# EDGAR Filing Document

**Accession Number:** 0002042022
**File Stem:** 0001213900-25-063338
**Filing Date:** 2025-7
**Character Count:** 2215073
**Document Hash:** 4f3b6ffd6574b1c32f3dad3482c1b8dd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-063338.hdr.sgml**: 20260129

**ACCESSION NUMBER**: 0001213900-25-063338

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 159

**FILED AS OF DATE**: 20250711

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** White Fiber, Inc.
- **CENTRAL INDEX KEY:** 0002042022
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288650
- **FILM NUMBER:** 251119629

**BUSINESS ADDRESS:**
- **STREET 1:** 31 HUDSON YARDS
- **STREET 2:** FLOOR 11
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001
- **BUSINESS PHONE:** 212-463-5121

**MAIL ADDRESS:**
- **STREET 1:** 31 HUDSON YARDS
- **STREET 2:** FLOOR 11
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** White Fiber, Inc.
- **DATE OF NAME CHANGE:** 20241021

**AS FILED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION ON JULY 11, 2025**

**Registration Statement No. 333-**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT<br> UNDER**

**THE SECURITIES ACT OF 1933**

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| |
|:---|
| **WHITEFIBER, INC.** |
| *(Exact name of Registrant as specified in its Charter)* |

---

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| | | |
|:---|:---|:---|
| **Cayman Islands** | **7374** | **61-2222606** |
| *(State or other jurisdiction of<br> incorporation or organization)* | *(Primary Standard Industrial*<br> *Classification Code Number)* | *(I.R.S. Employer*<br> *Identification No.)* |

---

**31 Hudson Yards, Floor 11, Suite 30**

**New York, New York 10001**

**<u>(212) 463-5121</u>**

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

**N/A**

(Former name or former address, if changed since last report)

**Sam Tabar<br> Chief Executive Officer**

**31 Hudson Yards, Floor 11, Suite 30**

**New York, New York 10001**

**<u>(646) 801-0779</u>**

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

*Copies to:*

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| | | | |
|:---|:---|:---|:---|
| **Laura Katherine Mann**<br> **Bryson Manning**<br> **White & Case LLP**<br> **609 Main Street**<br> **Houston, TX 77002**<br> **Telephone: (713) 496-9700** | **Pratin Vallabhaneni**<br> **Erica Hogan**<br> **White & Case LLP**<br> **1221 Avenue of the Americas**<br> **New York, NY 10020**<br> **Telephone: (212) 819-8200** | &nbsp;&nbsp; **Elliot H. Lutzker, Esq.**<br> **Davidoff Hutcher & Citron LLP<br> 605 Third Avenue, 34<sup>th</sup> Floor<br> New York, NY 10158<br> Telephone: (646) 428-3210** | &nbsp;&nbsp; **Jeeho Lee, Esq.** <br> **David Ni, Esq.**<br> **O'Melveny & Myers LLP**<br> **1301 Avenue of the Americas, <br> 17<sup>th</sup> Floor** <br> **New York, NY 10019<br> Telephone: (212) 326-2000**<br>|

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

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

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

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

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

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> 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 Section 8(a), may determine.**

**The information in this prospectus is not complete and may change. We may not sell these securities, or accept an offer to buy these securities, until the Registration Statement filed with the Securities and Exchange Commission, of which this prospectus is a part, is effective. This prospectus is not an offer to sell these securities and is not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.**

---

| | |
|:---|:---|
| **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION: DATED JULY 11, 2025** |

---

**PROSPECTUS**

![](image_001.jpg)

**WHITEFIBER, INC.**

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

This is the initial public offering of Ordinary Shares of WhiteFiber, Inc. We are offering Ordinary Shares to be sold in this offering. We expect the initial public offering price per share to be in the range of $ to $ per share.

Currently, no market exists for our Ordinary Shares. We have applied to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "WYFI."

We are a "smaller reporting company" and an "emerging growth company," each as defined under the federal securities laws and, as such, may elect to comply with certain reduced public company reporting requirements for this and future filings. See "*Prospectus Summary – Implications of Being a Smaller Reporting Company*" and "*Prospectus Summary – Implications of Being an Emerging Growth Company*."

Upon the completion of this offering, Bit Digital, Inc. will hold approximately 80% of our issued and outstanding Ordinary Shares and will be able to exercise approximately 80% of the total voting power of our issued and outstanding Ordinary Shares immediately after the consummation of this offering, irrespective of whether the underwriters exercise their over-allotment option. As a result, we will be a "controlled company" as defined under the Nasdaq Listing Rules and qualify for exemptions from certain Nasdaq corporate governance requirements. Although we do not intend to utilize any exemptions from the Nasdaq corporate governance standards upon completion of this offering, we may utilize any or all of these exemptions at any time at our discretion until we cease to be a "controlled company." For more information including a more detailed description of risks related to being a "controlled company," see "*Prospectus Summary – Implications of Being a Controlled Company*" and "*Risk Factors – Risks Relating to Our Business and Industry* – *We will be a "controlled company" as defined under the Nasdaq Listing Rules. Although we do not intend to rely on the "controlled company" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future and you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements*."

***Investing in our Ordinary Shares involves a high degree of risk. See "Risk Factors" beginning on page 17 to read about factors you should consider before buying our Ordinary Shares.***

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

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| | |
|:---|:---|
|  | **Total** |
| Initial public offering price | $— |
| Underwriting discount and commissions<sup>(1)</sup> | $— |
| Proceeds, before expenses, to us | $— |

---

(1) See "*Underwriting*" for additional information regarding underwriting compensation.

We have granted a 30-day option to the underwriters to purchase up to additional Ordinary Shares solely to cover over-allotments, if any.

The underwriters expect to deliver the Ordinary Shares to purchasers on or about , 2025, through the book-entry facilities of The Depository Trust Company.

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; *Bookrunners*<br>|  |
| **B. Riley Securities** |  | **Needham & Company** |
| **The date of this prospectus is , 2025** | **The date of this prospectus is , 2025** | **The date of this prospectus is , 2025** |

---

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page No.** |
| [ABOUT THIS PROSPECTUS](#b_001) | ii |
| [MARKET AND INDUSTRY DATA](#b_002) | ii |
| [NON-GAAP FINANCIAL MEASURES](#b_003) | iii |
| [COMPANY AND SUBSIDIARIES](#b_004) | iii |
| [GLOSSARY](#b_005) | iv |
| [PROSPECTUS SUMMARY](#b_006) | 1 |
| [SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL AND OPERATING DATA](#b_007) | 15 |
| [RISK FACTORS](#b_008) | 17 |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#b_009) | 54 |
| [USE OF PROCEEDS](#b_010) | 55 |
| [DIVIDEND POLICY](#b_011) | 56 |
| [CAPITALIZATION](#b_012) | 57 |
| [DILUTION](#b_013) | 58 |
| [UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS](#b_014) | 59 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#b_015) | 72 |
| [BUSINESS](#b_016) | 91 |
| [MANAGEMENT](#b_017) | 107 |
| [EXECUTIVE AND DIRECTOR COMPENSATION](#b_018) | 115 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#b_019) | 121 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#b_020) | 124 |
| [DESCRIPTION OF WHITEFIBER SHARE CAPITAL](#b_021) | 125 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#b_022) | 133 |
| [CERTAIN MATERIAL CAYMAN ISLANDS TAX CONSIDERATIONS](#b_023) | 135 |
| [CERTAIN MATERIAL UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS](#b_024) | 135 |
| [UNDERWRITING](#b_025) | 140 |
| [LEGAL MATTERS](#b_026) | 146 |
| [EXPERTS](#b_027) | 146 |
| [WHERE YOU CAN FIND MORE INFORMATION](#b_028) | 146 |
| [INDEX TO COMBINED FINANCIAL STATEMENTS](#b_029) | F-1 |

---

i

**Through and including , 2025 (25 days after the date of this prospectus), all dealers that buy, sell or trade our Ordinary Shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

*For investors outside of the United States*: Neither we nor any of the underwriters have done anything that would permit this offering 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 Ordinary Shares and the distribution of this prospectus outside of the United States.

**ABOUT THIS PROSPECTUS**

You should rely only on information contained in this prospectus any applicable prospectus supplement or any free writing prospectus filed by us with the Securities and Exchange Commission, or the SEC. Neither the delivery of this prospectus nor the sale of our securities means that the information contained in this prospectus is correct after the date of this prospectus.

This prospectus is not an offer to sell or the solicitation of an offer to buy our securities in any circumstances under which the offer or solicitation is unlawful or in any state or other jurisdiction where the offer is not permitted. The information contained in this prospectus is accurate only as of its date regardless of the time of delivery of this prospectus or of any sale of Ordinary Shares. Our business, financial condition, results of operations, and future growth prospects may have changed since that date.

Neither we nor the underwriters have authorized anyone to provide you with any information or to make any representations other than those contained in this prospectus or any applicable prospectus supplement or any free writing prospectuses prepared by or on behalf of us or to which we have referred you. Neither we nor the underwriters take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. Neither we nor the underwriters will make an offer to sell these securities in any jurisdiction where the offer or sale is not permitted.

Unless the context indicates otherwise, references in this prospectus to the "Company," "WhiteFiber" "we," "us," "our" and similar terms refer to WhiteFiber, Inc. and its combined subsidiaries after giving effect to the Reorganization (as defined below) and this offering.

**MARKET AND INDUSTRY DATA**

Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity, and market size, is based on information from various third-party industry and research sources, as well as assumptions that we have made that are based on those data and other similar sources, and on our knowledge of the markets for our products and services. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we believe the market position, market opportunity, and market size information included in this prospectus is generally reliable, information of this sort is inherently imprecise. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry in which we operate is necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section titled "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

ii

**NON-GAAP FINANCIAL MEASURES**

This prospectus includes non-GAAP financial measures, including EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are considered non-GAAP financial measures and are comparable to the corresponding GAAP measures of Net income. WhiteFiber believes these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to its peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment.

Management believes Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of the Company's operating performance by excluding stock- based compensation as they are considered non-cash and not part of the Company's core operations. Rating agencies and investors will also use EBITDA and Adjusted EBITDA to calculate WhiteFiber's leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. WhiteFiber's management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating its operating results internally and calculating compensation packages and leverage as a multiple of EBITDA and Adjusted EBITDA to determine the appropriate method of funding operations of the Company.

EBITDA is calculated by adding back income taxes, interest expense and depreciation and amortization expense to net income. Adjusted EBITDA is calculated by adding back stock-based compensation to EBITDA.

These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income and are intended to be helpful supplemental financial measures for investors' understanding of WhiteFiber's operating performance. WhiteFiber's non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' EBITDA and Adjusted EBITDA measures having the same or similar names.

**COMPANY AND SUBSIDIARIES**

● WhiteFiber, Inc. ("WhiteFiber") was incorporated by Bit Digital as a Cayman Islands exempted company on August 15, 2024 under the name Celer, Inc., as a holding company for the HPC Business (as defined below).

● WhiteFiber AI, Inc. ("WhiteFiber AI") is a wholly-owned Delaware subsidiary of Bit Digital, incorporated on October 19, 2023 under the name Bit Digital AI, Inc. WhiteFiber AI has since been engaged in cloud services for AI applications through its wholly-owned subsidiaries.

● WhiteFiber Iceland ehf ("WhiteFiber Iceland") is a wholly-owned Icelandic subsidiary of WhiteFiber AI, incorporated by a third party on August 17, 2023 under the name Bit Digital Iceland ehf. WhiteFiber Iceland is directly and wholly-owned by WhiteFiber AI, is classified as a "controlled foreign corporation" for U.S. Federal Income tax purposes and is engaged in cloud services at the data center in Blönduós, Iceland.

● WhiteFiber HPC, Inc. is a wholly-owned Delaware subsidiary of WhiteFiber AI, incorporated on June 27, 2024 under the name Bit Digital HPC, Inc. to conduct the HPC Business.

● Enovum Data Centers Corp. ("Enovum") is a wholly-owned Canadian subsidiary of WhiteFiber, through a Delaware general partner and limited partner in a Delaware operating partnership. Enovum was incorporated on July 13, 2023 and is now integrated into our HPC Business in Canada.

● WhiteFiber Japan G.K. was incorporated as a company under the laws of Japan on May 22, 2025 and is a wholly-owned subsidiary of WhiteFiber AI.

iii

**GLOSSARY**

Throughout this prospectus, we use a number of terms and concepts which are defined as follows:

● <u>A&R M&A</u>: the Amended and Restated Memorandum and Articles of Association filed of the Company to be adopted by the Company and filed with the Registrar of Companies of the Cayman Islands in connection with this offering.

● <u>Canadian dollars</u>: official currency of Canada. All Canadian dollar amounts in this prospectus have been converted to U.S. dollars at the then-prevailing rate reported by Bloomberg LLP on the date of the applicable transaction.

● <u>Capacity Agreement</u>: the letter agreement dated May 16, 2025 between Enovum and Duke Energy Carolinas, LLC ("Duke Energy"), pursuant to which Duke Energy agreed to use commercially reasonable efforts to provide energy to the Company's Greensboro, North Carolina site (NC-1).

● <u>Colocation</u>: a colocation is a data center facility that rents out rack space to third parties for their servers or other network equipment. Colocation references the fact that servers and other equipment from many different companies are 'co-located' in one data center and/or that end client hardware is located in multiple data centers.

● <u>Commissioning</u>: in construction, commissioning or commissioning process is an integrated, systematic process to ensure that all building systems perform interactively according to the "design intent" through documented verification.

● <u>Companies Act</u>: Companies Act (Revised) of the Cayman Islands.

● <u>GPUs</u>: graphics processing units are specialized computer chips, designed for parallel processing of many pieces of data simultaneously, making them useful for machine learning and artificial intelligence.

● <u>Gross load</u>: the total electrical power demand of a data center, encompassing all equipment and infrastructure, including power for lighting, building systems, cooling systems, and other support infrastructure. Unless otherwise specified for a particular contract, all MW references are to gross capacity.

● <u>High-performance computing ("HPC")</u>: HPC is the practice of aggregating computing resources to gain performance greater than that of a single workstation, server, or computer.

● <u>IT load</u>: refers to the data center load that is consumed by customers and is dedicated to IT equipment such as servers, storage equipment and communication switches and routers.

● <u>N+1 cooling</u>: a type of redundancy. As applied to HVAC systems (cooling) it adds an extra unit to the required number, ensuring continuous operation during maintenance or failure.

● <u>2N UPS</u>: a fully redundant uninterruptible power supply ("UPS") system, which means it has twice the necessary UPS capacity to guarantee no downtime due to power issues.

● <u>2N generators</u>: a system where there are two completely independent generators, essentially creating a fully redundant power source, meaning if one generator fails, the other can immediately take over without any interruption in power supply.

● <u>Neo-Cloud provider</u>: a Cloud provider specializing in AI infrastructure as a service.

● <u>On-demand computing</u>: a delivery model in which computing resources are made available to the user as needed. The resources are usually made available by a cloud service provider. On-demand computing normally provides computing resources such as storage capacity, or hardware and software applications.

● <u>Tier-3 data center</u>: data centers that are concurrently maintainable. Each and every capacity component and distribution path in a site can be removed on a planned basis for maintenance or replacement without impacting operations.

iv

**PROSPECTUS SUMMARY**

 

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our Ordinary Shares. You should carefully read this prospectus in its entirety before investing in our Ordinary Shares, including the sections titled "Risk Factors," "Cautionary Statement Regarding Forward-Looking Statements," and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our combined financial statements and the accompanying notes, provided elsewhere in this prospectus. Some of the statements in this prospectus constitute forward-looking statements. See the section titled "Cautionary Statement Regarding Forward-Looking Statements." Unless the context otherwise requires, the terms "WhiteFiber, Inc.," "the Company," "we," "us," and "our" in this prospectus refer to WhiteFiber, Inc., an exempted company with limited liability incorporated and registered in the Cayman Islands, and our combined subsidiaries after giving effect to the Reorganization. Bit Digital, Inc. ("Bit Digital"), an exempted company with limited liability incorporated and registered in the Cayman Islands and our parent company, has entered into a Contribution Agreement to transfer 100% of the capital shares of its subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc. and WhiteFiber Iceland, ehf (collectively, "WhiteFiber AI") to the Company upon the effectiveness of the registration statement of which this prospectus is a part (collectively, the "Contribution"). This section assumes the Contribution has occurred.*

 

**Overview**

We believe we are a leading provider of artificial intelligence ("AI") infrastructure solutions. We own high-performance computing ("HPC") data centers and provide cloud-based HPC graphics processing units ("GPU") services, which we term cloud services, for customers such as AI application and machine learning ("ML") developers (the "HPC Business"). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference. In connection with this offering, we are being carved out of Bit Digital, Inc. and will operate as a separate public company upon the completion of this offering.

Starting in October 2024, we significantly expanded our data center operations and capabilities by acquiring Enovum, a Tier-3 HPC data center platform based in Montreal, Canada. We currently operate a 4 MW (gross) AI data center located in Montreal, Canada ("MTL-1"). MTL-1 is a fully operational Tier-3 data center that is designed for HPC workloads. MTL-1's full capacity is occupied by 14 customers under lease agreements with an average duration of approximately 30 months as of May 30, 2025. On December 27, 2024, we acquired the real estate and building for a build-to-suit 5 MW (gross) Tier-3 data center expansion project in Montreal ("MTL-2").

On April 11, 2025 we announced that we had secured the rights to a new data center site in Saint-Jérôme, Québec, a suburb of Montreal ("MTL-3"), which will be a 7 MW (gross) Tier-3 data center. Subject to our receipt of all required permits, MTL-3 will support a previously announced 5 MW (IT load) colocation agreement with Cerebras Wafer Scale ULC Systems ("Cerebras"), a leader in generative AI infrastructure.

On May 20, 2025, we purchased a former industrial/manufacturing building together with the underlying land outside of Greensboro, North Carolina (the "Property"), which we intend to retrofit to create an HPC data center ("NC-1"). Pursuant to a Capacity Agreement between Enovum and Duke Energy, Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025, 40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of May 16, 2025. Management believes based upon its review of the site and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

MTL-2, MTL-3 and NC-1 were identified and sourced through our confidential pipeline of development or acquisition opportunities under letters of intent or evaluation, which continues to grow and expand geographically throughout North America. The MTL-2 data center is expected to be completed and operational in the fourth quarter of 2025 with a one-month delay before it begins to generate revenue. MTL-3 is expected to be completed and operational in the fourth quarter of 2025 with a one-month delay before it begins to generate revenue. We estimate that the initial capacity of 24 MW (gross) for the NC-1 site will be completed and operational in the first quarter of 2026. Management expects the NC-1 site will start to generate revenue in May 2026. The MTL-2, MTL-3 and NC-1 facilities are in various stages of being retrofitted into data centers. The foregoing timelines and capacities are subject to change based on many factors required in order to commence operations, many of which are outside of our control. The construction phases associated with the completion of the applicable facility are done in parallel in a process defined as commissioning. This work consists of the buildout of interior systems and mechanical, electrical and regulatory construction. Once all building systems perform interactively according to "design intent," the commissioning is complete and the facility can be turned on.

Based on their collective industry experience, our WhiteFiber data center team is adept at bringing new sites online on an accelerated timeline. We are aggressively pursuing our development pipeline and expect to add 12 MW (gross) of capacity, inclusive of the MTL-2 and MTL-3 sites, for total capacity of approximately 16 MW (gross), by the end of 2025. Management expects another 24 MW (gross) will be energized in the first quarter of 2026 and that an incremental 16 MW (gross) will be energized in the second quarter of 2026 for a total of 40 MW (gross) at the NC-1 site by the end of the second quarter of 2026. We intend to achieve an estimated 76 MW (gross) of total HPC data center capacity by the end of the fourth quarter of 2026, a target that is underpinned by assets including our MTL-2, MTL-3, and NC-1 facilities plus 20 MW (gross) of power that we expect to deliver from our confidential pipeline or through accelerating the number of energized MWs at NC-1 as compared to the timeline provided in the Capacity Agreement. As of June 30, 2025, our pipeline of potential data center projects represents approximately 1,300 MW (gross) under management review, including approximately 800 MW (gross) under non-binding and exclusive letters of intent, which may complement and accelerate future expansion. We follow a disciplined process prioritizing projects that are backed by customer lease commitments. In select cases, we may pursue early-stage acquisitions based on strong customer demand signals and defined commercialization pathways. Our ability to achieve our targeted MW capacity is conditioned upon our ability to obtain additional equity and/or debt financing, in addition to this offering.

In addition to providing highly desirable data center hosting capacity to our customers, our business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Our integrated approach aligns specialized data center operations with GPU-focused cloud services, addressing the unique requirements of AI and ML workloads. These workloads demand greater power density, advanced cooling solutions, and robust bandwidth to handle large-scale data transfers. By operating our data centers, we are able to provide the power to support our cloud services and we believe we can better meet the needs of AI and ML workloads and reduce the complexity associated with procuring power and connectivity from external vendors. We can also design our facilities to accommodate the higher heat loads generated by modern GPUs, potentially shortening deployment timelines for customers who require rapid expansion of their computing infrastructure. From a financial standpoint, our vertically integrated solution allows us to capture additional margin for both our data center and cloud services businesses, avoiding expenses that would otherwise be due to third-party providers.

Our WhiteFiber cloud services business provides cutting-edge, bespoke services involving a sophisticated array of computers and chips, including NVIDIA GPUs, servers, network equipment, and data storage solutions. We believe we provide our cloud services customers with the highest levels of performance and reliability while offering flexibility to scale with customer needs. We have developed a software layer to be integrated into our cloud services solutions that will assist our customers in the deployment of AI applications with superior performance. We currently offer our cloud services at a data center maintained by a third-party colocation provider in Iceland (the "Iceland Data Center") and are negotiating with third-party providers to seamlessly integrate our cloud services at data centers across key regions in Europe, North America and Asia. In the fourth quarter of 2023, we secured our first cloud customer through a three-year Master Service Agreement dated November 9, 2023 to provide services using our advanced AI equipment. For the three months ended March 31, 2025 and 2024, our WhiteFiber cloud service business recognized revenue of $14.8 million and $8.1 million, respectively. Such revenue for the 12 months ended December 31, 2024 and 2023 was $45.7 million and $0, respectively. As of June 30, 2025, WhiteFiber had approximately 4,500 NVIDIA GPUs deployed, with approximately 4,000 GPUs under contract.

***Reorganization and Relationship with Bit Digital***

We are currently a wholly-owned subsidiary of Bit Digital. We intend to sell approximately 20% of our issued and outstanding Ordinary Shares to the public as part of this offering. We will enter into a Contribution Agreement with Bit Digital, pursuant to which Bit Digital will contribute its HPC business through the transfer of 100% of the capital shares of its cloud services subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc. and WhiteFiber Iceland, ehf, to the Company, upon the effectiveness of the registration statement of which this prospectus is a part and prior to the consummation of this offering (the "Contribution"). In connection with the Contribution, we will issue Ordinary Shares to Bit Digital (or up to Ordinary Shares to Bit Digital, if the underwriters' over-allotment option is exercised in full, which may occur at any point during the 30 days after the consummation of this offering), such that Bit Digital will own approximately 80% of our issued and outstanding Ordinary Shares upon the consummation of this offering (the "Bit Digital Issuance" and, collectively with the Contribution, the "Reorganization").

Following this offering, certain of our directors, executive officers and other members of senior management will continue to serve as directors, officers and employees of Bit Digital. We have added additional executive officers and senior management to our senior executive team apart from those serving as officers and employees of Bit Digital. We have assembled a senior operating team with approximately 15 years of experience on average for each individual in the data center and cloud services industries. We will appoint additional independent directors upon the commencement of trading of our Ordinary Shares and will consider adding other professionals to our executive ranks in the future.

***WhiteFiber data centers***

We design, develop, and operate data centers, through which we offer our hosting and colocation services. Our operational data centers meet the requirements of the Tier-3 standard, including N+1 redundancy architecture, concurrent maintainability, uninterruptible power supply, advanced and highly reliable cooling systems, strict monitoring and management systems, 99.982% uptime and no more than 1.6 hours of downtime annually, service organization control SOC 2 Type 2, differentiated software supporting AI workloads, high density and robust bandwidth, and infrastructure to support AI workloads.

We acquired Enovum on October 11, 2024. The transaction included the lease to MTL-1, a fully operational and fully leased to customers 4 MW (gross) Tier-3 datacenter headquartered in Montreal, Canada. As of May 30, 2025, MTL-1 hosts over 5,000 GPUs, including NVIDIA H200s and H100s, on behalf of 14 customers across a variety of end markets.

On December 27, 2024, we acquired the real estate and building for a build-to-suit 5 MW (gross) Tier-3 data center expansion project near Montreal, Canada, which we refer to as MTL-2. MTL-2, a 160,000 square foot site that was previously used as an encapsulation manufacturing facility, is located in Pointe-Claire, Quebec. We initially funded the purchase of CAD $33.5 million (approximately USD $23.3 million) with cash on hand. We expect to invest approximately USD $23.6 million to develop the site to Tier-3 standards with an initial load of 5 MW (gross). MTL-2 is expected to be completed and operational in the fourth quarter of 2025 with a one-month delay before it begins to generate revenue.

As an example of the increasing demand for high density, AI-optimized colocation, in January 2025 we entered into a five-year colocation agreement with Cerebras, a leading AI hardware innovator. Cerebras is a pioneering Wafer Scale technology, which enables ultra-fast AI interface or some of the largest and most complex AI workloads in the world. Cerebras is launching six new data center sites in North America and chose WhiteFiber to be its partner for its first Canadian data center. Under the agreement, we will provide Cerebras 5 MW (IT load) of built-to suit data center infrastructure for a period of five years. The contract is expected to be fulfilled at MTL-3. Cerebras was granted a right of first refusal to purchase additional power capacity that becomes available at the MTL-3 site pursuant to the terms and conditions of the agreement.

In April 2025, we entered into a lease for MTL-3. The MTL-3 facility spans approximately 202,000 square feet on 7.7 acres and is being developed as a 7 MW (gross) Tier-3 data center. It will support current contracted capacity with Cerebras (5 MW IT Load), with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure which includes an exclusive fixed-price purchase option of CAD $24.2 million (approximately USD $17.3 million) exercisable by December 2025. The lease term is 20 years, with two 5-year extensions at our option. Subject to our receipt of all required permits, the facility is being retrofitted to Tier-3 standards, with development costs expected to total approximately USD $41 million, and is expected to be completed and operational in the fourth quarter of 2025, with a one-month delay before we expect to begin to generate revenue. We believe that our agreement with Cerebras demonstrates our ability to deliver sophisticated, high-performance colocation solutions tailored for next-generation AI workloads. We intend to support Cerebras's computing needs with our expertly designed data center infrastructure, delivering the reliability and scalability essential for AI innovation.

On May 20, 2025 (the "Closing Date"), we completed the purchase of NC-1, a former industrial/manufacturing building outside of Greensboro, North Carolina, as well as certain machinery and equipment located thereon, for a cash purchase price of $45 million. The purchase price will increase by (i) $8 million, if Duke Energy actually provides, or provides an Electric Services Agreement providing for, at least 99 MW (gross) within two years of the Closing Date or (ii) $5 million, if Duke Energy actually provides, or provides an Electric Services Agreement providing for, at least 99 MW (gross) more than two years but less than three years after the Closing Date. Additionally, the purchase price will increase by an additional $200,000 per MW over 99 MW (gross) up to a maximum of $5 million if at least 99 MW (gross) are actually delivered, or Duke Energy provides an Electric Services Agreement for the provision of at least 99 MW (gross), within four years of the Closing Date. Separately, we entered into the Capacity Agreement with Duke Energy pursuant to which Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025, 40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of May 16, 2025. Management believes based upon its review of the site and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

We have developed a software capability, called WhiteFiber Cloud AI, which is intended to link GPU clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius of approximately 80 kilometers. One of the first customers to utilize this application is the platform Shadeform. Shadeform provides an AI compute marketplace where customers can request paid access to compute resources. By productizing cross-data center operation, we intend to create a single supercluster, enabling us to sidestep potential fragmentation problems and dynamically "borrow" compute or storage resources from any site. We believe that this approach will enable us to overcome scale limitations, optimize performance and provide built-in redundancy.

We believe that our HPC data center development and operating model provides highly attractive unit economics for our investors. We estimate that our capital expenditure requirement to develop a cutting edge, Tier-3 data center is between $7 and $9 million per gross MW, which excludes a targeted real estate acquisition cost of approximately $1 million per gross MW. Consistent with common industry practice, we anticipate that approximately 70% of this capital expenditure budget will be financed with facility-level debt, with the remaining capital expenditure requirement to be equity financed. Based on ongoing discussions with prospective customers, we anticipate that the average contract term for our AI and ML-focused enterprise and GPU compute customers will be 30 months to 7 years. If a data center project is able to achieve our estimates of approximately $1 million of real estate acquisition costs per gross MW, approximately $8 million of development cost per gross MW, approximately $1.6 million in revenue per gross MW, an EBITDA margin of approximately 75%, and a disposition cap rate of approximately 7.0% on a five-year holding period, we estimate such data center project will yield an unlevered pre-tax return of approximately 30%.

***WhiteFiber Cloud Services***

We provide specialized cloud services to support generative AI workstreams, especially training and inference, emphasizing cost-effective utility and tailor-made solutions for each client. We are an authorized NVIDIA Preferred Partner through the NVIDIA Partner Network ("NPN"), an authorized partner with Super Micro Computer Inc.®, an authorized Communications Service Provider ("CSP") with Dell (through Dell's exclusive distributor in Iceland, Advania), an official partnership with Hewlett Packard Enterprise, and a commercial relationship with Quanta Computer, Inc. ("QCT"). Based on management's knowledge of the industry, we are proud to be among the first service providers to offer H200, B200, and GB200 servers. We provide a high-standard service level with an Uptime Percentage\* ≥ 99.5%.

The economics of our cloud services business have historically driven attractive returns. If our cloud service business is able to achieve our estimates of costs of approximately $42,000 for a B200 GPU that generates approximately $20,000 of revenue in year one at an EBITDA margin between 75% and 80%, we believe that we can generate an unlevered pre-tax IRR of approximately 30%.

We are actively engaged in research and development efforts to enhance our cloud services capabilities for our customers. For example, we developed WhiteFiber Cloud AI, which is intended to link GPU clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius of approximately 80 kilometers. This will provide significant flexibility as scaling is required to accelerate development of AI applications. In addition, we are working on advanced interconnect technologies like InfiniBand ("IB") or RDMA over Converged Ethernet ("RoCE"). When combined with cross-data center links, these ensure that training jobs can be distributed without bottlenecks or high latency. We expect that such enhancements will be implemented across our customer base in the fourth quarter of 2025. By emphasizing scale, performance, and reliability, we believe that we will be positioned to maximize customer retention while pricing our services at a premium to those offered by our competitors.

We expect to leverage a global network of data centers for hosting capacity for our GPU business, in many instances, by negotiating with third-party providers to seamlessly integrate our cloud services at data centers across key regions in Europe, North America and Asia. Our initial data center partnership through which we lease capacity is at Blönduós Campus, Iceland, offering a world-class operations team with certified technicians and reliable engineers. The facility has 45kW rack density and 6 MW (gross) total capacity. We have executed contracts for 5MW (gross) at the data center. The center's energy source is 100% renewable energy, mainly from Blanda Hydro PowerStation, the winner of an IHA Blue Planet Award in 2017. On October 23, 2023, Bit Digital announced that it had commenced AI operations by signing a binding term sheet with a customer (the "Initial Customer") to support the customer's GPU workloads. In January 2025, we executed a new agreement to supply the Initial Customer 464 B200 GPUs for an 18 month term beginning on June 30, 2025, worth approximately $15 million of targeted annualized revenue assuming the Initial Customer utilizes the GPUs at full capacity for the duration of the contract. The Initial Customer elected to defer the commencement date until August 20, 2025, which is the latest date under the agreement. As of June 30, 2025, we have eight contracted customers.

In August 2024, we executed a binding term sheet with Boosteroid Inc. ("Boosteroid"), a global cloud gaming provider, pursuant to which we finalized initial orders of 489 GPUs, projected to generate approximately $7.9 million in revenue in the aggregate through November 2029, assuming Boosteroid utilizes the GPUs at full capacity for the duration of the contract. The GPUs were delivered to respective data centers across the U.S. and Europe and began earning revenue in November 2024. On October 9, 2024, we executed a Master Services and Lease Agreement (the "MSA") with Boosteroid, pursuant to which Boosteroid may, from time to time, lease certain equipment, including GPUs, from the Company upon delivery of a purchase order. The MSA provides the general terms and conditions for such equipment leases. Pursuant to the MSA, we are granted a right of first refusal with respect to the next 5,000 servers that Boosteroid leases during the term of the MSA. The MSA provides Boosteroid with the option to expand in increments of 100 servers up to 50,000 servers, representing a revenue opportunity of approximately $700 million over the five-year term assuming Boosteroid utilizes the GPUs and services at full capacity for the duration of the contract. Expansion depends upon the internal development roadmap of Boosteroid. Boosteroid has full discretion to decide when and the quantity to pursue separate source orders (for GPU servers) under the MSA.

**Industry Overview** 

We compete in the large and rapidly growing data center and cloud services markets. The data center market refers to the industry dedicated to designing, building, and managing data centers, essential for storing, processing, and managing vast amounts of digital information, including for AI and ML applications. These centers house servers, networking equipment, power and cooling and storage systems, ensuring seamless and secure data operation.

The cloud services market represents the transmission of computer services, including storage, analytics, databases, networking, and intelligence, via the internet (referred to as "the cloud"). Our cloud services business is a NeoCloud provider, with differentiated services supporting AI workloads and specializing in deploying optimized infrastructures that include not just GPU fleets but also network accelerators, high-speed storage, software solutions, advanced orchestration tools, high-performance interconnects, edge computing capabilities, innovative cooling solutions, security and compliance features, 24/7 managed services, and hybrid cloud integrations. This infrastructure is essential for managing the massive data and computing demands of AI and ML training and inference tasks.

It is standard for GPU hardware clusters, used in the rendering of cloud services, to be remotely housed in data centers, making these two segments highly related and synergistic. Specially designed data centers host the hardware needed to provide HPC cloud services, and these are commonly referred to as HPC data centers. According to experts at Schneider Electric, the industry is shifting away from traditional data centers that typically hosted 10kW racks to newer 100kW racks that support HPC needs. We only design and develop HPC data centers, giving us a competitive advantage over operators of traditional data center capacity.

*Data Centers*

According to McKinsey & Company, power demand for data centers in the U.S. – driven by the need for digital and AI capabilities – is expected to reach 298 gigawatts by 2030, up from 60 gigawatts in 2024. McKinsey estimates that data centers will amount to 11.7% of total U.S. power demand in 2030. Based on our knowledge of the industry, we believe we are leaders in the markets that are critical for these capabilities, and, as a result, we believe we are well positioned to benefit from the growth of this sector.

According to Prescient and Strategic Intelligence, Data-Center Market Size and Analysis, Trends, Drivers, Competitive Landscape and Forecast (2024-2030), the global data center market was valued at $342 billion in 2023 and is anticipated to reach $622.4 billion by 2030, expanding at a CAGR of 10.5% during 2024-2030. As of 2023, the data center services segment, which provides a range of offerings including consulting, maintenance, and management to optimize the performance and reliability of data center infrastructure, represented about 34.2% of the industry. The solutions segment, which refers to the technological offerings that fulfill key functions within data center infrastructure, comprised about 65.8% of the industry. The solutions segment represents both hardware and software elements, encompassing servers, storage systems, advanced power systems, infrastructure networking equipment, and management software.

The data center market is propelled by growing demands for cloud computing services, big data analytics, and digital transformation. According to McKinsey & Company, by 2030, 70% of data centers expected to be developed will be for advanced AI, and 92% of companies plan to increase AI investments across the board. Key contributors to this dynamic landscape are technology firms, real estate developers, and service providers. Together, they play a vital role in the ongoing evolution of data center infrastructure, adapting to meet the expanding requirements of the digital era and ensuring the seamless operation of critical digital services across various industries. The increasing global demand for cloud computing, where we compete as a cloud services provider, is a major driver of data centers, underlining the inherent synergies between our businesses.

*WhiteFiber Cloud Services*

The global could AI infrastructure market is forecasted to grow from $60.5 billion in 2024 to $363.4 billion in 2030, a compound annual growth rate of approximately 35%, according to research published by Mordor Intelligence. The major factors driving the cloud services market growth are increasing digital transformation across businesses, growing internet and mobile device adoption across the globe, and, most notably, increased usage of large data sets. Moreover, cloud services are favored by customers due to low capital investment, resource scalability, and a high degree of accessibility. The rise of the system of connected devices, edge computing, 5G, and real-time analytics driven by AI and ML is anticipated to increase the market value of cloud technology across different businesses.

**Our Competitive Strengths**

***Robust customer acquisition capabilities within large and growing total addressable markets.*** As described above, both the data centers and cloud services sectors are currently undergoing a well-documented surge in demand, driven in part by the proliferation of AI models, agents and applications, and constraints on available supply. This growth is demonstrated by our ability to pre-sign end users prior to committing capital for expansions, both for new data center sites and for GPU procurement. Our HPC data center business enjoys significant embedded demand from existing customers and, as of June 2025, is in receipt of requests in excess of our short-term MW availability. We expect that this demand will also enable us to extend the average duration of our customer contracts. Finally, across our business units, we have invested in building robust sales, marketing, and customer acquisition teams, and in developing our go-to-market strategy, including initiatives aimed at acquiring new customers through strategic partners, outbound outreach, industry events, and third-party referral agents.

***Confidential pipeline of WhiteFiber data center opportunities with scalable, differentiated development capabilities****.* Based on management's prior experience, we believe our WhiteFiber data center team are experts at sourcing attractive new development opportunities. Our management has previously identified and executed on high-value data center sites, often in competitive or constrained power markets, such as Montreal, Quebec and Madison, North Carolina. Their internal capabilities span site selection, power procurement, permitting and scalable design. These are complimented by deep industry relationships that provide early access to off-market or strategic opportunities. Thanks to this capability as of June 30, 2025, our pipeline of potential data centers represents approximately 1,300 MW (gross) projects under management's review, including approximately 800 MW (gross) under non-binding and exclusive letters of intent with potential customers.

Our opportunity pipeline contains multiple sites for retrofit or brownfields. However, certain opportunities could from time to time necessitate a greenfield project that entails a ground-up development. Our development team members are specialists at retrofits, having successfully delivered 75 MW (gross) of retrofit projects over their careers. They have identified and executed on high-value data center sites, often in competitive constrained power markets. Their internal capabilities span site selection, power procurement, permitting, and scalable design. These are complemented by deep industry relationships that provide early access to off-market or strategic opportunities. The Company's current pipeline reflects this advantage, with multiple active and vetted development prospects. This approach provides a significant time-to-market advantage over traditional greenfield projects, since it eliminates much of the time and uncertainty associated with securing new power agreements and vertical construction permits. As a result, the average build time for retrofits, based on senior management's experience at Enovum even prior to its acquisition by the Company, is approximately six months from commencement of construction. We believe, based on our knowledge of the industry, this is approximately one-third to one-half of the industry average development timeline for greenfield projects.

As a result of these and other strategies, we believe we achieve significant cost advantages. Management estimates that our average build-out cost per MW (gross) is approximately $7 to $9 million, as compared to an industry average of approximately $12 million per MW (gross).

***Modern, strategically located data center portfolio.*** Our MTL-1 site, as well as our sites under development, are intended to be modern, high quality facilities built on Tier-3 infrastructure, with industry leading certifications, including SOC 2 Type 2, reflecting the highest standard of security controls. Our MTL-2, MTL-3 and NC-1 projects are intended to feature direct-to-chip liquid cooling. We believe this will position us to capitalize on surging demand for AI and other HPC workloads. Our MTL-1, MTL-2, and MTL-3 sites are located in Montreal, a key market for data centers attributable to its cold climate, affordable green power, and robust fiber network infrastructure. These factors, collectively, contribute to customer demand for Montreal facilities. Our NC-1 site, is located in the key data center corridor running along the U.S. East coast, where eight hyperscaler data centers are located within a 100 mile radius of our facility.

***Complementary strategic integration of data center infrastructure and cloud services businesses.*** Our business model includes integration of HPC data center infrastructure and cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Whether by optimizing cooling strategies for dense GPU clusters or ensuring multi-ISP connectivity for uninterrupted data flows, we believe our combined HPC data center and cloud services businesses set a higher benchmark for speed, reliability, and overall client satisfaction in the AI and HPC space. Through vertical integration, we are able to provide power to support our cloud service needs and also empowered to respond with agility to both emerging hardware trends and the real-time usage metrics gleaned from our cloud services. Instead of retrofitting third-party data center infrastructure or juggling multiple outside vendors, we can proactively tailor the entire data center stack to deliver high-performance, future-proof solutions for customers. By integrating cloud services with our data center infrastructure, we believe we are well-positioned to capitalize on the growing demand for AI and HPC workloads, capturing margin at both tiers of a vertically integrated value chain and reducing supplier dependency.

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***Differentiated management team with deep experience in data center and cloud infrastructure development.*** Our management team comprises individuals drawing on diverse knowledge and skill sets acquired through extensive experience in data centers, real estate and REITs, and the technology sector. Our leadership also incorporates extensive strategic expertise in finance and capital markets. We augmented our management team with the acquisition of Enovum with 20 years plus of data center development experience and through other recent key hires, optimally positioning the team to continue driving our data center and cloud services growth.

**Our Growth Strategies**

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***Complete build-out and maximize revenue from current data center projects.*** Leveraging our development capabilities, we intend to complete our MTL-2 facility in the fourth quarter of 2025, our MTL-3 facility in the fourth quarter of 2025, and the first 24 gross MW (gross) of NC-1 in the first quarter of 2026. While NC-1 is expected to be completed in the first quarter of 2026, management expects it will start generating revenue in May of 2026. These time periods are based upon the commissioning of the construction and buildout of the facilities. Further, we expect there is potential to increase revenue from certain of our existing sites by securing additional allocations of utility power, subject to our receipt of funding and required permits through ongoing engagement with the utility and relevant authorities. We aim to demonstrate the economic value and readiness of our sites to support incremental load growth, while also monitoring infrastructure upgrades and interconnection queue developments that may enable expanded allocations over time. Finally, at certain new and existing sites, we intend to deploy natural gas fuel cell generation technology to increase available power and revenue potential. We expect to achieve this by partnering with third-party energy providers to deploy natural gas-powered fuel cell systems on or near our data center sites. These systems can be deployed modularly and connected behind the meter, allowing us to supplement utility power, support additional compute deployments, and increase site revenue without relying solely on the utility grid. We are currently evaluating proposals and permitting pathways to enable these installations where economically and operationally viable.

In our MTL-2 site, for example, we can potentially increase the existing utility power by over a multiple of four, allowing us to maximize revenue per square foot, if we are able to obtain expansion of our power capacity from Hydro-Quebec, of which there is no assurance.

***Rapidly and strategically scale our proprietary data center expansion pipeline.*** To complement our existing HPC data center portfolio, we intend to rapidly develop additional sites from our expansion pipeline. In doing so, we will target selected locations to secure a strategic presence across North America. We are committed to offering extensive geographical coverage to seamlessly support our clients' operations while minimizing latency. By developing a robust HPC data center platform across North America, we expect to enhance redundancy, mitigate geo-location risks, and ensure our services are available where clients need them most. We expect our strategically placed WhiteFiber data centers in smaller urban areas, which we term edge data centers, will deliver carrier hotel-level connectivity, while our larger deployments will power AI-driven computing super-clusters, driving innovation and efficiency.

***Focus on next-generation data center designs and infrastructure.*** Our data center designs feature high density racks and direct-to-chip cooling architecture to enable our customers' AI, ML and other HPC workloads. We will continuously analyze emerging trends in an effort to develop future-proof designs that accommodate increasing densities, while addressing our clients' current needs with practical solutions. Leveraging the latest advances in direct-to-chip cooling, we expect to support both rapidly growing standard clusters and customized high-performance deployments, ensuring efficiency, scalability, and innovation to meet current and future demand.

***Leverage our unique technology strategy and strategic relationships to grow revenue from existing and new customers.*** Our technology team has developed in-house software to streamline the delivery of cloud services for a wider variety of customers, including those with the highest performance, reliability, and security requirements. This will allow us to differentiate our cloud services offering from those of other cloud providers that only offer basic services, such as limited storage, networking and computing performance tiers, and limited delivery options (e.g., bare-metal, virtualized, or containerized exclusively).

We also intend to leverage existing strategic relationships to secure new customers and increase revenue from existing customers. We are currently targeting small and medium-sized customers with high returns. Such relationships include OEM and ODM suppliers and data center planning partners. For example, we have a co-marketing agreement in place with NVIDIA as a function of being a NVIDIA Preferred Partner through the NPN and with Hewlett Packard Enterprise, as a function of being accepted into their partnership program. With Super Micro Computer, Inc., we have early access to next generation computing platforms for testing and evaluation. We are working with vendors, such as Canopy Wave, Semper Victus IT, and Trainy.AI, to rapidly plan and deploy innovative HPC cluster designs. Our partnerships enable lead and customer sharing to rapidly identify customers who will uniquely benefit from our offerings.

***Prudently source and allocate growth capital.*** We have limited leverage, as we have primarily financed our growth to date with equity. This has provided us with the opportunity to incur prudent leverage to fund our growth and enhance returns to our shareholders. This was confirmed with our entry into a CAD $60 million (approximately USD $43.8 million) credit facility in June 2025 with RBC. In our data center business, we believe we are in a position to utilize well-priced first mortgage and corporate facilities from both Canadian and U.S. commercial banks. Within our cloud service business, we anticipate utilizing equipment leasing facilities to limit our equity capital commitments. While we will benefit from access to public equity, we will also continue to explore private equity financings in the form of joint ventures with institutional partners. We believe that our access to these varied alternatives will provide us the ability to optimize our cost of capital. See *"Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources."*

**Strategic Relationships**

*Financing*

Based on management's knowledge of the industry we believe that there is market demand from institutional private equity investors for exposure to the types of projects in our data center pipeline and our capability to develop them. We believe that we are well positioned to capitalize on this demand by forming one or more equity joint ventures. Doing so would provide us access to a differentiated and non-dilutive source of private equity capital to fund our projects, and deliver a durable stream of cash flows in the form of management fee income for our services.

In June 2025 we entered into a credit facility for up to a CAD $60 million (approximately USD $43.8 million), debt financing with RBC primarily to support the refinancing of our MTL-2 data center. The funds are available for borrowing and will be utilized together with the proceeds of this offering to support the refinancing of our MTL-2 data center. See "*Use of Proceeds*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources*".

*Technology*

We have established formal relationships with leading technology providers, including NVIDIA, Super Micro, Dell, Hewlett Packard Enterprise, Super Micro and Quanta Computing. These partnerships enable us to access and deploy the most advanced computing hardware, ensuring that our clients benefit from cutting-edge technology and optimized performance. Our collaboration with these industry leaders allows us to stay at the forefront of high-performance computing and AI infrastructure.

Our data center business leverages a diverse mix of vendors across multiple geographies to source equipment cost-effectively while mitigating supply chain disruptions. By maintaining a broad supplier network, we reduce reliance on any single vendor and enhance our ability to procure best-in-class solutions at competitive prices. This approach strengthens our operational resilience and supports our ability to scale efficiently.

**Reasons for the Reorganization and this Offering**

In addition to providing highly desirable data center hosting capacity to our customers, our business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Our integrated approach aligns specialized data center operations with GPU-focused cloud services, addressing the unique requirements of AI and ML workloads. These workloads demand greater power density, advanced cooling solutions, and robust bandwidth to handle large-scale data transfers. By operating our data centers, we are able to provide the power to support our cloud services and we believe we can better meet the needs of AI and ML workloads and reduce the complexity associated with procuring power and connectivity from external vendors. We can also design our facilities to accommodate the higher heat loads generated by modern GPUs, potentially shortening deployment timelines for customers who require rapid expansion of their computing infrastructure. From a financial standpoint, our vertically integrated solution allows us to capture additional margin for our cloud services business, avoiding expenses that would otherwise be due to third-party providers.

***Capital allocation optimization.*** The Reorganization will allow for the breakout of our financial results, which will facilitate evaluation of our HPC Business. In turn, this will enable investors to separately value WhiteFiber and Bit Digital based on their distinct operating and investment identities. We believe that this may increase the availability and reduce the cost of capital for us.

***Risk Reduction.*** Separating our HPC Business from the digital assets business of Bit Digital is a crucial strategic move to insulate the HPC Business from the inherent risks associated with the volatile digital assets industry. The cryptocurrency industry's inherent risks include sudden market downturns, regulatory changes, and fluctuating asset values, all of which can have a substantial impact on overall financial health.

***Exigency.*** The board of directors of Bit Digital deems the separation of the HPC Business from the digital assets business urgent in order to unlock what Bit Digital believes may be significant financial and operational value for shareholders. We believe that the HPC business is well-positioned for rapid growth and requires capital for expansion.

***Alignment of incentives with performance objectives.*** This offering will facilitate equity-based and other incentive compensation arrangements for employees more directly tied to the performance of each business, and enhance employee hiring and retention by, among other things, improving the alignment of management and employee incentives with performance and growth objectives.

**Our Corporate Information**

Our executive office is located at 31 Hudson Yards, Floor 11, Suite 30, New York, New York 10001, and our phone number is (212) 463-5121. Our principal website address is www.whitefiber.com. **The information contained on, or accessible through, our website is not a part of, and is not incorporated into, this prospectus. We have included our website address only as an inactive textual reference and do not intend it to be an active link to our website. You should not rely on our website or any such information in making your decision whether to purchase our Ordinary Shares.** 

**Channels for Disclosure of Information**

Following the closing of this offering, we intend to announce material information to the public through filings with the SEC, the investor relations page on our website, press releases, public conference calls and public webcasts. The information disclosed through the foregoing channels are intended to be sources of material information about the Company. As such, we encourage investors, the media and others to follow the channels listed above and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.

**Implications of Being a Smaller Reporting Company**

We are a "smaller reporting company" as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies so long as the market value of our voting and non-voting Ordinary Shares held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our Ordinary Shares held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter.

**Implications of Being an Emerging Growth Company**

We had less than $1.235 billion in revenue during our last fiscal year. As a result, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), and may take advantage of reduced public reporting requirements. These provisions include, but are not limited to:

● being permitted to present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations in our filings with the SEC;

● not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2022 and Section 14(a) and (b) of the Securities Exchange Act of 1934 in the assessment of our internal control over financial reporting;

● reduced disclosure obligations regarding executive compensation in periodic reports, proxy statements and registration statements; and

● exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We may take advantage of these provisions until the last day of our fiscal year following the fifth anniversary of the date of the first sale of our Ordinary Shares pursuant to this offering. However, if certain events occur before the end of such five-year period, including if we become a "large accelerated filer," if our annual gross revenues exceed $1.235 billion or if we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company before the end of such five-year period.

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the "Securities Act"), for complying with new or revised accounting standards. We have elected to take advantage of this extended transition period.

**Implications of Being a Controlled Company**

Bit Digital, our parent, will own approximately 80% of the voting power of our Ordinary Shares following this offering and we will be a "controlled company" as defined under the Nasdaq Listing Rules. For so long as we are a "controlled company", we are permitted to elect to rely, and may rely, on certain exemptions from corporate governance rules, including:

● an exemption from the rule that a majority of our board of directors must be independent directors;

● an exemption from the rule that requires a compensation committee comprised entirely of independent directors with a written charter addressing the committee's purpose and responsibilities; and

● an exemption from the rule that our director nominees must be selected or recommended solely by independent directors or by a nominations committee that consists entirely of independent directors with a written charter or board resolution addressing the nominations process.

Although we do not intend to rely on the "controlled company" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future. If we elect to rely on any such exemptions, you will not have the same protections afforded to shareholders of companies that are subject to these corporate governance requirements. Our status as a "controlled company" could cause our Ordinary Shares to look less attractive to certain investors or otherwise harm the trading price of the Ordinary Shares. Please see "*Risk Factors — Risks Related to WhiteFiber Ordinary Shares— We will be a "controlled company" as defined under the Nasdaq Listing Rules. Although we do not intend to rely on the "controlled company" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future and you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements*."

**Summary of Risk Factors**

Investing in our Ordinary Shares involves a high degree of risk and uncertainties. The following list contains a summary of the material risks, but not all, of these risks and uncertainties. You should carefully consider the risks and uncertainties described in the section of this prospectus entitled *"Risk Factors*", together with all of the other information in this prospectus, before making a decision to invest in our Ordinary Shares. If risks or uncertainties occur, our business, operating results, financial condition, and future prospects could be adversely affected, potentially in a material way which could result in a partial or complete loss of your investment. Such risks include, but are not limited to the following:

● our new services and changes to existing services could fail to attract or retain users or generate revenue and profits;

● failure to effectively manage our growth;

● we evaluate opportunities to grow our business through strategic acquisitions, investments, and joint ventures that involve numerous risks and uncertainties;

 ****

● the loss of any member of our management team, our inability to execute an effective succession plan, or our inability to attract and retain qualified personnel;

● cyberattacks and security breaches of cloud services, or those impacting our third parties;

● supply chain disruptions;

● evolving business model subject to various uncertainties;

● we may be negatively impacted by future litigation, claims or investigations, or import tariffs and/or other government mandates;

● general risk such as: Acquisition, disposal, and impairments of assets or facilities; the cyclical nature of large infrastructure projects; labor negotiations or disputes; inability of contract counterparties to meet their contractual obligations; or inability to effectively integrate any acquired companies;

● we do not have patents protecting our intellectual property and we may not be able to prevent the unauthorized use of our intellectual property;

● we face intense competition in the cloud services industry and may not be able to compete with other companies. If we do not continue to innovate and provide cloud services to our customers and partners, we may not remain competitive;

● we may be unable to access sufficient additional capital equity and debt financing needed to grow our business;

● we face intense competition in the data centers operations and may not be able to compete with other companies;

● we depend upon third-party suppliers for power, and we are vulnerable to service failures and price increases by such suppliers and to volatility in the supply and price of power in the open market;

● a curtailment or disruption in energy supply in Iceland, Canada or the U.S. due to regulations and policies implemented by their respective governments, which prioritize energy supply, may cause a substantial disruption or discontinuance of WhiteFiber's data centers' operations;

● any delays or unexpected costs in the development of any new properties acquired for development;

● WhiteFiber's cloud services and/or HPC data centers could be adversely impacted by climate change;

● 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;

● WhiteFiber has no history of operating as an independent, public company;

● after this offering, certain members of management, directors and shareholders will hold key positions and hold shares in both WhiteFiber and Bit Digital, and as a result may face actual or potential conflicts of interest;

● our cloud services are subject to complex and evolving U.S. and foreign laws and regulations regarding AI, machine learning, and automated decision making;

● failure to comply with governmental regulations and other legal obligations related to data privacy, data protection and information security;

● our business may be adversely affected by future changes in the European Union's regulations related to AI, which could be reflected in Icelandic and European Union countries' domestic laws and regulations;

● impact of advancements in AI on demand for AI and HPC data centers may reduce the need for HPCs and AI-specific data center infrastructure;

● future issuances of preference shares may concentrate voting control with holders of our preference shares, should we issue any, and the holders of such preference shares may not be aligned with the interests of our other shareholders;

● Bit Digital will have significant voting power to control significant corporate actions and its interests may be different from and may conflict with our interests or the interests of our other shareholders;

● you may face difficulties in protecting your interests as a shareholder, as Cayman Islands law provides different protection when compared to the laws of the United States and it may be difficult for a shareholder of ours to effect service of process or to enforce judgements obtained in the U.S. courts;

● you may experience difficulties in effecting service of legal process and enforcing judgments against us and our management, and the ability of U.S. authorities to bring actions abroad;

● if we are classified as a passive foreign investment company, United States taxpayers who own our Ordinary Shares may have adverse United States federal income tax consequences;

● we do not expect to pay or declare dividends on our Ordinary Shares;

● we will not receive potential tax or income benefits associated with REIT investments; and

● we are a smaller reporting company and an emerging growth company within the meaning of the Securities Act and may take advantage of certain reduced reporting requirements.

**The Offering**

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| | |
|:---|:---|
| **Securities Offered by Us:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary Shares, $0.01 par value each (or Ordinary Shares if the underwriters exercise their over-allotment option in full). |
| **Over-allotment Option:** | We have granted the underwriters a 30-day option to purchase up to an additional Ordinary Shares. |
| **Ordinary Shares to be Issued and Outstanding after this Offering:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary Shares (or Ordinary Shares if the underwriters exercise their over-allotment option in full). |
| **Use of Proceeds:** | We estimate that the net proceeds to us from this offering will be approximately $ million, or approximately $ million if the underwriters exercise their over-allotment option in full. We expect to use the proceeds to partially fund the lease or purchase of additional property on which to build additional WhiteFiber data centers; to construct those facilities; to enter into additional energy service agreements for each additional site; purchase GPUs, servers and other AI equipment; for potential acquisitions, partnerships and joint ventures; research and development, and to fund our working capital and general corporate purposes.<br>We will require additional debt financing in order to fully accomplish the specified uses of the proceeds of this offering. We also may elect to raise additional capital opportunistically.<br>See "*Use of Proceeds*". |
| **Lock-up:** | We, our directors, director nominees and executive officers and Bit Digital have agreed with the underwriters not to offer for sale, issue, sell, contract to sell, pledge or otherwise dispose of any of our Ordinary Shares or securities convertible into Ordinary Shares as described in further detail in the prospectus, for a period of 180 days after the date of this prospectus. See "*Underwriting*". |
| **Dividend Policy:** | We intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our Ordinary Shares in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions, and other factors that our board of directors may deem relevant. |
| **Risk Factors:** | Investing in our securities is highly speculative and involves a significant degree of risk. See "*Risk Factors*" beginning on page 17 and other information included in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our securities. |
| **Listing:** | We have applied to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "WYFI." |

---

Prior to the consummation of the offering all of our issued and outstanding Ordinary Shares were held by Bit Digital. In connection with the Contribution, we will issue Ordinary Shares to Bit Digital (or up to Ordinary Shares to Bit Digital, if the underwriters' over-allotment option is exercised in full, which may occur at any point during the 30 days after the consummation of this offering), such that Bit Digital will own approximately 80% of our issued and outstanding Ordinary Shares upon the consummation of this offering.

Unless otherwise indicated or the context otherwise requires, the information presented in this prospectus:

● assumes no exercise by the underwriters of their option to purchase additional Ordinary Shares to cover over-allotment, if any;

● gives effect to our A&R M&A, which will be adopted immediately prior to the consummation of this offering;

● assumes an initial public offering price of $ per ordinary share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus;

● assumes the issuance of Ordinary Shares to be issued to Bit Digital in the Bit Digital Issuance; and

● does not include the 12 million Ordinary Shares reserved for issuance under our 2025 Omnibus Equity Plan, including the issuance of 40,000 shares to Ms. Ichi Shih, Chair of the Company's Audit Committee, upon the commencement of trading of our Ordinary Shares on the Nasdaq Capital Market.

**SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL AND OPERATING DATA**

The following table presents the selected historical combined financial data for WhiteFiber and its subsidiaries as of and for the periods and dates indicated. It also includes selected unaudited pro forma combined financial data as of and for periods and dates indicated. The historical combined financial statements reflect the results of operations and assets and liabilities of WhiteFiber AI, incorporated on October 19, 2023. The selected pro forma combined data is presented assuming the completion of the acquisition of Enovum and the Reorganization. WhiteFiber had no significant assets, liabilities or operations prior to the acquisition of Enovum on October 11, 2024.

We will enter into a Contribution Agreement with Bit Digital, pursuant to which Bit Digital will transfer its HPC business by contributing 100% of the capital shares of its subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc. and WhiteFiber Iceland, ehf to the Company, upon the effective date of the registration statement of which this prospectus is a part and prior to the consummation of this offering (collectively, the "Reorganization").

The selected combined financial data for the three months ended March 31, 2025 and 2024, and as of March 31, 2025 were derived from our unaudited combined financial statements. The selected combined financial data for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, and as of December 31, 2024 and 2023, were derived from our audited combined financial statements. The selected unaudited pro forma combined income data for the three months ended March 31, 2025 and for the year ended December 31, 2024, have been derived from WhiteFiber's unaudited pro forma combined financial statements included elsewhere in this prospectus.

The selected historical combined financial data set forth below should be read in conjunction with "*Management's Discussion and Analysis of Financial Condition and Results of Operations*", "*Unaudited Pro Forma Combined Financial Statements*," and the audited combined financial statements and the notes thereto and other information included in this prospectus. The selected historical combined financial data reflects WhiteFiber's results as historically operated as a part of Bit Digital, and these results may not be indicative of its future performance as a stand-alone company following the separation and distribution.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pro Forma** | **Pro Forma** | **Historical** | **Historical** | **Historical** | **Historical** |
|  | **For the<br> Three Months<br> Ended<br> March 31, <br> 2025** | **For the <br> Year Ended<br> December 31,<br> 2024** | **For the<br> Three Months<br> Ended<br> March 31, <br> 2025** | **For the<br> Three Months<br> Ended<br> March 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Period From<br> October 19, <br> 2023 to<br> December 31,<br> 2023** |
| **Statement of Operations Data Year:** | | | | | | |
| Revenues | $16767516 | $51176381 | $16767516 | $8169332 | $47639237 | $- |
| Gross profit | 10116839 | 29755380 | 10116839 | 5012005 | 27423406 |  |
| Gross margin | 60% | 58% | 60% | 61% | 58% |  |
| Net income (loss) | 1524221 | (1284311) | 1427836 | 826510 | 1369842 | (1225949) |
| Net income margin | 9% | (3)% | 9% | 10% | 3% | N/A |
| **Other Data:** |  |  |  |  |  |  |
| EBITDA | 5988605 | 16753348 | 5852083 | 3898378 | 18755425 | (1224122) |
| EBITDA margin | 36% | 33% | 35% | 48% | 39% | N/A |
| Adjusted EBITDA | 6126618 | 19924045 | 5990096 | 3989536 | 21926122 | (371048) |
| Adjusted EBITDA margin | 37% | 39% | 36% | 49% | 46% | N/A |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Po Forma<br> as of** | **Historical as of** | **Historical as of** | **Historical as of** |
|  | **March 31,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **Balance Sheet Data:** |  |  |  |  |
| Cash and Equivalents | $25574593 | $9083232.00 | $11671984.00 | $652566.00 |
| Working capital | 23487145 | 6038071.00 | 744298.00 | (7492496.00) |
| Total assets | 314364950 | 279777398.00 | 229132863.00 | 78927726.00 |
| Total liabilities | 96818954 | 59152865.00 | 59406108.00 | 29277487.00 |
| Total equity | $217545996 | 220624533.00 | 169726755.00 | 49650239.00 |

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\* The unaudited pro forma condensed balance sheet reflects related adjustments for the execution of a Credit Facility with RBC on June 18, 2025, as if such financing arrangement had occurred as of March 31, 2025.

**Non-GAAP Financial Measures**

● The selected historical combined financial data includes financial information prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"), as well as EBITDA and Adjusted EBITDA. WhiteFiber defines EBITDA as net income before interest expense, taxes and depreciation, depletion and amortization. WhiteFiber defines Adjusted EBITDA as EBITDA adjusted to exclude stock-based compensation.

● EBITDA and Adjusted EBITDA are considered non-GAAP financial measures and are comparable to the corresponding GAAP measures of Net income. WhiteFiber believes these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to its peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. Management believes Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of the Company's operating performance by excluding stock-based compensation as they are considered non-cash and not part of the Company's core operations. Rating agencies and investors will also use EBITDA and Adjusted EBITDA to calculate WhiteFiber's leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. WhiteFiber's management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating its operating results internally and calculating compensation packages and leverage as a multiple of EBITDA and Adjusted EBITDA to determine the appropriate method of funding operations of the Company. EBITDA is calculated by adding back income taxes, interest expense and depreciation and amortization expense to net income. Adjusted EBITDA is calculated by adding back stock-based compensation to EBITDA. These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income and are intended to be helpful supplemental financial measures for investors' understanding of WhiteFiber's operating performance. WhiteFiber's non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' EBITDA and Adjusted EBITDA measures having the same or similar names.

The following information reconciles net income to EBITDA and EBITDA to Adjusted EBITDA.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pro Forma** | **Pro Forma** | **Historical** | **Historical** | **Historical** | **Historical** |
|  | **For the<br> Three Months<br> Ended<br> March 31, <br> 2025** | **For the<br> Year Ended<br> December 31 <br> 2024** | **For the<br> Three Months Ended <br> March 31, 2025** | **For the <br> Three Months<br> Ended <br> March 31,<br> 2024** | **For the<br> Year Ended<br> December 31, <br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31, <br> 2023** |
| **Reconciliation of non-GAAP income from operations:** | | | | | | |
| **Net income** | $**1524221** | $**(1284311)** | $**1427836** | $**826510** | $**1369842** | $**(1225949)** |
| Depreciation and amortization expenses | 3829644 | 18055823 | 3829644 | 2881527 | 16511406 |  |
| Income tax expense | 634740 | (18164) | 594603 | 190341 | 874177 | 1827 |
| **EBITDA** | **5988605** | **16753348** | **5852083** | **3898378** | **18755425** | **(1224122)** |
| **Adjustments:** |  |  |  |  |  |  |
| Share-based compensation expenses | 138013 | 3170697 | 138013 | 91158 | 3170697 | 853074 |
| **Adjusted EBITDA** | $**6126618** | $**19924045** | $**5990096** | $**3989536** | $**21926122** | $**(371048)** |

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**RISK FACTORS**

*Investing in our Ordinary Shares involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this prospectus, before making a decision to invest in our Ordinary Shares. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of or that we currently believe are immaterial may also become important factors that adversely affect our business. If any of the following risks or uncertainties occur, our business, operating results, financial condition, and future prospects could be materially and adversely affected, potentially in a material way which could result in a partial or complete loss of your investment. Some statements in this prospectus, including such statements in the following risk factors, constitute forward-looking statements. See the section entitled* "*Cautionary Statement Regarding Forward-Looking Statements*."

**General Risks Related to WhiteFiber's Business**

***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.***

WhiteFiber's ability to retain and increase 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 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.

***WhiteFiber operates in a capital-intensive industry and is subject to capital market and interest rate risks.***

WhiteFiber's operations require significant capital investment to purchase and maintain the property and equipment required to provide specialized infrastructures to support generative AI work streams. In addition, WhiteFiber's operations include a significant level of fixed and semi-fixed costs. Consequently, WhiteFiber will rely on capital markets, as sources of liquidity for capital requirements for growth. If WhiteFiber is unable to access capital at competitive rates, the ability to implement business plans, make capital expenditures or pursue acquisitions it would otherwise rely on for future, growth may be adversely affected. For example, without obtaining additional debt financing, WhiteFiber will not have sufficient funds to retrofit NC-1 into a HPC data center or achieve its estimated 76 MW (gross) of total HPC data center capacity by the end of the fourth quarter of 2026 and other growth strategies. Market disruptions may increase the cost of borrowing or adversely affect WhiteFiber's ability to access one or more financial markets. Such market disruptions could include:

● a significant economic downturn;

● the financial distress of unrelated industry leaders in the same line of business;

● deterioration in capital market conditions;

● turmoil in the financial services industry;

● volatility in GPU prices;

● terrorist attacks;

● war; or

● cyberattacks.

If we raise additional equity financing, our shareholders may experience significant dilution of their ownership interests, and the per share value of our WhiteFiber Ordinary Shares could decline. Furthermore, if we engage in debt financing, the holders of debt will have priority over the holders of our Ordinary Shares on order of payment preference. We may be required to accept terms that restrict or limit our ability to, among other things:

● Pay cash dividends to our shareholders, subject to certain limited exceptions;

● Redeem or repurchase our Ordinary Shares or other equity;

● Incur additional indebtedness;

● Permit liens on assets;

● Make certain investments (including through the acquisition of stock, shares, partnership or limited liability company interests, any loan, advance or capital contribution);

● Sell, lease, license, lend or otherwise convey an interest in a material portion of our assets; and

● Sell or otherwise issue Ordinary Shares or other share capital subject to certain limited exceptions.

These restrictions may limit our ability to obtain additional financing, withstand downturns in our business or take advantage of business opportunities.

***From time to time we evaluate and potentially consummate strategic investments, combinations, joint-ventures, acquisitions or alliances, which could require significant management attention, disrupt our business and adversely affect our financial results.***

We evaluate and consider strategic investments, combinations, joint-ventures, acquisitions or alliances in cloud services or WhiteFiber data centers or related businesses around the globe in order to grow our busines. These transactions could be material to our financial condition and results of operations if consummated. If we are able to identify an appropriate business opportunity, we may not be able to successfully consummate the transaction and, even if we do consummate such a transaction, we may be unable to obtain the benefits or avoid the difficulties and risks of such transaction.

Strategic investments or acquisitions will involve risks commonly encountered in business relationships, including:

● difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, products and services of the acquired business;

● inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits;

● difficulties in retaining, training, motivating and integrating key personnel;

● diversion of management's time and resources from our normal daily operations;

● difficulties in successfully incorporating licensed or acquired technology and rights into our businesses;

● difficulties in maintaining uniform standards, controls, procedures and policies within the combined organizations;

● difficulties in retaining relationships with customers, employees and suppliers of the acquired business;

● risks of entering markets, in parts of the United States, Canada and/or abroad, in which we have limited or no prior experience;

● failure to successfully further develop the acquired technology;

● liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities;

● potential disruptions to our ongoing businesses; and

● unexpected costs and unknown risks and liabilities associated with strategic investments or acquisitions.

We may not make any investments or acquisitions, or any future investments or acquisitions may not be successful, may not benefit our business strategy, may not generate sufficient revenues to offset the associated acquisition costs or may not otherwise result in the intended benefits. In addition, we cannot assure you that any future investment in or acquisition of new businesses or technology will achieve market acceptance or prove to be profitable.

Any future acquisitions also could result in the issuance of shares, incurrence of debt, contingent liabilities or future write-offs of intangible assets or goodwill, any of which could have a negative impact on our cash flows, financial condition and results of operations. Integration of an acquired company may also disrupt ongoing operations and require management resources that otherwise would be focused on developing and expanding our existing business. We may experience losses related to potential investments in other companies, which could harm our financial condition and results of operations. Further, we may not realize the anticipated benefits of any acquisition, strategic alliance or joint venture if such investments do not materialize.

To finance any acquisitions or joint ventures, we may choose to issue Ordinary Shares, preference shares or a combination of debt and equity as consideration, which could significantly dilute the ownership of our existing shareholders. Additional funds may not be available on terms that are favorable to us, or at all. If the price of our Ordinary Shares is low or volatile, we may not be able to acquire other companies or fund a joint venture project using shares as consideration.

If we are unable to obtain the anticipated benefits from these transactions, or if we encounter difficulties in integrating any acquired operations with our business, our financial condition and results of operations could be materially harmed.

***If we fail to effectively manage our growth, our business, financial condition and results of operations could be harmed.***

We are a development stage company with a small management team and are subject to the strains of ongoing development and growth, which will place significant demands on our management and our operational and financial infrastructure. Although we may not grow as we expect, if we fail to manage our growth effectively or to develop and expand our managerial, operational and financial resources and systems, our business and financial results would be materially harmed.

***Our customers frequently make advance payments based on anticipated future usage.***

In our cloud service business, customers often make advance payments to finance the equipment they intend to purchase from us. If we are unable to meet the contract requirements or deliver GPU clusters to their satisfaction for any reason, we may be obligated to refund these deposits.

In our colocation Data Center Hosting Business, customers typically pay a month in advance based on their projected demand. If we are unable to provide the services as expected for any reason, we would be required to issue a credit or refund the difference to the customer. Any such refunds or issuances of credit could have an adverse effect on our business, results of operations, and financial condition.

***Dependence on joint ventures and other local partners could adversely affect our profits.***

 ****

We intend to conduct some operations through joint ventures in which unaffiliated third parties may control or have significant influence on the operations of the joint venture. As with any joint venture arrangement, differences in views among the joint venture participants may result in the joint venture operating in a manner that is contrary to our preference, delayed decisions or in failures to agree on major issues. These factors could have a material adverse effect on the business and results of operations of our joint ventures and, in turn, our business and combined results of operations. In addition to joint ventures, we may rely on local third-party partners in foreign jurisdiction, as we do in Iceland, to provide various services in support of our cloud services and HPC data center businesses, including installation, service and technical support, as well as the provision of equipment and personnel. If a local partner is unwilling or unable to deliver its services for any reason including, but not limited to, a dispute with us, the deterioration of its financial condition or a loss of personnel, we may be unable to engage an alternative partner or subcontractors to perform the same services, or on terms substantially similar to those with our existing partners. The failure to do so may cause us to breach the terms of existing contracts, impede our ability to complete orders, and/or result in damage to our customer relationships in that jurisdiction, any of which may damage our reputation and have a material adverse effect on our business in the impacted jurisdiction.

 **

***If one of our customers were to obtain exclusive rights to open source technologies that we employ across our businesses, our ability to realize significant operating efficiencies could be jeopardized.***

 **

Our business model leverages our ability to share significant open source technological innovations across cloud services, our data centers and customers. If one of our customers were to obtain exclusive rights to what are now open source technologies we employ across our businesses, we could be limited in obtaining essential supplies at competitive costs and sharing research and development costs across our businesses. As a result, our ability to realize significant operating efficiencies by modifying our existing or new data centers utilizing these technologies and our ability to serve all our customers could be jeopardized, which could materially adversely affect our business, results of operations and future prospects.

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***The loss of any member of our management team, our inability to execute an effective succession plan, or our inability to attract and retain qualified personnel could adversely affect our business.***

Our success and future growth will depend to a significant degree on the skills and services of our management team, including Mr. Sam Tabar, our Chief Executive Officer, and Mr. Erke Huang, our Chief Financial Officer. Mr. Tabar and Mr. Huang will provide their services to us for up to 24 months on a transitional basis pursuant to the terms of the Transition Services Agreement. During such transition period, they will continue to hold the same position with Bit Digital. We have recently hired several key members of Senior Management including executive officers Billy Krassakopoulos, CEO of Enovum, who is President of WhiteFiber, and Thomas Sanfilippo, Chief Technology Officer, in order to grow WhiteFiber's business. We will need to continue to grow our management in order to alleviate pressure on our existing team and in order to continue to develop our business. If our management team, including any new hires that we may make, including any new hires we make to replace Mr. Tabar and Mr. Huang during the transition period, fails to work together effectively and to execute our plans and strategies on a timely basis, our business could be harmed. Furthermore, if we fail to execute an effective contingency or succession plan with the loss of any member of management, the loss of such management personnel may significantly disrupt our business.

The loss of key members of management could inhibit our growth prospects. Our future success also depends in large part on our ability to attract, retain and motivate key management and operating personnel. As we continue to develop and expand our operations, we may require personnel with different skills and experiences who have a sound understanding of our business. The market for highly qualified personnel in our industry is very competitive, and we may be unable to attract or retain such personnel. If we are unable to attract or retain such personnel, our business could be harmed.

***WhiteFiber's operations may be negatively affected if it is unable to obtain, develop and retain key personnel and skilled labor forces.***

WhiteFiber must attract, develop and retain executive officers and other professional, technical and labor forces with the skills and experience necessary to successfully manage, operate and grow. We have recently hired certain key personnel for WhiteFiber, as well as the management team of Enovum. However, competition for these employees is high, due, in part, to the nascent HPC Business workforce. In some cases, competition for these employees is on a regional, national, or global basis. At times of low unemployment, it may be difficult for WhiteFiber to attract and retain qualified and affordable personnel. A shortage in the supply of skilled personnel creates competitive hiring markets, increased labor expenses, decreased productivity and potentially lost business opportunities to support WhiteFiber's operating and growth strategies. Additionally, if WhiteFiber is unable to hire employees with the requisite skills, it may be forced to incur significant training expenses. As a result, WhiteFiber's ability to maintain productivity, relationships with customers, competitive costs, and quality services is limited by the ability to employ, retain and train the necessary skilled personnel and could negatively affect its results of operations, financial position and cash flows.

***If we cannot maintain our corporate culture as we grow, we could lose the innovation, collaboration and focus that contribute to our business.***

We believe that a critical component of our success is our corporate culture, which we believe fosters innovation, encourages teamwork and cultivates creativity. As we continue to grow, we may find it difficult to maintain these valuable aspects of our corporate culture. Any failure to preserve our culture could negatively impact our future success, including our ability to attract and retain employees, encourage innovation and teamwork and effectively focus on and pursue our corporate objectives.

***Cybersecurity incidents and threats including cyberattacks, ransomware attacks and security breaches of cloud services and our information systems, or those impacting our third parties, could adversely impact our brand and reputation and our business, operating results, and financial condition.***

Our cloud services involve the collection, storage, processing, and transmission of confidential information, employee, service provider, and other personal data. We have built our cloud services on the premise that we maintain a secure way to secure, store, and transact in cloud services. As a result, any actual or perceived security breach of us or our third-party partners may:

● harm our reputation and brand;

● result in our cloud services being unavailable and interrupt our operations;

● result in improper disclosure of data and violations of applicable privacy and other laws;

● result in significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, and financial exposure;

● result in exposure to claims for damages and other remedies by our customers and individuals whose personal data is the subject to a cybersecurity incident;

● cause us to incur significant remediation and notification costs;

● divert the attention of management from the operation of our business; and

● adversely affect our business and operating results.

Further, any actual or perceived breach or cybersecurity incident or attack, whether or not we are directly impacted, could lead to a general loss of customer confidence in the digital asset industry or in the use of technology to conduct financial transactions, which could negatively impact us, including the market perception of the effectiveness of our security measures and technology infrastructure. Certain kinds of cybersecurity incidents and attacks, such as ransomware attacks, could result in the interruption of our cloud services and information systems, and result in the inability to access and loss of data.

An increasing number of organizations, including large merchants, businesses, technology companies, and financial institutions, as well as government institutions, have disclosed breaches of their information security systems, some of which have involved sophisticated and highly targeted attacks, including on their websites, mobile applications, and infrastructure.

Cybersecurity incidents and attacks upon systems across a variety of industries, including cloud services, are increasing in their frequency, persistence, and sophistication, and, in many cases, are being conducted by sophisticated, well-funded, and organized groups and individuals, including state actors. The techniques used to obtain unauthorized, improper, or illegal access to systems and information (including customers and partners' personal data, AI algorithms, disable or degrade services, or sabotage systems are constantly evolving, may be difficult to detect quickly, and often are not recognized or detected until after they have been launched against a target. These attacks may occur on our cloud services or those of our third-party service providers or partners. Certain types of cyberattacks could harm us even if our systems are left undisturbed. For example, attacks may be designed to deceive employees and service providers into releasing control of our systems to a hacker, while others may aim to introduce computer viruses or malware into our cloud services with a view to stealing confidential or proprietary data. Additionally, certain threats are designed to remain dormant or undetectable until launched against a target and we may not be able to implement adequate preventative measures.

Although we have developed systems and processes designed to protect our information systems and the data we manage, prevent cybersecurity incidents, data loss and other security breaches, effectively respond to known and manage, prevent cybersecurity incidents, data loss and other security breaches, effectively respond to known and potential risks, and expect to continue to expend significant resources to bolster these protections, there can be no assurance that these security measures will provide absolute security or prevent breaches or attacks. We have experienced from time to time, and may experience in the future, breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities, or other irregularities. Unauthorized parties have attempted, and we expect that they will continue to attempt, to gain access to our systems and facilities, as well as those of our customers, partners, and third-party service providers, through various means, including hacking, social engineering, phishing, and attempting to fraudulently induce individuals (including employees, service providers, and our customers) into disclosing usernames, passwords, payment card information, or other sensitive information, which may, in turn, be used to access our cloud services. Threats can come from a variety of sources, including criminal hackers, hacktivists, state-sponsored intrusions, industrial espionage, and insiders. Certain threat actors may be supported by significant financial and technological resources, making them even more sophisticated and difficult to detect.

***We may be vulnerable to physical security breaches, which could disrupt our operations and have a material adverse effect on our business, financial condition and results of operations.***

A party who is able to compromise the physical security measures protecting our facilities could cause interruptions or malfunctions in our operations and misappropriate our property or the property of our customers. As we provide assurances to our customers that we provide the highest level of security, such a compromise could be particularly harmful to our brand and reputation. We may be required to expend significant capital and resources to protect against such threats or to alleviate problems caused by breaches in security. As techniques used to breach security change frequently and are often not recognized until launched against a target, we may not be able to implement new security measures in a timely manner or, if and when implemented, we may not be certain whether these measures could be circumvented. Any breaches that may occur could expose us to increased risk of lawsuits, regulatory penalties, loss of existing or potential customers, harm to our reputation and increases in our security costs, which could have a material adverse effect on our business, financial condition and results of operations.

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***Supply chain disruptions may adversely affect WhiteFiber's operations.***

WhiteFiber is a provider of Graphic Processing Units ("GPUs") compute and purchases NVIDA H100 and H200 servers, as well as other servers, through OEMS, for example, Super Micro Computer Inc®, Dell, and Hewlett Packard Enterprise. Disruptions, shortages or delays in WhiteFiber's ability to source GPUs and price increases from suppliers have and may continue to occur, which have and may continue to adversely affect WhiteFiber's results of operations, financial condition, cash flows and harm customer relationships. Any material disruption at WhiteFiber's facilities or those of its customers or suppliers or otherwise within its supply chain, whether as a result of downtime, work stoppages or facility damage could prevent WhiteFiber from meeting customer demands or expected timelines, require it to incur unplanned capital expenditures, or cause other material disruptions to its operations, any of which could have a material adverse effect on WhiteFiber's operations, financial position and cash flows. Further, supply chain disruptions can occur from events out of WhiteFiber's control, such as environmental incidents or other catastrophes.

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

We generate a large portion of our revenue from a small number of customers. There are inherent risks whenever a large percentage of total revenue is concentrated with a limited number of customers. If we were to lose one or more of our customers, our operating results could be materially adversely affected.

*WhiteFiber Data Centers*

As of May 30, 2025, Enovum's data center served 14 customers. No one customer accounted for in excess of 50% of data center revenue in the three months ended March 31, 2025 or the 12 months ended December 31, 2024. During fiscal year 2023, 12 customers accounted for all of Enovum's revenue.

*Cloud Service Business*

During 2024, our HPC data center in Iceland had contracts with three customers. Our Initial Customer accounted for approximately 75% of our revenue during the three months ended March 31, 2025 and 96.6% of our revenues through December 31, 2024.

We expect that the limited number of customers will continue to account for a high percentage of our revenue for the foreseeable future. In addition, demand for our services generated by these customers may fluctuate significantly from quarter to quarter. 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. In the event that any of our customers experience a decline in their equipment usage for any reason, or decide to discontinue the use of our facilities, we may be compelled to lower our prices or risk losing a significant customer. Such developments could adversely affect our profit margins and financial position, leading to a negative impact on our revenue and operational results.

***Failure to attract, grow and retain a diverse and balanced customer base, could adversely affect our business and operating results.***

Our ability to attract, grow and retain a diverse and balanced customer base, consisting of enterprises, cloud service providers, network service providers, and digital economy customers, may affect our ability to grow our business. Currently our data center operations are limited to Iceland and Montreal, Canada which enables us to better generate significant interconnection revenues, which in turn increases our overall revenues. Our ability to attract customers to our data centers will depend on a variety of factors, including our product offerings, the presence of carriers, the overall mix of customers, the presence of key customers attracting business through ecosystems, 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 adversely affect the development, growth and retention of a diverse and balanced customer base and adversely affect our business, financial condition and results of operations.

***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.

***We have an evolving business model which is subject to various uncertainties.***

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As cloud services and WhiteFiber data centers become more widely available, we expect the services and products associated with them to evolve. In order to stay current with the industry, our business model requires us to evolve as well. From time to time, we have modified and will continue to modify aspects of our business model relating to our strategy. We cannot offer any assurance that these or any other modifications will be successful or will not result in harm to our business. We may not be able to manage growth effectively, which could damage our reputation, limit our growth and negatively affect our operating results. Further, as the markets in which we operate continue to evolve, new market participants have emerged and may continue to emerge and this may require us to further evaluate our business model and products and services. We cannot provide any assurance that we will successfully identify all emerging trends and growth opportunities in this business sector, and we may lose out on those opportunities. Such circumstances could have a material adverse effect on our business, prospects or operations.

***WhiteFiber may be negatively impacted by future litigation, claims or investigations.***

WhiteFiber may become party to, among other things, environmental, commercial, contract, warranty, antitrust, tax, property entitlements and land use, product liability, health and safety, and employment claims. The outcome of any future lawsuits, claims, investigations or proceedings is often difficult to predict and could be adverse and material in amount. In addition to the monetary cost, litigation can divert management's attention from its core business opportunities. Development of new information in these matters can often lead to changes in management's estimated liabilities associated with these proceedings including the judge's rulings or judgements, jury verdicts, settlements or changes in applicable law. The outcome of such matters is often difficult to predict and unfavorable outcomes could have a material impact to WhiteFiber's results of operations, financial position and cash flows.

***We do not have any business interruption or disruption insurance coverage.***

Currently, we do not have any business liability or disruption insurance to cover our operations, other than director's and officer's liability insurance. We have determined that the costs of insuring for these risks and the difficulties associated with acquiring such insurance on commercially reasonable terms make it impractical for us to have such insurance. Any uninsured business disruptions may result in our incurring substantial costs and the diversion of resources, which could have an adverse effect on our results of operations and financial condition.

***General risk factors that could impact WhiteFiber's businesses.***

Certain additional factors may negatively impact WhiteFiber's financial results in future periods. The following factors should be considered for a better understanding of the risks to WhiteFiber:

● *Acquisition, disposal, and impairments of assets or facilities*: These activities can lead to financial losses, operational disruption, or reduced asset value if transactions are poorly timed, overpriced, or if market conditions change.

● *The cyclical nature of large infrastructure projects*: Our data center development is subject to long lead times, significant upfront capital investment, including equity and debt financing, and dependence on customer demand forecasts. As a result, our infrastructure projects are exposed to economic cycles, technology refresh cycles, and shifts in AI or cloud compute demand.

● *Labor negotiations or disputes*: Work stoppages or unfavorable labor terms can disrupt operations, increase costs, and delay project timelines.

● *Inability of contract counterparts to meet their contractual obligations*: Default by suppliers, customers, or partners can result in revenue shortfalls, service disruptions, or increased costs to find replacements.

● *The inability to effectively integrate the operations and the internal controls of any acquired companies*: Poor integration can lead to inefficiencies, compliance risks, and failure to realize expected synergies, affecting overall financial and operational performance.

***We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions, including bank failures, could adversely affect our liquidity and financial performance.***

We regularly maintain domestic cash deposits in Federal Deposit Insurance Corporation ("FDIC") insured banks that exceed the FDIC insurance limits. Bank failures, events involving limited liquidity, defaults, non-performance, or other adverse developments that affect financial institutions, or concerns or rumors about such events, may lead to liquidity constraints. For example, on March 10, 2023, Silicon Valley Bank failed and was taken into receivership by the FDIC. The failure of a bank, or other adverse conditions in the financial or credit markets impacting financial institutions at which we maintain balances, could adversely impact our liquidity and financial performance. There can be no assurance that our deposits in excess of the FDIC or other comparable insurance limits will be backstopped by the U.S., or that any bank or financial institution with which we do business will be able to obtain needed liquidity from other banks, government institutions or by acquisition in the event of a failure or liquidity crisis.

**Cloud Service Development Related Risks**

***Our cloud service technology and infrastructure may not operate properly or as we expect them to, which could cause us to incur fines and monetary penalties, adversely affecting our business, results of operations, and financial condition.***

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The continuous development, maintenance, and operation of our cloud service technology and infrastructure is expensive and complex and may involve unforeseen difficulties, including material performance problems, undetected defects, or errors, particularly with new capabilities and system integrations. We may encounter technical obstacles, and it is possible that we may discover additional problems that prevent our technology and systems from operating properly. If our cloud services do not function reliably, we may incur fines and monetary penalties, as well as regulatory orders requiring remedial, injunctive, or other corrective actions.

Regulators may limit our ability to develop or implement our cloud services technology and infrastructure and/or may eliminate or restrict the confidentiality of our technology, which could have a material adverse effect on our financial condition and results of operations.

Our future success depends on our ability to continue to develop and implement our cloud services technology, and to maintain the confidentiality of this technology. Changes to existing regulations, their interpretation or implementation, or new regulations could impede our use of this technology, or require that we disclose our technology to our competitors, which could impair our competitive position and result in a material adverse effect on our business, results of operations, and financial condition.

***We face intense competition in the cloud services industry and may not be able to compete with other companies. If we do not continue to innovate and provide cloud services to our customers and partners, we may not remain competitive, which could harm our business, financial condition, cloud service and operating results.***

We may not be able to compete successfully against present or future competitors. We do not have the resources to compete with larger providers of similar products or services at this time. Our cloud services business environment is rapidly evolving and intensely competitive; it faces changing cloud service technologies, shifting customer needs, and frequent introductions of rival products and services. To compete successfully, we must accurately anticipate cloud service technology developments and deliver innovative, relevant, and useful products, services, and technologies in a timely manner. As our cloud services business evolves, the competitive pressure to innovate will encompass a wider range of products and services. We must continue to invest significant resources in technical infrastructure and R&D, including through acquisitions, in order to enhance our cloud service technology, and services. With the limited resources we have available, we may experience difficulties in expanding and improving our colocation data center and services to remain competitive. Competition from existing and future competitors particularly those better capitalized, could result in our inability to secure acquisitions and partnerships that we may need to expand our business in the future. 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 expand and remain competitive, our business could be negatively affected which would have an adverse effect on the trading price of our Ordinary Shares, which would harm our investors.

Our current and potential domestic and international competitors range from large and established companies to emerging start-ups. Some competitors have longer operating histories and well-established relationships in various sectors. They can use their experience and resources in ways that could affect our competitive position, including by making acquisitions and entering into other strategic arrangements; continuing to invest heavily in cloud services technical infrastructure, R&D, and in talent; initiating intellectual property and competition claims (whether or not meritorious). Further, discrepancies in enforcement of existing laws may enable our lesser known competitors to aggressively interpret those laws without commensurate scrutiny, thereby affording them competitive advantages. Our competitors may also be able to innovate and provide cloud services faster than we can or may foresee the need for products and services before we do.

We are expanding our investment in research and development companywide. This includes generative AI and continuing to integrate AI capabilities into our products and services. Cloud service technology and services are highly competitive, rapidly evolving, and require significant investment, including development and operational costs, to meet the changing needs and expectations of our existing users and attract new users. Our ability to deploy certain cloud service technologies critical for our products and services and for our business strategy may depend on the availability and pricing of third-party equipment and technical infrastructure. Additionally, other companies may develop cloud service products and technologies that are similar or superior to our technologies or more cost-effective to deploy. Other companies have, or in the future may obtain, patents or other proprietary rights that would prevent, limit, or interfere with our ability to make, use, or sell our own cloud services.

Our financial condition and operating results may also suffer if our cloud services are not responsive to the evolving needs and desires of our customers and partners. As new and existing cloud service technologies continue to develop, competitors and new entrants may be able to offer experiences that are, or that are seen to be, substantially similar to or better than ours. These technologies could reduce usage of our products and services, and force us to compete in different ways and expend significant resources to develop and operate equal or better products and services. Competitors' success in providing compelling products and services or in attracting and retaining customers and partners could harm our financial condition and operating results.

***Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense.***

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Our go-to-market approach currently focuses on a top-down sales model to drive demand and pipeline from the large AI labs and AI enterprises. Sales to such customers involves longer and more unpredictable sales cycles. Customers often view the purchase of our platform as a significant strategic decision and, as a result, frequently require considerable time to evaluate, test, and qualify our platform prior to entering into or expanding a relationship with us. Large enterprises in particular, often undertake a significant evaluation process that further lengthens our sales cycle.

Our direct sales team develops relationships with our customers, and works on account penetration, account coordination, sales, and overall market development. We spend substantial time and resources on our sales efforts without any assurance that our efforts will produce a sale. Cloud infrastructure capacity purchases are frequently subject to budget constraints, multiple approvals, and unanticipated administrative, processing, and other delays. As a result, it is difficult to predict whether and when a sale will be completed. The failure of our efforts to secure sales after investing resources in a lengthy sales process would adversely affect our business, operating results, financial condition, and future prospects*.***

***Our ability to maintain customer satisfaction depends in part on the quality of our customer support and cloud operations services. Our failure to maintain high-quality customer support and cloud operations services could have an adverse effect on our business, operating results, financial condition, and future prospects.***

We believe that the successful use of our platform requires a high level of support and engagement for many of our customers. In order to deliver appropriate customer support and engagement, we must successfully assist our customers in deploying and continuing to use our platform, resolve performance issues, address interoperability challenges with the customers' existing IT infrastructure, and respond to security threats and cyber-attacks and performance and reliability problems that may arise from time to time. Increased demand for customer support and cloud operations services, without corresponding increases in revenue, could increase our costs and adversely affect our business, operating results, financial condition, and future prospects.

Furthermore, there can be no assurance that we will be able to hire sufficient support personnel as and when needed, particularly if our sales exceed our internal forecasts. We expect to increase the number of our customers, and that growth may put additional pressure on our customer support and cloud operations services teams. Our customer support and cloud operations services teams may need additional personnel to respond to customer demand. We may be unable to respond quickly enough to accommodate short-term increases in customer demand for services. To the extent that we are unsuccessful in hiring, training, and retaining adequate support resources, our ability to provide high-quality and timely support to our customers will be negatively impacted, and our customers' satisfaction and their purchase of our infrastructure could be adversely affected.

