chief
accounting officer or any person serving in an equivalent capacity for the Company was employed by the independent registered public
accounting firm and participated in any capacity in the audit of the Company during the one-year period preceding the date of the initiation
of the audit.

20. Establish procedures for: (a) the receipt, retention and treatment
of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters; and (b) the confidential,
anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.

21. At least quarterly, obtain from the head of internal audit (or
other personnel or service providers responsible for the internal audit function) and/or the Chief Legal Officer, reports on the Company's
ethics and compliance program, including confirmation that the Company and its subsidiaries are in conformity with applicable legal and
regulatory requirements and the Company's Global Code of Conduct and Ethics (the "**Code** "). The Committee alone
or in consultation with the head of internal audit (or other personnel or service providers responsible for the internal audit function)
and/or the Chief Legal Officer shall investigate any alleged breach or violation of the Code and enforce its provisions. The Committee
shall periodically, but not less frequently than annually, review with management, including the Chief Legal Officer, the implementation
and effectiveness of the Company's compliance and ethics program, including the Whistleblower Policy and the Code, and other procedures
for monitoring compliance with laws and policies on business integrity, ethics and conflicts of interest, including foreign corrupt practice,
antitrust and insider trading matters.

22. Unless otherwise approved or ratified pursuant to the Board's
"Related Person Transaction Policy," the Committee shall review and approve or ratify all transactions between the Company
and any Related Person that are required to be disclosed pursuant to Item 404(a) of Regulation S-K ("Item 404(a)"). "Related
Person" shall have the meaning given to such term in Item 404(a) of Regulation S-K.

23. Review and approve at least on an annual basis, if applicable,
the decisions by management to enter into derivative transactions on a cleared or non-cleared basis, and the policies and processes of
the Company related thereto, and review and recommend to the Board on matters pertaining to the Company's derivative transactions
and hedging strategy.

24. Review with management the Company's policies and processes
for tax planning and compliance.

25. Review and discuss with management the Company's information
technology systems and controls and the Company's privacy and data security risk exposures, including: the potential impact of those
exposures on the Company's business, financial results, operations and reputation; the steps management has taken to monitor and mitigate
such exposures; contingency and business continuity plans in the event of a failure of any information technology systems; and major
legislative and regulatory developments that could materially impact the Company's privacy and data security risk exposure.

**Reports**

26. Oversee preparation of the Audit Committee report required by
the SEC to be included in the Company's annual proxy statement.

27. Report regularly to the Board, including:

&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any issues that arise with respect to the
quality or integrity of the Company's financial statements, the Company's compliance with legal or regulatory requirements,
the qualification, performance and independence of the Company's independent registered public accounting firm or the performance
of the internal audit function;

&nbsp;&nbsp;&nbsp;&nbsp;(b) following meetings of the Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to such other matters as are relevant to the
Committee's discharge of its responsibilities.

The Committee shall provide such recommendations to the Board as the Committee may deem appropriate. The report to the Board may take the form of an oral report by the Chairperson or any other member of the Committee designated by the Committee to make such report.

28. Maintain minutes or other records of meetings and activities
of the Committee.

**E. EVALUATION**

It is expected that the Committee will periodically review and evaluate its performance, including by reviewing its compliance with this Charter. In addition, the Committee shall review and reassess, at least annually, the adequacy of this Charter and recommend to the Board for approval any proposed changes to this Charter that the Committee considers necessary or appropriate. The Committee shall conduct such review in such manner as it deems appropriate.

## Ex-Filing

?xml version='1.0' encoding='ASCII'? Filing Fee Exhibit

**Ex-Filing Fees**

**CALCULATION OF FILING FEE TABLES**

**S-1**

**IONIC DIGITAL INC.**

**Table 1: Newly Registered and Carry Forward Securities**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Line Item Type** | **Security Type** | **Security Class Title** | **Notes** | **Fee Calculation<br> Rule** | **Amount Registered** | **Proposed Maximum Offering<br> Price Per Unit** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* |
| Fees to be Paid | Equity | Class A common stock, par value $0.00001 per share | (1) | 457(a) | 7781306 | $20.40 | $158738642.40 | 0.0001381 | $21921.81 |
| Fees to be Paid | Equity | Class A common stock issuable upon exercise of $63.60 strike price warrants | (2) | Other | 1006286 | 63.60 | 63999789.60 | 0.0001381 | 8838.37 |
| Fees to be Paid | Equity | Class A common stock issuable upon exercise of $74.20 strike price warrants | (3) | Other | 1006286 | 74.20 | 74666421.20 | 0.0001381 | 10311.43 |
| Fees to be Paid | Equity | Class A common stock issuable upon exercise of $87.45 strike price warrants | (4) | Other | 1006286 | $87.45 | $87999710.70 | 0.0001381 | $12152.76 |
| Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | $385404563.90 |  | 53224.37 |
| Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: |  |  |  |
| Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: |  |  | 0.00 |
| Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: |  |  | $53224.37 |

---

**__________________________________________ Offering Note(s)**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Estimated solely for the purposes of calculating the registration fee pursuant to Rule 457(a) of the Securities Act. Given that there is no proposed maximum offering price per share of Class A common stock, the Registrant calculated the proposed maximum offering price per share, by analogy to Rule 457(f)(2), based on the pro forma total stockholders' equity of the Class A common stock the Registrant registers, or $20.40 per share, which was calculated from its pro forma balance sheet as of March 31, 2026. Given that the Registrant's shares of Class A common stock are not traded on exchange or over-the-counter, the Registrant did not use the trading prices of its Class A common stock in accordance with Rule 457(c). Pursuant to Rule 416 under the Securities Act of 1933, as amended (the "Securities Act"), the Registrant is also registering such additional indeterminate number of Class A common stock as may become issuable as a result of stock splits or stock dividends.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Pursuant to Rule 416 under the Securities Act, the Registratnt is also registering such additional indeterminate number of shares of Class A Common Stock issuable as a result of stock splits or stock dividends.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Pursuant to Rule 416 under the Securities Act, the Registratnt is also registering such additional indeterminate number of shares of Class A Common Stock issuable as a result of stock splits or stock dividends.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Pursuant to Rule 416 under the Securities Act, the Registratnt is also registering such additional indeterminate number of shares of Class A Common Stock issuable as a result of stock splits or stock dividends.