In addition, as we continue to grow our operations and expand outside of the United States, we need to be able to provide efficient services that meet our customers' needs globally at scale, and our customer support and cloud operations services teams may face additional challenges, including those associated with operating the platforms and delivering support, training, and documentation in languages other than English and providing services across expanded time-zones. If we are unable to provide efficient customer support services globally at scale, our ability to grow our operations may be harmed, and we may need to hire additional services personnel which could increase our expenses, and negatively impact our business, financial condition, operating results, and future prospects.

***The broader adoption, use, and commercialization of AI technology, and the continued rapid pace of developments in the AI field, are inherently uncertain. Failure by our customers to use our cloud services to support AI use cases in their systems, or our ability to keep up with evolving AI technology requirements and regulatory frameworks, could have a material adverse effect on our business, operating results, financial condition, and future prospects.***

As part of our growth strategy, we seek to attract and acquire customers requiring high-performance computing, such as AI, machine learning, and automated decision-making technologies, including proprietary AI algorithms and models (collectively, "AI Technologies").

AI has been developing at a rapid pace, and continues to evolve and change. As demand continues for AI services, AI providers, including our customers, have sought increased compute capacity to enable advancements in their AI models and service the demands of end users. We cannot predict whether additional computing power will continue to be required to develop larger, more powerful AI models, or if the practical limits of AI technology will plateau in the future regardless of available compute capacity. Further, there have been recent advancements in AI technology, including open-source AI models, that may lead to compute and other efficiencies that may impact the demand for AI services, including our platform, solutions, and services, which may adversely impact our revenue and profitability. In the event that existing scaling laws do not continue to apply as they have in the past, demand by our customers for compute resources, including our solutions and services, may not continue to increase over time, or may decrease if overall demand for AI is impacted by a lack of further technological development. If we are unable to keep up with the changing AI landscape or in developing services to meet our customers' evolving AI needs, or if the AI landscape does not develop to the extent we or our customers expect, our business, operating results, financial condition, and future prospects may be adversely impacted.

Additionally, we may incur significant costs and experience significant delays in developing new solutions and services or enhancing our current platform to adapt to the changing AI landscape, and may not achieve a return on investment or capitalize on the opportunities presented by demand for AI solutions. Moreover, while AI adoption is likely to continue and may accelerate, the long-term trajectory of this technological trend is uncertain. Further, market acceptance, understanding, and valuation of solutions and services that incorporate AI Technologies are uncertain and the perceived value of AI Technologies used and/or provided by our customers could be inaccurate. If AI is not broadly adopted by enterprises to the extent we expect, or if new use cases do not arise, then our opportunity may be smaller than we expect. Further, if the consumer perception and perceived value of AI Technologies is inaccurate this could have a material adverse effect on our customers, which in turn could have a material adverse effect on our business, operating results, financial condition, and future prospects.

Concerns relating to the responsible use by our customers of new and evolving technologies, such as AI, which are supported by our platform, may result in collateral reputational harm to us. AI may pose emerging ethical issues and if our platform enables customer solutions that draw controversy due to their perceived or actual impact on society, we may experience brand or reputational harm, competitive harm, or legal liability.

Furthermore, the rapid pace of innovation in the field of AI has led to developing and evolving regulatory frameworks globally, which are expected to become increasingly complex as AI continues to evolve. Regulators and lawmakers around the world have started proposing and adopting, or are currently considering, regulations and guidance specifically on the use of AI. Regulations related to AI Technologies have been introduced in the United States at the federal level and are also enacted and advancing at the state level. Additional regulations may impact our customers' ability to develop, use and commercialize AI Technologies, which would impact demand for our platform, solutions, and services and may affect our business, operating results, financial condition, and future prospects.

AI and related industries, including cloud services, are under increasing scrutiny from regulators due to their concerns about market concentration, anti-competitive practices, and the pace of partnerships and acquisitions involving generative AI startups. As the industry continues to grow, transactions and business conduct will likely continue to draw scrutiny from regulators. Our customers may become subject to further AI regulations, including any restrictions on the total consumption of compute technology, which could cause a delay or impediment to the commercialization of AI technology and could lead to a decrease in demand for our customers' AI infrastructure, and may adversely affect our business, operating results, financial condition, and future prospects.

**Risks Related to Our Cloud Services and Data Center Operations**

***We are at an early stage of development of our business, currently have limited sources of revenue, and may not become profitable in the future.***

We are subject to the risks and uncertainties of a new business, with limited sources of revenue. The Company began generating revenue from cloud services in Iceland in January 2024. Accordingly, we have only a limited history upon which an evaluation of our prospects and future performance can be made.

As we grow and develop as a business, we are attempting to reduce the impact of variability on our revenue and colocation costs by entering into long-term contracts at each site. In our data center services, our contracts with our 14 customers range from month to month to 60 months. In our cloud services business, we provide cloud infrastructure for highly scalable GPU accelerated applications, or GPU clusters, to our customers under contracts spanning from month to month to 36 months. As these are new services in the industry, the value and longevity of the GPUs remain uncertain in this rapidly evolving market. Given that we have only a limited history of operating a colocation data center, the long-term profitability of these contracts cannot be presently determined. If we are unable to successfully implement our development plan or to increase our generation of revenue, we will not remain profitable in the future.

We intend to continue scaling our company to increase our customer base and implement initiatives, including new business lines and global expansion. These efforts may prove more expensive than we currently anticipate. We may be unable to secure the required financing which may not result in increased revenue or profitability in the short term or at all. We will also incur increased compliance costs associated with growth, expanding our customer base, and being a public company. Our efforts to grow our business may be costlier than we expect, or the revenue growth rate may be slower than we expect. As we pivot towards new markets such as cloud services and colocation data center operations, we realize that our limited experience in these areas may impact our ability to accurately assess our prospects. The likelihood of our success must be considered in light of the expenses, difficulties, complications, problems and delays frequently encountered in connection with the expansion of a business, operating a business in a competitive industry, and the continued development of expanding our customer base. There can be no assurance that we will operate profitably in the future.

***We may be unable to access sufficient additional capital equity and debt financing needed to grow our business.***

We will need to raise substantial additional capital to expand our data center operations, pursue our growth strategies and to respond to competitive pressures or unanticipated working capital requirements. However, market conditions may limit our ability to raise funds in a timely manner, in sufficient quantities, or on terms acceptable to us, if at all, which could impair our growth and adversely affect our existing operations. If we raise additional equity financing, our shareholders may experience significant dilution of their ownership interests, and the per share value of our Ordinary Shares could decline. Furthermore, if we engage in debt financing, the holders of debt would have priority over the holders of our Ordinary Shares on order of payment preference. We may be required to accept terms that restrict our ability to incur additional indebtedness, pay dividends to our shareholders, or take other actions. We may also be required to maintain specified liquidity or other ratios that could otherwise not be in the interests of our shareholders. 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 these provisions could make investing in our securities less attractive to investors and could limit our ability to obtain adequate financing on a timely basis or on acceptable terms in the future, which could have significant harmful effects on our financial condition and business and could include substantial limitations on our ability to continue to conduct operations.

***Our business depends upon the demand for data centers.***

We are in the business of owning, acquiring, 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 business and financial condition than if our assets were devoted to a less specialized use. Our substantial development activities make us particularly susceptible to general economic slowdowns, as well as adverse developments in the data center, Internet, AI and data communications and broader technology industries. It is not possible for us to predict the future level of demand for our services that will be generated by these customers or the future demand for the products and services of these customers. Any such slowdown or adverse development could lead to reduced corporate IT spending or reduced demand for data center space. Changes in industry practice or in technology could reduce demand for the physical data center space we provide. In addition, our customers may choose to develop new data centers or expand their own existing data centers or consolidate into data centers that we do not own or operate, which could reduce demand for our newly developed data centers or result in the loss of one or more key customers. If any of our key customers were to do so, it could result in a loss of business to us or put pressure on our pricing. Mergers or consolidations of technology companies could reduce further the number of our customers and potential customers and make us more dependent on a more limited number of customers. If our customers merge with or are acquired by other entities that are not our customers, they may discontinue or reduce the use of our data centers in the future. 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 as a result of any or all of these factors.

***We face intense competition in the data centers operations and may not be able to compete with other companies. If we do not continue to innovate in the design and management of data centers in order to offer innovative solutions to store, process and manage digital information, including AI and ML applications, to our customers and partners, we may not remain competitive, which could harm our business, financial condition, data centers and operating results.***

We may not be able to compete successfully against present or future competitors. We do not have the capital resources to compete with larger providers of similar data centers at this time. Our data centers business environment is rapidly evolving and intensely competitive, and it faces frequent introductions of rival solutions and new technologies. To compete successfully, we must, among other things, accurately anticipate data center technology developments and innovate data centers' design, management and technologies in a timely manner. As our data centers business evolves, the competitive pressure to innovate will encompass a wider range of technologies and solutions. We must continue to invest significant resources in personnel, technical infrastructure and R&D, including through acquisitions, in order to advance/innovate our data centers. With the limited resources we have available, we may experience difficulties in expanding and improving our data centers. Competition from existing and future competitors, particularly those better capitalized, could result in our inability to secure acquisitions and partnerships that we may need to expand our data centers business in the future. This competition from other entities with greater resources, experience and reputation may result in our failure to maintain or expand our data center business, as we may never be able to successfully execute our business plan. If we are unable to expand and remain competitive, our business could be negatively affected, which would have an adverse effect on the trading price of our Ordinary Shares, which would harm our investors.

***We depend upon third-party suppliers for power, and we are vulnerable to service failures and price increases by such suppliers and to volatility in the supply and price of power in the open market.***

We rely on third parties to provide power to our data centers, and we cannot ensure that these third parties will deliver such power in adequate quantities or on a consistent basis. We are also reliant on third parties to deliver additional power capacity to support the growth of our business. If the amount of power available to us is inadequate to support our customer requirements, we may be unable to satisfy our obligations to our customers or grow our business. In addition, our data centers may be susceptible to power shortages and planned or unplanned power outages caused by these shortages. Power outages may last beyond our backup and alternative power arrangements, which would harm our customers and our business. Any loss of services or equipment damage could adversely affect both our ability to generate revenues and our operating results, harm our reputation and potentially lead to customer disputes or litigation.

***Our purchase orders with hardware manufacturers include extended delivery schedules.***

We rely on third parties to timely obtain an adequate delivery of hardware. Our purchase orders with hardware manufacturers include extended delivery schedules spanning several months before the hardware is delivered to our facilities. These fluctuations in delivery timelines necessitate careful planning and advanced purchasing strategies to ensure we can acquire hardware well before their anticipated deployment. Failure to adequately plan for such fluctuations could have a material adverse effect on the Company's business, prospects, results of operations and financial condition.

***A curtailment or disruption in energy supply in Iceland, Canada or the U.S. due to regulations and policies implemented by their respective governments, which prioritize energy supply, may cause a substantial disruption or discontinuance of WhiteFiber's data center operations based in Iceland, Canada or prospectively in the U.S., and therefore impair WhiteFiber's financial condition or results of operations.***

Through WhiteFiber Iceland ehf, the Company established and has been providing cloud services since November 2023, developing a fleet of 256 servers at a third-party data center located in Northern Iceland. Through WhiteFiber's subsidiary Enovum which was acquired in October 2024, we have been operating our data center located in Montreal Canada (MTL-1), and expect to commence operations in the in the fourth quarter of 2025 at MTL-2 and MTL-3. In May 2025, we purchased a former industrial manufacturing building and land outside of Greensboro, North Carolina which we expect to be operational in the first quarter of 2026.

In order to maintain its data center operations, WhiteFiber and its landlord in Iceland and in Montreal will need to acquire sufficient supplies of electricity generated by hydroelectric, geothermal energy and electricity. In addition, WhiteFiber's data centers need to also maintain reliable and adequate infrastructure and cooling systems to ensure optimal performance.

Currently, Icelandic and Canadian-based data centers and similar facilities, including the ones contracted with the Company, may face significant risks of energy disruption, curtailment or discontinuance due to low water level in Icelandic reservoirs utilized by hydropower plants, which provide hydro-generated energy in the country. In the event of a water shortage, and therefore a shortage of hydro-generated energy, the prioritization framework for Icelandic energy favors residential and certain business uses over data centers and similar facilities. In addition, volcanic eruptions might interrupt the generation of electricity from geothermal energy, as occurred several times in 2023.

In addition, we may be subject to risks and unanticipated costs associated with obtaining power from various utility companies. Utilities that serve our data centers may be dependent on, and sensitive to price increases for, a particular type of fuel, including hydroelectric. In addition, the total cost of delivered electricity could increase as a result of: regulations intended to regulate carbon emissions and other pollutants, ratepayer surcharges related to recovering the cost of extreme weather events and natural disasters (including volcanoes in Iceland and floods in North Carolina), geopolitical conflicts, military conflicts, grid modernization charges, as well as other charges borne by ratepayers. Increases in the cost of power at any of our data centers could put those locations at a competitive disadvantage relative to data centers that are supplied power at a lower price.

Accordingly, the energy supply for WhiteFiber's data centers may be subject to disruption and could become insufficient to support our operations. WhiteFiber's financial condition or results of operations may be adversely affected if its WhiteFiber data centers are disrupted or discontinued due to a curtailment or interruption of the energy supply.

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***We depend on third parties to provide network connectivity to the customers in our data centers and any delays or disruptions in connectivity may materially adversely affect our operating results and cash flow.***

We are not a telecommunications carrier. We believe that the availability of carrier capacity will directly affect our ability to achieve our projected results. Any carrier may elect not to offer its services within our data centers. Any carrier that has decided to provide network connectivity to our data centers may not continue to do so for any period of time. Further, some carriers are experiencing business difficulties or have announced consolidations. As a result, some carriers may be forced to downsize or terminate connectivity within our data centers, which could have an adverse effect on the business of our customers and, in turn, our own operating results.

Our data centers may require construction and operation of a sophisticated redundant fiber network. The construction required to connect multiple carrier facilities to data centers is complex and involves factors outside of our control, including regulatory requirements and the availability of construction resources. We have obtained the right to use network resources owned by other companies, in order to attract telecommunications carriers and customers to our portfolio. If the establishment of highly diverse network connectivity to our data centers does not occur, is materially delayed or is discontinued, or is subject to failure, our operating results and cash flow may be materially adversely affected. Additionally, any hardware or fiber failures on this network may result in significant loss of connectivity to our data centers. This could negatively affect our ability to attract new customers or retain existing customers, which could have an adverse effect on our business, financial condition and results of operations.

***Any failure of our physical or information technology or operational technology infrastructure or services could lead to significant costs and disruptions.***

Our business depends on providing customers with highly reliable services, including with respect to power supply, physical security, cybersecurity, and maintenance of environmental conditions. We may fail to provide such services because our operations are vulnerable to, among other things, mechanical or telecommunications failure, power outage, human error, physical or electronic security breaches, cyberattacks, ransomware attacks, war, terrorism, fire, earthquake, pandemics, hurricane, flood and other natural disasters, sabotage and vandalism.

Substantially all of our customer agreements include terms requiring us to meet certain service level commitments. Any failure to meet these or other commitments or any equipment damage in our data centers due to any reason could subject us to contractual liability, including service level credits against customer rent payments, legal liability and monetary damages, regulatory sanctions, or, in certain cases of repeated failures, the right by the customer to terminate the agreement. Service interruptions, equipment failures or security breaches could also materially impact our brand and reputation globally and lead to customer contract terminations or non-renewals and an inability to attract customers in the future.

***Any disruption of service experienced by certain of our third-party service providers, or our ineffective management of relationships with third-party service providers could harm our business, financial condition, operating results, cash flows and prospects.***

We rely on several third-party service providers for services that are essential to our business model, the most important of which are our suppliers of power, electrical equipment (including GPU servers), building materials, and construction services. Additionally, as we build our cloud service business, we also expect to rely on third parties to lease or sell us equipment which we then lease to certain of our cloud service and colocation data center customers. In addition, we may depend upon outside advisors who may not be available on reasonable terms as needed, or at all. To supplement the business experience of our officers and directors, we may be required to employ technical experts, appraisers, attorneys, or other consultants or advisors. If these third parties or other outside advisors experience difficulty providing the services we require, or if they experience disruptions or financial distress or cease operations temporarily or permanently, or if the products they supply are defective or cease to operate for any reason, it could make it difficult for us to execute our operations. If we are unsuccessful in identifying or finding highly qualified third-party service providers or employees, if we fail to negotiate cost-effective relationships with them or if we are ineffective in managing and maintaining these relationships, it could materially and adversely affect our business and our financial condition, operating results, cash flows and prospects.

***Any delays or unexpected costs in the development of any new properties acquired for development may delay and harm our growth prospects, future operating results and financial condition.***

We intend to build out additional WhiteFiber data centers in the future based on signed letters of intent 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 plans or specifications;

● 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 generators;

● construction site accidents and other casualties;

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

● 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;

● geological, construction, excavation and equipment problems; and

● delays or denials of entitlements or permits, including zoning and related permits, or other delays resulting from requirements of public agencies and utility companies, including as a result of local community resistance or protests in response to the development of new data centers.

In addition, 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 and on a timely basis, our business may be adversely affected.

***Our ongoing investment in retrofitting data centers involves infrastructure and technologies which is inherently risky, and could divert management attention and harm our business, financial condition, and operating results.***

Our ongoing investments that we are making in infrastructure, research and development augment our data center capabilities, reflect our ongoing efforts to innovate and provide products and services that are helpful to our customers. However, these investments may not be commercially viable or may not result in an adequate return of capital. These endeavors involve significant risks and uncertainties, including diversion of resources and management attention from current operations, different monetization models, and the use of alternative investment, governance, or compensation structures that may fail to adequately align incentives across the company or otherwise accomplish their objectives.

***If we incorrectly estimate our hosting 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 overestimate our business' capacity requirements or the demand for our services and therefore secure excess data center capacity, our operating margins could be materially reduced. If we underestimate these requirements, we may not be able to provide sufficient service to our existing customers or may be required to limit new customer acquisition, both of which may materially and adversely impair our results of operations.

Similarly, we have entered into multi-year contract commitments with our service providers in Iceland and Canada. If we overestimate our capacity requirements and therefore secure excess capacity and have excess capital expenditures, our operating margins could be materially reduced.

***Certain natural disasters or other external events, including climate change or mechanical failures, could harm our business, financial condition, results of operations, cash flows, and prospects.***

We may also experience disruptions due to mechanical failure, human error, physical or electronic security breaches, war, terrorism, fire, earthquake, pandemics, hurricane, flood and other natural disasters, sabotage and vandalism. Our systems may be susceptible to damage, interference, or interruption from modifications or upgrades, power loss, telecommunications failures, computer viruses, ransomware attacks, computer denial of service attacks, phishing schemes, or other attempts to harm or access our systems. Such disruptions could materially and adversely affect our business and our financial condition, operating results, cash flows, and prospects.

In addition, there continues to be a lack of consistent climate legislation, which creates economic and regulatory uncertainty for our business. With the energy demand of our business, we may become a target for future environmental and energy regulation. New legislation and increased regulation regarding climate change could impose significant costs on us and our suppliers, including costs related to increased energy requirements, capital equipment, environmental monitoring and reporting, and other costs to comply with such regulations. Further, any future climate change regulations could also negatively impact our ability to compete with companies situated in areas not subject to such limitations.

Given the political significance and uncertainty around the impact of climate change and how it should be addressed, and energy disclosure and use regulations, we cannot predict how legislation and regulation will affect our financial condition and results of operations in the future in the U.S. as well as in Iceland and Canada. Further, even without such regulation, increased awareness and any adverse publicity in the global marketplace about potential impacts on climate change or energy use by us or other companies in our industry could harm our reputation. Any of the foregoing could result in a material adverse effect on our business and financial condition.

***Establishing data centers in remote areas may adversely affect our ability to retain staff and increase our compensation costs.***

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If we establish data centers in areas with lower populations such as Iceland or remote parts of Canada, recruiting and retaining the necessary staff to operate our locations may pose a challenge. When we encounter a relatively low population, the pool of available employees is limited. In addition, some employers have offered significantly higher wages in order to fill vacant positions. This may adversely affect our ability to attract and retain qualified personnel and may increase our employee costs if we have to increase the compensation we pay in response to the market.

***WhiteFiber's data centers could be adversely impacted by climate change.***

Severe weather events, such as tornadoes, hurricanes, rain, drought, fire, ice and snowstorms, and high- and low- temperature extremes, occur in regions in which WhiteFiber operates and maintains infrastructure. WhiteFiber's principal data centers in Iceland and Canada are designed to provide year-round cool weather conditions. Nevertheless climate change could change the frequency and severity of weather events, which may create physical and financial risks to WhiteFiber. Such risks could have an adverse effect on WhiteFiber's financial condition, results of operations and cash flows. Increases in severe weather conditions or extreme temperatures may cause infrastructure construction projects to be delayed or canceled and limit resources available for such projects resulting in decreased revenue or increased project costs. In addition, drought conditions could restrict the availability of water supplies or limit the ability to obtain water use permits, inhibiting the ability to conduct operations. To date, neither of the Company's WhiteFiber data centers in Iceland or Canada have experienced any material impacts to its financial condition, results of operations or cash flows due to the physical effects of climate change.

The insurance industry may be adversely affected by severe weather events, which may impact availability of insurance coverage, insurance premiums and insurance policy terms.

***Our failure to accurately predict our facilities' and data centers' requirements could have a material adverse effect on our business, financial condition and results of operations.***

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The costs of building out, leasing and maintaining our facilities and data centers constitute a significant portion of our capital and operating expenses. In order to manage growth and ensure adequate capacity for our new and existing customers while minimizing unnecessary excess capacity costs, we continuously evaluate our short- and long-term data center capacity requirements. If we overestimate our business' capacity requirements or the demand for our services and therefore secure excess data center capacity, our operating margins could be materially reduced. If we underestimate our data center capacity requirements, we may not be able to service the required or expanding needs of our existing customers and may be required to limit new customer acquisition, which could have a material adverse effect on our business, financial condition and 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 or future 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.

**Risks Related to the Geopolitical Uncertainty**

***Changes in tariffs or import restrictions could have a material adverse effect on our business, financial condition and results of operations.***

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The U.S. government has adopted new approaches to trade policy and in some cases, may renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements. The U.S. government has also imposed tariffs on certain foreign goods and has raised the possibility of imposing significant, additional tariff increases or expanding the tariffs to capture other countries and types of foreign goods. Because WhiteFiber is developing data centers in Canada and the United States, the imposition of tariffs on imports between these countries or from other countries, such as a 50% tariff on copper imports announced in July 2025 by the U.S. government, could materially impact the cost, timeline, and feasibility of our projects. Tariffs imposed by the U.S. on imports from Mexico and Canada or from other countries, as well as reciprocal tariffs imposed by such countries on U.S. goods, could increase WhiteFiber's costs for key construction materials, specialized equipment, and labor, potentially delaying deployments and reducing profitability.

Data center construction relies heavily on steel, aluminum, copper, electrical components and HVAC systems, some of which the Company is sourcing from Mexico and Canada. The tariffs the U.S. has imposed, or has considered imposing, on Canadian steel, aluminum and copper imports, are expected to increase the cost of WhiteFiber's potential projects in the U.S. Similarly, if Canada imposes reciprocal tariffs on U.S. exports, WhiteFiber's projects in Canada could see cost increases for imported power infrastructure, networking hardware, and construction equipment.

Additionally, several transformers, battery storage systems, and cooling systems used in our North American data centers are manufactured in or pass through Mexico. If the U.S. imposes new or additional tariffs on Mexican-manufactured electrical equipment, this could create supply chain bottlenecks and increase capital expenditures for both U.S. and Canadian facilities. Likewise, trade restrictions on Canadian-manufactured networking equipment or semiconductors would disrupt supply availability for our potential projects in the U.S.

Tariffs and trade tensions between the U.S., Mexico, and Canada could also indirectly impact the availability and cost of skilled labor. Many specialized contractors for data center construction, electrical work, and mechanical systems operate across borders. Increased trade friction could reduce labor mobility, increase wages, or limit access to essential expertise, slowing project execution.

Such higher costs for critical data center components, potential disruptions to equipment supply chains and labor and cross-border workforce challenges could have material adverse effects on our business, financial condition and results of operations.

Additionally, if tariffs increase the cost of building and operating data centers in the U.S. and Canada, our customers, hyperscalers and cloud providers, may shift expansion plans to more cost-effective regions, such as Europe or Asia. This could negatively impact short-term and long-term demand for WhiteFiber's colocation and infrastructure services.

Finally, in response to tariffs, other countries have implemented retaliatory tariffs on U.S. goods. Political tensions as a result of trade policies could reduce trade volume, investment, technological exchange, and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets, which could in turn have a material adverse impact on our business, financial condition and results of operations.

***Uncertainty in the global economy and instability within international relations, including changes in governmental policies relating to technology, and any potential downturn in the semiconductor and electronics industries, may negatively impact our business****.* 

 

There is inherent risk, based on the complex relationships between certain countries and within regions, that political, diplomatic or military events could result in trade disruptions and other disruptions in the markets and industries we serve and our supply chain. For example, the ongoing geopolitical and economic uncertainty between the U.S. and China, the unknown impact of current and future U.S. and Chinese trade regulations, and geopolitical risks between the U.S, Canada, where our data centers are located, between the U.S. and Mexico, where certain components are supplied, or between China and Taiwan where chips are manufactured, could, directly or indirectly, materially harm our business, financial condition and results of operations.

While overall semiconductor supply conditions have improved, we continue to monitor potential availability constraints for high-performance GPUs and related hardware, which may affect the timing of future deployments in our cloud services business.

Furthermore, political or economic conflicts between various global actors, and responsive measures that have been taken and could be taken in the future, have created and can further create significant global economic uncertainty that could prolong or expand such conflicts, which could have a lasting impact on regional and global economies and harm our business and operating results.

***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.

However, WhiteFiber is committed to continuously embrace the sustainability of our HPC infrastructure with the majority of the GPUs running on carbon-free renewable energy. The SEC has proposed rule changes that would require companies to include certain climate-related disclosures such as climate-related risks that are reasonably likely to have a material impact on business, results of operations, or financial conditions. Should such proposed rules be adopted, increased public scrutiny of our business may affect our operations, competitive position, and financial condition.

In addition, the physical risks of climate change may impact the availability and cost of materials and natural resources, sources and supply of energy, 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 in the U.S., Iceland or Canada 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.

***Various actual and potential conflicts of interest may be detrimental to shareholders.***

Certain conflicts of interest may exist, or be perceived to exist, between us and our directors or certain executive officers, who are also officers and/or directors of Bit Digital, our parent company, which will own approximately 80% of our share capital following this offering. Each person must devote time, resources and attention to the affairs of Bit Digital. This may conflict with such officer's or director's interest in us, including conflicting with interests in allocating resources, time and attention to our business and impacting decisions made on our behalf with respect to Bit Digital. For example, it is expected that, following this offering and continuing until up to two years thereafter, Sam Tabar and Erke Huang will continue to serve as (i) Chief Executive Officer and (ii) Director and Chief Financial Officer, respectively, of Bit Digital. Messrs. Tabar and Huang are expected to provide certain services, representing not more than approximately 30% of their working time, in respect of Bit Digital operations and have committed to provide the requisite time and effort to fulfill their responsibilities as a full-time officer of White Fiber, supervising a full staff. These actual or potential conflicts of interest could arise, for example, over matters such as the desirability of changes in our business and operations, funding and capital matters, regulatory matters, agreements with Bit Digital relating to the Reorganization or otherwise, employee retention or recruiting or our dividend policy.

We have put specific procedures in place with respect to potential conflicts of interest, however, in determining with whom our officers or directors may have relationships and considering the risks and risk mitigation factors. As an example, we require that transactions with Bit Digital involving our executive officers and directors be approved or ratified by our Audit Committee, and recognizing that Ms. Ichi Shih is also the Chair of the Bit Digital Audit Committee. While we have a majority of independent directors on our Board in order to ensure that there are limitations on the risks of conflicts of interest impacting Board level decisions, since WhiteFiber is not operating in the crypto mining business, the effects of any such risks of conflicts of interest involving our separate business operations are limited in scope. We expect that as we add officers and independent directors, the risks of conflicts of interest will become more limited over time. We cannot, however, guarantee that the conflicts of interest described above, or other future conflicts of interest, will not manifest in advice or decisions that negatively impact our financial results and our operations.

***We may depend upon outside advisors who may not be available on reasonable terms as needed.***

To supplement the business experience of our officers and directors, we employ technical experts, appraisers, attorneys, or other consultants or advisors. Our management, with our board of directors approval in certain cases, without any input from shareholders will make the selection of any such advisors. Furthermore, it is anticipated that such persons may be engaged on an "as needed" basis without a continuing fiduciary or other obligation to us. In the event we consider it necessary to hire outside advisors, we may elect to hire persons who are affiliates, if they are able to provide the required services.

***The nature of our business requires the application of complex financial accounting rules, and there is limited guidance from accounting standard setting bodies. If financial accounting standards undergo significant changes, our operating results could be adversely affected.***

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. Recent actions and public comments from the FASB and the SEC have focused on the integrity of financial reporting and internal controls. In addition, many companies' accounting policies are being subject to heightened scrutiny by regulators and the public. Uncertainties or changes in 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, which could adversely affect our financial statements, result in a loss of investor confidence, and more generally impact our business, operating results, and financial condition.

**Risks Related to the Reorganization**

***We potentially could have received better terms from unaffiliated third parties than the terms we received in our agreements with Bit Digital.***

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The agreements that are being entered into with Bit Digital in connection with the Reorganization and transition of services (including the Transition Services Agreement) were negotiated while we were still part of Bit Digital's business. See "*Certain Relationships and Related Party Transactions—Agreements With Bit Digital*." Accordingly, during the period in which the terms of those agreements will have been negotiated, we did not have an independent Board of Directors or a management team independent of Bit Digital. The terms of the agreements (including the Transition Services Agreement) negotiated in the context of the Reorganization relate to, among other things, the allocation of assets, intellectual property, liabilities, rights and other obligations between Bit Digital and us. Arm's-length negotiations between us and an unaffiliated third party in another form of transaction, such as a buyer in a sale of a business, might have resulted in receiving more favorable terms from the unaffiliated third party.

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***WhiteFiber has no history of operating as an independent, public company, and its historical financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and may not be a reliable indicator of its future results.***

The historical information of WhiteFiber in this prospectus refers to its businesses as operated by and integrated with Bit Digital prior to WhiteFiber's October 2024 acquisition of Enovum. The historical financial information of WhiteFiber included in this prospectus is derived from the combined financial statements and accounting records of Bit Digital and WhiteFiber AI and its combined subsidiaries. Accordingly, the historical financial information included in this prospectus does not necessarily reflect the financial condition, results of operations and cash flows that WhiteFiber would have achieved as a separate, publicly traded company during the periods presented nor those that WhiteFiber will achieve in the future, primarily as a result of the factors described below:

● Prior to the Reorganization, WhiteFiber's business has been operated by Bit Digital as part of its broader corporate organization, rather than as an independent company, and Bit Digital or one of its affiliates performed certain corporate functions for WhiteFiber. WhiteFiber's historical financial results reflect allocations of corporate expenses from Bit Digital for such functions and are likely to be less than the expenses WhiteFiber would have incurred had it operated as a separate publicly traded company.

● Historically, WhiteFiber shared economies of scope and scale in costs, employees and vendor relationships. Although WhiteFiber will enter into a transition services agreement with Bit Digital prior to this offering (the "Transition Services Agreement"), these arrangements may not retain or fully capture the benefits that WhiteFiber has enjoyed as a result of being integrated with Bit Digital and may result in it paying higher charges than in the past for these services. This could have a material adverse effect on WhiteFiber's business, financial position, results of operations and cash flows following the completion of the distribution.

● Generally, WhiteFiber's working capital requirements and capital for its general corporate purposes, including acquisitions and capital expenditures, have in the past been satisfied as part of the corporatewide cash management policies of Bit Digital. Following the completion of this offering, WhiteFiber's results of operations and cash flows are likely to be more volatile, and it may need to obtain additional financing from banks, through public offerings or private placements of debt or equity securities, or a combination of both, strategic relationships or other arrangements, which may or may not be available and may be more costly.

● WhiteFiber's historical financial information does not reflect any debt that it may incur in the future.

● As a public company, WhiteFiber will become subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Sarbanes-Oxley Act and the Dodd-Frank Act and will be required to prepare its financial statements according to the rules and regulations required by the SEC. Complying with these requirements could result in significant costs and require WhiteFiber to divert substantial resources, including management time, from other activities.

Other significant changes may occur in WhiteFiber's cost structure, management, financing and business operations as a result of operating as a company separate from Bit Digital. For additional information about the past financial performance of WhiteFiber's business and the basis of presentation of the historical combined financial statements, see "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and the historical financial statements and accompanying notes included elsewhere in this prospectus.

***WhiteFiber or Bit Digital may fail to perform under the transition services agreement that is expected to be executed as part of the Reorganization or WhiteFiber may fail to have necessary systems and services in place when the transition services agreement expires.***

In connection with the Reorganization, it is expected that WhiteFiber and Bit Digital will enter into a transition services agreement (the "Transition Services Agreement"). The Transition Services Agreement will provide for the performance of certain services by Bit Digital for the benefit of WhiteFiber, or in some cases certain services provided by WhiteFiber for the benefit of Bit Digital, for a limited period of time after this offering. WhiteFiber will rely on Bit Digital to satisfy its obligations under this agreement. If Bit Digital is unable to satisfy its obligations under this agreement, WhiteFiber could incur operational difficulties or losses. If WhiteFiber does not have agreements with other providers of these services once certain transaction agreements expire or terminate, WhiteFiber may not be able to operate its business effectively, which may have a material adverse effect on its financial position, results of operations and cash flows.

***WhiteFiber's inability to resolve favorably any disputes that arise between WhiteFiber and Bit Digital with respect to their past and ongoing relationships including potential conflicts of interests among management may adversely affect WhiteFiber's operating results.***

After this offering, certain key management and directors of both Bit Digital and WhiteFiber will hold the same or similar positions in both companies. Those positions and their ownership of Bit Digital securities could create, or appear to create, potential conflicts of interest when WhiteFiber's management and directors and Bit Digital's management and directors face decisions that could have different implications for Bit Digital and WhiteFiber. Disputes may arise between WhiteFiber and Bit Digital in a number of areas relating to the various transaction agreements, including:

● Labor, tax, employee benefit, indemnification and other matters arising from WhiteFiber's separation from Bit Digital.

● Employee retention and recruiting.

● Business combinations involving WhiteFiber.

● And the nature, quality and pricing of services that WhiteFiber and Bit Digital have agreed to provide each other.

WhiteFiber may not be able to resolve potential conflicts, and even if it does, the resolution may be less favorable than if it were dealing with an unaffiliated party.

The agreements WhiteFiber enters into with Bit Digital may be amended upon agreement between the parties. While WhiteFiber is controlled by Bit Digital, it may not have the leverage to negotiate amendments to these agreements if required on terms as favorable to it as those it would negotiate with an unaffiliated third party.

***As an independent, publicly traded company, WhiteFiber may not enjoy the same benefits that its subsidiaries did as subsidiaries of Bit Digital.***

Historically, WhiteFiber's business has been operated through subsidiaries of Bit Digital, and Bit Digital performed substantially all the corporate functions for their operations, including managing financial and human resources systems, internal auditing, investor relations, treasury services, financial reporting, finance and tax administration, benefits administration, legal, and regulatory functions.

Following this offering, Bit Digital will provide support to WhiteFiber with respect to certain of these functions on a transitional basis. WhiteFiber will then need to replicate certain facilities, systems, infrastructure and personnel to which it will no longer have access after the distribution and will likely incur capital and other costs associated with developing and implementing its own support functions in these areas. Such costs could be material.

As an independent, publicly traded company, WhiteFiber may become more susceptible to market fluctuations and other adverse events than it would have been, were it still a part of Bit Digital. As part of Bit Digital, WhiteFiber has been able to enjoy certain benefits from Bit Digital's operating diversity and available capital for investments. As an independent, publicly traded company, WhiteFiber will not have similar operating diversity and may not have similar access to capital markets, which could have a material adverse effect on its financial position, results of operations and cash flows.

***WhiteFiber could experience temporary interruptions in business operations and incur additional costs as it further develops information technology infrastructure and transitions its data to its stand- alone systems.***

WhiteFiber is in the process of preparing information technology infrastructure and systems to support its critical business functions, including accounting and reporting, in order to replace many of the systems and functions Bit Digital has provided. WhiteFiber may experience temporary interruptions in business operations if it cannot transition effectively to its own stand-alone systems and functions, which could disrupt its business operations and have a material adverse effect on profitability. In addition, WhiteFiber's costs for the operation of these systems may be higher than the amounts reflected in the combined financial statements.

***The transfer to WhiteFiber of certain contracts, permits and other assets and rights may require the consents, approvals of, or provide other rights to, third parties. If such consents or approvals are not obtained, WhiteFiber may not be entitled to the full benefit of such contracts, permits and other assets and rights, which could increase its expenses or otherwise harm its business and financial performance.***

The Reorganization provides that certain contracts, permits and other assets and rights are to be transferred from Bit Digital or its subsidiaries to WhiteFiber or its subsidiaries in connection with the separation, such as [*specify a couple agreements*]. The transfer of certain of these contracts, permits and other assets and rights may require consents or approvals of third parties or provide other rights to third parties. In addition, in some circumstances, WhiteFiber and Bit Digital are joint beneficiaries of contracts, and WhiteFiber and Bit Digital may need the consents of third parties in order to split or separate the existing contracts or the relevant portion of the existing contracts to WhiteFiber or Bit Digital.

Some parties may use consent requirements or other rights to seek to terminate contracts or obtain more favorable contractual terms from WhiteFiber, which, for example, could take the form of price increases. This could require WhiteFiber to expend additional resources in order to obtain the services or assets previously provided under the contract, or require WhiteFiber to seek arrangements with new third parties or obtain letters of credit or other forms of credit support. If WhiteFiber is unable to obtain required consents or approvals, it may be unable to obtain the benefits, permits, assets and contractual commitments that are intended to be allocated to WhiteFiber as part of its separation from Bit Digital, and WhiteFiber may be required to seek alternative arrangements to obtain services and assets that may be more costly and/or of lower quality. The termination or modification of these contracts or permits or the failure to timely complete the transfer or separation of these contracts or permits could negatively affect WhiteFiber's business, financial condition, results of operations and cash flows.

**Regulatory Risks** 

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***Regulatory restrictions that target AI, including, but not limited to, export restrictions may have a material adverse impact on our intended operations.***

The increasing focus on the strategic importance of AI technologies has already resulted in regulatory restrictions that target products and services capable of enabling or facilitating AI, including semiconductors and related critical technologies, and may in the future result in additional restrictions impacting some or all of our service offerings. Such restrictions could include additional unilateral or multilateral export controls on certain products or technology, including, but not limited to, cloud service technologies. As geopolitical tensions have increased, semiconductors associated with AI, including GPUs and associated products, are increasingly the focus of export control restrictions implemented by the U.S. and its allies, and it is likely that additional unilateral or multilateral controls will be adopted. Such controls may be very broad in scope and application, require us to obtain export licenses from government regulators, prohibit us from exporting our services to any or all customers in one or more markets or could impose other conditions that limit our ability to provide cloud services from or serve demand abroad and could negatively and materially impact our business, revenue, and financial results. Export controls targeting GPUs and semiconductors associated with AI, could restrict our ability to export our technology, or services, even though competitors may not be subject to similar restrictions, creating a competitive disadvantage for us and negatively impacting our business and financial results. Increasing use of economic sanctions may also impact demand for our services, negatively impacting our business and financial results. Additional unilateral or multilateral controls are also likely to include deemed export control limitations that negatively impact the ability of our research and development teams to execute our roadmap or other objectives in a timely manner. Additional export restrictions may not only impact our ability to serve overseas markets, but also provoke responses from foreign governments, including China, that negatively impact our ability to provide our services to customers in all markets worldwide, which could also substantially reduce our revenue. See "*Changes in tariffs or import restrictions could have a material adverse effect on our business, financial condition and results of operations.*"

Management of the requirements of the supply chain is complicated and time consuming. Our results and competitive position may be harmed if we are restricted in offering our services, if customers purchase services from competitors, if customers develop their own cloud services, if we are unable to provide contractual warranty or other extended service obligations.

***Our cloud services business is subject to complex and evolving U.S. and foreign laws and regulations regarding AI, machine learning, and automated decision making.***

In recent years the use of machine learning, AI and automated decision making, has come under increased regulatory scrutiny, and governments and regulators in the United States, European Union, and other places have announced the need for greater regulation regarding the use of machine learning and AI generally. New laws, guidance, and decisions in this area may limit WhiteFiber's cloud services business, or require the Company to make changes to its clouds service technology and infrastructure and our operations that may decrease our operational efficiency, result in an increase to operating costs and/or hinder our ability to provide or improve our cloud services.

For example, certain global privacy laws regulate the use of automated decision making and may require that the existence of automated decision making be disclosed to the data subject with a meaningful explanation of the logic used in such decision making in certain circumstances, and that safeguards must be implemented to safeguard individual rights, including the right to obtain human intervention and to contest any decision. Other global privacy laws allow individuals the right to opt out of certain automated processing of personal data and create other requirements that impact automated decision-making. At the federal level, the scope and extent of regulation of AI is uncertain, but the National Institute of Standards and Technology issued the NIST-AI-600-1, AI Risk Management Framework: Generative Artificial Intelligence Profile which will likely remain a standard that regulators may consider for determining whether companies have adequate assessed the risk of use of AI.

A number of states have issued or proposed laws that require developers and deployers of high risk AI tools and systems to conduct risk assessments and take steps to avoid algorithmic discrimination. In addition, these laws provide consumers with the right to pre-use notice and certain rights to opt-out of use of such tools for certain kinds of automated decisions and to seek human review for adverse decisions. These laws could impose additional obligations on us to comply with such requirements and limit the Company's ability to use AI and automated decision making. Violations of such laws could expose the Company to fines and sanctions and consumer class actions.

In the European Union, the EU AI Act establishes a comprehensive, risk-based governance framework for AI in the EU market. The EU AI Act entered in force on August 1, 2024, and the majority of the substantive requirements will apply two years later (beginning 2026). The EU AI Act will apply to companies that develop, use and/or provide AI in the European Union and includes requirements around transparency, conformity assessments and monitoring, risk assessments, human oversight, security, accuracy, general purpose AI and foundation models, and proposes fines for breach of up to 7% of worldwide annual turnover (revenue). Additionally, in September of 2022, the European Commission proposed two Directives seeking to establish a harmonized civil liability regime for AI in the European Union, in order to facilitate civil claims in respect of harm caused by AI and to include AI-enabled products within the scope of the European Union's existing strict liability regime. Once fully applicable, the EU AI Act will have a material impact on the way AI is regulated in the European Union, and together with developing guidance and/or decisions in this area, may affect our use of AI and our ability to provide, improve, or commercialize our cloud services, and could require additional compliance measures and changes to our operations and processes.

Moreover, the protectability and ownership of intellectual property, including patent and copyright, resulting from the use of AI technologies has not been fully addressed by courts or laws or regulations. To the extent we use AI technologies to generate or develop other technology, we may have difficulty enforcing intellectual property rights in other such technology. In addition, the use or adoption of AI technologies into our offerings may result in exposure to claims of copyright infringement or other intellectual property misappropriation based on the inputs or outputs of such systems. As the legal and regulatory framework for AI and automated decision making evolves, we may not always be able to anticipate how to respond to these laws or regulations, and compliance may adversely impact our operations and involve significant expenditure and resources. Any failure by us to comply may result in significant liability, potential increases in civil claims against us, negative publicity, an erosion of trust, and/or increased regulation and could materially adversely affect our business, results of operations, and financial condition.

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

Our customers' businesses are subject to extensive laws, rules, regulations, policies and legal and regulatory guidance, including those governing securities, commodities, exchange and transfer, data governance, data protection, cybersecurity and tax. Many of these legal and regulatory regimes were adopted prior to the advent of the Internet, mobile technologies, AI and related technologies, cloud services and data center operations. As a result, they do not contemplate or address unique issues associated with AI, are subject to significant uncertainty, and vary widely across U.S., Iceland and Canada. These legal and regulatory regimes, including the laws, rules and regulations thereunder, evolve frequently and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another.

Moreover, the complexity and evolving nature of our business and the significant uncertainty surrounding the regulation of AI, 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 financial condition.

Ongoing and future regulatory actions, such as controls on the export of products and technology for AI uses, could effectively prevent our customers' 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 financial condition.

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***We are subject to governmental regulation and other legal obligations related to data privacy, data protection and information security. If we are unable to comply with these, we may be subject to governmental enforcement actions, litigation, fines and penalties or adverse publicity.***

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We collect and process data, including personal, financial and confidential information about individuals, including our employees and business partners; however, not of any customers or other third parties. The collection, use and processing of such data about individuals are governed by data privacy laws and regulations enacted in the U.S. (federal and state), and other jurisdictions around the world. These data privacy laws and regulations are complex, continue to evolve, and on occasion may be inconsistent between jurisdictions leading to uncertainty in interpreting such laws and it is possible that these laws, regulations and requirements may be interpreted and applied in a manner that is inconsistent with our existing information processing practices, and many of these laws are significantly litigated and/or subject to regulatory enforcement. The implication of this includes that various federal, state and foreign legislative or regulatory bodies may enact or adopt new or additional laws and regulations concerning data privacy, data retention, data transfer, and data protection. Such laws may continue to restrict or dictate how we collect, maintain, combine and disseminate information and could have a material adverse effect on our business, results of operations, financial condition and prospects.

In the United States, there are numerous federal and state laws and regulations that could apply to our operations or the operations of our partners, including data breach notification laws, financial information and other data privacy laws, and consumer protection laws and regulations (e.g., Section 5 of the FTC Act), that govern the collection, use, disclosure, and protection of personal information.

For example, California has enacted the California Consumer Privacy Act ("CCPA") and the California Privacy Rights Act ("CPRA"), which, among other things, allows California consumers to request that certain companies disclose the types of personal information collected by such companies, to correct that information, to delete that information and to opt-out the sale or sharing of personal information for cross-context behavioral advertising. the California Privacy Protection Agency ("CPPA") has proposed new regulations to require companies to conduct risk assessments, annual cybersecurity audits and set up notice and opt-out and access procedures for the use of automated decision-making technology. These proposed new requirements could increase our costs of compliance and impact our operations and the products and services we offer.

In addition, Iowa, Delaware, Maine, Virginia, Colorado, Utah, Oregon, Montana, Nebraska, New Hampshire, New Jersey, Texas, Utah and Connecticut enacted privacy and data protection laws in recent years that are currently in effect and grant similar rights and impose similar obligations as the CCPA. New privacy laws enacted in Maryland, Minnesota, Rhode Island, and Tennessee will take effect over the next couple years. Other states in the U.S. are also separately proposing laws to regulate privacy and security of personal data. Our failure, and/or the failure by the various third party vendors and service providers with which we do business, to comply with applicable privacy policies or federal or state laws or changes in applicable laws and regulations, or any compromise of security that results in the unauthorized release of personal information or other user data could damage our reputation and the reputation of our third party vendors and service providers, discourage potential users from trying their products and services and/or result in fines and/or proceedings by governmental agencies and/or consumers, any one or all of which could adversely affect our business, financial condition and results of operations and, as a result, our company. In addition, we, our subsidiaries or our business affiliates may not have adequate insurance coverage to compensate for losses.

Foreign data privacy laws, such as the General Data Protection Regulation ("GDPR") in the European Union and the United Kingdom Data Protection Act ("UK GDPR") impose data privacy and security requirements that may impact our ability to collect and process personal information of residents of the EU and the UK. The transfer of personal information from such jurisdictions may be subject to additional restrictions and require the use of transfer mechanisms recognized by GDPR and UK GDPR, such as the use of Standard Contractual Clauses, which impose numerous obligations on data importers and exporters. Violations of the GDPR or UK GDPR could impose us to fines of up to €20 million, or up to 4% of the annual worldwide turnover of the preceding financial year, whichever is greater.

***Existing and increasing legal and regulatory requirements could adversely affect our results of operations.***

We are subject to a wide range of laws, regulations, and legal requirements in the U.S. and globally, including those that may apply to our products and online services offerings, and those that impose requirements related to user privacy, data security, telecommunications, data storage and protection, advertising, and online content. Laws in several jurisdictions, including EU Member State laws under the European Electronic Communications Code, increasingly define certain of our services as regulated telecommunications services. This trend may continue and will result in these offerings being subjected to additional data protection, security, law enforcement surveillance, and other obligations. Regulators and private litigants may assert that our collection, use, and management of customer data and other information is inconsistent with their laws and regulations, including laws that apply to the tracking of users via technology such as cookies. New environmental, social, and governance laws and regulations are expanding mandatory disclosure, reporting, and diligence requirements. Legislative or regulatory action relating to cybersecurity requirements may increase the costs to develop, implement, or secure our products and services. Compliance with evolving digital accessibility laws and standards will require engineering and is important to our efforts to empower all people and organizations to achieve more. Legislative and regulatory action is emerging in the areas of AI and content moderation, which could increase costs or restrict opportunity. For example, in the EU, an AI Act has entered into force, and may entail increased costs or decreased opportunities for the operation of our AI services in the European market. See "*Our cloud services business is subject to complex and evolving U.S. and foreign laws and regulations regarding AI, machine learning, and automated decision making*" risk factor above.

***We are subject to extensive environmental, health and safety laws and regulations that may expose us to significant liabilities for penalties, damages or costs of remediation or compliance.***

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Our operations and properties are subject to extensive laws and regulations governing occupational health and safety, the discharge of pollutants into the environment or otherwise relating to health, safety and environmental protection requirements, laws and regulations. These laws and regulations can increase capital, operating and other costs; cause delays as a result of litigation and administrative proceedings; and create environmental compliance, remediation, containment, monitoring and reporting obligations. Environmental laws and regulations can also require WhiteFiber to install pollution control equipment at facilities where it operates, and correct environmental hazards, including payment of all or part of the cost to remediate sites where activities of other parties, caused environmental contamination. These laws and regulations may impose numerous obligations that are applicable to our operations, including 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; imposing specific health and safety standards addressing worker protection; and imposition of significant liabilities for pollution resulting from our operations, 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 that could have a material adverse effect on our 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 personal injury and property damage allegedly caused by noise or the release of hazardous substances into the environment.

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 regulations that result in increased compliance costs or additional operating restrictions could have a material adverse effect on our financial position, results of operations and cash flows.

***Failure to comply with anti-corruption and anti-money laundering laws, including the Foreign Corrupt Practices Act (the "FCPA") and similar laws associated with our activities outside of the United States, could subject us to penalties and other adverse consequences.***

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We operate an international business and may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities. We are subject to the FCPA, and other applicable anti-corruption and anti-money laundering laws in certain countries in which we conduct activities. The FCPA prohibits providing, offering, promising, or authorizing, directly or indirectly, anything of value to government officials, political parties, or political candidates for the purpose of obtaining or retaining business or securing any improper business advantage. In addition, U.S. public companies are required to maintain records that accurately and fairly represent their transactions and have an adequate system of internal accounting controls.

In many foreign countries, including countries in which we may conduct business, it may be a local custom that businesses engage in practices that are prohibited by the FCPA, or other applicable laws and regulations. We face significant risks if we or any of our directors, officers, employees, contractors, agents or other partners or representatives fail to comply with these laws and governmental authorities in the United States and elsewhere could seek to impose substantial civil and/or criminal fines and penalties which could have a material adverse effect on our business, reputation, operating results, prospects and financial condition.

Any violation of the FCPA, other applicable anti-corruption laws, or anti-money laundering laws could result in whistleblower complaints, adverse media coverage, investigations, loss of export privileges, severe criminal or civil sanctions and, in the case of the FCPA, suspension or debarment from U.S. government contracts, any of which could have a materially adverse effect on our reputation, business, operating results, prospects and financial condition. In addition, responding to any enforcement action or internal investigation related to alleged misconduct may result in a significant diversion of management's attention and resources and significant defense costs and other professional fees.

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***Changes in tax law may negatively affect WhiteFiber's business.***

Changes to federal, state, local and foreign tax laws have the ability to benefit or adversely affect WhiteFiber's earnings and customer costs. Significant changes to corporate tax rates could result in the impairment of deferred tax assets that are established based on existing law at the time of deferral. A number of factors may increase WhiteFiber's future effective income tax rate, including:

● Governmental authorities increasing taxes or eliminating deductions, particularly the depletion deduction.

● The jurisdictions in which earnings are taxed.

● The resolution of issues arising from tax audits with various tax authorities.

● Changes in the valuation of our deferred tax assets and liabilities.

● Adjustments to estimated taxes upon finalization of various tax returns.

● Changes in available tax credits.

● Changes in stock-based compensation.

● Other changes in tax laws; or

● The interpretation of tax laws and/or administrative practices.

***Our business may be adversely affected by future changes in the European Union's regulations related to AI, which could be reflected in Icelandic and European Union countries' domestic laws and regulations.***

While no current Icelandic legislation directly impacts colocation operations, Iceland, being a member of the European Economic Area, is likely to be influenced by forthcoming European Union acts such as the Artificial Intelligence Act and the AI Liability Directive. These acts may shape the future regulatory landscapes in Iceland and lead the Icelandic government to adopt such regulations domestically.

The potential adoption of said AI regulatory framework could introduce new compliance requirements for WhiteFiber data centers, as well as other legal and regulatory obligations, impacting operational practices and liability considerations for the Company's WhiteFiber data centers. This could ultimately adversely affect our Company's business and financial results.

***We incur significant costs and demands upon management and accounting and finance resources as a result of complying with the laws and regulations affecting public companies; if we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements and otherwise make timely and accurate public disclosure could be impaired, which could harm our operating results, our ability to operate our business and our reputation.***

As a public company, WhiteFiber will become subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act and the Dodd-Frank Act and will be required to prepare its financial statements according to the rules and regulations required by the SEC. In addition, following the effectiveness of the registration statement of which the prospectus forms a part, the Exchange Act requires that WhiteFiber file annual, quarterly and current reports. WhiteFiber's failure to prepare and disclose this information in a timely manner or to otherwise comply with applicable law could subject it to penalties under federal securities laws, expose it to lawsuits and restrict its ability to access financing. In addition, following the effectiveness of the registration statement of which the prospectus forms a part, the Sarbanes-Oxley Act requires that, among other things, WhiteFiber establish and maintain effective internal controls and procedures for financial reporting and disclosure purposes. Internal control over financial reporting is complex and may be revised over time to adapt to changes in WhiteFiber's business, or changes in applicable accounting rules. WhiteFiber cannot assure you that its internal control over financial reporting will be effective in the future or that a material weakness will not be discovered with respect to a prior period for which it had previously believed that internal controls were effective. If WhiteFiber is not able to maintain or document effective internal control over financial reporting, its independent registered public accounting firm will not be able to certify as to the effectiveness of its internal control over financial reporting. While WhiteFiber AI has been adhering to these laws and regulations as a subsidiary of Bit Digital, after this offering it will need to demonstrate its ability to manage its compliance with these corporate governance laws and regulations as an independent, public company.

Matters affecting WhiteFiber's internal controls may cause it to be unable to report its financial information on a timely basis, or may cause it to restate previously issued financial information, and thereby subject WhiteFiber to adverse regulatory consequences, including sanctions or investigations by the SEC, or violations of applicable stock exchange listing rules. There could also be a negative reaction in the financial markets due to a loss of investor confidence in WhiteFiber and the reliability of its financial statements. Confidence in the reliability of WhiteFiber's financial statements is also likely to suffer if it or its independent registered public accounting firm reports a material weakness in its internal control over financial reporting. This could have a material and adverse effect on WhiteFiber by, for example, leading to a decline in the share price and impairing its ability to raise additional capital.

**Risks Involving Intellectual Property** 

***We use certain open source technology in our business. We may face claims from third parties claiming ownership of, or demanding the release of, the technology and any other intellectual property that we developed using or derived from such open-source technology.***

We utilize a combination of open-source and licensed third-party technologies in the development and operation of our cloud services. While open-source technologies enable rapid development and cost efficiencies, they also pose potential risks, such as security vulnerabilities, lack of long-term support, and legal risks related to licensing terms. Similarly, reliance on licensed third-party technologies may expose us to risks associated with changes in licensing terms, costs, or discontinuation of the licensed products.

We intend to continue to use open-source technology in the future. There is a risk that open-source technology licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to offer our products. By the terms of certain open source licenses, if we combine our proprietary software with open source software in a certain manner, we could be required to release the source code of our proprietary software and make our proprietary software available under open source licenses. Open source licensors may also decide to change the conditions on which they make their open-source technology available for our use. Additionally, we may face claims from third parties claiming ownership of, or demanding the public release or free license of, the technology and any other intellectual property that it developed using or derived from such open source technology. The terms of many open source licenses have not been interpreted by United States courts. There is a risk that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to commercialize our services. These claims could result in litigation and could require that we make our technology freely available, purchase a costly license or cease offering the implicated products or services unless and until we can re-engineer them to avoid infringement. This re-engineering process could require significant technology and product development resources, and we may not be able to complete the process successfully. Failure to adequately manage these risks could result in operational disruptions, legal liabilities, and adverse impacts on our business, results of operations, and financial condition

***Impact of advancements in AI on demand for AI and WhiteFiber data centers may reduce the need for HPCs and AI-specific data center infrastructure, which could have an adverse effect on our business, results of operations, and financial condition.***

The AI industry is rapidly evolving, with continuous improvements in algorithms, software efficiencies, and hardware capabilities. Emerging AI technologies, such as demonstrated by DeepSeek, may allow for complex AI operations to be executed with significantly less computing power than is currently required. This reduction in computational intensity could decrease the demand for specialized computing and HPC data center services. If AI developers are able to achieve the same or better performance outcomes with more energy-efficient, cost-effective, or less resource-intensive technologies, they may adjust their need for large-scale, high capacity data center solutions. This shift could have an adverse effect on our business, results of operations, and financial condition. We continuously monitor industry trends and invest in innovation to mitigate these risks. However, there is no assurance that we will be able to anticipate or respond effectively to such changes, which could have an adverse effect on our business, results of operations, and financial condition.

***We rely upon licenses of third-party intellectual property rights and may be unable to protect our software code.***

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We actively use specific hardware and software for our cloud services and colocation data center operations. In certain cases, source code and other software assets may be subject to an open source license, as much technology development underway in this sector is open source. For these works, the Company intends to adhere to the terms of any license agreements that may be in place.

We do not currently own, and do not have any current plans to seek, any patents in connection with our existing and planned operations. We rely upon trade secrets, trademarks, service marks, trade names, copyrights and other intellectual property rights and expect to license the use of intellectual property rights owned and controlled by others. In addition, we have developed and may further develop certain software applications for purposes of our operations. Our open source licenses may not afford us the protection we need to protect our intellectual property.

***Our internal systems rely on software that is highly technical, and, if it contains undetected errors, our business could be adversely affected.***

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Our internal systems rely on software that is highly technical and complex. In addition, our internal systems depend on the ability of such software to store, retrieve, process and manage immense amounts of data. The software on which we rely has contained, and may now or in the future contain, undetected errors or bugs. Some errors may only be discovered after the code has been released for external or internal use. Any errors, bugs or defects discovered in the software on which we rely could result in harm to our reputation, or liability for damages, any of which could adversely affect our business, results of operations and financial conditions.

***We do not have any patents protecting our intellectual property and may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position.***

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We regard trademarks, domain names, know-how, proprietary technologies and similar intellectual property as critical to our success, and we rely on a combination of intellectual property laws and contractual arrangements, including confidentiality and non-compete agreements with our directors, officers and executive employees, to protect our proprietary rights. However, we do not have any non-compete agreements with our non-executive employees, nor do we have any patents protecting our intellectual property. Thus, we cannot assure you that any of our intellectual property rights would not be challenged, invalidated, circumvented or misappropriated, or such intellectual property will be sufficient to provide us with competitive advantages. In addition, because of the rapid pace of technological change in our industry, parts of our business rely on technologies developed or licensed by third parties, and we may not be able to obtain or continue to obtain licenses and technologies from these third parties on reasonable terms, or at all.

Preventing any unauthorized use of our intellectual property is difficult and costly and the steps we take may be inadequate to prevent the misappropriation of our intellectual property. In the event that we resort to litigation to enforce our intellectual property rights, such litigation could result in substantial costs and a diversion of our managerial and financial resources. We can provide no assurance that we will prevail in such litigation. In addition, our trade secrets may be leaked or otherwise become available to, or be independently discovered by, our competitors. To the extent that our employees or consultants use intellectual property owned by others in their work for us, disputes may arise as to the rights in related know-how and inventions. Any failure in protecting or enforcing our intellectual property rights could have a material adverse effect on our business, financial condition and results of operations.

***We may be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations.***

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We cannot be certain that our operations or any aspects of our business do not or will not infringe upon or otherwise violate trademarks, patents, copyrights, know-how or other intellectual property rights held by third parties. We may be, from time to time in the future, subject to legal proceedings and claims relating to the intellectual property rights of others. In addition, there may be third-party trademarks, patents, copyrights, know-how or other intellectual property rights that are infringed by our products, services or other aspects of our business without our awareness. Holders of such intellectual property rights may seek to enforce such intellectual property rights against us in China, the United States or other jurisdictions. If any third-party infringement claims are brought against us, we may be forced to divert management's time and other resources from our business and operations to defend against these claims, regardless of their merits. If we were found to have violated the intellectual property rights of others, we may be subject to liability for our infringement activities or may be prohibited from using such intellectual property, and we may incur licensing fees or be forced to develop alternatives of our own. Moreover, the intellectual property ownership and license rights, including copyright, surrounding AI technologies has not been fully addressed by courts or laws or regulations, and the use or adoption of AI technologies into our offerings may result in exposure to claims of copyright infringement or other intellectual property misappropriation. As a result, our business and results of operations may be materially and adversely affected.

***Issues in the development and use of AI may result in reputational or competitive harm or liability.***

We continue to incorporate AI into our cloud services and infrastructure, and we are also providing computing power for our customers to use in solutions that they build. We are providing supporting/computing power to clients, including our strategic partners who develop AI systems. We expect this integration of AI into our services and our business in general to grow. AI presents risks and challenges that could affect its adoption, and therefore our business. AI algorithms or training methodologies may be flawed or result inaccurate results or hallucinations. Datasets may be overbroad, insufficient, or contain biased information that could result in algorithmic discrimination. Content generated by AI systems may be offensive, illegal, or otherwise harmful or infringing of the rights of third parties. Ineffective or inadequate AI development or deployment practices by others could result in incidents that impair the acceptance of AI solutions or cause harm to individuals, customers, or society, or result in our services not working as intended. Human review of certain outputs or decisions may be required. As a result of these and other challenges associated with innovative technologies, our implementation of cloud services could subject us to competitive harm, regulatory action, legal liability, including under new proposed legislation regulating AI in jurisdictions, new applications of existing data protection, privacy, intellectual property, and other laws, and brand or reputational harm. Some AI scenarios present ethical issues or may have broad impacts on society. If we provide supporting/cloud services that have unintended consequences, unintended usage or customization by our customers and partners, or are controversial because of their impact on human rights, privacy, employment, or other social, economic, or political issues, we may experience brand or reputational harm, adversely affecting our business and combined financial statements as well as potential legal liability.

**Risks Related to WhiteFiber Ordinary Shares**

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***WhiteFiber cannot be certain that an active trading market for its Ordinary Shares will develop or be sustained after this offering, and following this offering its stock price may fluctuate significantly.***

A public market for WhiteFiber Ordinary Shares does not currently exist. WhiteFiber cannot guarantee that an active trading market will develop or be sustained for WhiteFiber Ordinary Shares after the distribution. Nor can it predict the prices at which WhiteFiber Ordinary Shares may trade after this offering. Similarly, WhiteFiber cannot predict the effect of this offering on the trading prices of Ordinary Shares of WhiteFiber or whether the combined market value of the WhiteFiber Ordinary Shares and Bit Digital Ordinary Shares will be less than, equal to or greater than the market value of shares of Bit Digital prior to this offering. Until the market has fully evaluated Bit Digital's remaining businesses without WhiteFiber's operating subsidiaries, the price at which WhiteFiber Ordinary Shares trade may fluctuate more significantly than might otherwise be typical, even with other market conditions, including general volatility, held constant. Similarly, until the market has fully evaluated WhiteFiber's business as a stand-alone entity, the prices at which WhiteFiber Ordinary Shares trade may fluctuate more significantly than might otherwise be typical, even with other market conditions, including general volatility, held constant. The increased volatility of WhiteFiber stock price following the distribution may have a material adverse effect on its business, financial condition and results of operations.

The market price of WhiteFiber Ordinary Shares may fluctuate significantly due to a number of factors, some of which may be beyond WhiteFiber's control, including:

● actual or anticipated fluctuations in our financial condition and operating results or those of companies perceived to be similar to us;

● actual or anticipated changes in our growth rate relative to our competitors;

● commercial success and market acceptance of AI infrastructure services;

● actions by our competitors, such as new business initiatives, acquisitions and divestitures;

● strategic transactions undertaken by us;

● additions or departures of key personnel;

● prevailing economic conditions;

● disputes concerning our intellectual property or other proprietary rights;

● sales of our Ordinary Shares by our officers, directors or significant shareholders;

● Other actions taken by our shareholders;

● future sales or issuances of equity or debt securities by us;

● business disruptions caused by earthquakes, tornadoes or other natural disasters;

● issuance of new or changed securities analysts' reports or recommendations regarding us;

● legal proceedings involving our company, our industry or both;

● changes in market valuations of companies similar to ours;

● the prospects of the industry in which we operate;

● speculation or reports by the press or investment community with respect to us or our industry in general; and

● the level of short interest in our shares.

In addition, the stock markets have recently and in the past experienced extreme volatility that has often been unrelated to the operating performance of issuers. These broad market fluctuations may negatively impact the price or liquidity of our Ordinary Shares. When the price of a share has been volatile, holders of that share have sometimes instituted securities class action litigation against the issuer.

● Actual or anticipated fluctuations in WhiteFiber's operating results.

● Declining operating revenues derived from WhiteFiber's core business.

● The operating and share price performance of comparable companies.

● Changes in WhiteFiber's shareholder base due to the Reorganization.

● Changes in the regulatory and legal environment in which WhiteFiber operates; and

● Market conditions in the AI industry, and the domestic and worldwide economy as a whole.

***We will be a "controlled company" as defined under the Nasdaq Listing Rules. Although we do not intend to rely on the "controlled company" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future and you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements.***

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Bit Digital, our parent company, will own approximately 80% of the voting power following this offering. Under the Nasdaq Listing Rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and is permitted to elect to rely, and may rely, on certain exemptions from corporate governance rules, including:

● an exemption from the rule that a majority of our board of directors must be independent directors;

● an exemption from the rule that requires a compensation committee comprised entirely of independent directors with a written charter addressing the committee's purpose and responsibilities; and

● an exemption from the rule that our director nominees must be selected or recommended solely by independent directors or by a nominations committee that consists entirely of independent directors with a written charter or board resolution addressing the nominations process.

Although we do not intend to rely on the "controlled company" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future. If we elect to rely on any of the "controlled company" exemptions, our investors will not have the same protections afforded to shareholders of companies that are subject to these corporate governance requirements. Our status as a controlled company could cause our Ordinary Shares to look less attractive to certain investors or otherwise harm the trading price of the Ordinary Shares.

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***We will be a "foreign private issuer" as defined under the Nasdaq Listing Rules. Although we do not intend to rely on the "foreign private issuer" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future and you will not have the same protections afforded to shareholders of companies that are subject to these corporate governance requirements.***

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Notwithstanding the fact that we have elected to file with the SEC as a domestic issuer, we believe that we will be deemed to be a foreign private issuer within the meaning of the rules under the Exchange Act. A foreign private issuer may elect to follow its home country practice in lieu of certain of Nasdaq's corporate governance rules, including the Nasdaq requirement to have a board comprised of a majority of independent directors, independent director oversight of executive compensation and nomination of directors, and other matters. Although we do not intend to rely on such exemptions, if we do in the future, you may not have the same protections afforded to shareholders of companies that are not foreign private issuers.

***We have a share structure that allows our directors with the consent of Bit Digital to issue preference shares that could be dilutive to your interests as an ordinary shareholder.***

WhiteFiber's authorized share capital is US$3,500,000 divided into 340,000,000 Ordinary Shares of par value US$0.01 each and 10,000,000 preference shares of par value US$0.01 each ("preference shares"). We currently have no preference shares issued and outstanding.

While we currently have no preference shares issued and outstanding, our directors have the discretion, with the consent of the Bit Digital, to issue preference shares without further shareholder approval. We will only require the consent of Bit Digital to issue preference shares for such period(s) of time that Bit Digital is a shareholder of the Company. In the event of any enhanced and preferential rights of our preference shares, the issuance of preference shares could be dilutive to the interests of holders of Ordinary Shares which could cause the market price of our Ordinary Shares could be adversely affected.

The terms of our preference shares are the same as our Ordinary Shares, except that before we issue any preference shares, our directors shall fix, by resolution or resolutions, the following provisions of such series of preference shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the designation of such series and the number of preference shares to constitute such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the shares of such series shall have voting rights, in addition to any voting rights provided by the Companies Act, and, if so, the terms of such voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if so, from what dates, the conditions and dates upon which such dividends shall be payable, the preference or relation which such dividends shall bear to the dividends payable on any shares of any other class of shares or any other series of preference shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whether the preference shares or such series shall be subject to redemption by the Company, and, if so, the times, prices and other conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the amount or amounts payable upon preference shares of such series upon, and the rights of the holders of such series in, a voluntary or involuntary liquidation, dissolution or winding up, or upon any distribution of the assets, of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether the preference shares of such series shall be subject to the operation of a retirement or sinking fund and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied to the purchase or redemption of the preference shares of such series for retirement or other corporate purposes and the terms and provisions relative to the operation of the retirement or sinking fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the preference shares of such series shall be convertible into, or exchangeable for, shares of any other class of shares or any other series of preference shares or any other securities and, if so, the price or prices or the rate or rates of conversion or exchange and the method, if any, of adjusting the same, and any other terms and conditions of conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the limitations and restrictions, if any, to be effective while any preference shares or such series are outstanding upon the payment of dividends or the making of other distributions on, and upon the purchase, redemption or other acquisition by the Company of, the existing shares or shares of any other class of shares or any other series of preference shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions or restrictions, if any, upon the creation of indebtedness of the Company or upon the issue of any additional shares, including additional shares of such series or of any other class of shares or any other series of preference shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other powers, preferences and relative, participating, optional and other special rights, and any qualifications, limitations and restrictions of any other class of shares or any other series of preference shares.

***Future issuances of preferred shares may concentrate voting control with holders of our preference shares, should we issue any, and the holders of such preference shares may not be aligned with the interests of our other shareholders.***

Our directors may determine the voting rights fixed to any series of preference shares issued. While we currently have no preference shares outstanding, our directors have the discretion to issue preference shares without shareholder approval. If preference shares with voting rights are issued in the future, this may cause the voting power of ordinary shareholders to be diluted.

Holders of preference shares, if any, may be able to take actions that are not in the best interests of us or our other shareholders. These corporate actions may be taken even if they are opposed by our other shareholders. This may also frustrate or prevent any attempts by our shareholders to replace or remove our current management by making it more difficult for shareholders to replace members of our board of directors, which is responsible for appointing the members of our management. In addition, this may make an acquisition of us, which may be beneficial to our shareholders, more difficult and may prevent attempts by our shareholders to replace or remove our current management and limit the market price of our Ordinary Shares. While we currently have no preference shares issued and outstanding, our directors have the discretion to issue preference shares without shareholder approval. If preference shares are issued in the future, this may cause the voting power of ordinary shareholders to be diluted and may discourage, prevent, or delay the consummation of recent change of control transactions that shareholders may consider favorable, including transactions in which shareholders might otherwise receive a premium for their shares.

As a result, the market price of our Ordinary Shares could be adversely affected if we issue preference shares.

***Bit Digital will have significant voting power to control significant corporate actions. Bit Digital's interests may be different from or conflict with our interests or the interests of our other shareholders.***

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Following this offering, Bit Digital will own approximately 80% of the voting power of our issued and outstanding Ordinary Shares. As a result of its ownership, Bit Digital will be able to control the vote over decisions regarding mergers, consolidations and the sale of all or substantially all of our assets, the appointment of directors, and other significant corporate actions. Bit Digital's interests may be different from or conflict with our interests or the interests of our other shareholders, and it may take action that is not in the best interests of our other shareholders. This concentration of voting power may discourage or delay our Company, which could deprive our shareholders of an opportunity to receive a premium for their shares as part of the sale of our Company and might reduce the market price of our Ordinary Shares. These actions may be taken even if they are opposed by our other shareholders.

***We may be unable to comply with the applicable continued listing requirements of the Nasdaq Capital Market, which may adversely impact our access to capital markets and may cause us to default under certain of our agreements.***

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Our Ordinary Shares are expected to be listed on the Nasdaq Capital Market following the completion of this offering. Nasdaq rules require us to maintain a minimum closing bid price of $1.00 per Ordinary Share, and maintain a minimum public float and liquidity. There can be no assurance we will continue to meet the minimum bid price requirements or any other Nasdaq requirements in the future, in which case our Ordinary Shares could be delisted.

In the event that our Ordinary Shares are delisted from Nasdaq and are not eligible for quotation or listing on another market or exchange, trading of our Ordinary Shares could be conducted only on the over-the-counter market or on an electronic bulletin board established for unlisted securities, such as the OTC. In such event, it could become more difficult to dispose of, or obtain accurate price quotations for, our Ordinary Shares, and there would likely also be a reduction in our coverage by securities analysts and the news media, which could cause the price of our Ordinary Shares to decline further. In addition, our ability to raise additional capital may be severely impacted if our shares are delisted from Nasdaq, which may negatively affect our business plans and the results of our operations.

***Our Ordinary Shares may be thinly traded, and you may be unable to sell at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.***

Our Ordinary Shares may become "thinly-traded", meaning that the number of persons interested in purchasing our Ordinary Shares at or near bid prices at any given time may be relatively small or non-existent. This situation may be attributable to a number of factors, including the fact that we may not be well-known to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that, even if we came to the attention of such persons, they tend to be risk-averse and might be reluctant to follow a relatively unknown company such as ours or purchase or recommend the purchase of our shares until such time as we became more seasoned. As a consequence, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. A broad or active public trading market for our Ordinary Shares may not develop or be sustained.

***You may face difficulties in protecting your interests as a shareholder, as Cayman Islands law provides different protections when compared to the laws of the United States and it may be difficult for a shareholder of ours to effect service of process or to enforce judgements obtained in the U.S. courts.***

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Our corporate affairs are governed by our A&R M&A and by the Companies Act and common law of the Cayman Islands. The rights of shareholders to take legal action against our directors and us, actions by minority shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from English common law. Decisions of the Privy Council (which is the final court of appeal for British overseas territories, such as the Cayman Islands) are binding on a court in the Cayman Islands. Decisions of the English courts, and particularly the Supreme Court of the United Kingdom and the Court of Appeal are generally of persuasive authority but are not binding on the courts of the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in the United States. In particular, the Cayman Islands has a different body of securities laws as compared to the United States and provide less protection to investors. In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action before the U.S. federal courts. The Cayman Islands courts are also unlikely (i) to recognize or enforce against us judgments of courts of the United States obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is currently no statutory enforcement or treaty between the United States and the Cayman Islands providing for enforcement of judgments obtained in the United States. The courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, given by a court of competent jurisdiction (the courts of the Cayman Islands will apply the rules of Cayman Islands private international law to determine whether the foreign court is a court of competent jurisdiction), and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands. Furthermore, it is uncertain that Cayman Islands courts would enforce: (1) judgments of U.S. courts obtained in actions against us or other persons that are predicated upon the civil liability provisions of the U.S. federal securities laws; or (2) original actions brought against us or other persons predicated upon the Securities Act. There is also uncertainty with regard to Cayman Islands law relating to whether a judgment obtained from the U.S. courts under civil liability provisions of the securities laws will be determined by the courts of the Cayman Islands as penal or punitive in nature. A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

As a result of all of the above, our shareholders may have more difficulty in protecting their interests through actions against us or our officers, directors or major shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.

***You may experience difficulties in effecting service of legal process and enforcing judgments against us and our management, and the ability of U.S. authorities to bring actions abroad.***

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Notwithstanding the fact that the Company may be deemed to be a foreign private issuer, subject to lesser registry standards, we have elected to file with the SEC as a domestic issuer. Currently, a substantial portion of our operations and personnel are located outside the United States, in Canada and Iceland. All three (3) members of our Board of Directors are nationals or residents of jurisdictions other than the United States, and a substantial portion, if not all, of their assets are located outside the United States. As a result, it may be difficult for a shareholder to effect service of process within the United States upon these persons, or to enforce against us or them judgments obtained in U.S. courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States. Foreign countries may have no arrangement for the reciprocal enforcement of judgments with the United States. As a result, recognition and enforcement in a foreign country of judgments of a court in the United States and any of the other jurisdictions in relation to any matter not subject to a binding arbitration provision may be difficult or impossible. Even if you sue successfully in a U.S. court or any other jurisdictions, you may not be able to collect on such judgment against us or our directors and officers. In addition, the SEC, the U.S. Department of Justice and other U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or officers outside the United States.

***We are not a Real Estate Investment Trust (REIT), and investors will not receive the potential tax or income benefits associated with REIT investments.***

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Unlike many companies that operate data centers, WhiteFiber Inc. is not organized or operated as a Real Estate Investment Trust (REIT). As a result, our investors will not benefit from certain features that are commonly associated with REIT investments. These include:

● No REIT-Level Tax Exemption: REITs generally do not pay federal corporate income tax on the portion of their income that is distributed to shareholders, so long as they meet certain requirements. Because WhiteFiber is not a REIT, we are subject to full corporate-level taxation, which may reduce the after-tax returns available to investors.

● No Mandatory Dividend Payouts: REITs are generally required to distribute at least 90% of their taxable income to shareholders annually. As a non-REIT entity, WhiteFiber has no such obligation and may choose to retain earnings for reinvestment, strategic uses, or other corporate purposes. This means investors may not receive regular or substantial cash distributions.

● Lack of REIT Disclosure Transparency: Public REITs are subject to specialized SEC disclosure obligations, including detailed reporting on real estate portfolios, property-level performance, and other asset-specific metrics. These enhanced disclosures are designed to help investors evaluate the underlying real estate exposure. Because WhiteFiber is not a REIT, it is not subject to these additional disclosure requirements, and investors may have comparatively less visibility into the valuation and performance of our data center assets.

Accordingly, an investment in WhiteFiber should not be viewed as a direct substitute for a REIT investment, particularly for those investors seeking tax-advantaged income or detailed real estate transparency.

***Potential of WhiteFiber Being Classified as a Passive Foreign Investment Company.***

Generally, if for any taxable year 75% or more of the Company's gross income is passive income, or at least 50% of the average quarterly value of the Company's assets are held for the production of, or produce, passive income, the Company would be characterized as a passive foreign investment company ("PFIC") for U.S. federal income tax purposes. The Company does not expect to be classified as a PFIC for the 2025 taxable year. However, PFIC status is determined annually, and whether the Company will be a PFIC for any future taxable year is uncertain. In addition, because there are uncertainties in the application of the relevant rules, it is possible that the Internal Revenue Service may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangible assets, each of which may result in us becoming a PFIC for the current or subsequent taxable years. If the Company is characterized as a PFIC, U.S. Holders (as defined in "*Certain Material United States Federal Income Tax Considerations*") of Ordinary Shares may suffer adverse tax consequences, including the treatment of gains realized on the sale of Ordinary Shares as ordinary income, rather than as capital gain, the loss of the preferential income tax rate applicable to dividends received on Ordinary Shares by individuals who are U.S. Holders, and the addition of interest charges to the tax on such gains and certain distributions. A U.S. Holder of a PFIC generally may mitigate these adverse U.S. federal income tax consequences by making a "Qualified Electing Fund" (QEF) election to a lesser extent, or a mark-to-market election. The Company may not provide the information necessary for a U.S. Holder to make a QEF election if the Company is classified as a PFIC for any year. See "*Certain Material United States Federal Income Tax Considerations – Passive Foreign Investment Company*" for further discussion.

***If securities or industry analysts do not publish research or publish misleading or unfavorable research about WhiteFiber's business, WhiteFiber's share price and trading volume could decline.***

The trading market for WhiteFiber Ordinary Shares will depend, in part, on the research and reports that securities or industry analysts publish about WhiteFiber or its business. WhiteFiber does not currently have and may never obtain research coverage for WhiteFiber Ordinary Shares. If there is no research coverage of WhiteFiber Ordinary Shares, the trading price for WhiteFiber Ordinary Shares may be negatively impacted. If WhiteFiber obtains research coverage for WhiteFiber Ordinary Shares and if one or more of the analysts downgrades its stock or publishes misleading or unfavorable research about its business, WhiteFiber's stock price would likely decline. If one or more of the analysts ceases coverage of WhiteFiber Ordinary Shares or fails to publish reports on WhiteFiber regularly, demand for WhiteFiber Ordinary Shares could decrease, which could cause WhiteFiber ordinary share price or trading volume to decline.

***Your percentage of ownership in WhiteFiber may be diluted in the future.***

In the future, your percentage ownership in WhiteFiber may be diluted because of equity awards that it will be granting to its directors, officers and employees or otherwise as a result of equity issuances for acquisitions or capital market transactions. WhiteFiber anticipates that its Compensation Committee will grant additional stock-based awards to its directors, officers and employees after the distribution. Such awards will have a dilutive effect on WhiteFiber's earnings per share, which could adversely affect the market price of shares of WhiteFiber. From time to time, WhiteFiber will issue additional stock-based awards to its employees under its employee benefits plans.

In addition, WhiteFiber's A&R M&A authorizes it to issue, with the approval of Bit Digital (for such period(s) of time that it is a shareholder of the Company), preference shares of par value US$0.01 in the capital of the Company, which have enhanced rights relative to Ordinary Shares, including with respect to dividends, and liquidation preferences. Accordingly, issuing preference shares could affect the value of WhiteFiber Ordinary Shares. See "*Description of WhiteFiber's Share Capital*."

***Investors in this offering will experience immediate and substantial dilution of $ per share.***

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Based on the assumed public offering price of $**** per share, and assuming the receipt of the estimated net proceeds of $**** million (after deducting underwriting discounts and commissions and estimated offering expenses and the application of such proceeds as described in "Use of Proceeds"), purchasers of our Ordinary Shares in this offering will experience an immediate and substantial dilution of $**** per share in the as adjusted net tangible book value per share of Ordinary Shares from the public offering price, and our pro forma as adjusted net tangible book value as of March 31, 2025 after giving effect to this offering would be approximately $**** million, or **$** per share. This dilution is due to, among other things, the Company's net tangible book value per share being less than the initial public offering price. See "*Dilution*."

***We do not expect to pay or declare dividends on our Ordinary Shares.***

The timing, declaration, amount and payment of any dividends following this offering will be within the discretion of WhiteFiber's board of directors, and will depend upon many factors, including WhiteFiber's financial condition, earnings, capital requirements of its operating subsidiaries, covenants associated with certain of WhiteFiber's potential debt service obligations, legal requirements, regulatory constraints, industry practice, ability to access capital markets, and other factors deemed relevant. Therefore, holders of our Ordinary Shares may not receive any return on their investment in our Ordinary Shares unless and until the value of such Ordinary Shares increases and if they are able to sell such Ordinary Shares, and there is no assurance that any of the foregoing will occur. Moreover, if WhiteFiber determines to pay any dividend in the future, there can be no assurance that it will continue to pay such dividends or the amount of such dividends. For more information, see the section entitled "*Dividend Policy*."

***We have broad discretion in the use of the net proceeds from this offering and may not use them effectively.***

Our management will have broad discretion in the application of the net proceeds from this offering and could use the proceeds in ways that investors may not agree. We expect to use the net proceeds to us from this offering to partially fund the lease or purchase of additional property on which to build additional WhiteFiber data centers, to construct those facilities, to enter into additional energy service agreements for each additional site, purchase GPUs, servers and other AI equipment, for potential acquisitions, partnerships and joint ventures, research and development, and to fund out working capital and general corporate purposes. The expected use of net proceeds of this offering represents our current intentions based upon our present plan and business conditions. The failure of management to apply these funds effectively could result in financial loses that could harm our business and cause the price of our Ordinary Shares to decline. We will require additional debt financing in order to fully accomplish the specified uses of the proceeds of this offering. We also may elect to raise additional capital opportunistically.

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***We are a smaller reporting company and an emerging growth company within the meaning of the Securities Act and may take advantage of certain reduced reporting requirements.***

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We are an "emerging growth company," as defined in the JOBS Act, and we may take advantage of certain exemptions from requirements applicable to other public companies that are not emerging growth companies including, most significantly, not being required to comply with the auditor attestation requirements of Section 404 for so long as we are an emerging growth company.

The JOBS Act also provides that an emerging growth company may delay the adoption of new or revised financial accounting standards that have different effective dates for public and private companies until such date that a private company is otherwise required to comply with such new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the extended transition period. As a result of this election, our future financial statements may not be comparable to other public companies that comply with the public company effective dates for these new or revised accounting standards.

We are also a "smaller reporting company" as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies so long as the market value of our voting and non-voting Ordinary Shares held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our Ordinary Shares held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter.

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements regarding us and our business strategies, market potential, future financial performance and other matters that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this prospectus, including statements regarding our strategy, future financial condition, future operations, plans, objectives of management, and expected market growth, are forward-looking statements .The words "believe," "expect," "estimate," "could," "should," "intend," "may," "might," "will," "target," "potential," "goal," "objective," "plan," "seek," "anticipate," "project" and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date the statements were made. The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. In particular, information included under "*Summary Historical and Pro Forma Combined Financial and Operating Data*" "*Risk Factors*," "*Capitalization*," "*Business*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," and other sections of this prospectus contain forward-looking statements. Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of WhiteFiber's management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. Whether any such forward-looking statements are in fact achieved will depend on future events, some of which are beyond WhiteFiber's control.

You should realize that if underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, our actual results and financial condition could vary materially from expectations and projections expressed or implied in our forward-looking statements. Risks and uncertainties include, but are not limited to: our ability to integrate the operations of Enovum and any hereafter acquired companies into our HPC Business segment; our ability to purchase GPUs on a timely basis to service our cloud service customers; supply chain disruptions may have a material adverse effect on the Company's performance; our failure to effectively manage our growth, strategic investments, combination, joint-ventures, acquisitions or alliances, which could disrupt our business; the loss of any member of our executive management team, capital markets and interest rate risks; significant customer concentration; our failure to innovate and provide cloud services to our customers and partners; the demand for data centers substantially decreases; volatility in the supply and price of power in the open markets, WhiteFiber has no history of operating as an independent public company; export restitution and tariffs, particularly with Canada concerning our supplies and operations; issues in the development and use of AI; regulations that target AI, and governmental regulations and other legal obligations related to data privacy, data protection and information security.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this prospectus primarily on our current expectations, estimates, forecasts and projections about future events and trends that we believe may affect our business, results of operations, financial condition and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this prospectus, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur at all. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those matters discussed under "*Risk Factors"* and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and elsewhere in this prospectus include factors, risks, trends and uncertainties that could cause actual results or events to differ materially from those anticipated. Additional risks and uncertainties of which we are unaware, or that we currently deem immaterial, also may become important factors that affect us. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this prospectus. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

All forward-looking statements made in this prospectus are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this prospectus, and WhiteFiber does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data.

**USE OF PROCEEDS**

We estimate that the net proceeds from the sale of  **** Ordinary Shares will be approximately $**** million, or approximately $**** million if the underwriters exercise in full their option to purchase additional Ordinary Shares, based on the assumed public offering price of $**** per share, the midpoint of the price range set forth on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We expect that we will use the net proceeds from this offering as follows: partially fund the lease or purchase of additional property on which to build additional WhiteFiber data centers; to construct those facilities; to enter into additional energy service agreements for each additional site; to purchase GPUs, servers and other AI equipment; for potential acquisitions, partnerships and joint ventures; research and development, and to fund our working capital and general corporate purposes.

In June 2025, we entered into credit facilities (the "Facility") with the Royal Bank of Canada ("RBC") in the aggregate amount of up to CAD $60 million (approximately USD $43.8 million). The Facility is with the Company's Enovum subsidiary to build out MTL-2 and is non-recourse to WhiteFiber and Bit Digital. The facility includes a USD $18.5 million non-revolving loan facility to refinance equipment costs and building improvements to build out the site; and a USD $19.6 million non-revolving real estate term loan facility to refinance our purchase of MTL-2. The interest rate of the real estate term loan facility will be determined at the time of borrowing, or a floating interest rate ranging from RBP plus 0.75% to Canadian Overnight Repo Rate Average plus 250 bps. We intend to utilize $8.0M immediately which will permit us to reallocate the net proceeds of this offering among the above-stated uses. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.*"

The expected use of net proceeds of this offering represents our current intentions based upon our present plan and business conditions. As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to be received upon the completion of this offering. The amounts and timing of our actual use of net proceeds will vary depending on numerous factors. As a result, management will have broad discretion in the application of the net proceeds, and investors will be relying on our judgment regarding the application of the net proceeds of this offering. We reserve the right to use of the net proceeds we receive in the offering in any manner we consider to be appropriate. Although we do not contemplate changes in the proposed use of proceeds, to the extent we find that adjustment is required for other uses by reason of existing business conditions, the use of proceeds may be adjusted. The actual use of the proceeds of this offering could differ materially from those outlined above as a result of several factors including those set forth under "*Risk Factors*" and elsewhere in this prospectus. We will require additional debt financing in order to fully accomplish the specified uses of the proceeds of this offering. We also may elect to raise additional capital opportunistically.

**DIVIDEND POLICY**

Subject to the provisions of the Companies Act and any rights attaching to any class or classes of shares under and in accordance with the A&R M&A:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) our shareholders may, by ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors.

Subject to the requirements of the Companies Act regarding the application of a company's share premium account and with the sanction of an ordinary resolution, dividends may also be declared and paid out of any share premium account. The directors when paying dividends to shareholders may make such payment either in cash or in specie.

Unless provided by the rights attached to a share, no dividend shall bear interest.

While we do not have any preference shares currently outstanding, should we decide to issue preference shares, our directors may determine to fix preferential dividend rights to such preference shares. Amongst other things, such preferential dividend rights may provide that holders of preference shares are entitled to cumulative dividends and/or dividends in preference to other classes or shares or series of preference shares.

We intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our share capital in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions, and other factors that our board of directors may deem relevant.

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and capitalization as of March 31, 2025:

● on an actual basis; and

● on an as adjusted basis to reflect the filing and effectiveness of our A&R M&A, the Bit Digital Issuance, the Reorganization and the sale and issuance by us of  **** ** Ordinary Shares in this offering at an assumed initial public offering price of **$** ** per share (which is the midpoint of the range set forth on the cover of this prospectus) as if this offering had occurred on March 31, 2025.

You should read this table together with the sections of this prospectus captioned "*Summary Historical and Pro Forma Combined Financial and Operating Data*," "*Use of Proceeds*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Description of WhiteFiber's Share Capital*" and our audited combined financial statements and related notes included elsewhere in this prospectus.

---

| | | |
|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Actual** | **As adjusted (1)** |
| **Assets** | | |
| Cash and cash equivalents | $9083232 |  |
| **Liabilities** |  |  |
| Debt, including current and long-term: |  |  |
| &nbsp;&nbsp;&nbsp;Total debt**(1)** |  |  |
| **Shareholder's Equity(2)** |  |  |
| Parent company net investment | 221122968 |  |
| Retained earnings | 1571729 |  |
| Accumulated other comprehensive loss | 2070164 |  |
| &nbsp;&nbsp;&nbsp;Total stockholder's equity | $230624533 |  |
| Total capitalization | $220624533 |  |

---

(1) The as adjusted total debt does not reflect the Company's credit facilities entered into on June 18, 2025, with the Royal Bank of Canada in the aggregate amount of up to approximately CAD $60 million (approximately USD $43.8 million). See *"Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources,"* below.

(2) The as adjusted number of issued and outstanding Ordinary Shares assumes  **** ** Ordinary Shares held by Bit Digital and  **** ** Ordinary Shares being sold to the public. In connection with the Contribution, White Fiber will issue  **** ** Ordinary Shares to Bit Digital (or up to  **** ** Ordinary Shares to Bit Digital, if the underwriters' over-allotment option is exercised in full, which may occur at any point during the 30 days after the consummation of this offering), such that Bit Digital will own approximately 80% of WhiteFiber's issued and outstanding Ordinary Shares upon the consummation of this offering.

**DILUTION**

If you invest in our Ordinary Shares in this offering your ownership interest will be immediately and substantially diluted to the extent of the difference between the initial public offering price per share of our Ordinary Shares and the pro forma as adjusted net tangible book value per share of our Ordinary Shares immediately after this offering. The difference between the public offering price per share of our Ordinary Shares and the pro forma net tangible book value per share after this offering constitutes the dilution to investors in this offering.

On a historical actual basis as of March 31, 2025, our net tangible book value was approximately $188.6 million, or approximately $ per share. Net tangible book value per share is determined by dividing our net tangible book value, which is our total tangible assets less total liabilities, by the number of outstanding Ordinary Shares.

On a pro forma as adjusted basis as of March 31, 2025, our net tangible book value would have been **$** million, or approximately $**** per share, after giving further effect to the filing of the A&R M&A, the Reorganization and the sale of the Ordinary Shares offered in this prospectus and the deduction of the underwriting discount and estimated offering expenses payable by us. The difference between the pro forma and pro forma as adjusted net tangible book value represents an immediate dilution of  **** % per share, or $**** , to new investors.

The following table illustrates the dilution to the new investors on a per-share basis:

---

| | |
|:---|:---|
| Assumed public offering price | $— |
| Historical actual net tangible book value as of March 31, 2025 | $— |
| Increase attributable to pro forma adjustment |  |
| Pro forma net tangible book value as of March 31, 2025 | $|
| Increase in pro forma net tangible book value attributable to new investors | $|
| Pro forma as adjusted net tangible book value after this offering | $|
| Dilution per share to new investors | $|

---

The dilution to new investors presented above excludes the effect of the issuance to Ms. Ichi Shih, Chair of the Company's Audit Committee of 40,000 Ordinary Shares, upon the commencement of trading of our Ordinary Shares on the Nasdaq Capital Market and (ii) the issuance of 12,000,000 Ordinary Shares reserved, but not subject to outstanding awards under our 2025 Omnibus Equity Incentive Plan.

The dilution information discussed above is illustrative only and may change based on the actual initial public offering price, the number of ordinary shares we sell, and other terms of this offering that will be determined at pricing. Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the estimated initial offering price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, the net proceeds that we receive from this offering by approximately $, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions payable by us. Similarly, each increase or decrease of 1.0 million in the number of Ordinary Shares offered by us would increase or decrease, as applicable, the net proceeds that we receive from this offering by approximately $, assuming the assumed initial public offering price remains the same and after deducting estimated underwriting discounts and commissions payable by us.

The following table sets forth purchase price information with respect to (i) Bit Digital, our parent company, for an aggregate of  **** Ordinary Shares; and (ii) new investors in this offering, after giving effect to the sale of the Ordinary Shares in this offering at the assumed public offering price of $**** per share:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | |
|  | **Amount** | **Percentage** | **Amount<br> (in thousands)** | **Percentage** |<br>**Average Price <br> per share** |
| Bit Digital |  | 80% | $— | $| $|
| New investors |  | 20% | $— | $| $|
| Total |  | 100% | $100% | $| $|

---

If the underwriters exercise in full the option to purchase additional Ordinary Shares to cover over-allotments, our existing shareholders would own  **** % and our new investors would own  **** % of the total number of Ordinary Shares outstanding after this offering.

To the extent that options are issued under our compensatory stock plans, or we issue additional Ordinary Shares in the future, there will be further dilution to investors participating in this offering.

**UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS**

*The unaudited condensed pro forma combined financial statements included in this document are presented for illustrative purposes only and do not purport to represent what WhiteFiber's financial position actually would have been had the Transactions occurred on the dates indicated or to project WhiteFiber's operating results for any future period.*

**Introduction**

The following unaudited pro forma condensed combined financial information is prepared in accordance with Article 11 of Regulation S-X, after giving effect to (i) the acquisition of Enovum Data Centers Corp. ("Enovum") on October 11, 2024, (the "Enovum acquisition"), (ii) the contemplated initial public offering (the "IPO") whereby WhiteFiber, currently a wholly-owned subsidiary of Bit Digital, will operate as a separate public company and sell approximately 20% of its pro forma shares outstanding, and (iii) the Facility with the Royal Bank of Canada (collectively with the Enovum acquisition and IPO, the "Transactions").

The unaudited pro forma condensed combined balance sheet has been prepared to reflect transaction accounting adjustments and financing adjustments related to the contemplated IPO and Facility as if they had been entered into as of March 31, 2025, based on currently available information.

The unaudited pro forma condensed combined statement of operations has been prepared to reflect transaction accounting adjustments, autonomous entity adjustments, and financing adjustments as if we had acquired Enovum and entered into the Facility with Royal Bank of Canada on January 1, 2024 and were already operating as a separate stand-alone entity from Bit Digital since January 1, 2024, specifically in connection with the following:

● The estimated effects of the Enovum acquisition for the year ended December 31, 2024; and

● Incremental costs expected to be incurred as an autonomous entity and the potential changes in shares outstanding related to the IPO under pro forma earnings per share for the three months ended March 31, 2025, and for the year ended December 31, 2024; and

● The estimated effects of the Facility to fund working capital requirements and other general corporate purposes in connection with the Transactions, including the refinancing of building improvements and purchase of MTL-2, for the three months ended March 31, 2025, and for the year ended December 31, 2024.

The unaudited pro forma condensed combined balance sheet as of March 31, 2025 only reflects transaction accounting adjustments and financing adjustments related to the IPO and Facility because the Enovum acquisition is already consolidated and reflected in our historical unaudited balance sheet for the same period. The unaudited pro forma condensed combined balance sheet as of March 31, 2025, was derived from, and should be read in conjunction with, WhiteFiber's financial statements and related notes as of and for the three months ended March 31, 2025, included elsewhere in this registration statement.

The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025 only reflects autonomous entity adjustments and financing adjustments, because the Enovum acquisition is already consolidated and reflected in our historical unaudited statement of operations for the same period. The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025, was derived from, and should be read in conjunction with, WhiteFiber's financial statements and related notes as of and for the three months ended March 31, 2025, included elsewhere in this registration statement.

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024, combines the audited historical consolidated statement of operations of WhiteFiber for the year ended December 31, 2024, the audited pre-acquisition historical consolidated statement of operations of Enovum for the nine months ended September 30, 2024, and the unaudited historical consolidated statement of operations for the stub period of October 1, 2024, to October 11, 2024, of Enovum derived from Enovum's books and records, as if the Transactions occurred on January 1, 2024.

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 was derived from, and should be read in conjunction with the following historical financial statements and the accompanying notes:

● WhiteFiber's audited financial statements and related notes for the year ended December 31, 2024, included elsewhere in this registration statement; and

● Enovum's audited financial statements and related notes for the nine months ended September 30, 2024, included elsewhere in this registration statement.

The unaudited pro forma condensed combined financial information should also be read together with other financial information included elsewhere or incorporated by reference in this registration statement.

The transaction accounting adjustments, autonomous entity adjustments, and financing adjustments reflecting the consummation of the Transactions are based on currently available information and certain assumptions and methodologies that WhiteFiber believes are reasonable under the circumstances. The unaudited pro forma condensed combined financial information is presented for informational purposes only. The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X of the SEC and is not necessarily indicative of what the results of operations would have been had we completed the Transactions as of the dates indicated, nor do they purport to project the future financial position or operating results of the combined company. The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and does not reflect the costs of any integration activities or cost savings or synergies that may be achieved as a result of the Transactions.

**Other transactions**

In connection with the Transactions, there will be a reorganization whereby 100% of the capital shares, business and associated assets and liabilities of WhiteFiber AI will be transferred by Bit Digital to WhiteFiber, (the "Reorganization"). The Reorganization will be accounted for as a common control transaction pursuant to ASC 805-50. The historical financial information of WhiteFiber presented in the unaudited pro forma condensed combined statement of operations reflects the Reorganization.

**UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET**

**As of March 31, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **White Fiber<br> (Historical)** | **Transaction Accounting Adjustments** | **Notes** | **Financing Adjustments** | **Notes** | **Pro Forma** |
| **ASSETS** | | |  | |  | |
| **Current assets** | | |  | |  | |
| Cash and cash equivalents | $9083232 |  | &nbsp;&nbsp;5(a) | $(190008) | &nbsp;&nbsp;6(a) | $25574593 |
|  |  | (2760834) | &nbsp;&nbsp;5(a) | 19442203 | &nbsp;&nbsp;6(b) |  |
| Restricted cash | 3732792 |  |  |  |  | 3732792 |
| Accounts receivable | 2531188 |  |  |  |  | 2531188 |
| Net investment in lease - current | 2632603 |  |  |  |  | 2632603 |
| Other current assets | 33447655 | (317703) | &nbsp;&nbsp;5(a) | 3037314 | &nbsp;&nbsp;6(c) | 36167266 |
| **Total current assets** | $**51427470** | $**(3078537)** |  | $**22289509** |  | $**70638442** |
| **Non-current assets** |  |  |  |  |  |  |
| Deposits for property and equipment | 4273861 |  |  |  |  | 4273861 |
| Property, plant, and equipment, net | 166485653 |  |  |  |  | 166485653 |
| Operating lease right-of-use assets | 14753145 |  |  |  |  | 14753145 |
| Net investment in lease - non-current | 6087814 |  |  |  |  | 6087814 |
| Investment securities | 1000000 |  |  |  |  | 1000000 |
| Deferred tax asset | 103998 |  |  |  |  | 103998 |
| Intangible Assets | 12762627 |  |  |  |  | 12762627 |
| Goodwill | 19243410 |  |  |  |  | 19243410 |
| Other non-current assets | 3639420 |  |  | 190008 | &nbsp;&nbsp;6(a) | 19016000 |
|  |  |  |  | 15186572 | &nbsp;&nbsp;6(c) |  |
| **Total non-current assets** | $**228349928** | $**-** |  | $**15376580** |  | $**243726508** |
| **Total assets** | $**279777398** | $**(3078537)** |  | $**37666089** |  | $**314364950** |
| **LIABILITIES AND EQUITY** |  |  |  |  |  |  |
| **Current liabilities** |  |  |  |  |  |  |
| Accounts payable | 1328847 |  |  |  |  | 1328847 |
| Current portion of deferred revenue | 21175064 |  |  |  |  | 21175064 |
| Current portion of operating lease liability | 4869747 |  |  |  |  | 4869747 |
| Income tax payable | 984940 |  |  |  |  | 984940 |
| Other payables and accrued liabilities | 17030801 |  |  | 1761898 | &nbsp;&nbsp;6(c) | 18792699 |
| **Total current liabilities** | $**45389399** | $**-** |  | $**1761898** |  | $**47151297** |
| **Non-current liabilities** |  |  |  |  |  |  |
| Non-current portion of operating lease liability | 8759750 |  |  |  |  | 8759750 |
| Non-current portion of deferred revenue | 72963 |  |  |  |  | 72963 |
| Deferred tax liability | 4341724 |  |  |  |  | 4341724 |
| Other long-term liabilities | 589029 |  |  | 19442203 | &nbsp;&nbsp;6(b) | 36493220 |
|  |  |  |  | 16461988 | &nbsp;&nbsp;6(c) |  |
| **Total non-current liabilities** | $**13763466** | $**-** |  | $**35904191** |  | $**49667657** |
| **Total liabilities** | $**59152865** | $**-** |  | $**37666089** |  | $**96818954** |
| **Total equity** |  |  |  |  |  |  |
| Parent company net investment | 221122968 | (221122968) | &nbsp;&nbsp;5(b) |  |  |  |
| Ordinary shares ($.01 par value; authorized 340,000,000 shares) |  |  | &nbsp;&nbsp;5(a) |  |  |  |
| Additional paid-in capital |  |  | &nbsp;&nbsp;5(a) |  |  | 218044431 |
|  |  | (3078537) | &nbsp;&nbsp;5(a) |  |  |  |
|  |  | 221122968 | &nbsp;&nbsp;5(b) |  |  |  |
| Retained Earnings | 1571729 |  |  |  |  | 1571729 |
| Accumulated other comprehensive loss | (2070164) |  |  |  |  | (2070164) |
| Total equity | $**220624533** | $**(3078537)** |  | **-** |  | $**217545996** |
| **Total liabilities and equity** | $**279777398** | $**(3078537)** |  | $**37666089** |  | $**314364950** |

---

See accompanying notes to unaudited pro forma condensed combined financial information.

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS**

**For the Three Months Ended March 31, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **White Fiber<br> (Historical)** | **Autonomous Entity Adjustments** | **Notes** | **Financing Adjustments** | **Notes** | **Pro Forma** |
| **Revenue** | $**16767516** | $**-** |  |  |  | $**16767516** |
| **Operating costs and expenses:** |  |  |  |  |  |  |
| Cost of revenue (exclusive of depreciation shown below) | (6650677) |  |  |  |  | (6650677) |
| Depreciation and amortization expenses | (3829644) |  |  | (362001) | 8(a) | (4206742) |
|  |  |  |  | (15097) | 8(b) |  |
| General and administrative expenses | (4243819) | (18088) | 7(a) |  |  | (4257297) |
|  |  | 184610 | 7(b) |  |  |  |
|  |  | (180000) | 7(c) |  |  |  |
| **Total operating expenses** | $**(14724140)** | $**(13478)** |  | $**(377098)** |  | $**(15114716)** |
| **Income from operations** | $**2043376** | $**(13478)** |  | $**(377098)** |  | $**1652800** |
| Other expense, net | (20937) |  |  | (236419) | 8(a) | (523464) |
|  |  |  |  | (266108) | 8(c) |  |
| **Income before provision for income taxes** | $**2022439** | $**(13478)** |  | $**(879625)** |  | $**1129336** |
| Income tax (expenses) benefits | (594603) | 3572 | 7(d) | 233101 | 8(d) | (357930) |
| **Net income (loss)** | $**1427836** | $**(9906)** |  | $**(646524)** |  | $**771406** |
| Basic and diluted net income (loss) per share |  |  |  |  |  |  |
| Basic and diluted weighted average shares outstanding |  |  |  |  |  |  |

---

See accompanying notes to unaudited pro forma condensed combined financial information.

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS**

**For the Year Ended December 31, 2024**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **WhiteFiber<br> (Historical)** | **Enovum Historical<br> (Reclassified) <br> For the Period ended <br> September 30, <br> 2024** | **Enovum Historical<br> (Reclassified) <br> For the Period from <br> October 1 to <br> October 11, 2024** | **Transaction Accounting Adjustments** | **Notes** | **Autonomous Entity Adjustments** | **Notes** | **Financing Adjustments** | **Notes** | **Pro forma Combined** |
| **Revenue** | $**47639237** | $**3358022** | $**179122** | $**-** |  | $**-** |  |  |  | $**51176381** |
| **Operating costs and expenses:** |  |  |  |  |  |  |  |  |  |  |
| Cost of revenue (exclusive of depreciation shown below) | (20215831) | (1262043) | (12859) | 165419 | 9(a) |  |  |  |  | (21421001) |
|  |  |  |  | (95687) | 9(b) |  |  |  |  |  |
| Depreciation and amortization expenses | (16511406) | (789172) | (82005) | (525821) | 9(c) |  |  | (1517410) | 11(a) | (19636517) |
|  |  |  |  | (147419) | 9(d) |  |  | (63284) | 11(b) |  |
| General and administrative expenses | (10283615) | (1021355) | (984727) | (1980796) | 9(e) | (72353) | 10(a) |  |  | (14792031) |
|  |  |  |  | 1008691 | 9(f) | (487876) | 10(b) |  |  |  |
|  |  |  |  |  |  | (970000) | 10(c) |  |  |  |
| **Total operating expenses** | $**(47010852)** | $**(3072570)** | $**(1079591)** | $**(1575613)** |  | $**(1530229)** |  | $**(1580694)** |  | $**(55849549)** |
| **Income (loss) from operations** | $**628385** | $**285452** | $**(900469)** | $**(1575613)** |  | $**(1530229)** |  | $**(1580694)** |  | $**(4673168)** |
| **Other expense, net** | $1615634 | $(323433) | $(479315) | $342874 | 9(g) | $- |  | $(1037909) | 11(a) | $(963364) |
|  |  |  |  | $34239 | 9(h) |  |  | $(1115454) | 11(c) |  |
| **Income before provision for income taxes** | $**2244019** | $**(37981)** | $**(1379784)** | $**(1198500)** |  | $**(1530229)** |  | $**(3734057)** |  | $**(5636532)** |
| Income tax (expenses) benefits | (874177) | 328228 | - | 317602 | 9(i) | 405511 | 10(d) | 989525 | 11(d) | 1166689 |
| **Net income (loss)** | $**1369842** | $**290247** | $**(1379784)** | $**(880898)** |  | $**(1124718)** |  | $**(2744532)** |  | $**(4469843)** |
| Basic and diluted net income (loss) per share |  |  |  |  |  |  |  |  |  |  |
| Basic and diluted weighted average shares outstanding |  |  |  |  |  |  |  |  |  |  |

---

See accompanying notes to unaudited pro forma condensed combined financial information.

**Note 1. Basis of presentation**

The foregoing historical financial statements have been prepared in accordance with US GAAP. The accompanying unaudited pro forma condensed combined balance sheet as of March 31, 2025, pro forma condensed combined statement of operations for the three months ended March 31, 2025, and pro forma condensed combined statement of operations for the year ended December 31, 2024 were prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed combined financial information has been prepared based on the aforementioned historical financial statements and the assumptions and adjustments as described in the notes to the unaudited pro forma condensed combined financial information.

The historical financial statements of WhiteFiber and Enovum have been adjusted in the accompanying unaudited pro forma condensed combined financial information to reflect the transaction accounting adjustments, autonomous entity adjustments, and financing adjustments that depict the estimated accounting effects of the Transactions in accordance with US GAAP. Amounts presented in the "Transaction Accounting Adjustments" column reflect the accounting for Enovum Acquisition, which is further discussed below. The Transaction Accounting Adjustments also reflect the effects of equity issuance costs and offering proceeds raised in connection with the IPO. However, there are no Transaction Accounting Adjustments related to the Enovum Acquisition made to the unaudited pro forma condensed combined balance sheet as of March 31, 2025 and unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025 as the Enovum acquisition is already consolidated and reflected in our historical unaudited balance sheet as of March 31, 2025 and statement of operations for the three months ended March 31, 2025. Amounts presented in the "Autonomous Entity Adjustments" column represent adjustments to show the impact of the Reorganization such as the transition services arrangement and lease arrangements. Actual future costs may differ from these estimates. Amounts presented in the "Financing Adjustments" column represent adjustments to show the impact of the Facility.

The Enovum acquisition is accounted for using the acquisition method in accordance with ASC 805 – *Business Combinations*. In a business combination effected primarily by transferring cash or stock, the entity that transfers cash or stock is generally the acquirer. WhiteFiber was the accounting and legal acquirer of Enovum. The unaudited condensed combined pro forma financial information reflects the assessment of fair values and useful lives assigned to Enovum's assets acquired and liabilities assumed. Fair value estimates were determined based on a third party valuation analysis. As the acquisition occurred on October 11, 2024, the allocation of purchase price has been substantially completed subject to potential measurement period adjustments that may arise before October 2025.

The unaudited pro forma condensed combined financial information does not reflect any integration activities or cost savings from operating efficiencies, synergies, or other restructurings that could result from the Transactions. The pro forma adjustments represent management's estimates based on information available as of the date of this registration statement and are subject to change as additional information becomes available and additional analyses are performed. WhiteFiber management considers the basis of presentation to be reasonable under the circumstances.

**Note 2. Reclassification of Enovum's Historical Statement of Operations for the Year ended December 31, 2024**

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 reflects certain reclassifications of Enovum's historical financial statement captions to conform to WhiteFiber's presentation. The reclassifications are summarized below and presented in actual figures:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the<br> period ended <br> September 30,<br> 2024** | **For the<br> period <br> October 1 to 11, <br> 2024** | **Reclassifications** | **For the<br> period ended <br> September 30,<br> 2024** | **For the <br> period <br> October 1 to 11, <br> 2024** |
| Revenue – Colocation Service | 3358022 | 179122 | (3537145) |  |  |
| Revenue | - | - | 3537145 | 3358022 | 179122 |
| **Net Sales** | $**3358022** | $**179122** | $**-** | $**3358022** | $**179122** |
| **Operating costs and expenses** |  |  |  |  |  |
| Cost of revenue - Colocation Service | (1262043) | (12859) | 1274902 |  |  |
| Cost of revenue (exclusive of depreciation shown below) | **-** |  | (1274902) | (1262043) | (12859) |
| Depreciation and amortization expense | (789172) | (82005) | 871177 |  |  |
| Depreciation and amortization expenses | **-** |  | (871177) | (789172) | (82005) |
| General and administrative expenses | (1021355) | 29711 | (1014438) | (1021355) | (984727) |
|  | $**(3072570)** | $**(65153)** | $**(1014438)** | $**(3072570)** | $**(1079591)** |
| Income (loss) from operations | 285452 | 113969 | (1014438) | 285452 | (900469) |
| Financial expenses | (323433) | (479315) | 802748 |  |  |
| Other income, net |  |  | (802748) | (323433) | (479315) |
| Transaction expenses | - | (1014438) | 1014438 | - | - |
| **Total other expense (income), net** | $**(323433)** | $**(1493753)** | $**1014438** | $**(323433)** | $**(479315)** |
| **Income (loss) before income taxes** | $**(37981)** | $**(1379784)** | **-** | $**(37981)** | $**(1379784)** |
| Income tax expense (benefits) | 328228 |  | (328228) |  |  |
| Income tax expenses | - | - | 328228 | 328228 | - |
| **Net income (loss)** | $**290247** | $**(1379784)** | $**-** | $**290247** | $**(1379784)** |

---

**Note 3. Accounting Policies**

Upon consummation of the Enovum acquisition, management performed a comprehensive review of the two entities' accounting policies. Based on its analysis, management did not identify any differences that would have a material impact on the unaudited pro forma condensed combined financial information. As a result, the unaudited pro forma condensed combined financial information does not assume any differences in accounting policies.

**Note 4. Purchase Consideration and Related Allocation**

On October 11, 2024, Bit Digital acquired 100% of Enovum. The Enovum acquisition was accounted for using the acquisition method under ASC 805 in accordance with US GAAP. The consideration transferred by Bit Digital to Enovum's selling shareholders included cash and exchangeable shares. We determined the exchangeable shares are equity classified as they require settlement in shares. Additionally, all of the ASC 815-40-25-10 conditions are met. The acquisition-date fair value of the exchangeable shares was determined based on the opening market price of Bit Digital's ordinary shares as of the acquisition date. Certain of Enovum's transaction expenses were paid by Bit Digital and included as purchase consideration. One-time, direct and incremental transaction costs incurred by Bit Digital in connection with the closing of the transaction were expensed as incurred under ASC 805 and have been included in Bit Digital's historical results for the year ended December 31, 2024. The transaction costs are adjusted in WhiteFiber's historical results as described in Note 9 below.

The acquisition date fair value of the consideration transferred totalled $43,834,313. The total consideration consists of $38,993,603 of cash consideration and $4,840,710 in equity-classified exchangeable shares.

The following table summarizes the preliminary allocation of the purchase price based on the fair value of the assets acquired and liabilities assumed at the acquisition date:

---

| | |
|:---|:---|
| Accounts receivable<sup>(1)</sup> | $616153 |
| Other current assets<sup>(2)</sup> | 2008566 |
| Property and equipment<sup>(3)</sup> | 14201790 |
| Operating lease right-of-use assets<sup>(4)</sup> | 4752501 |
| Intangible asset<sup>(5)</sup> | 13486184 |
| Deferred tax asset<sup>(9)</sup> | 91368 |
| Other non-current assets<sup>(6)</sup> | 2493 |
| Accounts payable<sup>(7)</sup> | (1866804) |
| Other payables and accrued liabilities<sup>(7)</sup> | (1100095) |
| Current portion of deferred revenue<sup>(8)</sup> | (465360) |
| Current portion of operating lease liability<sup>(4)</sup> | (248301) |
| Non-current portion of deferred revenue<sup>(8)</sup> | (123652) |
| Non-current portion of operating lease liability<sup>(4)</sup> | (3273709) |
| Deferred tax liability<sup>(9)</sup> | (4090683) |
| **Total identifiable assets and liabilities** | **23990451** |
| Goodwill | 19843862 |
| **Total Purchase Consideration** | $**43834313** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The acquisition-date fair value of the acquired accounts receivable was $616,153, which equals the gross
contractual amount. The Company does not expect a material amount of uncollectible contractual cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Enovum has $2,008,566 in other current assets. The carrying amount of other current assets at the acquisition
date is at fair value as the Company will continue to derive benefits from these assets within the next year or less.

&nbsp;&nbsp;&nbsp;&nbsp;(3) The acquisition-date fair value of the fixed assets is $14,201,790.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Enovum has one operating lease for its data center. The Company remeasured its lease as of the acquisition
and adjusted the remeasured lease for a favorable lease to reflect a right-of-use asset of $4,752,501 and lease liability of $3,522,010.

&nbsp;&nbsp;&nbsp;&nbsp;(5) The Company recognized Enovum customer relationships as an intangible asset of $13,486,184 to be amortized
over a useful life of 19 years.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Enovum has $2,493 in other non-current assets where the carrying amount approximates fair value.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Enovum has $1,866,804 and $1,100,095 in accounts payables and other payables and accrued liabilities,
respectively. The amounts of accounts payables represent payables that will be paid in less than one year are considered to be at fair
value. The carrying value of other payables and accrued liabilities approximates fair value.

&nbsp;&nbsp;&nbsp;&nbsp;(8) Bit Digital has assessed Enovum's revenue recognition model and concluded it is consistent with
ASC 606. As such, as per ASU 2021-08, Enovum's deferred revenue balance of $589,012 is recognized at the amount reported by Enovum
immediately before the acquisition date.

&nbsp;&nbsp;&nbsp;&nbsp;(9) The deferred tax liability adjustment is mostly due to 1) the basis differences from the acquired assets
and 2) historical deferred tax assets/(liabilities) and tax attributes carryover from Enovum as part of the purchase accounting adjustment,
multiplied by the tax rate of 26.5%, which is the combined rate of Canada federal income tax rate of 15% and Quebec provincial income
tax rate of 11.5%.

**Note 5. Transaction Accounting Adjustments to the Unaudited Pro Forma Condensed Combined Balance Sheet as of March 31, 2025**

The pro forma adjustments included in the unaudited pro forma condensed combined balance sheet are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents proceeds of $ from the offering, with a corresponding increase to total stockholders' equity, based on the issuance of shares of Ordinary Shares at an assumed initial public offering price of $ per share after deducting $ million of assumed underwriting discounts and commissions and estimated offering expenses. For more information, see "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects the reclassification of WhiteFiber's parent company net investment in the amount of $221.1 million to additional paid-in-capital.

**Note 6. Financing Adjustments to the Unaudited Pro Forma Condensed Combined Balance Sheet as of March 31, 2025**

The pro forma adjustments included in the unaudited pro forma condensed combined balance sheet are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects the effects of fees related to the Revolver via a Letter of
Guaranty or Letters of Credit pursuant to a definitive credit agreement with Royal Bank of Canada dated June 18, 2025. Estimated debt
issuance costs associated with the Letter of Guaranty are estimated to be CAD $0.3 million, which the Company converted to USD $0.2 million
using Bloomberg's published rate of CAD $1.00/U.S. $0.7308 on June 18, 2025. Included in the unaudited pro forma condensed combined
balance sheet as of March 31, 2025 are adjustments to cash for $0.2 million and $0.2 million to other non-current assets, respectively.
The deferred financing costs will be amortized over a period of 3 years pursuant to the definitive credit agreement. WhiteFiber does not
anticipate drawing upon this facility and as such, has not reflected related adjustments to cash and other long-term liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects the effects of a non-revolving real estate term loan to refinance
the Company's borrowings from Bit Digital for the purchase of MTL-2 pursuant to a definitive credit agreement with Royal Bank of
Canada dated June 18, 2025. The non-revolving real estate term loan of CAD $26.8 million was converted to USD $19.4 million using Bloomberg's
published rate of CAD 1.00/U.S. $0.7308 on June 18, 2025. Included in the unaudited pro forma condensed combined balance sheet as of March
31, 2025 is an adjustment to cash and other long-term liabilities of $19.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reflects the effects of a non-revolving loan facility to finance specific
equipment costs and building improvements to build out MTL-2, pursuant to a definitive credit agreement with Royal Bank of Canada dated
June 18, 2025. The loan facility of CAD $25.3 million was converted to USD $18.2 million using Bloomberg's published rate of CAD
1.00/U.S. $.07308 on June 18, 2025. The unaudited pro forma condensed combined balance sheet as of March 31, 2025 includes adjustments
to reflect the current and non-current portions of the right-of-use asset and lease liability. These adjustments consist of $3.0 million
to other current assets, $15.2 million to other non-current assets, $1.8 million to other payables and accrued liabilities, and $16.5
million to other long-term liabilities.

**Note 7. Autonomous Entity Adjustments to the Unaudited Pro Forma Condensed Combined Statement of Operations for the Three Months Ended March 31, 2025**

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects the effects of a new leasing agreement entered into in connection
with the Reorganization. Included in the unaudited pro forma condensed combined statement of operations for the three months ended March
31, 2025, are adjustments to general and administrative expenses of $0.02 million reflecting incremental rent for the new office space
of WhiteFiber pursuant to the lease agreement dated February 11, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects the effects of the Transition Service Agreement (TSA) WhiteFiber
and Bit Digital entered into in connection with the IPO. The unaudited pro forma condensed combined statement of operations for the three
months ended March 31, 2025, includes adjustments to general and administrative expenses of $0.2 million, reflecting incremental decrease
in costs associated with the services provided by Bit Digital to WhiteFiber pursuant to the TSA to be entered into as part of the Reorganization
when compared to previously allocated costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the IPO, WhiteFiber has made the decision to hire
two new board directors. One director will be compensated at a monthly fee of $0.01 million. The other director will be compensated at
a quarterly fee of $0.02 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reflects the tax effects of the autonomous entity adjustments at the
applicable Canadian statutory income tax rate of 26.5%.

**Note 8. Financing Adjustments to the Unaudited Pro Forma Condensed Combined Statement of Operations for the Three Months ended March 31, 2025**

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects the effects of a non-revolving loan facility to finance specific
equipment costs and building improvements to build out MTL-2, pursuant to a definitive credit agreement with Royal Bank of Canada dated
June 18, 2025. Included in the unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025
are adjustments to depreciation and amortization expense of $0.4 million and other expense of $0.2 million for amortization of the right-of-use
asset and interest expense on the lease liability, respectively. The amortization expense on the right-of-use asset is calculated on a
straight-line basis over a period of 12 years. The interest expense on the lease liability is calculated using an interest rate of 5.7%,
reflecting the Company's estimated incremental borrowing rate. The amortization and interest expense are converted to USD using
the average exchange rate between January 1, 2025 and March 31, 2025 of 0.6968 published by the Bank of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects the effects of fees related to the Revolver via a Letter of
Guaranty or Letters of Credit pursuant to a definitive credit agreement with Royal Bank of Canada dated June 18, 2025. Included in the
unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025 is an adjustment to depreciation
and amortization expense of $0.02 million related to amortization of deferred financing costs over 3 years pursuant to the definitive
credit agreement. The amortization expense is calculated on a straight-line basis and converted to USD using the average exchange rate
between January 1, 2025 and March 31, 2025 of 0.6968 published by the Bank of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reflects the effects of a non-revolving real estate term loan to refinance
the Company's purchase of MTL-2, originally funded by Bit Digital, pursuant to a definitive credit agreement with Royal Bank of
Canada dated June 18, 2025. Included in the unaudited pro forma condensed combined statement of operations for the three months ended
March 31, 2025 is an adjustment to other expense of $0.3 million to reflect interest expense assuming a floating interest rate indexed
to RBP on June 19, 2025, of 4.95% + 0.75% applied to the principal balance and converted to USD using the average exchange rate between
January 1, 2025 and March 21, 2025 of 0.6968 published by the Bank of Canada. Note that a published RBP rate for June 18, 2025 was not
available. As such, the rate on the following business day, June 19, 2025 was used. A sensitivity analysis on interest expense related
to the real estate term loan was performed to assess the effect that a change of 0.125% in the hypothetical interest rate would have on
interest expense. A 0.125% increase or decrease in interest rate would result in a change in interest expense on the term loan of approximately
$0.01 million for the three months ended March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reflects the tax effects of the financing adjustments at the applicable
Canadian statutory income tax rate of 26.5%.

**Note 9. Transaction Accounting Adjustments to the Unaudited Pro Forma Condensed Combined Statement of Operations for the Year ended December 31, 2024**

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents the incremental lease expense related to Enovum's operating lease, which was assumed and remeasured at acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Represents straight-line amortization related to the favorable off-market component of Enovum's operating lease assumed and
remeasured at acquisition, which was calculated using an amortization period of 11.6 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Represents the incremental straight-line amortization expense related to customer relationships acquired as an intangible asset resulting
from the Enovum acquisition, which was calculated using an amortization period of 19 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Represents the incremental amortization expense related to Enovum's fixed assets acquired at acquisition date, based on the
fair value, which was calculated using a 20% declining balance for office equipment, 30% declining balance for computer equipment, straight-line
amortization period of 10 to 15 years for machinery and equipment, and a straight-line amortization period of 15 years for leasehold improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Represents transaction expenses related to the acquisition of Enovum that were recorded by Bit Digital and were not reflected in WhiteFiber's
historical net income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Represents the removal of transaction expenses from Enovum's stub period net income, which was paid by Bit Digital on behalf Enovum
and treated as part of the purchase consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Represents the elimination of interest expense related to Enovum's debt that was repaid in full as of the acquisition date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Represents the elimination of interest expense related to Enovum's finance leases that were settled as of the acquisition date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Represents the tax effects of transaction accounting adjustments at the applicable Canadian statutory income tax rate of 26.5%. No
additional tax effects were deemed material.

**Note 10. Autonomous Entity Adjustments to the Unaudited Pro Forma Condensed Combined Statement of Operations for the Year ended December 31, 2024**

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects the effects of a new leasing agreement entered into in connection
with the Reorganization. Included in the unaudited pro forma condensed combined statement of operations for the fiscal year ended December
31, 2024, are adjustments to general and administrative expenses of $0.07 million reflecting incremental rent for the new office space
of WhiteFiber pursuant to the lease agreement dated February 11, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects the effects of the Transition Service Agreement (TSA) WhiteFiber
and Bit Digital entered into in connection with the IPO. The unaudited pro forma condensed combined statement of operations for the fiscal
year ended December 31, 2024, includes adjustments to general and administrative expenses of $0.5 million, reflecting incremental costs
associated with the services provided by Bit Digital to WhiteFiber pursuant to the TSA to be entered into as a part of the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the IPO, WhiteFiber has made the decision to hire
two new board directors. One director will be compensated at a monthly fee of $0.01 million and a one-time payment of Restricted Stock
Units ("RSUs") valued at $0.3 million. The other director will be compensated at a quarterly fee of $0.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reflects the tax effects of the autonomous entity adjustments at the applicable Canadian statutory income tax rate of 26.5%.

**Note 11. Financing Adjustments to the Unaudited Pro Forma Condensed Combined Statement of Operations for the Year ended December 31, 2024**

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects the effects of a non-revolving loan facility to finance specific
equipment costs and building improvements to build out MTL-2, pursuant to a definitive credit agreement with Royal Bank of Canada dated
June 18, 2025. Included in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 are
adjustments to depreciation and amortization expense of $1.5 million and other income of $1.0 million to reflect amortization of the right-of-use
asset and interest expense on the lease liability, respectively. The amortization expense on the right-of-use asset is calculated on a
straight-line basis over a period of 12 years. The interest expense on the lease liability is calculated using an interest rate of 5.7%,
reflecting the Company's estimated incremental borrowing rate. The amortization and interest expense are converted to USD using
the average exchange rate between January 1, 2024 and December 31, 2024 of 0.7302 published by the Bank of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects the effects of fees related to the Revolver via a Letter of
Guaranty or Letters of Credit pursuant to an agreement with Royal Bank of Canada dated June 18, 2025. Included in the unaudited pro forma
condensed combined statement of operations for the year ended December 31, 2024 is an adjustment to depreciation and amortization expense
of $0.06 million to reflect amortization of deferred financing costs over 3 years pursuant to the definitive credit agreement. The amortization
expense is calculated on a straight-line basis and converted to USD using the average exchange rate between January 1, 2024 and December
31, 2024 of 0.7302 published by the Bank of Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reflects the effects of a non-revolving real estate term loan to refinance
the Company's purchase of MTL-2, originally financed through Bit Digital, pursuant to a definitive credit agreement with Royal Bank
of Canada dated June 18, 2025. Included in the unaudited pro forma condensed combined statement of operations for the year ended December
31, 2024 is an adjustment to other income of $1.1 million to reflect interest expense assuming a floating interest rate indexed to RBP
on June 19, 2025 of 4.95% + 0.75% applied to the principal balance and converted to USD using the average exchange rate between January
1, 2024 and December 31, 2024 of 0.7302 published by the Bank of Canada. Note that a published RBP rate for June 18, 2025 was not available.
As such, the rate on the following business day, June 19, 2025 was used. A sensitivity analysis on interest expense related to the real
estate term loan was performed to assess the effect that a change of 0.125% in the hypothetical interest rate would have on interest expense.
A 0.125% increase or decrease in interest rate would result in a change in interest expense on the term loan of approximately $0.02 million
for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reflects the tax effects of the financing adjustments at the applicable Canadian statutory income tax rate of 26.5%.

**Note 12. Earnings per Share**

The pro forma weighted average shares calculation has been performed for the three months ended March 31, 2025 and the year ended December 31, 2024. As the Transactions are being reflected as if they had occurred at the beginning of the period presented, the calculation of the weighted average share outstanding for both basic and diluted earnings per share assumes that the shares issuable relating to the Transactions have been outstanding the entire period presented.

---

| | | |
|:---|:---|:---|
|  | **For the<br> Three Months<br> Ended<br> March 31,<br> 2025** | **For the Year<br> Ended<br> December 31,<br> 2024** |
| **Numerator** |  |  |
| &nbsp;&nbsp;&nbsp;Pro forma net income (loss) – basic and diluted | $771406 | $(4469843) |
| **Denominator** |  |  |
| &nbsp;&nbsp;&nbsp;Pro forma combined weighted average number of WhiteFiber's common shares outstanding - basic and diluted |  |  |
| **Pro forma net income (loss) per share** | $— | $— |

---

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following information should be read in conjunction with the combined financial statements and related notes included elsewhere in this prospectus. The following discussion may contain forward-looking statements that reflect WhiteFiber, Inc.'s plans, estimates and beliefs. WhiteFiber, Inc.'s actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those factors discussed below and elsewhere in this prospectus, particularly in the sections entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors."*

*References to "WhiteFiber" or the "Company" refer to WhiteFiber, Inc. and its subsidiaries, assume the Reorganization has occurred.*

**Overview**

We believe we are a leading provider of artificial intelligence ("AI") infrastructure solutions. We own high-performance computing ("HPC") data centers and provide cloud-based HPC graphics processing units ("GPU") services, which we term cloud services, for customers such as AI application and machine learning ("ML") developers (the "HPC Business"). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference. In connection with this offering, we are being carved out of Bit Digital, Inc. and will operate as a separate public company upon the completion of this offering.

Starting in October 2024, we significantly expanded our data center operations and capabilities by acquiring Enovum, a Tier-3 HPC data center platform based in Montreal, Canada. We currently operate a 4 MW (gross) AI data center located in Montreal, Canada ("MTL-1"). MTL-1 is a fully operational Tier-3 data center that is designed for HPC workloads. MTL-1's full capacity is occupied by 14 customers under lease agreements with an average duration of approximately 30 months as of May 30, 2025. On December 27, 2024, we acquired the real estate and building for a build-to-suit 5 MW (gross) Tier-3 data center expansion project in Montreal ("MTL-2").

In addition to providing highly desirable data center hosting capacity to our customers, our business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Our integrated approach aligns specialized data center operations with GPU-focused cloud services, addressing the unique requirements of AI and ML workloads. As of June 30, 2025, the Company had approximately 4,500 NVIDIA GPUs deployed, with approximately 4,000 GPUs under contract.

*Colocation/Data Center Services*

We design, develop, and operate data centers, through which we offer our hosting and colocation services. Our operational data centers meet the requirements of the Tier-3 standard, including N+1 redundancy architecture, concurrent maintainability, uninterruptible power supply, advanced and highly reliable cooling systems, strict monitoring and management systems, 99.982% uptime and no more than 1.6 hours of downtime annually, service organization control SOC 2 Type 2, differentiated software supporting AI workloads, high density and robust bandwidth, and infrastructure to support AI workloads.

We acquired Enovum on October 11, 2024. The transaction included the lease to MTL-1, a fully operational and fully leased to customers 4 MW (gross) Tier-3 datacenter headquartered in Montreal, Canada. As of May 30, 2025, MTL-1 hosts over 5,000 GPUs, including NVIDIA H200s and H100s, on behalf of 14 customers across a variety of end markets.

On December 27, 2024, we acquired the real estate and building for a build-to-suit 5 MW (gross) Tier-3 data center expansion project near Montreal, Canada, which we refer to as MTL-2. MTL-2, a 160,000 square foot site that was previously used as an encapsulation manufacturing facility, is located in Pointe-Claire, Quebec. We initially funded the purchase of CAD $33.5 million (approximately USD $23.3 million) with cash on hand. We expect to invest approximately USD $23.6 million to develop the site to Tier-3 standards with an initial load of 5 MW (gross). MTL-2 is expected to be completed and operational in the fourth quarter of 2025. With a one-month delay before it begins to generate revenue.

In April 2025, we entered into a lease for MTL-3. The MTL-3 facility spans approximately 202,000 square feet on 7.7 acres and is being developed as a 7 MW (gross) Tier-3 data center. It will support current contracted capacity with Cerebras (5 MW IT Load), with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure which includes an exclusive fixed-price purchase option of CAD $24.2 million (approximately USD $17.3 million) exercisable by December 2025. The lease term is 20 years, with two 5-year extensions at our option. Subject to our receipt of all required permits, the facility is being retrofitted to Tier-3 standards, with development costs expected to total approximately USD $41 million, and is expected to be completed and operational in the fourth quarter of 2025, with a one-month delay before we expect to begin to generate revenue. We believe that our agreement with Cerebras demonstrates our ability to deliver sophisticated, high-performance colocation solutions tailored for next-generation AI workloads. We intend to support Cerebras's computing needs with our expertly designed data center infrastructure, delivering the reliability and scalability essential for AI innovation.

On May 20, 2025 (the "Closing Date"), we completed the purchase of NC-1, a former industrial/manufacturing building outside of Greensboro, North Carolina, as well as certain machinery and equipment located thereon, for a cash purchase price of $45 million. The purchase price will increase by (i) $8 million, if Duke Energy actually provides, or provides an Electric Services Agreement providing for, at least 99 MW (gross) within two years of the Closing Date or (ii) $5 million, if Duke Energy actually provides, or provides an Electric Services Agreement providing for, at least 99 MW (gross) more than two years but less than three years after the Closing Date. Additionally, the purchase price will increase by an additional $200,000 per MW over 99 MW (gross) up to a maximum of $5 million if at least 99 MW (gross) are actually delivered, or Duke Energy provides an Electric Services Agreement for the provision of at least 99 MW (gross), within four years of the Closing Date. Separately, we entered into the Capacity Agreement with Duke Energy pursuant to which Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025, 40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of May 16, 2025. Management believes based upon its review of the site and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

We have developed a software capability, called WhiteFiber Cloud AI, which is intended to link GPU clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius of approximately 80 kilometers. One of the first customers to utilize this application is the platform Shadeform. Shadeform provides an AI compute marketplace where customers can request paid access to compute resources. By productizing cross-data center operation, we intend to create a single supercluster, enabling us to sidestep potential fragmentation problems and dynamically "borrow" compute or storage resources from any site. We believe that this approach will enable us to overcome scale limitations, optimize performance and provide built-in redundancy.

*Cloud Services*

Our cloud services business provides cutting-edge, bespoke services involving a sophisticated array of computers and chips, including NVIDIA GPUs, servers, network equipment, and data storage solutions. We believe we provide our cloud services customers with the highest levels of performance and reliability while offering flexibility to scale with customer needs. Our cloud services solutions include a software layer that will assist our customers in the deployment of AI applications with superior performance. We are offering our cloud services initially at a data center maintained by a third-party colocation provider in Iceland (the "Iceland Data Center"). We intend to offer our clouds services at the MTL-2 site. We are negotiating with third-party data center providers to seamlessly integrate our cloud services at data centers across key regions in Europe, North America and Asia. We believe that both of our businesses are posted to benefit from increased market demand. This is illustrated by our demonstrated ability to pre-sign end users prior to committing capital for expansions, both for new data center sites and for GPU server procurement.

We are actively engaged in research and development efforts to enhance our cloud services capabilities for our customers. For example, we developed WhiteFiber Cloud AI, which is intended to link GPU clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius of approximately 80 kilometers. This will provide significant flexibility as scaling is required to accelerate development of AI applications. In addition, we are working on advanced interconnect technologies like InfiniBand ("IB") or RDMA over Converged Ethernet ("RoCE"). When combined with cross-data center links, these ensure that training jobs can be distributed without bottlenecks or high latency. We expect that such enhancements will be implemented across our customer base in the fourth quarter of 2025. By emphasizing scale, performance, and reliability, we believe that we will be positioned to maximize customer retention while pricing our services at a premium to those offered by our competitors.

We expect to leverage a global network of data centers for hosting capacity for our GPU business, in many instances, by negotiating with third-party providers to seamlessly integrate our cloud services at data centers across key regions in Europe, North America and Asia. Our initial data center partnership through which we lease capacity is at Blönduós Campus, Iceland, offering a world-class operations team with certified technicians and reliable engineers. The facility has 45kW rack density and 6 MW (gross) total capacity. We have executed contracts for 5 MW (IT load) at the data center. The center's energy source is 100% renewable energy, mainly from Blanda Hydro PowerStation, the winner of an IHA Blue Planet Award in 2017. On October 23, 2023, Bit Digital announced that it had commenced AI operations by signing a binding term sheet with a customer (the "Initial Customer") to support the customer's GPU workloads. In January 2025, we executed a new agreement to supply the Initial Customer 464 B200 GPUs for an 18 month term beginning on June 30, 2025, worth approximately $15 million of targeted annualized revenue assuming the Initial Customer utilizes the GPUs at full capacity for the duration of the contract. The Initial Customer elected to defer the commencement date until August 20, 2025, which is the latest date under the agreement. As of June 30, 2025, we have eight contracted customers.

**Key Factors that May Affect Future Results of Operations**

We believe that the growth of our business and our future success are dependent upon many factors including those described above under "Risk Factors" and elsewhere in this prospectus and the following key factors. While these factors present significant opportunities for us, they also pose challenges that we must successfully address in order to sustain the growth of our business and enhance our results of operations.

***Timely Completion of, and Expansion of Capabilities at, our Existing Data Center Projects.***

 ****

Our future revenue growth is, in part, dependent on our ability to leverage our development capabilities at our data center sites. We intend to complete our MTL-2 facility in the fourth quarter of 2025, our MTL-3 facility in the fourth quarter of 2025, and the first 24 gross MW (gross) of NC-1 in the first quarter of 2026. While NC-1 is expected to be completed in the first quarter of 2026, management expects it will start generating revenue in May of 2026. We expect to increase revenue from our existing sites by securing additional allocations of utility power, subject to our receipt of funding and required permits through ongoing engagement with the utility and relevant authorities. In addition, at certain new and existing sites, we intend to deploy natural gas fuel cell generation technology to increase available power and revenue potential. Our ability to secure the required funding and permits in accordance with our implementation plans may cause variability in our revenue growth in future quarters.

***Development of Data Center Pipeline.***

 ****

We intend to rapidly develop additional sites from our expansion pipeline in targeted locations to secure a strategic presence across North America. By developing a robust HPC data center platform across North America, we expect to enhance redundancy, mitigate geo-location risks, and ensure our services are available where clients need them most. We expect our strategically placed WhiteFiber data centers in smaller urban areas, will deliver carrier hotel-level connectivity, while our larger deployments will power AI-driven computing super-clusters, driving innovation and efficiency.

***Expansion of Cloud Services.***

We have made investments in research and development of our cloud service technology and services. Cloud services are highly competitive, rapidly evolving, and require significant investment, including development and operational costs, to meet the changing needs and expectations of our existing users and attract new users. Our ability to deploy certain cloud service technologies critical for our products and services and for our business strategy may depend on the availability and pricing of third-party equipment and technical infrastructure. In the future, we are looking to generate significant revenues from our cloud services, but such revenue growth depends upon certain third-party providers which may be beyond our control and creates uncertainty that we will be able to generate consistent revenue.

In addition to the key factors described above, we may also generate revenue through the monetization of excess or unused power capacity, resale or leasing of high-performance computing (HPC) hardware, licensing of software or infrastructure designs, and strategic partnerships that expand our service offerings. However, these potential revenue streams are at an early stage and are not expected to materially contribute to our near-term results.

**Results of operations for the three months ended March 31, 2025 and 2024**

The following discussion summarizes combined results of operations for the three months ended March 31, 2025 and 2024. This information should be read together with our combined financial statements and related notes included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** | |
|  | **2025** | **2024** | **Variance in**<br>**Amount** |
| **Revenue** | $**16767516** | $**8169332** | $**8598184** |
| **Operating costs and expenses** |  |  |  |
| Cost of revenue (exclusive of depreciation shown below) | (6650677) | (3157327) | (3493350) |
| Depreciation and amortization expenses | (3829644) | (2881527) | (948117) |
| General and administrative expenses | (4243819) | (1196919) | (3046900) |
| **Total operating expenses** | **(14724140)** | **(7235773)** | **(7488367)** |
| **Income from operations** | **2043376** | **933559** | **1109817** |
| **Other (expense) income, net** | **(20937)** | **83292** | **(104229)** |
| **Income before provision for income taxes** | **2022439** | **1016851** | **1005588** |
| Income tax expenses | (594603) | (190341) | (404262) |
| **Net income** | $**1427836** | $**826510** | $**601326** |

---

 

*Revenue*

We generate revenues primarily from providing cloud services and colocation services. Cloud services revenue is derived from providing customers with access to high-performance computing infrastructure, including GPU clusters optimized for AI workloads. Our contracts are structured as usage-based or committed-capacity agreements, typically with pricing based on the type and quantity of GPUs deployed, duration of use, and associated infrastructure. Revenue is recognized over time as the services are delivered. Key factors that impact cloud services revenue include the number and performance class of GPUs deployed, hardware utilization, power availability at hosting sites, and the timing of new customer onboarding.

Colocation services revenue is generated from leasing data center space, power, and related infrastructure to customers who operate their own hardware. These contracts are generally multi-year agreements with fixed monthly or annual fees based on committed power capacity (typically measured in kilowatts). Revenue is recognized ratably over the term of the agreement. Factors that affect colocation revenue include timing of site development and energization, contracted power levels, and customer expansion activity.

 

*Revenue from cloud services*

In the fourth quarter of 2023, we established our cloud-based HPC graphics processing units services, which we term cloud services, a new business line to provide cloud services to support generative AI workstreams. The Company commenced offering cloud services to customers in January 2024.

Our revenue from cloud services increased by $6.8 million, or 83.9%, to $14.8 million for the three months ended March 31, 2025 from $8.1 million for the three months ended March 31, 2024. The increase was primarily due to an increase in deployed GPU servers in the first quarter of 2025, and the $1.3 million service credit issued to the customer as compensation for decreased utilization during the initial deployment period, which included testing and optimization phases, in the first quarter of 2024.

 

*Revenue from colocation services*

In the fourth quarter of 2024, we acquired Enovum which holds our data center business that provides customers with physical space, power, and cooling within data center facilities.

Our revenue from colocation services was $1.6 million and $nil for the three months ended March 31, 2025 and 2024, respectively.

*Cost of revenue* 

We incur cost of revenue from cloud services and colocation services.

The Company's cost of revenue consists primarily of direct production costs associated with its core operations, excluding depreciation and amortization, which are separately stated in the Company's consolidated statements of operations. Specifically, these costs consist of: (i) cloud services operations - electricity costs, datacenter lease expense, GPU servers lease expense, and other relevant costs and (ii) colocation services - electricity costs, lease costs and other relevant costs.

*Cost of revenue - cloud services*

For the three months ended March 31, 2025 and 2024, the cost of revenue from cloud services was comprised of the following:

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| Electricity costs | $590103 | $83378 |
| Datacenter lease expenses | 1274054 | 700890 |
| GPU servers lease expenses | 3747386 | 2082179 |
| Other costs | 493298 | 290880 |
| &nbsp;&nbsp;&nbsp;**Total** | $**6104841** | $**3157327** |

---

***Electricity costs****.* These expenses were incurred by the data centers for the HPC equipment and were closely correlated with the number of deployed GPU servers.

For the three months ended March 31, 2025, electricity costs increased by $0.5 million, or 608%, compared to the electricity costs incurred for the three months ended March 31, 2024. The increase primarily resulted from an increase in the number of deployed GPU servers.

***Datacenter lease expenses***. We entered into data center lease agreements for fixed monthly recurring costs.

For the three months ended March 31, 2025, data center lease expenses increased by $0.6 million, or 82%, compared to the data center lease expenses incurred for the three months ended March 31, 2024. The increase primarily resulted from two additional datacenter leases entered after the first quarter of 2024.

***GPU servers lease expenses***. We entered into a GPU servers lease agreement to support our cloud services. The lease payment depends on the usage of the GPU servers.

For the three months ended March 31, 2025, GPU servers lease expenses increased by $1.7 million, or 80%, compared to the GPU servers lease expenses incurred for the three months ended March 31, 2024. The increase primarily resulted from a higher average number of GPU servers leased.

*Cost of revenue - Colocation Services*

For the three months ended March 31, 2025 and 2024, the cost of revenue from colocation services was comprised of the following:

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| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2025** | **2024** |
| Electricity costs | $223058 | $- |
| Lease expenses | 150537 |  |
| Other costs | 172241 | - |
| &nbsp;&nbsp;&nbsp;**Total** | $**545836** | $**-** |

---

**Electricity costs**. These expenses were closely correlated with the number of deployed servers hosted by the data center.

For the three months ended March 31, 2025 and 2024, electricity costs totaled $0.2 million and $nil, respectively.<br>

***Lease expenses***. These expenses were incurred by the data center for lease agreement for a fixed monthly recurring cost.

For the three months ended March 31, 2025 and 2024, data center lease expenses totaled $0.2 million and $nil, respectively.

 

*Depreciation and amortization expenses*

For the three months ended March 31, 2025 and 2024, depreciation and amortization expenses were $3.8 million and $2.9 million, respectively, based on an estimated useful life of property, plant, and equipment.

Effective January 1, 2025, we changed our estimate of the useful lives for our cloud service equipment from three to five years. The change was made to better reflect the expected usage patterns and economic benefits of the assets. Refer to Note 2. *Summary of Significant Accounting Policies* to our combined financial statements

*General and administrative expenses*

For the three months ended March 31, 2025, our general and administrative expenses, totaling $4.2 million, were primarily comprised of shared based compensation expenses of $0.1 million, salary and bonus expenses of $1.2 million, professional and consulting expenses of $1.7 million, marketing expenses of $0.3 million, and travel expenses of $0.1 million.

For the three months ended March 31, 2024, our general and administrative expenses, totaling $1.2 million, were primarily comprised of shared based compensation expenses of $0.1 million, salary and bonus expenses of $0.3 million, professional and consulting expenses of $0.3 million, and marketing expenses of $0.1 million.

*Income tax expenses*

Provision for income taxes consists of foreign income taxes resulted from our foreign operations. Our income tax provision for the three months ended March 31, 2025 is primarily attributable to the mix of earnings and losses in countries with differing statutory tax rates, and the valuation allowance applied to the Company's deferred tax assets in the United States. We continue to maintain a valuation allowance against the deferred tax assets in United States as the Company does not expect those deferred tax assets are "more likely than not" to be realized in the near future, particularly due to the uncertainty on macroeconomy, politics and profitability of the business. Our income tax provision was $0.6 million and $0.2 million for the three months ended March 31, 2025 and 2024, respectively. The income tax provision was higher during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the higher profitability from business operational results in Iceland during the three months ended March 31, 2025 compared to the same period in 2024.

**Results of operations for the Year Ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023** 

The following discussion summarizes combined results of operations for the year ended December 31, 2024, and for the period from October 19, 2023 to December 31, 2023. This information should be read together with our combined financial statements and related notes included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **For the <br> Year Ended<br> December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** | **Variance in<br> Amount** |
| Revenues | 47639237 |  | 47639237 |
| **Operating costs and expenses** |  |  |  |
| Cost of revenue (exclusive of depreciation shown below) | (20215831) |  | (20215831) |
| Depreciation and amortization expenses | (16511406) |  | (16511406) |
| General and administrative expenses | (10283615) | (1243475) | (9040140) |
| **Total operating expenses** | **(47010852)** | **(1243475)** | **(45767377)** |
| **Income (Loss) from operations** | **628385** | **(1243475)** | **1871860** |
| **Other income, net** | **1615634** | **19353** | **1596281** |
| **Income (loss) before provision for income taxes** | **2244019** | **(1224122)** | **3468141** |
| Income tax expenses | (874177) | (1827) | (872350) |
| **Net income (loss)** | $**1369842** | **(1225949)** | **2595791** |

---

 

*Revenue*

We generate revenues primarily from providing cloud services and colocation services. Cloud services revenue is derived from providing customers with access to high-performance computing infrastructure, including GPU clusters optimized for AI workloads. Our contracts are structured as usage-based or committed-capacity agreements, typically with pricing based on the type and quantity of GPUs deployed, duration of use, and associated infrastructure. Revenue is recognized over time as the services are delivered. Key factors that impact cloud services revenue include the number and performance class of GPUs deployed, hardware utilization, power availability at hosting sites, and the timing of new customer onboarding.

Colocation services revenue is generated from leasing data center space, power, and related infrastructure to customers who operate their own hardware. These contracts are generally multi-year agreements with fixed monthly or annual fees based on committed power capacity (typically measured in kilowatts). Revenue is recognized ratably over the term of the agreement. Factors that affect colocation revenue include timing of site development and energization, contracted power levels, and customer expansion activity.

 

*Revenue from cloud services*

In the fourth quarter of 2023, we initiated our cloud service business as a new business line to provide cloud services to support generative AI. The Company commenced providing cloud services in January 2024.

Our revenue from cloud services was $45.7 million for the year ended December 31, 2024. During the three months ended March 31, 2024, the Company issued a service credit of $1.3 million to its initial customer as compensation for decreased utilization during the initial deployment period, which included testing and optimization phases. The Company issued another service credit of $0.6 million to its initial customer during the three months ended September 30, 2024, as compensation for decreased utilization.

*Revenue from colocation services*

In the fourth quarter of 2024, we acquired our data center business which provides customers with physical space, power, and cooling within the data center facility.

Our revenue from colocation services was $1.4 million for the year ended December 31, 2024.

*Cost of revenue* 

We incur cost of revenue from cloud services and colocation services.

The Company's cost of revenue consists primarily of (i) direct production costs related to cloud services operations, including electricity costs, datacenter lease expense, GPU servers lease expense, and other relevant costs, but excluding depreciation and amortization, which are separately stated in the Company's combined statements of operations, (ii) direct production costs related to colocation services, including electricity costs, lease costs and other relevant costs.

 

*Cost of revenue - cloud services*

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, the cost of revenue from cloud services was comprised of the following:

 

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Electricity costs | $1198060 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Datacenter lease expenses | 3558987 |  |
| GPU servers lease expenses | 13640737 |  |
| Other costs | 1327546 | - |
| &nbsp;&nbsp;&nbsp;**Total** | $**19725330** | $**-** |

---

***Electricity costs****.* These expenses were incurred by the datacenter for the HPC equipment and were closely correlated with the number of deployed GPU servers.

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, electricity costs totaled $1.2 million and $nil, respectively.

***Datacenter lease expenses***. In December 2023, we entered into a data center lease agreement for a fixed monthly recurring cost.

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, data center lease expenses totaled $3.6 million and $nil, respectively.

***GPU servers lease expenses***. In 2023, we entered into a GPU servers lease agreement to support our cloud services. The lease payment depends on the usage of the GPU servers.

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, GPU servers lease expenses totaled $13.6 million and $nil, respectively.

*Cost of revenue - Colocation Services*

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, the cost of revenue from colocation services was comprised of the following:

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Electricity costs | $188559 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Lease expenses | 149260 |  |
| Other costs | 152682 | - |
| &nbsp;&nbsp;&nbsp;**Total** | $**490501** | $**-** |

---

**Electricity costs**. These expenses were closely correlated with the number of deployed servers hosted by the data center.

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, electricity costs totaled $0.2 million and $nil, respectively.

***Lease expenses***. These expenses were incurred by the data center for lease agreement for a fixed monthly recurring cost.

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, data center lease expenses totaled $0.1 million and $nil, respectively.

 

*Depreciation and amortization expenses*

For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, depreciation and amortization expenses were $16.5 million and $nil million, respectively based on an estimated useful life of property, plant, and equipment as discussed in Note 2. *Summary of Significant Accounting Policies* to our audited combined financial statements

*General and administrative expenses*

For the year ended December 31, 2024, our general and administrative expenses, totaling $10.3 million, were primarily comprised of professional and consulting expense of $2.1 million, share-based compensation expenses of $3.2 million, salary and bonus expenses of $2.1 million, marketing expenses of $0.8 million, and travel expenses of $0.3 million.

For the period from October 19, 2023 to December 31, 2023, our general and administrative expenses, totaling $1.2 million, were primarily comprised of share-based compensation expenses of $0.9 million, salary and bonus expenses of $0.1 million, professional and consulting expenses of $0.2 million.

*Income tax expenses*

The following table provides details of income taxes:

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31, 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Income (loss) before income taxes | $2244019 | $(1224122) |
| Provision for income taxes | 874177 | 1827 |
| Effective tax rate | 39.0% | (0.1)% |

---

Tax expense was higher as a percentage of income before taxes during the year ended December 31, 2024 compared to the period From October 19, 2023 to December 31, 2023 primarily due to the impact of tax expense increases by $0.7 million and $0.2 million in year ended December 31, 2024 due to profitable business operation in Iceland and the Global Intangible Low Taxed Income inclusion.

Our future effective income tax rate depends on various factors, such as tax legislation, the geographic composition of our pre-tax income, the amount of our pre-tax income as business activities fluctuate, non-deductible expenses, non-taxable capital gain in certain jurisdiction, change of valuation allowance and the effectiveness of our tax planning strategies. We also continue to monitor the adoption of Pillar Two relating to the global minimum tax in each of our tax jurisdictions to evaluate its impact on our effective income tax rate. For the year ended December 31, 2024, we are not subject to Pillar Two global minimum tax. For more details on the Company's tax profile, see Note 11. *Income Taxes* to our combined financial statements.

**Discussion of Certain Balance Sheet Items as of March 31, 2025 and December 31, 2024**

The following table sets forth selected information from our combined balance sheets as of March 31, 2025 and December 31, 2024. This information should be read together with our combined financial statements and related notes included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **Variance in**<br>**Amount** |
| **ASSETS** |  |  |  |
| **Current Assets** |  |  |  |
| Cash and cash equivalents | $9083232 | $11671984 | $(2588752) |
| Restricted cash | 3732792 | 3732792 |  |
| Accounts receivable | 2531188 | 5267863 | (2736675) |
| Net investment in lease - current | 2632603 | 2546519 | 86084 |
| Other current assets | 33447655 | 23285682 | 10161973 |
| **Total Current Assets** | **51427470** | **46504840** | **4922630** |
| **Non-current assets** |  |  |  |
| Deposits for property and equipment | 4273861 | 35743011 | (31469150) |
| Property, plant, and equipment, net | 166485653 | 89203483 | 77282170 |
| Operating lease right-of-use assets | 14753145 | 14544118 | 209027 |
| Net investment in lease - non-current | 6087814 | 6782479 | (694665) |
| Other non-current assets | 3639420 | 2838269 | 801151 |
| Investment securities | 1000000 | 1000000 |  |
| Deferred tax asset | 103998 | 104642 | (644) |
| Intangible assets | 12762627 | 13028730 | (266103) |
| Goodwill | 19243410 | 19383291 | (139881) |
| **Total Assets** | $**279777398** | $**229132863** | $**50644535** |
| **LIABILITIES** |  |  |  |
| **Current Liabilities** |  |  |  |
| Accounts payable | $1328847 | $2346510 | $(1017663) |
| Income tax payable | 984940 | 985191 | (251) |
| Current portion of deferred revenue | 21175064 | 30698458 | (9523394) |
| Current portion of operating lease liability | 4869747 | 4372544 | 497203 |
| Other payables and accrued liabilities | 17030801 | 7357839 | 9672962 |
| **Total Current Liabilities** | **45389399** | **45760542** | **(371143)** |
| Non-current portion of operating lease liability | 8759750 | 9010577 | (250827) |
| Non-current portion of deferred revenue | 72963 | 73494 | (531) |
| Deferred tax liability | 4341724 | 3776124 | 565600 |
| Other long-term liabilities | 589029 | 785371 | (196342) |
| **Total Liabilities** | $**59152865** | $**59406108** | $**(253243)** |

---

 

*Cash and cash equivalents*

Cash and cash equivalents primarily consist of funds deposited with banks, which are highly liquid and are unrestricted to withdrawal or use. The total balance of cash and cash equivalents were $9.1 million and $11.7 million as of March 31, 2025 and December 31, 2024, respectively. The decrease in the balance of cash and cash equivalents was a result of net cash of $2.9 million used in operating activities, net cash of $50.2 million used in investing activities, and net cash of $50.0 million provided by financing activities.

*Restricted cash*

Restricted cash represents cash balances that support an outstanding letter of credit to third parties related to security deposits and are restricted from withdrawal. As of March 31, 2025 and December 31, 2024, the fixed maximum amount guaranteed under the letter of credit was $3.7 million and $3.7 million, respectively.

*Accounts receivable, net*

Accounts receivable, net consist of amounts due from our customers. The total balance of accounts receivable was $2.5 million and $5.3 million as of March 31, 2025 and December 31, 2024, respectively. The decrease in the balance of accounts receivable is attributable to paid invoices from our customers.

*Net investment in lease*

Net investment in lease represents the present value of the lease payments not yet received from lessees. The current and non-current balance of net investment in lease was $2.6 million and $6.1 million, respectively as of March 31, 2025. The current and non-current balance of net investment in lease was $2.5 million and $6.8 million, respectively as of December 31, 2024.

*Other current assets*

Other current assets were $33.4 million and $23.3 million as of March 31, 2025 and December 31, 2024, respectively. The increase in the balance of other current assets was mainly attributable to an increase in prepaid consulting services of $1.9 million, an increase in receivable from third parties of $10.5 million, an increase in contract assets of $0.8 million, partially offset by a decrease in prepayment to third parties of $3.4 million.

*Deposits for property, plant, and equipment*

The deposits for property, plant, and equipment consists of advance payments for property and equipment. The balance is derecognized once the control of the property, plant, and equipment is transferred to and obtained by us.

Compared with December 31, 2024, the balance as of March 31, 2025 decreased by $31.5 million, mainly due to the receipt of property and equipment of $75.4 million offset by prepayment of the $43.9 million for property and equipment.

*Property, plant, and equipment, net*

Property, plant, and equipment primarily consisted of equipment used in our HPC businesses as well as construction in progress representing assets received but not yet put into service.

As of March 31, 2025, the HPC equipment had a net book value of $166.5 million. As of December 31, 2024, the HPC equipment had a net book value of $89.2 million.

*Operating lease right-of-use assets and operating lease liability*

As of March 31, 2025, operating right-of-use assets and operating lease liabilities were $14.8 million and $13.6 million, respectively. As of December 31, 2024, the Company's operating lease right-of-use assets and operating lease liability were $14.5 million and $13.4 million, respectively.

The increase in operating lease right-of-use assets and total operating lease liability of $0.2 million and $0.2 million respectively, were due to the additional leases for $1.3 million and $1.3 million, respectively, partially offset by the amortization of the operating lease right-of-use assets totaling $1.1 million and $1.1 million, respectively, for the three months ended March 31, 2025.

*Investment security*

As of March 31, 2025 and December 31, 2024, our portfolio consists of an investment in a privately held company via a simple agreement for future equity ("SAFE"). The total balance of our investment security was $1.0 million and $1.0 million as of March 31, 2025 and December 31, 2024, respectively.

*Goodwill*

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in relation of in Enovum acquisition. Refer to Note 11. *Goodwill And Intangible Assets* of our combined financial statements for further information. As of March 31, 2025 and December 31, 2024, the Company recorded goodwill in the amount of $19.2 million and $19.4 million, respectively.

*Intangible Assets*

Intangible assets pertain to customer relationships acquired in connection with the acquisition of Enovum. Refer to Note 11. *Goodwill and Intangible Assets* for further information. As of March 31, 2025 and December 31, 2024, the total balance of intangible assets was $12.8 million and $13.0 million, respectively.

*Accounts payable*

Accounts payable primarily consists of amounts due for costs related to HPC services. Compared with December 31, 2024, the balance of accounts payable decreased by $1.0 million in the three months ended March 31, 2025, largely due to a higher volume of payments made.

*Deferred revenue*

Deferred revenue pertains to prepayments received from customers for HPC business.

As of March 31, 2025, the Company's current and non-current portion of deferred revenue was $21.2 million and $0.1 million, respectively, compared to $30.7 million and $0.1 million, respectively, as of December 31, 2024. The decrease in deferred revenue of $9.5 million reflects the recognition of $11.1 million in revenue related to the successful fulfillment of performance obligations from our cloud services, partially offset by $1.6 million prepayments from customers for HPC services to be rendered in the future.

**Discussion of Certain Balance Sheet Items as of December 31, 2024 and December 31, 2023**

The following table sets forth selected information from our combined balance sheets as of December 31, 2024 and December 31, 2023. This information should be read together with our combined financial statements and related notes included elsewhere in this prospectus.

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** | **Variance in**<br>**Amount** |
| **ASSETS** |  |  |  |
| **Current Assets** |  |  |  |
| Cash and cash equivalents | $11671984 | $652566 | $11019418 |
| Restricted cash | 3732792 |  | 3732792 |
| Accounts receivable | 5267863 |  | 5267863 |
| Net investment in lease – current | 2546519 |  | 2546519 |
| Other current assets | 23285682 | 14897616 | 8388066 |
| **Total Current Assets** | **46504840** | **15550182** | **30954658** |
| Deposits for property and equipment | 35743011 | 4127371 | 31615640 |
| Property, plant, and equipment, net | 89203483 | 51030667 | 38172816 |
| Operating lease right-of-use assets | 14544118 | 6216255 | 8327863 |
| Net investment in lease - non-current | 6782479 |  | 6782479 |
| Investment securities | 1000000 |  | 1000000 |
| Deferred tax asset | 104642 |  | 104642 |
| Intangible assets | 13028730 |  | 13028730 |
| Goodwill | 19383291 |  | 19383291 |
| Other non-current assets | 2838269 | 2003251 | 835018 |
| **Total Assets** | $**229132863** | $**78927726** | $**150205137** |
| **LIABILITIES** |  |  |  |
| **Current Liabilities** |  |  |  |
| Accounts payable | $2346510 | $100000 | $2246510 |
| Income tax payable | 985191 |  | 985191 |
| Current portion of deferred revenue | 30698458 | 13073449 | 17625009 |
| Current portion of operating lease liability | 4372544 | 1864779 | 2507765 |
| Other payables and accrued liabilities | 7357839 | 8004450 | (646611) |
| **Total Current Liabilities** | **45760542** | **23042678** | **22717864** |
| Non-current portion of operating lease liability | 9010577 | 4351476 | 4659101 |
| Non-current portion of deferred revenue | 73494 |  | 73494 |
| Deferred tax liability | 3776124 |  | 3776124 |
| Other long-term liabilities | 785371 | 1883333 | (1097962) |
| **Total Liabilities** | $**59406108** | $**29277487** | $**30128621** |

---

 

*Cash and cash equivalents*

Cash and cash equivalents primarily consist of funds deposited with banks, which are highly liquid and are unrestricted to withdrawal or use. The total balance of cash and cash equivalents were $11.7 million and $0.7 million as of December 31, 2024 and December 31, 2023, respectively. The increase in the balance of cash and cash equivalents was a result of net cash of $18.4 million provided by operating activities, net cash of $80.0 million used in investing activities, and net cash of $76.4 provided by financing activities.

*Restricted cash* 

Restricted cash represents cash balances that support an outstanding letter of credit to third parties related to security deposits and are restricted from withdrawal. As of December 31, 2024, the fixed maximum amount guaranteed under the letter of credit was $3.7 million.

*Accounts receivable, net*

Accounts receivable, net consist of amounts due from our customers. The total balance of accounts receivable was $5.3 million and $nil as of December 31, 2024 and December 31, 2023, respectively. The increase in the balance of accounts receivable is attributable to the unpaid invoice from our HPC customers.

*Net investment in lease*

Net investment in lease represents the present value of the lease payments not yet received from lessees. The current and non-current balance of net investment in lease was $2.5 million and $6.8 million, respectively as of December 31, 2024. The current and non-current balance of net investment in lease was $nil and $nil, respectively as of December 31, 2023.

*Other current assets*

Other current assets was $23.3 million and $14.9 million as of December 31, 2024 and December 31, 2023, respectively. The increase in the balance of other current assets was mainly attributable to an increase in prepaid consulting services of $1.0 million, an increase in prepayment to third parties of $15.4 million and a decrease in receivable from third parties of $6.0 million.

*Deposits for property and equipment*

The deposits for property and equipment consists of advance payments for property and equipment. The balance is derecognized once the control of the property and equipment is transferred to and obtained by us.

Compared with December 31, 2023, the balance as of December 31, 2024 increased by $31.6 million, mainly due to the prepayment of $55.9 million for property and equipment and offset by the receipt of property and equipment of $23.2 million.

*Property, plant, and equipment, net*

Property, plant, and equipment primarily consisted of equipment used in our HPC businesses as well as construction in progress representing assets received but not yet put into service.

As of December 31, 2024, the HPC equipment had a net book value of $89.2 million. As of December 31, 2023, construction in progress, included within property and equipment, totaled $51.0 million, representing HPC equipment received but not yet placed into service. This amount was reclassified to property and equipment as the assets were put into service in January 2024.

*Operating lease right-of-use assets and operating lease liability*

As of December 31, 2024, the Company's operating lease right-of-use assets and operating lease liability were $14.5 million and $13.4 million, respectively. As of December 31, 2023, the Company's operating lease right-of-use assets and operating lease liability were $6.2 million and $6.2 million, respectively.

The increase in operating lease right-of-use assets and total operating lease liability of $8.3 million and $7.2 million respectively, were due to the additional leases for $11.0 million and $9.8 million, respectively, partially offset by the amortization of the operating lease right-of-use assets totaling $2.7 million and $2.7 million, respectively, for the year ended December 31, 2024.

*Investment security*

As of December 31, 2024, our portfolio consists of a privately held company via a simple agreement for future equity ("SAFE"). The total balance of our investment security was $1.0 million and $nil as of December 31, 2024, and December 31, 2023, respectively. The increase of $1.0 million in the value of our investment security was mainly driven by the investment of $1.0 million in a SAFE.

*Goodwill*

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in relation of in Enovum acquisition. Refer to Note 11. *Goodwill And Intangible Assets* of our audited combined financial statements for further information. As of December 31, 2024, the Company recorded goodwill in the amount of $19.4 million.

*Intangible Assets*

Intangible assets pertain to customer relationships acquired in connection with the acquisition of Enovum. Refer to Note 11. *Goodwill and Intangible Assets* for further information. As of December 31, 2024, the total balance of intangible assets was $13.0 million.

*Accounts payable*

Accounts payable primarily consists of amounts due for maintenance costs related to HPC services. Compared with December 31, 2023, the balance of accounts payable increased by $2.2 million, largely due to the unpaid bills for our cloud services for the year ended December 31, 2024.

*Deferred revenue*

Deferred revenue pertains to prepayments received from a customer for HPC services.

As of December 31, 2024, the Company's deferred revenue was $30.8 million, compared to $13.1 million as of December 31, 2023. The increase in deferred revenue of $17.7 million reflects a $32.1 million prepayment from a customer for HPC services to be rendered in 2025, partially offset by the recognition of $14.4 million in revenue related to the successful fulfillment of performance obligations from our cloud services commenced in January 2024.

**Non-GAAP Financial Measures**

In addition to combined U.S. GAAP financial measures, we consistently evaluate our use of and calculation of the non-GAAP financial measures, such as EBITDA and Adjusted EBITDA. These non-GAAP financial measures have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. In addition, adjusted EBITDA and Adjusted EBITDA should not be construed as indicators of our operating performance, liquidity or cash flows generated by operating, investing and financing activities, as there may be significant factors or trends that they fail to address. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.

EBITDA is computed as net income before interest, taxes, depreciation, and amortization. Adjusted EBITDA is a financial measure defined as our EBITDA adjusted to eliminate the effects of certain non-cash and / or non-recurring items that do not reflect our ongoing strategic business operations, which management believes results in a performance measurement that represents a key indicator of the Company's core business operations. The adjustments currently include fair value adjustments such as non-cash share-based compensation expenses.

We believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making such adjustments.

Adjusted EBITDA is provided in addition to and should not be considered to be a substitute for, or superior to net income, the comparable measures under U.S. GAAP. Further, Adjusted EBITDA should not be considered as an alternative to revenue growth, net income, diluted earnings per share or any other performance measure derived in accordance with U.S. GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider such measures either in isolation or as substitutes for analyzing our results as reported under U.S. GAAP.

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric for the three months ended March 31, 2025 and 2024 are presented in the table below:

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| **Reconciliation of non-GAAP income from operations:** |  |  |
| **Net income** | $1427836 | $826510 |
| Depreciation and amortization expenses | 3829644 | 2881527 |
| Income tax expenses | 594603 | 190341 |
| **EBITDA** | **5852083** | **3898378** |
| **Adjustments:** |  |  |
| Share based compensation expenses | 138013 | 91158 |
| **Adjusted EBITDA** | $**5990096** | $**3989536** |

---

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric for the historical periods are presented in the tables below:

---

| | | |
|:---|:---|:---|
|  | **For the <br> Year Ended <br> December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Reconciliation of non-GAAP income from operations:** | | |
| **Net income (loss)** | $1369842 | $(1225949) |
| Depreciation and amortization expenses | 16511406 |  |
| Income tax expenses | 874177 | 1827 |
| **EBITDA** | **18755425** | **(1224122)** |
| **Adjustments:** |  |  |
| Share based compensation expenses | 3170697 | 853074 |
| **Adjusted EBITDA** | $**21926122** | $**(371048)** |

---

**Liquidity and capital resources**

As of March 31, 2025, our principal sources of liquidity were cash and cash equivalents, restricted cash and accounts receivable of $15.3 million.

As of March 31, 2025, we had working capital of $6.0 million as compared to working capital of $0.7 million as of December 31, 2024. Working capital is the difference between the Company's current assets and current liabilities.

Historically, as part of Bit Digital, the Company relied on Bit Digital to meet its working capital and financing requirements prior to generating revenue. Since launching our cloud services in January 2024, we have achieved positive cash flows from operations. To date, we have primarily funded our operations through operating cash flows and equity financing provided by Bit Digital via public and private securities offerings of Bit Digital's ordinary shares.

Following the Reorganization, our capital structure and sources of liquidity will change from our historical capital structure because we will no longer participate in Bit Digital's cash management process. The Company's ability to fund its operating needs in the future will depend on the ongoing ability to generate positive cash flow from our operations and raise capital in the capital markets on our own. Based upon our history of generating strong cash flows, we believe that we will be able to meet our short-term liquidity needs.

We believe that our cash on hand and anticipated cash from operations, together with the expected net proceeds from this offering, will be sufficient to finance our operations for at least the next twelve months from the date of this prospectus. However, there can be no assurance that we will not require additional financing or that future financing can obtain these funds on acceptable terms or at all or that we can maintain or increase our current revenues.

Our future capital requirements will depend on many factors, including the revenue growth rate, the success of future product development and capital investment required, and the timing and extent of spending to support further sales and marketing and research and development efforts. In addition, we expect to incur additional costs as a result of operating as a public company. In the event that additional financing is required from outside sources, we cannot be sure that any additional financing will be available to us on acceptable terms if at all. If we are unable to raise additional capital when desired, our business, operating results, and financial condition could be adversely affected.

***Cash flows***

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2025** | **2024** |
| Net Cash Used in Operating Activities | $(2933953) | (3399600) |
| Net Cash Used in Investing Activity | (50165143) | (63062) |
| Net Cash Provided by Financing Activity | 49974548 | 9289559 |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (3124547) | 5826897 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 535795 |  |
| Cash, cash equivalents and restricted cash, beginning of year | 15404776 | 652566 |
| Cash, cash equivalents and restricted cash, end of year | $12816024 | 6479463 |

---

*Operating Activities*

Net cash used in operating activities was $2.9 million for the three months ended March 31, 2025, derived mainly from (i) a net income of $1.4 million for the three months ended March 31, 2025 adjusted for depreciation expenses of property and equipment of $3.8 million and (ii) net changes in our operating assets and liabilities, principally comprising of a decrease in deferred revenue of $9.5 million, a decrease in other current assets of $10.2 million, an increase in accounts receivable of $2.7 million, an decrease in accounts payable of $1.0 million, a decrease in other long-term liabilities of $0.2 million, an increase in other payables and accrued liabilities of $9.7 million, an increase in net investment in lease of $0.6 million, decrease in lease liability of $1.0 million, and an increase in deferred tax liability of $0.6 million.

Net cash used in operating activities was $3.4 million for the three months ended March 31, 2024, derived mainly from (i) a net income of $0.8 million for the three months ended March 31, 2024 adjusted for depreciation expenses of property and equipment of $2.9 million and (ii) net changes in our operating assets and liabilities, principally comprising of a decrease in deferred revenue of $9.3 million, an increase in other current assets of $3.6 million, a decrease in other non-current assets of $0.1 million, an increase in accounts payable of $3.3 million, a decrease in other payables and accrued liabilities of $5.0 million, an increase in net investment in lease of $0.2 million, and an increase in deferred tax liability of $0.2 million.

*Investing Activity*

Net cash used in investing activity was $50.2 million for the three months ended March 31, 2025, attributable to purchases of and deposits made for property, plant, and equipment of $50.2 million.

Net cash used in investing activity was $0.1 million for the three months ended March 31, 2024, primarily attributable to purchases of and deposits made for property, plant, and equipment of $0.1 million.

*Financing Activity*

Net cash provided by financing activity was $50.0 million the three months ended March 31, 2025, attributable to net transfers from parent of $50.0 million.

Net cash provided by financing activity was $9.3 million for the three months ended March 31, 2024, attributable to net transfers from parent of $9.3 million.

***Cash flows for the year ended December 31, 2024 and for the Period from October 19, 2023 to December 31, 2023***

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended <br> December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Net Cash Provided by Operating Activities | $18436553 | $4934416 |
| Net Cash Used in Investing Activities | (80026998) | (55158038) |
| Net Cash Provided by Financing Activities | 76437919 | 50876188 |
| Net increase in cash, cash equivalents and restricted cash | 14847474 | 652566 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (95264) |  |
| Cash, cash equivalents and restricted cash, beginning of year | 652566 | - |
| Cash, cash equivalents and restricted cash, end of year | $15404776 | $652566 |

---

*Operating Activities*

Net cash provided from our operating activities was $18.4 million for the year ended December 31, 2024, derived mainly from (i) a net income of $1.4 million for year ended December 31, 2024 adjusted for depreciation expenses of property and equipment of $16.5 million and (ii) net changes in our operating assets and liabilities, principally comprising of an increase in deferred revenue of $17.2 million, an decrease in other current assets of $4.5 million, decrease in accounts receivable of $4.7 million, an increase in accounts payable of $0.4 million, a decrease in other long-term liabilities of $1.1 million, an increase in income tax payable of $1.0 million, a decrease in other payables and accrued liabilities of $1.7 million, a decrease in net investment in lease of $4.8 million and a decrease in lease liability of $2.7 million.

Net cash provided from our operating activities was $4.9 million for the period from October 19, 2023 to December 31, 2023, derived mainly from (i) a net loss of $1.2 million for the period from October 19, 2023 to December 31, 2023 and (ii) net changes in our operating assets and liabilities, principally comprising of an increase in deferred revenue of $13.1 million, a decrease in other current assets of $14.9 million, a decrease in other non-current assets of $2.0 million, an increase in accounts payable of $0.1 million, an increase in other long-term liabilities of $1.9 million, an increase in other payables and accrued liabilities of $8.0 million.

*Investing Activities*

Net cash used in investing activities was $80.0 million for the year ended December 31, 2024, primarily attributable to purchases of and deposits made for property and equipment of $79.0 million and investment in a SAFE of $1.0 million.

Net cash used in investing activities was $55.2 million for the period from October 19, 2023 to December 31, 2023, primarily attributable to purchases of and deposits made for property and equipment of $55.2 million.

*Financing Activity*

Net cash provided by financing activity was $76.4 million for the year ended December 31, 2024, attributable to net transfers from parent of $76.4 million.

Net cash provided by financing activity was $50.9 million for the period from October 19, 2023 to December 31, 2023, attributable to net transfers from parent of $50.9 million.

**Royal Bank of Canada Credit Facility**

On June 18, 2025, our wholly-owned subsidiary Enovum and its subsidiaries entered into a definitive credit agreement (the "Facility") with the Royal Bank of Canada ("RBC"). The Facility provides for an aggregate of up to approximately CAD $60 million (approximately USD $43.8 million) of financing. The proceeds are to be used primarily to refinance the buildout of WhiteFiber's Tier-3 AI data center at 7300 Trans Canada Highway, Pointe-Claire, Quebec ("MTL-2") as well as USD $5.8 million of revolving term financing (the "Revolver"). The Facility is non-recourse to WhiteFiber and Bit Digital. Enovum entered into a three-year USD $18.5 million non-revolving lease facility to finance specific equipment costs, including related installation costs, building improvements and soft costs, and/or sale and leasing of existing equipment. The lease facility provides for straight-line amortization of six years and capital moratorium of six months after disbursement is complete. RBC may cancel any unutilized portion of the facility after March 31, 2026. The interest rate is fixed based on the rental rate determined by RBC for the three-year term of the lease.

As part of the Facility, Enovum entered into a three-year USD $19.6 million non-revolving real estate term loan facility. The purpose of this facility is to refinance the Company's purchase of MTL-2. The interest rate is to be determined at the time of borrowing, or a floating interest rate ranging from RBP plus 0.75% to CORRA ("Canadian Overnight Repo Rate Average") plus 250 bps. Payment of principal and interest is due 30 days after drawdown and is repayable in full on the last day of the three-year term.

The Revolver is being provided by RBC by way of Letters of Credit and Letters of Guaranty with fees to be determined on a transaction by transaction basis. This facility will be available for the 36 month term subject to the issuance of the EDC (Export and Development Canada) Performance Security Guaranty in the amount of USD $5.8 million and other related supporting documents. Enovum agreed to certain financial covenants included maintaining on a combined basis between MTL-1 and MTL-2: fixed charge coverage of not less than 1.20:1 and a ratio of Net Funded Debt to EBITDA of not greater than 4.25:1 and decreasing to 3.50:1 from December 31, 2027. A copy of the facility has been filed as an exhibit to the registration statement of which this prospectus forms a part with certain sensitive information not involving the terms omitted).

**Off-Balance Sheet Arrangements**

During the periods presented, we did not have any off-balance sheet arrangements.

**Critical Accounting Policies and Estimates**

Our discussion and analysis of our financial condition and results of operations are based upon our combined financial statements. These financial statements are prepared in accordance with U.S. GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of our assets, liabilities, revenues, and expenses, to disclose contingent assets and liabilities on the dates of the combined financial statements, and to disclose the reported amounts of revenues and expenses incurred during the financial reporting periods. The most significant estimates and assumptions include, but are not limited to, the valuation of current assets, useful lives of property, plant, and equipment, impairment of long-lived assets, intangible assets and goodwill, valuation of assets and liabilities acquired in business combinations, provision necessary for contingent liabilities and realization of deferred tax assets. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these evaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates as a result of changes in our estimates. Some of our accounting policies require higher degrees of judgment than others in their application. We believe critical accounting policies as disclosed in this release reflect the more significant judgments and estimates used in preparation of our combined financial statements.

**Recently Issued Accounting Pronouncements**

There have been no recently issued accounting pronouncements that have had, or are expected to have, a material impact on our results of operations, financial position and/or cash flows.

**Emerging Growth Company Status**

We are an "emerging growth company," as defined in the JOBS Act, enacted in April 2012. We intend to take advantage of certain exemptions under the JOBS Act from various public company reporting requirements, including not being required to have our internal control over financial reporting audited by our independent registered public accounting firm pursuant to Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved. In addition, an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this provision of the JOBS Act. As a result, we will not be subject to new or revised accounting standards at the same time as other public companies that are not emerging growth companies. Therefore, our consolidated financial statements may not be comparable to those of companies that comply with new or revised accounting pronouncements as of public company effective dates.

We will remain an emerging growth company and may take advantage of these exemptions until the earliest of: (i) the last day of the fiscal year following the fifth anniversary of the consummation of this offering; (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion; (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our Ordinary Shares held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year; or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

**Quantitative and Qualitative Disclosures About Market Risk**

We are exposed to market risk in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. The primary market risks we are exposed to include interest rate risk, foreign currency risk, and, to a lesser extent, commodity price risk related to energy costs.

*Interest Rate Risk*. We may from time to time finance data center development with variable-rate debt. In such cases, increases in interest rates may raise our cost of capital and reduce cash flow available for reinvestment or distribution. As of the date of this prospectus, we had no variable-rate debt outstanding, but we may enter into such arrangements in the future.

*Foreign Currency Risk*. A portion of our operations are conducted outside the United States, particularly in Canada and Iceland, and certain expenses and revenues may be denominated in foreign currencies. As such, fluctuations in exchange rates could impact our reported results of operations. We have not historically engaged in foreign currency hedging but may do so in the future.

*Commodity and Power Price Risk*. Our colocation and cloud services rely on stable access to electricity. Although we seek to secure long-term, fixed-rate power agreements where possible, we may be exposed to fluctuations in regional power markets or capacity delays, which could impact cost of service and margins.

*Hardware Supply and Pricing Risk*. Our cost of goods sold for cloud services depends on the procurement of specialized hardware, particularly GPUs. Fluctuations in global chip supply or pricing may impact our capital expenditure requirements or gross margins.

**BUSINESS**

*Some of the statements in this prospectus constitute forward-looking statements. See the section titled "Cautionary Statement Regarding Forward-Looking Statements." Unless the context otherwise requires, the terms "WhiteFiber, Inc.," "the Company," "we," "us," and "our" in this prospectus refer to WhiteFiber, Inc. an exempted company with limited liability incorporated and registered in the Cayman Islands and our combined subsidiaries after giving effect to the Reorganization. Bit Digital, Inc. ("Bit Digital"), an exempted company with limited liability incorporated and registered in the Cayman Islands and our parent company, has entered into a Contribution Agreement to transfer 100% of the capital shares of its subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc. and WhiteFiber Iceland, ehf (collectively, "WhiteFiber AI") to the Company upon the effectiveness of the registration statement of which this prospectus is a part (collectively, the "Contribution"). This section assumes the Contribution has occurred.* 

**Our Business**

We believe we are a leading provider of artificial intelligence ("AI") infrastructure solutions. We own high-performance computing ("HPC") data centers and provide cloud-based HPC graphics processing units ("GPU") services, which we term cloud services, for customers such as AI application and machine learning ("ML") developers (the "HPC Business"). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference. In connection with this offering, we are being carved out of Bit Digital, Inc. and will operate as a separate public company upon the completion of this offering.

Starting in October 2024, we significantly expanded our data center operations and capabilities by acquiring Enovum, a Tier-3 HPC data center platform based in Montreal, Canada. We currently operate a 4 MW (gross) AI data center located in Montreal, Canada ("MTL-1"). MTL-1 is a fully operational Tier-3 data center that is designed for HPC workloads. MTL-1's full capacity is occupied by 14 customers under lease agreements with an average duration of approximately 30 months as of May 30, 2025. On December 27, 2024, we acquired the real estate and building for a build-to-suit 5 MW (gross) Tier-3 data center expansion project in Montreal ("MTL-2").

On April 11, 2025 we announced that we had secured the rights to a new data center site in Saint-Jérôme, Québec, a suburb of Montreal ("MTL-3"), which will be a 7 MW (gross) Tier-3 data center. Subject to our receipt of all required permits, MTL-3 will support a previously announced 5 MW (IT load) colocation agreement with Cerebras Wafer Scale ULC Systems ("Cerebras"), a leader in generative AI infrastructure.

On May 20, 2025, we purchased a former industrial/manufacturing building together with the underlying land outside of Greensboro, North Carolina (the "Property"), which we intend to retrofit to create an HPC data center ("NC-1"). Pursuant to a Capacity Agreement between Enovum and Duke Energy, Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025, 40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of May 16, 2025. Management believes based upon its review of the site and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

MTL-2, MTL-3 and NC-1 were identified and sourced through our confidential pipeline of development or acquisition opportunities under letters of intent or evaluation, which continues to grow and expand geographically throughout North America. The MTL-2 data center is expected to be completed and operational in the fourth quarter of 2025 with a one-month delay before it begins to generate revenue. MTL-3 is expected to be completed and operational in the fourth quarter of 2025 with a one-month delay before it begins to generate revenue. We estimate that the initial capacity of 24 MW (gross) for the NC-1 site will be completed and operational in the first quarter of 2026. Management expects the NC-1 site will start to generate revenue in May 2026. The MTL-2, MTL-3 and NC-1 facilities are in various stages of being retrofitted into data centers. The foregoing timelines and capacities are subject to change based on many factors required in order to commence operations, many of which are outside of our control. The construction phases associated with the completion of the applicable facility are done in parallel in a process defined as commissioning. This work consists of the buildout of interior systems and mechanical, electrical and regulatory construction. Once all building systems perform interactively according to "design intent," the commissioning is complete and the facility can be turned on.

Based on their collective industry experience, our WhiteFiber data center team is adept at bringing new sites online on an accelerated timeline. We are aggressively pursuing our development pipeline and expect to add 12 MW (gross) of capacity, inclusive of the MTL-2 and MTL-3 sites, for total capacity of approximately 16 MW (gross), by the end of 2025. Management expects another 24 MW (gross) will be energized in the first quarter of 2026 and that an incremental 16 MW (gross) will be energized in the second quarter of 2026 for a total of 40 MW (gross) at the NC-1 site by the end of the second quarter of 2026. We intend to achieve an estimated 76 MW (gross) of total HPC data center capacity by the end of the fourth quarter of 2026, a target that is underpinned by assets including our MTL-2, MTL-3, and NC-1 facilities plus 20 MW (gross) of power that we expect to deliver from our confidential pipeline or through accelerating the number of energized MWs at NC-1 as compared to the timeline provided in the Capacity Agreement. As of June 30, 2025, our pipeline of potential data center projects represents approximately 1,300 MW (gross) under management review, including approximately 800 MW (gross) under non-binding and exclusive letters of intent, which may complement and accelerate future expansion. We follow a disciplined process prioritizing projects that are backed by customer lease commitments. In select cases, we may pursue early-stage acquisitions based on strong customer demand signals and defined commercialization pathways. Our ability to achieve our targeted MW capacity is conditioned upon our ability to obtain additional equity and/or debt financing, in addition to this offering.

In addition to providing highly desirable data center hosting capacity to our customers, our business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Our integrated approach aligns specialized data center operations with GPU-focused cloud services, addressing the unique requirements of AI and ML workloads. These workloads demand greater power density, advanced cooling solutions, and robust bandwidth to handle large-scale data transfers. By operating our data centers, we are able to provide the power to support our cloud services and we believe we can better meet the needs of AI and ML workloads and reduce the complexity associated with procuring power and connectivity from external vendors. We can also design our facilities to accommodate the higher heat loads generated by modern GPUs, potentially shortening deployment timelines for customers who require rapid expansion of their computing infrastructure. From a financial standpoint, our vertically integrated solution allows us to capture additional margin for both our data center and cloud services businesses, avoiding expenses that would otherwise be due to third-party providers.

Our WhiteFiber cloud services business provides cutting-edge, bespoke services involving a sophisticated array of computers and chips, including NVIDIA GPUs, servers, network equipment, and data storage solutions. We believe we provide our cloud services customers with the highest levels of performance and reliability while offering flexibility to scale with customer needs. We have developed a software layer to be integrated into our cloud services solutions that will assist our customers in the deployment of AI applications with superior performance. We currently offer our cloud services at a data center maintained by a third-party colocation provider in Iceland (the "Iceland Data Center") and are negotiating with third-party providers to seamlessly integrate our cloud services at data centers across key regions in Europe, North America and Asia. In the fourth quarter of 2023, we secured our first cloud customer through a three-year service agreement to provide services using our advanced AI equipment. For the three months ended March 31, 2025 and 2024, our WhiteFiber cloud service business recognized revenue of $14.8 million and $8.1 million, respectively. Such revenue for the 12 months ended December 31, 2024 and 2023 was $45.7 million and $0, respectively. As of June 30, 2025, WhiteFiber had approximately 4,500 NVIDIA GPUs deployed, with approximately 4,000 GPUs under contract.

**Reorganization and Relationship with Bit Digital**

We are currently a wholly-owned subsidiary of Bit Digital. We intend to sell approximately 20% of our issued and outstanding Ordinary Shares to the public as part of this offering. We will enter into a Contribution Agreement with Bit Digital, pursuant to which Bit Digital will contribute its HPC business through the transfer of 100% of the capital shares of its cloud services subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc. and WhiteFiber Iceland, ehf, to the Company, upon the effectiveness of the registration statement of which this prospectus is a part and prior to the consummation of this offering (the "Contribution"). In connection with the Contribution, we will issue Ordinary Shares to Bit Digital (or up to Ordinary Shares to Bit Digital, if the underwriters' over-allotment option is exercised in full, which may occur at any point during the 30 days after the consummation of this offering), such that Bit Digital will own approximately 80% of our issued and outstanding Ordinary Shares upon the consummation of this offering (the "Bit Digital Issuance" and, collectively with the Contribution, the "Reorganization").

Following this offering, certain of our directors, executive officers and other members of senior management will continue to serve as directors, officers and employees of Bit Digital. We have added additional executive officers and senior management to our senior executive team apart from those serving as officers and employees of Bit Digital. We have assembled a senior operating team with approximately 15 years of experience on average for each individual in the data center and cloud services industries. We intend to appoint additional independent directors upon the commencement of trading of our Ordinary Shares and will consider adding other professionals to our executive ranks in the future.

***Reasons for the Reorganization and this Offering***

In addition to providing highly desirable data center hosting capacity to our customers, our business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Our integrated approach aligns specialized data center operations with GPU-focused cloud services, addressing the unique requirements of AI and ML workloads. These workloads demand greater power density, advanced cooling solutions, and robust bandwidth to handle large-scale data transfers. By operating our data centers, we are able to provide the power to support our cloud services and we believe we can better meet the needs of AI and ML workloads and reduce the complexity associated with procuring power and connectivity from external vendors. We can also design our facilities to accommodate the higher heat loads generated by modern GPUs, potentially shortening deployment timelines for customers who require rapid expansion of their computing infrastructure. From a financial standpoint, our vertically integrated solution allows us to capture additional margin for our cloud services business, avoiding expenses that would otherwise be due to third-party providers.

***Capital allocation optimization.*** The Reorganization will allow for the breakout of our financial results, which will facilitate evaluation of our HPC Business. In turn, this will enable investors to separately value WhiteFiber and Bit Digital based on their distinct operating and investment identities. We believe that this may increase the availability and reduce the cost of capital for us.

***Risk Reduction.*** Separating our HPC Business from the digital assets business of Bit Digital is a crucial strategic move to insulate the HPC Business from the inherent risks associated with the volatile digital assets industry. The cryptocurrency industry's inherent risks include sudden market downturns, regulatory changes, and fluctuating asset values, all of which can have a substantial impact on overall financial health.

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***Exigency.*** The board of directors of Bit Digital deems the separation of the HPC Business from the digital assets business urgent in order to unlock what Bit Digital believes may be significant financial and operational value for shareholders. We believe that the HPC business is well-positioned for rapid growth and requires capital for expansion.

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***Alignment of incentives with performance objectives.*** This offering will facilitate equity-based and other incentive compensation arrangements for employees more directly tied to the performance of each business, and enhance employee hiring and retention by, among other things, improving the alignment of management and employee incentives with performance and growth objectives.

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**HPC Business** 

*WhiteFiber data centers*

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We design, develop, and operate data centers, through which we offer our hosting and colocation services. Our operational data centers meet the requirements of the Tier-3 standard, including N+1 redundancy architecture, concurrent maintainability, uninterruptible power supply, advanced and highly reliable cooling systems, strict monitoring and management systems, 99.982% uptime and no more than 1.6 hours of downtime annually, service organization control SOC 2 Type 2, differentiated software supporting AI workloads, high density and robust bandwidth, and infrastructure to support AI workloads.

We acquired Enovum on October 11, 2024. The transaction included the lease to MTL-1, a fully operational and fully leased to customers 4 MW (gross) Tier-3 datacenter headquartered in Montreal, Canada. As of May 30, 2025, MTL-1 hosts over 5,000 GPUs, including NVIDIA H200s and H100s, on behalf of 14 customers across a variety of end markets.

On December 27, 2024, we acquired the real estate and building for a build-to-suit 5 MW (gross) Tier-3 data center expansion project near Montreal, Canada, which we refer to as MTL-2. MTL-2, a 160,000 square foot site that was previously used as an encapsulation manufacturing facility, is located in Pointe-Claire, Quebec. We initially funded the purchase of CAD $33.5 million (approximately USD $23.3 million) with cash on hand. We expect to invest approximately USD $23.6 million to develop the site to Tier-3 standards with an initial load of 5 MW (gross). MTL-2 is expected to be completed and operational in the fourth quarter of 2025 with a one-month delay before it begins to generate revenue.

As an example of the increasing demand for high density, AI-optimized colocation, in January 2025 we entered into a five-year colocation agreement with Cerebras, a leading AI hardware innovator. Cerebras is a pioneering Wafer Scale technology, which enables ultra-fast AI interface or some of the largest and most complex AI workloads in the world. Cerebras is launching six new data center sites in North America and chose WhiteFiber to be its partner for its first Canadian data center. Under the agreement, we will provide Cerebras 5 MW (IT load) of built-to suit data center infrastructure for a period of five years. The contract is expected to be fulfilled at MTL-3. Cerebras was granted a right of first refusal to purchase additional power capacity that becomes available at the MTL-3 site pursuant to the terms and conditions of the agreement.

In April 2025, we entered into a lease for MTL-3. The MTL-3 facility spans approximately 202,000 square feet on 7.7 acres and is being developed as a 7 MW (gross) Tier-3 data center. It will support current contracted capacity with Cerebras (5 MW IT Load), with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure which includes an exclusive fixed-price purchase option of CAD $24.2 million (approximately USD $17.3 million) exercisable by December 2025. The lease term is 20 years, with two 5-year extensions at our option. Subject to our receipt of all required permits, the facility is being retrofitted to Tier-3 standards, with development costs expected to total approximately USD $41 million, and is expected to be completed and operational in the fourth quarter of 2025, with a one-month delay before we expect to begin to generate revenue. We believe that our agreement with Cerebras demonstrates our ability to deliver sophisticated, high-performance colocation solutions tailored for next-generation AI workloads. We intend to support Cerebras's computing needs with our expertly designed data center infrastructure, delivering the reliability and scalability essential for AI innovation.

On May 20, 2025 (the "Closing Date"), we completed the purchase of NC-1, a former industrial/manufacturing building outside of Greensboro, North Carolina, as well as certain machinery and equipment located thereon, for a cash purchase price of $45 million. The purchase price will increase by (i) $8 million, if Duke Energy actually provides, or provides an Electric Services Agreement providing for, at least 99 MW (gross) within two years of the Closing Date or (ii) $5 million, if Duke Energy actually provides, or provides an Electric Services Agreement providing for, at least 99 MW (gross) more than two years but less than three years after the Closing Date. Additionally, the purchase price will increase by an additional $200,000 per MW over 99 MW (gross) up to a maximum of $5 million if at least 99 MW (gross) are actually delivered, or Duke Energy provides an Electric Services Agreement for the provision of at least 99 MW (gross), within four years of the Closing Date. Separately, we entered into the Capacity Agreement with Duke Energy pursuant to which Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025, 40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of May 16, 2025. Management believes based upon its review of the site and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

Based on initial capital investment projections, the project has been confirmed as a qualifying data center in the State of North Carolina and, will therefore be eligible for certain sales and use tax exemptions. Throughout the site selection process the Company has been working closely with local and state officials, economic development agencies, and utility partners whose collaboration has been instrumental in advancing the project. Separately, the Company entered into a Letter Agreement for the Purchase of Electric Power with Duke Energy dated May 16, 2025 (the "Capacity Agreement"). Pursuant to the Capacity Agreement, Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW (gross) of service to the Property by September 1, 2025, 40 MW (gross) by April 1, 2026 and 99 MW (gross) within four years of the effective date of the Capacity Agreement. Management believes based upon its review of the site and a Duke Energy preliminary transmission study, that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and certain other conditions. The Company used cash on hand to close the purchase, and expects to engage in a commercial mortgage financing process for the site.

We have developed a software capability, called WhiteFiber Cloud AI, which is intended to link GPU clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius of approximately 80 kilometers. One of the first customers to utilize this application is the platform Shadeform. Shadeform provides an AI compute marketplace where customers can request paid access to compute resources. By productizing cross-data center operation, we intend to create a single supercluster, enabling us to sidestep potential fragmentation problems and dynamically "borrow" compute or storage resources from any site. We believe that this approach will enable us to overcome scale limitations, optimize performance and provide built-in redundancy.

We believe that our HPC data center development and operating model provides highly attractive unit economics for our investors. We estimate that our capital expenditure requirement to develop a cutting edge, Tier-3 data center is between $7 and $9 million per gross MW, which excludes a targeted real estate acquisition cost of approximately $1 million per gross MW. Consistent with common industry practice, we anticipate that approximately 70% of this capital expenditure budget will be financed with facility-level debt, with the remaining capital expenditure requirement to be equity financed. Based on ongoing discussions with prospective customers, we anticipate that the average contract term for our AI and ML-focused enterprise and GPU compute customers will be 30 months to 7 years. If a data center project is able to achieve our estimates of approximately $1 million of real estate acquisition costs per gross MW, approximately $8 million of development cost per gross MW, approximately $1.6 million in revenue per gross MW, an EBITDA margin of approximately 75%, and a disposition cap rate of approximately 7.0% on a five-year holding period, we estimate such data center project will yield an unlevered pre-tax return of approximately 30%.

*WhiteFiber Cloud Services* 

We provide specialized cloud services to support generative AI workstreams, especially training and inference, emphasizing cost-effective utility and tailor-made solutions for each client. We are an authorized NVIDIA Preferred Partner through the NPN, an authorized partner with Super Micro Computer Inc.®, an authorized Communications Service Provider ("CSP") with Dell (through Dell's exclusive distributor in Iceland, Advania), an official partnership with Hewlett Packard Enterprise, and a commercial relationship with Quanta Computer, Inc. ("QCT"). Based on management's knowledge of the industry, we are proud to be among the first service providers to offer H200, B200, and GB200 servers. We provide a high-standard service level with an Uptime Percentage\* ≥ 99.5%. 

In March 2025, we entered a strategic partnership with Shadeform, Inc. the premier multi-cloud GPU marketplaces to bring on-demand NVIDIA B200 GPUs to customers beginning in April 2025. This partnership combines WhiteFiber's next-generation AI/ML optimized GPU cloud services with Shadeform's expansive, multi-cloud management capabilities, and GPU marketplace. This partnership arrangement is intended to provide organizations and developers in more than 100 regions worldwide with immediate access to cutting-edge high-performance AI infrastructure that was previously out of reach due to up-front costs and long-term commitments.

The economics of our cloud services business have historically driven attractive returns. If our cloud service business is able to achieve our estimates of costs of approximately $42,000 for a B200 GPU that generates approximately $20,000 of revenue in year one at an EBITDA margin between 75% and 80%, we believe that we can generate an unlevered pre-tax IRR of approximately 30%.

We are actively engaged in research and development efforts to enhance our cloud services capabilities for our customers. For example, we developed WhiteFiber Cloud AI, which is intended to link GPU clusters across multiple sites, leveraging existing dark fiber networks connecting smaller data centers within a radius of approximately 80 kilometers. This will provide significant flexibility as scaling is required to accelerate development of AI applications. In addition, we are working on advanced interconnect technologies like InfiniBand ("IB") or RDMA over Converged Ethernet ("RoCE"). When combined with cross-data center links, these ensure that training jobs can be distributed without bottlenecks or high latency. We expect that such enhancements will be implemented across our customer base in the fourth quarter of 2025. By emphasizing scale, performance, and reliability, we believe that we will be positioned to maximize customer retention while pricing our services at a premium to those offered by our competitors.

We expect to leverage a global network of data centers for hosting capacity for our GPU business, in many instances, by negotiating with third-party providers to seamlessly integrate our cloud services at data centers across key regions in Europe, North America and Asia. Our initial data center partnership through which we lease capacity is at Blönduós Campus, Iceland, offering a world-class operations team with certified technicians and reliable engineers. The facility has 45kW rack density and 6 MW (gross) total capacity. We have executed contracts for 5 MW (IT load) at the data center. The center's energy source is 100% renewable energy, mainly from Blanda Hydro PowerStation, the winner of an IHA Blue Planet Award in 2017. On October 23, 2023, Bit Digital announced that it had commenced AI operations by signing a binding term sheet with a customer (the "Initial Customer") to support the customer's GPU workloads. In January 2025, we executed a new agreement to supply the Initial Customer 464 B200 GPUs for an 18 month term beginning on June 30, 2025, worth approximately $15 million of targeted annualized revenue assuming the Initial Customer utilizes the GPUs at full capacity for the duration of the contract. The Initial Customer elected to defer the commencement date until August 20, 2025, which is the latest date under the agreement. As of June 30, 2025, we have eight contracted customers.

As of June 30, 2025, we had eight active cloud service customers. The majority of our customers are running single-digit servers, with annualized recurring revenue (ARR) of less than $1 million. Our growth strategy has been to onboard customers and scale development over time. Our cloud services run-rate is approximately $73 million as of June 30, 2025. Our ARR is expected to increase by approximately $15 million at the end of August 2025 when we expect to deploy 464 B200 GPUs to our Initial Customer.

The following summaries reflect selected GPU cloud service agreements that we consider to be material or representative. We have entered into additional agreements that are not individually material and are not included in the list below.

On October 23, 2023, Bit Digital announced that it had commenced AI operations by signing a binding term sheet with a customer (the "Initial Customer") to support the customer's GPU workloads. In January 2025, we executed a new agreement to supply the Initial Customer 464 B200 GPUs for an 18 month term beginning on June 30, 2025, worth approximately $15 million of targeted annualized revenue assuming the Initial Customer utilizes the GPUs at full capacity for the duration of the contract. The Initial Customer elected to defer the commencement date until August 20, 2025, which is the latest date under the agreement. As of June 30, 2025, we have eight contracted customers. The initial MSA, together with an Omnibus Amendment to and Novation of Master Services Agreement and Purchase Order dated as of December 12, 2023 (each as redacted under confidential treatment), have been filed as Exhibit 10.6 and 10.5, respectively, with the Registration Statement of which this prospectus forms a part.

On December 12, 2023, we finalized a Master Services and Lease Agreement ("MSA"), as amended, with our Initial Customer for the provision of cloud services from a total of 2,048 GPUs over a three-year period. To finance this operation, we entered into a sale-leaseback agreement with a third party, selling 96 AI servers (equivalent to 768 GPUs) and leasing them back for three years. The total contract value with the Initial Customer for the aggregated 2,048 GPUs was estimated to be worth more than $50 million of annualized revenue. On January 22, 2024, approximately 192 servers (equivalent to 1,536 GPUs) were deployed at a specialized data center and began generating revenue, and subsequently on February 2, 2024, approximately an additional 64 servers (equivalent to 512 GPUs) also started to generate revenue.

In the second quarter of 2024, we finalized an agreement to supply our Initial Customer with an additional 2,048 GPUs over a three-year period. To finance this operation, we entered into a sale-leaseback agreement with a third party, agreeing to sell 128 AI servers (equivalent to 1,024 GPUs) and leasing them back for three years. In late July 2024, at the customer's request, we agreed with the customer to temporarily delay the purchase order so the customer could evaluate an upgrade to newer generation NVIDIA GPUs. Consequently, the Company and manufacturer postponed the purchase order. In early August 2024, the customer made a non-refundable prepayment of $30.0 million for the services to be rendered under this agreement.

In January 2025, the Company entered into a new agreement to supply its Initial Customer with an additional 464 GPUs for a period of eighteen months. This new agreement replaces the prior agreement whereby the Company was to provide the customer with an incremental 2,048 H100 GPUs. The contract represents approximately $15 million of annualized revenue and features a two-month prepayment from the customer. The customer his elected to defer the commencement date until August 2025, which is the latest available date under the agreement.

In August 2024, we executed a binding term sheet with Boosteroid Inc. ("Boosteroid"), a global cloud gaming provider, pursuant to which we finalized initial orders of 489 GPUs, projected to generate approximately $7.9 million in revenue in the aggregate through November 2029, assuming Boosteroid utilizes the GPUs at full capacity for the duration of the contract. The GPUs were delivered to respective data centers across the U.S. and Europe and began earning revenue in November 2024. On October 9, 2024, we executed a Master Services and Lease Agreement (the "MSA") with Boosteroid, pursuant to which Boosteroid may, from time to time, lease certain equipment, including GPUs, from the Company upon delivery of a purchase order. The MSA provides the general terms and conditions for such equipment leases. Pursuant to the MSA, we are granted a right of first refusal with respect to the next 5,000 servers that Boosteroid leases during the term of the MSA. The MSA provides Boosteroid with the option to expand in increments of 100 servers up to 50,000 servers, representing a revenue opportunity of $700 million over the five-year term assuming Boosteroid utilizes the GPUs and services at full capacity for the duration of the contract. Expansion depends upon the internal development roadmap of Boosteroid. Boosteroid has full discretion to decide when and the quantity to pursue separate source orders (for GPU servers) under the MSA.

On November 6, 2024, we entered into a Master Services Agreement ("MSA") with a minimum purchase commitment of 16 GPUs, along with an associated purchase order, from a new customer. The purchase order provides for services utilizing a total of 16 H200 GPUs over a minimum of a six month period, representing total revenue of approximately $320,000 for the term. The deployment commenced on November 7, 2024, using the Company's existing inventory of H200 GPUs.

On November 14, 2024, we entered into a Terms of Supply and Service Level Agreement (together, the "Agreement") and an Order Form with a new customer. The order form provides for services utilizing a total of 64 H200 GPUs on a month-to-month basis, which either party may terminate upon at least 14 days' written notice prior to any renewal date. It represents annual revenue of approximately $1.2 million. The deployment commenced and revenue generation began on November 15, 2024, using the Company's existing inventory of H200 GPUs.

On December 30, 2024, we entered into a Master Services Agreement ("MSA") with a minimum purchase commitment of 32 GPUs, along with an associated purchase order, from a new customer, an AI Compute Fund managed by DNA Holdings Venture Inc. The purchase order provides for services utilizing a total of 576 H200 GPUs over a 25 month period automatically renewable for 12 month periods unless terminated by either party upon at least 90 days' written notice prior to any renewal date. It represents an aggregate revenue opportunity of approximately $20.2 million. Concurrently, we placed a purchase order for 104 H200 servers for approximately $30 million. The deployment commenced in February 2025.

On January 6, 2025, we entered into a Master Services Agreement ("MSA") with a minimum purchase commitment of 32 GPUs, along with an associated purchase order, from a new customer. The purchase order provides for services utilizing a total of 32 H200 GPUs over a minimum of six (6) month period, representing total revenue of approximately $300,000 for the term. The deployment commenced and revenue generation began on January 8, 2025, using the Company's existing inventory of H200 GPUs.

In April 2025, we received our first shipment of NVIDIA GB200 Grace Blackwell Superchip powered NVIDIA GB200 NVL72 system chips, from Quanta Cloud Technology, a leading provider of data center solutions. We believe that support with proof of concept (POC) access from Quanta will enable us to meet and exceed expectations around delivery and timeline, performance and reliability. The NVIDIA GB200 Grace Blackwell Superchip connects two high-performance NVIDIA B200 Blackwell GPUs and the NVIDIA Grace CPU with the NVLink-C2C that delivers 900 gigabytes per second (GB/s) of bidirectional bandwidth. The GB200 is a revolutionary new superchip for generative AI, data processing, engineering design, high-performance computing, and simulation.

On May 7, 2025, we entered into a second MSA with the above described AI Computer Fund managed by DNA Holdings Ventures Inc. The purchase order provides for 616 H200 GPUs to be operational at the Icelandic Data Center. The service fee is $899,360 per month. The MSA is for a 24 month loan and is automatically renewable for 12 month periods unless terminated by either party on prior written notice at least 90 days before the end of the Term.

**Industry Overview** 

We compete in the large and rapidly growing data center and cloud services markets. The data center market refers to the industry dedicated to designing, building, and managing data centers, essential for storing, processing, and managing vast amounts of digital information, including for AI and ML applications. These centers house servers, networking equipment, power and cooling and storage systems, ensuring seamless and secure data operation.

The cloud services market represents the transmission of computer services, including storage, analytics, databases, networking, and intelligence, via the internet (referred to as "the cloud"). Our cloud services business is a NeoCloud provider, with differentiated services supporting AI workloads and specializing in deploying optimized infrastructures that include not just GPU fleets but also network accelerators, high-speed storage, software solutions, advanced orchestration tools, high-performance interconnects, edge computing capabilities, innovative cooling solutions, security and compliance features, 24/7 managed services, and hybrid cloud integrations. This infrastructure is essential for managing the massive data and computing demands of AI and ML training and inference tasks.

It is standard for GPU hardware clusters, used in the rendering of cloud services, to be remotely housed in data centers, making these two segments highly related and synergistic. Specially designed data centers host the hardware needed to provide HPC cloud services, and these are commonly referred to as HPC data centers. According to experts at Schneider Electric, the industry is shifting away from traditional data centers that typically hosted 10kW racks to newer 100kW racks that support HPC needs. We only design and develop HPC data centers, giving us a competitive advantage over operators of traditional data center capacity.

*Data Centers*

According to McKinsey & Company, power demand for data centers in the U.S. – driven by the need for digital and AI capabilities – is expected to reach 298 gigawatts by 2030, up from 60 gigawatts in 2024. McKinsey estimates that data centers will amount to 11.7% of total U.S. power demand in 2030. Based on our knowledge of the industry, we believe we are leaders in the markets that are critical for these capabilities, and, as a result, we believe we are well positioned to benefit from the growth of this sector.

According to Prescient and Strategic Intelligence, Data-Center Market Size and Analysis, Trends, Drivers, Competitive Landscape and Forecast (2024-2030), the global data center market was valued at $342 billion in 2023 and is anticipated to reach $622.4 billion by 2030, expanding at a CAGR of 10.5% during 2024-2030. As of 2023, the data center services segment, which provides a range of offerings including consulting, maintenance, and management to optimize the performance and reliability of data center infrastructure, represented about 34.2% of the industry. The solutions segment, which refers to the technological offerings that fulfill key functions within data center infrastructure, comprised about 65.8% of the industry. The solutions segment represents both hardware and software elements, encompassing servers, storage systems, advanced power systems, infrastructure networking equipment, and management software.

The data center market is propelled by growing demands for cloud computing services, big data analytics, and digital transformation. According to McKinsey & Company, by 2030, 70% of data centers expected to be developed will be for advanced AI, and 92% of companies plan to increase AI investments across the board. Key contributors to this dynamic landscape are technology firms, real estate developers, and service providers. Together, they play a vital role in the ongoing evolution of data center infrastructure, adapting to meet the expanding requirements of the digital era and ensuring the seamless operation of critical digital services across various industries. The increasing global demand for cloud computing, where we compete as a cloud services provider, is a major driver of data centers, underlining the inherent synergies between our businesses.

*WhiteFiber Cloud Services*

The global could AI infrastructure market is forecasted to grow from $60.5 billion in 2024 to $363.4 billion in 2030, a compound annual growth rate of approximately 35%, according to research published by Mordor Intelligence. The major factors driving the cloud services market growth are increasing digital transformation across businesses, growing internet and mobile device adoption across the globe, and, most notably, increased usage of large data sets. Moreover, cloud services are favored by customers due to low capital investment, resource scalability, and a high degree of accessibility. The rise of the system of connected devices, edge computing, 5G, and real-time analytics driven by AI and ML is anticipated to increase the market value of cloud technology across different businesses.

*Sustainability*

Sustainability and energy efficiency are increasingly important considerations for the data center and cloud services markets due to high energy consumption and carbon emissions. The sustainability movement for data centers is driven by organizations' environmental, social and governance commitments and the rise of laws and regulations supporting sustainability. For example, the Paris Accord, which was entered into force on November 4, 2016, is currently in effect across 174 countries apart from the United States and aims to curb long-term global warming. Our facilities in Quebec and Iceland benefit from clean, hydroelectric power generation, and we will seek to offer comprehensive HPC data center and cloud services solutions while prioritizing sustainability and energy efficiency.

**Our Competitive Strengths**

***Robust customer acquisition capabilities within large and growing total addressable markets.*** As described above, both the data centers and cloud services sectors are currently undergoing a well-documented surge in demand, driven in part by the proliferation of AI models, agents and applications, and constraints on available supply. This growth is demonstrated by our ability to pre-sign end users prior to committing capital for expansions, both for new data center sites and for GPU procurement. Our HPC data center business enjoys significant embedded demand from existing customers and, as of June 2025, is in receipt of requests in excess of our short-term MW availability. We expect that this demand will also enable us to extend the average duration of our customer contracts. Finally, across our business units, we have invested in building robust sales, marketing, and customer acquisition teams, and in developing our go-to-market strategy, including initiatives aimed at acquiring new customers through strategic partners, outbound outreach, industry events, and third-party referral agents.

***Confidential pipeline of WhiteFiber data center opportunities with scalable, differentiated development capabilities.*** Based on management's prior experience, we believe our WhiteFiber data center team are experts at sourcing attractive new development opportunities. Our management has previously identified and executed on high-value data center sites, often in competitive or constrained power markets, such as Montreal, Quebec and Madison, North Carolina. Their internal capabilities span site selection, power procurement, permitting and scalable design. These are complimented by deep industry relationships that provide early access to off-market or strategic opportunities. Thanks to this capability as of June 30, 2025, our pipeline of potential data centers represents approximately 1,300 MW (gross) projects under management's review, including approximately 800 MW (gross) under non-binding and exclusive letters of intent with potential customers.

Our opportunity pipeline contains multiple sites for retrofit or brownfields. However, certain opportunities could from time to time necessitate a greenfield project that entails a ground-up development. Our development team members are specialists at retrofits, having successfully delivered 75 MW (gross) of retrofit projects over their careers. They have identified and executed on high-value data center sites, often in competitive constrained power markets. Their internal capabilities span site selection, power procurement, permitting, and scalable design. These are complemented by deep industry relationships that provide early access to off-market or strategic opportunities. The Company's current pipeline reflects this advantage, with multiple active and vetted development prospects. This approach provides a significant time-to-market advantage over traditional greenfield projects, since it eliminates much of the time and uncertainty associated with securing new power agreements and vertical construction permits. As a result, the average build time for retrofits, based on senior management's experience at Enovum even prior to its acquisition by the Company, is approximately six months from commencement of construction. We believe, based on our knowledge of the industry, this is approximately one-third to one-half of the industry average development timeline for greenfield projects.

As a result of these and other strategies, we believe we achieve significant cost advantages. Management estimates that our average build-out cost per MW (gross) is approximately $7 to$9 million, as compared to an industry average of approximately $12 million per MW (gross).

***Modern, strategically located data center portfolio.***

Our MTL-1 site, as well as our sites under development, are intended to be modern, high quality facilities built on Tier-3 infrastructure, with industry leading certifications, including SOC 2 Type 2, reflecting the highest standard of security controls. Our MTL-2, MTL-3 and NC-1 projects are intended to feature direct-to-chip liquid cooling. We believe this will position us to capitalize on surging demand for AI and other HPC workloads. Our MTL-1, MTL-2, and MTL-3 sites are located in Montreal, a key market for data centers attributable to its cold climate, affordable green power, and robust fiber network infrastructure. These factors, collectively, contribute to customer demand for Montreal facilities. Our NC-1 site, is located in the key data center corridor running along the U.S. East coast, where eight hyperscaler data centers are located within a 100 mile radius of our facility.

***Complementary strategic integration of data center infrastructure and cloud services businesses.*** Our business model includes integration of HPC data center infrastructure and cloud services to provide scalable, high-performance computing solutions for enterprises, research institutions, and AI and ML driven businesses. Whether by optimizing cooling strategies for dense GPU clusters or ensuring multi-ISP connectivity for uninterrupted data flows, we believe our combined HPC data center and cloud services businesses set a higher benchmark for speed, reliability, and overall client satisfaction in the AI and HPC space. Through vertical integration, we are able to provide power to support our cloud service needs and also empowered to respond with agility to both emerging hardware trends and the real-time usage metrics gleaned from our cloud services. Instead of retrofitting third-party data center infrastructure or juggling multiple outside vendors, we can proactively tailor the entire data center stack to deliver high-performance, future-proof solutions for customers. By integrating cloud services with our data center infrastructure, we believe we are well-positioned to capitalize on the growing demand for AI and HPC workloads, capturing margin at both tiers of a vertically integrated value chain and reducing supplier dependency.

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***Differentiated management team with deep experience in data center and cloud infrastructure development.*** Our management team comprises individuals drawing on diverse knowledge and skill sets acquired through extensive experience in data centers, real estate and REITs, and the technology sector. Our leadership also incorporates extensive strategic expertise in finance and capital markets. We augmented our management team with the acquisition of Enovum with 20 years plus of data center development experience and through other recent key hires, optimally positioning the team to continue driving our data center and cloud services growth.

**Our Growth Strategies**

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***Complete build-out and maximize revenue from current data center projects.*** Leveraging our development capabilities, we intend to complete our MTL-2 facility in the fourth quarter of 2025, our MTL-3 facility in the fourth quarter of 2025, and the first 24 gross MW (gross) of NC-1 in the first quarter of 2026. While NC-1 is expected to be completed in the first quarter of 2026, management expects it will start generating revenue in May of 2026. These time periods are based upon the commissioning of the construction and buildout of the facilities. Further, there is potential to increase revenue from certain our existing sites by securing additional allocations of utility power, subject to our receipt of funding and required permits through ongoing engagement with the utility and relevant authorities. We aim to demonstrate the economic value and readiness of our sites to support incremental load growth, while also monitoring infrastructure upgrades and interconnection queue developments that may enable expanded allocations over time. Finally, at certain new and existing sites, we intend to deploy natural gas fuel cell generation technology to increase available power and revenue potential. We expect to achieve this by partnering with third-party energy providers to deploy natural gas-powered fuel cell systems on or near our data center sites. These systems can be deployed modularly and connected behind the meter, allowing us to supplement utility power, support additional compute deployments, and increase site revenue without relying solely on the utility grid. We are currently evaluating proposals and permitting pathways to enable these installations where economically and operationally viable.

In our MTL-2 site, for example, we can potentially increase the existing utility power by over a multiple of four, allowing us to maximize revenue per square foot, if we are able to obtain expansion of our power capacity from Hydro-Quebec, of which there is no assurance.

***Rapidly and strategically scale our proprietary data center expansion pipeline.*** To complement our existing HPC data center portfolio, we intend to rapidly develop additional sites from our expansion pipeline. In doing so, we will target selected locations to secure a strategic presence across North America. We are committed to offering extensive geographical coverage to seamlessly support our clients' operations while minimizing latency. By developing a robust HPC data center platform across North America, we expect to enhance redundancy, mitigate geo-location risks, and ensure our services are available where clients need them most. We expect our strategically placed WhiteFiber data centers in smaller urban areas, which we term edge data centers, will deliver carrier hotel-level connectivity, while our larger deployments will power AI-driven computing super-clusters, driving innovation and efficiency.

***Focus on next-generation data center designs and infrastructure.*** Our data center designs feature high density racks and direct-to-chip cooling architecture to enable our customers' AI, ML and other HPC workloads. We will continuously analyze emerging trends in an effort to develop future-proof designs that accommodate increasing densities, while addressing our clients' current needs with practical solutions. Leveraging the latest advances in direct-to-chip cooling, we expect to support both rapidly growing standard clusters and customized high-performance deployments, ensuring efficiency, scalability, and innovation to meet current and future demand.

***Leverage our unique technology strategy and strategic relationships to grow revenue from existing and new customers.*** Our technology team has developed in-house software to streamline the delivery of cloud services for a wider variety of customers, including those with the highest performance, reliability, and security requirements. This will allow us to differentiate our cloud services offering from those of other cloud providers that only offer basic services, such as limited storage, networking and computing performance tiers, and limited delivery options (e.g., bare-metal, virtualized, or containerized exclusively).

We also intend to leverage existing strategic relationships to secure new customers and increase revenue from existing customers. We are currently targeting small and medium-sized customers with high returns. Such relationships include OEM and ODM suppliers and data center planning partners. For example, we have a co-marketing agreement in place with NVIDIA as a function of being a NVIDIA Preferred Partner through the NPN and with Hewlett Packard Enterprise, as a function of being accepted into their partnership program. With Super Micro Computer, Inc., we have early access to next generation computing platforms for testing and evaluation. We are working with vendors, such as Canopy Wave, Semper Victus IT, and Trainy.AI, to rapidly plan and deploy innovative HPC cluster designs. Our partnerships enable lead and customer sharing to rapidly identify customers who will uniquely benefit from our offerings.

***Prudently source and allocate growth capital.*** We have limited leverage, as we have primarily financed our growth to date with equity. This has provided us with the opportunity to incur prudent leverage to fund our growth and enhance returns to our shareholders. This was confirmed with our entry into a CAD $60 million (approximately USD $43.8 million) credit facility in June 2025 with RBC. In our data center business, we believe we are in a position to utilize well-priced first mortgage and corporate facilities from both Canadian and U.S. commercial banks. Within our cloud service business, we anticipate utilizing equipment leasing facilities to limit our equity capital commitments. While we will benefit from access to public equity, we will also continue to explore private equity financings in the form of joint ventures with institutional partners. We believe that our access to these varied alternatives will provide us the ability to optimize our cost of capital. See *"Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources."*

**Strategic Relationships**

*Financing*

Based on management's knowledge of the industry we believe that there is market demand from institutional private equity investors for exposure to the types of projects in our data center pipeline and our capability to develop them. We believe that we are well positioned to capitalize on this demand by forming one or more equity joint ventures. Doing so would provide us access to a differentiated and non-dilutive source of private equity capital to fund our projects, and deliver a durable stream of cash flows in the form of management fee income for our services.

In June 2025 we entered into a credit facility for up to a CAD $60 million (approximately USD $43.8 million, based on the CAD/U.S. $ rate of exchange of CAD 1.00/U.S. $0.7308, as reported by Bloomberg on June 18, 2025), debt financing with RBC primarily to support the refinancing of our MTL-2 data center. The funds are available for borrowing and will be utilized together with the proceeds of this offering to support the refinancing of our MTL-2 data center. See "*Use of Proceeds*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources*".

*Technology*

We have established formal relationships with leading technology providers, including NVIDIA, Super Micro, Dell, Hewlett Packard Enterprise, Super Micro and Quanta Computing. These partnerships enable us to access and deploy the most advanced computing hardware, ensuring that our clients benefit from cutting-edge technology and optimized performance. Our collaboration with these industry leaders allows us to stay at the forefront of high-performance computing and AI infrastructure.

Our data center business leverages a diverse mix of vendors across multiple geographies to source equipment cost-effectively while mitigating supply chain disruptions. By maintaining a broad supplier network, we reduce reliance on any single vendor and enhance our ability to procure best-in-class solutions at competitive prices. This approach strengthens our operational resilience and supports our ability to scale efficiently.

**Competition**

We face significant competition from various data center and cloud services providers. We compete with several prominent data center providers, including Digital Realty, Equinix, Inc., NTT, Cyrus One, Inc., STACK Infrastructure, Inc., Aligned Data Centers, LLC, Iron Mountain and various private operators in the U.S. Our primary competitors in the cloud service business are CoreWeave, Crusoe Energy, Nebius, and Lambda Labs.

Many of our competitors offer locations worldwide and have well-established international operations. Our competitors may also have significant advantages over us, including greater name recognition, longer operating histories, pre-existing relationships with global developers, utilities and local authorities, which may give them an advantage in securing real estate or power for new sites, particularly in constrained regions, the capacity to provide the same or additional products and services, more significant marketing budgets and other financial and operational resources, more robust internal controls and systems, and better established, more extensive scale and lower cost suppliers sand supplier relationships. In addition, as we develop proprietary technology and software solutions to support AI and HPC workloads, we face competitive risks from larger incumbents with greater R&D resources and established ecosystems. The competitors may bring similar offerings to market faster or with deeper integration into existing platforms, potentially limiting our market share or pricing power.

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**Materials and Suppliers**

Maintaining key supplier relationships is crucial to our business operations, as we rely on these relationships, such as with Dell, NVIDIA, Hewlett Packard Enterprise, Super Micro and Quanta Computing, to secure GPUs, servers, essential computing hardware, infrastructure components, and other materials. The complexity of developing cloud service hardware at scale limits the number of suppliers capable of meeting our requirements. The development of new data center capacity is subject to supply chain constraints and long lead times for critical infrastructure components such as power distribution equipment, generators, and cooling systems. We work with experienced vendors and maintain forward-looking procurement plans to mitigate these risks, but delays could still impact project timelines. Consequently, we have established purchase orders with leading hardware manufacturers that include extended delivery schedules spanning several months before the hardware is delivered to our facilities. These fluctuations in delivery timelines necessitate careful planning and advanced purchasing strategies to ensure we can acquire hardware well before their anticipated deployment.

We proactively procure these materials from our suppliers in sufficient quantities to facilitate hardware deployment at scale and on accelerated timelines. To mitigate potential supply chain disruptions and ensure the smooth operation of our facilities, we have established long-term contracts and agreements with key suppliers. This includes multi-quarter purchase commitments for critical hardware such as GPUs, power distribution units, and networking equipment, as well as ongoing service agreements with construction, electrical, and facility operations vendors. These relationships help secure allocation priority, stabilize pricing, and reduce lead-time risk for both cloud infrastructure and data center development. These arrangements give us greater certainty regarding the availability and pricing of essential components and materials. Furthermore, we continuously monitor market trends and maintain open lines of communication with our suppliers to anticipate and address potential supply chain challenges.

By proactively managing our supplier relationships, securing necessary materials in advance, and closely monitoring market conditions, we aim to minimize the impact of supply chain fluctuations on our operations. This approach enables us to maintain a steady pace of hardware deployments and facility development, ultimately supporting our goal of expanding our HPC data center and cloud service capabilities and maximizing shareholder value. However, we rely on a limited number of vendors for certain products and services for our data center facilities, and some of our contracts provide a single source of materials. If any of our key suppliers cannot perform under their contracts or satisfy our orders, it could significantly delay our data center development and operations. While we may be able to engage replacement suppliers, this would likely lead to operational delays and increased costs.

**Power Supply**

In the province of Quebec where MTL-1, MTL-2, and MTL-3 are located, all of the hydroelectric power is provided by a crown corporation, Hydro Quebec, which has predetermined rates depending on the customers' industry and based on the power demand. MTL-1 is presently under the M category of Hydro Quebec. The Company is being charged approximately CAD $116,250 per month, based on CAD $46.5 per kW usage of approximately 2,500 KW of demand power. The Company expects to get a 20% reduced billing rate of CAD $37.2 per kW with the planned additions of MTL-2 and MTL-3.

As set forth above, under "HPC Business-WhiteFiber Data Centers", the Company has entered into a Capacity Agreement with Duke Energy for the Company to receive 24 MW of service to NC-1 by September 1, 2025, an additional 40 MW by April 1, 2026 and an additional 99 MW within four years of May 16, 2025. The actual rates will be determined when the facilities are turned on.

**Customers**

*WhiteFiber data centers*

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Our HPC data center customer base consists of two primary types of customers:

● Enterprise clients – current and prospective enterprise clients are active in multiple industries, including healthcare, finance, and various technologies that rely on computers or models. These customers benefit from our high-density solutions, reaching upwards of 50kW per cabinet, to accommodate their workloads and data generation.

● GPU cloud – Our GPU cloud customers offer on demand access to their GPUs for tasks like AI, VFX rendering and scientific computing.

Currently, we provide HPC data center services at our leased MTL-1 facility, although our customers are based across Canada and Europe.

*Cloud Services*

 

Our cloud services customer base also is comprised of two primary types of customers:

● Direct end users – these customers primarily leverage our computing power for model training and inference.

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● GPU marketplaces – these platforms resell our computing power to their own end users. Since we do not have direct visibility into their end-user base, there may be some overlap among end users across different marketplaces.

We currently provide cloud services at Blönduos Campus, Iceland, where we lease capacity to house our GPUs. We also intend to install our GPUs at our MTL-2 facility to expand our cloud services offering.

***Global Logistics and Tariffs***

Global supply logistics have caused delays across all distribution channels, impacting the HPC, AI and ML markets. Delivery schedules for specialized equipment, such as high-performance computing systems, AI hardware, and necessary infrastructure components, have been affected due to constraints on globalized supply chains. These constraints extend to procuring construction materials and specialized electricity distribution equipment required to develop HPC, AI and ML facilities. Efforts to mitigate delivery delays are ongoing to avoid materially impacting deployment schedules; however, there are no assurances that such mitigation efforts will continue to be successful. To help address global supply logistics and pricing concerns, we have implemented proactive measures such as procuring and holding required materials. We continuously monitor developments in the global supply chain which is necessary to assess their potential impact on our expansion plans within the HPC, AI and ML markets. This monitoring includes evaluating the impact of international trade policies and tariffs, which may affect the cost or availability of key components source from abroad and, in turn, impact our expansion timelines or capital expenditure.

Data center construction relies heavily on steel, copper, aluminum, electrical components and HVAC systems, some of which the Company is sourcing from Mexico and Canada. The tariffs the U.S. has imposed, or has considered imposing, on Canadian steel, aluminum and copper imports, are expected to increase the cost of WhiteFiber's potential projects in the U.S. Similarly, reciprocal tariffs imposed by Canada on WhiteFiber's projects in Canada on U.S. exports could see cost increases for imported power infrastructure, networking hardware, and construction equipment. See "*Risk Factors-Changes in tariffs or import restrictions could have a material adverse effect on our business, financial condition and results of operations*."

**Regulatory Landscape**

The regulatory landscape surrounding WhiteFiber data centers and cloud services is evolving rapidly, and we anticipate increased scrutiny and potential regulation in the near- and long-term. These developments may have a material adverse effect on our business and financial condition.

We are subject to the laws and regulations of various jurisdictions and governmental agencies affecting our operations and the sale of our infrastructure and services in areas including, but not limited to: AI, AI, intellectual property; tax; import and export requirements; anti-corruption; economic and trade sanctions; national security and foreign investment; foreign exchange controls and cash repatriation restrictions; data privacy and security requirements; competition; advertising; employment; product regulations; environment, health and safety requirements; and consumer laws.

Although there is no assurance that existing or future governmental laws and regulations applicable to our operations and the sale of our infrastructure services will not have a material adverse effect on our capital expenditures operating results and competitive position, we do not currently anticipate material expenditures for complying with government regulations. Nevertheless, we believe that global trade regulations could potentially have a material impact on our business.

As a global company, the import and export of our infrastructure services and technology are subject to laws and regulations including international treaties, U.S. export controls and sanctions laws, customs regulations, and local trade rules around the world. For example, all acquisitions of control (whether direct or indirect) of Canadian businesses by non-Canadians may be subject to review on grounds that the investment could be injurious to national security. Following the filing of the required Investment Canada Act notification in respect of our acquisition of Enovum, we received written notification from the Minister of Innovation, Science and Industry of Canada (the "Minister"), that the acquisition may be subject to a national security review. Following review of information we provided, Bit Digital executed a "Commitment Letter" to the Minister which provides for the following: (i) Commitment to maintain one Canadian on the board of Enovum Inc.; (ii) Commitment to maintain or improve Enovum's security controls for personnel, physical security and the internal network, and (iii) Commitment to send a list of Enovum's current clients to Investment Canada on an annual basis.

The scope, nature, and severity of such controls varies widely across different countries and may change frequently over time. Such laws, rules, and regulations may delay the introduction of our infrastructure and services or impact our competitiveness through restricting our ability to do business in certain places or with certain entities and individuals. For example, the U.S. Department of Commerce continues to add firms to the Entity List. These export restrictions, which would require that we obtain licenses from the U.S. Department of Commerce to allow us to export infrastructure services to such listed firms, which could limit or prevent us from doing business with certain potential customers or potential suppliers. Additionally, although the U.S. Department of Commerce has withdrawn its AI diffusion rules, which would have imposed worldwide limits on AI chip exports used to create computer clusters, it plans to issue a replacement rule in the future and continues to strengthen other existing export controls on advanced AI chips. These restrictive governmental actions, and any similar measures that may be imposed on U.S. companies by other governments, could limit our ability to conduct business globally.

Additionally, there are growing concerns about the ethical implications and potential misuse of AI and machine learning. Governments and regulatory bodies are considering measures to ensure the responsible development and deployment of AI systems, including transparency, accountability, and fairness guidelines. We are closely monitoring these developments and will dedicate our best efforts to adhere to any upcoming regulations or industry best practices.

As a company operating at the intersection of data center, cloud and HPC hosting services, we are committed to maintaining a proactive and adaptive approach to regulatory compliance. We closely monitor legislative and regulatory developments and engage in dialogue with relevant stakeholders to ensure our business practices align with the evolving legal and regulatory framework. Despite the uncertainties posed by the changing regulatory landscape, we remain committed to delivering innovative and responsible solutions in the data center, cloud and HPC hosting markets while prioritizing compliance and risk management. However, if we fail to comply with applicable laws and regulations, we may be subject to significant liabilities, including fines and penalties, and our business, financial condition, or results of operations could be adversely affected.

*Investment Canada Act* 

All acquisitions of control (whether direct or indirect) of Canadian businesses by non-Canadians may be subject to review on grounds that the investment could be injurious to national security. Following the filing of the required Investment Canada Act notification in respect of our acquisition of Enovum (the "Transaction"), we received written notification from the Minister of Innovation, Science and Industry of Canada (the "Minister"), that the Transaction may be subject to a national security review. Following review of information we provided, Bit Digital executed a "Commitment Letter" to the Minister which provides for the following: (i) Commitment to maintain one Canadian on the board of Enovum Inc.; (ii) Commitment to maintain or improve Enovum's security controls for personnel, physical security and the internal network, and (iii) Commitment to send a list of Enovum's current clients to Investment Canada on an annual basis. The Company is complying with the terms of the Commitment Letter.

**Legal Proceedings**

From time to time, we may become involved in various disputes and litigation matters that arise in the ordinary course of business. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, results of operations, cash flows or financial condition. We may in the future receive claims from third parties asserting, among other things, infringement of their intellectual property rights. Defending such proceedings is costly and can impose a significant burden on management and employees, we may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained.

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**Employees** 

As of June 30, 2025, we and our subsidiaries employed 39 full-time employees and consultants. At the corporate level, we employed 12 individuals, in addition to our CEO, Sam Tabar; our CFO, Erke Huang; and our Senior Vice President of Capital Markets and Corporate Strategy, Cameron Schnier. These include a Chief Technology Officer; a Managing Director of Strategies; Heads of Revenue and GTM Strategy; Head of Marketing; a Senior Account Executive; a Senior Program Manager; a Senior Data Center Manager; and five Engineers. Our cloud services business employed a CEO and utilizes the services of Bit Digital's employees, including a Director of Business Development, a Senior Managing Engineer, and two Analysts. Our HPC data center business employed 14 individuals, including its CEO, Billy Krassakopoulos; CFO, Roberto D'Errico; CSO, Simon Hamelin-Choquette; CTO, David Bayle; a Business Development Specialist; two System Operators; two Construction Managers; and five Technicians. We also engage consultants and contractors in the buildout of our data centers as needed to supplement our permanent workforce.

In connection with the completion of this offering, we will implement a long-term performance incentive program, granting eligible employees service-based restricted stock awards and performance-based restricted stock awards that vest upon achieving specific performance milestones. This performance program is a key employee incentive, aligning their long-term interests with the Company's objectives, *See Executive and Director Compensation—Share Options/Restricted Share Units.*

***Properties***

WhiteFiber's headquarters offices are located at 31 Hudson Yards, 11th Floor, Suite 30, New York, NY 10001. The WhiteFiber's lease is for a term ending July 31, 2027 with a monthly rental of $7,226.

WhiteFiber provides cloud services at the data center located at Falkagerdi 1, 1540 BlöndUos Campus, Iceland. We have one office in Reykjavik, Iceland, located at Skógarhlíð 12, 105 Reykjavík, Iceland. The lease is for a term ending December 31, 2025, with a monthly rental of approximately $620.

We maintain a 64,642 square foot data center (MTL-1) located at 3195 Chem de Bedford Road, Montreal, Quebec, H3S, IGS. The lease was first entered into on March 19, 2020, and last amended on March 25, 2022. The lease is for a term of 15 years and nine months ending on May 31, 2036, unless terminated earlier. The lease has been two five-year renewal options, from June 1, 2036 to May 31, 2041 and from June 1, 2041 until May 31, 2046. The base rent started at $13,467, is currently $32,321 until May 31, 2025, and increases to $42,394 by the end of the lease. Additional rent is Enovum's proportionate share of operating costs and of real estate taxes, as well as an administrative fee equal to 15% of Enovum's proportionate share of operating costs. The lease is secured by a letter of credit in the amount of CAD $600,000.

On December 27, 2024, we acquired a 160,000 square foot facility (MTL-2) at 7300 Trans-Canada Highway, City of Point-Claire, Quebec, Canada H9R 1C7. The property was purchased for approximately CAD $33.5 million (approximately USD $23.3) million and was purchased with cash on hand.

On April 10, 2025, we entered into a lease for a new data center site (MTL-3) at 500 Bd Monseigneur–Dubois, Saint-Jerome, Quebec, QC J7Y 3L8 a suburb of Montreal. The facility spans approximately 202,000 square feet on 7.7 acres and is being developed to support current contracted capacity, with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure, which includes a fixed-price purchase option of CAD $24,240,000 (approximately USD $17,300,000) exercisable by December 2025. The lease term is 20 years, with two 5-year extension options. The facility is being retrofitted to Tier-3 standards, with development costs expected to total approximately USD $41 million, and is expected to be completed and operational in the fourth quarter of 2025, with a one-month delay before we expect to begin to generate revenue.

On May 20, 2025, we purchased a former industrial/manufacturing building together with the underlying land outside of Greensboro, North Carolina (the "Property"), which we intend to retrofit to create an HPC data center (NC-1). The Property has approximately 1,000,000 leasable square feet and is located at 805 Island Drive, Madison, North Carolina. The Property, as well as certain machinery and equipment located thereon, was purchased for a cash purchase price of $53.2 million.

We believe that we will be able to obtain adequate facilities principally through leasing, to accommodate any future expansion.

**MANAGEMENT**

**Executive Officers and Directors Following this Offering** 

The following table sets forth the individuals who will serve as WhiteFiber's executive officers and directors upon the effectiveness of the registration statement of which this prospectus forms a part, and their respective ages as of June 30, 2025. Some of those persons will continue to be engaged by Bit Digital after the Reorganization. See "Bit Digital will have significant voting power to control significant corporate actions. Bit Digital's interests may conflict with our interests or the interests of our other shareholders."

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Sam Tabar | 52 | Chief Executive Officer |
| Erke Huang | 36 | Chief Financial Officer and Director |
| Thomas Sanfilippo | 61 | Chief Technology Officer |
| Billy Krassakopoulos | 44 | President of WhiteFiber and Chief Executive Officer of Enovum |
| Ichi Shih | 54 | Independent Director |
| Jiashu (Bill) Xiong | 33 | Independent Director |
| David Andre | 53 | Nominee for Independent Director |
| Pruitt Hall | 65 | Nominee for Independent Director |

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Set forth below is biographical information as well as background information relating to each executive officer and director's business experience and qualifications. Messers. David Andre and Pruitt Hall have been appointed as independent directors of the Company upon the commencement of trading of our Ordinary Shares on the Nasdaq Capital Market.

***Sam Tabar***

Mr. Sam Tabar has served as WhiteFiber's Chief Executive Officer since February 2025. Mr. Tabar served as Chief Strategy Officer of Bit Digital from March 31, 2021 to March 31, 2023, when he was appointed Chief Executive Officer of Bit Digital which position he will retain after this offering. Mr. Tabar was an independent contractor for Centerboard Securities LLC, as a FINRA registered representative, from June 2020 until his resignation on March 31, 2023. Prior thereto, Mr. Tabar served as the Co-Founder and Chief Strategy Officer of Fluidity from April 2017 to June 2020. Prior to this, he served as a Partner to FullCycle Fund from December 2015 to April 2017. Prior to this, he served as Director and Head of Capital Strategy (Asia Pacific Region) for Bank of America Merrill Lynch from February 2011 to January 2013. Prior to this, he was Co-Head of Marketing at Sparx Group from March 2003 to 2011. Prior to this, he was an associate at Skadden, Arps, Meagher, Flom LLP & Affiliates from May 2001 to March 2004. Mr. Tabar received his Bachelor of Arts from Oxford University in 2000 and received his Master of Law (LL.M.) from Columbia University School of Law in 2001. He was associate editor of the Columbia Law Business Law Journal in 2000, and is a current member of the New York State Bar Association.

***Erke Huang***

 ****

Mr. Erke Huang has served as Chief Financial Officer since February 2025 and a director of WhiteFiber since October 10, 2024. Mr. Huang has served as Chief Financial Officer and a director of Bit Digital from October 18, 2019, which positions he will retain after this offering. He served as Interim Chief Executive Officer from February 2, 2021 until March 31, 2021. Prior thereto, Mr. Huang served as the Co-Founder and Advisor of Long Soar Technology Limited from August 2019 to October 2020 and as the Founder/CEO of Bitotem Investment Management Limited from May 2018. From June 2016 to May 2018, Mr. Huang served as the Investment Manager of Guojin Capital. From August 2015 to May 2016, Mr. Huang served as an Analyst for Zhengshi Capital. Mr. Huang served as a Program Officer of Southwest Jiaotong University from February 2015 to August 2015. From March 2013 to November 2014, Mr. Huang served as Tower Structure Analyst of Crowncastle International. Mr. Huang received his bachelor's degree in Environmental Engineering from Southwest Jiaotong University in 2011, and received his master's degree in Civil & Environmental Engineering from Carnegie Mellon University in 2012. Mr. Huang is qualified to serve as a member of our board of directors due to his experience in establishing the Company's cloud services and AI technology, as well as his overall extensive understanding of our business, operations, finances and growth strategy.

***Thomas Sanfilippo***

Mr. Sanfilippo has served as the Chief Technology Officer of WhiteFiber since February 2025. He commenced employment as Chief Technology Officer of WhiteFiber AI in September 2024 and will continue in that position after the completion of this offering. Prior thereto, from July 2023 until September 2024, he was Senior Director of Paperspace's existing network, data center and infrastructure teams within Digital Ocean. From December 2015 until Paperspace was acquired by Digital Ocean in July 2023 he was leader of Paperspaces's core GPU Computer Cloud and Gradient AI/ML Platform technical organizations. Prior thereto, from January 2015 until September 2016, he was a senior Architect for Kaseya. From 2014 until 2017, he was Chairman of the Board of Directors of Artisan Asylum. There he worked on long-term growth and health of a non-profit community workspace and education center. From June 2012 to April 2014 he was Principal Software Development Engineer and from 2006 to 2012 he was Principal Group Development Manager at Microsoft. He began his career in 1986 with a degree in majors in physics, mathematics and philosophy from The Ohio State University.

***Billy Krassakopoulos***

Mr. Krassakopoulos has served as President of WhiteFiber since February 2025. He has served as Chief Executive Officer of Enovum since its formation on July 13, 2023. He will continue to serve in that position with WhiteFiber. Billy has more than 20 years experience in the data center and managed hosting industry. He founded Netintelligent Hosting Services in 2002, and the company was sold to Estruxture Data Centers in 2016. Subsequent to the acquisition of Netintelligent Hosting Services, he was a Vice President at Estruxture Data Centers. His experience and dedication to advancing the tech landscape drive his ongoing commitment to excellent services and growth in the datacenter sector.

***Ichi Shih***

Ms. Ichi Shih has served as an independent director of WhiteFiber since October 10, 2024. Ms. Shih was elected to serve as an independent director of Bit Digital at the September 4, 2020 Annual General Meeting, and has experience in financial management, M&A transactions, and capital market transaction across several global regions. This extensive experience, as well as her involvement in the Company's business and finances since our inception, qualifies her to serve on our board of directors. From 1998 to 1999, she worked as a Financial Analyst of Goldman Sachs & Co. in New York. From 2007 to 2009, she worked as Vice President of Brean Murray & Carret in New York. From 2009 to 2011, she worked as CFO of China Valves Technologies, Inc. in both Hong Kong and the U.S. From 2012 to 2014, she worked as Senior Vice President of Glory Sky Capital in Hong Kong. In 2015, she worked as Listing Advisor of Nasdaq Dubai in Dubai and Shanghai. From 2016 to 2017, she worked as CFO of Cubetech Global Assets in Beijing. From 2017 to 2018, she worked as CFO of ProMed Pharma in Beijing. Since 2018, she has worked as a Partner of Cathay Securities, Inc. in Beijing and New York. Ms. Shih received her Bachelor's degree in Accounting and International Business from Stern School of Business at New York University in 1995 and Master's degree in International Finance and Business from School of International and Public Affairs at Columbia University in 2002. Ms. Shih holds a CPA Certificate from American Institute of Certified Public Accountants.

***Jiashu (Bill) Xiong***

Jiashu (Bill) Xiong has served as an independent director of WhiteFiber since October 10, 2024. Mr. Xiong is currently IT Director of Bit Digital Canada, Inc. which subsidiary will remain with Bit Digital following this offering. On October 13, 2023, Bit Digital elected Mr. Xiong to its Board of Directors, and he will retain this position after this offering. He previously served as the IT/DevOps Tech Lead for the Agricultural Bank of China's Canada branch from February 2018 to March 2023. Xiong received a bachelor's degree in Computer Science and Software Engineering from the University of Victoria. Mr. Xiong is qualified to serve as a member of our board of directors due to his educational background and experience in our business since its formation.

***David Andre***

***Pruitt Hall***

Pruitt Hall has been appointed to serve as director of WhiteFiber upon the commencement of trading of our Ordinary Shares on the Nasdaq Capital Market. Mr. Hall has served as Director, Mission Critical Services, Kirkland, Inc. in High Point, North Carolina since September 2008. There, he serves as a full-time career adjunct as AI infrastructure designer/builder/commissioning agent for data center clients. He is presently working with clients assisting in all phases of technology implementation from an infrastructure standpoint. From 1997 to 2008 he was Director of Technology Services, SSASE/Falk Integrated Technologies, Greensboro, North Carolina. Mr. Hall was made a Data Center Energy Practitioner, by the US Department of Energy in November 2017. Mr. Hall is qualified to serve as a member of our board of directors due to his extensive experience in infrastructure and data center services.

**Senior Management**

The following table sets forth the individuals who are expected to serve as WhiteFiber's senior management following the completion of this offering, and their respective ages as of June 30, 2025. Some of those persons will continue to be engaged by Bit Digital after the Reorganization. See "*Bit Digital will have significant voting power to control significant corporate actions. Bit Digital's interests may conflict with our interests or the interests of our other shareholders."*

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Justin Zhu | 44 | Senior Vice President of Finance and Chief Accounting Officer |
| Benjamin Lamson | 40 | Head of Revenue |
| Luna (Jingwei) Tan, CFA | 33 | Head of Operations |
| Cameron Schnier | 36 | Senior Vice President of Capital Markets and Corporate Strategy |
| Michael Francisco | 49 | Head of Marketing |
| Simon Hamelin-Choquette, CPA | 35 | Head of Data Centers Strategy |

---

Set forth below is biographical information, as well as background information relating to each member of senior management's business experience and qualifications.

***Justin Zhu***

Justin Zhu is serving as Senior Vice President of Finance and Chief Accounting Officer upon completion of the Reorganization. He has served and will continue to serve as Senior Vice President of Finance with Bit Digital since July 2021. Prior to Bit Digital, from 2015 until July 2021, he was a Senior Manager at Ernst & Young US LLP. He started his career at PricewaterhouseCoopers, LLP, focusing on public company audits. Mr. Zhu holds a Bachelor of Business Administration (Honors) in Accounting and a Master of Science in Taxation from Baruch College. He is a Certified Public Accountant (CPA).

***Benjamin Lamson***

 ****

Benjamin Lamson is serving as Head of Revenue of the Company. He commenced employment with Bit Digital on August 1, 2024. Prior thereto, from July 2023, he served as Head of Paperspace Revenue at Digital Ocean. He joined Paperspace in June 2021 as Head of Sales and Customer Success and last held the position of Chief Revenue Officer when he designed and deployed a hybrid product-led-growth and product-led sales motion. From June 2019 until May 2021 Mr. Lamson was Vice President of Sales at Allegiance Group where he built out a scalable, repeatable and predictable lead generation engine, designed a standardized sales playbook that is widely used across both the Sales and Customer Success Divisions, and played a key role in the integration of acquired companies. Prior thereto, he was Co-Founder and Vice President of Sales at WeDidit, which was acquired by Allegiance Fundraising Group in July 2023. Ben formed WeDidit, an online giving platform for non-profits. Ben has a B.A. in Communications from American University, Washington D.C. in 2008.

***Luna Jingwei Tan, CFA***

 ****

Ms. Tan has been employed by Bit Digital since November 2022. She has served as Head of Operations of WhiteFiber since February 2025, and will continue in this role following the Reorganization. She leads the company's cloud business initiatives, overseeing cloud operations and data center infrastructure. From December 2017 to December 2022, she was Associate Director of Rating Advisory at Standard Chartered Bank (Hong Kong), advising on credit and ratings strategy for high-yield real estate sector. Ms. Tan is a CFA charterholder and holds an MSc in management from Lancaster University UK.

***Cameron Schnier***

Mr. Schnier is serving as Senior Vice President of Capital Markets and Corporate Strategy for the Company. He has served as Head of Investor Relations for Bit Digital since February 2022. In addition to leading the Company's investor relations program, he is also expected to play an integral role in our strategic and business development initiatives. Prior to joining Bit Digital, he was a Vice President at Wolfe Research where he covered energy and industrial technology stocks (2018-2021). He was a research associate at Evercore (2014-2018). He began his career at MUFG Group where he served in various market risk and credit strategy roles (2012-2014). Mr. Schnier received a B.S. in Business Administration from Washington & Lee University. He is a CFA charterholder.

***Michael Francisco***

Mr. Francisco commenced employment as Head of Marketing of WhiteFiber in February 2025. From June 2023 until joining the Company, Michael was Vice President of Marketing at Liquibase. From June 2022 until October 2022, he was Vice President of Marketing of Common Room. From June 2021 until May 2022, Michael was Vice President, Growth and Ecosystem of Sumo Logic. From July 2018 until May 2021, Michael was Head of Product Marketing of GitHub. From February 2016 until June 2018, Michael was Head of Alexa Skills Kit Partners and from March 2013 to February 2016, he was Manager, Developer and App Partner of Marketing at Amazon, Seattle, Washington. Prior thereto, he was Group Manager, U.S Windows 8 Marketing at Microsoft Corporation, Redmond, Washington. Mr. Francisco received a B.S. in Psychology with a minor in Spanish from Willamette University.

***Simon Hamelin-Choquette, CPA***

Mr. Hamelin-Choquette has served as Head of Data Center Strategy of WhiteFiber since February 2025. He has served as Chief Strategy and Commercial Officer of Enovum since its formation on July 13, 2023. Prior thereto, he held that position with Enovum's predecessor company Nworks Management Corp. from February 2022. From June 2017 until March 2022, Simon was held several roles, including Director, Corporate Finance at BMO Financial Group. Mr. Hamelin-Choquette has a Bachelor in Business Administration in accounting and finance and a Graduate Diploma in Public Accounting, Accounting and Finance from HEC Montreal; and a Master of Business Administration in Accounting from UQAM School of Management. He is a Chartered Professional Accountant (CPA).

**Terms of Directors and Officers**

Our officers are elected by and serve at the discretion of the Board. Our directors are not subject to a set term of office and hold office until the next general meeting (unless re-appointed by ordinary resolution at such annual general meeting) or such time as they resign, are removed from office by ordinary resolution or otherwise ceases to be eligible to be a director of the Company pursuant to our A&R M&A. A director will be removed from office automatically if, among other things, the director becomes bankrupt or makes any arrangement or composition with his creditors generally or is found to be or becomes of unsound mind.

**Controlled Company; Foreign Private Issuer**

Bit Digital, our parent, will own approximately 80% of the voting power of our Ordinary Shares following this offering and we will be a "controlled company" as defined under the Nasdaq Listing Rules. For so long as we are a "controlled company", we are permitted to elect to rely, and may rely, on certain exemptions from corporate governance rules, including:

● an exemption from the rule that a majority of our board of directors must be independent directors;

● an exemption from the rule that requires a compensation committee comprised entirely of independent directors with a written charter addressing the committee's purpose and responsibilities; and

● an exemption from the rule that our director nominees must be selected or recommended solely by independent directors or by a nominations committee that consists entirely of independent directors with a written charter or board resolution addressing the nominations process.

Although we do not intend to rely on the "controlled company" exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future. If we elect to rely on any such exemptions, you will not have the same protections afforded to shareholders of companies that are subject to these corporate governance requirements. Our status as a "controlled company" could cause our Ordinary Shares to look less attractive to certain investors or otherwise harm the trading price of the Ordinary Shares. Please see "*Risk Factors — Risks Related to WhiteFiber Ordinary Shares — We will be a "controlled company" as defined under the Nasdaq Listing Rules. Although we do not intend to rely on the 'controlled company' exemptions under the Nasdaq Listing Rules, we could elect to rely on one or more of these exemptions in the future and you will not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements*."

In addition, as a foreign private issuer, we will also be entitled to follow home country practices in lieu of certain corporate governance requirements of Nasdaq, including the Nasdaq requirement to have a board comprised of a majority of independent directors, independent director oversight of executive compensation and nomination of directors, and other matters. Although we do not intend to rely on such exemptions, if we do in the future, you may not have the same protections afforded to shareholders of companies that are not foreign private issuers.

**THE BOARD AND BOARD COMMITTEES**

**Composition of Board; Risk Oversight**

Upon completion of this offering, the WhiteFiber Board of Directors will initially consist of five directors. There are no family relationships between any of our executive officers and directors. Our Board will hold meetings on at least a quarterly basis. There are no arrangements or understandings pursuant to which our directors are selected or nominated.

There is no formal requirement under the A&R M&A mandating that we hold an annual general meeting however we intend to hold annual general meetings.

The Board will also dedicate time to review and consider the relevant risks that need to be addressed at the time of any Board meeting. In addition to the full Board, the Audit Committee will play an important role in the oversight of our risk management processes, as well as assessing our major financial risk exposures. The Compensation Committee will be charged with reviewing our compensation policies and practices and confirming that they do not encourage risk taking in a manner that would have a material adverse impact on us. The Nominating and Corporate Governance Committee will be responsible for overseeing risks related to our governance processes. Each of the Board's committees will report its findings to the full Board for consideration.

**Director Independence**

A majority of the WhiteFiber board of directors will be composed of directors who are "independent" as defined by the rules of Nasdaq and the Corporate Governance Guidelines, as described more fully below, to be adopted by the WhiteFiber board of directors. in connection with this offering. An "independent director" is defined generally under the Nasdaq Rules as a person other than an officer or employee of the Company or its subsidiaries or any other individual having a relationship which in the opinion of the Company's board of directors, would interfere with the director's exercise of independent judgment in carrying out the responsibilities of a director.

WhiteFiber will seek to have all of its non-management directors qualify as "independent" under these standards. In making this determination, the WhiteFiber board of directors will consider all relevant facts and circumstances. The Corporate Governance Guidelines will include a list of all categories of material relationships affecting the determination of a director's independence. Any relationship that falls below a threshold set forth in the Corporate Governance Guidelines, or is not otherwise listed in the Corporate Governance Guidelines, and is not required to be disclosed under Item 404(a) of SEC Regulation S-K, will be deemed to be an immaterial relationship.

The WhiteFiber board of directors will assess on a regular basis, and at least annually, the independence of directors and, based on the recommendation of the Nominating and Corporate Governance Committee, will make a determination as to which members are independent. The WhiteFiber board of directors has determined that each of Ichi Shih, Jiashu (Bill) Xiong, David Andre and Pruitt Hall satisty the director independence criteria of the Nasdaq Listing Rules.

**Duties of Directors**

As a matter of Cayman Islands law, a director owes three types of duties to the company: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Companies Act imposes a number of statutory duties on a director. A Cayman Islands director's fiduciary duties are not codified, however the courts of the Cayman Islands have held that a director owes the following fiduciary duties (a) a duty to act in what the director bona fide considers to be in the best interests of the company as a whole, (b) a duty to exercise their powers for the purposes they were conferred and not for a collateral purpose, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill, care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher standard than a director without those skills. In fulfilling their duty of care to us, our directors must ensure compliance with our A&R M&A, as amended and restated from time to time. We have the right to seek damages where certain duties owed by any of our directors are breached.

Cayman Islands law does not limit the extent to which a company's A&R M&A may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime.

**Board Committees**

Upon the effectiveness of the registration statement of which this prospectus forms a part, the standing committees of our board will consist of the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee. Each of the committees of the Board will have the composition and responsibilities described below.

The Audit Committee will be responsible for overseeing the accounting and financial reporting processes of our company and audits of the financial statements of our company, including the appointment, compensation and oversight of the work of our independent auditors. The Compensation Committee will be responsible for reviewing and making recommendations to the board regarding our compensation policies for our officers and all forms of compensation, and also administers our incentive compensation plans and equity-based plans (but our board retains the authority to interpret those plans). The Nominating Committee will be responsible for the assessment of the performance of the board, considering and making recommendations to the board with respect to the nominations or elections of directors and other governance issues. The Nominating Committee will consider diversity of opinion and experience when nominating directors.

**Audit Committee**

The Audit Committee will be responsible for, among other matters:

● appointing, compensating, retaining, evaluating, terminating, and overseeing our independent registered public accounting firm;

● discussing with our independent registered public accounting firm the independence of its members from its management;

● reviewing with our independent registered public accounting firm the scope and results of their audit;

● approving all audit and permissible non-audit services to be performed by our independent registered public accounting firm;

● overseeing the financial reporting process and discussing with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC;

● reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls, and compliance with legal and regulatory requirements;

● coordinating the oversight by our board of directors of our code of business conduct and our disclosure controls and procedures

● establishing procedures for the confidential and/or anonymous submission of concerns regarding accounting, internal controls or auditing matters; and

● reviewing and approving related-party transactions.

Our Audit Committee will be comprised of Ms. Ichi Shih, serving as Chair of the Audit Committee and will include, as members, David Andre, Pruitt Hall and Jiashu (Bill) Xiong. Our board has affirmatively determined that each of the members of the Audit Committee meets the definition of "independent director" for purposes of serving on an Audit Committee under Rule 10A-3 of the Exchange Act and Nasdaq rules. In addition, our board has determined that Ms. Ichi Shih qualifies as an "audit committee financial expert" as such term is currently defined in Item 407(d)(5) of Regulation S-K and meets the financial sophistication requirements of the Nasdaq rules.

Our Audit Committee will have a written charter, which will be available on our website upon the completion of this offering.

**Compensation Committee**

The Compensation Committee will be responsible for, among other matters:

● reviewing and approving, or recommending to the board of directors to approve the compensation of our CEO and other executive officers and directors;

● reviewing key employee compensation goals, policies, plans and programs;

● administering incentive and equity-based compensation;

● reviewing and approving employment agreements and other similar arrangements between us and our executive officers; and

● appointing and overseeing any compensation consultants or advisors.

Our Compensation Committee will be comprised of Ichi Shih, David Andre, Pruitt Hall and Jiashu (Bill) Xiong, with Mr. Hall serving as chair of the Compensation Committee.

Our Compensation Committee will have a written charter, which will be available on our website upon the completion of this offering.

**Nominating and Corporate Governance Committee**

The Nominating Committee will be responsible for, among other matters:

● selecting or recommending for selection candidates for directorships;

● evaluating the independence of directors and director nominees;

● reviewing and making recommendations regarding the structure and composition of our board and the board committees;

● developing and recommending to the board corporate governance principles and practices;

● reviewing and monitoring the Company's Code of Business Conduct and Ethics; and

● overseeing the evaluation of the Company's management.

Our Nominating Committee will be comprised of Ichi Shih, David Andre, Pruitt Hall and Jiashu (Bill) Xiong with Jiashu (Bill) Xiong serving as chair of the Nominating Committee.

The Nominating and Corporate Governance Committee will consider director candidates recommended by shareholders. The corporate secretary will promptly forward all such letters to the members of the Nominating Committee.

Our Nominating and Corporate Governance Committee will have a written charter, which will be available on our website upon the completion of this offering.

**Board Member Attendance at Annual Meetings**

Our Board members are generally expected to attend our Annual Meetings in person or by telephone unless personal circumstances make the Board member's attendance impracticable or inappropriate.

**Shareholder Communications with Directors**

We have no formal written policy regarding communication with the members of the Board. Persons wishing to write to the Board or to a specified director or committee of the Board should send correspondence to the Secretary at our main office. Electronic submissions of shareholder correspondence will not be accepted. The Secretary will forward to the directors all communications that, in his judgment, are appropriate for consideration by the directors. Any correspondence received that is addressed generically to the Board will be forwarded to the Chairman of the Audit Committee.

**Interested Transactions**

Except as expressly permitted by our A&R M&A, a director may not have a direct or indirect interest or duty which conflicts or may possibly conflict with the interests of the Company. However, if a director discloses to their fellow directors the nature and extent of any material interest or duty in accordance with our A&R M&A they may: (a) be a party to, or otherwise interested in, any transaction or arrangement with the Company or in which the Company is or may otherwise be interested; or (b) nominating be interested in another body corporate promoted by the Company or in which the Company is otherwise interested. In particular, the director may be a director, secretary or officer of, or employed by, or be a party to any transaction or arrangement with, or otherwise interested in, that other body corporate. If a director has made disclosure in accordance with our A&R M&A, then they shall not, by reason only of their office, be accountable to the Company for any benefit that they derive from any such transaction or arrangement or from any such office or employment or from any interest in any such body corporate, and no such transaction or arrangement shall be liable to be avoided on the ground of any such interest or benefit.

A director may vote at a meeting of directors on any resolution concerning a matter in which that director has an interest or duty, whether directly or indirectly, so long as that director discloses any material interest pursuant to our A&R M&A. The director shall be counted towards a quorum of those present at the meeting and, if the director votes on the resolution, their vote shall be counted.

A general notice that a director gives to the other directors that they are to be regarded as having an interest of the nature and extent specified in the notice in any transaction or arrangement in which a specified person or class of persons is interested shall be deemed to be a disclosure that he has an interest in or duty in relation to any such transaction of the nature and extent so specified.

**Remuneration and Borrowing**

The directors may receive such remuneration as our board of directors may determine in a general meeting. Each director is entitled to be repaid or prepaid for all traveling, hotel and incidental expenses reasonably incurred or expected to be incurred in attending meetings of our board of directors or committees of our board of directors or shareholder meetings or otherwise in connection with the discharge of his or her duties as a director. The compensation committee will assist the directors in reviewing and approving the compensation structure for the directors. Our board of directors may exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation of the company or of any third party.

**Qualification**

A director is not required to hold Ordinary Shares as a qualification to office.

**Code of Business Conduct and Ethics**

We will adopt a new Code of Business Conduct and Ethics that applies to all of our directors, officers, and employees, including our chief executive officer and chief financial and accounting officer. Our Code of Business Conduct and Ethics will be available on our website upon the completion of this offering. Our Code of Business Conduct and Ethics is a "code of ethics," as defined in Item 406(b) of Regulation S-K. We will make any legally required disclosures regarding amendments to, or waivers of, provisions of our code of ethics on our website.

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Executive Compensation**

As discussed elsewhere in this prospectus, Bit Digital is separating into two publicly traded companies, Bit Digital and WhiteFiber. WhiteFiber is not yet a separate company. Following the Reorganization and this offering, WhiteFiber and Bit Digital will initially have the same Chief Executive Officer and Chief Financial Officer, however, WhiteFiber will have two new executive officers and new Senior Management as described above. This section describes the compensation provided by Bit Digital to the principal executive officer and the two most highly compensated executive officers (other than the principal executive officer) of WhiteFiber for their services to Bit Digital during 2024 (referred to as "the named executive officers"):

● Sam Tabar, *Chief Executive Officer* 

● Erke Huang, *Chief Financial Officer and Director* 

● Thomas Sanfilippo, *Chief Technology Officer* 

It is expected that, following this offering and continuing until up to two years thereafter, Sam Tabar and Erke Huang will continue to serve as officers and Mr. Huang as a director of Bit Digital. They are expected to provide certain services, representing not more than approximately 30% of their working time, in respect of Bit Digital operations and have committed to provide the requisite time and effort to fulfill their responsibilities as a full-time officer of White Fiber, supervising a full staff . Pursuant to the Transition Services Agreement, a percentage of their working time spent on WhiteFiber's operations will be allocated to WhiteFiber and expensed by Bit Digital. These expenses have been allocated on the basis of direct usage when identifiable with the remainder allocated on the basis of a percentage of revenue or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. The Transition Services Agreement will terminate on the earliest to occur of (i) the date on which the provisions of all services have terminated (inclusive of any term extension agreed to by the parties), (ii) the date on which the provision of all services has been terminated by the parties and (iii) 24 months after the Reorganization.

This section describes Bit Digital's 2024 compensation program elements applicable to the named executive officers, and certain other Bit Digital executive compensation plans, policies and practices, as well as certain aspects of WhiteFiber's anticipated executive compensation arrangements following this offering.

**Compensation Committee Responsibilities and Objectives**

The compensation committee of the WhiteFiber board of directors (the "WhiteFiber compensation committee") will be responsible for designing and approving the executive compensation program and setting compensation opportunities for the executive officers of WhiteFiber. We expect that the objectives of the WhiteFiber executive compensation program will be as follows:

● recruit, motivate, reward, and retain high performing executive talent required to create superior shareholder value;

● reward executives for short-term performance as well as for growth in enterprise value over the long-term;

● ensure effective utilization and development of talent by working in concert with other management processes - for example, performance appraisal, succession planning, and management development;

● help ensure that compensation programs do not encourage or reward excessive or imprudent risk taking; and

● provide a competitive package relative to industry-specific and general industry comparisons and internal equity, as appropriate.

**2024 Compensation of Named Executive Officers** 

**Summary Compensation Table**

The following table sets forth the cash and non-cash compensation awarded to or earned by each of the named executive officers for their services to Bit Digital during the fiscal year ended December 31, 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year** | **Salary<br> ($)** | **Bonus<br> ($)<sup>(4)</sup>** | **Stock<br> Awards<br> ($)<sup>(5)</sup>** | **Option<br> Awards<br> ($)** | **Non-Equity<br> Incentive Plan<br> Compensation<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Sam Tabar<sup>(1)</sup> | 2024 | 500000 | 1100000 | 3222650 |  |  |  | 4822650 |
| &nbsp;&nbsp;&nbsp;Chief Executive Officer |  |  |  |  |  |  |  |  |
| Erke Huang<sup>(2)</sup> | 2024 | 597963 | 1100000 | 3523650 |  |  |  | 5221613 |
| &nbsp;&nbsp;&nbsp;Chief Financial Officer |  |  |  |  |  |  |  |  |
| Thomas Sanfilippo | 2024 | 102083 | 100000 | 1447388 |  |  |  | 1649471 |
| &nbsp;&nbsp;&nbsp;Chief Technology Officer<sup>(3)</sup> |  |  |  |  |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Mr. Tabar served as CSO of Bit Digital from March 31, 2021 to March 31, 2023. On March 31, 2023, Mr. Tabar began to serve as Chief Executive Officer of Bit Digital.

(2) Mr. Huang has served as CFO of Bit Digital since October 18, 2019 and as Interim CEO from February 2, 2021 until March 31, 2021. On March 31, 2023, with a change in senior management, Mr. Huang's salary increased to $600,000 per annum, pursuant to an amendment to his employment agreement with Bit Digital, as summarized below under "Employment Agreements."

(3) Mr. Sanfilippo began to serve as Chief Technology Officer of WhiteFiber AI in September 2024.

(4) The bonuses paid to Messrs. Tabar and Huang were performance incentives made under and in accordance with the Company's 2023 and 2025 Omnibus Equity Incentive Plans. A portion of the RSUs vested quarterly and another portion at December 31, 2024, based upon Bit Digital's average market capitalization.

(5) The "Stock Awards" column represents the aggregate grant date fair value for RSUs granted under Bit Digital's equity incentive plans during fiscal year 2024, computed in accordance with Financial Accounting Standards Board ("FASB") ASC Topic 718 ("ASC 718"). See Note 2 to Bit Digital's combined financial statements for details on the assumptions used to determine the grant date fair value of these awards. In 2024, Mr. Tabar was awarded 945,000 restricted share units ("RSUs"), Mr. Huang was awarded 1,045,000 RSUs, and Mr. Sanfilippo was awarded 429,492 RSUs. Each of these awards was granted under Bit Digital's equity incentive plans.

**Other Benefits**

The Company's subsidiary WhiteFiber HPC, Inc. sponsors a tax qualified Code Section 401(k) retirement saving plan (the "401k Plan"), for the benefit of its employees, including the named executive officers. The 401k Plan encourages savings for retirement by enabling participants to make contributions on a pre-tax basis and to defer taxation on earnings on funds contributed to the 401k Plan. WhiteFiber HPC makes matching contributions to the 401k Plan, with the matching rate for 2024 being 100% of a participant's deferrals up to 4% of the participant's eligible compensation.

The Company has not set aside or accrued any amount to provide pension, retirement or other similar benefits to our executive officers and directors other than the described 401(k) plan.

**Share Options/Restricted Share Units**

On February 6, 2025, the Company's Board of Directors adopted the 2025 Omnibus Equity Incentive (the "2025 Plan") to provide an additional means through the grant of awards to attract, motivate, retain and reward selected employees and other eligible persons. The summary of the 2025 Plan below is qualified in its entirety by the full text of the plan document, which has been filed with the SEC as an exhibit to the Registration Statement of which this prospectus is a part and is available through the Securities and Exchange Commission's internet site at http://www.sec.gov.

Employees, directors and consultants that provide services to the Company or one of its subsidiaries may be selected to receive awards under the 2025 Plan. An aggregate of 275,857 restricted share units ("RSUs") have already been allocated to certain officers, directors and employees of WhiteFiber and 40,000 shares have been allocated to a director, which equity will be granted upon the effectiveness of this Registration Statement. The Compensation Committee will administer the 2025 Plan and has broad authority to:

● select participants and determine the types of awards that they are to receive;

● determine the number of shares that are to be subject to awards and the terms and conditions of awards, including the price (if any) to be paid for the shares or the award and establish the vesting conditions (if applicable) of such shares or awards;

● cancel, modify or waive the Company's rights with respect to, or modify, discontinue, suspend or terminate any or all outstanding awards, subject to any required consents;

● construe and interpret the terms of the 2025 Plan and any agreements relating to the 2025 Plan;

● accelerate or extend the vesting or exercisability or extend the term of any or all outstanding awards subject to any required consent;

● subject to the other provisions of the 2025 Plan, make certain adjustments to an outstanding award and authorize the termination, conversion, substitution or succession of an award; and

● allow the purchase price of an award or Ordinary Shares to be paid in the form of cash, by the delivery of previously-owned Ordinary Shares or by a reduction of the number of shares deliverable pursuant to the award, by services rendered by the recipient of the award, by notice and third party payment or cashless exercise on such terms as the administrator may authorize or any other form permitted by law.

A total of 12,000,000 of the Company's Ordinary Shares will initially be authorized for issuance with respect to awards granted under the 2025 Plan. Any shares subject to awards that are not paid, delivered or exercised before they expire or are canceled or terminated, fail to vest will become available for other award grants under the 2025 Plan. Shares used to pay the purchase or exercise price of awards or related tax withholding obligations will not be available for other award grants under the 2025 Plan.

Awards under the 2025 Plan may be in the form of incentive or non-statutory share options, share appreciation rights, share bonuses, restricted shares, RSUs and other forms of awards including cash awards. Awards under the 2025 Plan generally will not be transferable other than by will or the laws of descent and distribution, except that the 2025 Plan administrator may authorize certain transfers.

Share options and share appreciation rights may not be granted at prices below the fair market value of the Company's Ordinary Shares on the date of grant. Options intended to qualify as incentive share options must have an exercise price that is at least equal to the fair market value of the Company's Ordinary Shares on the date of grant (or 110% of the fair market value of the Company's Ordinary Shares for incentive share option grants to any 10% owner of the Company's Ordinary Shares). The maximum term of share options and share appreciation rights granted under the 2025 Plan is 10 years (or five years for incentive share option grants to any 10% owner of the Company's Ordinary Shares). These and other awards may also be issued solely or in part for services. Awards are generally paid in the Company's Ordinary Shares or in cash. The 2025 Plan administrator may provide for the deferred payment of awards and may determine the terms applicable to deferrals.

As is customary in incentive plans of this nature, the number and type of shares available under the 2025 Plan and any outstanding awards, as well as the exercise or purchase prices of awards, will be subject to adjustment in the event of certain reorganizations, mergers, combinations, recapitalizations, share splits, share dividends or other similar events that affect the Company's Ordinary Shares. In no case (except due to an adjustment referred to above or any repricing that may be approved by the shareholders) will any adjustment be made to a share option or share appreciation right award under the 2025 Plan (by amendment, cancellation and regrant or other means) that would constitute a repricing of the per-share exercise or base price of the award.

Generally, and subject to limited exceptions set forth in the 2025 Plan, if the Company dissolve or undergoes certain corporate transactions such as a merger, business combination or other reorganization, or a sale of substantially all of the Company's Ordinary Shares, all awards then-outstanding under the 2025 Plan will terminate or be terminated in such circumstances, unless the 2025 Plan administrator provides for the assumption, substitution or other continuation of the award, provided that participants will have the opportunity to exercise vested options or share appreciation rights prior to the termination of such awards or such vested awards will be settled in cash, securities or other property upon the transaction. The 2025 Plan administrator also has the discretion to establish other change in control provisions with respect to awards granted under the 2025 Plan. For example, the administrator could provide for the acceleration of vesting or payment of an award in connection with a corporate event that is not described above and provide that any such acceleration shall be automatic upon the occurrence of any such event.

The Company's Board of Directors may amend or terminate the 2025 Plan at any time, but no such action will affect any outstanding award in any manner materially adverse to a participant without the consent of the participant. 2025 Plan amendments will be submitted to shareholders for their approval as required by applicable law or any applicable listing agency. The 2025 Plan is not exclusive – the Board of Directors and Compensation Committee may grant incentives or other compensation, in shares or cash, under other plans or authority.

The 2025 Plan will terminate on February 6, 2035 if not terminated earlier by the Board of Directors. However, the 2025 Plan administrator will retain its authority under the 2025 Plan until all outstanding awards are exercised or terminated.

**Outstanding Equity Awards at Fiscal Year-End**

The table below summarizes all outstanding and unexercised options, and outstanding restricted stock and restricted stock unit awards that have not vested, for each named executive officer as of December 31, 2024, such awards in each case having been granted by Bit Digital under its equity incentive plans.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Number of Securities Underlying Unexercised Options (#) Exercisable** | **Number of Securities Underlying Unexercised Options (#) Unexercisable** | **Option Exercise Price <br> ($)** | **Option Expiration Date** | **Number of Shares or Units of Stock That Have Not Vested<br> (#)** | **Market Value of<br> Shares or Units of Stock That Have Not Vested<br> ($)<sup>(1)</sup>** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units Or Other Rights That Have Not Vested<br> (#)** | **Equity Incentive Plan Awards: Market or Payout Value or Unearned Or Other Rights That Have Not Vested<br> ($)<sup>(1)</sup>** |

---

**Employment Agreements**

***Sam Tabar***

Mr. Tabar has been employed by Bit Digital under a two-year Employment Agreement, effective March 31, 2021 until March 31, 2023. He was compensated at a base salary of $125,000 per annum during 2021. Pursuant to an amendment dated January 1, 2022, Mr. Tabar's base salary was increased to $500,000 commencing January 1, 2022 through the end of the two-year term. He was awarded 120,765 RSUs under his Employment Agreement pursuant to the terms and conditions of the 2021 Omnibus Equity Incentive Plan.

Pursuant to a second amendment to the Employment Agreement dated March 31, 2023, Bit Digital extended the term of the Employment Agreement for an additional two years with Mr. Taber assuming the role of Chief Executive Officer. Mr. Taber's salary remains $500,000 and his equity award compensation remains as pursuant to his original employment agreement and the 2021 Omnibus Equity Incentive Plan. The second amendment also provided that the Employment Agreement will not be terminated by Bit Digital at any time prior to the end of the Initial two-year Term except for Cause (as defined). In the event that Mr. Tabar's employment is terminated by Bit Digital without Cause commencing two years from the date of the Amendment, or at any time by Mr. Tabar for Good Reason, or as a result of expiration of the Employment Period by reason of Bit Digital's issuance of a Non-Renewal Notice, Bit Digital shall pay and/or provide Mr. Tabar with a single lump sum cash amount on the next regularly scheduled payroll date following Executive's date of termination, in an amount equal to the number of years employed by Bit Digital (or fraction thereof) plus two multiplied by one month of Base Salary with a minimum of six months Base Salary at all times during the Employment Period.

Mr. Tabar has agreed to hold, both during and after the termination or expiry of his employment agreement, in strict confidence and not to use, except as required in the performance of his duties in connection with the employment or pursuant to applicable law, any of our confidential information or trade secrets, any confidential information or trade secrets of our clients or prospective clients, or the confidential or proprietary information of any third party received by us and for which we have confidential obligations. Mr. Tabar has also agreed to assign all right, title and interest (including, but not limited to, patents and trademarks) in all inventions and designs which he conceives, develops or reduces to practice during his employment with Bit Digital and two years thereafter.

In addition, Mr. Tabar has agreed to be bound by non-competition and non-solicitation restrictions during the term of his employment. Specifically, Mr. Tabar has agreed not to (i) approach our suppliers, clients, customers or contacts or other persons or entities introduced to him in his capacity as a representative of Bit Digital for the purpose of doing business with such persons or entities that will harm Bit Digital's business relationships with these persons or entities; or (ii) seek directly or indirectly, to solicit the services of any of Bit Digital's employees who is employed by Bit Digital on or after the date of his termination, or in the year preceding such termination, without our express consent.

***Erke Huang***

On October 28, 2022, Bit Digital and Erke Huang entered into an employment agreement pursuant to which Bit Digital paid Mr. Huang $60,000 per annum as Chief Financial Officer of Bit Digital. In connection with a change in senior management of Bit Digital, Mr. Huang's base salary was increased to $600,000, with such compensation commencing on March 10, 2023. The agreement is for a term of two years and will renew automatically for one-year terms when not terminated by either party. Mr. Huang is eligible for bonuses as determined by the Board and eligible to participate in equity incentive plans of Bit Digital. Bit Digital shall also reimburse Mr. Huang for reasonable and approved expenses incurred by him in connection with the performance of his duties under his employment agreement. Mr. Huang is subject to a one-year non-competition and non-solicitation covenant from the date of termination of employment for any reason. In the event Mr. Huang's employment is terminated because of a Change of Control (as defined) he shall be entitled to: (1) a cash payment equal to one month's then base salary; (2) a pro-rated amount of his target annual bonus for year immediately preceding such termination ; (3) payment of premiums for the next 12 months under the Company's Health Plans; and (4) immediate vesting of 100% of then outstanding equity awards.

Mr. Erke Huang also entered into a director agreement on October 28, 2022, pursuant to which Bit Digital agreed to pay Mr. Huang one thousand (US$1,000) dollars per quarter for serving on the Board. Bit Digital shall also reimburse Mr. Huang for reasonable and approved expenses incurred by him in connection with the performance of his duties under his director agreement. Under the director agreement, Mr. Huang is subject to a one-year non-competition covenant and a three-year non-solicitation covenant.

***Thomas Sanfilippo***

Mr. Sanfilippo was hired by Bit Digital as its full-time Chief Technology Officer commencing on September 13, 2024 on an at-will basis. His salary is $350,000 per annum. Under his employment agreement he was awarded a $100,000 signing bonus and restricted share units valued at $1,200,000 vesting over four years in equal quarterly installments, following a one-year vesting cliff. If. Mr. Sanfilippo is terminated without Cause (as defined) and provides a separation and general release he shall be entitled to receive a severance payment equal to three months base salary and three month COBRA coverage.

**Director Compensation**

The following discussion sets forth the compensation awarded to or earned by each person who will serve as a director of WhiteFiber after this offering.

No director's fees have been paid by WhiteFiber prior to the Offering. The Company intends to pay David Andre and Pruitt Hall in accordance with their director agreements described below. Erke Huang, Ichi Shih, and Jiashu (Bill) Xiong will be paid $1,000 per quarter for serving on the Board, as well as incentive compensation, following the Reorganization and this offering. Ms. Shih will be awarded 40,000 restricted shares of the Company upon commencement of trading of the Company's Ordinary Shares on the Nasdaq Capital Market.

Mr. Erke Huang also entered into a director agreement on October 28, 2022, pursuant to which Bit Digital agreed to pay Mr. Huang one thousand (US$1,000) dollars per quarter for serving on the Board. Bit Digital shall also reimburse Mr. Huang for reasonable and approved expenses incurred by him in connection with the performance of his duties under his director agreement. Mr. Huang was not paid his director fees in 2024. Under the director agreement, Mr. Huang is subject to a one-year non-competition covenant and a three-year non-solicitation covenant.

Ms. Ichi Shih entered into a director agreement pursuant to which Bit Digital agreed to pay her one thousand ($1,000) dollars per quarter for serving on the Board for a one-year period, subject to a one-year renewal. In December 2023 and November 2024, 30,000 RSUs were awarded each time to Ms. Shih under the 2023 Omnibus Equity Incentive Plan with immediate vesting for her services as Chairman of the Audit Committee during 2023 and 2024. Bit Digital shall also reimburse Ms. Shih for reasonable and approved expenses incurred by him or her in connection with the performance of her duties under the director agreement. Ms. Shih has been awarded 40,000 Ordinary Shares upon commencement of the trading of our Ordinary Shares on the Nasdaq Capital Market.

As recommended by Bit Digital's Nominating and Corporate Governance Committee, Bit Digital entered into a Director Agreement with Jiashu (Bill) Xiong, pursuant to which Mr. Xiong has served as executive director on Bit Digital's Board of Directors, effective October 13, 2023. The Director Agreement provides for Mr. Xiong to serve on Bit Digital's subcommittees, the Board's Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee, as reasonably requested and if permitted under Nasdaq Rules. Mr. Xiong is receiving cash compensation for his services on the Board equal to $4,000 a year paid on a quarterly basis. Mr. Xiong is also receiving an annual salary of $68,000 from Bit Digital Canada, Inc., as Bit Digital's IT Director. While Mr. Xiong is a member of the Board and for a twelve-month period following termination of the Director Agreement, he cannot have any connections with any business or venture that competes, directly or indirectly, with Bit Digital. For a period of three (3) years from termination of the Director Agreement, Mr. Xiong is prohibited from interfering with Bit Digital's relationship with or seek to have any employee or customer of Bit Digital leave Bit Digital.

Mr. David Andre entered into a Director Agreement on April 15, 2025, effective upon commencement of trading of our Ordinary Shares on the Nasdaq Capital Market. Under the agreement, the Company agreed to pay Mr. Andre as an independent director, $10,000 per month, and a grant of $250,000 in value of Bit Digital RSUs, effective the date of his agreement vesting quarterly over a one-year period from the date of grant. The RSUs were granted at the closing price of Bit Digital Ordinary Shares on the day prior to the date of this agreement. In the event the agreement is terminated for any reason (other than Cause) Mr. Andre shall be entitled to six (6) months' severance of both the director's fee of $60,000 and of six months' of his RSUs. Mr. Andre shall be eligible for the grant of additional equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof. Mr. Andre shall be reimbursed for reasonable expenses incurred by Director in connection with the performance of his duties, including reasonable travel expenses for in-person meetings.

Mr. Pruitt Hall entered into a Director Agreement on May 5, 2025, effective upon the commencement of trading of our Ordinary Shares on the Nasdaq Capital Market. Under the agreement, the Company agreed to pay Mr. Hall, as an independent director, $150,000 on a quarterly basis. In the event the agreement is terminated for any reason (other than for Cause), Mr. Hall shall be entitled to the three (3) months' severance, consisting of the director fees of $37,500. Mr. Hall shall be eligible for the grant of additional equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof. Mr. Hall shall be reimbursed for reasonable expenses incurred by him in connection with the performance of his duties, including reasonable travel expenses for in-person meetings.

There have been no transactions in the past two years to which Bit Digital or any of its subsidiaries was or is to be a party, in which each independent director had, or will have, a direct or indirect material interest.

**Director Compensation Table — Fiscal Year 2024**

The following table sets forth compensation paid by Bit Digital to members who will serve on the WhiteFiber Board of Directors and who served on the Bit Digital Board of Directors during fiscal 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Fees <br> Earned or<br> Paid in Cash<br> ($)** | **Stock<br> Awards<br> ($)<sup>(1)(2)</sup>** | **Option<br> Awards<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Ichi Shih | $20000 | $162600 |  |  | $186600 |
| Jiashu (Bill) Xiong | 4000 |  |  |  |  |
| Erke Huang | $4000 |  | —<sup>(3)</sup> |  | $4000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The "Stock Awards" column represents the aggregate grant date fair value for RSUs granted under Bit Digital's equity incentive plans during fiscal year 2024, computed in accordance with Financial Accounting Standards Board ("FASB") ASC Topic 718 ("ASC 718"). See Note 2 to Bit Digital's combined financial statements for details on the assumptions used to determine the grant date fair value of these awards.

(2) As of December 31, 2024, the directors listed in the table above held outstanding and unvested stock awards (including RSUs) and outstanding and unexercised options with respect to the number of ordinary shares of Bit Digital set forth below:

(3) See "*2024 Compensation of Named Executive Officers*" for information concerning all compensation paid to Mr. Huang as Chief Financial Officer of
 Bit Digital.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Stock<br> Awards<br> (#)** | **Stock<br> Awards<br> (#)** | **Option<br> Awards<br> (#)** |
| Ichi Shih |  | 30000 |  |
| Jiashu (Bill) Xiong |  | None |  |
| Erke Huang |  | None |  |

---

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

In addition to the compensation arrangements discussed in the section titled "Executive Compensation," the following is a description of each transaction since January 1, 2022 and each currently proposed transaction in which:

● WhiteFiber or any of its subsidiaries have been or are to be a participant;

● the amount involved exceeded or will exceed $120,000; and

● any of its directors, executive officers, or holders of more than 5% of our outstanding capital stock, or any immediate family member of, or person sharing the household with, any of these individuals, had or will have a direct or indirect material interest.

**Existing related-party transactions** 

WhiteFiber AI's subsidiary, WhiteFiber Iceland ehf, has appointed Daniel Jonsson as its part-time Chief Executive Officer starting November 7, 2023, for a six-month term with a three-month probation. His compensation includes a monthly salary of $8,334, a $6,440 signing bonus, and eligibility for performance-based RSU. Concurrently, Daniel Jonsson is part of the management team at GreenBlocks ehf which not only provides bitcoin mining hosting services but also benefits from a facility loan agreement extended by Bit Digital USA Inc., an affiliate of WhiteFiber Iceland ehf. Additionally, WhiteFiber Iceland ehf has contracted GreenBlocks ehf for consulting services pertaining to our high-performance computing services in Iceland. As of December 31, 2023, WhiteFiber Iceland ehf owed $21,592 to Daniel Jonsson for salary and bonus, and $160,000 to GreenBlocks ehf for services rendered. By the end of the first quarter of 2024, we had settled these outstanding amounts with both Daniel Jonsson and GreenBlocks ehf.

Bit Digital made a payment of $1 million on behalf of WhiteFiber Iceland ehf, when Bit Digital Iceland ehf entered into a simple agreement for future equity ("SAFE") agreement for an initial investment amount of $1 million in exchange for a right to participate in a future equity financing of preferred stock to be issued by Canopy Wave Inc. ("Canopy"). By the end of the third quarter of 2024, we had settled this outstanding amount with Bit Digital.

**Guarantees**

Bit Digital has issued a guarantee to a third party on behalf of WhiteFiber Iceland ehf, making Bit Digital jointly and severally liable for WhiteFiber Iceland's payment obligations related to hosting Services fees and electrical costs under to the colocation agreement. There were no payments outstanding as of March 31, 2025.

**Allocation of corporate expenses**

The Company's financial statements include Bit Digital's general corporate expenses which were not historically allocated to the Company for certain support functions provided by Bit Digital. For the purposes of these financial statements, these general corporate expenses have been allocated to the Company. The allocations cover corporate services provided by Bit Digital, including, but not limited to, finance, tax, investor relations, and marketing. Some of these services will continue to be provided by Bit Digital on a temporary basis after this offering is completed under the Transition Services Agreement described below. For the three months ended March 31, 2025, the twelve months ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, the Company was allocated $0.9 million, $5.7 million and $1.0 million for these corporate services. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of percent of revenue or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received.

**Agreements with Bit Digital**

Following the Reorganization, WhiteFiber and Bit Digital will operate separately, each as a separate public company. Prior to the Reorganization, WhiteFiber will enter into various agreements to provide a framework for its relationship with Bit Digital after the Reorganization.

These agreements will provide for the allocation between WhiteFiber and Bit Digital of WhiteFiber's assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) associated with WhiteFiber and will govern certain relationships between WhiteFiber and Bit Digital after the Reorganization. The forms of Contribution Agreement and Transition Services Agreement have been filed as exhibits to the registration statement of which this prospectus is a part.

***Section 351 Contribution Agreement***

 ****

Pursuant to a Section 351 Contribution Agreement to be effective upon the effective date of the Registration Statement of which this prospectus is a part, Bit Digital will Bit Digital will contribute its HPC business through the transfer of 100% of the capital shares of its cloud services subsidiary, WhiteFiber AI, Inc. and its wholly-owned subsidiaries WhiteFiber HPC, Inc. and WhiteFiber Iceland, ehf, (the "WhiteFiber Subsidiaries") to the Company (the "Contribution"). In connection with the Contribution, we will issue Ordinary Shares to Bit Digital (or up to Ordinary Shares to Bit Digital, if the underwriters' over-allotment option is exercised in full, which may occur at any point during the 30 days after the consummation of this offering), such that Bit Digital will own approximately 80% of our issued and outstanding Ordinary Shares upon the consummation of this offering (the "Bit Digital Issuance" and, collectively with the Contribution, the "Reorganization"). Pursuant to the Reorganization the following actions will occur: Pursuant to the Reorganization the following actions will occur:

● Assets (whether tangible or intangible) primarily related to, or included on the balance sheet of, WhiteFiber and its combined subsidiaries, which are referred to as the "WhiteFiber Assets," will be transferred to WhiteFiber, as applicable, generally including:

● Customer, distribution, supply and vendor contracts (or portions thereof) to the extent they relate to WhiteFiber.

● Certain third-party vendor contracts for services primarily related to WhiteFiber.

● Rights to technology, software and intellectual property primarily related to WhiteFiber.

● Exclusive rights to information exclusively related to WhiteFiber and nonexclusive rights to information related to WhiteFiber.

● Rights and assets expressly allocated to WhiteFiber Subsidiaries pursuant to the terms of the Transition Services Agreement or certain other agreements entered into in connection with the separation and reorganization.

● Permits used by WhiteFiber.

● Other assets that are included in WhiteFiber's pro forma balance sheet.

● Liabilities primarily related to, or included on the balance sheet of, WhiteFiber, which are referred to as "WhiteFiber's Liabilities," will be retained by or transferred to Bit Digital, as applicable.

● All of the assets and liabilities (including whether accrued, contingent, or otherwise) other than the WhiteFiber Assets and WhiteFiber Liabilities (such assets and liabilities, other than the WhiteFiber Assets and the WhiteFiber Liabilities, referred to as the "Bit Digital Assets" and "Bit Digital Liabilities," respectively) will be retained by or transferred to Bit Digital, as applicable.

Except as expressly set forth in the Contribution Agreement or any ancillary agreement, neither WhiteFiber nor Bit Digital will make any representation or warranty as to (1) the assets, business or liabilities transferred or assumed as part of the Reorganization, (2) any approvals or notifications required in connection with the transfers, (3) the value of or the freedom from any security interests of any of the assets transferred, (4) the absence or presence of any defenses or right of setoff or freedom from counterclaim with respect to any claim or other asset of either WhiteFiber or Bit Digital, or (5) the legal sufficiency of any assignment, document or instrument delivered to convey title to any asset or thing of value to be transferred in connection with the Reorganization. All assets will be transferred on an "as is," "where is" basis, and the respective transferees will bear the economic and legal risks that any conveyance will prove to be insufficient to vest in the transferee good and marketable title, free and clear of all security interests, and that any necessary consents or governmental approvals are not obtained or that any requirements of laws, agreements, security interests or judgments are not complied with.

**Employee Matters**

WhiteFiber and Bit Digital will allocate liabilities and responsibilities relating to employment matters, employee compensation and benefits plans and programs and other related matters. Unless otherwise specified, Bit Digital will be responsible for liabilities associated with employees who will be employed by Bit Digital following the Reorganization, former employees whose last employment was with the Bit Digital businesses, and WhiteFiber will be responsible for liabilities associated with employees who will be employed by WhiteFiber following the separation and former employees whose last employment was with WhiteFiber's businesses.

**Transition Services Agreement**

WhiteFiber and Bit Digital will enter into a transition services agreement prior to this offering pursuant to which Bit Digital will provide certain services to WhiteFiber, on a transitional basis (the "Transition Services Agreement"). The services to be provided will include financial reporting, tax, legal, human resources, information technology, insurance and other general and administrative functions. All services are to be provided at cost, except if otherwise agreed to. Management estimates as of the date of this prospectus that the average fees payable by us to Bit Digital will be approximately $155,000 per month, exclusive of shared based compensation expense.

The Transition Services Agreement will terminate on the expiration of the term of the last service provided under it, which will generally be up to 24 months following the Reorganization.

Each party will indemnify each other for any material breach of the Transition Services Agreement or any gross negligence, willful misconduct, fraud, or bad faith in the provision of their respective services. The Transition Services Agreement also provides that neither company shall be liable to the other for any indirect, exemplary, incidental, consequential, remote, speculative, punitive or similar damages. The summary of the Transition Services Agreement is qualified in the entirety by reference to the full text of the agreement, which is incorporated by reference into this prospectus.

**Procedures for Approval of Related Person Transactions**

WhiteFiber's board of directors is expected to adopt a written policy on related person transactions in connection with the completion of this offering. The policy will apply to any transaction subject to the requirements of Item 404(a) of Regulation S-K under the Exchange Act in which WhiteFiber or a WhiteFiber subsidiary is a participant and a related person has a direct or indirect material interest. The policy will cover transactions involving WhiteFiber or a WhiteFiber subsidiary in excess of $120,000 in any year in which any director, director nominee, executive officer or greater than five percent beneficial owner of WhiteFiber, or any of their respective immediate family members, has or had a direct or indirect interest, other than solely as a director or less than 10 percent owner, of an entity involved in the transaction. This policy will be posted to the corporate governance section of WhiteFiber's website, *www.WhiteFiber.com*.

Under this policy, the general counsel must advise the Audit Committee of any related person transaction of which he or she becomes aware. The Audit Committee must then either approve or reject the transaction in accordance with the terms of the policy. In the course of making this determination, the Audit Committee will consider all relevant information available to it, including, as appropriate, take into consideration the size of the transaction and the amount payable to the related person; the nature of the interest of the related person in the transaction; whether the transaction may involve a conflict of interest; the purpose, and the potential benefits to WhiteFiber, of the transaction; whether the transaction was undertaken in the ordinary course of business; and whether the transaction involved the provision of goods or services to WhiteFiber that are available from unaffiliated third parties and, if so, whether the transaction is on terms and made under circumstances that are at least as favorable to WhiteFiber as would be available in comparable transactions with or involving unaffiliated third parties.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

Before this offering, all of the outstanding Ordinary Shares were beneficially owned by Bit Digital. Following the Contribution and this offering, WhiteFiber expects to have outstanding an aggregate of Ordinary Shares. No directors, director nominees or executive officers currently own any of our Ordinary Shares and except as set forth below, we do not expect them to own any of our Ordinary Shares immediately following this offering or have the right to acquire any of our Ordinary Shares within 60 days upon the completion of this offering other than shares which may be awarded under the Company's 2025 Omnibus Equity Incentive Plan prior to effectiveness of this registration statement. Our directors, director nominees, executive officers and employees will be awarded WhiteFiber equity awards in connection with this offering, including the issuance of 40,000 restricted shares to Ms. Ichi Shih, Chair of the Company's Audit Committee, upon the commencement of trading of our Ordinary Shares on the Nasdaq Capital Market. See "*Executive and Director Compensation.*"

The following table sets forth the beneficial ownership of our Ordinary Shares (i) as of an (ii) immediately following this offering, as adjusted to reflect the sale of shares of our Ordinary Shares by us, in each case, by the following individuals or groups.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Ordinary Shares Beneficially Owned Prior to this Offering** | **Ordinary Shares Beneficially Owned Prior to this Offering** | **Ordinary Shares Beneficially Owned Prior to this Offering (assuming the underwriters do not exercise their option to purchase additional shares)** | **Ordinary Shares Beneficially Owned Prior to this Offering (assuming the underwriters do not exercise their option to purchase additional shares)** | **Ordinary Shares Beneficially Owned Prior to this Offering (assuming the underwriters do exercise their option to purchase additional shares)** | **Ordinary Shares Beneficially Owned Prior to this Offering (assuming the underwriters do exercise their option to purchase additional shares)** |
| <br>**Name of Beneficial Owner** | **Shares** | **Percentage** | **Shares** | **Percentage** | **Shares** | **Percentage** |
| ***Directors and Executive Officers Prior to This Offering*** | | | | | | |
| Sam Tabar |  | <sub>—%</sub> |  |  |  |  |
| Erke Huang |  | <sub>—%</sub> |  |  |  |  |
| Ichi Shih |  | <sub>—%</sub> |  |  |  |  |
| Jiashu ("Bill") Xiong |  | <sub>—%</sub> |  |  |  |  |
| All Current Executive Officers and Directors as a Group (four individuals) |  | <sub>—%</sub> |  |  |  |  |
| ***Directors and Executive Officers After to This Offering*** |  |  |  |  |  |  |
| Sam Tabar |  |  |  |  |  |  |
| Erke Huang |  |  |  |  |  |  |
| Thomas Sanfilippo |  |  |  |  |  |  |
| Billy Krassakopoulos |  |  |  |  |  |  |
| Ichi Shih |  |  |  |  |  |  |
| Jiashu ("Bill") Xiong |  |  |  |  |  |  |
| David Andre |  |  |  |  |  |  |
| Pruitt Hall |  |  |  |  |  |  |
| Directors and Executive Officers as a Group of Eight Individuals |  |  |  |  |  |  |
| ***5% or Greater Shareholder*** |  |  |  |  |  |  |
| Bit Digital, Inc.(1) |  | 100% |  |  |  |  |

---

\* Represents beneficial ownership or outstanding total voting power, as applicable of less than 1 percent.

(1) The address of Bit Digital, Inc. is 31 Hudson Yards, Floor 11,
Suite 30, New York, New York 10001.

**DESCRIPTION OF WHITEFIBER'S SHARE CAPITAL**

 

*WhiteFiber's A&R M&A will be amended and restated prior to the completion of this offering. The following is a summary of the material terms of WhiteFiber share capital that will be contained in the A&R M&A. The summaries and descriptions below do not purport to be complete statements of the relevant provisions of the A&R M&A to be in effect at the time of the offering. The A&R M&A, in a form expected to be in effect at the time of this offering, have been included as an exhibit to WhiteFiber's registration statement on Form S-1, of which prospectus forms a part. The summaries and descriptions below do not purport to be complete statements of the Cayman Islands law.*

 

**Memorandum and Articles of Association**

WhiteFiber is a Cayman Islands exempted company with limited liability and our affairs are governed by our A&R M&A, the Companies Act, and the common law of the Cayman Islands.

Our authorized share capital is 350,000,000 shares consisting of 340,000,000 Ordinary Shares, par value $0.01 per share and 10,000,000 preference shares, par value $0.01 per share. Immediately following this offering, WhiteFiber expects to have Ordinary Shares issued and outstanding upon the completion of this offering, based on Ordinary Shares issued and outstanding on , 2025, held by Bit Digital and no preference shares issued and outstanding. In the event the underwriter's over-allotment option is not exercised, and/or if Bit Digital holds in excess of Ordinary Shares following the completion of this offering, it has agreed to surrender such number of shares in order to retain an 80% interest in WhiteFiber. In this section, unless the context otherwise suggests, the Ordinary Shares and preference shares are collectively referred to as the "Shares".

**Ordinary Shares**

*Dividends.* Subject to the provisions of the Companies Act and any rights attaching to any class or classes of shares under and in accordance with the A&R M&A:

● the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose; and

● our shareholders may, by ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors.

Subject to the requirements of the Companies Act regarding the application of a company's share premium account and with the sanction of an ordinary resolution, dividends may also be declared and paid out of any share premium account. The directors when paying dividends to shareholders may make such payment either in cash or in specie.

Unless provided by the rights attached to a share, no dividend shall bear interest.

***Voting Rights.*** The holders of our Ordinary Shares are entitled to one vote per share, including for the appointment of directors. Voting at any meeting of shareholders is by show of hands unless a poll is demanded. On a show of hands, every holder of Ordinary Shares present in person or by proxy shall have one vote. On a poll, every holder of Ordinary Shares entitled to vote (in person or by proxy) shall have one vote for each share for which he is the holder. A poll may be demanded by the chairman, at least two shareholders having the right to vote on the resolutions, or one or more shareholders present in person or by proxy holding not less than ten percent of the paid-up capital of the Company entitled to vote.

Before any series of preference shares are issued, the directors shall fix, by resolution or resolutions, whether the preference shares of such series shall have voting rights, in addition to any voting rights provided by the Companies Act, and, if so, the terms of such voting rights, which may be general or limited.

A quorum required for a meeting of shareholders consists of one or more shareholders who hold at least one-third of the votes that may be cast by holders of issued and outstanding shares entitled to vote at the meeting present in person or by proxy. While not required by our A&R M&A, a proxy form will accompany any notice of general meeting convened by the directors to facilitate the ability of shareholders to vote by proxy.

Any ordinary resolution to be made by the shareholders requires the affirmative vote of a simple majority of the votes cast by the shareholders (being entitled to do so) vote in person or by proxy in a general meeting, while a special resolution requires the affirmative vote of no less than two-thirds of the votes cast by shareholders (being entitled to do so) vote in person or by proxy. Under Cayman Islands law, some matters, such as amending the A&R M&A, changing the name or resolving to be registered by way of continuation in a jurisdiction outside the Cayman Islands, require approval of shareholders by a special resolution.

There are no limitations on non-residents or foreign shareholders in the A&R M&A to hold or exercise voting rights on the Ordinary Shares imposed by foreign law or by the A&R M&A or other constituent document of our company. However, no person will be entitled to vote at any general meeting or at any separate meeting of the holders of the Ordinary Shares unless the person is registered as of the record date for such meeting and unless all calls or other sums presently payable by the person in respect of Ordinary Shares in the Company have been paid.

***Winding up; Liquidation.*** If the Company is wound up the shareholders may, subject to our A&R M&A and any other sanction required by the Companies Act, pass a special resolution allowing the liquidator to do either or both of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in accordance with any rights attaching to the Shares, to divide in specie among the shareholders the whole or any part of the assets of the Company and, for that purpose, to value any assets and to determine how the division shall be carried out as between the shareholders or different classes of shareholder; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to vest the whole or any part of the assets in trustees for the benefit of shareholders and those liable to contribute to the winding up.

Before any series of preference shares are issued, the directors shall fix, by resolution or resolutions, the amount or amounts payable upon preference shares of such series upon, and the rights of the holders of such series in, a voluntary or involuntary liquidation, dissolution or winding up, or upon any distribution of the assets, of the Company.

***Calls on Shares and Forfeiture of Shares.*** Subject to the terms of allotment, the directors may make calls on the shareholders in respect of any monies unpaid on their shares including any premium and each shareholder shall (subject to receiving at least 14 clear days' notice specifying when and where payment is to be made), pay to us the amount called on his shares as required by the notice. Shareholders registered as the joint holders of a share shall be jointly and severally liable to pay all calls in respect of the share. If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due and payable until it is paid (a) at the rate fixed by the terms of allotment of the share or in the notice of the call; or (b) if no rate is fixed, at the rate of ten percent per annum. The directors may waive payment of the interest wholly or in part.

***Redemption, Repurchase and Surrender of shares.*** Subject to the provisions of the Companies Act and any rights for the time being conferred on the shareholders holding a particular class of shares, we may by action of our directors:

● issue shares that are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on the terms and in the manner our directors determine before the issue of those shares;

● with the consent by special resolution of the shareholders holding shares of a particular class, vary the rights attaching to that class of shares so as to provide that those shares are to be redeemed or are liable to be redeemed at our option on the terms and in the manner which the directors determine at the time of such variation; and

● purchase all or any of our own shares of any class including any redeemable shares on the terms and in the manner which the directors determine at the time of such purchase.

We may make a payment in respect of the redemption or purchase of our own shares in any manner authorized by the Companies Act, including out of any combination of capital, our profits and the proceeds of a fresh issue of shares.

When making a payment in respect of the redemption or purchase of shares, the directors may make the payment in cash or in specie (or partly in one and partly in the other) if so authorized by the terms of the allotment of those shares or by the terms applying to those shares in accordance with the A&R M&A, or otherwise by agreement with the shareholder holding those shares.

Before any series of preference shares are issued, the directors shall fix, by resolution or resolutions, whether the preference shares or such series shall be subject to redemption by the Company, and, if so, the times, prices and other conditions of such redemption.

***No Preemptive Rights.*** Holders of Ordinary Shares do not have preemptive or preferential right to purchase any securities of our company.

***Variation of Rights Attaching to Shares.*** Whenever the capital of our Company is divided into different classes of shares then, the rights attached to any such class (unless otherwise provided by the terms of issue of the shares of that class) may only be varied either (a) with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or (b) with the sanction of a special resolution passed at a separate general meeting of the holders of shares of that class.

Unless the terms on which a class of shares was issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by: (a) the creation or issue of further shares ranking pari passu with the existing shares of that class; or (b) the issuance of any preference shares which, for the avoidance of doubt, may have such rights as the directors may determine in accordance with the A&R M&A.

***Anti-Takeover Provisions.*** Some provisions of our A&R M&A may discourage, delay, or prevent a change of control of our company or management that shareholders may consider favorable, including, among other things (a) provisions that give the directors discretion (subject to the consent of Bit Digital for such period(s) of time that Bit Digital is a shareholder of the Company) to issue preference shares with the rights described in this Prospectus and the A&R M&A, without further vote or action by our shareholders; and (b) provisions that restrict the ability of our shareholders to call meetings and to propose special matters for consideration at shareholder meetings. However, our directors may only exercise the rights and powers granted to them under our A&R M&A for a proper purpose and for what they believe in good faith to be in the best interests of our company.

***Exempted Company.*** We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except that an exempted company:

● does not have to file an annual return of its shareholders with the Registrar of Companies;

● is not required to open its register of members for inspection;

● does not have to hold an annual general meeting;

● may issue shares with no par value;

● may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 30 years in the first instance);

● may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

● may register as a limited duration company; and

● may register as a segregated portfolio company.

"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on the shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

**Listing**

We have applied to have our Ordinary Shares listed on the Nasdaq Capital Market under the symbol "WYFI."

**Transfer Agent and Registrar**

The transfer agent and registrar for our Ordinary Shares is TranShare Securities Transfer & Registrar, whose address is Bayside Center 1, 17755 North U.S. Highway 19, Suite 140, Clearwater, Florida 33764.

**Preference shares**

The Company is authorized to issue up to 10,000,000 preference shares. While we currently have no preference shares issued and outstanding, our directors have the discretion, with the consent of Bit Digital, to issue preference shares without further shareholder approval. We will only require the consent of Bit Digital to issue preference shares for such period(s) of time that Bit Digital is a shareholder of the Company.

The terms of our preference shares are the same as our Ordinary Shares, except that before we issue any preference shares, our directors shall fix, by resolution or resolutions, the following provisions of such series of preference shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the designation of such series and the number of preference shares to constitute such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the shares of such series shall have voting rights, in addition to any voting rights provided by the Act, and, if so, the terms of such voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if so, from what dates, the conditions and dates upon which such dividends shall be payable, the preference or relation which such dividends shall bear to the dividends payable on any shares of any other class of shares or any other series of preference shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether the preference shares or such series shall be subject to redemption by the Company, and, if so, the times, prices and other conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the amount or amounts payable upon preference shares of such series upon, and the rights of the holders of such series in, a voluntary or involuntary liquidation, dissolution or winding up, or upon any distribution of the assets, of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether the preference shares of such series shall be subject to the operation of a retirement or sinking fund and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied to the purchase or redemption of the preference shares of such series for retirement or other corporate purposes and the terms and provisions relative to the operation of the retirement or sinking fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the preference shares of such series shall be convertible into, or exchangeable for, shares of any other class of shares or any other series of preference shares or any other securities and, if so, the price or prices or the rate or rates of conversion or exchange and the method, if any, of adjusting the same, and any other terms and conditions of conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the limitations and restrictions, if any, to be effective while any preference shares or such series are outstanding upon the payment of dividends or the making of other distributions on, and upon the purchase, redemption or other acquisition by the Company of, the existing shares or shares of any other class of shares or any other series of preference shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions or restrictions, if any, upon the creation of indebtedness of the Company or upon the issue of any additional shares, including additional shares of such series or of any other class of shares or any other series of preference shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other powers, preferences and relative, participating, optional and other special rights, and any qualifications, limitations and restrictions of any other class of shares or any other series of preference shares.

**Provisions in Corporate Law**

The Companies Act is derived, to a large extent, from the older Companies Acts of England and Wales but does not follow recent United Kingdom statutory enactments and, accordingly, there are significant differences between the Companies Act and the current Companies Act of the United Kingdom. In addition, the Companies Act differs from laws applicable to U.S. corporations and their shareholders. Set forth below is a summary of the significant provisions of the Companies Act applicable to us.

***Mergers and Similar Arrangements***. The Companies Act, subject to the A&R M&A of the Company, permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies, provided that the laws of the foreign jurisdiction permit such merger or consolidation. For these purposes, (a) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company and (b) a "consolidation" means the combination of two or more constituent companies into a new combined company and the vesting of the undertaking, property and liabilities of such companies to the combined company.

In order to effect such a merger or consolidation of two Cayman Islands companies, among other things, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (i) a special resolution of the shareholders of each constituent company and (ii) such other authorization, if any, as may be specified in such constituent company's A&R M&A. The consent of each holder of a fixed or floating security interest of a constituent company in a proposed merger or consolidation must be obtained but if such secured creditor does not grant that person's consent then the Courts of the Cayman Islands may upon application of the constituent company that has issued the security waive the requirement for such consent upon such terms as to security to be issued by the combined or surviving company or otherwise as the Court considers reasonable. The written plan of merger or consolidation must be filed with the Registrar of Companies of the Cayman Islands together with, among other things, a director's declaration regarding matters prescribed by the Companies Act, an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders if a copy of the plan of merger is given to every shareholder of each subsidiary company to be merged unless that shareholder agrees otherwise. For this purpose, a subsidiary is a company of which at least 90% of the issued shares entitled to vote are owned by the parent company.

Except in certain limited circumstances, a dissenting shareholder of a Cayman Islands constituent company is entitled to payment of the fair value of his or her shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting from a merger or consolidation, provided the dissenting shareholder complies strictly with the procedures set out in the Companies Act. The exercise of such dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, except for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.

In addition, there are statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement, provided that the arrangement is approved by (a) 75% in value of the shareholders or class of shareholders, as the case may be, or (b) a majority in number representing 75% in value of the creditors or each class of creditors, as the case may be, with whom the arrangement is to be made, that are, in each case, present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands (the "Grand Court"). While a dissenting shareholder or creditor has the right to express to the court the view that the transaction ought not to be approved, the Grand Court can be expected to approve the arrangement if it determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the statutory provisions as to the required majority vote have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act.

The Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of minority shareholders. When an offer is made and accepted by holders of 90% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four month period, require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. A dissenting shareholder may object by making an application to the Grand Court within one month from the date of notice being given that their shares are being compulsorily acquired. If an arrangement and reconstruction is thus approved, or if an offer is made and accepted, in accordance with the foregoing statutory procedures, a dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

***Shareholders' Suits.***

 ****

In principle, we will normally be the proper plaintiff to sue for a wrong done to us as a company, and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English law authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Cayman Islands courts can be expected to follow and apply the common law principles (namely the rule in Foss v. Harbottle and the exceptions thereto, which limits the circumstances in which a shareholder may bring a derivative action on behalf of the company or a personal action to claim loss which is reflective of loss suffered by the company) so that a non-parent company may be permitted to commence a class action against, or derivative actions in the name of, the company to challenge:

● an act which is illegal or ultra vires with respect to the company and is therefore incapable of ratification by the shareholders;

● the act complained of, although not ultra vires, requires authorization by a qualified (or special) majority (that is, more than a simple majority) which has not been obtained;

● an act purporting to abridge or abolish the individual rights of a member; and

● an act which constitutes a "fraud on the minority" where the wrongdoers are themselves in control of the company.

In the case of a company (not being a bank) having its share capital divided into shares, the Grand Court may, on the application of members holding not less than one fifth of the shares of the company in issue, appoint an inspector to examine the affairs of the company and to report thereon in such manner as the Grand Court shall direct.

***Indemnification of Directors and Executive Officers and Limitation of Liability***. Cayman Islands law does not limit the extent to which a company's A&R M&A may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our A&R M&A permit indemnification of officers and directors for losses, damages, costs and expenses incurred in their capacities as such unless such losses or damages arise from the dishonesty, willful default or fraud of such directors or officers. This standard of conduct is generally the same as permitted under the Delaware General Corporation Law for a Delaware corporation. In addition, we have entered into indemnification agreements with our directors and executive officers that provide such persons with additional indemnification beyond that provided in our current A&R M&A.

**Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.**

***Directors' Fiduciary Duties****.* Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director act in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or parent company and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation and its shareholders. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, the director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

As a matter of Cayman Islands law, a director owes three types of duties to the company: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Companies Act imposes a number of statutory duties on a director. A Cayman Islands director's fiduciary duties are not codified, however the courts of the Cayman Islands have held that a director owes the following fiduciary duties (a) a duty to act in what the director bona fide considers to be in the best interests of the company as a whole, (b) a duty to exercise their powers for the purposes they were conferred and not for a collateral purpose, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill, care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher standard than a director without those skills. In fulfilling their duty of care to us, our directors must ensure compliance with our A&R M&A, as amended and restated from time to time. We have the right to seek damages where certain duties owed by any of our directors are breached.

***Shareholder Action by Written Consent***. Under the Delaware General Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation. Cayman Islands law and our current A&R M&A provide that shareholders may approve corporate matters by way of a unanimous written resolution signed by or on behalf of each shareholder who would have been entitled to vote on such matter at a general meeting without a meeting being held.

***Shareholder Proposals***. Under the Delaware General Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

Cayman Islands law does not provide shareholders any right to put proposals before a meeting or requisition a general meeting. However, these rights may be provided in the A&R M&A. Our current A&R M&A allow our shareholders holding not less than ten (10%) percent of all voting power of our share capital in issue to requisition a shareholder's meeting. Other than this right to requisition a shareholders' meeting, our current A&R M&A do not provide our shareholders other right to put proposal before a meeting. As a Cayman Islands exempted company, we are not obliged by law to call shareholders' annual general meetings.

***Cumulative Voting.*** Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. There are no prohibitions in relation to cumulative voting under the laws of the Cayman Islands, but our current A&R M&A do not provide for cumulative voting. As a result, our shareholders are not afforded any less protections or rights on this issue than shareholders of a Delaware corporation.

***Removal of Directors.*** Under the Delaware General Corporation Law, a director of a corporation may be removed with or without cause with the approval of a majority of the outstanding shares entitled to vote.

Pursuant to our A&R M&A, directors may be removed, with or without cause, by an ordinary resolution of our shareholders. Our A&R M&A also prescribe that a director's office shall be terminated if: (a) he is prohibited by the laws of the Cayman Islands from acting as a director, (b) he is made bankrupt or makes an arrangement or composition with his creditors generally, (c) he resigns his office by notice to us, (d) he only held office as a director for a fixed term and such term expires, (e) dies or in the opinion of a registered medical practitioner by whom he is being treated he becomes physically or mentally incapable of acting as a director, (f) he is given notice by the majority of the other directors (not being less than two in number) to vacate office (without prejudice to any claim for damages for breach of any agreement relating to the provision of the services of such director), (g) he is made subject to any law relating to mental health or incompetence, whether by court order or otherwise, or (h) without the consent of the other directors, he is absent from meetings of directors for a continuous period of six (6) months.

***Transactions with Interested Shareholders.*** The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target's outstanding voting share within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two- tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

Cayman Islands law has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although Cayman Islands law does not regulate transactions between a company and its significant shareholders, it does provide that such transactions must be entered into bona fide in the best interests of the company and not with the effect of constituting a fraud on the minority shareholders.

***Dissolution; Winding up.*** Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board. Under Cayman Islands law, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its members or, if the company is unable to pay its debts as they come due, by an ordinary resolution of its members. The court has authority to order winding up of a company in a number of specified circumstances, including where it is, in the opinion of the court, just and equitable to do so. Under the Companies Act and our current A&R M&A, our company may be dissolved, liquidated or wound up by a special resolution of our shareholders.

***Variation of Rights of Shares.*** Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. Under Cayman Islands law and our current A&R M&A, if our capital is divided into different classes of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class) may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person or by proxy at a separate general meeting of the holders of shares of that class. Unless the terms on which a class of shares was issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by: (a) the creation or issue of further shares ranking pari passu with the existing shares of that class; or (b) the issuance of any preference shares which, for the avoidance of doubt, may have such rights as the directors may determine in accordance with the A&R M&A.

***Amendment of Governing Documents.*** Under the Delaware General Corporation Law, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. As permitted by Cayman Islands law, our current A&R M&A may only be amended with a special resolution of our shareholders.

***Rights of Non-resident or Foreign Shareholders****.* There are no limitations imposed by our A&R M&A on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares. In addition, there are no provisions in our current A&R M&A governing the ownership threshold above which shareholder ownership must be disclosed.

**Authorized but Unissued Shares**

WhiteFiber's authorized but unissued Ordinary Shares and preference shares will be available for future issuance without your approval (subject to WhiteFiber obtaining the consent of Bit Digital to issue preference shares for such periods of time that Bit Digital is a shareholder of the Company). WhiteFiber may use additional shares for a variety of purposes, including future public offerings to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued Ordinary Shares and preference shares could render more difficult or discourage an attempt to obtain control of WhiteFiber by means of a proxy contest, tender offer, merger or otherwise. See "*Risk Factors – Your Percentage of Ownership in WhiteFiber May be Diluted in the Future*."

**SHARES ELIGIBLE FOR FUTURE SALE**

Immediately prior to the consummation of this offering, all our outstanding Ordinary Shares are held by Bit Digital and are deemed "restricted securities" as that term is defined in Rule 144 and may not be resold except pursuant to an effective registration statement or an applicable exemption from registration, including Rule 144. As of the date of this prospectus, all of such shares are currently eligible for sale, subject to the limitations of Rule 144. Notwithstanding that fact, Bit Digital, WhiteFiber and each of our directors, director nominees and executive officers has entered into a lock-up agreement with the representative of the underwriters as described under "—Lock-Up Agreements " below, to not sell any Ordinary Shares for a 180 day period from the date of this prospectus.

**Sale of Restricted Shares**

Subject to any contractual restrictions, including under the lock-up agreements described below under "—Lock-Up Agreements," all of the Ordinary Shares to be sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except that any shares purchased by or owned by our "affiliates," as that term is defined in Rule 144 under the Securities Act, may generally only be sold publicly in compliance with the limitations of Rule 144 described below under "—Rule 144." As defined in Rule 144, an affiliate of an issuer is a person that directly or indirectly, through one or more intermediaries, controls, or is controlled by or is under common control with, such issuer.

Upon completion of this offering, Bit Digital, Inc. will hold approximately 80% of our issued and outstanding Ordinary Shares and will be able to exercise approximately 80% of the total voting power of our issued and outstanding Ordinary Shares immediately after the consummation of this offering, irrespective of whether the underwriters exercise their over-allotment option.These shares will be "restricted securities" as that term is defined in Rule 144. Subject to any contractual restrictions, including under the lock-up agreements described below under "—Lock-Up Agreements," Bit Digital will be entitled to sell these shares in the public market only if the sale of such shares is registered with the SEC or if the sale of such shares qualifies for an exemption from registration under Rule 144 or any other applicable exemption under the Securities Act.

**Rule 144**

In general, under Rule 144, a person who is not our affiliate and has not been our affiliate at any time during the preceding three months will be entitled to sell any shares of our share capital that such person has held for at least six months, including the holding period of any prior owner other than one of our affiliates, without regard to volume limitations. Sales of our share capital by any such person would be subject to the availability of current public information about us if the shares to be sold were held by such person for less than one year.

In addition, under Rule 144, a person may sell shares of our share capital acquired from us immediately upon the completion of this offering, without regard to volume limitations or the availability of public information about us, if:

● the person is not our affiliate and has not been our affiliate at any time during the preceding three months;

● and the person has beneficially owned the shares to be sold for at least six months, including the holding period of any prior owner other than one of our affiliates.

Our affiliates who have beneficially owned shares of our share capital for at least six months, including the holding period of any prior owner other than another of our affiliates, would be entitled to sell within any three-month period those shares and any other shares they have acquired that are not restricted securities, provided that the aggregate number of shares sold does not exceed the greater of:

● 1% of the number of shares of our authorized share capital then outstanding, which will equal approximately Ordinary Shares as of the date of this prospectus; or

● the average weekly trading volume in our Ordinary Shares if and when they are listed on a National Securities Exchange 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 are generally subject to the availability of current public information about us, as well as certain "manner of sale" and notice requirements.

**Registration Statements on Form S-8**

In connection with this offering, we intend to file a registration statement on Form S-8 under the Securities Act to register Ordinary Shares that we expect to reserve for issuance under our proposed equity incentive plan. The registration statement will become effective automatically upon filing with the SEC, and Ordinary Shares covered by the registration statement will be eligible for resale in the public market immediately after the effective date of the registration statement, subject to the lock-up agreements described below under "—Lock-Up Agreements."

**Lock-up Agreements**

Bit Digital, we and each of our directors, director nominees and executive officers have agreed, subject to certain limited exceptions, not to offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our Ordinary Shares or any securities convertible into or exchangeable or exercisable for Ordinary Shares, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of the Ordinary Shares for a period of 180 days after the date of this prospectus, without the prior written consent of B. Riley Securities, Inc., as a representative of the underwriters.

The representative may, in its sole discretion and at any time or from time to time, release all or any portion of the Ordinary Shares subject to the lock-up agreement. Any determination to release any Ordinary Shares would be based upon a number of factors at the time of determination, which may include the market price of the Ordinary Shares, the liquidity of the trading market of the Ordinary Shares, general market conditions, the number of Ordinary Shares and the timing, purposes and terms of the proposed sale or other transfer. The representative does not have any present intention, agreement or understanding, implicit or explicit, to release any of the Ordinary Shares or other securities subject to the lock-up agreements prior to the expiration of the lock-up period described above.

Upon the expiration of the lock-up period, substantially all of the shares subject to such lock-up restrictions will become eligible for sale, subject to the limitations discussed above.

**Rule 10b5-1 Trading Plans**

Following the closing of this offering, certain of our officers, directors and significant shareholders may adopt written plans, known as Rule 10b5-1 trading plans, in which they will contract with a broker to buy or sell Ordinary Shares on a periodic basis to diversify their assets and investments. Under these 10b5-1 trading plans, a broker may execute trades pursuant to parameters established by the officer, director or shareholder when entering into the plan, without further direction from such officer, director or shareholder. Such sales would not commence until the expiration of the applicable lock-up agreements entered into by such officer, director or shareholder in connection with this offering.

**CERTAIN MATERIAL CAYMAN ISLANDS TAX CONSIDERATIONS**

*The following discussion of material Cayman Islands and United States federal income tax consequences of an investment in our Ordinary Shares is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in our Ordinary Shares, such as the tax consequences under state, local and other tax laws. To the extent that the discussion relates to matters of Cayman Islands tax law, it represents the opinion of Ogier (Cayman) LLP, our Cayman Islands counsel.*

 

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains, or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the Government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. No stamp duty is payable in the Cayman Islands on the issue of shares by, or any transfers of shares of, Cayman Islands companies (except those which hold interests in land in the Cayman Islands). There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of our Ordinary Shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our Ordinary Shares, as the case may be, nor will gains derived from the disposal of our Ordinary Shares be subject to Cayman Islands income or corporation tax.

**CERTAIN MATERIAL UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS**

The following is a discussion of certain material United States federal income tax considerations relating to the acquisition, ownership, and disposition of our Ordinary Shares by a U.S. Holder, as defined below, that acquires our Ordinary Shares in this offering and holds our Ordinary Shares as "capital assets" (generally, property held for investment) under the United States Internal Revenue Code of 1986, as amended (the "Code"). This discussion is based upon existing United States federal income tax law in effect as of the date hereof, which is subject to differing interpretations or change, possibly with retroactive effect. No ruling has been sought from the Internal Revenue Service (the "IRS") with respect to any United States federal income tax consequences described below, and there can be no assurance that the IRS or a court will not take a contrary position.

The following summary does not address all aspects of U.S. federal income taxation, such as the alternative minimum income tax and the additional income tax on investment income. It also does not discuss aspects that may be important to particular investors in light of their individual circumstances or to persons in special tax situations such as certain financial institutions, insurance companies, regulated investment companies, real estate investment trusts, broker-dealers, traders in securities that elect mark-to-market treatment, S-corporations, partnerships and their partners, tax-exempt organizations (including private foundations), individual retirement accounts or Roth IRAs, investors who are not U.S. Holders, U.S. expatriates, investors that own (directly, indirectly, or constructively) 5% or more of our stock (by vote or value), investors that hold their Ordinary Shares as part of a straddle, hedge, conversion, constructive sale or other integrated transaction), investors that have a functional currency other than the U.S. dollar, and investors who hold our Ordinary Shares in connection with a trade or business outside the United States, all of whom may be subject to tax rules that differ significantly from those summarized below. In addition, this discussion does not address any tax laws other than the United States federal income tax laws, and does not cover any state or local tax, estate or gift tax or non-United States tax considerations.

**PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS REGARDING THE APPLICATION OF U.S. FEDERAL TAXATION TO THEIR PARTICULAR CIRCUMSTANCES, AND THE STATE, LOCAL, NON-U.S., OR OTHER TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR ORDINARY SHARES.**

***General***

For purposes of this discussion, a "U.S. Holder" is a beneficial owner of our Ordinary Shares that is, for United States federal income tax purposes, (i) an individual who is a citizen or resident of the United States, (ii) a corporation (or other entity treated as a corporation for United States federal income tax purposes) created in, or organized under the laws of, the United States or any state thereof or the District of Columbia, (iii) an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source, or (iv) a trust (A) the administration of which is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise elected to be treated as a United States person under the Code.

If a partnership (or other entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of our Ordinary Shares, the tax treatment of a partner in the partnership may vary depending on the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding our Ordinary Shares are urged to consult their tax advisors regarding an investment in our Ordinary Shares.

The discussion set forth below is addressed only to U.S. Holders that purchase Ordinary Shares in this offering. Prospective purchasers are urged to consult their own tax advisors about the application of the U.S. federal income tax rules to their particular circumstances as well as the state, local, foreign and other tax consequences to them of the purchase, ownership and disposition of our Ordinary Shares.

***Taxation of Dividends and Other Distributions on our Ordinary Shares***

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Subject to the passive foreign investment company rules discussed below, the gross amount of distributions made by us to you with respect to the Ordinary Shares (including the amount of any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date actually or constructively received by you, but only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). With respect to corporate U.S. Holders, the dividends will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from other U.S. corporations.

With respect to non-corporate U.S. Holders, including individual U.S. Holders, dividends are currently taxed at the lower capital gains rate applicable to qualified dividend income, provided that (1) the Ordinary Shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a passive foreign investment company (as discussed below) for either our taxable year in which the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. Because there is no income tax treaty between the United States and the Cayman Islands, clause (1) above can be satisfied only if the Ordinary Shares are readily tradable on an established securities market in the United States. Under U.S. IRS authority, Ordinary Shares are considered for purpose of clause (1) above to be readily tradable on an established securities market in the United States if they are listed on Nasdaq. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our Ordinary Shares, in light of your own particular circumstances.

To the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described above.

***Taxation of Dispositions of Ordinary Shares***

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Subject to the passive foreign investment company rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of a share equal to the difference between the amount realized for the ordinary share on the sale, exchange or disposition and your tax basis in such ordinary share, in each case as determined in U.S. dollars. The character of the gain or loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the Ordinary Shares for more than one year, you may be eligible for reduced tax rates on any such capital gains. The deductibility of capital losses is subject to limitations. Gain or loss recognized by a U.S. Holder from the sale or other disposition of Ordinary Shares will generally be gain or loss from sources within the United States for U.S. foreign tax credit purposes.

***Passive Foreign Investment Company***

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A non-U.S. corporation is considered a PFIC for any taxable year if either:

● at least 75% of its gross income for such taxable year is passive income; or

● at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the "asset test").

Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock.

We do not expect to be classified as a PFIC for the 2025 taxable year. However, no assurance can be given as to whether we currently are not or will not become a PFIC, as this is a factual determination made annually that will depend, in part, upon the nature of our business, the composition of our income and assets, the value of our assets, and the price of our Ordinary Shares, each of which is subject to change. Furthermore, the composition of our income and assets may also be affected by how, and how quickly, we use our liquid assets and the cash raised in this offering. Under circumstances where our revenue from activities that produce passive income significantly increases relative to our revenue from activities that produce non-passive income, or where we determine not to deploy significant amounts of cash for active purposes, our risk of becoming classified as a PFIC may substantially increase. In addition, because there are uncertainties in the application of the relevant rules, it is possible that the Internal Revenue Service may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangible assets, each of which may result in us becoming a PFIC for the current or subsequent taxable years. If we were classified as a PFIC for any year during which a U.S. Holder held our Ordinary Shares, we generally would continue to be treated as a PFIC for all succeeding years during which such U.S. Holder held our Ordinary Shares even if we cease to be a PFIC in subsequent years, unless certain elections (described below) are made.

If we are a PFIC for your taxable year(s) during which you hold Ordinary Shares, you will be subject to special tax rules with respect to any "excess distribution" that you receive and any gain you realize from a sale or other disposition (including a pledge) of the Ordinary Shares, unless you make a "mark-to-market" election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

● the excess distribution or gain will be allocated ratably over your holding period for the Ordinary Shares;

● the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and

● the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year, and an interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

The tax liability for amounts allocated to years prior to the year of disposition or "excess distribution" cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you hold the Ordinary Shares as capital assets.

A U.S. Holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election for such stock to elect out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess, if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your adjusted basis in such Ordinary Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess, if any, of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable year. However, such ordinary loss is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in your income for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition of the Ordinary Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or loss amounts.

The mark-to-market election is available only for "marketable stock", which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar quarter ("regularly traded") on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations), including Nasdaq. If the Ordinary Shares are regularly traded on Nasdaq and if you are a holder of Ordinary Shares, the mark-to-market election would be available to you if we are or become a PFIC.

A mark-to-market election will not apply to Ordinary Shares for any taxable year during which we are not a PFIC, but will remain in effect with respect to any subsequent taxable year in which we become a PFIC. Such election will not apply to any non-U.S. subsidiaries that we may organize or acquire in the future. Accordingly, a U.S. Holder may continue to be subject to tax under the PFIC excess distribution regime with respect to any lower-tier PFICs that we organize or acquire in the future notwithstanding the U.S. Holder's mark-to-market election for the Ordinary Shares.

Alternatively, a U.S. Holder of stock in a PFIC may make a "qualified electing fund" election with respect to such PFIC to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable year such holder's pro rata share of the corporation's earnings and profits for the taxable year. However, the qualified electing fund election is available only if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as required under applicable U.S. Treasury regulations. We may not provide the information that would enable you to make a qualified electing fund election.

If you do not make a timely "mark-to-market" election or a qualified electing fund election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a "purging election" for the year we cease to be a PFIC. A "purging election" creates a deemed sale of such Ordinary Shares at their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal to the fair market value of the Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your Ordinary Shares for tax purposes.

If a U.S. Holder owns our Ordinary Shares during any taxable year that we are a PFIC, the U.S. Holder must generally file an annual Internal Revenue Service Form 8621 and provide such other information as may be required by the U.S. Treasury Department, whether or not a mark-to-market election is or has been made. If we are or become a PFIC, you should consult your tax advisor regarding any reporting requirements that may apply to you.

**You are urged to consult your tax advisors regarding the application of the PFIC rules to your investment in our Ordinary Shares and the availability of elections discussed above.**

***Information Reporting and Backup Withholding***

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Dividend payments with respect to our Ordinary Shares and proceeds from the sale, exchange or redemption of our Ordinary Shares may be subject to information reporting to the IRS and possible U.S. backup withholding at a current rate of 24%. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes any other required certification on IRS Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide such certification on IRS Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information. We do not intend to withhold taxes for individual shareholders. However, transactions effected through certain brokers or other intermediaries may be subject to withholding taxes (including backup withholding), and such brokers or intermediaries may be required by law to withhold such taxes.

Certain U.S. Holders are required to report information relating to our Ordinary Shares, subject to certain exceptions (including an exception for Ordinary Shares held in accounts maintained by certain financial institutions), by attaching a completed Internal IRS Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold Ordinary Shares. U.S. Holders should also be aware that if the Company were a PFIC, they would generally be required to file IRS Form 8261, Information Return by a Shareholder of a Passive Foreign Investments Company or Qualified Electing Fund, during any taxable year in which such U.S. Holder recognizes gain or receives an excess distribution or with respect to which the U.S. Holder has made certain elections.

U.S. Holders are urged to consult their own tax advisors regarding the application of the information reporting rules to the Ordinary Shares and their particular circumstances.

**EACH PROSPECTIVE INVESTOR IS URGED TO CONSULT ITS OWN TAX ADVISORS ABOUT THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES RESULTING FROM OWNING OR DISPOSING OUR ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF THE TAX LAWS OF ANY STATE, LOCAL OR NON-U.S. JURISDICTION, INCOME TAX TREATIES AND INCLUDING ESTATE, GIFT AND INHERITANCE LAWS.**

**UNDERWRITING**

We and the underwriters named below have entered into an underwriting agreement with respect to the Ordinary Shares being offered. Subject to certain terms and conditions of the underwriting agreement, each underwriter named below has severally agreed to purchase the number of Ordinary Shares indicated in the following table. B. Riley Securities, Inc. and Needham & Company, LLC, are acting as the representatives of the underwriters.

---

| | |
|:---|:---|
| **Underwriters** | **Number of<br> Shares** |
| B. Riley Securities, Inc. |  |
| Needham & Company, LLC |  |
| Total |  |

---

The underwriting agreement provides that the obligation of the underwriters to purchase all of the shares being offered to the public is subject to approval of legal matters by counsel and the satisfaction of other conditions. These conditions include, among others, the continued accuracy of representations and warranties made by us in the underwriting agreement, delivery of legal opinions and the absence of any material changes in our assets, business or prospects after the date of this prospectus. The underwriters are committed to take and pay for all of the Ordinary Shares being offered, if any are taken, other than the shares covered by the option described below unless and until this option is exercised.

The underwriters have an option to buy up to an additional Ordinary Shares from the Company. They may exercise that option for 30 days. If any shares are purchased pursuant to this option, the underwriters will severally purchase shares in approximately the same proportion as set forth in the table above.

Shares sold by the underwriters to the public will initially be offered at the public offering price set forth on the cover of this prospectus. Any shares sold by the underwriters to securities dealers may be sold at a discount of up to $ per share from the public offering price. After the initial offering of the shares, the representative may change the offering price and the other selling terms. The offering of the shares by the underwriters is subject to receipt and acceptance and subject to the underwriters' right to reject any order in whole or in part.

We have agreed to indemnify the several underwriters against certain liabilities, including liabilities under the Securities Act or to contribute to payments which the underwriters or other indemnified parties may be required to make in respect of any such liabilities.

**Discounts and Expenses**

The following table provides information regarding the amount of the underwriting discounts and commissions to be paid to the underwriters by us. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares to cover over-allotments, if any.

---

| | | |
|:---|:---|:---|
|  | **Total<br> Without <br> Over-Allotment** | **Total <br> With<br> Over- Allotment** |
| Underwriting discounts and commissions paid by us | $— | $|
| Proceeds, before expenses, to us | $— | $|

---

We estimate that the total expenses of the offering, excluding underwriting discounts and commissions, will be approximately $. We have also agreed to reimburse the underwriters for certain of their expenses in an amount up to $.

The representative has informed us that the underwriters do not intend to make sales to discretionary accounts.

**Lock-up Agreements**

Bit Digital, WhiteFiber and each of our directors, director nominees and executive officers have agreed, subject to certain limited exceptions, not to offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our Ordinary Shares or any securities convertible into or exchangeable or exercisable for Ordinary Shares, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of the Ordinary Shares for a period of 180 days after the date of this prospectus, without the prior written consent of B. Riley Securities, Inc., as a representative of the underwriters.

The representative may, in its sole discretion and at any time or from time to time, release all or any portion of the Ordinary Shares subject to the lock-up agreement. Any determination to release any Ordinary Shares would be based upon a number of factors at the time of determination, which may include the market price of the Ordinary Shares, the liquidity of the trading market of the Ordinary Shares, general market conditions, the number of Ordinary Shares and the timing, purposes and terms of the proposed sale or other transfer. The representative does not have any present intention, agreement or understanding, implicit or explicit, to release any of the Ordinary Shares or other securities subject to the lock-up agreements prior to the expiration of the lock-up period described above.

Prior to the offering, there has been no public market for our Ordinary Shares. The public offering price will be negotiated between the Company and the representative. Among the factors to be considered in determining the public offering price of the Ordinary Shares, in addition to prevailing market conditions, will be the Company's historical performance, estimates of the business potential and earnings prospects of the Company, an assessment of the Company's management and the consideration of the above factors in relation to market valuation of companies in related businesses.

**Nasdaq Capital Market**

We have applied to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "WYFI."

**Stabilization**

Until the distribution of the securities offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase our Ordinary Shares. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act that are intended to stabilize, maintain or otherwise affect the price of our Ordinary Shares. The underwriters may engage in over-allotment sales, syndicate covering transactions, stabilizing transactions and penalty bids in accordance with Regulation M:

● Stabilizing transactions permit bids or purchases for the purpose of pegging, fixing or maintaining the price of the Ordinary Shares, so long as stabilizing bids do not exceed a specified maximum.

● Over-allotment involves sales by the underwriters of securities in excess of the number of securities the underwriters are obligated to purchase, which creates a short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of Ordinary Shares over-allotted by the underwriters is not greater than the number of Ordinary Shares that they may purchase in the over-allotment option. In a naked short position, the number of Ordinary Shares involved is greater than the number of shares in the over-allotment option. The underwriters may close out any covered short position by either exercising their over-allotment option or purchasing Ordinary Shares in the open market.

● Covering transactions involve the purchase of securities in the open market after the distribution has been completed in order to cover short positions. In determining the source of securities to close out the short position, the underwriters will consider, among other things, the price of securities available for purchase in the open market as compared to the price at which they may purchase securities through the over-allotment option. If the underwriters sell more Ordinary Shares than could be covered by the over-allotment option, creating a naked short position, the position can only be closed out by buying securities in the open market. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the securities in the open market after pricing that could adversely affect investors who purchase in this offering.

● Penalty bids permit the underwriters to reclaim a selling concession from a selected dealer when the securities originally sold by the selected dealer are purchased in a stabilizing or syndicate covering transaction.

These stabilizing transactions, covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Ordinary Shares or preventing or retarding a decline in the market price of our Ordinary Shares. As a result, the price of our Ordinary Shares may be higher than the price that might otherwise exist in the open market.

Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the prices of our Ordinary Shares. These transactions may occur on any trading market. If any of these transactions are commenced, they may be discontinued without notice at any time.

**Electronic Prospectus**

This prospectus may be made available in electronic format on Internet sites or through other online services maintained by the underwriters or their affiliates. In those cases, prospective investors may view offering terms online and may be allowed to place orders online. Other than this prospectus in electronic format, any information on the underwriters' or their affiliates' websites and any information contained in any other website maintained by the underwriters or any affiliate of the underwriters is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters and should not be relied upon by investors.

**Notice to Prospective Investors in Canada (Alberta, British Columbia, Manitoba, Ontario and Québec Only)**

This document constitutes an "exempt offering document" as defined in and for the purposes of applicable Canadian securities laws. No prospectus has been filed with any securities commission or similar regulatory authority in Canada in connection with the offer and sale of Ordinary Shares described herein (the "Securities"). No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this document or on the merits of the Securities and any representation to the contrary is an offence.

**Canadian investors are advised that this document has been prepared in reliance on section 3A.3 of National Instrument 33-105 Underwriting Conflicts ("NI 33-105"). Pursuant to section 3A.3 of NI 33-105, this document is exempt from the requirement that the issuer and the underwriters in the offering provide Canadian investors with certain conflicts of interest disclosure pertaining to "connected issuer" and/or "related issuer" relationships as may otherwise be required pursuant to subsection 2.1(1) of NI 33-105.**

**Resale Restrictions**

The offer and sale of the Securities in Canada are being made on a private placement basis only and are exempt from the requirement that the issuer prepare and file a prospectus under applicable Canadian securities laws. Any resale of Securities acquired by a Canadian investor in this offering must be made in accordance with applicable Canadian securities laws, which may vary depending on the relevant jurisdiction, and which may require resales to be made in accordance with Canadian prospectus requirements, a statutory exemption from the prospectus requirements, in a transaction exempt from the prospectus requirements or otherwise under a discretionary exemption from the prospectus requirements granted by the applicable local Canadian securities regulatory authority. These resale restrictions may under certain circumstances apply to resales of the Securities outside of Canada.

**Representations of Purchasers**

Each Canadian investor who purchases the Securities will be deemed to have represented to the issuer, the underwriters and each dealer from whom a purchase confirmation is received, as applicable, that the investor (i) is purchasing as principal, or is deemed to be purchasing as principal in accordance with applicable Canadian securities laws, for investment only and not with a view to resale or redistribution; (ii) is an "accredited investor" as such term is defined in section 1.1 of National Instrument 45-106 *Prospectus Exemptions* or, in Ontario, as such term is defined in section 73.3(1) of the *Securities Act* (Ontario); and (iii) is a "permitted client" as such term is defined in section 1.1 of National Instrument 31- 103 *Registration Requirements, Exemptions and Ongoing Registrant Obligations*.

**Taxation and Eligibility for Investment**

Any discussion of taxation and related matters contained in this document does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a Canadian investor when deciding to purchase the Securities and, in particular, does not address any Canadian tax considerations. No representation or warranty is hereby made as to the tax consequences to a resident, or deemed resident, of Canada of an investment in the Securities or with respect to the eligibility of the Securities for investment by such investor under relevant Canadian federal and provincial legislation and regulations.

**Rights of Action for Damages or Rescission**

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

**Personal Information**

We and the representative hereby notify prospective Canadian purchasers that: (a) we may be required to provide personal information pertaining to the purchaser as required to be disclosed in Schedule I of Form 45-106F1 under NI 45-106 (including its name, address, telephone number, email address, if provided, and the number and type of securities purchased, the total purchase price paid for such securities, the date of the purchase and specific details of the prospectus exemption relied upon under applicable securities laws to complete such purchase) ("personal information"), which Form 45-106F1 may be required to be filed by us under NI 45-106, (b) such personal information may be delivered to the securities regulatory authority or regulator in accordance with NI 45-106, (c) such personal information is being collected indirectly by the securities regulatory authority or regulator under the authority granted to it under the securities legislation of the applicable legislation, (d) such personal information is collected for the purposes of the administration and enforcement of the securities legislation of the applicable jurisdiction, and (e) the purchaser may contact the applicable securities regulatory authority or regulator by way of the contact information provided in Schedule 2 to Form 45-106F1. Prospective Canadian purchasers that purchase securities in this offering will be deemed to have authorized the indirect collection of the personal information by each applicable securities regulatory authority or regulator, and to have acknowledged and consented to such information being disclosed to the Canadian securities regulatory authority or regulator, and to have acknowledged that such information may become available to the public in accordance with requirements of applicable Canadian laws.

**Language of Documents**

Upon receipt of this document, each Canadian investor hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the Securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English language only.

 

*Par la réception de ce document, chaque investisseur canadien confirme par les présentes qu'il a expressément exigé que tous les documents faisant foi ou se rapportant de quelque manière que ce soit à la vente des valeurs mobilières décrites aux présentes (incluant, pour plus de certitude, toute confirmation d'achat ou tout avis) soient rédigés en anglais seulement.*

 

**Notice to Prospective Investors in the European Economic Area and the United Kingdom**

In relation to the Member States of the European Economic Area and the United Kingdom (each, a "Relevant State"), no offer of our Ordinary Shares which are the subject of the offering contemplated by this prospectus to the public may be made in that Relevant State other than:

● to any legal entity that is a qualified investor as defined in the Prospectus Regulation;

● to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), subject to obtaining the prior consent of the relevant representative or representatives nominated by us for any such offer; or

● in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of our Ordinary Shares described in this prospectus shall result in a requirement for the publication of a prospectus, by us or any of the underwriters, pursuant to Article 3 of the Prospectus Regulation.

Each purchaser of Ordinary Shares described in this prospectus located within a Relevant State will be deemed to have represented, acknowledged and agreed that (1) it is a "qualified investor" within the meaning of the Prospectus Regulation; and (2) in the case of any Ordinary Shares acquired by it as a financial intermediary as that term is used in Article 5(1) of the Prospectus Regulation, each such financial intermediary will be deemed to have represented, acknowledged and agreed that the Ordinary Shares acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer to the public other than their offer or resale in a Relevant State to qualified investors, as that term is defined in the Prospectus Regulation, or in circumstances in which the prior consent of the underwriters has been given to the offer or resale; or where Ordinary Shares have been acquired by it on behalf of persons in any Relevant State other than qualified investors, the offer of those Ordinary Shares to it is not treated under the Prospectus Regulation as having been made to such persons. For purposes of this provision, the expression an "offer to the public" in relation to Ordinary Shares in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and the Ordinary Shares to be offered so as to enable an investor to decide to purchase or subscribe to the shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

We and the underwriters have not authorized and do not authorize the making of any offer of Ordinary Shares through any financial intermediary on their behalf, other than offers made by the underwriters with a view to the final placement of Ordinary Shares as contemplated in this prospectus.

Accordingly, no purchaser of Ordinary Shares, other than the underwriters, is authorized to make any further offer of the shares on behalf of us or the underwriters.

References to the Prospectus Regulation includes, in relation to the UK, the Prospectus Regulation as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

The above selling restriction is in addition to any other selling restrictions set out below.

**Additional Notice to Prospective Investors in the United Kingdom**

The communication of this prospectus and any other document or materials relating to the issue of our Ordinary Shares offered hereby is not being made, and such documents and/or materials have not been approved, by an authorized person for the purposes of section 21 of the United Kingdom's Financial Services and Markets Act 2000, as amended, or the FSMA. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom who have professional experience in matters relating to investments and who fall within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended, or the Financial Promotion Order), or who fall within Article 49(2)(a) to (d) of the Financial Promotion Order, or who are any other persons to whom it may otherwise lawfully be made under the Financial Promotion Order (all such persons together being referred to as "relevant persons"). In the United Kingdom, our Ordinary Shares offered hereby are only available to, and any investment or investment activity to which this prospectus relates will be engaged in only with, relevant persons. Any person in the United Kingdom that is not a relevant person should not act or rely on this prospectus or any of its contents.

Any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) in connection with the issue or sale of Ordinary Shares may only be communicated or caused to be communicated in circumstances in which Section 21(1) of the FSMA does not apply to us.

All applicable provisions of the FSMA must be complied with in respect to anything done by any person in relation to our Ordinary Shares in, from or otherwise involving the United Kingdom.

**Notice to Prospective Investors in Germany**

This prospectus has not been prepared in accordance with the requirements for a securities or sales prospectus under the German Securities Prospectus Act (Wertpapierprospektgesetz), the German Sales Prospectus Act (Verkaufsprospektgesetz), or the German Investment Act (Investmentgesetz). Neither the German Federal Financial Services Supervisory Authority (Bundesanstalt für finanzdienstleistungsaufsicht — BaFin) nor any other German authority has been notified of the intention to distribute our Ordinary Shares in Germany. Consequently, the Ordinary Shares may not be distributed in Germany by way of public offering, public advertisement or in any similar manner and this prospectus and any other document relating to this offering, as well as information or statements contained therein, may not be supplied to the public in Germany or used in connection with any offer for subscription of Ordinary Shares to the public in Germany or any other means of public marketing. The Ordinary Shares are being offered and sold in Germany only to qualified investors which are referred to in Section 3 paragraph 2 no. 1, in connection with Section 2 no. 6, of the German Securities Prospectus Act, Section 8f paragraph 2 no. 4 of the German Sales Prospectus Act, and in Section 2 paragraph 11 sentence 2 no. 1 of the German Investment Act. This prospectus is strictly for use of the person who has received it. It may not be forwarded to other persons or published in Germany.

**Notice to Prospective Investors in Switzerland**

This document is not intended to constitute an offer or solicitation to purchase or invest in the securities. The securities may not be publicly offered, directly or indirectly, in Switzerland within the meaning of the Swiss Financial Services Act ("FinSA") and no application has or will be made to admit the securities to trading on any trading venue (exchange or multilateral trading facility) in Switzerland. Neither this document nor any other offering or marketing material relating to the securities constitutes a prospectus pursuant to the FinSA, and neither this document nor any other offering or marketing material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, the Company or the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA ("FINMA"), and the offer of securities has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes ("CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of the securities.

**LEGAL MATTERS**

The validity of the securities offered in this prospectus is being passed upon for us by Ogier (Cayman) LLP from a Cayman Islands law perspective. Davidoff Hutcher& Citron LLP has also acted as counsel to us in connection with this offering. Certain legal matters in connection with this offering will be passed upon for the underwriters by O'Melveny & Myers LLP and Maples and Calder LLP.

**EXPERTS**

The combined financial statements of WhiteFiber, Inc. as of December 31, 2024 and 2023 and for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, and the financial statements of Enovum Data Centers Corp as of September 30, 2024 and for the nine-month period ended September 30, 2024 included in this prospectus and elsewhere in the registration statement have been audited by Audit Alliance LLP, an independent registered public accounting firm, as stated in their report. Such financial statements have been so included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

WhiteFiber has filed a registration statement on Form S-1 with the SEC with respect to the WhiteFiber Ordinary Shares being offered under this prospectus. This prospectus is a part of, and does not contain all of the information set forth in, the registration statement and the exhibits and schedules to the registration statement. For further information with respect to WhiteFiber and its Ordinary Shares, please refer to the registration statement, including its exhibits and schedules. Statements made in this prospectus relating to any contract or other document filed as an exhibit to the registration statement include the material terms of such contract or other document. However, such statements are not necessarily complete, and you should refer to the exhibits attached to the registration statement for copies of the actual contract or document. You may review a copy of the registration statement, including its exhibits and schedules, on the Internet website maintained by the SEC at www.sec.gov. Information contained on any website referenced in this prospectus is not incorporated by reference in this prospectus.

As a result of this offering, WhiteFiber will become subject to the information and reporting requirements of the Exchange Act and, in accordance with the Exchange Act, will file periodic reports, proxy statements and other information with the SEC. We expect to make these reports and other information filed with or furnished to the SEC available, free of charge, through our website at www.whitefiber.com as soon as reasonably practicable after the reports and other information are filed with or furnished to the SEC. Additionally, the SEC maintains an internet website that contains such reports and other information filed electronically with the SEC.

The information contained on, or that can be accessed through, the websites referenced in this prospectus is not part of, and is not incorporated into, this prospectus, and you should not rely on any such information in making an investment decision to purchase shares of our Ordinary Shares. We have included the website addresses referenced in this prospectus only as inactive textual references and do not intend them to be active links to such website addresses.

You should rely only on the information contained in this prospectus or to which this prospectus has referred you. WhiteFiber has not authorized any person to provide you with different information or to make any representation not contained in this prospectus.

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**INDEX TO COMBINED FINANCIAL STATEMENTS**

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| | |
|:---|:---|
|  | **Page** |
| [Combined Balance Sheets as of March 31, 2025 and December 31, 2024](#a_001) | F-2 |
| [Combined Statement of Operations and Comprehensive Income for the three months ended March 31, 2025 and March 31, 2024](#a_002) | F-3 |
| [Combined Statement of Changes in Parent Company Net Investment for the three months ended March 31, 2025 and March 31, 2024](#a_003) | F-4 |
| [Combined Statements of Cash Flows for the three months ended March 31, 2025 and March 31, 2024](#a_004) | F-5 |
| [Notes to Combined Financial Statements](#a_005) | F-6 |

---

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED BALANCE SHEETS**

**(Unaudited; Expressed in US dollars, except for the number of shares)**

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| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $9083232 | $11671984 |
| Restricted cash | 3732792 | 3732792 |
| Accounts receivable | 2531188 | 5267863 |
| Net investment in lease - current | 2632603 | 2546519 |
| Other current assets | 33447655 | 23285682 |
| **Total current assets** | **51427470** | **46504840** |
| **Non-current assets** |  |  |
| Deposits for property and equipment | 4273861 | 35743011 |
| Property, plant, and equipment, net | 166485653 | 89203483 |
| Operating lease right-of-use assets | 14753145 | 14544118 |
| Net investment in lease - non-current | 6087814 | 6782479 |
| Investment securities | 1000000 | 1000000 |
| Deferred tax asset | 103998 | 104642 |
| Intangible Assets | 12762627 | 13028730 |
| Goodwill | 19243410 | 19383291 |
| Other non-current assets | 3639420 | 2838269 |
| **Total non-current assets** | **228349928** | **182628023** |
| **Total assets** | $**279777398** | $**229132863** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $1328847 | $2346510 |
| Current portion of deferred revenue | 21175064 | 30698458 |
| Current portion of operating lease liability | 4869747 | 4372544 |
| Income tax payable | 984940 | 985191 |
| Other payables and accrued liabilities | 17030801 | 7357839 |
| **Total current liabilities** | **45389399** | **45760542** |
| **Non-current liabilities** |  |  |
| Non-current portion of operating lease liability | 8759750 | 9010577 |
| Non-current portion of deferred revenue | 72963 | 73494 |
| Deferred tax liability | 4341724 | 3776124 |
| Other long-term liabilities | 589029 | 785371 |
| **Total non-current liabilities** | **13763466** | **13645566** |
| **Total liabilities** | **59152865** | **59406108** |
| **Total equity** |  |  |
| Parent company net investment | 221122968 | 171148420 |
| Retained earnings | 1571729 | 143893 |
| Accumulated other comprehensive loss | (2070164) | (1565558) |
| **Total equity** | **220624533** | **169726755** |
| **Total liabilities and equity** | $**279777398** | $**229132863** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(Unaudited; Expressed in US dollars, except for the number of shares)**

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| | | |
|:---|:---|:---|
|  | **For the three months <br> ended March 31,** | **For the three months <br> ended March 31,** |
|  | **2025** | **2024** |
| **Revenue** | $**16767516** | $**8169332** |
| **Operating costs and expenses** |  |  |
| Cost of revenue (exclusive of depreciation shown below) | (6650677) | (3157327) |
| Depreciation and amortization expenses | (3829644) | (2881527) |
| General and administrative expenses | (4243819) | (1196919) |
| **Total operating expenses** | **(14724140)** | **(7235773)** |
| **Income from operations** | **2043376** | **933559** |
| **Other (expense) income, net** | **(20937)** | **83292** |
| **Income before provision for income taxes** | **2022439** | **1016851** |
| Income tax expenses | (594603) | (190341) |
| **Net income** | $**1427836** | $**826510** |
| **Other comprehensive loss** |  |  |
| Foreign currency translation adjustment | (504606) | - |
| **Total comprehensive income** | **923230** | **826510** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED STATEMENTS OF CHANGES IN PARENT COMPANY NET INVESTMENT**

**(Unaudited; Expressed in US dollars, except for the number of shares)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Parent<br> Company<br> Net<br> Investment** | **Retained<br> earnings/<br> (Accumulated<br> deficit)** | **Accumulated <br> Other <br> Comprehensive <br> Loss** | **Total Equity** |
| **Balances as of January 1, 2024** | $**50876188** | $**(1225949)** | $**-** | $**49650239** |
| Net income |  | 826511 |  | 826511 |
| Parent contribution | 9289559 | - | - | 9289559 |
| **Balances as of March 31, 2024** | $**60165747** | $**(399438)** | $**-** | $**59766309** |
| **Balances as of January 1, 2025** | **171148420** | **143893** | **(1565558)** | **169726755** |
| Net income |  | 1427836 | **-** | 1427836 |
| Parent contribution | 49974548 |  | **-** | 49974548 |
| Other comprehensive loss | - | - | (504606) | (504606) |
| **Balances as of March 31, 2025** | $**221122968** | $**1571729** | $**(2070164)** | $**220624533** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED STATEMENTS OF CASH FLOWS**

**(Unaudited; Expressed in US dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the three months<br> ended March 31,** | **For the three months<br> ended March 31,** |
|  | **2025** | **2024** |
| **Cash Flows from Operating Activities:** |  |  |
| Net income | $1427836 | $826510 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expenses | 3829644 | 2881527 |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 1058290 | 460955 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 2727964 |  |
| &nbsp;&nbsp;&nbsp;Net investment in lease | 608581 | 235463 |
| &nbsp;&nbsp;&nbsp;Other current assets | (10215260) | 3558052 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | (879017) | (98696) |
| &nbsp;&nbsp;&nbsp;Accounts payable | (992687) | 3324291 |
| &nbsp;&nbsp;&nbsp;Income tax payable | (251) |  |
| &nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 9652427 | (4995228) |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | (196342) |  |
| &nbsp;&nbsp;&nbsp;Deferred revenue | (9520254) | (9321861) |
| &nbsp;&nbsp;&nbsp;Lease liability | (1027457) | (460954) |
| &nbsp;&nbsp;&nbsp;Deferred tax liability | 592573 | 190341 |
| **Net Cash Used in Operating Activities** | **(2933953)** | **(3399600)** |
| **Cash Flows from Investing Activity:** |  |  |
| Purchases of and deposits made for property, plant, and equipment | (50165143) | (63062) |
| **Net Cash Used in Investing Activity** | **(50165143)** | **(63062)** |
| **Cash Flows from Financing Activity:** |  |  |
| Net transfers from parent | 49974548 | 9289559 |
| **Net Cash Provided by Financing Activity** | **49974548** | **9289559** |
| Net increase in cash, cash equivalents and restricted cash | (3124547) | 5826897 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 535795 |  |
| Cash, cash equivalents and restricted cash, beginning of period | 15404776 | 652566 |
| **Cash, cash equivalents and restricted cash, end of period** | $**12816024** | $**6479463** |
| **Supplemental Cash Flow Information** |  |  |
| Cash paid for income taxes, net of (refunds) | $- | $- |
| **Non-cash Transactions of Investing and Financing Activities** |  |  |
| Right of use assets exchanged for operating lease liability | $1298508 | $- |
| Reclassification of deposits to property and equipment | $75415245 | $4157314 |

---

**Reconciliation of cash, cash equivalents and restricted cash**

---

| | | |
|:---|:---|:---|
|  | **March 31, <br> 2025** | **December 31,<br> 2024** |
| Cash and cash equivalents | $9083232 | $11671984 |
| Restricted cash | 3732792 | 3732792 |
| **Total** | $**12816024** | $**15404776** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**NOTES TO COMBINED FINANCIAL STATEMENTS**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES**

The accompanying combined financial statements present, on a historical cost basis, the combined assets, liabilities, revenues and expenses of WhiteFiber AI Inc. (f/k/a Bit Digital AI Inc.) ("WhiteFiber AI") and its subsidiaries and WhiteFiber, Inc. and its subsidiaries ("WhiteFiber" and collectively with WhiteFiber AI the "WhiteFiber Business" or the "Company"). WhiteFiber and WhiteFiber AI are wholly owned subsidiaries of Bit Digital Inc. ("Bit Digital" or "Parent").

In connection with our initial public offering, Bit Digital, the parent company of WhiteFiber and WhiteFiber AI, will enter into a Contribution Agreement to transfer all the capital stock of WhiteFiber AI, and its subsidiaries and their respective assets and liabilities to WhiteFiber (hereinafter the "Reorganization") prior to the effective date of the IPO. The transaction is expected to result in two separate, publicly traded companies: Bit Digital, Inc. and WhiteFiber, Inc. On October 11, 2024, WhiteFiber completed the acquisition of Enovum, a Montreal-based owner, operator, and developer of HPC data centers. WhiteFiber had no assets, liabilities, operations, or commitments and contingencies prior to the acquisition.

WhiteFiber was incorporated on August 15, 2024 under the name Celer, Inc. We believe we are a leading provider of high-performance computing ("HPC") data centers and cloud-based HPC graphics processing units ("GPU") services, which we term cloud services, for customers such as artificial intelligence ("AI") and machine learning ("ML") developers. Our HPC Tier-3 data centers provide hosting and colocation services. Our cloud services are provided by our WhiteFiber AI, Inc., incorporated on October 19, 2023, and its subsidiaries. In connection with our IPO, the WhiteFiber Business is being carved out of Bit Digital, Inc. and will operate as a separate public company**.**

For the avoidance of doubt, when using the terms "we," "us," or "our" throughout this report, it is in reference to the WhiteFiber Business.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of presentation and principles of consolidation***

Throughout the periods covered by the combined financial statements, the WhiteFiber Business has historically existed and functioned as part of the consolidated business of Bit Digital. Consequently, stand-alone financial statements have not historically been prepared for the WhiteFiber Business. The accompanying combined financial statements reflect the historical balance sheets, results of operations and cash flows of the WhiteFiber Business, for the periods presented, prepared on a "carve-out" basis and have been derived from the consolidated financial statements and accounting records of Bit Digital, using the historical results of operations and historical basis of assets and liabilities of the Company. Prior to the formation of WhiteFiber Inc., which was a newly formed subsidiary of Bit Digital, the combined financial statements reflect the result of operations and assets and liabilities of WhiteFiber AI, incorporated on October 19, 2023. The results of Enovum are reflected following its acquisition on October 11, 2024.

The Company's accompanying combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The combined financial statements include the accounts of the Company and its wholly owned subsidiaries. All material transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Transactions between the Company and Bit Digital are considered to be effectively settled when the transactions are recorded and included as a component of Parent company net investment in the combined balance sheet and non-cash parent contribution in the combined statement of cash flows. Parent company investment represents Bit Digital's historical investment in the Company, including WhiteFiber and WhiteFiber AI, and the net effect of transactions with Bit Digital.

All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the combined financial statements. The combined financial statements also include expense allocations for certain functions provided by Bit Digital, including, but not limited to, certain general corporate expenses related to finance, tax, investor relations, and marketing. These general corporate expenses are included in the combined statements of operations within general and administrative expenses. The amount allocated was $0.9 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively. Direct usage has been used to attribute expenses that are specifically identifiable to the Company, where practicable. In certain instances, these expenses have been allocated to the Company primarily based on the percentage of revenue or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. The allocations may not, however, reflect the expense the Company would have incurred as a stand-alone company for the period presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party. Refer to Note 14 for further information.

The combined financial statements do not necessarily reflect what the financial position, results of operations, and cash flows would have been had it operated as a standalone company during the periods presented. Management believes all adjustments necessary for a fair statement of balance sheet, results of operations, and cash flows have been made. Except as otherwise disclosed, all such adjustments are of a normal recurring nature.

Following the Reorganization and IPO, the Company may perform certain functions using its own resources or purchased services. For an interim period following the Reorganization and IPO, however, some of these functions will continue to be provided by Bit Digital, under the TSA.

***Use of estimates***

In preparing the combined financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and 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. These estimates are based on information as of the date of the combined financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of current assets, useful lives of property, plant, and equipment, impairment of long-lived assets, intangible assets and goodwill, valuation of assets and liabilities acquired in business combinations, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates.

 ****

We review the useful lives of equipment on an ongoing basis, and effective January 1, 2025 we changed our estimate of the useful lives for our cloud service equipment from three to five years. The change was made to better reflect the expected usage patterns and economic benefits of the assets. The effect of this change in estimate for Q1 2025, based on cloud service equipment that were included in "Property, plant and equipment, net" as of December 31, 2024 and those acquired during the three months ended March 31, 2025, was a reduction in depreciation and amortization expense of $2.5 million and a benefit to net income of $2.0 million.

 ****

***Fair value of financial instruments***

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

● Level 3 - inputs to the valuation methodology are unobservable.

Fair value of the Company's financial instruments, including cash and cash equivalents, restricted cash, deposits, accounts receivable, other receivables, accounts payable, and other payables, approximate their fair values because of the short-term nature of these assets and liabilities. Non-financial assets, such as goodwill, intangible assets, operating lease right-of-use assets, and property, plant and equipment, are adjusted to fair value when there is an indication of impairment and the carrying amounts exceed the asset's projected undiscounted cash flows. These assets are recorded at fair value only upon recognition of an impairment charge.

***Cash and cash equivalents***

 ****

Cash includes cash on hand and demand deposits in accounts maintained with commercial banks. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents.

***Restricted cash***

 

Restricted cash represents cash balances that support an outstanding letter of credit to third parties related to security deposits and are restricted from withdrawal.

***Accounts Receivable***

Accounts receivable consist of amounts due from our customers. Receivables are recorded at the invoiced amount less an allowance for any potentially uncollectable accounts under the current expected credit loss ("CECL") impairment model and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. In accordance with ASC 326, *Measurement of Credit Losses on Financial Instruments* ("ASC 326"), the Company evaluates the collectability of outstanding accounts receivable balances to determine an allowance for credit loss that reflects its best estimate of the lifetime expected credit losses. Uncollectible accounts are written off against the allowance when collection does not appear probable.

Due to the short-term nature of the Company's accounts receivable, the estimate of expected credit loss is based on the aging of accounts using an aging schedule as of period ends. In determining the amount of the allowance for credit losses, the Company considers historical collection history based on past due status, the current aging of receivables, customer-specific credit risk factors including their current financial condition, current market conditions, and probable future economic conditions which inform adjustments to historical loss patterns.

As of March 31, 2025, the allowance for credit loss has not been material to the combined financial statements.

***Deposits for property, plant, and equipment***

The deposits for property, plant and equipment represented advance payments for purchases of high performance computing equipment. The Company initially recognizes deposits for property, plant, and equipment when cash is advanced to our suppliers. Subsequently, the Company derecognizes and reclassifies deposits for property, plant, and equipment to property, plant, and equipment when control over is transferred to and obtained by the Company.

Below is the roll forward of the balance of deposits for property, plant and equipment for the three months ended March 31, 2025 and 2024, respectively.

---

| | | |
|:---|:---|:---|
|  | **For the three months <br> ended March 31,** | **For the three months <br> ended March 31,** |
|  | **2025** | **2024** |
| **Opening balance** | $**35743011** | $**4127371** |
| Reclassification to property, plant, and equipment | (75415245) | (4157314) |
| Addition of deposits for property, plant, and equipment | 43946095 | 29943 |
| **Ending balance** | $**4273861** | $**-** |

---

***Property, plant, and equipment, net***

Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets or declining-balance method. Direct costs related to developing or obtaining software for internal use are capitalized as property, plant, and equipment. Capitalized software costs are amortized over the software's useful life when the software is placed in service. The estimated useful lives by asset category are:

---

| | |
|:---|:---|
|  | **Estimated <br> Useful <br> Life** |
| Cloud service equipment | 5 years |
| Colocation service equipment | 10 to 15 years |
| Building | 30 years |
| Leasehold improvements | 15 years |
| Purchased software | 14 months |
| Other property and equipment | 20% to 30% |

---

Effective January 1, 2025, we changed our estimate of the useful lives for our cloud service equipment from three to five years. The change was made to better reflect the expected usage patterns and economic benefits of the assets.

***Impairment of long-lived assets***

 ****

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset 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 future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

***Goodwill***

 ****

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is not subject to amortization, and instead, assessed for impairment annually at the end of each fiscal year, or more frequently when events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount in accordance with ASC 350 – Intangibles - Goodwill and Other.

The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative assessment for potential impairment is performed.

The quantitative goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired. An impairment loss is recognized for any excess of the carrying amount of the reporting unit over its fair value up to the amount of goodwill allocated to the reporting unit.

 **

***Finite-lived intangible Assets***

 **

Intangible assets are recorded at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets acquired through business combinations are measured at fair value at the acquisition date.

Intangible assets with finite lives are comprised of customer relationships and are amortized on straight-line basis over their estimated useful lives. The Company assesses the appropriateness of finite-lived classification at least annually. Additionally, the carrying value and remaining useful lives of finite lived assets are reviewed annually to identify any circumstances that may indicate potential impairment or the need for a revision to the amortization period. A finite-lived intangible asset is considered to be impaired if its carrying value exceeds the estimated future undiscounted cash flows expected to be generated from it. We apply judgment in selecting the assumptions used in the estimated future undiscounted cash flow analysis. Impairment is measured by the amount that the carrying value exceeds fair value. The useful lives of customer relationships is 19 years.

***Business combinations***

 ****

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805 - *Business Combinations*, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, measured at the acquisition date fair value. The determination of fair value involves assumptions, estimates, and judgments. The initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net assets acquired.

Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.

***Investment security***

As of March 31, 2025 and December 31, 2024, investment security represents the Company's investment in a privately held company via a simple agreement for future equity ("SAFE").

SAFE investments provide the Company with the right to participate in future equity financing of preferred stock. The Company accounted for this investment under ASC 320, *Investments - Debt Securities* and elected the fair value option for the SAFE investment under ASC 825, *Financial Instruments*, which requires financial instruments to be remeasured to fair value each reporting period, with changes in fair value recorded in the combined statements of operations. The fair value estimate includes significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

***Leases***

The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company's use by the lessor. The Company's assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition, and the presentation reflected in the combined statements of operations over the lease term.

For leases with a term exceeding 12 months, an operating lease liability is recorded on the Company's combined balance sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding operating lease right-of-use asset equal to the initial lease liability is also recorded, adjusted for any prepayment and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment of the associated lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred and not included in the measurement of right-of-use assets and operating lease liabilities.

For the Company's operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For leases with a term of 12 months or less, any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the Company's combined balance sheet as an accounting policy election. Leases qualifying for the short-term lease exception were insignificant.

For sales-type leases where the Company is the lessor, the Company recognizes a net investment in lease, which comprises of the present value of the future lease payments and any unguaranteed residual value. Interest income is recognized over the lease term at a constant periodic discount rate on the remaining balance of the lease net investment using the rate implicit in the lease and is included in "Revenues". Sales-type leases result in the recognition of gain or loss at the commencement of the lease, which will be recorded in "Other income, net."

***Revenue recognition***

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. Refer to Note 3, *Revenue* for further information.

***Contract costs***

Capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, including commissions that are incurred directly related to obtaining customer contracts. We amortize the deferred contract costs on a straight-line basis over the expected period of benefit. These amounts are included in the accompanying combined balance sheets, with the capitalized costs to be amortized to commission expense over the expected period of benefit included in Other current assets and Non-current assets and commission expense payable included in Other current liabilities and Other long-term liabilities.

The Company capitalized lease expense incurred in December 2023 that are directly related to fulfilling its cloud services which commenced operations in January 2024. The lease expense is directly related to fulfill customer contracts and is expected to be recovered. The capitalized lease expense was reclassified as lease expense in January 2024.

***Deferred Revenue***

Deferred revenue primarily pertains to prepayments received from customers for services that have not yet commenced as of March 31, 2025. Deferred revenues are recognized as revenue recognition criteria have been met.

***Remaining performance obligation***

Remaining performance obligations represent the transaction price of contracts for work that have not yet been performed. The amount represents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation.

***Cost of revenue***

The Company's cost of revenue consists primarily of (i) direct production costs related to our cloud services, including electricity costs, data center lease costs, and other relevant costs and (ii) direct production costs related to our colocation services, including electricity costs, lease costs and other relevant costs

Cost revenue excludes depreciation, which is separately stated in the Company's combined statements of operations.

***Foreign currency***

 ****

Accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in total equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a combined entity are remeasured into that entity's functional currency resulting in exchange gains or losses recorded in other income (expense), net.

***Operating segments***

Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker ("CODM") in deciding how to allocate resources to an individual segment and in assessing performance. Our CODM is composed of the Chief Executive Officer and Chief Financial Officer who use segment gross profit (loss) to assess the performance of the business of our reportable operating segments.

***Income taxes***

We account for current and deferred income taxes in accordance with the authoritative guidance, which requires that the income tax impact is to be recognized in the period in which the law is enacted. Current income tax expense represents taxes paid or payable for the current period. Deferred tax assets and liabilities are recognized using enacted tax rates for the future tax impact of temporary differences between the financial statement and tax bases of recorded assets and liabilities. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on historical and projected future taxable income over the periods in which the temporary differences are expected to be recovered or settled on each jurisdiction.

In accordance with the authoritative guidance on accounting for uncertainty in income taxes, we recognize liabilities for uncertain tax positions based on the two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained in audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

 ****

***Commitments and contingencies***

In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

***Share-based compensation***

 ****

The Company's eligible employees have traditionally participated in Bit Digital's shared-based compensation plans and will continue to do so until the IPO is completed. The Company recognizes compensation expenses as an allocation portion of share-based compensation expenses associated with Bit Digital's shared employees.

Bit Digital expenses stock-based compensation to employees and non-employees over the requisite service period based on the grant-date fair value of the awards. Bit Digital estimates the fair value of stock option grants using the Black-Scholes option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. These assumptions are the expected stock volatility, the risk-free interest rate, the expected life of the option, and the dividend yield on the underlying stock. Expected volatility is calculated based on the historical volatility of Bit Digital's ordinary shares over the expected term of the option. Risk-free interest rates are calculated based on risk–free rates for the appropriate term. Bit Digital has elected to account for forfeitures of awards as they occur.

***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 to its combined financial statements and assures that there are proper controls in place to ascertain that the Company's combined financial statements properly reflect the change.

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting* (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company's chief operating decision–making group (the "CODM"). The new standard is effective for the Company for its annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025, with early adoption permitted. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the combined financial statements.

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories and additional reconciling items that meet quantitative thresholds and expands disclosures for income taxes paid by requiring disaggregation by certain jurisdictions. For public business entities ("PBEs"), ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. The new standard is effective for the Company for its annual periods beginning January 1, 2025 and concluded that it will adopt the standard prospectively on the consolidated financial statements to be included in the annual report for the year ending December 31, 2025. The Company is currently evaluating the impact of the new requirement for its income tax disclosure.

In November 2024, the FASB issued ASU 2024-03, I*ncome Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40*) ("ASU 2024-03"). ASU 2024-03 requires, in the notes to the financial statements, disclosures of specified information about certain costs and expenses specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the updated guidance will have on its disclosures.

**3. REVENUE FROM CONTRACTS WITH CUSTOMERS**

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606").

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.

The Company is currently engaged in high performance computing ("HPC") business, including cloud services and colocation services through its operation of HPC data centers.

<u>Disaggregation of revenues</u>

Revenue disaggregated by reportable segment is presented in Note 14, *Segment Reporting*.

*Cloud services*

The Company provides cloud services to support customers' generative AI workstreams. We have determined that cloud services are a single continuous service comprised of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e. distinct days of service).

These services are consumed as they are received, and the Company recognizes revenue over time using the variable allocation exception as it satisfies performance obligations. We apply this exception because we concluded that the nature of our obligations and the variability of the payment terms based on the number of GPUs providing HPC services are aligned and uncertainty related to the consideration is resolved on a daily basis as we satisfy our obligations. The Company recognizes revenue net of consideration payable to customers, such as service credits, and accounted for as a reduction of the transaction price in accordance with guidance in ASC 606-10-32-25.

During the three months ended March 31, 2024, the Company issued a service credit of $1.3 million to the customer as compensation for decreased utilization during the initial deployment period, which included testing and optimization phases.

The Company's cloud services revenue has been generated from Iceland.

*Data center colocation services*

Colocation services generate revenue in Canada by providing customers with physical space, power, and cooling within the data center facility.

Our revenue is primarily derived from recurring revenue streams, mainly (1) colocation, which is the leasing of cabinet space and power and (2) connectivity services, which includes cross-connects. Additionally, the remainder of our revenue is from non-recurring revenue, which primarily includes installation services related to a customer's initial deployment.

Revenues from recurring revenue streams are billed monthly and recognized ratably over the term of the contract, generally 1 to 5 years for data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term.

We guarantee certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within our data center, we would reduce revenue for any credits or cash payments given to the customer. 

*<u>Contract costs</u>*

The Company capitalizes commission expenses directly related to obtaining customer contracts, which would not have been incurred if the contract had not been obtained. As of March 31, 2025, capitalized costs to obtain a contract totaled $1.7 million, and the outstanding commission expense payable was $1.6 million. As of December 31, 2024, capitalized costs to obtain a contract totaled $2.0 million, and the outstanding commission expense payable was $1.6 million.

*<u>Contract Assets</u>*

 

Contract assets primarily consist of revenue allocated to complimentary services provided to customers as part of contractual arrangements. As of March 31, 2025 and December 31, 2024, contract assets were $1.5 million and $nil, respectively.

*<u>Contract Liabilities</u>*

The Company's contract liabilities consist of deferred revenue and customer deposits. The following table presents changes in the total contract liabilities:

---

| | | |
|:---|:---|:---|
|  | **For the three months <br> ended March 31,** | **For the three months <br> ended March 31,** |
|  | **2025** | **2024** |
| **Beginning balance** | $**30771952** | $13073449 |
| Revenue earned | (11113505) | (9321861) |
| Prepayment received | 1589580 | - |
| **Ending balance** | $**21248027** | $**3751588** |

---

 

 

*<u>Remaining performance obligation</u>*

The following table presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation as of March 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2026** | **2027** | **2028** | **2029** | **Total** |
| Colocation Services | $4489318 | $3381881 | $764780 | $20305 | $- | $8656284 |
| Other Revenue | 729505 | 640543 | 360111 | 222236 | $67682 | 2020077 |
| &nbsp;&nbsp;&nbsp;Total contract liabilities | $5218823 | $4022424 | $1124891 | $242541 | $67682 | $10676361 |

---

**4. Acquisitions**

On October 11, 2024, the Company acquired 100% of Enovum Data Centers Corp (the "Acquiree" or "Enovum"), an owner, operator, and developer of high-performance computing data centers, located in Montreal, Quebec, Canada. The acquisition of Enovum provides the Company with a strong diversity of existing and prospective colocation customers, delivers a strong pipeline of expansion site opportunities and an experienced management team to lead the development processes, and enables the Company to offer new service offerings. The acquisition creates the potential for significant synergies, as the Company may capture additional margin from HPC customers, versus hosting them with third party data centers. Additionally, Enovum enhances the Company's competitive positioning in the marketplace, enabling the Company to offer an integrated GPU cloud solution to customers. Finally, the Company will enjoy greater operating flexibility by collocating its owned GPU inventory in Enovum data centers, offering capacity to customers on a just-in-time basis.

The acquisition-date fair value of the consideration transferred totaled $43,834,313. The total consideration consists of $38,993,603 of cash consideration and $4,840,710 in equity-classified exchangeable shares. The acquisition-date fair value of the exchangeable shares was determined based on the opening market price of the Company's Ordinary Shares as of the acquisition date.

The following table summarizes the preliminary allocation of the purchase price based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date:

---

| | |
|:---|:---|
| Accounts receivable | $616153 |
| Other current assets | 2008566 |
| Property and equipment, net | 14201790 |
| Operating lease right-of-use assets | 4752501 |
| Intangible asset | 13486184 |
| Deferred tax asset | 91368 |
| Other non-current assets | 2493 |
| Accounts payable | (1866804) |
| Other payables and accrued liabilities | (1100095) |
| Current portion of deferred revenue | (465360) |
| Current portion of operating lease liability | (248301) |
| Non-current portion of deferred revenue | (123652) |
| Non-current portion of operating lease liability | (3273709) |
| Deferred tax liability | (4090683) |
| **Total identifiable assets and liabilities** | **23990451** |
| Goodwill | 19843862 |
| **Total Purchase Consideration** | $**43834313** |

---

The acquisition-date fair value of the acquired accounts receivable was $616,153, which equals the gross contractual amount. The Company does not expect a material amount of uncollectible contractual cash flows.

The Company recognized customer relationships as an intangible asset of $13,486,184 to be amortized over 19 years.

Of the total Goodwill recognized, $37,000 is attributable to the assembled workforce at Enovum and the rest is attributable to synergies expected to be achieved from the combined operations of the Company and Enovum. The goodwill recognized is not deductible for tax purposes. We assigned the goodwill to our colocation reportable segment.

Through March 31, 2025, the Company recognized $2,080,253 of acquisition-related costs were recognized as expense in the statements of operations line item "General and Administrative Expense".

The following unaudited pro forma financial information represents the combined results of operations as if the acquisition had occurred on January 1, 2024:

---

| | |
|:---|:---|
|  | **For the <br> three months <br> ended <br> March 31, <br> 2024** |
| Revenue | $8924932 |
| Net income | $398202 |

---

These pro forma results are presented for information purposes only and do not necessarily reflect the actual results that would have been achieved had the acquisition occurred on the date assumed, nor are they indicative of future combined results of operations.

These amounts have been calculated after applying the Company's accounting policies and adjusting the results of Enovum to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment, right-of-use asset and intangible assets had been applied on January 1, 2024, together with the consequential tax effects.

**5. OTHER CURRENT ASSETS**

Other current assets were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31, <br> 2025** | **December 31,<br> 2024** |
| Prepaid consulting service expenses | $2951278 | $10050000 |
| Deferred contract costs | 982039 | 982039 |
| Contract assets | 807322 |  |
| Prepayment to third parties (a) | 12005658 | 15402145 |
| Receivable from third parties | 16238227 | 5784589 |
| Others | 463131 | 66909 |
| **Total** | $**33447655** | $**23285682** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) As of December 31, 2024, the balance of prepayment to third parties primarily consists of the prepayment to our GPU servers leasing partner.

**6. LEASES**

***Lease as Lessee***

During the period from October 19, 2023 to December 31, 2023, the Company entered into a capacity lease agreement for its cloud services designed to support generative AI workstreams. The initial lease term is three years, with automatic renewals for successive twelve-month periods. The lease expense incurred in December 2023 is capitalized as deferred cost since it is directly related to fulfilling its cloud services which commenced operations in January 2024. The capitalized lease payment was expensed in January 2024.

On August 1, 2024, the Company entered into an additional capacity lease agreement for its cloud services. The initial lease term is three years with automatic renewals for successive twelve-month periods.

On March 1, 2025, the Company entered into an additional capacity lease agreement for its cloud services. The initial lease term is three years with automatic renewals for successive twelve-month periods.

As of March 31, 2025 and December 31, 2024, operating right-of-use assets were $14.8 million and $14.5 million, respectively and operating lease liabilities were $13.6 million and $13.4 million, respectively. For the three months ended March 31, 2025 and 2024, the Company's amortization on the operating lease right-of-use assets totaled $1.1 million and $0.4 million, respectively.

Additional information regarding the Company's leasing activities as a lessee is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the three months <br> ended March 31,** | **For the three months <br> ended March 31,** |
|  | **2025** | **2024** |
| Operating cash outflows from operating leases | $1323557 | $600000 |
| Weighted average remaining lease term – operating lease | 9.5 | 2.8 |
| Weighted average discount rate – operating lease | 9.1% | 9.9% |

---

The following table represents our future minimum operating lease payments as of March 31, 2025:

---

| | |
|:---|:---|
| **Year** | **Amount** |
| 2025 | $4220612 |
| 2026 | 5532924 |
| 2027 | 2214942 |
| 2028 and thereafter | 6353150 |
| Total undiscounted lease payments | 18321629 |
| Less present value discount | (4692132) |
| Present value of lease liability | $**13629497** |

---

The Company entered into a GPU server lease agreement effective January 2024 for its cloud services designed to support generative AI workstreams. The lease payment depends on the usage of the GPU servers and the Company concludes that the lease payments are variable and will be recognized when they are incurred. For the three months ended March 31, 2025 and 2024, the GPU server lease expense amounted to $3.7 million and $2.1 million, respectively.

***Lease as Lessor***

During the quarter ended March 31, 2024, the Company entered into a sales-type lease agreement as a lessor for its data storage equipment. The term of the lease is scheduled to expire in December 2026.

During the quarter ended September 30, 2024, the Company entered into a sales-type lease agreement as a lessor for its data storage equipment. The term of the lease is scheduled to expire in December 2026.

During the quarter ended December 31, 2024, the Company entered into two sales-type lease agreements as a lessor for its cloud service equipment. The term of the lease is scheduled to expire in October 2029 and November 2029, respectively.

The components of lease income for the sales-type lease were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the three months<br> ended March 31,** | **For the three months<br> ended March 31,** |
|  | **2025** | **2024** |
| Interest income related to net investment in lease | $280567 | $99748 |

---

Interest income is included in the combined statements of operations under the caption "Revenue".

The components of net investment in sales-type leases were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the three months<br> ended March 31,** | **For the three months<br> ended March 31,** |
|  | **2025** | **2024** |
| Net investment in lease - lease payment receivable | $8720417 | $9328998 |

---

The following table illustrates the Company's future minimum receipts for sales-type lease as of March 31, 2025:

---

| | |
|:---|:---|
| **Year** | **Sales-Type<br> Lease** |
| 2025 | $2667441 |
| 2026 | 3556590 |
| 2027 | 1575058 |
| 2028 | 1575058 |
| 2029 | 1366348 |
| Total future minimum receipts | 10740495 |
| Unearned interest income | (2020078) |
| Net investment in sales type lease | $8720417 |

---

The present value of minimum sales-type receipts of $8,720,417 is included in the combined balance sheets under the caption "Net investment in lease".

**7. PROPERTY, PLANT, AND EQUIPMENT, NET**

Property, plant, and equipment, net was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31, <br> 2025** | **December 31,<br> 2024** |
| Cloud service equipment | $98055542 | $63360624 |
| Colocation service equipment | 12536969 | 12509288 |
| Purchased software and internal-use software development costs | 2148623 | 495285 |
| Land | 3477263 | 3502539 |
| Building | 19334202 | 19474743 |
| Leasehold Improvements | 2080752 | 2032691 |
| Other property and equipment | 28856 | 29066 |
| Less: Accumulated depreciation | (20975937) | (17325410) |
|  | 116686270 | 84078826 |
| Construction in progress | 49799383 | 5124657 |
| **Property, plant, and equipment, net** | $**166485653** | $**89203483** |

---

For the three months ended March 31, 2025 and 2024, depreciation and amortization expenses were $3.8 million and $2.9 million, respectively. Construction in Progress represents assets received but not placed into service as of March 31, 2025 and December 31, 2024.

The Company purchased data storage equipment totaling $5,315,202 and almost immediately thereafter, we entered into a sales-type lease agreement effective January 2024 for a portion of these assets valued at $3,353,608 with a third party. As a result, the leased data storage equipment was derecognized from our property, plant, and equipment and recorded as a net investment in lease. Refer to Note 6. *Leases* for more information.

**8. INVESTMENT SECURITY**

As of March 31, 2025 and December 31, 2024, investment security represents the Company's investment of $1,000,000 in a privately held company via a simple agreement for future equity ("SAFE").

On June 30, 2024 (the "Effective Date"), the Company entered into a simple agreement for future equity ("SAFE") agreement for an initial investment amount of $1 million in exchange for a right to participate in a future equity financing of preferred stock to be issued by Canopy Wave Inc. ("Canopy"). Alternatively, upon a liquidity event such as a change in control, a direct listing or an initial public offering, the Company is entitled to receive the greater of (i) the SAFE investment amount plus 15% annual accrued interest (the "cash-out amount") or (ii) the SAFE investment amount divided by a discount to the price per share of Canopy's ordinary shares. In a dissolution event, such as a bankruptcy, the Company is entitled to receive the cash-out amount. If the SAFE is outstanding on the three-year anniversary of the Effective Date, then the SAFE will expire and the Company will be entitled to receive the cash-out amount. In the event of a qualifying equity financing, the number of shares of preferred stock received by the Company would be determined by dividing the SAFE investment amount by a discounted price per share of the preferred stock issued in the respective equity financing. The Company recorded an investment of $1 million as an investment in the SAFE on the combined balance sheets. Additionally, per the terms of the SAFE arrangement, the Company may be obligated to invest up to an additional $2 million into the SAFE arrangement if Canopy satisfies certain milestones prior to the expiration of the SAFE, or if an equity financing event occurs.

The Company accounted for this investment under ASC 320, *Investments - Debt Securities* and elected the fair value option for the SAFE investment pursuant to ASC 825, *Financial Instruments*, which requires financial instruments to be remeasured to fair value each reporting period, with changes in fair value recorded in the combined statements of operations. The fair value estimate includes significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The decision to elect the fair value option is determined on an instrument-by-instrument basis on the date the instrument is initially recognized, is applied to the entire instrument, and is irrevocable once elected. For instruments measured at fair value, embedded conversion or other features are not required to be separated from the host instrument. Issuance costs related to convertible securities carried at fair value are not deferred and are recognized as incurred on the combined statements of operations. For the three months ended March 31, 2025, the Company did not record upward adjustments or downward adjustments on the investment.

**9. OTHER NON-CURRENT ASSETS**

Other non-current assets were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31, <br> 2025** | **December 31, <br> 2024** |
| Deposits (a) | $1584652 | $423511 |
| Deferred contract costs | 736529 | 982039 |
| Contract assets | 740045 |  |
| Others | 578194 | 1432719 |
| **Total** | $**3639420** | $**2838269** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) As of March 31, 2025 and December 31, 2024, the balance of deposits primarily consisted of the deposits made to utility company related to our colocation services.

**10. SHARE-BASED COMPENSATION**

Certain employees of the Company have historically participated in Bit Digital's 2021 Second Omnibus Equity Incentive Plan ("2021 Second Plan") and 2023 Omnibus Equity Incentive Plan ("2023 Plan") which provide long-term incentive compensation to employees, consultants, officers and directors and consist of restricted stock units, restricted share awards and stock options. Until the IPO is completed, certain employees of the Company will continue to participate in the share-based compensation plans authorized and managed by Bit Digital.

All significant awards granted under these plans will settle in shares of Bit Digital's ordinary shares and are approved by Bit Digital's Compensation Committee of the Board of Directors. As such, all related equity account balances, other than allocations of compensation expense, remained at the Bit Digital level. Stock compensation allocated to the Company for its employees is based on the same methodology used for the allocation of other corporate expenses. The allocations of stock compensation to the Company were $38 thousand and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

On February 6, 2025, the Board of Directors of WhiteFiber adopted the 2025 Omnibus Equity Incentive Plan (the "2025 Plan"). The 2025 Plan provides for the award of restricted share units, restricted share awards and options to employees, consultants, officers and directors and up to twelve (12) million Ordinary Shares.

**11. GOODWILL AND INTANGIBLE ASSETS**

<u>Goodwill</u>

The components of goodwill as of March 31, 2025 are as follows:

---

| | |
|:---|:---|
|  | **As of <br> March 31, <br> 2025** |
| Enovum Data Centers Corp. | $19243410 |
| Total goodwill | $19243410 |

---

The Company recorded goodwill in the amount of $19.2 million in connection with its acquisition of Enovum on October 11, 2024. Refer to Note 4. *Acquisitions* for further information.

<u>Finite-lived intangible assets</u>

In addition to goodwill, in connection with the acquisition of Enovum, the Company recorded an identified intangible asset, customer relationships, with a definite useful life of 19 years in the amount of $13.5 million. Refer to Note 4. *Acquisitions* for further information.

The following table presents the Company's finite-lived intangible assets as of March 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Cost** | **Accumulated<br> amortization** | **Net** |
| Customer relationships | $13486184 | $(723557) | $12762627 |
| Total | $13486184 | $(723557) | $12762627 |

---

The following table presents the Company's finite-lived intangible assets as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Cost** | **Accumulated<br> amortization** | **Net** |
| Customer relationships | $13486184 | $(457454) | $13028730 |
| Total | $13486184 | $(457454) | $13028730 |

---

The following table presents the Company's estimated future amortization of finite-lived intangible assets as of March 31, 2025:

---

| | |
|:---|:---|
| 2025 | $519994 |
| 2026 | 693325 |
| 2027 | 693325 |
| Thereafter | 10855983 |
| **Total** | $12762627 |

---

The Company did not identify any impairment of its finite-lived intangible assets during the three months ended March 31, 2025.

**12. INCOME TAXES**

The following table provides details of income taxes:

---

| | | |
|:---|:---|:---|
|  | **For the Three Months<br> Ended March 31,** | **For the Three Months<br> Ended March 31,** |
|  | **2025** | **2024** |
| Income before income taxes | $2022439 | $1016851 |
| Provision for income taxes | $594603 | $190341 |
| Effective tax rate | 29.4% | 18.7% |

---

Our income tax provision was $0.6 million and $0.2 million for the three months ended March 31, 2025 and 2024, respectively. The income tax provision was higher during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the higher profitability from business operational results in Iceland during the three months ended March 31, 2025 compared to the same period in 2024.

Our future effective income tax rate depends on various factors, such as tax legislation, the geographic composition of our pre-tax income, the amount of our pre-tax income as business activities fluctuate, non-deductible expenses, non-taxable book gain in certain jurisdiction, change of valuation allowance and the effectiveness of our tax planning strategies. We also continue to monitor the adoption of Pillar Two relating to the global minimum tax in each of our tax jurisdictions to evaluate its impact on our effective income tax rate. For the three months ended March 31, 2025, the Company is not subject to Pillar Two global minimum tax.

**13. SEGMENT REPORTING**

The Company has two reportable segments: cloud services and colocation services. The reportable segments are identified based on the types of service performed.

Gross profit (loss) is the segment performance measure the chief operating decision maker ("CODM") uses to assess the Company's reportable segments.

The cloud services segment generates revenue from providing high performance computing services to support generative AI workstreams. Cost of revenue consists of direct production costs, including electricity costs, data center lease expense, GPU servers lease expense, and other relevant costs, but excluding depreciation and amortization.

Colocation services generate revenue by providing customers with physical space, power and cooling within the data center facility. Cost of revenue consists of direct production costs related to our HPC data center services, including electricity costs, lease costs and other relevant costs.

The CODM analyzes the performance of the segments based on reportable segment revenue and reportable segment cost of revenue. No operating segments have been aggregated to form the reportable segments.

Other than the $19.8 million of goodwill from the Enovum acquisition allocated to the Colocation Services segment, the Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.

All *Other revenue* is generated from equipment leases with external customers.

*Concentrations*

During the three months ended March 31, 2025, the Company earned revenue of approximately $12.6 million from one customer, representing 75% of the Company's total consolidated revenue. During the three months ended March 31, 2024, the Company earned revenue of approximately $8.2 million from one customer, representing 100% of the Company's total consolidated revenue.

The following tables present segment revenue and segment gross profit reviewed by the CODM:

**Three Months Ended March 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
|  | **Cloud<br> services** | **Colocation<br> services** | **Total** |
| Revenue from external customers | $14842286 | $1644663 | $16486949 |
| *Reconciliation of revenue* |  |  |  |
| Other revenue (a) |  |  | 280567 |
| &nbsp;&nbsp;&nbsp;Total consolidated revenue |  |  | 16767516 |
| Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity costs | 590103 | 223058 | 813161 |
| &nbsp;&nbsp;&nbsp;Datacenter lease expense | 1274054 |  | 1274054 |
| &nbsp;&nbsp;&nbsp;GPU lease expense | 3747386 |  | 3747386 |
| &nbsp;&nbsp;&nbsp;Datacenter rent expense |  | 150537 | 150537 |
| &nbsp;&nbsp;&nbsp;Other segment items (b) | 493298 | 172241 | 665539 |
| **Segment gross profit** | $8737445 | $1098827 | $9836272 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Other revenue is primarily attributable to Equipment Leasing revenue and is therefore not included in the total for segment gross profit.

&nbsp;&nbsp;&nbsp;&nbsp;(b) All amounts included within Other segment items are individually insignificant.

**Three Months Ended March 31, 2024**

---

| | | |
|:---|:---|:---|
|  | **Cloud<br> services** | **Total** |
| Revenue from external customers | $8069584 | $8069584 |
| *Reconciliation of revenue* |  |  |
| Other revenue (a) |  | 99748 |
| Total consolidated revenue |  | 8169332 |
| Less: |  |  |
| Electricity costs | 83378 | 83378 |
| Datacenter lease expense | 700890 | 700890 |
| GPU lease expense | 2082179 | 2082179 |
| Other segment items (b) | 290880 | 290880 |
| **Segment gross profit** | $4912257 | $4912257 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Other revenue is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit.

&nbsp;&nbsp;&nbsp;&nbsp;(b) All amounts included within Other segment items are individually insignificant.

The following table presents the reconciliation of segment gross profit to net income before taxes:

---

| | | |
|:---|:---|:---|
|  | **For the Three Months<br> Ended March 31,** | **For the Three Months<br> Ended March 31,** |
|  | **2025** | **2024** |
| **Segment gross profit** | $9836272 | $4912257 |
| **Reconciling Items:** |  |  |
| Other profit (a) | 280567 | 99748 |
| Depreciation and amortization expenses | (3829644) | (2881527) |
| General and administrative expenses | (4243819) | (1196919) |
| Other (expense) income, net | (20937) | 83292 |
| **Net income before taxes** | $2022439 | $1016851 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Other profit is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit.

*Geographic Information*

 

Revenue by geographic location, based on the location where services are provided by the Company to the customer, with no other country individually comprising greater than 10% of total revenue, is as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **March 31,<br> 2024** |
| Iceland | $14842286 | $8069584 |
| Canada | 1644663 |  |
| Other countries | 280567 | 99748 |
|  | $16767516 | $8169332 |

---

Long-lived assets consist of property, plant and equipment, and operating lease right-of-use assets. The long-lived assets by geographic location are as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **December 31,<br> 2024** |
| United States | $2134091 | $- |
| Iceland | 133142796 | 59766182 |
| Canada | 45961911 | 43981419 |
|  | $181238798 | $103747601 |

---

**14. RELATED PARTIES**

**Related-party transactions**

WhiteFiber AI's subsidiary, WhiteFiber Iceland ehf, has appointed Daniel Jonsson as its part-time Chief Executive Officer starting November 7, 2023, for a six-month term with a three-month probation. His compensation includes a monthly salary of $8,334, a $6,440 signing bonus, and eligibility for performance-based RSU. Concurrently, Daniel Jonsson is part of the management team at GreenBlocks ehf which not only provides bitcoin mining hosting services but also benefits from a facility loan agreement extended by Bit Digital USA Inc., an affiliate of WhiteFiber Iceland ehf. Additionally, WhiteFiber Iceland ehf has contracted GreenBlocks ehf for consulting services pertaining to our high performance computing services in Iceland. As of December 31, 2023, the Company owed $21,592 to Daniel Jonsson for salary and bonus, and $160,000 to GreenBlocks ehf for services rendered. By the end of the first quarter of 2024, we had settled these outstanding amounts with both Daniel Jonsson and GreenBlocks ehf. As of March 31, 2025, the Company owed approximately $21 thousand to Daniel Jonsson for salary and bonus.

Bit Digital made a payment of $1 million on behalf of WhiteFiber Iceland ehf, when WhiteFiber Iceland ehf entered into a simple agreement for future equity ("SAFE") agreement for an initial investment amount of $1 million in exchange for a right to participate in a future equity financing of preferred stock to be issued by Canopy Wave Inc. ("Canopy"). By the end of the third quarter of 2024, we had settled this outstanding amount with Bit Digital.

**Guarantees**

Bit Digital has issued a guarantee to a third party on behalf of WhiteFiber Iceland ehf, making Bit Digital jointly and severally liable for WhiteFiber Iceland's payment obligations related to hosting Services fees and electrical costs under to the colocation agreement. There were no payments outstanding as of March 31, 2025.

**Allocation of corporate expenses**

The Company's financial statements include Bit Digital's general corporate expenses which were not historically allocated to the Company for certain support functions provided by Bit Digital. For the purposes of these financial statements, these general corporate expenses have been allocated to the Company. The allocations cover corporate services provided by Bit Digital, including, but not limited to, finance, tax, investor relations, and marketing. Some of these services will continue to be provided by Bit Digital on a temporary basis after the IPO is completed under a transition services agreement. For the three months ended March 31, 2025 and 2024, the Company was allocated $0.9 million and $0.5 million for these corporate services, respectively. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of percent of revenue or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. Management does not believe, however, that it is practicable to estimate what these expenses would have been had the Company operated as an independent entity, including any expenses associated with obtaining any of these services from unaffiliated entities. Related-party transactions that are not expected to be settled in cash have been included within Parent company net investment in the combined balance sheets. Refer to Note 2 for further information.

**15. CONTINGENCIES**

From time to time, the Company may be a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of March 31, 2025, we are not aware of any material contingencies.

**16. SUBSEQUENT EVENTS**

On April 11, 2025, the Company announced that it has secured the rights to a new data center site in Saint-Jérôme, Québec ("MTL-3"), which is under development and will support the 5 MW (IT Load) colocation agreement with Cerebras Systems ("Cerebras"). The facility spans approximately 202,000 square feet on 7.7 acres and is being developed to support current contracted capacity, with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure, which includes a fixed-price purchase option exercisable within 12 months. The lease term is 20 years, with two 5-year extension options. The facility is being retrofitted to Tier 3 standards, with a targeted go-live date in the fourth quarter of 2025.

On May 20, 2025, we completed the purchase from Unifi Manufacturing, Inc. ("UMI"), pursuant to an amended Real Estate Purchase and Sale Agreement of the Property, as well as certain machinery and equipment located thereon, for a cash purchase price of $45 million. Separately, we entered into a Letter Agreement for the Purchase of Electric Power with Duke Energy dated May 16, 2025 (the "Capacity Agreement"). Pursuant to the Capacity Agreement, Duke Energy agreed to use commercially reasonable efforts to achieve 24 MW of service to the Property by September 1, 2025, 40 MW by April 1, 2026 and 99 MW within four years of the effective date of the Capacity Agreement. Management believes based upon its review of the site and a Duke Energy Preliminary transmission study that the Property may receive and support up to 200 MW (gross) of total electrical supply over an extended period of time, subject to infrastructure upgrades, such as developing new substations and other conditions.

In April 2025, the Company signed two additional cloud services agreements with DNA Holdings Venture Inc. ("DNA Fund"). The first agreement, commencing in early May, includes 104 NVIDIA H200 GPUs under a 23-month term. The second, commencing mid-May, includes 512 H200 GPUs under a 24-month term. With these additions, DNA Fund's total contracted deployment increased to 1,192 GPUs. Combined, the agreements represent approximately $20.9 million of annualized revenue.

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**INDEX TO COMBINED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Public Accounting Firm (PCAOB ID # 3487)](#a_006) | F-26 |
| [Combined Balance Sheets](#a_007) | F-27 |
| [Combined Statements of Operations and Comprehensive Loss](#a_008) | F-28 |
| [Combined Statements of Changes in Parent Company Net Investment](#a_009) | F-29 |
| [Combined Statements of Cash Flows](#a_010) | F-30 |
| [Notes to Combined Financial Statements](#a_011) | F-31 |

---

**REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM**

To the shareholders and board of directors of WhiteFiber, Inc.:

***Opinion on the Financial Statements***

We have audited the accompanying combined balance sheets of the WhiteFiber Business of Bit Digital, Inc. (collectively, the "Company") as of December 31, 2024 and 2023, the related combined statements of operations and comprehensive loss, changes in parent company net investment, and cash flows for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, and the related notes to the combined financial statements and schedules (collectively, the combined financial statements). In our opinion, the combined financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These combined financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the combined 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 combined financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Audit Alliance LLP

Singapore

May 5, 2025

PCAOB ID No. 3487

We have served as the Company's auditor since 2024.

**THE WHITEFIBER BUSINESS Of BIT DIGITAL, INC.**

**COMBINED BALANCE SHEETS**

**(Expressed in US dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $11671984 | $652566 |
| Restricted cash | 3732792 |  |
| Accounts receivable | 5267863 |  |
| Net investment in lease – current | 2546519 |  |
| Other current assets | 23285682 | 14897616 |
| **Total current assets** | **46504840** | **15550182** |
| **Non-current assets** |  |  |
| Deposits for property and equipment | 35743011 | 4127371 |
| Property, plant, and equipment, net | 89203483 | 51030667 |
| Operating lease right-of-use assets | 14544118 | 6216255 |
| Net investment in lease - non-current | 6782479 |  |
| Investment securities | 1000000 |  |
| Deferred tax asset | 104642 |  |
| Intangible Assets | 13028730 |  |
| Goodwill | 19383291 |  |
| Other non-current assets | 2838269 | 2003251 |
| **Total non-current assets** | **182628023** | **63377544** |
| **Total assets** | $**229132863** | $**78927726** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $2346510 | $100000 |
| Current portion of deferred revenue | 30698458 | 13073449 |
| Current portion of operating lease liability | 4372544 | 1864779 |
| Income tax payable | 985191 |  |
| Other payables and accrued liabilities | 7357839 | 8004450 |
| **Total current liabilities** | **45760542** | **23042678** |
| **Non-current liabilities** |  |  |
| Non-current portion of operating lease liability | 9010577 | 4351476 |
| Non-current portion of deferred revenue | 73494 |  |
| Deferred tax liability | 3776124 |  |
| Other long-term liabilities | 785371 | 1883333 |
| **Total non-current liabilities** | **13645566** | **6234809** |
| **Total liabilities** | **59406108** | **29277487** |
| **Total equity** |  |  |
| Parent company net investment | 171148420 | 50876188 |
| Retained earnings (Accumulated deficit) | 143893 | (1225949) |
| Accumulated other comprehensive loss | (1565558) | – |
| **Total equity** | **169726755** | **49650239** |
| **Total liabilities and equity** | $**229132863** | $**78927726** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Expressed in US dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the <br> Year Ended<br> December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Revenue** | $**47639237** | $- |
| **Operating costs and expenses** |  |  |
| Cost of revenue (exclusive of depreciation shown below) | (20215831) |  |
| Depreciation and amortization expenses | (16511406) |  |
| General and administrative expenses | (10283615) | (1243475) |
| **Total operating expenses** | **(47010852)** | **(1243475)** |
| **Income (loss) from operations** | **628385** | **(1243475)** |
| **Other income, net** | **1615634** | **19353** |
| **Income (loss) before provision for income taxes** | **2244019** | **(1224122)** |
| Income tax expenses | (874177) | (1827) |
| **Net income (loss)** | $**1369842** | **(1225949)** |
| **Other comprehensive loss** |  |  |
| Foreign currency translation adjustment | (1565558) | - |
| **Total comprehensive loss** | **(195716)** | **(1225949)** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED STATEMENTS OF CHANGES IN PARENT COMPANY NET INVESTMENT**

**(Expressed in US dollars, except for the number of shares)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Parent<br> Company Net<br> Investment** | **Retained <br> earnings /<br> (Accumulated<br> deficit)** | **Total Equity** |
| **Balances as of October 19, 2023** | $**–** | $**–** | $**-** |
| Net loss |  | (1225949) | (1225949) |
| Parent contribution | 50876188 | – | 50876188 |
| **Balances as of December 31, 2023** | $**50876188** | $**(1225949)** | $**49650239** |
| Net income |  | 1369842 | 1369842 |
| Parent contribution | 120272232 |  | 120272232 |
| Other comprehensive loss | - | (1565558) | (1565558) |
| **Balances as of December 31, 2024** | $**171148420** | $**(1421665)** | $**169726755** |

---

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

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**COMBINED STATEMENTS OF CASH FLOWS**

**(Expressed in US dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the <br> Year Ended<br> December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Cash Flows from Operating Activities:** | | |
| Net income (loss) | $1369842 | $(1225949) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expenses | 16511406 |  |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 2713935 | 74324 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (4666006) |  |
| &nbsp;&nbsp;&nbsp;Intangible Assets | (313015) |  |
| &nbsp;&nbsp;&nbsp;Net investment in lease | (4790453) |  |
| &nbsp;&nbsp;&nbsp;Other current assets | (4455430) | (14897616) |
| &nbsp;&nbsp;&nbsp;Other non-current assets | (832572) | (2003251) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 423071 | 100000 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 985191 |  |
| &nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | (1721174) | 8004450 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | (1097960) | 1883333 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 17217731 | 13073449 |
| &nbsp;&nbsp;&nbsp;Lease liability | (2673002) | (74324) |
| &nbsp;&nbsp;&nbsp;Deferred Tax Liability | (235011) | - |
| **Net Cash Provided by Operating Activities** | **18436553** | **4934416** |
| **Cash Flows from Investing Activities:** |  |  |
| Purchases of and deposits made for property, plant, and equipment | (79026998) | (55158038) |
| Investment in SAFE | (1000000) | - |
| **Net Cash Used in Investing Activities** | **(80026998)** | **(55158038)** |
| **Cash Flows from Financing Activity:** |  |  |
| Net transfers from parent | 76437919 | 50876188 |
| **Net Cash Provided by Financing Activity** | **76437919** | **50876188** |
| Net increase in cash, cash equivalents and restricted cash | 14847474 | 652566 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (95264) |  |
| Cash, cash equivalents and restricted cash, beginning of period | 652566 | - |
| **Cash, cash equivalents and restricted cash, end of period** | $**15404776** | **652566** |
| **Supplemental Cash Flow Information** |  |  |
| Cash paid for income taxes, net of (refunds) | $- |  |
| **Non-cash Transactions of Investing and Financing Activities** |  |  |
| Right of use assets exchanged for operating lease liability | $6399602 | 6290579 |
| Sales-type lease of equipment | $4538545 |  |

---

**Reconciliation of cash, cash equivalents and restricted cash**

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31,<br> 2023** |
| Cash and cash equivalents | $11671984 | $652566 |
| Restricted cash | 3732792 | - |
| **Total** | $**15404776** | $**652566** |

---

**THE WHITEFIBER BUSINESS OF BIT DIGITAL, INC.**

**NOTES TO COMBINED FINANCIAL STATEMENTS**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES**

The accompanying combined financial statements present, on a historical cost basis, the combined assets, liabilities, revenues and expenses of WhiteFiber AI Inc. (f/k/a Bit Digital AI Inc.) ("WhiteFiber AI") and its subsidiaries and WhiteFiber, Inc. and its subsidiaries ("WhiteFiber" and collectively with WhiteFiber AI the "WhiteFiber Business" or the "Company"). WhiteFiber and WhiteFiber AI are wholly owned subsidiaries of Bit Digital Inc. ("Bit Digital" or "Parent").

In connection with our initial public offering, Bit Digital, the parent company of WhiteFiber and WhiteFiber AI, will enter into a Contribution Agreement to transfer all the capital stock of WhiteFiber AI, and its subsidiaries and their respective assets and liabilities to WhiteFiber (hereinafter the "Reorganization") prior to the effective date of the IPO. The transaction is expected to result in two separate, publicly traded companies: Bit Digital, Inc. and WhiteFiber, Inc. On October 11, 2024, WhiteFiber completed the acquisition of Enovum Data Centers Corp ("Enovum"), a Montreal-based owner, operator, and developer of HPC data centers. WhiteFiber had no assets, liabilities, operations, or commitments and contingencies prior to the acquisition.

WhiteFiber was incorporated on August 15, 2024 under the name Celer, Inc. We believe we are a leading provider of high performance computing ("HPC") data centers and cloud-based HPC graphics processing units ("GPU") services, which we term cloud services, for customers such as artificial intelligence ("AI") and machine learning ("ML") developers. Our HPC Tier-3 data centers provide hosting and colocation services. Our cloud services are provided by our WhiteFiber AI, Inc., incorporated on October 19, 2023, and its subsidiaries. In connection with our IPO, the WhiteFiber Business are being carved out of Bit Digital, Inc. and will operate as a separate public company**.**

For the avoidance of doubt, when using the terms "we," "us," or "our" throughout this report, it is in reference to the WhiteFiber Business.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of presentation and principles of consolidation***

Throughout the periods covered by the combined financial statements, the WhiteFiber Business has historically existed and functioned as part of the consolidated business of Bit Digital. Consequently, stand-alone financial statements have not historically been prepared for the WhiteFiber Business. The accompanying combined financial statements reflect the historical balance sheets, results of operations and cash flows of the WhiteFiber Business, for the periods presented, prepared on a "carve-out" basis and have been derived from the consolidated financial statements and accounting records of Bit Digital, using the historical results of operations and historical basis of assets and liabilities of the Company. Prior to the formation of WhiteFiber Inc., which was a newly formed subsidiary of Bit Digital, the combined financial statements reflect the result of operations and assets and liabilities of WhiteFiber AI, incorporated on October 19, 2023. The results of Enovum are reflected following its acquisition on October 11, 2024.

The Company's accompanying combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The combined financial statements include the accounts of the Company and its wholly owned subsidiaries. All material transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Transactions between the Company and Bit Digital are considered to be effectively settled when the transactions are recorded and included as a component of Parent company net investment in the combined balance sheet and non-cash parent contribution in the combined statement of cash flows. Parent company investment represents Bit Digital's historical investment in the Company, including WhiteFiber and WhiteFiber AI, and the net effect of transactions with Bit Digital.

All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the combined financial statements. The combined financial statements also include expense allocations for certain functions provided by Bit Digital, including, but not limited to, certain general corporate expenses related to finance, tax, investor relations, and marketing. These general corporate expenses are included in the combined statements of operations within general and administrative expenses. The amount allocated was $5.7 million and $1.0 million for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, respectively. Direct usage has been used to attribute expenses that are specifically identifiable to the Company, where practicable. In certain instances, these expenses have been allocated to the Company primarily based on the percentage of revenue or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. The allocations may not, however, reflect the expense the Company would have incurred as a stand-alone company for the period presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party. Refer to Note 15 for further information.

The combined financial statements do not necessarily reflect what the financial position, results of operations, and cash flows would have been had it operated as a standalone company during the periods presented. Management believes all adjustments necessary for a fair statement of balance sheet, results of operations, and cash flows have been made. Except as otherwise disclosed, all such adjustments are of a normal recurring nature.

Following the Reorganization and IPO, the Company may perform certain functions using its own resources or purchased services. For an interim period following the Reorganization and IPO, however, some of these functions will continue to be provided by Bit Digital, under a transition services agreement.

***Use of estimates***

In preparing the combined financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and 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. These estimates are based on information as of the date of the combined financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of current assets, useful lives of property, plant, and equipment, impairment of long-lived assets, intangible assets and goodwill, valuation of assets and liabilities acquired in business combinations, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates.

 ****

***Fair value of financial instruments***

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

● Level 3 - inputs to the valuation methodology are unobservable.

Fair value of the Company's financial instruments, including cash and cash equivalents, restricted cash, deposits, accounts receivable, other receivables, accounts payable, and other payables, approximate their fair values because of the short-term nature of these assets and liabilities. Non-financial assets, such as goodwill, intangible assets, operating lease right-of-use assets, and property, plant and equipment, are adjusted to fair value when there is an indication of impairment and the carrying amounts exceed the asset's projected undiscounted cash flows. These assets are recorded at fair value only upon recognition of an impairment charge.

***Cash and cash equivalents***

 ****

Cash includes cash on hand and demand deposits in accounts maintained with commercial banks. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents.

***Restricted cash***

 

Restricted cash represents cash balances that support an outstanding letter of credit to third parties related to security deposits and are restricted from withdrawal.

***Accounts Receivable***

Accounts receivable consist of amounts due from our customer. Receivables are recorded at the invoiced amount less an allowance for any potentially uncollectable accounts under the current expected credit loss ("CECL") impairment model and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. In accordance with ASC 326, *Measurement of Credit Losses on Financial Instruments* ("ASC 326"), the Company evaluates the collectability of outstanding accounts receivable balances to determine an allowance for credit loss that reflects its best estimate of the lifetime expected credit losses. Uncollectible accounts are written off against the allowance when collection does not appear probable.

Due to the short-term nature of the Company's accounts receivable, the estimate of expected credit loss is based on the aging of accounts using an aging schedule as of period ends. In determining the amount of the allowance for credit losses, the Company considers historical collection history based on past due status, the current aging of receivables, customer-specific credit risk factors including their current financial condition, current market conditions, and probable future economic conditions which inform adjustments to historical loss patterns.

As of December 31, 2024, the allowance for credit loss has not been material to the combined financial statements.

***Deposits for property, plant, and equipment***

The deposits for property, plant and equipment represented advance payments for purchases of high performance computing equipment. The Company initially recognizes deposits for property, plant, and equipment when cash is advanced to our suppliers. Subsequently, the Company derecognizes and reclassifies deposits for property, plant, and equipment to property, plant, and equipment when control over this equipment is transferred to and obtained by the Company.

Below is the roll forward of the balance of deposits for property, plant and equipment for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, respectively.

---

| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Opening balance** | $**4127371** | $**-** |
| Reclassification to property, plant, and equipment | (23225217) | (50437607) |
| Addition of deposits for property, plant, and equipment | 55922142 | 54564978 |
| Adjustment (a) | (1081285) |  |
| **Ending balance** | $**35743011** | $**4127371** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) The adjustment represents a reimbursement from the customer for equipment purchased under an existing service agreement, resulting from the customer's request to upgrade to a newer generation of GPUs for future deployment.

***Property, plant, and equipment, net***

Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets or declining-balance method. Direct costs related to developing or obtaining software for internal use are capitalized as property, plant, and equipment. Capitalized software costs are amortized over the software's useful life when the software is placed in service. The estimated useful lives by asset category are:

---

| | |
|:---|:---|
|  | **Estimated <br> Useful <br> Life** |
| Cloud service equipment | 3 - 5 years |
| Colocation service equipment | 10 to 15 years |
| Building | 30 years |
| Leasehold improvements | 15 years |
| Purchased software | 14 months |
| Other property and equipment | 20% to 30% |

---

***Impairment of long-lived assets***

 ****

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset 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 future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

***Goodwill***

 ****

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is not subject to amortization, and instead, assessed for impairment annually at the end of each fiscal year, or more frequently when events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount in accordance with ASC 350 – Intangibles -Goodwill and Other.

The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative assessment for potential impairment is performed.

The quantitative goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired. An impairment loss is recognized for any excess of the carrying amount of the reporting unit over its fair value up to the amount of goodwill allocated to the reporting unit.

 **

***Finite-lived intangible Assets***

 **

Intangible assets are recorded at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets acquired through business combinations are measured at fair value at the acquisition date.

Intangible assets with finite lives are comprised of customer relationships and are amortized on straight-line basis over their estimated useful lives. The Company assesses the appropriateness of finite-lived classification at least annually. Additionally, the carrying value and remaining useful lives of finite lived assets are reviewed annually to identify any circumstances that may indicate potential impairment or the need for a revision to the amortization period. A finite-lived intangible asset is considered to be impaired if its carrying value exceeds the estimated future undiscounted cash flows expected to be generated from it. We apply judgment in selecting the assumptions used in the estimated future undiscounted cash flow analysis. Impairment is measured by the amount that the carrying value exceeds fair value. The useful life of customer relationships is 19 years.

***Business combinations***

 ****

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805 - *Business Combinations*, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, measured at the acquisition date fair value. The determination of fair value involves assumptions, estimates, and judgments. The initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net assets acquired.

Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.

***Investment security***

As of December 31, 2024, investment security represents the Company's investment in a privately held company via a simple agreement for future equity ("SAFE"). As of December 31, 2023, the Company held no investment security.

SAFE investments provide the Company with the right to participate in future equity financing of preferred stock. The Company accounted for this investment under ASC 320, *Investments - Debt Securities* and elected the fair value option for the SAFE investment under ASC 825, *Financial Instruments*, which requires financial instruments to be remeasured to fair value each reporting period, with changes in fair value recorded in the combined statements of operations. The fair value estimate includes significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

***Leases***

The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company's use by the lessor. The Company's assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition, and the presentation reflected in the combined statements of operations over the lease term.

For leases with a term exceeding 12 months, an operating lease liability is recorded on the Company's combined balance sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding operating lease right-of-use asset equal to the initial lease liability is also recorded, adjusted for any prepayment and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment of the associated lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred and not included in the measurement of right-of-use assets and operating lease liabilities.

For the Company's operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For leases with a term of 12 months or less, any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the Company's combined balance sheet as an accounting policy election. Leases qualifying for the short-term lease exception were insignificant.

For sales-type leases where the Company is the lessor, the Company recognizes a net investment in lease, which comprises of the present value of the future lease payments and any unguaranteed residual value. Interest income is recognized over the lease term at a constant periodic discount rate on the remaining balance of the lease net investment using the rate implicit in the lease and is included in "Revenues". Sales-type leases result in the recognition of gain or loss at the commencement of the lease, which will be recorded in "Other income, net."

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***Revenue recognition***

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. Refer to Note 3, *Revenue* for further information.

***Contract costs***

Capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, including commissions that are incurred directly related to obtaining customer contracts. We amortize the deferred contract costs on a straight-line basis over the expected period of benefit. These amounts are included in the accompanying combined balance sheets, with the capitalized costs to be amortized to commission expense over the expected period of benefit and commission expense payable included in Other long-term liabilities.

The Company capitalized lease expense incurred in December 2023 that are directly related to fulfilling its cloud services which commenced operations in January 2024. The lease expense is directly related to fulfill customer contracts and is expected to be recovered. The capitalized lease expense was reclassified as lease expense in January 2024.

***Deferred Revenue***

Deferred revenue primarily pertains to prepayments received from customers for services that have not yet commenced as of December 31 2024. Deferred revenues are recognized as revenue recognition criteria have been met.

***Remaining performance obligation***

Remaining performance obligations represent the transaction price of contracts for work that have not yet been performed. The amount represents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation.

***Cost of revenue***

The Company's cost of revenue consists primarily of (i) direct production costs related to our cloud services, including electricity costs, datacenter lease costs, and other relevant costs and (ii) direct production costs related to our colocation services, including electricity costs, lease costs and other relevant costs

Cost revenue excludes depreciation and amortization, which are separately stated in the Company's combined statements of operations.

***Foreign currency***

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Accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in total equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a combined entity are remeasured into that entity's functional currency resulting in exchange gains or losses recorded in other income (expense), net.

***Operating segments***

Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker ("CODM") in deciding how to allocate resources to an individual segment and in assessing performance. Our CODM is comprised of several members of our executive management team who use revenue and cost of revenue of our two reporting segments to assess the performance of the business of our reportable operating segments.

***Income taxes***

We account for current and deferred income taxes in accordance with the authoritative guidance, which requires that the income tax impact is to be recognized in the period in which the law is enacted. Current income tax expense represents taxes paid or payable for the current period. Deferred tax assets and liabilities are recognized using enacted tax rates for the future tax impact of temporary differences between the financial statement and tax bases of recorded assets and liabilities. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on historical and projected future taxable income over the periods in which the temporary differences are expected to be recovered or settled on each jurisdiction.

In accordance with the authoritative guidance on accounting for uncertainty in income taxes, we recognize liabilities for uncertain tax positions based on the two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained in audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

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***Commitments and contingencies***

In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

***Share-based compensation***

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The Company's eligible employees have traditionally participated in Bit Digital's shared-based compensation plans and will continue to do so until the IPO is completed. The Company recognizes compensation expenses as an allocation portion of share-based compensation expenses associated with Bit Digital's shared employees.

Bit Digital expenses stock-based compensation to employees and non-employees over the requisite service period based on the grant-date fair value of the awards. Bit Digital estimates the fair value of stock option grants using the Black-Scholes option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. These assumptions are the expected stock volatility, the risk-free interest rate, the expected life of the option, and the dividend yield on the underlying stock. Expected volatility is calculated based on the historical volatility of Bit Digital's ordinary shares over the expected term of the option. Risk-free interest rates are calculated based on risk–free rates for the appropriate term. Bit Digital has elected to account for forfeitures of awards as they occur.

***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 to its combined financial statements and assures that there are proper controls in place to ascertain that the Company's combined financial statements properly reflect the change.

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting* (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the Company's chief operating decision–making group (the "CODM"). The new standard is effective for the Company for its annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025, with early adoption permitted. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a material impact on the combined financial statements.

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories and additional reconciling items that meet qualitative thresholds and expands disclosures for income taxes paid by requiring disaggregation by certain jurisdictions. For public business entities ("PBEs"), ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. The Company is closely monitoring the development of the ASU 2023-09 and does not expect its impact to be material on the combined financial statements.

In December 2024, the FASB issued ASU 2024-03, I*ncome Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40*) ("ASU 2024-03"). ASU 2024-03 requires, in the notes to the financial statements, disclosures of specified information about certain costs and expenses specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the updated guidance will have on its disclosures.

**3. REVENUE FROM CONTRACTS WITH CUSTOMERS**

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606").

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.

The Company is currently engaged in high performance computing ("HPC") business, including cloud services and colocation services through its operation of HPC data centers.

<u>Disaggregation of revenues</u>

Revenue disaggregated by reportable segment is presented in Note 14, *Segment Reporting*.

*Cloud services*

The Company provides cloud services to support customers' generative AI workstreams. We have determined that cloud services are a single continuous service comprised of a series of distinct services that are substantially the same and have the same pattern of transfer (i.e. distinct days of service).

These services are consumed as they are received, and the Company recognizes revenue over time using the variable allocation exception as it satisfies performance obligations. We apply this exception because we concluded that the nature of our obligations and the variability of the payment terms based on the number of GPUs providing HPC services are aligned and uncertainty related to the consideration is resolved on a daily basis as we satisfy our obligations. The Company recognizes revenue net of consideration payable to customers, such as service credits, and accounted for as a reduction of the transaction price in accordance with guidance in ASC 606-10-32-25.

During the three months ended March 31, 2024, the Company issued a service credit of $1.3 million to the customer as compensation for decreased utilization during the initial deployment period, which included testing and optimization phases. During the three months ended September 30, 2024, the Company issued another service credit of $0.6 million to the customer as compensation for decreased utilization.

The Company's cloud services revenue has been generated from Iceland.

*Data center colocation services*

Colocation services generate revenue in Canada by providing customers with physical space, power, and cooling within the data center facility.

Our revenue is primarily derived from recurring revenue streams, mainly (1) colocation, which is the leasing of cabinet space and power and (2) connectivity services, which includes cross-connects. Additionally, the remainder of our revenue is from non-recurring revenue, which primarily includes installation services related to a customer's initial deployment.

Revenues from recurring revenue streams are billed monthly and recognized ratably over the term of the contract, generally 1 to 5 years for data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term.

We guarantee certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within our data center, we would reduce revenue for any credits or cash payments given to the customer. 

*<u>Contract costs</u>*

The Company capitalizes commission expenses directly related to obtaining customer contracts, which would not have been incurred if the contract had not been obtained. As of December 31, 2024, capitalized costs to obtain a contract totaled $2.0 million, and the outstanding commission expense payable was $1.6 million. As of December 31, 2023, capitalized costs to obtain a contract totaled $2.8 million, and the outstanding commission expense payable was $1.9 million.

The Company capitalized lease expense in December 2023 that were directly related to fulfilling its high performance computing services which commenced operations in January 2024. The lease expense is directly related to fulfill customer contracts and is expected to be recovered. As of December 31, 2024 and December 31, 2023, capitalized costs to fulfill a contract totaled $nil and $100 thousand, respectively.

*<u>Contract Liabilities</u>*

The Company's contract liabilities consist of deferred revenue and customer deposits. The following table presents changes in the total contract liabilities:

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Beginning balance** | $**13073449** | $- |
| Revenue earned (a) | (14371827) |  |
| Prepayment received | 32070330 | 13073449 |
| **Ending balance** | $**30771952** | $**13073449** |

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&nbsp;&nbsp;&nbsp;&nbsp;(a) Revenue earned includes deferred revenue of $0.6 million from the acquisition of Enovum (as defined below). Please refer to Note 4. *Acquisitions* for further information.

*<u>Remaining performance obligation</u>*

The following table presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation as of December 31, 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2026** | **2027** | **2028** | **2029** | **Total** |
| Colocation Services | $6094143 | $3406451 | $770337 | $20452 | $- | $10291383 |
| Other Revenue | 1010070 | 640543 | 360111 | 222236 | $67682 | 2300642 |
| &nbsp;&nbsp;Total contract liabilities | $7104213 | $4046994 | $1130448 | $242688 | $67682 | $12592025 |

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**4. Acquisitions**

On October 11, 2024, the Company acquired 100% of Enovum, an owner, operator, and developer of high-performance computing data centers, located in Montreal, Quebec, Canada. The acquisition of Enovum provides the Company with a strong diversity of existing and prospective colocation customers, delivers a strong pipeline of expansion site opportunities and an experienced management team to lead the development processes, and enables the Company to offer new service offerings. The acquisition creates the potential for significant synergies, as the Company may capture additional margin from HPC customers, versus hosting them with third party data centers. Additionally, Enovum enhances the Company's competitive positioning in the marketplace, enabling the Company to offer an integrated GPU cloud solution to customers. Finally, the Company will enjoy greater operating flexibility by collocating its owned GPU inventory in Enovum data centers, offering capacity to customers on a just-in-time basis.

The acquisition-date fair value of the consideration transferred totaled $43,834,313. The total consideration consists of $38,993,603 of cash consideration and $4,840,710 in equity-classified exchangeable shares. The acquisition-date fair value of the exchangeable shares was determined based on the opening market price of the Company's Ordinary Shares as of the acquisition date.

The following table summarizes the preliminary allocation of the purchase price based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date:

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| | |
|:---|:---|
| Accounts receivable | $616153 |
| Other current assets | 2008566 |
| Property and equipment, net | 14201790 |
| Operating lease right-of-use assets | 4752501 |
| Intangible asset | 13486184 |
| Deferred tax asset | 91368 |
| Other non-current assets | 2493 |
| Accounts payable | (1866804) |
| Other payables and accrued liabilities | (1100095) |
| Current portion of deferred revenue | (465360) |
| Current portion of operating lease liability | (248301) |
| Non-current portion of deferred revenue | (123652) |
| Non-current portion of operating lease liability | (3273709) |
| Deferred tax liability | (4090683) |
| **Total identifiable assets and liabilities** | **23990451** |
| Goodwill | 19843862 |
| **Total Purchase Consideration** | $**43834313** |

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The acquisition-date fair value of the acquired accounts receivable was $616,153, which equals the gross contractual amount. The Company does not expect a material amount of uncollectible contractual cash flows.

The Company recognized customer relationships as an intangible asset of $13,486,184 to be amortized over 19 years.

Of the total Goodwill recognized, $37,000 is attributable to the assembled workforce at Enovum and the rest is attributable to synergies expected to be achieved from the combined operations of the Company and Enovum. The goodwill recognized is not deductible for tax purposes. We assigned the goodwill to our colocation reportable segment.

The results of Enovum have been included in the Company's combined statements of operations since the acquisition date. The amounts of revenue and net income of Enovum included in the Company's combined consolidated statements of operations from the acquisition date to December 31, 2024 are $1,361,241 and $15,025, respectively.

Through December 31, 2024, the Company recognized $1,980,769 of acquisition-related costs were recognized as expense in the statements of operations line item "General and Administrative Expense".

The following unaudited pro forma financial information represents the combined results of operations as if the acquisition had occurred on January 1, 2024:

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| | |
|:---|:---|
|  | **Pro forma <br> combined<br> income <br> statement<br> for the year<br> ended <br> December 31, <br> 2024** |
| Revenue | $51199724 |
| Net income | (413997) |

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These pro forma results are presented for information purposes only and do not necessarily reflect the actual results that would have been achieved had the acquisition occurred on the date assumed, nor are they indicative of future combined results of operations.

These amounts have been calculated after applying the Company's accounting policies and adjusting the results of Enovum to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment, right-of-use asset and intangible assets had been applied on January 1, 2024, together with the consequential tax effects.

**5. OTHER CURRENT ASSETS**

Other current assets were comprised of the following:

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| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31,<br> 2023** |
| Prepaid consulting service expenses | $1050000 | $- |
| Deferred contract costs | 982039 | 1041667 |
| Prepayment to third parties (a) | 15402145 |  |
| Receivable from third parties | 5784589 | 13855949 |
| Others | 66909 | - |
| **Total** | $**23285682** | $**14897616** |

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&nbsp;&nbsp;&nbsp;&nbsp;(a) As of December 31, 2024, the balance of prepayment to third parties primarily consists of the prepayment to our GPU servers leasing partner.

**6. LEASES**

***Lease as Lessee***

During the period from October 19, 2023 to December 31, 2023, the Company entered into a capacity lease agreement for its cloud services designed to support generative AI workstreams. The initial lease term is three years, with automatic renewals for successive twelve-month periods. The lease expense incurred in December 2023 is capitalized as deferred cost since it is directly related to fulfilling its high performance computing services which commenced operations in January 2024. The capitalized lease payment was expensed in January 2024.

On August 1, 2024, the Company entered into an additional capacity lease agreement for its high performance computing services. The initial lease term is three years with automatic renewals for successive twelve-month periods.

As of December 31, 2024 and December 31, 2023, operating right-of-use assets were $14.5 million and $6.2 million, respectively and operating lease liabilities were $13.4 million and $6.2 million, respectively. For the year ended December 31, 2024, the Company's amortization on the operating lease right-of-use assets totaled $2.7 million and $74.3 thousand, respectively.

Additional information regarding the Company's leasing activities as a lessee is as follows:

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Operating cash outflows from operating leases | $3452098 | $100000 |
| Weighted average remaining lease term – operating lease | 9.8 | 2.9 |
| Weighted average discount rate – operating lease | 9.2% | 9.9% |

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The following table represents our future minimum operating lease payments as of December 31, 2024:

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| | |
|:---|:---|
| **Year** | **Amount** |
| 2025 | $5136161 |
| 2026 | 5042966 |
| 2027 | 1725035 |
| 2028 and thereafter | 6316737 |
| Total undiscounted lease payments | 18220900 |
| Less present value discount | (4837779) |
| Present value of lease liability | $**13383121** |

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The Company entered into a GPU server lease agreement effective January 2024 for its cloud services designed to support generative AI workstreams. The lease payment depends on the usage of the GPU servers and the Company concludes that the lease payments are variable and will be recognized when they are incurred. For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, the GPU server lease expense amounted $13.6 million and $nil, respectively.

***Lease as Lessor***

During the quarter ended March 31, 2024, the Company entered into a sales-type lease agreement as a lessor for its data storage equipment. The term of the lease is scheduled to expire in December 2026.

During the quarter ended September 30, 2024, the Company entered into a sales-type lease agreement as a lessor for its data storage equipment. The term of the lease is scheduled to expire in December 2026.

During the quarter ended December 31, 2024, the Company entered into two sales-type lease agreements as a lessor for its cloud service equipment. The term of the lease is scheduled to expire in October 2029 and November 2029 respectively.

The components of lease income for the sales-type lease were as follows:

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br>**December 31, <br> 2024** | **For the<br> Period From <br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Interest income related to net investment in lease | $550260 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

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Interest income is included in the combined statements of operations under the caption "Revenue".

The components of net investment in sales-type leases were as follows:

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| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br>**December 31,<br> 2024** | **For the <br> Period From <br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Net investment in lease - lease payment receivable | $9328998 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

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The following table illustrates the Company's future minimum receipts for sales-type lease as of December 31, 2024:

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| | |
|:---|:---|
| **Year** | **Sales-Type<br> Lease** |
| 2025 | $3556589 |
| 2026 | 3556589 |
| 2027 | 1575058 |
| 2028 | 1575058 |
| 2029 | 1366348 |
| Total future minimum receipts | 11629642 |
| Unearned interest income | (2300644) |
| Net investment in sales type lease | $9328998 |

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The present value of minimum sales-type receipts of $9,328,998 is included in the combined balance sheets under the caption "Net investment in lease".

**7. PROPERTY, PLANT, AND EQUIPMENT, NET**

Property, plant, and equipment, net was comprised of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Cloud service equipment | $63360624 | $- |
| Colocation service equipment | 12509288 |  |
| Purchased software and internal-use software development costs | 495285 |  |
| Land | 3502539 |  |
| Building | 19474743 |  |
| Leasehold Improvements | 2032691 |  |
| Other property and equipment | 29066 |  |
| Less: Accumulated depreciation | (17325410) | - |
|  | 84078826 |  |
| Construction in progress | 5124657 | 51030667 |
| **Property, plant, and equipment, net** | $**89203483** | $**51030667** |

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For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, depreciation and amortization expenses were $16.5 million and $nil, respectively. Construction in Progress represents assets received but not placed into service as of December 31, 2023 and 2024.

The Company purchased data storage equipment totaling $5,315,202 and almost immediately thereafter, we entered into a sales-type lease agreement effective January 2024 for a portion of these assets valued at $3,353,608 with a third party. As a result, the leased data storage equipment was derecognized from our property, plant, and equipment and recorded as a net investment in lease. Refer to Note 6. *Leases* for more information.

The Company purchased data storage equipment totaling $1,254,248 and immediately thereafter, we entered into a sales-type lease agreement effective August 2024 for a portion of these assets valued at $1,184,937 with a third party. As a result, the leased data storage equipment was derecognized from our property, plant, and equipment and recorded as a net investment in lease. Refer to Note 6. *Leases* for more information.

The Company purchased servers and network equipment totaling $6,056,700 and almost immediately thereafter, we entered into two sales-type lease agreements effective November 2024 and December 2024 with a third party. As a result, the leased cloud service equipment was derecognized from our property, plant, and equipment and recorded as a net investment in lease. Refer to Note 6. *Leases* for more information.

**8. INVESTMENT SECURITY**

As of December 31, 2024, investment security represents the Company's investment of $1,000,000 in a privately held company via a simple agreement for future equity ("SAFE"). As of December 31, 2023, the Company held no investment security.

On June 30, 2024 (the "Effective Date"), the Company entered into a simple agreement for future equity ("SAFE") agreement for an initial investment amount of $1 million in exchange for a right to participate in a future equity financing of preferred stock to be issued by Canopy Wave Inc. ("Canopy"). Alternatively, upon a liquidity event such as a change in control, a direct listing or an initial public offering, the Company is entitled to receive the greater of (i) the SAFE investment amount plus 15% annual accrued interest (the "cash-out amount") or (ii) the SAFE investment amount divided by a discount to the price per share of Canopy's ordinary shares. In a dissolution event, such as a bankruptcy, the Company is entitled to receive the cash-out amount. If the SAFE is outstanding on the three-year anniversary of the Effective Date, then the SAFE will expire and the Company will be entitled to receive the cash-out amount. In the event of a qualifying equity financing, the number of shares of preferred stock received by the Company would be determined by dividing the SAFE investment amount by a discounted price per share of the preferred stock issued in the respective equity financing. The Company recorded an investment of $1 million as an investment in the SAFE on the combined balance sheets. Additionally, per the terms of the SAFE arrangement, the Company may be obligated to invest up to an additional $2 million into the SAFE arrangement if Canopy satisfies certain milestones prior to the expiration of the SAFE, or if an equity financing event occurs.

The Company accounted for this investment under ASC 320, *Investments - Debt Securities* and elected the fair value option for the SAFE investment pursuant to ASC 825, *Financial Instruments*, which requires financial instruments to be remeasured to fair value each reporting period, with changes in fair value recorded in the combined statements of operations. The fair value estimate includes significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The decision to elect the fair value option is determined on an instrument-by-instrument basis on the date the instrument is initially recognized, is applied to the entire instrument, and is irrevocable once elected. For instruments measured at fair value, embedded conversion or other features are not required to be separated from the host instrument. Issuance costs related to convertible securities carried at fair value are not deferred and are recognized as incurred on the combined statements of operations. For the year ended December 31, 2024, the Company did not record upward adjustments or downward adjustments on the investment.

**9. OTHER NON-CURRENT ASSETS**

Other non-current assets were comprised of the following:

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| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| Deposits | $423511 | $- |
| Deferred contract costs | 982039 | 1883333 |
| Others | 1432719 | 119918 |
| **Total** | $**2838269** | $**2003251** |

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**10. SHARE-BASED COMPENSATION**

Certain employees of the Company have historically participated in Bit Digital's 2021 Second Omnibus Equity Incentive Plan ("2021 Second Plan") and 2023 Omnibus Equity Incentive Plan ("2023 Plan") which provide long-term incentive compensation to employees, consultants, officers and directors and consist of restricted stock units, restricted share awards and stock options. Until the IPO is completed, certain employees of the Company will continue to participate in the share-based compensation plans authorized and managed by Bit Digital.

All significant awards granted under these plans will settle in shares of Bit Digital's ordinary shares and are approved by Bit Digital's Compensation Committee of the Board of Directors. As such, all related equity account balances, other than allocations of compensation expense, remained at the Bit Digital level. Stock compensation allocated to the Company for its employees is based on the same methodology used for the allocation of other corporate expenses. The allocations of stock compensation to the Company were $3.1 million and $0.9 million for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, respectively.

On February 6, 2025, the Board of Directors of WhiteFiber adopted the 2025 Omnibus Equity Incentive Plan (the "2025 Plan"). The 2025 Plan provides for the award of restricted share units, restricted share awards and options to employees, consultants, officers and directors and up to twelve (12) million Ordinary Shares.

**11. GOODWILL AND INTANGIBLE ASSETS**

<u>Goodwill</u>

The components of goodwill as of December 31, 2024 are as follows:

---

| | |
|:---|:---|
|  | **As of <br> December 31, <br> 2024** |
| Enovum Data Centers Corp. | 19383291 |
| Total goodwill | 19383291 |

---

The Company recorded goodwill in the amount of $19.3 million in connection with its acquisition of Enovum on October 11, 2024. Refer to Note 4. *Acquisitions* for further information.

<u>Finite-lived intangible assets</u>

In addition to goodwill, in connection with the acquisition of Enovum, the Company recorded an identified intangible asset, customer relationships, with a definite useful life of 19 years in the amount of $13.5 million. Refer to Note 4. *Acquisitions* for further information.

The following table presents the Company's finite-lived intangible assets as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Cost** | **Accumulated<br> amortization** | **Net** |
| Customer relationships | 13486184 | (457454) | 13028730 |
| Total | 13486184 | (457454) | 13028730 |

---

There were no finite-lived intangible assets as of December 31, 2023.

The following table presents the Company's estimated future amortization of finite-lived intangible assets as of December 31, 2024:

---

| | |
|:---|:---|
| 2025 | $693325 |
| 2026 | 693325 |
| 2027 | 693325 |
| Thereafter | 10948755 |
| **Total** | $13028730 |

---

**12. INCOME TAXES**

The components of income before income taxes were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Domestic loss before income taxes | $(839368) | $- |
| Foreign income (loss) before income taxes | 3083387 | (1224122) |
| **Total income (loss) before income taxes** | $**2244019** | $**(1224122)** |

---

The provision for income taxes was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| Current: |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $247244 | $- |
| &nbsp;&nbsp;&nbsp;State |  |  |
| &nbsp;&nbsp;&nbsp;Foreign | 861943 | 1827 |
| Total current income taxes | $1109187 | $1827 |
| Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $(15395) | $- |
| &nbsp;&nbsp;&nbsp;State |  |  |
| &nbsp;&nbsp;&nbsp;Foreign | (219615) | - |
| Total deferred income taxes | $(235010) | $- |
| **Total income tax provision** | $**874177** | $**1827** |

---

The significant components of deferred income tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended**<br> **December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Deferred Tax Assets:** | | |
| &nbsp;&nbsp;&nbsp;Net operating losses carryforwards | $1318934 | $77920 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 645786 | 179146 |
| &nbsp;&nbsp;&nbsp;Lease liability | 2085460 |  |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange gain/loss | 277 |  |
| &nbsp;&nbsp;&nbsp;Other deferred tax assets | 92816 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross deferred tax assets | 4143273 | 257066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: valuation allowance | - | (257066) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets | 4143273 | - |
| **Deferred Tax Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Right-of-use asset | $(2479301) | $- |
| &nbsp;&nbsp;&nbsp;Basis difference in fixed assets | (1932206) |  |
| &nbsp;&nbsp;&nbsp;Basis difference in intangible | (3403248) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross deferred tax liabilities | (7814755) | - |
| **Total net deferred tax assets/(liabilities)** | $**(3671482)** | $**-** |

---

As of December 31, 2024, we had no U.S. federal, state and foreign net operating losses.

The valuation allowance was $nil million and $0.2 million as of December 31, 2024 and 2023, respectively. The change was primarily due to the fact that the Company had a net deferred liability position due to basis difference in both fixed assets and digital assets in the year ended December 31, 2024. The valuation allowance is based on our assessment that it is more likely than not that certain deferred tax assets will not be realized in the foreseeable future on a jurisdictional basis.

The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Period From<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| US Federal income tax rate | 21.0% | 21.0% |
| Effect of foreign operations taxed at various rates | (0.3)% | 0.0% |
| GILTI Inclusion | 18.2% | 0.0% |
| State income taxes, net of federal benefit | 0.0% | 0.0% |
| Reserves on Hong Kong share-based compensation tax benefits | 0.0% | 0.0% |
| Non-deductible impairment on digital assets | 0.0% | 0.0% |
| Non-taxable capital gain on investments | 0.0% | 0.0% |
| Non-deductible fixed asset impairment | 1.1% | 0.0% |
| Effect of change in valuation allowance | (1.0)% | (21.0)% |
| Impact from adoption of new accounting standard | 0.0% | 0.0% |
| Withholding Tax on Interest Payment | 0.0% | (0.1)% |
| Others | 0.0% | 0.0% |
| **Total income tax provision/(benefit)** | 39.0% | (0.1)% |

---

The Company has no unrecognized tax benefits as of December 31, 2024 and 2023.

In the normal course of business, we are subject to examination by tax authorities throughout the world. We are subject to U.S. federal and state income tax examinations for all years beginning from the calendar year ended December 31, 2024. We are subject to Iceland income tax examinations for all years beginning from the calendar year ended December 31, 2023. Currently we are not under audit from tax authority in any of the jurisdictions, in which we operated.

Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, we do not anticipated any significant changes to unrecognized tax benefits over the next 12 months.

**13. SEGMENT REPORTING**

The Company has two reportable segments: cloud services and colocation services. The reportable segments are identified based on the types of service performed.

The cloud services segment generates revenue from providing high performance computing services to support generative AI workstreams. Cost of revenue consists of direct production costs, including electricity costs, data center lease expense, GPU servers lease expense, and other relevant costs, but excluding depreciation and amortization.

Colocation services generate revenue by providing customers with physical space, power and cooling within the data center facility. Cost of revenue consists of direct production costs related to our HPC data center services, including electricity costs, lease costs and other relevant costs.

The CODM analyzes the performance of the segments based on reportable segment revenue and reportable segment cost of revenue. No operating segments have been aggregated to form the reportable segments.

The Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.

All *Other revenue* is generated from equipment leases with external customers.

*Concentrations*

During the year ended December 31, 2024, the Company earned revenue of approximately $46.0 million from one customer, representing 96.6% of the Company's total revenue.

The following table presents revenue and cost of revenue for the Company's reportable segments, reconciled to the combined statements of operations:

---

| | | |
|:---|:---|:---|
|  | **For the <br> year ended<br> December 31,<br> 2024** | **For the<br> period from<br> October 19,<br> 2023 to<br> December 31,<br> 2023** |
| **Reportable segment revenue:** | | |
| &nbsp;&nbsp;&nbsp;Cloud services | $45727736 | $- |
| &nbsp;&nbsp;&nbsp;Colocation services | 1361241 |  |
| &nbsp;&nbsp;&nbsp;Other revenue | 550260 | - |
| Total revenue | $**47639237** | $**-** |
| **Reportable segment cost of revenue:** |  |  |
| &nbsp;&nbsp;&nbsp;Cloud services | (19725330) |  |
| &nbsp;&nbsp;&nbsp;Colocation services | (490501) | - |
| Total cost of revenue | $**(20215831)** | $**-** |
| **Reconciling Items:** |  |  |
| Depreciation and amortization expenses | (16511406) |  |
| General and administrative expenses | (10283615) | (1243475) |
| Other income expense, net | 1615634 | 19353 |
| Income tax expenses | (874177) | (1827) |
| Net income | $**1369842** | $**(1225949)** |

---

**14. RELATED PARTIES**

**Related-party transactions** 

WhiteFiber AI's subsidiary, WhiteFiber Iceland ehf, has appointed Daniel Jonsson as its part-time Chief Executive Officer starting November 7, 2023, for a six-month term with a three-month probation. His compensation includes a monthly salary of $8,334, a $6,440 signing bonus, and eligibility for performance-based RSU. Concurrently, Daniel Jonsson is part of the management team at GreenBlocks ehf which not only provides bitcoin mining hosting services but also benefits from a facility loan agreement extended by Bit Digital USA Inc., an affiliate of WhiteFiber Iceland ehf. Additionally, WhiteFiber Iceland ehf has contracted GreenBlocks ehf for consulting services pertaining to our high performance computing services in Iceland. As of December 31, 2023, the Company owed $21,592 to Daniel Jonsson for salary and bonus, and $160,000 to GreenBlocks ehf for services rendered. By the end of the first quarter of 2024, we had settled these outstanding amounts with both Daniel Jonsson and GreenBlocks ehf.

Bit Digital made a payment of $1 million on behalf of WhiteFiber Iceland ehf, when WhiteFiber Iceland ehf entered into a simple agreement for future equity ("SAFE") agreement for an initial investment amount of $1 million in exchange for a right to participate in a future equity financing of preferred stock to be issued by Canopy Wave Inc. ("Canopy"). By the end of the third quarter of 2024, we had settled this outstanding amount with Bit Digital.

**Guarantees**

Bit Digital has issued a guarantee to a third party on behalf of WhiteFiber Iceland ehf, making Bit Digital jointly and severally liable for WhiteFiber Iceland's payment obligations related to hosting Services fees and electrical costs under to the colocation agreement. There were no payments outstanding as of December 31, 2024.

**Allocation of corporate expenses**

The Company's financial statements include Bit Digital's general corporate expenses which were not historically allocated to the Company for certain support functions provided by Bit Digital. For the purposes of these financial statements, these general corporate expenses have been allocated to the Company. The allocations cover corporate services provided by Bit Digital, including, but not limited to, finance, tax, investor relations, and marketing. Some of these services will continue to be provided by Bit Digital on a temporary basis after the IPO is completed under a transition services agreement. For the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, the Company was allocated $5.7 million and $1.0 for these corporate services, respectively. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of percent of revenue or other allocation methodologies that are considered to be a reasonable reflection of the utilization of the services provided to the benefits received. Management does not believe, however, that it is practicable to estimate what these expenses would have been had the Company operated as an independent entity, including any expenses associated with obtaining any of these services from unaffiliated entities. Related-party transactions that are not expected to be settled in cash have been included within Parent company net investment in the combined balance sheets. Refer to Note 2 for further information.

**15. CONTINGENCIES**

From time to time, the Company may be a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of December 31, 2024, we are not aware of any material contingencies.

**16. SUBSEQUENT EVENTS**

In January 2025, the Company entered into a new agreement to supply its first customer with an additional 464 GPUs for a period of eighteen months. This new agreement replaces the prior agreement whereby the Company was to provide the customer with an incremental 2,048 H100 GPUs. The contract represents approximately $15 million of annualized revenue and features a two-month prepayment from the customer.

On January 6, 2025, the Company entered into a Master Services Agreement ("MSA") with a minimum purchase commitment of 32 GPUs, along with an associated purchase order, from a new customer. The purchase order provides for services utilizing a total of 32 H200 GPUs over a minimum of six (6) month period, representing total revenue of approximately $300,000 for the term. The deployment commenced and revenue generation began on January 8, 2025, using the Company's existing inventory of H200 GPUs.

On April 11, 2025, the Company announced that it has secured the rights to a new data center site in Saint-Jérôme, Québec ("MTL-3"), which is under development and will support the 5 MW colocation agreement with Cerebras Systems ("Cerebras"). The facility spans approximately 202,000 square feet on 7.7 acres and is being developed to support current contracted capacity, with future expansion potential subject to utility approvals. The transaction was executed under a lease-to-own structure, which includes a fixed-price purchase option exercisable within 12 months. The lease term is 20 years, with two 5-year extension options. The facility is being retrofitted to Tier 3 standards, with a targeted go-live date in the fourth quarter of 2025.

On April 10, 2025, we entered into a real estate purchase and sale agreement, dated as of April 10, 2025 (the "Purchase Agreement") with Unifi Manufacturing, Inc. ("UMI"). Pursuant to the Purchase Agreement we agreed to purchase from UMI, an industrial/manufacturing building together with the underlying land ("NC-1") located in Madison, North Carolina, as well as certain machinery and equipment located thereon, for a cash purchase price of $53.2 million (the "Purchase Price"). An earnest money deposit of $2.25 million was deposited in escrow pursuant to the terms of the Purchase Agreement, of which $1.25 million is non-refundable to us. The closing of the transaction contemplated by the Purchase Agreement is expected to occur on May 15, 2025, unless accelerated by the Company pursuant to the terms of the Purchase Agreement.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION**

The expenses in connection with the issuance and distribution of the securities being registered, other than underwriting discounts and commissions, are estimated below:

---

| | |
|:---|:---|
| SEC registration fee | $15310 |
| Nasdaq Listing fee |  |
| FINRA filing fee | $15500 |
| Legal fees and expenses | $2500000 |
| Accounting fees and expenses | $371687 |
| Transfer agent fees and expenses | $2040 |
| Printing and engraving expenses | $30000 |
| Miscellaneous expenses | 220000 |
| Total | $3078537 |

---

**ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The registrant's authority to indemnify its officers and directors is governed by the provisions of the registrant's A&R M&A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The A&R M&A of the registrant provides as follows:

To the extent permitted by law, the Company shall indemnify each existing or former Director (including alternate Director), Secretary and other Officer of the Company (including an investment adviser or an administrator or liquidator) and their personal representatives against:

&nbsp;&nbsp;&nbsp;&nbsp;(a) all actions, proceedings, costs, charges, expenses, losses,
damages or liabilities incurred or sustained by the existing or former Director (including alternate Director), Secretary or Officer
in or about the conduct of the Company's business or affairs or in the execution or discharge of the existing or former Director's (including
alternate Director's), Secretary's or Officer's duties, powers, authorities or discretions; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) without limitation to paragraph (a), all costs, expenses,
losses or liabilities incurred by the existing or former Director (including alternate Director), Secretary or Officer in defending (whether
successfully or otherwise) any civil, criminal, administrative or investigative proceedings (whether threatened, pending or completed)
concerning the Company or its affairs in any court or tribunal, whether in the Cayman Islands or elsewhere.

No such existing or former Director (including alternate Director), Secretary or Officer, however, shall be indemnified in respect of any matter arising out of his own dishonesty, willful default or fraud.

To the extent permitted by Companies Act (Revised) of the Cayman Islands, the Company may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by an existing or former Director (including alternate Director), Secretary or Officer of the Company in respect of any matter identified above on condition that the Director (including alternate Director), Secretary or Officer must repay the amount paid by the Company to the extent that it is ultimately found not liable to indemnify the Director (including alternate Director), Secretary or that Officer for those legal costs.

**Item 15. Recent Sales of Unregistered Securities**

We have not sold any securities, registered or otherwise, within the past three years, other that the Ordinary Shares to be issued to Bit Digital in connection with the Reorganization.

**ITEM 16. EXHIBITS AND FINANCIAL Statement SCHEDULES**

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Exhibit Description** |
| 1.1 | [Form of Underwriting Agreement](ea024838201ex1-1_white.htm) |
| 2.1 | [Form of Section 351 Contribution Agreement](ea024838201ex2-1_white.htm) |
| 3.1 | [Certificate of Incorporation, as amended](ea024838201ex3-1_white.htm) |
| 3.2 | [Form of Amended and Restated Memorandum and Articles of Association of WhiteFiber, Inc.](ea024838201ex3-2_white.htm) |
| 5.1 | [Form of Opinion of Ogier (Cayman) LLP as to Legality of Shares](ea024838201ex5-1_white.htm) |
| 8.1 | [Opinion of Davidoff Hutcher & Citron LLP as to U.S. tax matters](ea024838201ex8-1_white.htm) |
| 10.1+ | [WhiteFiber, Inc. 2025 Omnibus Equity Incentive Plan](ea024838201ex10-1_white.htm) |
| 10.2 | [Form of Transition Services Agreement with Bit Digital, Inc.](ea024838201ex10-2_white.htm) |
| 10.3 | [Lease dated March 16, 2020 by and between Bedford Storage Limited Partnership and NWorks Management Corp.](ea024838201ex10-3_white.htm) |
| 10.4 | [First Amendment dated as of February 1, 2021, Second Amendment dated as of March 25, 2022 and Landlord's Consent to Assign Lease dated March 12, 2024](ea024838201ex10-4_white.htm) |
| 10.5†# | [Omnibus Amendment to and Novation of Master Services Agreement and Purchase Order dated of December 12, 2023 with the Issuer's initial cloud service customer](ea024838201ex10-5_white.htm) |
| 10.6# | [Master Services Agreement and Purchase Order dated of November 9, 2023 with the Issuer's initial cloud service customer.](ea024838201ex10-6_white.htm) |
| 10.7† | [Agreement of Purchase and Sale of 7330 Trans-Canada Highway, Point-Claire, Quebec, Canada,](ea024838201ex10-7_white.htm) |
| 10.8+ | [Employment Agreement dated as of March 31, 2021 by and between Bit Digital, Inc. and Sam Tabar, as amended as of January 1, 2022 and as of March 31, 2023.](ea024838201ex10-8_white.htm) |
| 10.9+ | [Employment Agreement dated as of October 28, 2022 by and between Bit Digital, Inc. and Erke Huang as amended on March 10, 2023](ea024838201ex10-9_white.htm) |
| 10.10†# | [Share Purchase Agreement dated October 11, 2024, by and among the Sellers, certain affiliates of the Sellers, the Sellers' Representatives and 16428380 Canada Inc.(1)](https://www.sec.gov/Archives/edgar/data/1710350/000121390024088517/ea021782701ex10-1_bitdigital.htm) |
| 10.11+ | [Employment Agreement dated as of February 14, 2022 by and between Enovum Data Centers Corp. and Billy Krassakopoulos](ea024838201ex10-11_white.htm) |
| 10.12+ | [Employment Agreement dated as of September 13, 2024 by and between Thomas SanFilippo and Bit Digital Inc.](ea024838201ex10-12_white.htm) |
| 10.13 | [MTL-3 Lease agreement dated April 10, 2025(2)](https://www.sec.gov/Archives/edgar/data/1710350/000121390025032132/ea023804201ex10-1_bitdigital.htm) |
| 10.14† | [Purchase Agreement dated as of April 10, 2025, by and between Enovum Data Centers and Unifi Manufacturing, Inc.(3)](https://www.sec.gov/Archives/edgar/data/1710350/000121390025032598/ea023841901ex10-1_bitdigi.htm) |
| 10.15+ | [Director Agreement dated as of April 15, 2025, by and between WhiteFiber, Inc. and David Andre.](ea024838201ex10-15_white.htm) |
| 10.16+ | [Director Agreement dated as of May 5, 2025, by and between WhiteFiber, Inc. and Pruitt Hall.](ea024838201ex10-16_white.htm) |
| 10.17+ | [Director Agreement dated as of May 14, 2025 by and between WhiteFiber, Inc. and Erke Huang.](ea024838201ex10-17_white.htm) |
| 10.18+ | [Director Agreement dated as of May 30, 2025 by and between WhiteFiber, Inc. and Ichi Shih.](ea024838201ex10-18_white.htm) |
| 10.19+ | [Director Agreement dated as of June 4, 2025 by and between WhiteFiber, Inc. and Juishi (Bill) Xiong.](ea024838201ex10-19_white.htm) |
| 10.20† | [Master Service Agreement dated January 18, 2025, by and between Enovum Data Centers Corp. and Cerebras Wafer Scale UCC.](ea024838201ex10-20_white.htm) |
| 10.21† | [Master Service Agreement effective as December 11, 2024, by and between Bit Digital Iceland ehf and Coral Ventures Fund XII.](ea024838201ex10-21_white.htm) |
| 10.22 | [Capacity Agreement from Duke Energy Carolinas, LLC](ea024838201ex10-22_white.htm) |
| 10.23# | [Credit Facilities dated June 18, 2025 among Enovum Data Centers Corp and its subsidiaries and the Royal Bank of Canada.](ea024838201ex10-23_white.htm) |
| 10.24† | [Amendment to Real Estate Purchase and Sale Agreement dated as of May 19, 2025 between Enovum Data Centers Corp and Unifi Inc. for NC-1.](ea024838201ex10-24_white.htm) |
| 10.25 | [Master Services and Lease Agreement dated October 9, 2024, by and between Bit Digital HPC, Inc. and Boosteroid, Inc.](ea024838201ex10-25_white.htm) |
| 21.1 | [List of Subsidiaries](ea024838201ex21-1_white.htm) |
| 23.1 | [Consent of Audit Alliance LLP for WhiteFiber Inc](ea024838201ex23-1_white.htm) |
| 23.2 | [Consent of Audit Alliance LLP for Enovum Data Centers Group](ea024838201ex23-2_white.htm) |
| 23.3 | [Consent of Ogier (Cayman) LLP (included in Exhibit 5.1)](ea024838201ex5-1_white.htm) |
| 23.4 | [Consent of Davidoff Hutcher & Citron LLP (included in Exhibit 8.1)](ea024838201ex8-1_white.htm) |
| 24.1 | [Power of Attorney (included on the signature page to this Registration Statement)](#c_030) |
| 99.1 | [Consent of David Andre](ea024838201ex99-1_white.htm) |
| 99.2 | [Audited Financial Statements of Enovum Data Centers Corp.](ea024838201ex99-2_white.htm) |
| 99.3 | [Consent of Pruitt Hall](ea024838201ex99-3_white.htm) |
| 107 | [Filing Fee Table](ea024838201ex-fee_white.htm) |

---

---

| |
|:---|
| Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(b)(5). The Registrant agrees to furnish supplementally a copy of all omitted exhibits and schedules to the Securities and Exchange Commission upon its request. |
| The Registrant has redacted provisions or terms of this exhibit pursuant to Regulation S-K Item 601(b)(10)(iv). While portions of the exhibit have been redacted, this exhibit includes a prominent statement on the first page of the exhibit that certain identified information has been excluded from the exhibit because it is both not material and is the type that the Registrant treats as private or confidential. The Registrant agrees to furnish an unredacted copy of the exhibit to the SEC upon its request. |
| Indicates management contract or compensatory plan. |

---

(1) Incorporated by reference to
Exhibit 10.1 Bit Digital, Inc.'s report of foreign private issuer on Form 6-K filed with the SEC on October 17, 2024.

(2) Incorporated by reference to
Exhibit 10.1 to Bit Digital, Inc.'s current report on Form 8-K filed with the SEC on April 15, 2025.

(3) Incorporated by reference to
Exhibit 10.1 to Bit Digital, Inc.'s current report on Form 8-K filed with the SEC on April 16, 2025.

**Item 17. Undertakings**

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 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, 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 Act 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 of 1933, 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 of 1933, 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.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized on the 11th day of July, 2025.

---

| | |
|:---|:---|
| **WHITEFIBER, INC.** | **WHITEFIBER, INC.** |
| By: | /s/ Sam Tabar |
| Name: | Sam Tabar |
| Title: | Chief Executive Officer |

---

We the undersigned officers and directors of WhiteFiber, Inc., hereby severally constitute and appoint Sam Tabar and Erke Huang (with full power to each of them act alone), our true and lawful attorney-in-fact and agents, with full power of substitution and re-substitution, for us and in our stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) and any amendments that may relate to any registration statement for this offering that is to be effective upon filing pursuant to Rule 462(b) under the Securities Act to this Registration Statement and all documents relating thereto, and to file the same, with all exhibits hereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them full power and authority to do and perform each and every act and thing necessary or advisable to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, herby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their substitute or substitutes may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Sam Tabar | Chief Executive Officer | July 11, 2025 |
| Sam Tabar | *(Principal Executive Officer)* |  |
| /s/ Erke Huang | Chief Financial Officer and Director | July 11, 2025 |
| Erke Huang | *(Principal Financial and Accounting Officer)* |  |
| /s/ Ichi Shih | Director | July 11, 2025 |
| Ichi Shih |  |  |
| /s/ Jiashu Xiong | Director | July 11, 2025 |
| Jiashu ("Bill") Xiong |  |  |

---

## Exhibit 1.1

**Exhibit 1.1**

**WhiteFiber, Inc.**

**Ordinary Shares**

**UNDERWRITING AGREEMENT**

[●], 2025

B. Riley Securities, Inc.

Needham & Company, LLC

as Representatives of the<br> several Underwriters

c/o B. Riley Securities, Inc.

1300 17<sup>th</sup> St. N, Suite 1300

Arlington, VA 22209

c/o Needham & Company, LLC

250 Park Avenue

New York, NY 10177

Ladies and Gentlemen:

WhiteFiber, Inc., an exempted company incorporated under the laws of the Cayman Islands (the "**Company**"), confirms its agreement with each of the Underwriters listed on <u>Schedule I</u> hereto (collectively, the "**Underwriters**"), for whom B. Riley Securities, Inc. ("**B. Riley**") and Needham & Company, LLC are acting as representatives (in such capacity, the "**Representatives**"), with respect to (i) the sale by the Company of [●] ordinary shares, par value of US$0.01 each (the "**Initial Ordinary Shares**"), of the Company (the "**Ordinary Shares**"), and the purchase by the Underwriters, acting severally and not jointly, of the respective number of Ordinary Shares set forth opposite the names of the Underwriters in <u>Schedule I</u> hereto, and (ii) the grant of the option described in <u>Section 1(b)</u> hereof to purchase all or any part of [●] additional Ordinary Shares (the "**Additional Ordinary Shares**") from the Company to the Underwriters, acting severally and not jointly, in the respective numbers of Ordinary Shares set forth opposite the names of each of the Underwriters listed in <u>Schedule I</u> hereto. The Initial Ordinary Shares to be purchased by the Underwriters and the Additional Ordinary Shares, if and to the extent such option described in <u>Section 1(b)</u> hereof is exercised are hereinafter called, collectively, the "**Shares**."

The Company understands that the Underwriters propose to make a public offering of the Shares as soon as the Underwriters deem advisable after this Underwriting Agreement (the "**Agreement**") has been executed and delivered.

The Company has prepared and filed with the Securities and Exchange Commission (the "**Commission**") a registration statement on Form S-1 (No. 333-[●]), including a related preliminary prospectus, for the registration of the Shares under the Securities Act of 1933, as amended, and the rules and regulations thereunder (collectively, the "**Securities Act**"). The Company has prepared and filed such amendments to the registration statement and such amendments or supplements to the related preliminary prospectus as may have been required to the date hereof, and will file such additional amendments or supplements as may hereafter be required. The registration statement has been declared effective under the Securities Act by the Commission. The registration statement, as amended at the time it was declared effective by the Commission (and, if the Company files a post-effective amendment to such registration statement that becomes effective prior to the Closing Time (as defined below), such registration statement as so amended) and including all information deemed to be a part of the registration statement pursuant to incorporation by reference, Rule 430A of the Securities Act or otherwise, is hereinafter called the "**Registration Statement**." Any registration statement filed pursuant to Rule 462(b) of the Securities Act is hereinafter called the "**Rule 462(b) Registration Statement**," and after such filing, the term "**Registration Statement**" shall include the Rule 462(b) Registration Statement. Each prospectus describing the Shares and the offering thereof included in the Registration Statement before it was declared effective by the Commission under the Securities Act, and any preliminary form of prospectus filed with the Commission by the Company with the consent of the Underwriters pursuant to Rule 424(a) of the Securities Act, including all information incorporated by reference in either such prospectus, is hereinafter called the "**Preliminary Prospectus**." The term "**Prospectus**" means the final prospectus, as first filed with the Commission pursuant to paragraph (1) or (4) of Rule 424(b) of the Securities Act, and any amendments thereof or supplements thereto including all information incorporated by reference therein.

The Commission has not issued any order preventing or suspending the use of any Preliminary Prospectus.

The term "**Disclosure Package**" means (i) the Preliminary Prospectus, as most recently amended or supplemented immediately prior to the Initial Sale Time (as defined herein), (ii) the Issuer Free Writing Prospectuses (as defined below), if any, identified in <u>Schedule II</u> hereto, (iii) the pricing information set forth on <u>Schedule III</u> hereto, and (iv) any other Free Writing Prospectus (as defined below) that the parties hereto shall hereafter expressly agree to treat as part of the Disclosure Package.

The term "**Issuer Free Writing Prospectus**" means any issuer free writing prospectus, as defined in Rule 433 of the Securities Act. The term "**Free Writing Prospectus**" means any free writing prospectus, as defined in Rule 405 of the Securities Act.

The term "**Transition Documents**" means (i) the Section 351 Contribution Agreement, and (ii) the Transition Services Agreement described under the heading "Certain Relationships and Related Party Transactions" in the Registration Statement, the Disclosure Package and the Prospectus.

The term "**Reorganization**" means the transfer of 100% of the capital shares of WhiteFiber AI, Inc. to the Company upon the initial effective date of the Registration Statement pursuant to the terms of the Transition Documents.

The Company and the Underwriters agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Sale and Purchase</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) *Initial Ordinary Shares.* Upon the basis of the representations and warranties and other terms and conditions and agreements herein set forth, at the purchase price per Ordinary Share of $[**●**], the Company agrees to sell, issue and allot to each Underwriter, and each Underwriter, severally and not jointly, agrees to purchase and subscribe for from the Company, that number of Initial Ordinary Shares set forth in <u>Schedule I</u> opposite such Underwriter's name, plus any additional number of Initial Ordinary Shares which such Underwriter may become obligated to purchase pursuant to the provisions of <u>Section 8</u> hereof, subject in each case, to such adjustments among the Underwriters as the Representatives in their sole discretion shall make to eliminate any sales or purchases of fractional 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;(b) *Additional Ordinary Shares*. In addition, upon the basis of the representations and warranties and other terms and conditions and agreements herein set forth, at the purchase price per Ordinary Share set forth in paragraph (a) above less an amount equal to any dividend or distribution payable on Initial Ordinary Shares that is not also payable on the Additional Ordinary Shares, the Company hereby grants an option to the Underwriters, acting severally and not jointly, to purchase and subscribe for from the Company, all or any part of the Additional Ordinary Shares, plus any additional number of Additional Ordinary Shares which such Underwriter may become obligated to purchase pursuant to the provisions of <u>Section 8</u> hereof. The option hereby granted will expire 30 days after the date hereof and may be exercised in whole or in part from time to time upon notice by the Representatives to the Company, which may be given at any time within 30 days from the date of the Prospectus, setting forth the number of Additional Ordinary Shares as to which the several Underwriters are then exercising the option and the time and date of payment and delivery for such Additional Ordinary Shares. Any such time and date of delivery (an "**Option Closing Time**") shall be determined by the Representatives, but shall not be later than five full business days (or earlier, without the consent of the Company, than two full business days) after the exercise of such option, nor in any event prior to the Closing Time, as hereinafter defined. If the option is exercised as to all or any portion of the Additional Ordinary Shares, the Company will sell, issue and allot that number of Additional Ordinary Shares then being purchased and each of the Underwriters, acting severally and not jointly, will purchase and subscribe for that proportion of the total number of Additional Ordinary Shares then being purchased which the number of Initial Ordinary Shares set forth in <u>Schedule I</u> opposite the name of such Underwriter bears to the total number of Initial Ordinary Shares, subject in each case to such adjustments among the Underwriters as the Representatives in their sole discretion shall make to eliminate any sales or purchases of fractional shares. The Representatives may cancel the option at any time prior to its expiration by giving written notice of such cancellation to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment and Delivery</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Initial Ordinary Shares*. The Initial Ordinary Shares to be purchased and subscribed for by each Underwriter hereunder, in definitive form, and in such authorized denominations and registered in such names as the Representatives may request upon at least 48 hours' prior notice to the Company shall be delivered by or on behalf of the Company to the Representatives, including, at the option of the Representatives, through the facilities of The Depository Trust Company ("**DTC**") for the account of such Underwriter, against payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified to the Representatives by the Company upon at least 48 hours' prior notice. The time and date of such delivery and payment shall be 9:30 a.m., New York City time, on the second (third, if the determination of the purchase price of the Initial Ordinary Shares occurs after 4:30 p.m., New York City time) business day after the date hereof (unless another time and date shall be agreed to by the Representatives and the Company). The time and date at which such delivery and payment are actually made is hereinafter called the "**Closing 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) *Additional Ordinary Shares*. Any Additional Ordinary Shares to be purchased and subscribed for by each Underwriter hereunder, in definitive form, and in such authorized denominations and registered in such names as the Representatives may request upon at least 48 hours' prior notice to the Company shall be delivered by or on behalf of the Company to the Representatives, including, at the option of the Representatives, through the facilities of DTC for the account of such Underwriter, against payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified to the Representatives by the Company upon at least 48 hours' prior notice. The time and date of such delivery and payment shall be 9:30 a.m., New York City time, on the date specified by the Representatives in the notice given by the Representatives to the Company of the Underwriters' election to purchase such Additional Ordinary Shares or on such other time and date as the Company and the Representatives may agree upon in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties of the Company</u>:

The Company represents and warrants to each of the Underwriters as of the date hereof, the Initial Sale Time (as defined below), as of the Closing Time and as of any Option Closing Time (if any), and agrees with each Underwriter, 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;(a) Each Transition Document has been duly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally, and by general equitable principles. There have been no amendments, alterations, modifications or waivers of any of the provisions of any of the Transition Documents since their date of execution, and to the Company's knowledge, there exists no event or condition that would constitute a default or event of default under any of the Transition 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;(b) the Company has the authorized share capital as set forth in the Registration Statement, the Disclosure Package and the Prospectus; and the issued and outstanding Shares of the Company have been duly and validly authorized and issued, are fully paid and non-assessable, and are as set forth in the Registration Statement, the Disclosure Package and the Prospectus under the caption "Capitalization" (other than for subsequent issuances, if any, pursuant to employee benefit plans, or upon the exercise of outstanding options or warrants, in each case described in the Registration Statement, the Disclosure Package and the Prospectus). None of the outstanding Shares of the Company were issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. The descriptions of the Company's stock or share option, stock or share bonus and other stock or share plans or arrangements, and the options or other rights granted thereunder, set forth in the Registration Statement, the Disclosure Package and the Prospectus accurately and fairly present, in all material respects, the information required to be shown with respect to such plans, arrangements, options and rights. All of the outstanding share capital, shares of capital stock, partnership interests and membership interests, as the case may be, of the Subsidiaries (as defined below) have been duly authorized and are validly issued, fully paid and non-assessable securities thereof and, except as disclosed in each of the Registration Statement, the Disclosure Package and the Prospectus, all of the issued and outstanding share capital, shares of capital stock, partnership interest or membership interests, as the case may be, of the Subsidiaries are directly or indirectly owned of record and beneficially by the Company, free and clear of any pledge, mortgage, charge, lien, encumbrance, security interest or other claim. Except as disclosed in each of the Registration Statement, the Disclosure Package and the Prospectus, there are no issued and outstanding (i) securities or obligations of the Company or any of the Subsidiaries convertible into or exchangeable for any share capital or capital stock of the Company or any such Subsidiary, (ii) warrants, options, preemptive rights, rights of first refusal or other rights to subscribe for or purchase from the Company or any such Subsidiary any such share capital or capital stock or any such convertible or exchangeable securities or obligations, or (iii) obligations of the Company or any such Subsidiary to issue any shares, shares of capital stock, any such convertible or exchangeable securities or obligation, or any such warrants, rights or options; and none of the outstanding interests of any of the Subsidiaries, if any, were issued in violation of the preemptive or similar rights of any securityholder of such Subsidiary;

&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 of the Company and the subsidiaries named in Exhibit 21 to the Registration Statement (which are the only significant subsidiaries as defined in Rule 1-02 of Regulation S-X of the Company) (the "**Subsidiaries**") has been duly incorporated, formed or organized and is validly existing as a corporation or limited liability company in good standing under the laws of its respective jurisdiction of incorporation, formation or organization, as applicable, with full power and authority to own, lease, and operate its respective properties and to conduct its respective businesses as described in each of the Registration Statement, the Disclosure Package and the Prospectus, and, in the case of the Company, to execute and deliver this Agreement and to consummate the transactions contemplated herein; and no Subsidiary is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with respect to such Subsidiary's share capital, capital stock or from repaying to the Company or any other Subsidiary any amounts which may from time to time become due under any loans or advances to such Subsidiary from the Company or such other Subsidiary, or from transferring any such Subsidiary's property or assets to the Company or to any other Subsidiary;

&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 and all of the Subsidiaries are duly qualified or licensed to transact business and are in good standing in each jurisdiction in which they conduct their respective businesses or in which they own or lease real property, except where the failure, individually or in the aggregate, to be so qualified or licensed would not have a material adverse effect on the (i) assets, liabilities, business, operations, earnings, operating results, prospects, properties or condition (financial or otherwise), present or prospective, of the Company and the Subsidiaries taken as a whole, or (ii) the ability of the Company to consummate the transactions contemplated by this Agreement or perform its obligations hereunder (any such effect or change referred to in subclause (i) or (ii), where the context so requires, is hereinafter called a "**Material Adverse Effect**" or a "**Material Adverse Change**"); and except as disclosed in each of the Registration Statement, the Disclosure Package, and the Prospectus, (i) the Company and its Subsidiaries have not incurred any material liability or obligation, indirect, direct or contingent, including without limitation any losses or interference with their business from fire, explosion, flood, earthquakes, accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute or court or governmental action, order or decree, that are material, individually or in the aggregate, to the Company and its Subsidiaries, taken as a whole; (ii) the Company and its Subsidiaries have not entered into any transactions or agreements (whether or not in the ordinary course of business) that is material to the Company and its Subsidiaries; (iii) there has not been any material change in the share capital or capital stock or any material increase in any short-term or long-term indebtedness of the Company or its Subsidiaries; (iv) there has not been any dividend or distribution of any kind declared, paid or made by the Company on any class of its share capital; and (v) the Company has not acquired, directly or indirectly, any share capital, capital stock or other equity securities of any other company, corporation or any ownership interest in any partnership, joint venture or other association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Company and the Subsidiaries have at all times been, and currently are, in compliance in all material respects with all applicable laws, rules, regulations, orders, decrees and judgments, including those relating to transactions with 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) neither the Company nor any Subsidiary is in breach or violation of or in default under (nor has any event occurred which with notice, lapse of time, or both would constitute a breach or violation of, or default under) (i) its respective charter, bylaws, limited partnership agreement, operating agreement or other similar organizational documents (the "**organizational documents**"); (ii) the performance or observance of any obligation, agreement, covenant or condition contained in any contract, lease, license, indenture, mortgage, deed of trust, loan, note or credit agreement or other agreement or instrument to which the Company or any Subsidiary is a party or by which any of them or their respective properties is bound; or (iii) any federal, state, local or foreign law, regulation or rule or any decree, judgment, permit or order (each, a "**Law**") applicable to the Company, except, in the case of clauses (ii) and (iii) above, for such breaches, violations or defaults that would not, individually or in the aggregate, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the execution, delivery and performance of this Agreement, and consummation of the transactions contemplated herein and in the Registration Statement, the Disclosure Package and the Prospectus and the issuance and sale of the Shares (including the use of proceeds from the sale of the Shares as described in the Registration Statement, the Disclosure Package and the Prospectus under the caption "Use of Proceeds") and the compliance by the Company with its obligations hereunder, have been duly authorized by all necessary corporate action and do not and will not (i) conflict with, or result in any breach or violation of, or constitute a default or any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder's behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its Subsidiaries (a "**Repayment Event**") under (nor constitute any event which with notice, lapse of time, or both would constitute a breach or violation of, or default or a Repayment Event under), (A) any provision of the organizational documents of the Company or any Subsidiary, or (B) any provision of any license, indenture, mortgage, deed of trust, loan, note or credit agreement or other agreement or instrument to which the Company or any Subsidiary is a party or by which any of them or their respective properties may be bound or affected, or under any federal, state, local or foreign law, regulation or rule or any decree, judgment, writ or order applicable to the Company or any Subsidiary, except in the case of this clause (B) for such breaches, violations or defaults that would not, individually or in the aggregate, have a Material Adverse Effect; or (ii) result in the creation or imposition of any lien, charge, claim or encumbrance upon any property or asset of the Company or any Subsidiary, except for liens, charges, claims or encumbrances that would not, individually or in the aggregate, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) this Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally, and by general equitable principles, and except to the extent that the indemnification and contribution provisions of <u>Section 9</u> hereof may be limited by federal or state securities laws and public policy considerations in respect 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;(i) no approval, authorization, consent or order of or filing with any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency is required in connection with the Company's execution, delivery and performance of this Agreement, its consummation of the transactions contemplated herein and in the Registration Statement, the Disclosure Package and the Prospectus, and its sale and delivery of the Shares, and the compliance by the Company with its obligations hereunder, other than (i) such as have been obtained, under the Securities Act and the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively, the "**Exchange Act**"); (ii) such approvals as have been obtained in connection with the approval of the quotation of the Shares on the Nasdaq Stock Market ("**Nasdaq**"); and (iii) any necessary qualification under the securities or blue sky laws of the various jurisdictions in which the Shares are being offered by the Underwriters or by the rules of the Financial Industry Regulatory Authority, Inc. ("**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;(j) each of the Company and the Subsidiaries has all necessary permits, licenses, authorizations, consents and approvals (the "**Permits**") and has made all necessary filings required under any federal, state, local or foreign law, regulation or rule, and has obtained all necessary authorizations, consents and approvals from other persons, required to conduct their respective businesses as described in each of the Registration Statement, the Disclosure Package and the Prospectus, except to the extent that any failure to have any such Permits, to make any such filings or to obtain any such authorizations, consents or approvals would not, individually or in the aggregate, have a Material Adverse Effect; except as described in each of the Registration Statement, the Disclosure Package and the Prospectus, neither the Company nor any of the Subsidiaries is required by any applicable law to obtain accreditation or certification from any governmental agency or authority to provide the products and services which it currently provides or which it proposes to provide as set forth in each of the Registration Statement, the Disclosure Package and the Prospectus; and the Company or any of the Subsidiaries is in compliance with, and is not in violation of, in default under, or has received any notice regarding a possible violation, default, modification or revocation of, any such Permit or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any of the Subsidiaries, the effect of which, individually or in the aggregate, would result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each of the Registration Statement, any Rule 462(b) Registration Statement and any post-effective amendment thereto has become effective under the Securities Act, and no stop order suspending the effectiveness of the Registration Statement, any Rule 462(b) Registration Statement or any post-effective amendment thereto has been issued under the Securities Act and no proceedings for that purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened by the Commission; the Company is not the subject of a proceeding under Section 8A of the Securities Act in connection with the offering of the Shares; and the Company has complied, to the Commission's satisfaction, with any request on the part of the Commission for additional or supplemental 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;(l) the Preliminary Prospectus and Prospectus, each when filed, and the Registration Statement as of the effective date and as of the date hereof, and any further amendments or supplements to the Preliminary Prospectus or the Prospectus complied with or will comply, when they become effective or are filed with the Commission, as the case may be, in all material respects with the requirements of 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;(m) each of the Registration Statement, any Rule 462(b) Registration Statement, and any post-effective amendments thereto, as of its respective effective date and as of the date hereof, did not, does not and will not contain an 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 not misleading; and the Preliminary Prospectus (including any wrapper thereof) does not, and the Prospectus or any amendment or supplement thereto (including any wrapper thereof) will not, as of the applicable filing date, the date hereof and at the Closing Time and on each Option Closing Time (if any), contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no warranty or representation with respect to any statement contained in or omitted from the Registration Statement, the Preliminary Prospectus or the Prospectus in reliance upon and in conformity with the information concerning the Underwriters furnished in writing by or on behalf of the Underwriters through the Representatives to the Company expressly for use therein (that information being limited to that described in <u>Section 9(b)</u> hereof and referred to hereinafter as the "**Underwriters' 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;(n) as of [●] [a.m.] [p.m.] (Eastern time) on the date of this Agreement (the "**Initial Sale Time**"), the Disclosure Package did not, and at the time of each sale of Shares and at the Closing Time and each Option Closing Time, the Disclosure Package will not, contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; as of its issue date or date of first use and at all subsequent times through the Initial Sale Time, each Issuer Free Writing Prospectus, if any, did not, and at the time of each sale of Shares and at the Closing Time and each Option Closing Time, each such Issuer Free Writing Prospectus will not, contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no warranty or representation with respect to any Underwriters' 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;(o) each Issuer Free Writing Prospectus, if any, as of its issue date and at all subsequent times through the completion of the public offer and sale of the Shares did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement, the Preliminary Prospectus, or the Prospectus that has not been superseded or modified in any material respect; provided, however, that the Company makes no warranty or representation with respect to any Underwriters' 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;(p) prior to the execution of this Agreement, the Company has not, directly or indirectly, offered or sold any Shares by means of any "prospectus" (within the meaning of the Securities Act) or used any "prospectus" (within the meaning of the Securities Act) in connection with the offer or sale of the Shares, in each case other than the Preliminary Prospectus or an Issuer Free Writing Prospectus, if any; the Company has not, directly or indirectly, prepared, used or referred to any Free Writing Prospectus except in compliance with Rules 164 and 433 under the Securities Act; the Company is eligible to use Free Writing Prospectuses in connection with this offering pursuant to Rules 164 and 433 under the Securities Act; any Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act; the Company was not, is not or will not be (as applicable) an "ineligible issuer" (as defined in Rule 405 under the Securities Act) as of the eligibility determination date for purposes of Rules 164 and 433 under the Securities Act with respect to the offering of the Shares contemplated by the Registration Statement and the Prospectus, without taking into account any determination by the Commission pursuant to Rule 405 under the Securities Act that it is not necessary under the circumstances that the Company be considered an "ineligible issuer"; and each Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used by the Company complies or will comply in all material respects with the requirements of 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;(q) except for the Issuer Free Writing Prospectuses, if any, identified in <u>Schedule II</u> hereto, and any electronic road show relating to the public offering of Shares contemplated herein furnished to you before first use, the Company has not prepared, used or referred to, and will not, without the prior consent of the Representatives, prepare, use or refer to, any Free Writing Prospectus; and each electronic road show, when considered together with the Disclosure Package, did not, as of the Initial Sale Time, contain any untrue statement of a material fact or omit to state a material fact 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;(r) the Preliminary Prospectus, the Prospectus and any Issuer Free Writing Prospectuses (to the extent any such Issuer Free Writing Prospectus was required to be filed with the Commission) delivered to the Underwriters for use in connection with the public offering of the Shares contemplated herein have been and will be identical to the versions of such documents transmitted to the Commission for filing via the Commission's Electronic Data Gathering, Analysis, and Retrieval system **("EDGAR**")**,** except to the extent permitted by Regulation S-T;

&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) the Company filed the Registration Statement with the Commission before using any Issuer Free Writing Prospectus; and each Issuer Free Writing Prospectus was preceded or accompanied by the most recent Preliminary Prospectus satisfying the requirements of Section 10 under the Securities Act, which Preliminary Prospectus included an estimated price range;

&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) the initial confidential submission by the Company of the Registration Statement relating to the Shares with the Commission complied with the confidential submission policy of the Division of Corporation Finance of the Commission announced June 29, 2017; from the time of the initial confidential submission of the Registration Statement relating to the Shares with the Commission (or, if earlier, the first date on which the Company has engaged in any oral or written communication made in reliance upon Section 5(d) of the Securities Act or Rule 163B under the Securities Act (each, a "**Testing-the-Waters Communication**")) through the date hereof, the Company has been and is an "emerging growth company" as defined in Section 2(a)(19) of the Securities Act (an "**Emerging Growth Company**"). The Company (i) has not engaged in any Testing-the-Waters Communication other than Testing-the-Waters Communications with the consent of the Representatives with entities that are reasonably believed to be "qualified institutional buyers" within the meaning of Rule 144A under the Securities Act or institutions that are "accredited investors" within the meaning of Rule 501 under the Securities Act; (ii) has not authorized anyone other than the Representatives to engage in Testing-the-Waters Communication; and (iii) reconfirms that the Representatives has been authorized to act on the Company's behalf in undertaking materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Shares, including any roadshow or investor presentations made to investors by the Company (whether in person or electronically) ("**Marketing Materials**") or Testing-the-Waters Communications. As of its issue date or date of first use and at all subsequent times through the Initial Sale Time, each of the Testing-the-Waters Communications and the Marketing Materials, if any, when considered together with the Disclosure Package, did not, and at the time of each sale of Shares and at the Closing Time and each Option Closing Time will not, include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and does not, as of the date hereof, conflict with the information contained in the Registration Statement, the Preliminary Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) there are no actions, suits, proceedings, inquiries or investigations pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any of their respective officers, directors or director nominees or to which the properties, assets or rights of any such entity are subject, at law or in equity, before or by any federal, state, local or foreign governmental or regulatory commission, board, body, authority, arbitral panel or agency which, individually or in the aggregate, would reasonably be likely to result in a judgement, decree, award or order having a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the financial statements, including the notes thereto, included in (or incorporated by reference into) each of the Registration Statement, the Disclosure Package, and the Prospectus present fairly in all material respects the consolidated financial position of the entities to which such financial statements relate (the "**Covered Entities**") as of the dates indicated and the consolidated results of operations and changes in financial position and cash flows of the Covered Entities for the periods specified; such financial statements have been prepared in conformity with generally accepted accounting principles as applied in the United States ("**GAAP**") and on a consistent basis throughout the periods involved, except as may be expressly stated in the related notes thereto, and in accordance with Regulation S-X promulgated by the Commission; the financial statement schedules included in (or incorporated by reference into) the Registration Statement and the amounts in both the Disclosure Package and the Prospectus under the captions "Summary Historical and Pro Forma Combined Financial and Operating Data," and "Capitalization" have been compiled on a basis consistent with the financial statements included in each of the Registration Statement, the Disclosure Package and the Prospectus; the information contained in the Disclosure Package and the Prospectus under the caption "Unaudited Pro Forma Condensed Combined Financial Statements" presents fairly in all material respects the information shown therein and complies with the requirements of Article 11 of Regulation S-X under the Securities Act; no other financial statements or supporting schedules are required to be included in the Registration Statement, the Disclosure Package or the Prospectus; the unaudited pro forma financial information (including the related notes) included in each of the Registration Statement, the Disclosure Package and the Prospectus complies as to form in all material respects with the applicable accounting requirements of the Securities Act; the assumptions underlying the pro forma adjustments are reasonable and appropriate to give effect to the transactions and circumstances referred to therein; such pro forma adjustments have been properly applied to the historical amounts in the compilation of the information; and such information fairly presents with respect to the Company and the Subsidiaries, the financial position, results of operations and other information purported to be shown therein at the respective dates and for the respective periods specified; and no other pro forma financial information is required to be included in (or incorporated by reference into) the Registration Statement the Disclosure Package and the Prospectus; the Company and its Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Registration Statement (excluding the exhibits thereto), the Disclosure Package and the Prospectus; and all disclosures contained in the Registration Statement, the Disclosure Package and the Prospectus that constitute non-GAAP financial measures (as defined by the rules and regulations under the Securities Act and the Exchange Act) comply with Regulation G under the Exchange Act and Item 10 of Regulation S-K under the Securities Act, 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;(w) Audit Alliance LLP, whose reports on (i) the combined financial statements (including the notes and schedules thereto) of the Company and its combined subsidiaries and (ii) Enovum Data Centers Corp. ("**Enovum**") and its subsidiaries are filed with the Commission as part of each of the Registration Statement, the Disclosure Package and the Prospectus or are incorporated by reference therein, and any other accounting firm that has certified any such financial statements and delivered its reports with respect thereto, are, and were during the periods covered by their reports, (i) independent public accountants as required by the Securities Act and the rules of the Public Company Accounting Oversight Board (the "**PCAOB**"); (ii) in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X under the Securities Act; and (iii) a registered public accounting firm as defined by the PCAOB whose registration has not been suspended or revoked and who has not requested such registration to be withdrawn; and to the Company's knowledge, no person who has been suspended or barred from being associated with a registered public accounting firm, or who has failed to comply with any sanction pursuant to Rule 5300 promulgated by the PCAOB, has participated in or otherwise aided the preparation of, or audited, the financial statements, supporting schedules or other financial data filed with the Commission as a part of the Registration Statement, the Disclosure Package and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the Shares conform in all material respects to the description thereof contained in the Registration Statement, the Disclosure Package and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) except as disclosed in each of the Registration Statement, the Disclosure Package and the Prospectus, there are no persons with registration or other similar rights to have any equity or debt securities, including securities which are convertible into or exchangeable for equity securities, registered pursuant to the Registration Statement or otherwise registered by the Company under the Securities Act, except for those registration or similar rights which have been validly waived with respect to the offering contemplated by this Agreement; and all of such registration or similar rights are fairly summarized in all material respects in the Registration Statement, the Disclosure Package and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) the Shares have been duly authorized and, when issued and duly delivered by the Company against payment therefor as contemplated by this Agreement and such issue entered in the Register of Members of the Company, will be validly issued, fully paid and non-assessable, free and clear of any pledge, mortgage, charge, lien, encumbrance, security interest or other claim, and the issuance and sale of the Shares by the Company is not subject to preemptive or other similar rights (whether arising by operation of law, under the organizational documents of the Company or under any agreement to which the Company or any Subsidiary is a party 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;(aa) the Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act and have been approved for listing on Nasdaq, subject to official notice of issuance, and the Company has taken all necessary actions to ensure that, as of the Closing Time and each Option Closing Time, it will be in compliance with all applicable corporate governance requirements set forth in Nasdaq's listing rules then 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;(bb) none of the Company, the Subsidiaries, or any of their respective directors, director nominees, officers, representatives or affiliates has taken, nor will take, directly or indirectly, (i) any action which is designed to or which has constituted or which might reasonably be expected to cause or result in stabilization or manipulation of the price of any security of the Company (including the Shares and any "reference security" (as defined in Rule 100 of Regulation M under the Exchange Act ("**Regulation M**")) with respect to the Shares), whether to facilitate the sale or resale of the Shares or otherwise and (ii) has not taken any action which would directly or indirectly violate Regulation M;

&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) none of the Company or any of the Subsidiaries is required to register as a "broker" or "dealer" in accordance with the provisions of the Exchange Act; and all of the information provided to the Underwriters or to counsel for the Underwriters by the Company and, to the knowledge of the Company, its officers, directors and director nominees and the holders of any securities of the Company in connection with the review of the offering of the Shares by FINRA is true, complete, correct and compliant with FINRA's rules;

&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) the Company has furnished to the Underwriters a letter agreement in the form attached hereto as <u>Exhibit A</u> (the "**Lock-up Agreement**") from each of the persons listed on <u>Exhibit B</u> (each a "**Lock-up 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;(ee) any certificate signed by any director or officer of the Company or any Subsidiary delivered to the Representatives or to counsel for the Underwriters pursuant to or in connection with this Agreement or the offer, issuance, and sale of the Shares hereunder shall be deemed a representation and warranty by the Company to each Underwriter as to the matters 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;(ff) the form of certificate used to evidence the Ordinary Shares complies in all material respects with all applicable statutory requirements, with any applicable requirements of the organizational documents of the Company and the requirements of Nasdaq;

&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) each of the Company and the Subsidiaries have good and marketable title to all real property owned by it, if any, and good and marketable title to all personal property and other assets reflected as owned by them in the financial statements, supporting schedules or other financial data filed with the Commission as a part of the Registration Statement, the Disclosure Package and the Prospectus, in each case free and clear of all liens, security interests, pledges, charges, encumbrances, mortgages, equities, adverse claims and other defects, except such as are disclosed in the Registration Statement, the Disclosure Package and the Prospectus or such as do not materially and adversely affect the value of such property and do not interfere with the use made or proposed to be made of such property by the Company and the Subsidiaries; and any real property, improvements, buildings, equipment and personal property held under lease by the Company or any Subsidiary are held under valid, existing and enforceable leases, with such exceptions as are disclosed in the Registration Statement, the Disclosure Package and the Prospectus or are not material and do not interfere with the use made or proposed to be made of such real property, improvements, buildings, equipment and personal property by the Company or such Subsidiary;

&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) the descriptions in each of the Registration Statement, the Disclosure Package and the Prospectus of the legal or governmental proceedings, contracts, leases and other legal documents therein described present fairly in all material respects the information required to be shown, and there are no legal or governmental proceedings, contracts, leases, or other documents of a character required to be described in the Registration Statement, the Disclosure Package and the Prospectus or to be filed as exhibits thereto which are not described or filed as required; all material agreements between the Company or any of the Subsidiaries and third parties expressly referenced in any of the Registration Statement, the Disclosure Package and the Prospectus are legal, valid and binding obligations of the Company or one or more of the Subsidiaries, enforceable in accordance with their respective terms, except to the extent enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and by general equitable 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;(ii) the Company and each Subsidiary owns or possesses adequate licenses or other rights to use all patents, trademarks, service marks, trade names, copyrights, software and designs, trade secrets, manufacturing processes, other intangible property rights and know-how (collectively "**Intangibles**") necessary to entitle the Company and each Subsidiary to conduct its business as described in the Registration Statement, the Disclosure Package and the Prospectus, and neither the Company nor any Subsidiary has received notice of infringement of or conflict with (and neither the Company nor any Subsidiary knows of any such infringement of or conflict with) asserted rights of others with respect to any Intangibles which would, individually or in the aggregate, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) the Company owns, possesses, licenses or has other rights to use, on reasonable terms, all patents, trade and service marks, trade and service mark registrations, trade names, copyrights, inventions, trade secrets, technology, know-how and other intellectual property (collectively, the "**Intellectual Property**") described in the Registration Statement, Disclosure Package , and Prospectus as being owned or licensed by them or which are reasonably necessary for the conduct of the respective businesses of the Company and its Subsidiaries as now conducted or as proposed in the Registration Statement, the Disclosure Package and the Prospectus to be conducted; the conduct of their respective businesses does not and the Company does not expect it will, infringe, misappropriate or otherwise conflict in any material respect with any Intellectual Property rights of others; and (i) to the Company's knowledge, there is no material infringement by third parties of any such Intellectual Property owned by or exclusively licensed to the Company; (ii) there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the Company's rights in or to any such Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such action, suit, proceeding or claim; (iii) there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of Intellectual Property owned by or exclusively licensed to the Company, and the Company is unaware of any facts which would form a reasonable basis for any such action, suit, proceeding, or claim which would have a Material Adverse Effect; (iv) there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others asserting that the Company infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company is unaware of any other fact which would form a reasonable basis for concluding that any such claim will be asserted, or if asserted, would be successful, or if successfully asserted, would have a Material Adverse Effect; (v) the Company and its Subsidiaries do not in the conduct of their business as now conducted or as proposed to be conducted as described in the Registration Statement, the Disclosure Package, or the Prospectus infringe or conflict with any patent right of any third party, or any discovery, invention, product or process which is the subject of a patent issued to any third party, which such infringement or conflict would result in a Material Adverse Change; (vi) there is no art of which the Company is aware that may render any U.S. patent held by the Company invalid or any U.S. patent application held by the Company unpatentable which has not been disclosed, or will not be disclosed in the required time period, to the U.S. Patent and Trademark Office; (vii) no security interests have been recorded in the U.S. Patent and Trademark Office with respect to any Intellectual Property owned by the Company and no liens have been recorded against the Company with respect to any such Intellectual Property; (viii) the Company has paid or will pay all maintenance and issue fees that are due or will be due, within the required time period, and has claimed small entity status only as appropriate with respect to all Intellectual Property owned by the Company that is the subject of any application or registration with a governmental body or agency; (ix) to the Company's knowledge, there are no material defects in any of the patents or patent applications included in the Intellectual Property owned by the Company or any facts or circumstances which would render any such Intellectual Property invalid or unenforceable; (x) the Company and its Subsidiaries have taken all reasonable steps to protect, maintain and safeguard their Intellectual Property, including the execution of appropriate nondisclosure, confidentiality agreements and invention assignment agreements and invention assignments with their employees, and to the Company's knowledge, no employee of the Company is in or has been in violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement, or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee's employment with the Company; (xi) none of the Company-owned Intellectual Property or technology (including information technology and outsourced arrangements) employed by the Company or its Subsidiaries has been obtained or is being used by the Company or any of its Subsidiaries in violation of any contractual obligation binding on the Company or its Subsidiaries or any of their respective officers, directors, director nominees or employees or otherwise in violation of the rights of any persons; and (xii) the Company and each of its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or any Subsidiary, and all such agreements are in full force and 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;(kk) the Company has established and maintains disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), which (i) are designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to the Company's principal executive officer and its principal financial officer by others within those entities in a timely manner, particularly during the periods in which the periodic reports required under the Exchange Act are being prepared; and (ii) are effective in all material respects to perform the functions for which they were established;

&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) the Company and each of its Subsidiaries makes and keeps accurate books and records and maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; since the end of the Company's most recent audited fiscal year, except as disclosed in each of the Registration Statement, the Disclosure Package and the Prospectus, there have been (A) no significant deficiencies or material weaknesses in the Company's internal control over financial reporting (whether or not remediated) and (B) no change in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and the Company is not aware of (x) any change in its internal control over financial reporting that has occurred during its most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting or (y) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting;

&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) each of the Company and the Subsidiaries has filed or caused to be filed on a timely basis all necessary federal, state, local and foreign income and franchise tax returns required to be filed through the date hereof or have properly requested extensions thereof and have timely paid all taxes shown as due thereon and, if due and payable, any related or similar assessment, fine or penalty levied against any of them except as may be being contested in good faith and by appropriate proceedings and as to which adequate reserves have been provided and will be maintained; and no tax deficiency has been asserted against any such entity, nor does any such entity know of any tax deficiency which is likely to be asserted against any such entity which, if determined adversely to any such entity, would have a Material Adverse Effect; and all tax liabilities, accruals and reserves with respect to any income and corporation tax liability for any years not finally determined are adequately provided for to meet any assessments or re-assessments for additional income tax on the respective books of such entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) each of the Company and its Subsidiaries maintains insurance (issued by insurers of recognized financial responsibility) of the types, in the amounts and with such deductibles and covering such risks generally deemed adequate for their respective businesses and consistent with insurance coverage maintained by similar companies in similar businesses, including, but not limited to, insurance covering real and personal property owned or leased by the Company and the Subsidiaries against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, all of which insurance is in full force and effect; the Company has no reason to believe that it or any of its Subsidiaries will not be able (i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not be expected to result in a Material Adverse Change; and neither the Company nor any of its Subsidiaries has been denied any insurance coverage which it has sought or for which it has applied;

&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) except as would, individually or in the aggregate, result in a Material Adverse Change, (i) neither the Company nor any of its Subsidiaries is in violation, or has received notice of any violation with respect to, any applicable environmental, safety or similar law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative interpretation thereof applicable to the business of the Company or any of its Subsidiaries; (ii) the Company and the Subsidiaries have received all permits, licenses or other approvals required of them under applicable federal and state occupational safety and health and environmental laws and regulations to conduct their respective businesses, and the Company and the Subsidiaries are in compliance with all terms and conditions of any such permit, license or approval; (iii) there are no pending or threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings relating to any applicable environmental, safety or similar laws and regulations against the Company or any of its Subsidiaries; and (iv) there are no events or circumstances that might reasonably be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental body or agency, against or affecting the Company or any of its Subsidiaries relating to any environmental 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;(pp) neither the Company nor any Subsidiary is in violation of or has received notice of any violation with respect to any federal or state law relating to discrimination in the hiring, promotion or pay of employees, nor any applicable federal or state wages and hours law, nor any state law precluding the denial of credit due to the neighborhood in which a property is situated, the violation of any of which would have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) the Company and each of its Subsidiaries and any "employee benefit plan" (as defined under ERISA (as defined below)) established or maintained by the Company, its Subsidiaries or their respective ERISA Affiliates (as defined below) are in compliance in all material respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder ("**ERISA**") and the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder (the "**Code**"), and no such plan is under audit or investigation by any Governmental Authority; no "reportable event" (as defined in ERISA) has occurred or is reasonably likely to occur with respect to any "pension plan" (as defined in ERISA) for which the Company or any of the Subsidiaries or their respective ERISA Affiliates would have any liability; the Company and each of the Subsidiaries and each of their respective ERISA Affiliates have not incurred and are not reasonably likely to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any "pension plan" or (ii) Section 412, 4971, 4975, or 4980B of the Code; and each "pension plan" for which the Company and each of its Subsidiaries and their respective ERISA Affiliates would have any liability, or established or maintained by any such entity that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification; and, for the purposes of this paragraph, "**ERISA Affiliate**" means, with respect to the Company or any of its Subsidiaries, any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Code of which the Company or such Subsidiary is a member;

&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) none of the Company, any of its Subsidiaries, any officer, director, or director nominee purporting to act on behalf of the Company or any of the Subsidiaries or, to the Company's knowledge, any of their respective employees or agents has at any time (i) made any contributions to any candidate for political office, or failed to disclose fully any such contributions, in violation of law; (ii) made any payment to any state, federal or foreign governmental officer or official, or other person charged with similar public or quasi-public duties, in violation of applicable law; (iii) made any payment outside the ordinary course of business to any investment officer or loan broker or person charged with similar duties of any entity to which the Company or any of the Subsidiaries sells or from which the Company or any of the Subsidiaries buys loans or servicing arrangements for the purpose of influencing such agent, officer, broker or person to buy loans or servicing arrangements from or sell loans to the Company or any of the Subsidiaries; or (iv) engaged in any transactions, maintained any bank account or used any corporate funds except for transactions, bank accounts and funds which have been and are reflected in the normally maintained books and records of the Company and the 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;(ss) there are no outstanding loans, extensions of credit or advances or guarantees of indebtedness by the Company or any of the Subsidiaries to or for the benefit of any of the officers, directors or director nominees of the Company or any of the Subsidiaries or any of the immediate family members of such officers, directors or director nominees;

&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) each "forward-looking statement" (as defined by Section 27A of the Securities Act or Section 21E of the Exchange Act) contained in the Registration Statement, the Disclosure Package or the Prospectus, (i) was so included by the Company in good faith and with reasonable basis after due consideration by the Company of the underlying assumptions, estimates and other applicable facts and circumstances, and (ii) is accompanied by meaningful cautionary statements identifying the important factors that would cause actual results to differ materially from those in such forward-looking statements; and no such statement was made with the knowledge of an executive officer or director of the Company that it was false or 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;(uu) all statistical, demographic and market-related data included in the Registration Statement, the Disclosure Package or the Prospectus are based on or derived from sources that the Company believes, after reasonable inquiry, to be reliable and accurate; and to the extent required, the Company has obtained the written consent to the use of such data from such sources;

&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) neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any employee or agent of the Company or any of its Subsidiaries has made any payment of funds of the Company or of any Subsidiary or received or retained any funds in violation of any law, rule or regulation or of a character required to be disclosed in the Registration Statement, the Disclosure Package and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) all securities issued by the Company or any of its Subsidiaries have been issued and sold in compliance with (i) all applicable federal and state securities laws, (ii) the laws of the applicable jurisdiction of incorporation of the issuing entity, and (iii) to the extent applicable to the issuing entity, the requirements of Nasdaq;

&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) neither the Company nor any Subsidiary knows of any violation of any municipal, state or federal law, rule or regulation (including those pertaining to environmental matters) concerning any property owned by the Company or any of the Subsidiaries (the "**Properties**") thereof which would have a Material Adverse Effect; each of the Properties complies with all applicable zoning laws, ordinances, regulations and deed restrictions or other covenants in all material respects and, if and to the extent there is a failure to comply, such failure does not materially impair the value of any of the Properties and will not result in a forfeiture or reversion of title; neither the Company nor any Subsidiary has received from any governmental authority any written notice of any condemnation of or zoning change affecting the Properties or any part thereof, and neither the Company nor any Subsidiary knows of any such condemnation or zoning change which is threatened and which if consummated would have a Material Adverse Effect; and all liens, charges, encumbrances, claims, or restrictions on or affecting the properties and assets (including the Properties) the Company or any of the Subsidiaries that are required to be described in the Registration Statement, the Disclosure Package or Prospectus are disclosed 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;(yy) except as otherwise disclosed in each of the Registration Statement, the Disclosure Package and the Prospectus, (i) neither the Company nor any of its Subsidiaries nor, to the best knowledge of Company, any other owners of the property at any time has at any time, handled, stored, treated, transported, manufactured, spilled, leaked, or discharged, dumped, transferred or otherwise disposed of or dealt with, Hazardous Materials (as hereinafter defined) on, to or from the Properties, other than by any such action taken in compliance with all applicable Environmental Statutes or by the Company, any of its Subsidiaries in connection with the ordinary use of residential, retail or commercial properties owned by the Company and its Subsidiaries; (ii) the Company does not intend to use the Properties or any subsequently acquired properties for the purpose of handling, storing, treating, transporting, manufacturing, spilling, leaking, discharging, dumping, transferring or otherwise disposing of or dealing with Hazardous Materials other than by any such action taken in compliance with all applicable Environmental Statutes or by the Company or any of the Subsidiaries in connection with the ordinary use of residential, retail or commercial properties owned by the Company and its Subsidiaries; (iii) neither the Company nor any of its Subsidiaries knows of any seepage, leak, discharge, release, emission, spill, or dumping of Hazardous Materials into waters on or adjacent to the Properties or any other real property owned or occupied by any such party, or onto lands from which Hazardous Materials might seep, flow or drain into such waters; (iv) neither the Company nor any of its Subsidiaries has received any notice of, or has any knowledge of any occurrence or circumstance which, with notice or passage of time or both, would give rise to a claim under or pursuant to any federal, state or local Environmental Statute or regulation or under common law, pertaining to Hazardous Materials on or originating from any of the Properties or any assets described in the Registration Statement, Disclosure Package or the Prospectus, or any other real property owned or occupied by any such party or arising out of the conduct of any such party, including without limitation a claim under or pursuant to any Environmental Statute (hereinafter defined); and (v) neither the Properties nor any other land owned by the Company or any of its Subsidiaries is included or, to the best of the Company's knowledge, proposed for inclusion on the National Priorities List issued pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601-9675 ("CERCLA") by the United States Environmental Protection Agency or, to the best of the Company's knowledge, proposed for inclusion on any similar list or inventory issued pursuant to any other Environmental Statute or issued by any other Governmental Authority (as hereinafter defined);

As used herein, "Hazardous Material" shall include, without limitation any flammable explosives, radioactive materials, hazardous materials, hazardous wastes, toxic substances, or related materials, asbestos or any hazardous material as defined by any federal, state or local environmental law, ordinance, rule or regulation including without limitation CERCLA, the Hazardous Materials Transportation Act, as amended, 49 U.S.C. Sections 1801-1819, the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Sections 6901-6992K, the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Sections 11001-11050, the Toxic Substances Control Act, 15 U.S.C. Sections 2601-2671, the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections 136-136y, the Clean Air Act, 42 U.S.C. Sections 7401-7642, the Clean Water Act (Federal Water Pollution Control Act), 33 U.S.C. Sections 1251-1387, the Safe Drinking Water Act, 42 U.S.C. Sections 300f-300j-26, and the Occupational Safety and Health Act, 29 U.S.C. Sections 651-678, as any of the above statutes may be amended from time to time, and in the regulations promulgated pursuant to each of the foregoing (individually, an "Environmental Statute") or by any federal, state or local governmental authority having or claiming jurisdiction over the properties and assets described in the Prospectus (a "Governmental Authority");

&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) in connection with this offering, the Company has not offered and will not offer its Ordinary Shares or any other securities convertible into or exchangeable or exercisable for Ordinary Shares in a manner in violation of the Securities Act; and the Company has not distributed and will not distribute any offering material in connection with the offer and sale of the Shares except for the Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus or the 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;(aaa) except pursuant to this Agreement, the Company has not incurred any liability for, and there is no broker, finder or other party that is entitled to receive from the Company, any brokerage or, finder's or other fees or commission or similar payment in connection with the transactions herein contemplated;

&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) no relationship, direct or indirect, exists between or among the Company or any of the Subsidiaries on the one hand, and any other person on the other hand, which is required by the Securities Act to be described in the Registration Statement, the Disclosure Package or the Prospectus, which is not so described;

&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) neither the Company or any of the Subsidiaries is and, after giving effect to the offering and sale of the Shares or the application of the proceeds therefrom as described under "Use of Proceeds" in the Registration Statement, the Disclosure Package or the Prospectus, will be, or will be required to register as an "investment company" or an entity "controlled" by an "investment company", as such terms are defined in the Investment Company Act of 1940, as amended (the "**Investment Company Act**"); and neither the Company nor any of the Subsidiaries is required to register as an "investment adviser" as such term is term is defined in the Investment Advisers Act of 1940, as amended (the "**Investment Advisers 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;(ddd) there are no existing or, to the knowledge of the Company, threatened or imminent labor disputes with, or other work stoppages of, the employees of the Company or any of its Subsidiaries, or with the employees of any principal supplier, manufacturer, customer or contractor of the Company or any of its Subsidiaries, which would have, individually or in the aggregate, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) The board of directors of the Company is comprised of the persons set forth under the section of the Disclosure Package captioned "Management." The qualifications of the persons serving as board members and the overall composition of the board comply with the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder (the "**Sarbanes-Oxley Act**") applicable to the Company and the rules of Nasdaq. The Company has taken all necessary actions to ensure that, on the initial effective date of the Registration Statement, it will be in material compliance with the provisions of the Sarbanes-Oxley Act applicable to it and has implemented or will implement such programs and taken reasonable steps to ensure the Company's future compliance (not later than the relevant statutory and regulatory deadlines therefor) with all the material provisions of the Sarbanes-Oxley 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;(fff) (i) there has been no security breach or incident, unauthorized access or disclosure, or other compromise of the Company's or its Subsidiaries' information technology and computer systems, networks, hardware, software, data and databases (including the data and information of their respective borrowers, customers, employees, suppliers, vendors and any third party data maintained, processed or stored by the Company and its Subsidiaries, and any such data processed or stored by third parties on behalf of the Company and its Subsidiaries), equipment or technology (collectively, "**IT Systems and Data**") except for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same; (ii) neither the Company nor its Subsidiaries have been notified of, or have knowledge of any event or condition that would result in, any security breach or incident, unauthorized access or disclosure or other compromise to their IT Systems and Data and (iii) the Company and its Subsidiaries have implemented and maintained appropriate controls, policies, procedures, and technological safeguards to protect the integrity, continuous operation, redundancy and security of their IT Systems and Data reasonably consistent with industry standards and practices, or as required by applicable regulatory standards, except with respect to clauses (i) and (ii), for any such security breach or incident, unauthorized access or disclosure, or other compromises, as would not, individually or in the aggregate, result in a Material Adverse Effect. The Company and its Subsidiaries are presently in material compliance with all applicable laws and statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations and applicable industry standards relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data, including, but not limited to Personal Data (as defined below), from unauthorized use, access, misappropriation or modification; the Company and its Subsidiaries' IT Systems and Data are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company and its Subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, security deficiencies or vulnerabilities, Trojan horses, time bombs, malware, ransomware and other corruptants. The Company regularly conducts security assessments and penetration testing (collectively, "**Assessments**") of its IT Systems and Data and has not completely remedied all material defects, vulnerabilities or deficiencies identified in such Assessments;

&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) the Company and its Subsidiaries are, and at all prior times were, in material compliance with all applicable state and federal data privacy and security laws and regulations, including the European Union General Data Protection Regulation ("**GDPR**") (EU 2016/679) (collectively, the "**Privacy Laws**"). To ensure compliance with the Privacy Laws, the Company and its Subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in all material respects with their external and internal policies and procedures relating to data privacy and security and the collection, storage, use, processing, disclosure, handling, transfer (including any cross-border transfers) and analysis (collectively, "**Processing**") and for handling and responding to requests from data subjects relating to their of Personal Data (the "**Policies**"). The Company and its Subsidiaries have at all times made all disclosures to and obtained consents from users or customers required by applicable laws and regulatory rules or requirements for the Processing of Personal Data, and none of such disclosures made or contained in any Policy have been inaccurate or in violation of any applicable laws and regulatory rules or requirements in any material respect. The Company has at all times been in material compliance with all Policies and consents related to the Processing of Personal Data and further certifies that neither it nor any Subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any audit, investigation, remediation, or other corrective action pursuant to any Privacy Law or any contract relating to the Processing of Personal Data; or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law. "**Personal Data**" for the purpose hereof means (i) a natural person's name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver's license number, passport number, credit card number, bank information, or customer or account number; (ii) any information which would qualify as "personally identifying information" under the Federal Trade Commission Act, as amended; (iii) "personal data" as defined by GDPR; (iv) any information which would qualify as "protected health information" under the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act; and (v) any other piece of information that allows the identification of such natural person, or his or her family, or permits the collection or analysis of any data related to an identified person's health or sexual orientation or that would be protected as personal data or personal information or similar term under any Privacy 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;(hhh) none of the Company, any of its Subsidiaries or affiliates or any director, director nominee or officer of the Company or any of its Subsidiaries, or, to the knowledge of the Company, any agent, employee or other person acting on behalf of such entities is in violation of or is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the "**FCPA**"), the UK Bribery Act 2010, or any other applicable anti-bribery or anti-corruption law including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any "foreign official" (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA and the Company and the Subsidiaries and, to the knowledge of the Company, their affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance 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;(iii) none of the Company, any of its Subsidiaries or affiliates, any director, director nominee or officer of the Company or any of its Subsidiaries, or, to the Company's knowledge, agent or employee of, or other person associated with or acting on behalf of the Company or any of its Subsidiaries, has violated the Bank Secrecy Act, as amended, the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT ACT) of 2001 or the rules and regulations promulgated under any such law or any successor 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;(jjj) the operations of the Company and its Subsidiaries and affiliates and, to the Company's knowledge, are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the Money Laundering Control Act of 1986, as amended, any other money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the "**Money Laundering Laws**"), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries, or, to the Company's knowledge, or any of its affiliates, with respect to the Money Laundering Laws is pending or, to the Company's knowledge, threatened;

&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) each of the Company, its Subsidiaries and affiliates and director, director nominee and officer of the Company and its Subsidiaries, and, to the Company's knowledge, each of their agents and employees, and any other persons associated with or acting on behalf of the Company, has acted at all times in compliance with applicable Export and Import Laws (as defined below) and there are no claims, complaints, charges, investigations or proceedings pending or expected or, to the knowledge of the Company, threatened between the Company or any of its Subsidiaries and any governmental authority under any Export or Import Laws. The term "**Export and Import Laws**" means the Arms Export Control Act, the International Traffic in Arms Regulations, the Export Administration Act of 1979, as amended, the Export Administration Regulations, and all other laws and regulations of the United States government regulating the provision of services to non-U.S. parties or the export and import of articles or information from and to the United States of America, and all similar laws and regulations of any foreign government regulating the provision of services to parties not of the foreign country or the export and import of articles and information from and to the foreign country to parties not of the foreign country; 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;(lll) none of the Company, any of its Subsidiaries or affiliates, or any director, director nominee or officer of the Company or any of its Subsidiaries or, to the knowledge of the Company, employee, agent or other person associated with or acting on behalf of the Company or any of its Subsidiaries is currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person"), the United Nations Security Council, the European Union, Her Majesty's Treasury of the United Kingdom or any other relevant sanctions authority (collectively, "**Sanctions**"), nor is the Company, any of its Subsidiaries located, organized or resident in a country or territory that is the subject or target of Sanctions, including, without limitation, the Crimea, Cuba, Iran, North Korea, Sudan and Syria (each, a "**Sanctioned Country**"); and the Company will not directly or indirectly use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, the Company and its Subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

The Company has a reasonable basis for making each of the representations set forth in this <u>Section 3</u>. The Company acknowledges that the Underwriters and, for purposes of the opinions to be delivered pursuant to ‎<u>Section 6</u> hereof, counsel to the Company and counsel to the Underwriters, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Certain Covenants</u>:

The Company hereby covenants and agrees with each Underwriter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to furnish such information as may be required and otherwise to cooperate in qualifying the Shares for offering and sale under (or otherwise obtaining exemptions from the application of) the securities or blue sky laws of such jurisdictions (both domestic and foreign) as the Representatives may designate and to maintain such qualifications, registrations, and exemptions, as applicable, in effect as long as requested by the Representatives for the distribution of the Shares, provided that the Company shall not be required to qualify as a foreign corporation or to consent to the service of process under the laws of any such jurisdiction (except service of process with respect to the offering and sale of the Shares) where it is not presently qualified; and to promptly advise the Representatives of the receipt by the Company of any notification with respect to the suspension of the qualification, registration, or exemption of the Shares for offer or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its best efforts to obtain the withdrawal thereof at the earliest possible moment;

&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 the time this Agreement is executed and delivered, it is necessary for (i) a post-effective amendment to the Registration Statement or (ii) a Rule 462(b) Registration Statement to be filed with the Commission and become effective before the offering of the Shares may commence, the Company will use its reasonable best efforts to cause such post-effective amendment or Rule 462(b) Registration Statement to become effective and will pay any applicable fees in accordance with the Securities Act as soon as possible and will advise the Representatives promptly and, if requested by the Representatives, will confirm such advice in writing, (i) when such post-effective amendment or Rule 462(b) Registration Statement has become effective and (ii) if Rule 430A under the Securities Act is used, when the Prospectus has been filed with the Commission pursuant to Rule 424(b) under the Securities Act (which the Company agrees to file in a timely manner in accordance with such Rules);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to prepare the Prospectus in a form approved by the Underwriters and file such Prospectus with the Commission pursuant to Rule 424(b) under the Securities Act in a manner and within the time period required by Rule 424(b), and to furnish promptly, and for so long as a prospectus relating to the Shares is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule), to the Underwriters copies of the Prospectus (or of the Prospectus as amended or supplemented if the Company shall have made any amendments or supplements thereto after the effective date of the Registration Statement) in such quantities and at such locations as the Underwriters may reasonably request for the purposes contemplated by the Securities Act, which Prospectus and any amendments or supplements thereto furnished to the Underwriters will be identical to the version transmitted to the Commission for filing via EDGAR, except to the extent permitted by Regulation S-T;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to advise the Representatives promptly and (if requested by the Representatives) to confirm such advice in writing, when the Registration Statement has become effective and when any post-effective amendment thereto becomes effective 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;(e) to furnish a copy of each proposed Free Writing Prospectus (or any amendment or supplement thereto) to the Representatives and counsel for the Underwriters for review, a reasonable amount of time prior to the proposed time of filing or use thereof, and obtain the consent of the Representatives prior to referring to, using or filing with the Commission any Free Writing Prospectus (or any amendment or supplement thereto) pursuant to Rule 433(d) under the Securities Act, other than the Issuer Free Writing Prospectuses, if any, identified in <u>Schedule II</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;(f) to comply with the requirements of Rules 164 and 433 of the Securities Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission, legending and record keeping, 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;(g) to advise the Representatives immediately, confirming such advice in writing, of (i) the receipt of any comments from, or any request by, the Commission for amendments or supplements to the Registration Statement, the Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus, or for additional information with respect thereto; (ii) the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of the Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus, or of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes and, if the Commission or any other government agency or authority should issue any such order, to make every reasonable effort to obtain the lifting or removal of such order as soon as possible; (iii) any examination pursuant to Section 8(e) of the Securities Act concerning the Registration Statement; or (iv) if the Company becomes subject to a proceeding under Section 8A of the Securities Act in connection with the public offering of Shares contemplated herein; to advise the Representatives promptly of any proposal to amend or supplement the Registration Statement, the Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus and to file no such amendment or supplement to which the Representatives shall reasonably object in writing;

&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) to furnish to the Underwriters for a period of one year from the date of this Agreement (i) as soon as available, copies of all annual, quarterly and current reports, proxy statements, or other communications filed with or furnished to the Commission, (ii) as soon as practicable after the filing thereof, copies of all reports filed by the Company with the Commission, FINRA or any securities exchange and (iii) such other information as the Underwriters may reasonably request regarding the Company and the Subsidiaries, provided, however, that the requirements of this Section shall be satisfied to the extent that such reports, statement, communications, financial statements or other documents are available on EDGAR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to advise the Underwriters promptly of the happening of any event or development known to the Company within the time during which a Prospectus relating to the Shares (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is required to be delivered under the Securities Act which, in the judgment of the Company or in the reasonable opinion of the Representatives or counsel for the Underwriters, (i) would require the making of any change in the Disclosure Package or the Prospectus so that the Disclosure Package or the Prospectus would not include an 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 the light of the circumstances under which they were made, not misleading; (ii) as a result of which any Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement relating to the Shares; or (iii) if it is necessary at any time to amend or supplement the Disclosure Package or the Prospectus to comply with any law and, during such time, to promptly prepare and furnish to the Underwriters copies of the proposed amendment or supplement before filing any such amendment or supplement with the Commission and thereafter promptly furnish at the Company's own expense to the Underwriters and to dealers, copies in such quantities and at such locations as the Representatives may from time to time reasonably request of an appropriate amendment or supplement to the Disclosure Package or the Prospectus so that the Disclosure Package or the Prospectus as so amended or supplemented will not, in the light of the circumstances when it (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is so delivered, be misleading or, in the case of any Issuer Free Writing Prospectus, conflict with the information contained in the Registration Statement, or so that the Disclosure Package or the Prospectus will comply with the 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;(j) to file promptly with the Commission any amendment or supplement to the Registration Statement, any Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus that may, in the judgment of the Company or the Representatives, be required by the Securities Act or requested by the 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;(k) prior to filing with the Commission any amendment or supplement to the Registration Statement, any Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus, to furnish a copy thereof to the Representatives and counsel for the Underwriters and obtain the consent of the Representatives to the 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;(l) to furnish promptly to the Representatives a signed copy of the Registration Statement, as initially filed with the Commission, and of all amendments or supplements thereto (including all exhibits filed therewith or incorporated by reference therein) and such number of conformed copies of the foregoing as the Representatives 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;(m) to furnish to the Representatives, not less than two business days before filing with the Commission, during the period referred to in paragraph (h) above, a copy of any document proposed to be filed with the Commission pursuant to Section 13, 14, or 15(d) of the Exchange Act and to file all such documents in the manner and within the time periods required by 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;(n) to refrain from taking any action that would result in an Underwriter or the Company being required to file with the Commission a Free Writing Prospectus prepared by or on behalf of such Underwriter that such Underwriter otherwise would not have been required to file 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;(o) to apply the net proceeds of the sale of the Shares in accordance with its statements under the caption "Use of Proceeds" in the Registration Statement, the Disclosure Package and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) to make generally available to its security holders and to deliver to the Representatives as soon as practicable, but in any event not later than the end of the fiscal quarter first occurring after the first anniversary of the effective date of the Registration Statement an earnings statement complying with the provisions of Section 11(a) of the Securities Act and of Rule 158 under the Securities Act covering a period of 12 months beginning after the effective date of the Registration Statement, provided, however, that the requirements of the Section shall be satisfied to the extent that such statement is available on EDGAR;

&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) to use its reasonable best efforts to list and to maintain the quotation of the Shares on Nasdaq;

&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) to comply with the Securities Act and the Exchange Act so as to permit the completion of the distribution of the Shares as contemplated by this Agreement, the Registration Statement, the Disclosure Package and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) to promptly notify the Representatives if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) the time when a prospectus relating to the Shares is not required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule) and (ii) completion of the Company Lock-up Period (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) to engage and maintain, at its expense, a registrar and transfer agent for 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;(u) to invest or otherwise use the proceeds received by the Company from its sale of the Shares, and to continue to operate its business, in such a manner as would not require the Company or any of its Subsidiaries to register as (i) an "investment company" or an entity "controlled" by an "investment company," as such terms are defined in the Investment Company Act or (ii) an "investment adviser" as such term is term is defined in the Investment Advisers 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;(v) to refrain, from the date hereof until 180 days after the date of the Prospectus (such period, the "**Company Lock-up Period**"), without the prior written consent of B. Riley (which consent may be withheld B. Riley's' sole discretion), from, directly or indirectly, (i) offering, pledging, mortgaging, charging, selling, contracting to sell, selling any option or contract to purchase, purchasing any option or contract to sell, granting any option for the sale of, or otherwise disposing of or transferring, (or entering into any transaction or device which is designed to, or would be expected to, result in the disposition by any person at any time in the future of), any share of Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares, or filing or confidentially submitting any registration statement under the Securities Act with respect to any of the foregoing (other than the filing of any registration statement on Form S-8 relating to securities granted or to be granted pursuant to the Company's equity incentive plans that are described in the Registration Statement); or (ii) entering into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Ordinary Shares, whether any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Ordinary Shares or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (A) the Shares to be sold hereunder, (B) any Ordinary Shares issued by the Company upon the exercise or settlement of an equity award, restricted stock or share unit or the exercise of any warrants, outstanding on the date hereof and referred to in the Prospectus, (C) Ordinary Shares issued upon the conversion or exchange of convertible securities outstanding as of the date of the Agreement described in the Prospectus, (D) any issuance of Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares pursuant to any stock or share option, stock or share bonus or other stock or share plan or arrangement described in the Registration Statement, the Disclosure Package and the Prospectus, but only if the holders of such securities agree in writing with the Underwriters not to sell, offer, dispose of or otherwise transfer any such Shares or options during such Company Lock-up Period without the prior written consent of the Representatives (which consent may be withheld in their sole discretion), (E) the Company's facilitating of the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Ordinary Shares by a shareholder, director, director nominee or officer, provided that (x) such plan does not provide for the transfer of such Ordinary Shares during the Company Lock-up Period and (y) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by the Company regarding the establishment of such plan, such announcement or filing shall include a statement to the effect that no transfer of Ordinary Shares may be made under such plan during the Company Lock-up Period, or (F) the Company's issuance of Ordinary Shares or any securities convertible into, or exercisable or exchangeable for, Ordinary Shares, or the entry into an agreement to issue Ordinary Shares or any securities convertible into, or exercisable or exchangeable for, Ordinary Shares, in connection with any merger, joint venture, strategic transaction, or the acquisition of the securities, business, property or other assets of another individual or entity or the assumption of an employee benefit plan or employee stock or share purchase plan in connection with a merger or acquisition, provided that (x) the aggregate number of Ordinary Shares issued or issuable pursuant to this clause (F) shall not exceed five percent (5%) of the Ordinary Shares and (y) the recipient of any such Ordinary Shares or securities issued pursuant to this clause (F) during the Company Lock-up Period shall immediately enter into a lock-up agreement with respect to such 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;(w) not to, to cause its Subsidiaries not to, and to ensure its officers, directors, director nominees and affiliates not to, (i) take, directly or indirectly, any action designed to stabilize or manipulate the price of any security of the Company, or which may cause or result in, or which might in the future reasonably be expected to cause or result in, the stabilization or manipulation of the price of any security of the Company, to facilitate the sale or resale of any of the Shares, (ii) sell, bid for, purchase or pay anyone any compensation for soliciting purchases of the Shares or (iii) pay or agree to pay to any person any compensation for soliciting any order to purchase any other securities of the Company and shall, and shall cause each of its officers, directors, director nominees and affiliates to, comply with all applicable provisions of Regulation M;

&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) during the Company Lock-up Period, (i) to enforce all Lock-up Agreements that restrict or prohibit, expressly or in operation, the offer, sale or transfer of Shares or other securities or any of the other actions restricted or prohibited under the terms of the form of Lock-up Agreement and to direct the transfer agent to place stop transfer restrictions upon any such securities of the Company that are bound by such Lock-up Agreements for the duration of the periods contemplated in such agreements. In addition, the Company will announce the Underwriters' intention to release any director or "officer" (within the meaning of Rule 16a-1(f) under the Exchange Act) of the Company from any of the restrictions imposed by any Lock-up Agreement, by issuing, through a major news service, a press release in form and substance satisfactory to the Representatives or, if consented to by the Representatives, in a registration statement that is publicly filed in connection with a secondary offering of the Company's Shares promptly following the Company's receipt of any notification from the Representatives in which such intention is indicated, but in any case not later than the close of the third business day prior to the date on which such release or waiver is to become effective; provided, however, that nothing shall prevent the Representatives, on behalf of the Underwriters, from announcing the same through a major news service, irrespective of whether the Company has made the required announcement; and provided, further, that no such announcement shall be made of any release or waiver granted solely to permit a transfer of securities that is not for consideration and where the transferee has agreed in writing to be bound by the terms of a 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;(y) that the Company will comply with all of the provisions of any undertakings in the 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;(z) prior to the Closing Time and each applicable Option Closing Time, to furnish the Underwriters, as soon as they have been prepared by or are available to the Company, a copy of any unaudited interim financial statements of the Company for any period subsequent to the period covered by the most recent financial statements appearing in the Registration Statement, the Disclosure Package, and the Prospectus; 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;(aa) to deliver to the Representatives a true and correct copy of each of the executed Transition Documents, together with all related agreements and all schedules and exhibits thereto; provided, the Company will be deemed to have furnished such documents to the Representatives to the extent they are filed on EDGAR.

The Representatives, on behalf of the several Underwriters, may, in their sole discretion, waive in writing the performance by the Company of any one or more of the foregoing covenants or extend the time for their performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Payment of 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;(a) The Company agrees to pay all costs and expenses incident to the performance of its obligations under this Agreement, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, including expenses, fees and taxes in connection with (i) the preparation and filing of the Registration Statement, each Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus and any amendments or supplements thereto, and the printing and furnishing of copies of each thereof to the Underwriters and to dealers (including costs of mailing and shipment); (ii) the registration, preparation, issuance and delivery of the Shares to the Underwriters, including any stock, stamp or other transfer taxes or duties payable upon the sale, issuance, and delivery of the Shares to the Underwriters; (iii) the printing of this Agreement, any agreement among the Underwriters, any dealer agreements and furnishing of copies of each to the Underwriters (including costs of mailing and shipment); (iv) the qualification or registration (or obtaining exemptions from the qualification or registration) of the Shares for offering and sale under state or foreign laws that the Company and the Representatives have mutually agreed are appropriate and the determination of their eligibility for investment under state or foreign law as aforesaid (including the filing fees relating thereto) and the preparation, printing and furnishing of copies of any blue sky surveys or legal investment surveys and a "Canadian Wrapper," if applicable, to the Underwriters; (v) the determination of compliance with the rules and regulations of, and any filing for review of the public offering of the Shares by, FINRA (including the filing fees relating thereto); (vi) the fees and expenses of any transfer agent or registrar for the Shares and miscellaneous expenses referred to in the Registration Statement (vii) the fees and expenses incurred in connection with the inclusion of the Shares in Nasdaq; (viii) making road show presentations or holding road show meetings with prospective investors and the Underwriters' sales forces with respect to the offering of the Shares, including, without limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations, travel and lodging expenses of the officers of the Company, personnel of the Underwriters and any such consultants, and, the cost of any aircraft chartered in connection with the road show, and the costs of all Marketing Materials; (ix) all reasonable costs of any background investigations or checks; (x) all fees and expenses of the Company's counsel, independent public or certified public accountants and other advisors; (xi) preparing and distributing bound volumes of transaction documents for the Representatives and their legal counsel; (xii) all costs of completed and documented background investigations; and (xiii) the performance of the Company's other 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;(b) The Company agrees to reimburse the Representatives, upon request for their reasonable and documented, out-of-pocket, accountable, bona fide expenses actually incurred in connection with the performance of its activities under this Agreement, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, including, but not limited to, costs such as legal fees and disbursements of counsel for the Underwriters, printing, facsimile, courier service, direct computer expenses, accommodations and travel, subject to (i) a $500,000 cap on legal reimbursement in the event the Company elects not to commence the marketing of the offering of the Shares contemplated herein, and (ii) a $700,000 cap on legal reimbursement under all other circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If this Agreement shall be terminated by the Underwriters, or any of them, because of any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company shall be unable to perform its obligations under this Agreement, the Company will reimburse the Underwriters or such Underwriters as have so terminated this Agreement with respect to themselves, severally, upon demand for all fees and disbursements pursuant to Section 5(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Conditions of the Underwriters' Obligations</u>:

The obligations of the Underwriters hereunder to purchase and subscribe for Shares at the Closing Time or on each Option Closing Time, as applicable, are subject to the accuracy of the representations and warranties on the part of the Company hereunder on the date hereof and at the Closing Time and on each Option Closing Time, as applicable, the performance by the Company of its obligations hereunder and to the satisfaction of the following further conditions at the Closing Time or on each Option Closing Time, 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;(a) The Company shall furnish to the Underwriters at the Closing Time and at each Option Closing Time (if applicable) (i) an opinion and 10b-5 statement of White & Case LLP, counsel for the Company, and (ii) a 10b-5 statement of Davidoff Hutcher & Citron LLP, in each case, addressed to the Underwriters and dated the Closing Time or the applicable Option Closing Time, as the case may be, and in form and substance satisfactory to the 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;(b) The Company shall furnish to the Underwriters at the Closing Time and at each Option Closing Time (if applicable) an opinion of Cayman Islands counsel for the Company, addressed to the Underwriters and dated the Closing Time or the applicable Option Closing Time, as the case may be, and in form and substance satisfactory to the 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;(c) [Reserved.]

&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) On the date of this Agreement and at the Closing Time and at each Option Closing Time (if applicable), the Representatives shall have received from Audit Alliance, LLP letters addressed to the Underwriters and each dated the respective dates of delivery thereof and in form and substance satisfactory to the Representatives, containing statements and information of the type customarily covered by an accountant's "comfort letters" to underwriters delivered according to the PCAOB's Auditing Standards 6101 (or any successor bulletin) issued in connection with underwritten public offerings including, without limitation, the separate audited and unaudited financial statements of the Company and Enovum and the various other financial disclosures including any pro forma financial statements contained in the Registration Statement, the Disclosure Package and the Prospectus; provided, that the letters delivered at the Closing Time and each Option Closing Time (if applicable) shall use a "cut-off" date no more than three business days prior to such Closing Time or such Option Closing Time, as the case may 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;(e) The Representatives shall have received at the Closing Time and at each Option Closing Time (if applicable) an opinion and 10b-5 statement of O'Melveny & Myers LLP, counsel to the Underwriters, addressed to the Underwriters and dated the Closing Time or the applicable Option Closing Time, as the case may be, and in form and substance satisfactory to the 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;(f) The Representatives shall have received at the Closing Time and at each Option Closing Time (if applicable) an opinion and 10b-5 statement of Maples and Calder (Cayman) LLP, Cayman Islands counsel to the Underwriters, addressed to the Underwriters and dated the Closing Time or the applicable Option Closing Time, as the case may be, and in form and substance satisfactory to the 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;(g) The Registration Statement shall have become effective not later than 5:30 p.m., New York City time, on the date of this Agreement, or such later time and date as the Representatives shall approve. If Rule 430A under the Securities Act is used, the Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the Securities Act at or before 5:30 p.m., New York City time, on the second full business day after the date of this Agreement (or such earlier time as may be required 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;(h) Any Rule 462(b) Registration Statement required to be filed prior to the sale of the Shares under the Securities Act shall have been filed on the date hereof and shall have become automatically effective upon such 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;(i) No amendment or supplement to the Registration Statement, the Prospectus or any document in the Disclosure Package shall have been filed to which the Underwriters shall have objected in writing.

&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) Prior to the Closing Time and each Option Closing Time, (i) no stop order suspending the effectiveness of the Registration Statement or any order preventing or suspending the use of the Prospectus or any document in the Disclosure Package shall have been issued, and no proceedings for such purpose shall have been initiated or, to the Company's knowledge, threatened by the Commission, and no suspension of the qualification of the Shares for offering or sale in any jurisdiction, or the initiation or, to the Company's knowledge, threatening of any proceedings for any of such purposes, has occurred; (ii) all requests for additional information on the part of the Commission shall have been complied with to the reasonable satisfaction of the Representatives; (iii) the Registration Statement shall not contain an 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 not misleading; (iv) the Disclosure Package and the Prospectus shall not contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the Company shall not have become the subject of a proceeding under Section 8A of the Securities Act in connection with the offering 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;(k) All filings with the Commission required by Rule 424 under the Securities Act (including the information required by Rule 430A under the Securities Act) to have been filed by the Closing Time shall have been made in the manner and within the applicable time period prescribed for such filing by such Rule.

&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) Between the time of execution of this Agreement and the Closing Time or the relevant Option Closing Time, (i) there shall not have been any Material Adverse Change; and (ii) no transaction which is material and unfavorable to the Company shall have been entered into by the Company, which is not described in the Registration Statement, the Disclosure Package and the Prospectus, and which in the Representatives' sole judgment, makes it impracticable or inadvisable to proceed with the public offering of the Shares as contemplated by the 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;(m) The Shares shall have been approved for listing on Nasdaq.

&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) FINRA shall have raised no objection to the fairness and reasonableness of the underwriting terms or other arrangements 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;(o) On or prior to the date hereof, the Representatives shall have received Lock-up Agreements from the Lock-Up Persons, and such letter agreements shall be in full force and 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;(p) The Company shall furnish to the Underwriters, at the Closing Time and at each Option Closing Time (if applicable), a certificate of its Chief Executive Officer or President and its Chief Financial Officer, dated the Closing Time or the applicable Option Closing Time, to the effect 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;(i) the representations and warranties of the Company in this Agreement are true and correct, with the same force and effect as if made on and as of such date, and the Company has complied with all the covenants and agreements and satisfied all the conditions on its part to be performed under this Agreement or satisfied at or prior to such 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;(ii) no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto has been issued and no proceedings for that purpose have been instituted or are pending or, to the Company's knowledge, threatened by the Commission 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;(iii) for the period from and including the date of this Agreement through and including such date, there has not occurred any Material Adverse Change.

&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) The Company shall furnish to the Underwriters, as of the date hereof, at the Closing Time and at each Option Closing Time (if applicable), a certificate of its Chief Financial Officer, dated the Closing Time or the applicable Option Closing Time, with respect to certain financial data contained in the Disclosure Package and the Prospectus, providing "management comfort" with respect to such information, in form and substance satisfactory to the 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;(r) The Company shall have furnished to the Underwriters and counsel for the Underwriters such other information, documents, opinions and certificates as to the accuracy and completeness of any statement in the Registration Statement, the Disclosure Package and the Prospectus, the representations, warranties and statements of the Company contained herein, and the performance by the Company of its covenants contained herein, and the fulfillment of any conditions contained herein, as of the Closing Time or any Option Closing Time, as the Underwriters or their counsel may reasonably request, and all proceedings taken by the Company in connection with the issuance and sale of the Shares as contemplated herein and in connection with the other transactions contemplated by this Agreement shall be satisfactory in form and substance to the Representatives and counsel for the Underwriters.

&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) The Company shall have completed the Reorganization pursuant to the Transition Documents as described in the Registration Statement, the Disclosure Package and the Prospectus. There shall be no material legal, regulatory or other challenges to the Reorganization.

If any condition specified in this ‎<u>Section 6</u> is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Representatives by notice from the Representatives to the Company at any time on or prior to the Closing Time and, with respect to the Additional Ordinary Shares, at any time on or prior to the applicable Option Closing Time, which termination shall be without liability on the part of any party to any other party, except that ‎<u>Sections 5</u>, <u>7</u>, ‎and <u>9</u> shall at all times be effective and shall survive such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</u>:

The obligations of the several Underwriters hereunder shall be subject to termination in the absolute discretion of the Representatives, at any time prior to the Closing Time or any Option Closing Time, (i) if any of the conditions specified in <u>Section 6</u> hereof shall not have been fulfilled when and as required by this Agreement to be fulfilled; (ii) if there has been, in the judgment of the Representatives, since the respective dates as of which information is given in the Registration Statement, the Disclosure Package and the Prospectus, any Material Adverse Change; (iii) if there has occurred any outbreak or escalation of hostilities or other national or international calamity or crisis or change in economic, political, health or other conditions, the effect of which on the United States or international financial markets is such as to make it, in the judgment of the Representatives, impracticable or inadvisable to market the Shares or enforce contracts for the sale of the Shares; (iv) if trading in any securities of the Company has been suspended by the Commission or by Nasdaq, or if trading generally on the New York Stock Exchange or Nasdaq has been suspended or halted (including an automatic halt in trading pursuant to market-decline triggers, other than those in which solely program trading is temporarily halted), or limitations on prices for trading (other than limitations on hours or numbers of days of trading) have been fixed, or maximum ranges for prices for securities have been required, by such exchange or FINRA or the over-the-counter market or by order of the Commission or any other governmental authority; (v) any federal, state, local or foreign statute, regulation, rule or order of any court or other governmental authority has been enacted, published, decreed or otherwise promulgated which, in the reasonable opinion of the Representatives, materially adversely affects or will materially adversely affect the business or operations of the Company; or (vi) any action has been taken by any federal, state, local or foreign government or agency in respect of its monetary or fiscal affairs which, in the reasonable opinion of the Representatives, would reasonably be expected to have a Material Adverse Effect on the securities markets in the United States.

If the Representatives elects to terminate this Agreement as provided in this <u>Section 7</u>, the Company and the Underwriters shall be notified promptly by telephone, promptly confirmed by facsimile or e-mail.

If the sale to the Underwriters of the Shares, as contemplated by this Agreement, is not carried out by the Underwriters for any reason permitted under this Agreement or if such sale is not carried out because the Company shall be unable to comply in all material respects with any of the terms of this Agreement, the Company shall not be under any obligation or liability under this Agreement (except to the extent provided in <u>Sections 5</u> and <u>9</u> hereof) and the Underwriters shall be under no obligation or liability to the Company under this Agreement (except to the extent provided in <u>Section 9</u> hereof) or to one another hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Default of Underwriters' Commitments</u>:

Subject to <u>Sections 6</u> and <u>7</u> hereof, if any Underwriter shall fail, refuse, or default at the Closing Time or at any Option Closing Time in its obligation to take up and pay for the Shares to be purchased by it under this Agreement on such date, the Representatives shall have the right, within 36 hours after such default, to make arrangements for one or more of the non-defaulting Underwriters, or any other underwriters, to purchase all, but not less than all, of the Shares which such Underwriter shall have agreed but failed to take up and pay for (the "**Defaulted Shares**"). Absent the completion of such arrangements within such 36-hour period, (i) if the total number of Defaulted Shares does not exceed 10% of the total number of Shares to be purchased on such date, each non-defaulting Underwriter, severally and not jointly, shall take up and pay for (in addition to the number of Shares which it is otherwise obligated to purchase on such date pursuant to this Agreement) the portion of the total number of Shares agreed to be purchased by the defaulting Underwriter on such date in the proportion that its underwriting obligations hereunder bears to the underwriting obligations of all non-defaulting Underwriters; and (ii) if the total number of Defaulted Shares exceeds 10% of such total, the Representatives may terminate this Agreement by notice to the Company, without liability of any party to any other party except that the provisions of <u>Sections 5</u> and <u>9</u> hereof shall at all times be effective and shall survive such termination.

Without relieving any defaulting Underwriter from its obligations hereunder, the Company agrees with the non-defaulting Underwriters that it will not sell any Shares hereunder on such date unless all of the Shares to be purchased on such date are purchased on such date by the Underwriters (or by substituted Underwriters selected by the Representatives with the approval of the Company or selected by the Company with the approval of the Representatives).

If a new Underwriter or Underwriters are substituted for a defaulting Underwriter in accordance with the foregoing provision, the Company or the non-defaulting Underwriters shall have the right to postpone the Closing Time or the relevant Option Closing Time for a period not exceeding five business days in order that any necessary changes in the Registration Statement and Prospectus and other documents may be effected.

The term "**Underwriter**" as used in this Agreement shall refer to and include any Underwriter substituted under this <u>Section 8</u> with the same effect as if such substituted Underwriter had originally been named in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Indemnity and Contribution by the Company and the Underwriters</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 Company agrees to indemnify, defend and hold harmless each Underwriter and any person who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, any "affiliate" (within the meaning of Rule 405 under the Act) of any Underwriter, and the respective directors, director nominees, officers, employees, members and agents of each Underwriter, and the successors and assigns of all of the foregoing persons, from and against, and to reimburse any and all expenses incurred in connection with, any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly or severally, any such Underwriter or other person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment), any Issuer Free Writing Prospectus that the Company has filed or was required to file with the Commission or is otherwise required to retain, the Prospectus (the term Prospectus for the purpose of this <u>Section 9</u> being deemed to include any Preliminary Prospectus, the Disclosure Package or the Prospectus and the Prospectus as amended or supplemented by the Company); (ii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (iii) any omission or alleged omission from any such Issuer Free Writing Prospectus, Disclosure Package, Prospectus, Testing-the-Waters Communication or Marketing Material of a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading; (iv) any untrue statement or alleged untrue statement of any material fact contained the Testing-the-Waters Communications and the Marketing Materials; and (v) any act or failure to act or any alleged act or failure to act by any Underwriter in connection with, or relating in any manner to, the Shares or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon any matter covered by the foregoing clauses; except, in the case of (i), (ii) and (iii) above only, insofar as any such loss, expense, liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use in such Registration Statement, Disclosure Package or Prospectus. The indemnity agreement set forth in this <u>Section 9(a)</u> shall be in addition to any liability which the Company may otherwise have.

If any action, suit or proceeding (a "**Proceeding**") is brought against an Underwriter or other person in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such indemnified party shall promptly notify the Company in writing of the institution of such Proceeding and the Company shall assume the defense of such Proceeding including the employment of counsel reasonably satisfactory to the indemnified party and payment of any and all expenses related to such Proceeding or incurred in connection with such indemnified party's successful enforcement of this <u>Section 9(a)</u>; provided, however, that any failure or delay to so notify the Company will not relieve the Company of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such indemnified party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, or the Company shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Company (in which case the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company and paid as incurred (it being understood, however, that the Company shall not be liable for the expenses of more than one separate firm of attorneys for the Underwriters or controlling persons in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, the Company shall not be liable for any settlement of any such Proceeding effected without its consent, and the Company shall not, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened Proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such 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;(b) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless the Company, the Company's directors and director nominees, the Company's officers that signed the Registration Statement, and any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the successors and assigns of all of the foregoing persons, from and against any loss, expense, liability, damage or claim (including the reasonable cost of investigation) which the Company or any such person may incur under the Securities Act, the Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Prospectus, the Disclosure Package, any Issuer Free Writing Prospectus, any Testing-the-Waters Communication or any Marketing Material that the Company has filed or was required to file with the Commission or is otherwise required to retain, or; (ii) any omission or alleged omission to state a material fact required to be stated in any such Registration Statement, Disclosure Package, Issuer Free Writing Prospectus, Prospectus, Testing-the-Waters Communication or Marketing Material, or necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, but in each case only insofar as such untrue statement or alleged untrue statement or omission or alleged omission was made in such Registration Statement, Disclosure Package, Issuer Free Writing Prospectus, Prospectus, Testing-the-Waters Communication or Marketing Material in reliance upon and in conformity with information furnished in writing by the Underwriters through the Representatives to the Company expressly for use therein. The statements set forth in the paragraphs [●] under the caption "Underwriting" in the Preliminary Prospectus, the Disclosure Package and the Prospectus (to the extent such statements relate to the Underwriters) constitute the only information furnished by or on behalf of any Underwriter through the Representatives to the Company for purposes of <u>Section 3(l)</u>, <u>Section 3(m)</u>, and <u>Section 3(n)</u> and this <u>Section 9</u>. The indemnity agreement set forth in this <u>Section 9(b)</u> shall be in addition to any liability which the Underwriters may otherwise have.

If any Proceeding is brought against the Company, or any such person in respect of which indemnity may be sought against any Underwriter pursuant to the foregoing paragraph, the Company, or such person shall promptly notify the Representatives in writing of the institution of such Proceeding and the Representatives, on behalf of the Underwriters, shall assume the defense of such Proceeding, including the employment of counsel reasonably satisfactory to the indemnified party and payment of any and all expenses related to such Proceeding or incurred in connection with such indemnified party's successful enforcement of this <u>Section 9(b)</u>; provided however, that any failure or delay to so notify the Representatives will not relieve the Underwriters of any obligation hereunder, except to the extent that its ability to defend is actually impaired by such failure or delay. Such indemnified party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of such counsel shall have been authorized in writing by the Representatives in connection with the defense of such action or the Representatives shall not have employed counsel to have charge of the defense of such action within a reasonable time or such indemnified party or parties shall have reasonably concluded (based on the advice of counsel) that there may be defenses available to it or them which are different from or additional to those available to the Underwriters (in which case the Representatives shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being understood, however, that the Underwriters shall not be liable for the expenses of more than one separate firm of attorneys in any one action or series of related actions in the same jurisdiction (other than local counsel in any such jurisdiction) representing the indemnified parties who are parties to such action). Anything in this paragraph to the contrary notwithstanding, no Underwriter shall be liable for any settlement of any such Proceeding effected without its written consent, and the Underwriters shall not, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened Proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such 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) If the indemnification provided for in this <u>Section 9</u> is, for any reason, unavailable or insufficient to hold harmless an indemnified party under <u>Sections 9(a)</u> and <u>(b)</u> in respect of any losses, expenses, liabilities, damages or claims referred to therein, then each applicable 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 losses, expenses, liabilities, damages or claims (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Shares or (ii) if (but only if) the allocation provided by (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in (i) above but also the relative fault of the Company on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which resulted in such losses, expenses, liabilities, damages or claims, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other hand shall be deemed to be in the same proportion as the total proceeds from the offering (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to the underwriting discounts and commissions received by the Underwriters. The relative fault of the Company on the one hand and of the Underwriters on the other hand shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged omission relates to information supplied by the Company or by the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, expenses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating, preparing to defend or defending any Proceeding. The provisions set forth in ‎<u>Sections 9(a)</u> and <u>9(b)</u> with respect to notice of commencement of any Proceeding shall apply if a claim for contribution is to be made under this ‎<u>Section 9(c)</u>; provided, however, that no additional notice shall be required with respect to any action for which notice has been duly given under <u>Sections 9(a)</u> or <u>9(b)</u> for purposes of indemnification.

&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 and the Underwriters agree that it would not be just and equitable if contribution pursuant to this <u>Section 9</u> were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in <u>Section 9(c)(i)</u> and, if applicable, <u>Section 9(c)(ii)</u> above. Notwithstanding the provisions of this <u>Section 9</u>, no Underwriter shall be required to contribute any amount in excess of the underwriting discounts and commissions applicable to the Shares purchased by such Underwriter. 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. The Underwriters' obligations to contribute pursuant to this <u>Section 9</u> are several, and not joint, in proportion to their respective underwriting commitments as set forth opposite their respective names on <u>Schedule I</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Survival</u>:

The indemnity and contribution agreements contained in <u>Section 9</u> and the covenants, warranties and representations of the Company contained in <u>Sections 3</u> and <u>4</u> of this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of any Underwriter, or any person who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the respective directors, director nominees, officers, employees and agents of each Underwriter or by or on behalf of the Company, its directors, director nominees and officers, or any person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and shall survive any termination of this Agreement and the sale and delivery of the Shares. The Company and each Underwriter agree promptly to notify the others of the commencement of any litigation or proceeding against it and, in the case of the Company, against any of the Company's officers, directors and director nominees, in connection with the sale and delivery of the Shares, or in connection with the Registration Statement, the Preliminary Prospectus, any Issuer Free Writing Prospectus, or the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Duties</u>:

Nothing in this Agreement shall be deemed to create a partnership, joint venture or agency relationship between the parties. The Underwriters undertake to perform such duties and obligations only as expressly set forth herein. Such duties and obligations of the Underwriters with respect to the Shares shall be determined solely by the express provisions of this Agreement, and the Underwriters shall not be liable except for the performance of such duties and obligations with respect to the Shares as are specifically set forth in this Agreement. The Company acknowledges and agrees that: (i) the purchase and sale of the Shares pursuant to this Agreement, including the determination of the public offering price of the Shares and any related discounts and commissions, is an arm's-length commercial transaction between the Company, on the one hand, and the several Underwriters, on the other hand, and the Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with each transaction contemplated hereby and the process leading to such transaction, each Underwriter is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary of the Company or its affiliates, shareholders, stockholders, creditors or employees or any other party; (iii) no Underwriter has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Company with respect to any of the transactions contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company on other matters); (iv) the several Underwriters and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and that the several Underwriters have no obligation to disclose any of such interests; and (v) the Underwriters have not provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate. The Company acknowledges that the Underwriters disclaim any implied duties (including any fiduciary duty), covenants or obligations arising from the Underwriters' performance of the duties and obligations expressly set forth herein. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against the several Underwriters with respect to any breach or alleged breach of agency, advisory, fiduciary or similar duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>:

Except as otherwise herein provided, all statements, requests, notices and agreements shall be in writing and effective only on receipt and, if sent to the Representatives, will be mailed, delivered or e-mailed to: B. Riley Securities, Inc., 1300 17<sup>th</sup> Street N., Suite 1300 Arlington, Virginia 22209, Attention: Syndicate Department, and Needham & Company, LLC, 250 Park Avenue, New York, NY 10177, Attention: Corporate Finance Department, with a copy (which shall not constitute notice) to the Underwriter's counsel at O'Melveny & Myers LLP, 1301 Avenue of the Americas, 17th Floor, New York, New York 10019, Attention: Jeeho M. Lee and David Ni, or, if sent the Company, will be mailed, delivered or e-mailed to WhiteFiber, Inc. 31 Hudson Yards, Floor 11, Suite 30, New York, New York 10001, Attention: Sam Tabar, with a copy (which shall not constitute notice) to the Company's counsel at White & Case LLP, 609 Main Street, Suite 2900, Houston, TX 77002, Attention: Laura Katherine Mann. Any party hereto may change the address for receipt of communications by giving written notice to the others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <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 conflicts of laws principles. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby shall be instituted in the (i) the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan and (ii) the courts of the State of New York located in the City and County of New York, Borough of Manhattan (collectively, the "**Specified Courts**"), and the Company and each Underwriter irrevocably submit to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court, as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. The Company and each Underwriter irrevocably and unconditionally waives any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Parties at Interest</u>:

The Agreement herein set forth has been and is made solely for the benefit of the Underwriters, the Company, and the controlling persons, directors, director nominees, officers, and other persons referred to in <u>Section 9</u> hereof, and their respective successors, assigns, executors and administrators. No other person, partnership, association or corporation (including a purchaser, as such purchaser, from any of the Underwriters) shall acquire or have any right under or by virtue of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>:

This Agreement shall be binding upon each of the Underwriters and the Company and their respective successors and assigns and any successor or assign of any substantial portion of the Company's and any of the Underwriters' respective businesses and/or assets. The term "successors and assigns" shall not include a purchaser of any of the Shares from the Underwriter merely because of such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts and Facsimile Signatures</u>:

This Agreement may be signed by the parties in counterparts which together shall constitute one and the same agreement among the parties. A facsimile or .pdf signature shall constitute an original signature for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Partial Unenforceability</u>:

The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Recognition of the U.S. Special Resolution Regimes</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 the event that any Underwriter that is a Covered Entity (as defined below) becomes subject to a proceeding under a U.S. Special Resolution Regime (as defined below), the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate (as defined below) of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights (as defined below) under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

For purposes of this Agreement, (A) "**BHC Act Affiliate**" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k); (B) "**Covered Entity**" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b); (C) "**Default Right**" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable; and (D) "**U.S. Special Resolution Regime**" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>General Provisions</u>:

This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The section headings in this Agreement have been inserted as a matter of convenience of reference and shall not affect the construction or interpretation of this Agreement.

[*Remainder of Page Intentionally Left Blank*]

If the foregoing correctly sets forth the understanding among the Company and the Underwriters, please so indicate in the space provided below for the purpose, whereupon this Agreement shall constitute a binding agreement among the Company and the Underwriters.

---

| |
|:---|
| Very truly yours, |
| WHITEFIBER, INC. |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| Accepted and agreed to as |
| of the date first above written: |
| B. RILEY SECURITIES, INC. |
| By: |
| Name: |
| Title: |

---

For itself and as Representative of the other<br> Underwriters named on <u>Schedule I</u> hereto.

---

| |
|:---|
| NEEDHAM & COMPANY, LLC |
| By: |
| Name: |
| Title: |

---

For itself and as Representative of the other<br> Underwriters named on <u>Schedule I</u> hereto.

<u>Schedule I</u>

---

| | |
|:---|:---|
| Underwriter | Number of Initial<br> Shares to be Purchased |
| B. Riley Securities, Inc. | [●] |
| Needham & Company, LLC | [●] |
| [●] | [●] |
| Total | [●] |

---

<u>Schedule II</u>

Issuer Free Writing Prospectuses

[None.]

<u>Schedule III</u>

Pricing Terms

---

| | | |
|:---|:---|:---|
| Number of Initial Ordinary Shares: |  | [●] |
| Number of Additional Ordinary Shares: |  | [●] |
| Public Offering Price per Ordinary Share: | $| [●] |

---

<u>EXHIBIT A</u>

Form of Lock-up Agreement

[●], 2025

B. Riley Securities, Inc.

as Representative of the<br> several Underwriters

c/o B. Riley Securities, Inc.

1300 17th St. N, Suite 1300

Arlington, VA 22209

Re: <u>WHITEFIBER, INC. **-** Initial Public Offering</u>

Ladies and Gentlemen:

The undersigned understands that you, as representative (the "Representative"), propose to enter into an underwriting agreement (the "Underwriting Agreement") on behalf of the several Underwriters named in <u>Schedule I</u> to such agreement (collectively, the "Underwriters"), with WhiteFiber, Inc., a Cayman Islands corporation (the "Company"), providing for a public offering (the "Offering") of ordinary shares (the "Shares") of the Company (the "Ordinary Shares") pursuant to a Registration Statement on Form S-1 filed or to be filed with the Securities and Exchange Commission (the "SEC"). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Underwriting Agreement.

In consideration of the agreement by the Underwriters to offer and sell the Shares, and of other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned agrees that, during the period beginning from the date of this letter agreement (this "Letter Agreement") and continuing to and including the date 180 days after the date of the final prospectus (the "Prospectus") with respect to the Offering (the "Restricted Period"), the undersigned will not offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any Ordinary Shares of the Company, or any options or warrants to purchase any Ordinary Shares of the Company, or any securities convertible into, exchangeable for or that represent the right to receive Ordinary Shares of the Company, whether now owned or hereinafter acquired, owned directly by the undersigned (including holding as a custodian) or with respect to which the undersigned has beneficial ownership within the rules and regulations of the SEC (collectively, the "Lock-Up Shares"). The foregoing restriction is expressly agreed to preclude the undersigned from engaging in any hedging or other transaction that is designed to or that reasonably could be expected to lead to or result in a sale or disposition of the Lock-Up Shares even if such Lock-Up Shares would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include without limitation any short sale or any purchase, sale or grant of any right (including without limitation any put or call option) with respect to any of the Lock-Up Shares or with respect to any security that includes, relates to, or derives any significant part of its value from such Lock-Up Shares.

If the undersigned is an officer, director or director nominee of the issuer, the undersigned further agrees that the foregoing provisions shall be equally applicable to any issuer-directed Shares the undersigned may purchase in the Offering.

In addition, the undersigned agrees that, without the prior written consent of the Representative, it will not, during the Restricted Period, make any demand for or exercise any right with respect to, the registration of any Ordinary Shares or any security convertible into or exercisable or exchangeable for Ordinary Shares.

Notwithstanding the foregoing, the undersigned may, without the consent of the Representative:

&nbsp;&nbsp;&nbsp;&nbsp;(A) transfer or dispose of the Lock-Up Shares as a bona fide gift or gifts, or for bona fide estate planning
purposes, provided that the donee or donees thereof agree to be bound in writing by the restrictions set forth herein;

&nbsp;&nbsp;&nbsp;&nbsp;(B) transfer or dispose of the Lock-Up Shares to any trust for the direct or indirect benefit of the undersigned
or the immediate family of the undersigned, provided that the trustee of the trust agrees to be bound in writing by the restrictions set
forth herein and any such transfer shall not involve a disposition for value;

&nbsp;&nbsp;&nbsp;&nbsp;(C) transfer or dispose of the Lock-Up Shares if the undersigned is a corporation, partnership, limited liability
company, trust or other business entity (i) to another corporation, partnership, limited liability company, trust or other business entity
that is an affiliate (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned or to any investment
fund or other entity controlled or managed by the undersigned or (ii) as part of a distribution, transfer or disposition by the undersigned
to its stockholders, partners, members, beneficiaries or other equity holders, provided, in each case, that the transferees thereof agree
to be bound in writing by the restrictions set forth herein and any such transfer shall not involve a disposition for value;

&nbsp;&nbsp;&nbsp;&nbsp;(D) transfer or dispose of the Lock-Up Shares by will, other testamentary document or intestate succession
upon the death of the undersigned, provided that the legatee, heir or other transferee agrees to be bound in writing by the restrictions
on transfer set forth herein and any such transfer shall not involve a disposition for value, and provided further that any required filing
made pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), shall include a footnote
noting the circumstances described in this clause (D) and no other public filing or announcement shall be required or shall be made voluntarily
in connection with such transfer or disposition;

&nbsp;&nbsp;&nbsp;&nbsp;(E) transfer or dispose of the Lock-Up Shares by operation of law pursuant to a qualified domestic order or
in connection with a divorce settlement or other court order, provided that the recipient agrees to be bound in writing by the restrictions
set forth herein, provided further that any required filing made pursuant to Section 16(a) of the Exchange Act, shall include a footnote
noting the circumstances described in this clause (E) and no other public filing or announcement shall be required or shall be made voluntarily
in connection with such transfer or disposition;

&nbsp;&nbsp;&nbsp;&nbsp;(F) enter into a trading plan providing for the sale of the Lock-Up Shares by the undersigned, which trading
plan meets the requirements of Rule 10b5-1(c) under the Exchange Act, provided, however, that such plan does not provide for, or permit,
the sale of any Lock-Up Shares during the Restricted Period and no filing under Section 16(a) of the Exchange Act or other public announcement
is voluntarily made or required regarding such plan during the Restricted Period;

&nbsp;&nbsp;&nbsp;&nbsp;(G) transfer or dispose of the Lock-Up Shares to the Company solely to satisfy tax withholding obligations
pursuant to the Company's equity incentive plans or arrangements disclosed in the Prospectus, provided that no filing under Section
16(a) of the Exchange Act or other public filing, report or announcement shall be required or shall be voluntarily made during the period
beginning on the date hereof and continuing to and including the date that is 30 days after the date of the Prospectus (the "30
Day Period"), and after the 30 Day Period, if the undersigned is required to file a report under Section 16(a) of the Exchange Act
during the Restricted Period, the undersigned shall clearly indicate in the footnotes thereto that the filing relates to the circumstances
described in this clause (G) and no other public filing or announcement shall be required or shall be made voluntarily in connection with
such transfer or disposition;

&nbsp;&nbsp;&nbsp;&nbsp;(H) transfer the Lock-Up Shares to the Company pursuant to agreements in effect on the date of the Prospectus
and as described in the Prospectus under which the Company has the option to repurchase shares or forfeit the Lock-Up Shares upon termination
of service of the undersigned, provided that no filing under Section 16(a) of the Exchange Act or other public filing, report or announcement
shall be required or shall be voluntarily made during the period beginning on the date hereof and continuing to and including the date
that is 60 days after the date of the Prospectus (the "60 Day Period"), and after the 60 Day Period, if the undersigned is
required to file a report under Section 16(a) of the Exchange Act during the Restricted Period, the undersigned shall clearly indicate
in the footnotes thereto that the filing relates to the circumstances described in this clause (H) and no other public filing or announcement
shall be required or shall be made voluntarily in connection with such repurchase or forfeiture;

&nbsp;&nbsp;&nbsp;&nbsp;(I) dispose of the Lock-Up Shares solely in connection with the "cashless" exercise of stock options
or warrants to acquire Ordinary Shares described in the Prospectus or issued pursuant to an equity plan or arrangement described in the
Prospectus (the term "cashless" exercise being intended to include the sale of a portion of the shares issuable upon exercise
of the stock options or warrants or previously owned shares to the Company to cover payment of the exercise price) for the purpose of
exercising such stock options or warrants, in any event, solely if such stock options or warrants would otherwise expire during the Restricted
Period, provided that any Ordinary Shares received upon such exercise shall be subject to all of the restrictions set forth in this Letter
Agreement and provided, further, that any filing required under Section 16(a) of the Exchange Act shall clearly indicate in the codes
and footnotes thereto that any disposition of shares in connection with a "cashless" exercise was made solely to the Company
and no other public filing or announcement shall be made voluntarily in connection with such exercise;

&nbsp;&nbsp;&nbsp;&nbsp;(J) transfer or dispose of any Lock-Up Shares acquired in open market transactions after completion of the
Offering, provided that no such transaction is required to be, or is, publicly announced (whether on Form 4, Form 5 or otherwise) during
the Restricted Period and no other public filing or announcement shall be made voluntarily in connection with such transfer or disposition;
and

&nbsp;&nbsp;&nbsp;&nbsp;(K) pursuant to a bona fide third-party tender offer, merger, consolidation or other similar transaction approved
by the Board of Directors and made to all holders of Ordinary Shares involving a Change of Control (as defined below), provided that,
in the event that such tender offer, merger or consolidation is not completed, the undersigned's Lock-Up Shares shall remain subject
to the provisions of this Lock-Up Agreement.

The undersigned now has, and, except as contemplated by clauses (A) through (K) above, for the duration of the Restricted Period will have, good and marketable title to the Lock-Up Shares, free and clear of all liens, encumbrances, and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the Lock-Up Shares except in compliance with the foregoing restrictions. "Change of Control" shall mean the transfer (whether by tender offer, merger consolidation or other similar transaction), in one transaction or a series of related transactions, to a person or group of affiliate persons, of the Company's voting securities, if, after such transfer, the Company's stockholders as of immediately prior to such transfer do not hold a majority of the outstanding voting securities of the Company (or the surviving entity).

If the undersigned is an officer, director or director nominee of the Company, (i) the Representative agrees that, at least three business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Ordinary Shares of the Company, the Representative will notify the Company of the impending release or waiver, and (ii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted by the Representative hereunder to any such officer, director or director nominee shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a transfer not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described herein to the extent and for the duration that such terms remain in effect at the time of the transfer.

Notwithstanding anything to the contrary contained herein, this Agreement will automatically terminate and the undersigned will be released from all of his, her or its obligations hereunder upon the earliest to occur, if any, of (i) prior to the execution of the Underwriting Agreement, the Company advises the Representative in writing that it has determined not to proceed with the Offering, (ii) the Company files an application to withdraw the registration statement related to the Offering, (iii) the Underwriting Agreement is executed but is terminated (other than the provisions thereof which survive termination) prior to payment for and delivery of the Shares to be sold thereunder, or (iv) [●], 2025, in the event that the Underwriting Agreement has not been executed by such date; provided, however, that the Company may, by written notice to you prior to such date, extend such date for a period of up to three additional months.

This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof.

The undersigned understands that the Company and the Underwriters are relying upon this Agreement in proceeding toward consummation of the Offering. The undersigned further understands that this Agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors, and assigns. This Agreement 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 www.echosign.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.

[*signature page follows*]

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| Name of Security Holder (*Print exact name*) | Name of Security Holder (*Print exact name*) |
| By: |  |
|  | Signature |
| If not signing in an individual capacity: | If not signing in an individual capacity: |
| Name of Authorized Signatory (*Print*) | Name of Authorized Signatory (*Print*) |
| Title of Authorized Signatory (*Print*) | Title of Authorized Signatory (*Print*) |
| (*indicate capacity of person signing if signing as custodian, trustee, or on behalf of an entity*) | (*indicate capacity of person signing if signing as custodian, trustee, or on behalf of an entity*) |

---

<u>EXHIBIT B</u>

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Sam Tabar |  | Chief Executive Officer |
| Erke Huang |  | Chief Financial Officer and Director |
| Thomas Sanfilippo |  | Chief Technology Officer |
| Billy Krassakopoulos |  | President of WhiteFiber and Chief Executive Officer of Enovum |
| Ichi Shih |  | Independent Director |
| Jiashu (Bill) Xiong |  | Director |
| David Andre |  | Nominee for Independent Director |
| Bit Digital, Inc. |  | Shareholder |

---

## Exhibit 2.1

**Exhibit 2.1**

**FORM OF**

**SECTION 351 CONTRIBUTION AGREEMENT**

**THIS SECTION 351 CONTRIBUTION AGREEMENT**, made as of the [●] day of May 2025 by and between:

**WHITEFIBER, INC.** a Cayman Island exempted company (hereinafter "Company"); and **BIT DIGITAL, INC.,** a Cayman Island exempted company (hereinafter referred to as the "Contributing Party")

**WITNESSETH:**

WHEREAS, the Contributing Party, which has formed the Company and taken part in the development of the Company's business, having an interest in the assets, business, liabilities and capital stock of its subsidiaries listed on <u>Schedule A</u> attached hereto (the "Subsidiaries"); and

WHEREAS, the Company and the Contributing Party believe that it is in their best interests to separate the Subsidiaries from the Contributing Party.

WHEREAS the Company and the Contributing Party have negotiated and reached certain understandings, herein delineated and in a Transition Services Agreement, which have been memorialized hereinafter, for which they desire this Contribution Agreement to formalize and evidence such understandings

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and intending to be legally bound, the parties have agreed as follows:

1. The Company currently has one ordinary share issued and outstanding, all of which is held by the Contributing Party. There are no series of Preferred Stock designated and no shares of Preferred Stock are issued and outstanding.

2. The Contributing Party hereby contributes to the Company and hereby transfers, sells, conveys, assigns and quitclaims to the Company all of its rights, title and interest in and to the capital shares, business and associated assets and liabilities of the Subsidiaries.

3. The Company and the Contributing Party acknowledge that they have negotiated at arms length over a period of time regarding this transaction prior to reaching this agreement. This Contribution Agreement memorializes the understandings reached and sets forth the complete agreement of the parties. This Contribution Agreement supersedes any and all prior discussion and all oral and/or written understandings. There are no representations or warranties made by any of the parties as an inducement to this Contribution Agreement except for those set forth in this Contribution Agreement, if any.

4. This Contribution Agreement is intended to provide for a tax-free distribution between the Contributing Party and the Company under Section 351 of the Internal Revenue Code and shall be construed to accomplish that result.

5. This Contribution Agreement may not be terminated, amended, or otherwise modified except by a written agreement signed by all of the Parties to this Contribution Agreement and all parties so required by the Company's Amended and Restated Memorandum of Association at the time of such termination, amendment or modification, if any.

6. If any provision of this Agreement is held to be illegal, invalid or unenforceable under the present or future laws effected during the terms of this Agreement in the state of New York, such provision shall be fully severable from the remaining provisions of this Contribution Agreement, and it shall not affect the validity of the remaining provisions, which provisions shall be given full force and effect as if the illegal, unenforceable, or invalid provision had not been included in this Contribution Agreement. In lieu of an illegal, unenforceable, or invalid provision, there shall be substituted a provision as similar in terms to the illegal, invalid, or unenforceable provision as may be possible and still be legal, valid and enforceable.

7. This Contribution Agreement shall be construed and enforced in accordance with and governed by New York law in existence on the date of this Contribution Agreement.

8. The parties will execute and deliver such further instruments and do such further acts and things as may be required to carry out the intent and purpose of this Contribution Agreement.

9. This Contribution Agreement shall be binding upon, and shall inure to the benefit of, the heirs, administrators, personal representatives, successors and assigns of the respective parties hereto.

10. Any notice required or permitted to be given under this Contribution Agreement shall be sufficient if in writing, and if sent by certified mail to the address shown at the head of the Contribution Agreement or such alternative address as a party may provide in writing and delivered to the above listed address of the other parties hereto.

11. The waiver by either party of a breach of any provision of this Contribution Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such other party.

IN CONSIDERATION THEREOF, intending to be legally bound, the parties have executed the Agreement to be effective on the [●] day of May 2025.

---

| | |
|:---|:---|
| ATTEST: | ATTEST: |
|  | The Company |
|  | WHITEFIBER, INC. |
| By: |  |
|  | Sam Tabar |
|  | Chief Executive Officer |
|  | Contributing Party |
|  | BIT DIGITAL, INC. |
| By: |  |
|  | Erke Huang |
|  | Chief Financial Officer |

---

**<u>SCHEDULE A</u>**

---

| | |
|:---|:---|
| &nbsp;&nbsp;WhiteFiber AI, Inc. | &nbsp;&nbsp;(Delaware) |
| &nbsp;&nbsp;WhiteFiber HPC, Inc. | &nbsp;&nbsp;(Delaware) |
| &nbsp;&nbsp;WhiteFiber Iceland ehf | &nbsp;&nbsp;(Iceland) |
| &nbsp;&nbsp;WhiteFiber Canada, Inc. | &nbsp;&nbsp;(Canada) |

---

## Exhibit 3.1

**Exhibit 3.1**

![](ex3-1_001.jpg)

![](ex3-1_002.jpg)

## Exhibit 3.2

**Exhibit 3.2**

**AMENDED AND RESTATED<br> articles of association<br> of<br> WhiteFiber, Inc.** 

![](ex3-2_001.jpg)

**Contents**

---

| | | |
|:---|:---|:---|
| **1** | **Definitions, interpretation and exclusion of Table A** | **1** |
| Definitions | Definitions | 1 |
| Interpretation | Interpretation | 3 |
| Exclusion of Table A Articles | Exclusion of Table A Articles | 4 |
| **2** | **Shares** | **4** |
| Power to issue Shares and options, with or without special rights | Power to issue Shares and options, with or without special rights | 4 |
| Rights attaching to Preference Shares | Rights attaching to Preference Shares | 5 |
| Power to issue fractions of a Share | Power to issue fractions of a Share | 6 |
| Power to pay commissions and brokerage fees | Power to pay commissions and brokerage fees | 6 |
| Trusts not recognised | Trusts not recognised | 7 |
| Security interests | Security interests | 7 |
| Power to vary class rights | Power to vary class rights | 7 |
| Effect of new Share issue on existing class rights | Effect of new Share issue on existing class rights | 7 |
| No bearer Shares or warrants | No bearer Shares or warrants | 7 |
| Treasury Shares | Treasury Shares | 8 |
| Rights attaching to Treasury Shares and related matters | Rights attaching to Treasury Shares and related matters | 8 |
| Register of Members | Register of Members | 8 |
| Annual Return | Annual Return | 9 |
| **3** | **Share certificates** | **9** |
| Issue of share certificates | Issue of share certificates | 9 |
| Renewal of lost or damaged share certificates | Renewal of lost or damaged share certificates | 9 |
| **4** | **Lien on Shares** | **10** |
| Nature and scope of lien | Nature and scope of lien | 10 |
| Company may sell Shares to satisfy lien | Company may sell Shares to satisfy lien | 10 |
| Authority to execute instrument of transfer | Authority to execute instrument of transfer | 10 |
| Consequences of sale of Shares to satisfy lien | Consequences of sale of Shares to satisfy lien | 10 |
| Application of proceeds of sale | Application of proceeds of sale | 11 |
| **5** | **Calls on Shares and forfeiture** | **11** |
| Power to make calls and effect of calls | Power to make calls and effect of calls | 11 |
| Time when call made | Time when call made | 11 |
| Liability of joint holders | Liability of joint holders | 11 |
| Interest on unpaid calls | Interest on unpaid calls | 12 |
| Deemed calls | Deemed calls | 12 |
| Power to accept early payment | Power to accept early payment | 12 |
| Power to make different arrangements at time of issue of Shares | Power to make different arrangements at time of issue of Shares | 12 |
| Notice of default | Notice of default | 12 |
| Forfeiture or surrender of Shares | Forfeiture or surrender of Shares | 12 |
| Disposal of forfeited or surrendered Share and power to cancel forfeiture or surrender | Disposal of forfeited or surrendered Share and power to cancel forfeiture or surrender | 13 |
| Effect of forfeiture or surrender on former Member | Effect of forfeiture or surrender on former Member | 13 |
| Evidence of forfeiture or surrender | Evidence of forfeiture or surrender | 13 |
| Sale of forfeited or surrendered Shares | Sale of forfeited or surrendered Shares | 13 |
| **6** | **Transfer of Shares** | **14** |
| Form of transfer | Form of transfer | 14 |
| Power to refuse registration | Power to refuse registration | 14 |
| Notice of refusal to register | Notice of refusal to register | 14 |
| Power to suspend registration | Power to suspend registration | 14 |
| Company may retain instrument of transfer | Company may retain instrument of transfer | 14 |

---

i

---

| | | |
|:---|:---|:---|
| **7** | **Transmission of Shares** | **14** |
| Persons entitled on death of a Member | Persons entitled on death of a Member | 14 |
| Registration of transfer of a Share following death or bankruptcy | Registration of transfer of a Share following death or bankruptcy | 15 |
| Indemnity | Indemnity | 15 |
| Rights of person entitled to a Share following death or bankruptcy | Rights of person entitled to a Share following death or bankruptcy | 15 |
| **8** | **Alteration of capital** | **15** |
| Increasing, consolidating, converting, dividing and cancelling share capital | Increasing, consolidating, converting, dividing and cancelling share capital | 15 |
| Dealing with fractions resulting from consolidation of Shares | Dealing with fractions resulting from consolidation of Shares | 16 |
| Reducing share capital | Reducing share capital | 16 |
| **9** | **Redemption and purchase of own Shares** | **16** |
| Power to issue redeemable Shares and to purchase own Shares | Power to issue redeemable Shares and to purchase own Shares | 16 |
| Power to pay for redemption or purchase in cash or in specie | Power to pay for redemption or purchase in cash or in specie | 17 |
| Effect of redemption or purchase of a Share | Effect of redemption or purchase of a Share | 17 |
| **10** | **Meetings of Members** | **18** |
| Annual and extraordinary general meetings | Annual and extraordinary general meetings | 18 |
| Power to call meetings | Power to call meetings | 18 |
| Content of notice | Content of notice | 18 |
| Period of notice | Period of notice | 19 |
| Record date and persons entitled to receive notice | Record date and persons entitled to receive notice | 19 |
| Accidental omission to give notice or non-receipt of notice | Accidental omission to give notice or non-receipt of notice | 19 |
| **11** | **Proceedings at meetings of Members** | **20** |
| Quorum | Quorum | 20 |
| Lack of quorum | Lack of quorum | 20 |
| Chairman | Chairman | 20 |
| Right of a Director to attend and speak | Right of a Director to attend and speak | 20 |
| Accommodation of Members attending meeting virtually | Accommodation of Members attending meeting virtually | 20 |
| Security | Security | 21 |
| Adjournment, postponement and cancellation | Adjournment, postponement and cancellation | 21 |
| Method of voting | Method of voting | 21 |
| Outcome of vote by show of hands | Outcome of vote by show of hands | 21 |
| Withdrawal of demand for a poll | Withdrawal of demand for a poll | 22 |
| Taking of a poll | Taking of a poll | 22 |
| Chairman's casting vote | Chairman's casting vote | 22 |
| Written resolutions | Written resolutions | 22 |
| Sole-Member Company | Sole-Member Company | 23 |
| **12** | **Voting rights of Members** | **23** |
| Right to vote | Right to vote | 23 |
| Rights of joint holders | Rights of joint holders | 23 |
| Representation of corporate Members | Representation of corporate Members | 23 |
| Member with mental disorder | Member with mental disorder | 24 |
| Objections to admissibility of votes | Objections to admissibility of votes | 24 |
| Form of proxy | Form of proxy | 24 |
| How and when proxy is to be delivered | How and when proxy is to be delivered | 25 |
| Voting by proxy | Voting by proxy | 26 |
| **13** | **Number of Directors** | **26** |

---

ii

---

| | | |
|:---|:---|:---|
| **14** | **Appointment, disqualification and removal of Directors** | **26** |
| First Directors | First Directors | 26 |
| No age limit | No age limit | 27 |
| Corporate Directors | Corporate Directors | 27 |
| No shareholding qualification | No shareholding qualification | 27 |
| Appointment of Directors | Appointment of Directors | 27 |
| Term of appointment | Term of appointment | 27 |
| Eligibility | Eligibility | 27 |
| Removal of Directors | Removal of Directors | 27 |
| Resignation of Directors | Resignation of Directors | 28 |
| Termination of the office of Director | Termination of the office of Director | 28 |
| **15** | **Alternate Directors** | **28** |
| Appointment and removal | Appointment and removal | 28 |
| Notices | Notices | 29 |
| Rights of alternate Director | Rights of alternate Director | 29 |
| Appointment ceases when the appointor ceases to be a Director | Appointment ceases when the appointor ceases to be a Director | 29 |
| Status of alternate Director | Status of alternate Director | 29 |
| Status of the Director making the appointment | Status of the Director making the appointment | 30 |
| **16** | **Powers of Directors** | **30** |
| Powers of Directors | Powers of Directors | 30 |
| Directors below the minimum number | Directors below the minimum number | 30 |
| Appointments to office | Appointments to office | 30 |
| Provisions for employees | Provisions for employees | 31 |
| Exercise of voting rights | Exercise of voting rights | 31 |
| Remuneration | Remuneration | 31 |
| Disclosure of information | Disclosure of information | 32 |
| **17** | **Delegation of powers** | **32** |
| Power to delegate any of the Directors' powers to a committee | Power to delegate any of the Directors' powers to a committee | 32 |
| Local boards | Local boards | 32 |
| Power to appoint an agent of the Company | Power to appoint an agent of the Company | 33 |
| Power to appoint an attorney or authorised signatory of the Company | Power to appoint an attorney or authorised signatory of the Company | 33 |
| Borrowing Powers | Borrowing Powers | 33 |
| Corporate Governance | Corporate Governance | 33 |
| **18** | **Meetings of Directors** | **34** |
| Regulation of Directors' meetings | Regulation of Directors' meetings | 34 |
| Calling meetings | Calling meetings | 34 |
| Notice of meetings | Notice of meetings | 34 |
| Use of technology | Use of technology | 34 |
| Quorum | Quorum | 34 |
| Chairman or deputy to preside | Chairman or deputy to preside | 34 |
| Voting | Voting | 34 |
| Recording of dissent | Recording of dissent | 35 |
| Written resolutions | Written resolutions | 35 |
| Validity of acts of Directors in spite of formal defect | Validity of acts of Directors in spite of formal defect | 35 |

---

iii

---

| | | |
|:---|:---|:---|
| **19** | **Permissible Directors' interests and disclosure** | **35** |
| Permissible interests subject to disclosure | Permissible interests subject to disclosure | 35 |
| Notification of interests | Notification of interests | 36 |
| Voting where a Director is interested in a matter | Voting where a Director is interested in a matter | 36 |
| **20** | **Minutes** | **36** |
| **21** | **Accounts and audit** | **36** |
| Auditors | Auditors | 37 |
| **22** | **Record dates** | **37** |
| **23** | **Dividends** | **37** |
| Source of dividends | Source of dividends | 37 |
| Declaration of dividends by Members | Declaration of dividends by Members | 38 |
| Payment of interim dividends and declaration of final dividends by Directors | Payment of interim dividends and declaration of final dividends by Directors | 38 |
| Apportionment of dividends | Apportionment of dividends | 38 |
| Right of set off | Right of set off | 39 |
| Power to pay other than in cash | Power to pay other than in cash | 39 |
| How payments may be made | How payments may be made | 39 |
| Dividends or other monies not to bear interest in absence of special rights | Dividends or other monies not to bear interest in absence of special rights | 40 |
| Dividends unable to be paid or unclaimed | Dividends unable to be paid or unclaimed | 40 |
| **24** | **Capitalisation of profits** | **40** |
| Capitalisation of profits or of any share premium account or capital redemption reserve; | Capitalisation of profits or of any share premium account or capital redemption reserve; | 40 |
| Applying an amount for the benefit of Members | Applying an amount for the benefit of Members | 40 |
| **25** | **Share Premium Account** | **40** |
| Directors to maintain share premium account | Directors to maintain share premium account | 40 |
| Debits to share premium account | Debits to share premium account | 41 |
| **26** | **Seal** | **41** |
| Company seal | Company seal | 41 |
| Duplicate seal | Duplicate seal | 41 |
| When and how seal is to be used | When and how seal is to be used | 41 |
| If no seal is adopted or used | If no seal is adopted or used | 41 |
| Power to allow non-manual signatures and facsimile printing of seal | Power to allow non-manual signatures and facsimile printing of seal | 42 |
| Validity of execution | Validity of execution | 42 |

---

iv

---

| | | |
|:---|:---|:---|
| **27** | **Indemnity** | **42** |
| Release | Release | 42 |
| Insurance | Insurance | 43 |
| **28** | **Notices** | **43** |
| Form of notices | Form of notices | 43 |
| Electronic communications | Electronic communications | 43 |
| Persons entitled to notices | Persons entitled to notices | 44 |
| Persons authorised to give notices | Persons authorised to give notices | 44 |
| Delivery of written notices | Delivery of written notices | 44 |
| Joint holders | Joint holders | 44 |
| Signatures | Signatures | 45 |
| Giving notice to a deceased or bankrupt Member | Giving notice to a deceased or bankrupt Member | 45 |
| Date of giving notices | Date of giving notices | 45 |
| Saving provision | Saving provision | 45 |
| **29** | **Authentication of Electronic Records** | **46** |
| Application of Articles | Application of Articles | 46 |
| Authentication of documents sent by Members by Electronic means | Authentication of documents sent by Members by Electronic means | 46 |
| Authentication of document sent by the Secretary or Officers of the Company by Electronic means | Authentication of document sent by the Secretary or Officers of the Company by Electronic means | 46 |
| Manner of signing | Manner of signing | 47 |
| Saving provision | Saving provision | 47 |
| **30** | **Transfer by way of continuation** | **47** |
| **31** | **Winding up** | **47** |
| Distribution of assets in specie | Distribution of assets in specie | 48 |
| No obligation to accept liability | No obligation to accept liability | 48 |
| **32** | **Amendment of Memorandum and Articles** | **48** |
| Power to change name or amend Memorandum | Power to change name or amend Memorandum | 48 |
| Power to amend these Articles | Power to amend these Articles | 48 |

---

v

**Companies Act (Revised)**

**Company Limited by Shares**

**Amended and Restated<br> Articles of Association**

**of**

**WhiteFiber, Inc.**

(Adopted by special resolution passed on [●])

1 Definitions, interpretation and exclusion of Table A

**Definitions**

1.1 In these Articles, the following definitions apply:

**Act** means the Companies Act (Revised) of the Cayman Islands, including any statutory modification or re-enactment thereof for the time being in force;

**ADS** means an American depository share representing an Ordinary Share;

**Articles** means, as appropriate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) these articles of association as amended from time to time: or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) two or more particular articles of these Articles;

and **Article** refers to a particular article of these Articles;

**Auditors** means the auditor or auditors for the time being of the Company;

**Bit Digital** means Bit Digital, Inc., an exempted company incorporated in the Cayman Islands with company number 319983;

**Board** means the board of Directors from time to time;

**Business Day** means a day when banks in Grand Cayman, the Cayman Islands are open for the transaction of normal banking business and for the avoidance of doubt, shall not include a Saturday, Sunday or public holiday in the Cayman Islands;

**Cayman Islands** means the British Overseas Territory of the Cayman Islands;

**Clear Days**, in relation to a period of notice, means that period excluding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the day when the notice is given or deemed to be given; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the day for which it is given or on which it is to take effect;

**Commission** means Securities and Exchange Commission of the United States of America or other federal agency for the time being administering the U.S. Securities Act;

**Company** means the above-named company;

**Default Rate** means ten per cent per annum;

**Designated Stock Exchanges** means Nasdaq Capital Market in the United States of America for so long as the Company's Shares or ADSs are there listed and any other stock exchange on which the Company's Shares or ADSs are listed for trading;

**Designated Stock Exchange Rules** means the relevant code, rules and regulations, as amended, from time to time, applicable as a result of the original and continued listing of any Shares or ADSs on the Designated Stock Exchanges;

**Directors** means the directors for the time being of the Company and the expression Director shall be construed accordingly;

**Electronic** has the meaning given to that term in the Electronic Transactions Act (Revised) of the Cayman Islands;

**Electronic Record** has the meaning given to that term in the Electronic Transactions Act (Revised) of the Cayman Islands;

**Electronic Signature** has the meaning given to that term in the Electronic Transactions Act (Revised) of the Cayman Islands;

**Fully Paid Up** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in relation to a Share with par value, means that the par value for that Share and any premium payable
in respect of the issue of that Share, has been fully paid or credited as paid in money or money's worth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in relation to a Share without par value, means that the agreed issue price for that Share has been fully
paid or credited as paid in money or money's worth;

**General Meeting** means a general meeting of the Company duly constituted in accordance with the Articles;

**Independent Director** means a Director who is an independent director as defined in the Designated Stock Exchange Rules as determined by the Board;

**Member** means any person or persons entered on the register of Members from time to time as the holder of a Share;

**Memorandum** means the memorandum of association of the Company as amended from time to time;

**month** means a calendar month;

**Officer** means a person appointed to hold an office in the Company including a Director, alternate Director or liquidator and excluding the Secretary;

**Ordinary Resolution** means a resolution of a General Meeting passed by a simple majority of votes cast by Members who (being entitled to do so) vote in person or by proxy at that meeting. The expression includes a unanimous written resolution;

**Ordinary Share** means an ordinary share in the capital of the Company;

**Partly Paid Up** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in relation to a Share with par value, that the par value for that Share and any premium payable in respect
of the issue of that Share, has not been fully paid or credited as paid in money or money's worth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in relation to a Share without par value, means that the agreed issue price for that Share has not been
fully paid or credited as paid in money or money's worth;

**Preference Share** means a preference share in the capital of the Company;

**Register of Members** means the register of Members maintained in accordance with the Act and includes (except where otherwise stated) any branch or duplicate register of Members;

**Secretary** means a person appointed to perform the duties of the secretary of the Company, including a joint, assistant or deputy secretary;

**Share** means a share, including an Ordinary Share and a Preference Share, in the capital of the Company and the expression:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) includes stock (except where a distinction between shares and stock is expressed or implied); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the context permits, also includes a fraction of a Share;

**Special Resolution** means a resolution of a General Meeting or a resolution of a meeting of the holders of any class of Shares in a class meeting duly constituted in accordance with the Articles in each case passed by a majority of votes not less than two-thirds of votes cast by Members who (being entitled to do so) vote in person or by proxy at that meeting. The expression includes a written resolution passed in accordance with the Act;

**Treasury Shares** means Shares held in treasury pursuant to the Act and Article 2.17; and

**U.S. Securities Act** means the Securities Act of 1933 of the United States of America, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

**Interpretation**

1.2 In the interpretation of these Articles, the following provisions apply unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A reference in these Articles to a statute is a reference to a statute of the Cayman Islands as known
by its short title, and includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any statutory modification, amendment or re-enactment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any subordinate legislation or regulations issued under that statute.

Without limitation to the preceding sentence, a reference to a revised Act of the Cayman Islands is taken to be a reference to the revision of that Act in force from time to time as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Headings are inserted for convenience only and do not affect the interpretation of these Articles, unless
there is ambiguity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a day on which any act, matter or thing is to be done under these Articles is not a Business Day, the
act, matter or thing must be done on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A word which denotes the singular also denotes the plural, a word which denotes the plural also denotes
the singular, and a reference to any gender also denotes the other genders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A reference to a **person** includes, as appropriate, a company, trust, partnership, joint venture,
association, body corporate or government agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Where a word or phrase is given a defined meaning another part of speech or grammatical form in respect
to that word or phrase has a corresponding meaning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All references to time are to be calculated by reference to time in the place where the Company's
registered office is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The words **written** and **in writing** include all modes of representing or reproducing words
in a visible form, but do not include an Electronic Record where the distinction between a document in writing and an Electronic Record
is expressed or implied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The words **including**, **include** and **in particular** or any similar expression are to be
construed without limitation.

1.3 The headings in these Articles are intended for convenience only and shall not affect the interpretation
of these Articles.

**Exclusion of Table A Articles**

1.4 The regulations contained in Table A in the First Schedule of the Act and any other regulations contained
in any statute or subordinate legislation are expressly excluded and do not apply to the Company.

---

| | |
|:---|:---|
| 2 | Shares |

---

**Power to issue Shares and options, with or without special rights**

2.1 Subject to Article 2.5 and the provisions of the Act and these Articles about the redemption and
 purchase of the Shares, the Directors have general and unconditional authority to allot (with or without confirming rights of
 renunciation), grant options over or otherwise deal with any unissued Shares to such persons, at such times and on such terms and
 conditions as they may decide. No Share may be issued at a discount except in accordance with the provisions of the Act.

2.2 Without limitation to the preceding Article, the Directors may so deal with the unissued Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either at a premium or at par; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with or without preferred, deferred or other special rights or restrictions, whether in regard to dividend,
voting, return of capital or otherwise.

2.3 Without limitation to the two preceding Articles, the Directors may refuse to accept any application for
Shares, and may accept any application in whole or in part, for any reason or for no reason.

2.4 Subject to Article 2.5, the Company may issue rights, options, warrants
or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or
receive any class of Shares or other securities in the Company at such times and on such terms and conditions as the Directors may decide.

2.5 For such period(s) of time that Bit Digital is a shareholder
of the Company, the Company must not issue or agree to issue any Preference Shares, or securities that may be convertible into Preference
Shares, without receiving the prior written consent of Bit Digital.

**Rights attaching to Preference Shares**

2.6 Before any Preference Shares of any series are
issued, the Directors shall fix, by resolution or resolutions, the following provisions of such series:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [the designation of such series and the number
of Preference Shares to constitute such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the shares of such series shall have voting rights, in addition
to any voting rights provided by the Act, and, if so, the terms of such voting rights, which may be general or limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividends, if any, payable on such series, whether any such dividends
shall be cumulative, and, if so, from what dates, the conditions and dates upon which such dividends shall be payable, the preference
or relation which such dividends shall bear to the dividends payable on any Shares of any other class of Shares or any other series of
Preference Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether the Preference Shares or such series shall be subject to redemption
by the Company, and, if so, the times, prices and other conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the amount or amounts payable upon Preference Shares of such series
upon, and the rights of the holders of such series in, a voluntary or involuntary liquidation, dissolution or winding up, or upon any
distribution of the assets, of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether the Preference Shares of such series shall be subject to the
operation of a retirement or sinking fund and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied
to the purchase or redemption of the Preference Shares of such series for retirement or other corporate purposes and the terms and provisions
relative to the operation of the retirement or sinking fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the Preference Shares of such series shall be convertible into,
or exchangeable for, Shares of any other class of Shares or any other series of Preference Shares or any other securities and, if so,
the price or prices or the rate or rates of conversion or exchange and the method, if any, of adjusting the same, and any other terms
and conditions of conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the limitations and restrictions, if any, to be effective while any
Preference Shares or such series are outstanding upon the payment of dividends or the making of other distributions on, and upon the purchase,
redemption or other acquisition by the Company of, the existing Shares or Shares of any other class of Shares or any other series of Preference
Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions or restrictions, if any, upon the creation of indebtedness
of the Company or upon the issue of any additional Shares, including additional shares of such series or of any other class of Shares
or any other series of Preference Shares; and

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other powers, preferences and relative, participating, optional
and other special rights, and any qualifications, limitations and restrictions of any other class of Shares or any other series of Preference
Shares.]

**Power to issue fractions of a Share**

2.7 Subject to the Act, the Company may issue fractions of a Share of any class. A fraction of a Share shall
be subject to and carry the corresponding fraction of liabilities (whether with respect to calls or otherwise), limitations, preferences,
privileges, qualifications, restrictions, rights and other attributes of a Share of that class of Shares.

**Power to pay commissions and brokerage fees**

2.8 The Company may pay a commission to any person in consideration of that person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) subscribing or agreeing to subscribe, whether absolutely or conditionally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) procuring or agreeing to procure subscriptions, whether absolute or conditional,

for any Shares. That commission may be satisfied by the payment of cash or the allotment of Fully Paid Up or Partly Paid Up Shares or partly in one way and partly in another.

2.9 The Company may employ a broker in the issue of its capital and pay him any proper commission or brokerage.

**Trusts not recognised**

2.10 Except as required by Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no person shall be recognised by the Company as holding any Share on any trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no person other than the Member shall be recognised by the Company as having any right in a Share.

**Security interests**

2.11 Notwithstanding the preceding Article, the Company may (but shall not be obliged to) recognise a security
interest of which it has actual notice over shares. The Company shall not be treated as having recognised any such security interest unless
it has so agreed in writing with the secured party.

**Power to vary class rights**

2.12 If the share capital is divided into different classes of Shares then, unless the terms on which a class
of Shares was issued state otherwise, the rights attaching to a class of Shares may only be varied if one of the following applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Members holding not less than two-thirds of the issued Shares of that class consent in writing to
the variation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the variation is made with the sanction of a Special Resolution passed at a separate general meeting of
the Members holding the issued Shares of that class.

2.13 For the purpose of Article 2.12(b), all the provisions of these Articles relating to general meetings
apply, mutatis mutandis, to every such separate meeting except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the necessary quorum shall be one or more persons holding, or representing by proxy, not less than one
third of the issued Shares of the class; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Member holding issued Shares of the class, present in person or by proxy or, in the case of a corporate
Member, by its duly authorised representative, may demand a poll.

2.14 For the purposes of a separate class meeting, the Directors may treat
two or more or all the classes of Shares as forming one class of Shares if the Directors consider that such classes of Shares would be
affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares.

**Effect of new Share issue on existing class rights**

2.15 Unless the terms on which a class of Shares was issued state otherwise,
the rights conferred on the Member holding Shares of any class shall not be deemed to be varied by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the creation or issue of further Shares ranking pari passu with the
existing Shares of that class; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the issuance of any Preference Shares which, for the avoidance of doubt,
may have such rights as the Directors may determine in accordance with Article 2.6.

**No bearer Shares or warrants**

2.16 The Company shall not issue Shares or warrants to bearers.

**Treasury Shares**

2.17 Shares that the Company purchases, redeems or acquires by way of surrender in accordance with the Act
shall be held as Treasury Shares and not treated as cancelled if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Directors so determine prior to the purchase, redemption or surrender of those shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the relevant provisions of the Memorandum and Articles and the Act are otherwise complied with.

**Rights attaching to Treasury Shares and related matters**

2.18 No dividend may be declared or paid, and no other distribution (whether in cash or otherwise) of the Company's
assets (including any distribution of assets to Members on a winding up) may be made to the Company in respect of a Treasury Share.

2.19 The Company shall be entered in the register of Members as the holder of the Treasury Shares. However:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall not be treated as a Member for any purpose and shall not exercise any right in respect
of the Treasury Shares, and any purported exercise of such a right shall be void; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Treasury Share shall not be voted, directly or indirectly, at any meeting of the Company and shall not
be counted in determining the total number of issued shares at any given time, whether for the purposes of these Articles or the Act.

2.20 Nothing in Article 2.18 prevents an allotment of Shares as Fully Paid Up bonus shares in respect of a
Treasury Share and Shares allotted as Fully Paid Up bonus shares in respect of a Treasury Share shall be treated as Treasury Shares.

2.21 Treasury Shares may be disposed of by the Company in accordance with the Act and otherwise on such terms
and conditions as the Directors determine.

**Register of Members**

2.22 The Company shall maintain or cause to be maintained the Register of Members in accordance with the Act.

2.23 The Directors may determine that the Company shall maintain one or more branch registers of Members in
accordance with the Act. The Directors may also determine which Register of Members shall constitute the principal register and which
shall constitute the branch register or registers, and to vary such determination from time to time.

2.24 The title to Shares may be evidenced and transferred in accordance with the laws applicable to the rules
and regulations of the Designated Stock Exchange and, for these purposes, the Register of Members may be maintained in accordance with
Article 40B of the Act.

**Annual Return**

2.25 The Directors in each calendar year shall prepare or cause to be prepared an annual return and declaration
setting forth the particulars required by the Act and shall deliver a copy thereof to the registrar of companies for the Cayman Islands.

3 Share certificates

**Issue of share certificates**

3.1 A Member shall only be entitled to a share certificate if the Directors resolve that share certificates
shall be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. If the Directors
resolve that share certificates shall be issued, upon being entered in the register of Members as the holder of a Share, the Directors
may issue to any Member:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) without payment, one certificate for all the Shares of each class held by that Member (and, upon transferring
a part of the Member's holding of Shares of any class, to a certificate for the balance of that holding); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) upon payment of such reasonable sum as the Directors may determine for every certificate after the first,
several certificates each for one or more of that Member's Shares.

3.2 Every certificate shall specify the number, class and distinguishing numbers (if any) of the Shares to
which it relates and whether they are Fully Paid Up or Partly Paid Up. A certificate may be executed under seal or executed in such other
manner as the Directors determine.

3.3 Every certificate shall bear legends required under the applicable laws, including the U.S. Securities
Act.

3.4 The Company shall not be bound to issue more than one certificate for Shares held jointly by several persons
and delivery of a certificate for a Share to one joint holder shall be a sufficient delivery to all of them.

**Renewal of lost or damaged share certificates**

3.5 If a share certificate is defaced, worn-out, lost or destroyed, it may be renewed on such terms (if any)
as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evidence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) indemnity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) payment of the expenses reasonably incurred by the Company in investigating the evidence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) payment of a reasonable fee, if any for issuing a replacement share certificate,

as the Directors may determine, and (in the case of defacement or wearing-out) on delivery to the Company of the old certificate.

4 Lien on Shares

**Nature and scope of lien**

4.1 The Company has a first and paramount lien on all Shares (whether Fully Paid Up or not) registered in
the name of a Member (whether solely or jointly with others). The lien is for all monies payable to the Company by the Member or the Member's
estate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either alone or jointly with any other person, whether or not that other person is a Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether or not those monies are presently payable.

4.2 At any time the Board may declare any Share to be wholly or partly exempt from the provisions of this
Article.

**Company may sell Shares to satisfy lien**

4.3 The Company may sell any Shares over which it has a lien if all of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sum in respect of which the lien exists is presently payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company gives notice to the Member holding the Share (or to the person entitled to it in consequence
of the death or bankruptcy of that Member) demanding payment and stating that if the notice is not complied with the Shares may be sold;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that sum is not paid within fourteen Clear Days after that notice is deemed to be given under these Articles,

and Shares to which this Article 4.3 applies shall be referred to as **Lien Default Shares**.

4.4 The Lien Default Shares may be sold in such manner as the Board determines.

4.5 To the maximum extent permitted by law, the Directors shall incur no personal liability to the Member
concerned in respect of the sale.

**Authority to execute instrument of transfer**

4.6 To give effect to a sale, the Directors may authorise any person to execute an instrument of transfer
of the Lien Default Shares sold to, or in accordance with the directions of, the purchaser.

4.7 The title of the transferee of the Lien Default Shares shall not be affected by any irregularity or invalidity
in the proceedings in respect of the sale.

**Consequences of sale of Shares to satisfy lien**

4.8 On a sale pursuant to the preceding Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the name of the Member concerned shall be removed from the register of Members as the holder of those
Lien Default Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that person shall deliver to the Company for cancellation the certificate (if any) for those Lien Default
Shares.

4.9 Notwithstanding the provisions of Article 4.8, such person shall remain liable to the Company for all
monies which, at the date of sale, were presently payable by him to the Company in respect of those Lien Default Shares.
That person shall also be liable to pay interest on those monies from the date of sale until payment at the rate at which interest was
payable before that sale or, failing that, at the Default Rate. The Board may waive payment wholly or in part or enforce payment without
any allowance for the value of the Lien Default Shares at the time of sale or for any consideration received on their disposal.

**Application of proceeds of sale**

4.10 The net proceeds of the sale, after payment of the costs, shall be applied in payment of so much of the
sum for which the lien exists as is presently payable. Any residue shall be paid to the person whose Lien Default Shares have been sold:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if no certificate for the Lien Default Shares was issued, at the date of the sale; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if a certificate for the Lien Default Shares was issued, upon surrender to the Company of that certificate
for cancellation

but, in either case, subject to the Company retaining a like lien for all sums not presently payable as existed on the Lien Default Shares before the sale.

5 Calls on Shares and forfeiture

**Power to make calls and effect of calls**

5.1 Subject to the terms of allotment, the Board may make calls on the Members in respect of any monies unpaid
on their Shares including any premium. The call may provide for payment to be by instalments. Subject to receiving at least 14 Clear Days'
notice specifying when and where payment is to be made, each Member shall pay to the Company the amount called on his Shares as required
by the notice.

5.2 Before receipt by the Company of any sum due under a call, that call may be revoked in whole or in part
and payment of a call may be postponed in whole or in part. Where a call is to be paid in instalments, the Company may revoke the call
in respect of all or any remaining instalments in whole or in part and may postpone payment of all or any of the remaining instalments
in whole or in part.

5.3 A Member on whom a call is made shall remain liable for that call notwithstanding the subsequent transfer
of the Shares in respect of which the call was made. He shall not be liable for calls made after he is no longer registered as Member
in respect of those Shares.

**Time when call made**

5.4 A call shall be deemed to have been made at the time when the resolution of the Directors authorising
the call was passed.

**Liability of joint holders**

5.5 Members registered as the joint holders of a Share shall be jointly and severally liable to pay all calls
in respect of the Share.

**Interest on unpaid calls**

5.6 If a call remains unpaid after it has become due and payable the person from whom it is due and payable
shall pay interest on the amount unpaid from the day it became due and payable until it is paid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the rate fixed by the terms of allotment of the Share or in the notice of the call; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if no rate is fixed, at the Default Rate.

The Directors may waive payment of the interest wholly or in part.

**Deemed calls**

5.7 Any amount payable in respect of a Share, whether on allotment or on a fixed date or otherwise, shall
be deemed to be payable as a call. If the amount is not paid when due the provisions of these Articles shall apply as if the amount had
become due and payable by virtue of a call.

**Power to accept early payment**

5.8 The Company may accept from a Member the whole or a part of the amount remaining unpaid on Shares held
by him although no part of that amount has been called up.

**Power to make different arrangements at time of issue of Shares**

5.9 Subject to the terms of allotment, the Directors may make arrangements on the issue of Shares to distinguish
between Members in the amounts and times of payment of calls on their Shares.

**Notice of default**

5.10 If a call remains unpaid after it has become due and payable the Directors may give to the person from
whom it is due not less than 14 Clear Days' notice requiring payment of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the amount unpaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any interest which may have accrued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any expenses which have been incurred by the Company due to that person's default.

5.11 The notice shall state the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the place where payment is to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a warning that if the notice is not complied with the Shares in respect of which the call is made will
be liable to be forfeited.

**Forfeiture or surrender of Shares**

5.12 If the notice given pursuant to Article 5.10 is not complied with, the Directors may, before the payment
required by the notice has been received, resolve that any Share the subject of that notice be forfeited. The forfeiture shall include
all dividends or other monies payable in respect of the forfeited Share and not paid before the forfeiture. Despite the foregoing, the
Board may determine that any Share the subject of that notice be accepted by the Company as surrendered by the Member holding that Share
in lieu of forfeiture.

**Disposal of forfeited or surrendered Share and power to cancel forfeiture or surrender**

5.13 A forfeited or surrendered Share may be sold, re-allotted or otherwise disposed of on such terms and in
such manner as the Board determine either to the former Member who held that Share or to any other person. The forfeiture or surrender
may be cancelled on such terms as the Directors think fit at any time before a sale, re-allotment or other disposition. Where, for the
purposes of its disposal, a forfeited or surrendered Share is to be transferred to any person, the Directors may authorise some person
to execute an instrument of transfer of the Share to the transferee.

**Effect of forfeiture or surrender on former Member**

5.14 On forfeiture or surrender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the name of the Member concerned shall be removed from the register of Members as the holder of those
Shares and that person shall cease to be a Member in respect of those Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that person shall surrender to the Company for cancellation the certificate (if any) for the forfeited
or surrendered Shares.

5.15 Despite the forfeiture or surrender of his Shares, that person shall remain liable to the Company for
all monies which at the date of forfeiture or surrender were presently payable by him to the Company in respect of those Shares together
with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) interest from the date of forfeiture or surrender until payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at the rate of which interest was payable on those monies before forfeiture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if no interest was so payable, at the Default Rate.

The Directors, however, may waive payment wholly or in part.

**Evidence of forfeiture or surrender**

5.16 A declaration, whether statutory or under oath, made by a Director or the Secretary shall be conclusive
evidence of the following matters stated in it as against all persons claiming to be entitled to forfeited Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that the person making the declaration is a Director or Secretary of the Company, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that the particular Shares have been forfeited or surrendered on a particular date.

Subject to the execution of an instrument of transfer, if necessary, the declaration shall constitute good title to the Shares.

**Sale of forfeited or surrendered Shares**

5.17 Any person to whom the forfeited or surrendered Shares are disposed of shall not be bound to see to the
application of the consideration, if any, of those Shares nor shall his title to the Shares be affected by any irregularity
in, or invalidity of the proceedings in respect of, the forfeiture, surrender or disposal of those Shares.

6 Transfer of Shares

**Form of transfer**

6.1 Subject to the following Articles about the transfer of Shares, and provided that such transfer complies
with applicable rules of the SEC, the Designated Stock Exchange and federal and state securities laws of the United States, a Member may
transfer Shares to another person by completing an instrument of transfer in a common form or in a form prescribed by the Designated Stock
Exchange or in any other form approved by the Directors, executed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the Shares are Fully Paid Up, by or on behalf of that Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the Shares are partly paid, by or on behalf of that Member and the transferee.

6.2 The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered
into the Register of Members.

**Power to refuse registration**

6.3 The Directors may refuse to register any transfer of Shares at their discretion.

6.4 If the Shares in question were issued in conjunction with rights, options or warrants issued pursuant
to Article 2.4 on terms that one cannot be transferred without the other, the Directors shall refuse to register the transfer of any such
Share without evidence satisfactory to them of the like transfer of such option or warrant.

**Notice of refusal to register**

6.5 If the Directors refuse to register a transfer of any Shares, they shall within two months after the date
on which the instrument of transfer was lodged with the Company send to each of the transferor and the transferee notice of the refusal.

**Power to suspend registration**

6.6 The Directors may suspend registration of the transfer of Shares at such times and for such periods, not
exceeding 45 days in any calendar year, as they determine.

**Company may retain instrument of transfer**

6.7 The Company shall be entitled to retain any instrument of transfer which is registered; but an instrument
of transfer which the Directors refuse to register shall be returned to the person lodging it when notice of the refusal is given.

7 Transmission of Shares

**Persons entitled on death of a Member**

7.1 If a Member dies, the only persons recognised by the Company as having any title to the deceased Members'
interest are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the deceased Member was a joint holder, the survivor or survivors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the deceased Member was a sole holder, that Member's personal representative or representatives.

7.2 Nothing in these Articles shall release the deceased Member's estate from any liability in respect
of any Share, whether the deceased was a sole holder or a joint holder.

**Registration of transfer of a Share following death or bankruptcy**

7.3 A person becoming entitled to a Share in consequence of the death or bankruptcy of a Member may elect
to do either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to become the holder of the Share; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to transfer the Share to another person.

7.4 That person must produce such evidence of his entitlement as the Directors may properly require.

7.5 If the person elects to become the holder of the Share, he must give notice to the Company to that effect.
For the purposes of these Articles, that notice shall be treated as though it were an executed instrument of transfer.

7.6 If the person elects to transfer the Share to another person then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Share is Fully Paid Up, the transferor must execute an instrument of transfer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Share is nil or Partly Paid Up, the transferor and the transferee must execute an instrument of
transfer.

7.7 All the Articles relating to the transfer of Shares shall apply to the notice or, as appropriate, the
instrument of transfer.

**Indemnity**

7.8 A person registered as a Member by reason of the death or bankruptcy of another Member shall indemnify
the Company and the Directors against any loss or damage suffered by the Company or the Directors as a result of that registration.

**Rights of person entitled to a Share following death or bankruptcy**

7.9 A person becoming entitled to a Share by reason of the death or bankruptcy of a Member shall have the
rights to which he would be entitled if he were registered as the holder of the Share. But, until he is registered as Member in respect
of the Share, he shall not be entitled to attend or vote at any meeting of the Company or at any separate meeting of the holders of that
class of Shares.

8 Alteration of capital

**Increasing, consolidating, converting, dividing and cancelling share capital**

8.1 To the fullest extent permitted by the Act, the Company may by Ordinary Resolution do any of the following
and amend its Memorandum for that purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by new Shares of the amount fixed by that Ordinary Resolution and with the
attached rights, priorities and privileges set out in that Ordinary Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing
Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of its Paid Up Shares into stock, and reconvert that stock into Paid Up Shares of any
denomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) sub-divide its Shares or any of them into Shares of an amount smaller than that fixed by the Memorandum,
so, however, that in the sub-division, the proportion between the amount paid and the amount, if any, unpaid on each reduced Share shall
be the same as it was in case of the Share from which the reduced Share is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel Shares which, at the date of the passing of that Ordinary Resolution, have not been taken or agreed
to be taken by any person, and diminish the amount of its share capital by the amount of the Shares so cancelled or, in the case of Shares
without nominal par value, diminish the number of Shares into which its capital is divided.

**Dealing with fractions resulting from consolidation of Shares**

8.2 Whenever, as a result of a consolidation of Shares, any Members would become entitled to fractions of
a Share the Directors may on behalf of those Members deal with the fractions as it thinks fit, including (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either round up or down the fraction to the nearest whole number, such rounding to be determined by the
Directors acting in their sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sell the Shares representing the fractions for the best price reasonably obtainable to any person (including,
subject to the provisions of the Act, the Company); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) distribute the net proceeds in due proportion among those Members.

8.3 For the purposes of Article 8.2, the Directors may authorise some person to execute an instrument of transfer
of the Shares to, in accordance with the directions of, the purchaser. The transferee shall not be bound to see to the application of
the purchase money nor shall the transferee's title to the Shares be affected by any irregularity in, or invalidity of, the proceedings
in respect of the sale.

**Reducing share capital**

8.4 Subject to the Act and to any rights for the time being conferred on the Members holding a particular
class of Shares, the Company may, by Special Resolution, reduce its share capital in any way.

9 Redemption and purchase of own Shares

**Power to issue redeemable Shares and to purchase own Shares**

9.1 Subject to the Act and to any rights for the time being conferred on the Members holding a particular
class of Shares, the Company may by its Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares that are to be redeemed or liable to be redeemed, at the option of the Company or the Member
holding those redeemable Shares, on the terms and in the manner its Directors determine before the issue of those Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with the consent by Special Resolution of the Members holding Shares of a particular class, vary the rights
attaching to that class of Shares so as to provide that those Shares are to be redeemed or are liable to be redeemed at the option of
the Company on the terms and in the manner which the Directors determine at the time of such variation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) purchase all or any of its own Shares of any class including any redeemable Shares on the terms and in
the manner which the Directors determine at the time of such purchase.

The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner authorised by the Act, including out of any combination of the following: capital, its profits and the proceeds of a fresh issue of Shares.

**Power to pay for redemption or purchase in cash or in specie**

9.2 When making a payment in respect of the redemption or purchase of Shares, the Directors may make the payment
in cash or *in specie* (or partly in one and partly in the other) if so authorised by the terms of the allotment of those Shares
or by the terms applying to those Shares in accordance with Article 9.1, or otherwise by agreement with the Member holding those Shares.

**Effect of redemption or purchase of a Share**

9.3 Upon the date of redemption or purchase of a Share:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Member holding that Share shall cease to be entitled to any rights in respect of the Share other than
the right to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the price for the Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any dividend declared in respect of the Share prior to the date of redemption or purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Member's name shall be removed from the register of Members with respect to the Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Share shall be cancelled or held as a Treasury Share, as the Directors may determine.

9.4 For the purpose of Article 9.3, the date of redemption or purchase is the date when the Member's name
is removed from the register of Members with respect to the Shares the subject of the redemption or purchase.

10 Meetings of Members

**Annual and extraordinary general meetings**

10.1 The Company may, but shall not (unless required by the Designated Stock Exchange Rules) be obligated to,
in each year hold a general meeting as an annual general meeting, which, if held, shall be convened by the Board, in accordance with these
Articles.

10.2 All general meetings other than annual general meetings shall be called extraordinary general meetings.

**Power to call meetings**

10.3 The Directors may call a general meeting at any time.

10.4 If there are insufficient Directors to constitute a quorum and the remaining Directors are unable to agree
on the appointment of additional Directors, the Directors must call a general meeting for the purpose of appointing additional Directors.

10.5 The Directors must also call a general meeting if requisitioned in the manner set out in the next two
Articles.

10.6 The requisition must be in writing and given by one or more Members who together hold at least ten per
cent of the rights to vote at such general meeting.

10.7 The requisition must also:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the purpose of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be signed by or on behalf of each requisitioner (and for this purpose each joint holder shall be obliged
to sign). The requisition may consist of several documents in like form signed by one or more of the requisitioners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be delivered in accordance with the notice provisions.

10.8 Should the Directors fail to call a general meeting within 21 Clear Days' from the date of receipt
of a requisition, the requisitioners or any of them may call a general meeting within three months after the end of that period.

10.9 Without limitation to the foregoing, if there are insufficient Directors to constitute a quorum and the
remaining Directors are unable to agree on the appointment of additional Directors, any one or more Members who together hold at least
five per cent of the rights to vote at a general meeting may call a general meeting for the purpose of considering the business specified
in the notice of meeting which shall include as an item of business the appointment of additional Directors.

10.10 If the Members call a meeting under the above provisions, the Company shall reimburse their reasonable
expenses.

**Content of notice**

10.11 Notice of a general meeting shall specify each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the date and the hour of the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the meeting will be held virtually, at a physical place or both;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the meeting is to be held in any part at a physical place, the address of such place;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the meeting is to be held in two or more places or in any part virtually, the technology that will
be used to facilitate the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to paragraph (f) and the requirements of (to the extent applicable) the Designated Stock Exchange
Rules, the general nature of the business to be transacted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if a resolution is proposed as a Special Resolution, the text of that resolution.

10.12 In each notice there shall appear with reasonable prominence the following statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that a Member who is entitled to attend and vote is entitled to appoint one or more proxies to attend
and vote instead of that Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that a proxyholder need not be a Member.

**Period of notice**

10.13 At least ten (10) days' notice (exclusive of the day on which the notice is served or deemed to be served,
but inclusive of the day for which the notice is given) of any general meeting must be given to Members.

10.14 Subject to the Act, a meeting may be convened on shorter notice, subject to the Act with the consent of
the Member or Members who, individually or collectively, hold at least ninety per cent of the voting rights of all those who have a right
to vote at that meeting.

**Record date and persons entitled to receive notice**

10.15 Subject to the provisions of these Articles and to any restrictions imposed on any Shares, the notice
shall be given to the following people:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Members

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) persons entitled to a Share in consequence of the death or bankruptcy of a Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Auditors.

10.16 The Board may determine that the Members entitled to receive notice of and vote at a meeting are those
persons entered on the register of Members at the close of business on a day determined by the Board.

**Accidental omission to give notice or non-receipt of notice**

10.17 Proceedings at a meeting shall not be invalidated by the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an accidental failure to give notice of the meeting to any person entitled to notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) non-receipt of notice of the meeting by any person entitled to notice.

10.18 In addition, where a notice of meeting is published on a website proceedings at the meeting shall not
be invalidated merely because it is accidentally published:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in a different place on the website; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for part only of the period from the date of the notification until the conclusion of the meeting to which
the notice relates.

11 Proceedings at meetings of Members

**Quorum**

11.1 Save as provided in the following Article, no business shall be transacted at any meeting unless a quorum
is present in person or by proxy. A quorum is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Company has only one Member: that Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Company has more than one Member: one or more Members holding Shares that represent not less than
one-third of the votes that may be cast by holders of the outstanding Shares carrying the right to vote at such general meeting.

**Lack of quorum**

11.2 If a quorum is not present within fifteen minutes of the time appointed for the meeting, or if at any
time during the meeting it becomes inquorate, then the following provisions apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the meeting was requisitioned by Members, it shall be cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In any other case, the meeting shall stand adjourned to the same time and place seven days hence, or to
such other time or place as is determined by the Directors. If a quorum is not present within fifteen minutes of the time appointed for
the adjourned meeting, then the Members present in person or by proxy shall constitute a quorum.

**Chairman**

11.3 The chairman of a general meeting shall be the chairman of the Board or such other person as the Directors
may determine. Absent any such person being present within fifteen minutes of the time appointed for the meeting, the Directors present
shall elect one of their number to chair the meeting.

11.4 If no Director is present within fifteen minutes of the time appointed for the meeting, or if no Director
is willing to act as chairman, the Members present in person or by proxy and entitled to vote shall choose one of their number to chair
the meeting.

**Right of a Director to attend and speak**

11.5 Even if a Director is not a Member, he shall be entitled to attend and speak at any general meeting and
at any separate meeting of Members holding a particular class of Shares.

**Accommodation of Members attending meeting virtually**

11.6 A Member entitled to receive notice and attend a meeting will be deemed to be in attendance at such meeting
despite their attendance being virtual if adequate facilities are available to ensure that the Member is able to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) participate in the business for which the meeting has been convened; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) hear all that happens at the meeting.

**Security**

11.7 In addition to any measures which the Board may be required to take due to the location or venue of the
meeting, the Board may make any arrangement and impose any restriction it considers appropriate and reasonable in the circumstances to
ensure the security of a meeting including, without limitation, the searching of any person attending the meeting and the imposing of
restrictions on the items of personal property that may be taken into the meeting place. The Board may refuse entry to, or eject from,
a meeting a person who refuses to comply with any such arrangements or restrictions.

**Adjournment, postponement and cancellation**

11.8 A meeting may be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) postponed or cancelled prior to the meeting at the discretion of the Directors by written notice provided
to all persons entitled to attend the meeting, unless the meeting was requisitioned by Members or otherwise called by Members pursuant
to Article 10.8; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adjourned, with or without an appointed date for resumption, at any time during the meeting at the discretion
of the chairman with the consent of the Members constituting a quorum.

11.9 The chairman must adjourn a meeting if so directed by Members constituting a quorum at the meeting.

11.10 No business can be transacted at an adjourned meeting other than business which might properly have been
transacted at the original meeting.

11.11 Should a meeting be adjourned for more than 7 Clear Days, whether because of a lack of quorum or otherwise,
Members shall be given at least seven Clear Days' notice of the date, time and place of the adjourned meeting and the general nature of
the business to be transacted. Otherwise it shall not be necessary to give any notice of the adjournment.

**Method of voting**

11.12 A resolution put to the vote of the meeting shall be decided on a show of hands unless before, or on,
the declaration of the result of the show of hands, a poll is duly demanded. Subject to the Act, a poll may be demanded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by the chairman of the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by at least two Members having the right to vote on the resolutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by any Member or Members present who, individually or collectively, hold at least ten per cent of the
voting rights of all those who have a right to vote on the resolution.

**Outcome of vote by show of hands**

11.13 Unless a poll is duly demanded, a declaration by the chairman as to the result of a resolution and an
entry to that effect in the minutes of the meeting shall be conclusive evidence of the outcome of a show of hands without
proof of the number or proportion of the votes recorded in favour of or against the resolution.

**Withdrawal of demand for a poll**

11.14 The demand for a poll may be withdrawn before the poll is taken, but only with the consent of the chairman.
The chairman shall announce any such withdrawal to the meeting and, unless another person forthwith demands a poll, any earlier show of
hands on that resolution shall be treated as the vote on that resolution; if there has been no earlier show of hands, then the resolution
shall be put to the vote of the meeting.

**Taking of a poll**

11.15 A poll demanded on the question of adjournment shall be taken immediately.

11.16 A poll demanded on any other question shall be taken either immediately or at an adjourned meeting at
such time and place as the chairman directs, not being more than thirty Clear Days after the poll was demanded.

11.17 The demand for a poll shall not prevent the meeting continuing to transact any business other than the
question on which the poll was demanded.

11.18 A poll shall be taken in such manner as the chairman directs. He may appoint scrutineers (who need not
be Members) and fix a place and time for declaring the result of the poll. If, through the aid of technology, the meeting is held virtually
or in more than place, the chairman may appoint scrutineers virtually and in more than place; but if he considers that the poll cannot
be effectively monitored at that meeting, the chairman shall adjourn the holding of the poll to a date, place and time when that can occur.

**Chairman's casting vote**

11.19 In the case of an equality of votes, whether on a show of hands or on a poll, the Chairman of the meeting
at which the show of hands takes place or at which the poll is demanded shall not be entitled to a second or casting vote.

**Written resolutions**

11.20 Members may pass a resolution in writing without holding a meeting if the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Members entitled to vote are given notice of the resolution as if the same were being proposed at
a meeting of Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Members entitled so to vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) sign a document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sign several documents in the like form each signed by one or more of those Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the signed document or documents is or are delivered to the Company, including, if the Company so nominates,
by delivery of an Electronic Record by Electronic means to the address specified for that purpose.

Such written resolution shall be as effective as if it had been passed at a meeting of the Members entitled to vote duly convened and held.

11.21 If a written resolution is described as a Special Resolution or as an Ordinary Resolution, it has effect
accordingly.

11.22 The Directors may determine the manner in which written resolutions shall be put to Members. In particular,
they may provide, in the form of any written resolution, for each Member to indicate, out of the number of votes the Member would have
been entitled to cast at a meeting to consider the resolution, how many votes he wishes to cast in favour of the resolution and how many
against the resolution or to be treated as abstentions. The result of any such written resolution shall be determined on the same basis
as on a poll.

**Sole-Member Company**

11.23 If the Company has only one Member, and the Member records in writing his decision on a question, that
record shall constitute both the passing of a resolution and the minute of it.

12 Voting rights of Members

**Right to vote**

12.1 Unless their Shares carry no right to vote, or unless a call or other amount presently payable has not
been paid, all Members are entitled to vote at a general meeting, whether on a show of hands or on a poll, and all Members holding Shares
of a particular class of Shares are entitled to vote at a meeting of the holders of that class of Shares.

12.2 Members may vote in person or by proxy.

12.3 On a show of hands, every Member shall have one vote. For the avoidance of doubt, an individual who represents
two or more Members, including a Member in that individual's own right, that individual shall be entitled to a separate vote for
each Member.

12.4 On a poll, a Member shall have one vote for each Share they hold, unless
any Share carries special voting rights.

12.5 No Member is bound to vote on his Shares or any of them; nor is he bound to vote each of his Shares in
the same way.

**Rights of joint holders**

12.6 If Shares are held jointly, only one of the joint holders may vote. If more than one of the joint holders
tenders a vote, the vote of the holder whose name in respect of those Shares appears first in the register of Members shall be accepted
to the exclusion of the votes of the other joint holder.

**Representation of corporate Members**

12.7 Save where otherwise provided, a corporate Member must act by a duly authorised representative.

12.8 A corporate Member wishing to act by a duly authorised representative must identify that person to the
Company by notice in writing.

12.9 The authorisation may be for any period of time, and must be delivered to the Company before the commencement
of the meeting at which it is first used.

12.10 The Directors of the Company may require the production of any evidence which they consider necessary
to determine the validity of the notice.

12.11 Where a duly authorised representative is present at a meeting that Member is deemed to be present in
person; and the acts of the duly authorised representative are personal acts of that Member.

12.12 A corporate Member may revoke the appointment of a duly authorised representative at any time by notice
to the Company; but such revocation will not affect the validity of any acts carried out by the duly authorised representative before
the Directors of the Company had actual notice of the revocation.

**Member with mental disorder**

12.13 A Member in respect of whom an order has been made by any court having jurisdiction (whether in the Cayman
Islands or elsewhere) in matters concerning mental disorder may vote, whether on a show of hands or on a poll, by that Member's
receiver, *curator bonis* or other person authorised in that behalf appointed by that court.

12.14 For the purpose of the preceding Article, evidence to the satisfaction of the Directors of the authority
of the person claiming to exercise the right to vote must be received not less than 24 hours before holding the relevant meeting or the
adjourned meeting in any manner specified for the delivery of forms of appointment of a proxy, whether in writing or by Electronic means.
In default, the right to vote shall not be exercisable.

**Objections to admissibility of votes**

12.15 An objection to the validity of a person's vote may only be raised at the meeting or at the adjourned
meeting at which the vote is sought to be tendered. Any objection duly made shall be referred to the chairman whose decision shall be
final and conclusive.

**Form of proxy**

12.16 An instrument appointing a proxy shall be in any common form or in any other form approved by the Directors.

12.17 The instrument must be in writing and signed in one of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by the Member; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by the Member's authorised attorney; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Member is a corporation or other body corporate, under seal or signed by an authorised officer,
secretary or attorney.

If the Directors so resolve, the Company may accept an Electronic Record of that instrument delivered in the manner specified below and otherwise satisfying the Articles about authentication of Electronic Records.

12.18 The Directors may require the production of any evidence which they consider necessary to determine the
validity of any appointment of a proxy.

12.19 A Member may revoke the appointment of a proxy at any time by notice to the Company duly signed in accordance
with Article 12.17.

12.20 No revocation by a Member of the appointment of a proxy made in accordance with Article 12.19 will affect
the validity of any acts carried out by the relevant proxy before the Directors of the Company had actual notice of the revocation.

**How and when proxy is to be delivered**

12.21 Subject to the following Articles, the Directors may, in the notice convening any meeting or adjourned
meeting, or in an instrument of proxy sent out by the Company, specify the manner by which the instrument appointing a proxy shall be
deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting
to which the proxy relates) at which the instrument appointing a proxy shall be deposited. In the absence of any such direction from the
Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the form of appointment
of a proxy and any authority under which it is signed (or a copy of the authority certified notarially or in any other way approved by
the Directors) must be delivered so that it is received by the Company before the time for holding the meeting or adjourned meeting at
which the person named in the form of appointment of proxy proposes to vote. They must be delivered in either of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of an instrument in writing, it must be left at or sent by post:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the registered office of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to such other place within the Cayman Islands specified in the notice convening the meeting or in any
form of appointment of proxy sent out by the Company in relation to the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, pursuant to the notice provisions, a notice may be given to the Company in an Electronic Record, an
Electronic Record of an appointment of a proxy must be sent to the address specified pursuant to those provisions unless another address
for that purpose is specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the notice convening the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any form of appointment of a proxy sent out by the Company in relation to the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any invitation to appoint a proxy issued by the Company in relation to the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding Article 12.21(a) and Article 12.21(b), the chairman of the Company may, in any event at
his discretion, direct that an instrument of proxy shall be deemed to have been duly deposited.

12.22 Where a poll is taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if it is taken more than seven Clear Days after it is demanded, the form of appointment of a proxy and
any accompanying authority (or an Electronic Record of the same) must be delivered in accordance with Article 12.21 before the time appointed
for the taking of the poll;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if it to be taken within seven Clear Days after it was demanded, the form of appointment of a proxy and
any accompanying authority (or an Electronic Record of the same) must be delivered in accordance with Article 12.21 before the time appointed
for the taking of the poll.

12.23 If the form of appointment of proxy is not delivered on time, it is invalid.

12.24 When two or more valid but differing appointments of proxy are delivered or received in respect of the
same Share for use at the same meeting and in respect of the same matter, the one which is last validly delivered or received (regardless
of its date or of the date of its execution) shall be treated as replacing and revoking the other or others as regards that Share. lf
the Company is unable to determine which appointment was last validly delivered or received, none of them shall be treated as valid in
respect of that Share.

12.25 The Board may at the expense of the Company send forms of appointment of proxy to the Members by post
(that is to say, pre-paying and posting a letter), or by Electronic communication or otherwise (with or without provision for their return
by pre-paid post) for use at any general meeting or at any separate meeting of the holders of any class of Shares, either blank or nominating
as proxy in the alternative any one or more of the Directors or any other person. lf for the purpose of any meeting invitations to appoint
as proxy a person or one of a number of persons specified in the invitations are issued at the Company's expense, they shall be
issued to all (and not to some only) of the Members entitled to be sent notice of the meeting and to vote at it. The accidental omission
to send such a form of appointment or to give such an invitation to, or the non-receipt of such form of appointment by, any Member entitled
to attend and vote at a meeting shall not invalidate the proceedings at that meeting

**Voting by proxy**

12.26 A proxy shall have the same voting rights at a meeting or adjourned meeting as the Member would have had
except to the extent that the instrument appointing him limits those rights. Notwithstanding the appointment of a proxy, a Member may
attend and vote at a meeting or adjourned meeting. If a Member votes on any resolution a vote by his proxy on the same resolution, unless
in respect of different Shares, shall be invalid.

12.27 The instrument appointing a proxy to vote at a meeting shall be deemed also to confer authority to demand
or join in demanding a poll and, for the purposes of Article 11.13, a demand by a person as proxy for a Member shall be the same as a
demand by a Member. Such appointment shall not confer any further right to speak at the meeting, except with the permission of the chairman
of the meeting.

13 Number of Directors

13.1 There shall be a Board consisting of not less than one person provided however that the Company may by
Ordinary Resolution increase or reduce the limits in the number of Directors. Unless fixed by Ordinary Resolution, the maximum number
of Directors shall be unlimited.

14 Appointment, disqualification and removal of Directors

**First Directors**

14.1 The first Directors shall be appointed in writing by the subscriber or subscribers to the Memorandum,
or a majority of them.

**No age limit**

14.2 There is no age limit for Directors save that they must be at least eighteen years of age.

**Corporate Directors**

14.3 Unless prohibited by law, a body corporate may be a Director. If a body corporate is a Director, the Articles
about representation of corporate Members at general meetings apply, mutatis mutandis, to the Articles about Directors' meetings.

**No shareholding qualification**

14.4 Unless a shareholding qualification for Directors is fixed by Ordinary Resolution, no Director shall be
required to own Shares as a condition of his appointment.

**Appointment of Directors**

14.5 A Director may be appointed by Ordinary Resolution or by the Directors. Any appointment may be to fill
a vacancy or as an additional Director.

14.6 A remaining Director may appoint a Director even though there is not a quorum of Directors.

14.7 No appointment can cause the number of Directors to exceed the maximum (if one is set); and any such appointment
shall be invalid.

14.8 For so long as Shares or ADSs are listed on a Designated Stock Exchange, the Directors shall include at
least such number of Independent Directors as applicable law, rules or regulations of the Designated Stock Exchange Rules require as determined
by the Board.

**Term of appointment**

14.9 Each Director appointed shall hold office until the next annual general meeting (unless re appointed
 by Ordinary Resolution at such annual general meeting) or such time as they resign, are removed from office by Ordinary Resolution
 or otherwise ceases to be eligible to be a director of the Company.

**Eligibility**

14.10 No person (other than a Director retiring in accordance with these Articles) shall be appointed or re-appointed
a Director at any general meeting unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he is recommended by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not less than seven nor more than forty-two Clear Days before the date appointed for the meeting, a Member
(other than the person to be proposed) entitled to vote at the meeting has given to the Company notice of his intention to propose a resolution
for the appointment of that person, stating the particulars which would, if he were so appointed, be required to be included in the Company's
register of Directors and a notice executed by that person of his willingness to be appointed.

**Removal of Directors**

14.11 A Director may be removed by Ordinary Resolution.

**Resignation of Directors**

14.12 A Director may at any time resign office by giving to the Company notice in writing or, if permitted pursuant
to the notice provisions, in an Electronic Record delivered in either case in accordance with those provisions.

14.13 Unless the notice specifies a different date, the Director shall be deemed to have resigned on the date
that the notice is delivered to the Company.

**Termination of the office of Director**

14.14 A Director may retire from office as a Director by giving notice in writing to that effect to the Company
at the registered office, which notice shall be effective upon such date as may be specified in the notice, failing which upon delivery
to the registered office.

14.15 Without prejudice to the provisions in these Articles for retirement (by rotation or otherwise), a Director's
office shall be terminated forthwith if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he is prohibited by the law of the Cayman Islands from acting as a Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he is made bankrupt or makes an arrangement or composition with his creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he resigns his office by notice to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) he only held office as a Director for a fixed term and such term expires; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) dies or in the opinion of a registered medical practitioner by whom he is being treated he becomes physically
or mentally incapable of acting as a Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) he is given notice by the majority of the other Directors (not being less than two in number) to vacate
office (without prejudice to any claim for damages for breach of any agreement relating to the provision of the services of such Director);
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) he is made subject to any law relating to mental health or incompetence, whether by court order or otherwise;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) without the consent of the other Directors, he is absent from meetings of Directors for a continuous period
of six months.

15 Alternate Directors

**Appointment and removal**

15.1 Any Director may appoint any other person, including another Director, to act in his place as an alternate
Director. No appointment shall take effect until the Director has given notice of the appointment to the Board.

15.2 A Director may revoke his appointment of an alternate at any time. No revocation shall take effect until
the Director has given notice of the revocation to the Board.

15.3 A notice of appointment or removal of an alternate Director shall be effective only if given to the Company
by one or more of the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by notice in writing in accordance with the notice provisions contained in these Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Company has a facsimile address for the time being, by sending by facsimile transmission to that
facsimile address a facsimile copy or, otherwise, by sending by facsimile transmission to the facsimile address of the Company's registered
office a facsimile copy (in either case, the facsimile copy being deemed to be the notice unless Article 29.7 applies), in which event
notice shall be taken to be given on the date of an error-free transmission report from the sender's fax machine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Company has an email address for the time being, by emailing to that email address a scanned copy
of the notice as a PDF attachment or, otherwise, by emailing to the email address provided by the Company's registered office a scanned
copy of the notice as a PDF attachment (in either case, the PDF version being deemed to be the notice unless Article 29.7 applies), in
which event notice shall be taken to be given on the date of receipt by the Company or the Company's registered office (as appropriate)
in readable form; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if permitted pursuant to the notice provisions, in some other form of approved Electronic Record delivered
in accordance with those provisions in writing.

**Notices**

15.4 All notices of meetings of Directors shall continue to be given to the appointing Director and not to
the alternate.

**Rights of alternate Director**

15.5 An alternate Director shall be entitled to attend and vote at any Board meeting or meeting of a committee
of the Directors at which the appointing Director is not personally present, and generally to perform all the functions of the appointing
Director in his absence. An alternate Director, however, is not entitled to receive any remuneration from the Company for services rendered
as an alternate Director.

**Appointment ceases when the appointor ceases to be a Director**

15.6 An alternate Director shall cease to be an alternate Director if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Director who appointed him ceases to be a Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Director who appointed him revokes his appointment by notice delivered to the Board or to the registered
office of the Company or in any other manner approved by the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any event happens in relation to him which, if he were a Director of the Company, would cause his office
as Director to be vacated.

**Status of alternate Director**

15.7 An alternate Director shall carry out all functions of the Director who made the appointment.

15.8 Save where otherwise expressed, an alternate Director shall be treated as a Director under these Articles.

15.9 An alternate Director is not the agent of the Director appointing him.

15.10 An alternate Director is not entitled to any remuneration for acting as alternate Director.

**Status of the Director making the appointment**

15.11 A Director who has appointed an alternate is not thereby relieved from the duties which he owes the Company.

16 Powers of Directors

**Powers of Directors**

16.1 Subject to the provisions of the Act, the Memorandum and these Articles the business of the Company shall
be managed by the Directors who may for that purpose exercise all the powers of the Company.

16.2 No prior act of the Directors shall be invalidated by any subsequent alteration of the Memorandum or these
Articles. However, to the extent allowed by the Act, Members may, by Special Resolution, validate any prior or future act of the Directors
which would otherwise be in breach of their duties.

**Directors below the minimum number**

16.3 lf the number of Directors is less than the minimum prescribed in accordance with these Articles, the
remaining Director or Directors shall act only for the purposes of appointing an additional Director or Directors to make up such minimum
or of convening a general meeting of the Company for the purpose of making such appointment. lf there are no Director or Directors able
or willing to act, any two Members may summon a general meeting for the purpose of appointing Directors. Any additional Director so appointed
shall hold office (subject to these Articles) only until the dissolution of the annual general meeting next following such appointment
unless he is re-elected during such meeting.

**Appointments to office**

16.4 The Directors may appoint a Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as chairman of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as managing Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to any other executive office,

for such period, and on such terms, including as to remuneration as they think fit.

16.5 The appointee must consent in writing to holding that office.

16.6 Where a chairman is appointed he shall, unless unable to do so, preside at every meeting of Directors.

16.7 If there is no chairman, or if the chairman is unable to preside at a meeting, that meeting may select
its own chairman; or the Directors may nominate one of their number to act in place of the chairman should he ever not be available.

16.8 Subject to the provisions of the Act, the Directors may also appoint and remove any person, who need not
be a Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as Secretary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to any office that may be required

for such period and on such terms, including as to remuneration, as they think fit. In the case of an Officer, that Officer may be given any title the Directors decide.

16.9 The Secretary or Officer must consent in writing to holding that office.

16.10 A Director, Secretary or other Officer of the Company may not the hold the office, or perform the services,
of auditor.

**Provisions for employees**

16.11 The Board may make provision for the benefit of any persons employed or formerly employed by the Company
or any of its subsidiary undertakings (or any member of his family or any person who is dependent on him) in connection with the cessation
or the transfer to any person of the whole or part of the undertaking of the Company or any of its subsidiary undertakings.

**Exercise of voting rights**

16.12 The Board may exercise the voting power conferred by the Shares in any body corporate held or owned by
the Company in such manner in all respects as it thinks fit (including, without limitation, the exercise of that power in favour of any
resolution appointing any Director as a Director of such body corporate, or voting or providing for the payment of remuneration to the
Directors of such body corporate).

**Remuneration**

16.13 Every Director may be remunerated by the Company for the services he provides for the benefit of the Company,
whether as Director, employee or otherwise, and shall be entitled to be paid for the expenses incurred in the Company's business
including attendance at Directors' meetings.

16.14 Until otherwise determined by the Company by Ordinary Resolution, the Directors (other than alternate
Directors) shall be entitled to such remuneration by way of fees for their services in the office of Director as the Directors may determine.

16.15 Remuneration may take any form and may include arrangements to pay pensions, health insurance, death or
sickness benefits, whether to the Director or to any other person connected to or related to him.

16.16 Unless his fellow Directors determine otherwise, a Director is not accountable to the Company for remuneration
or other benefits received from any other company which is in the same group as the Company or which has common shareholdings.

**Disclosure of information**

16.17 The Directors may release or disclose to a third party any information regarding the affairs of the Company,
including any information contained in the register of Members relating to a Member, (and they may authorise any
Director, Officer or other authorised agent of the Company to release or disclose to a third party any such information in his possession)
if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company or that person, as the case may be, is lawfully required to do so under the laws of any jurisdiction
to which the Company is subject; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such disclosure is in compliance with the rules and regulations of the SEC and/or the Designated Stock
Exchange Rules; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such disclosure is in accordance with any contract entered into by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Directors are of the opinion such disclosure would assist or facilitate the Company's operations.

17 Delegation of powers

**Power to delegate any of the Directors' powers to a committee**

17.1 The Directors may delegate any of their powers to any committee consisting of one or more persons who
need not be Members. Persons on the committee may include non-Directors so long as the majority of those persons are Directors. Any such
committee shall be made up of such number of Independent Directors as required from time to time by the Designated Stock Exchange Rules
or otherwise required by applicable law.

17.2 The delegation may be collateral with, or to the exclusion of, the Directors' own powers.

17.3 The delegation may be on such terms as the Directors think fit, including provision for the committee
itself to delegate to a sub-committee; save that any delegation must be capable of being revoked or altered by the Directors at will.

17.4 Unless otherwise permitted by the Directors, a committee must follow the procedures prescribed for the
taking of decisions by Directors.

17.5 The Board shall establish an audit committee, a compensation committee and a nominating and corporate
governance committee. Each of these committees shall be empowered to do all things necessary to exercise the rights of such committee
set forth in these Articles. Each of the audit committee, compensation committee and nominating and corporate governance committee shall
consist of at least three Directors (or such larger minimum number as may be required from time to time by the Designated Stock Exchange
Rules). The majority of the committee members on each of the compensation committee and nominating and corporate governance committee
shall be Independent Directors. The audit committee shall be made up of such number of Independent Directors as required from time to
time by the Designated Stock Exchange Rules or otherwise required by applicable law.

**Local boards**

17.6 The Board may establish any local or divisional board or agency for managing any of the affairs of the
Company whether in the Cayman Islands or elsewhere and may appoint any persons to be members of a local or divisional Board, or to be
managers or agents, and may fix their remuneration.

17.7 The Board may delegate to any local or divisional board, manager or agent any of its powers and authorities
(with power to sub-delegate) and may authorise the members of any local or divisional board or any of them to fill any vacancies and to
act notwithstanding vacancies.

17.8 Any appointment or delegation under this Article 17.8 may be made on such terms and subject to such conditions
as the Board thinks fit and the Board may remove any person so appointed, and may revoke or vary any delegation.

**Power to appoint an agent of the Company**

17.9 The Directors may appoint any person, either generally or in respect of any specific matter, to be the
agent of the Company with or without authority for that person to delegate all or any of that person's powers. The Directors may
make that appointment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by causing the Company to enter into a power of attorney or agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any other manner they determine.

**Power to appoint an attorney or authorised signatory of the Company**

17.10 The Directors may appoint any person, whether nominated directly or indirectly by the Directors, to be
the attorney or the authorised signatory of the Company. The appointment may be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with the powers, authorities and discretions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for the period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subject to such conditions

as they think fit. The powers, authorities and discretions, however, must not exceed those vested in, or exercisable, by the Directors under these Articles. The Directors may do so by power of attorney or any other manner they think fit.

17.11 Any power of attorney or other appointment may contain such provision for the protection and convenience
for persons dealing with the attorney or authorised signatory as the Directors think fit. Any power of attorney or other appointment may
also authorise the attorney or authorised signatory to delegate all or any of the powers, authorities and discretions vested in that person.

17.12 The Board may remove any person appointed under Article 17.10 and may revoke or vary the delegation.

**Borrowing Powers**

17.13 The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its
undertaking, property and assets both present and future and uncalled capital, or any part thereof, and to issue debentures and other
securities, whether outright or as collateral security for any debt, liability or obligation of the Company or its parent undertaking
(if any) or any subsidiary undertaking of the Company or of any third party.

**Corporate Governance**

17.14 The Board may, from time to time, and except as required by applicable law or the Designated Stock Exchange
Rules, adopt, institute, amend, modify or revoke the corporate governance policies or initiatives of the Company, which shall be intended
to set forth the guiding principles and policies of the Company and the
Board on various corporate governance related matters as the Board shall determine by resolution from time to time.

18 Meetings of Directors

**Regulation of Directors' meetings**

18.1 Subject to the provisions of these Articles, the Directors may regulate their proceedings as they think
fit.

**Calling meetings**

18.2 Any Director may call a meeting of Directors at any time. The Secretary must call a meeting of the Directors
if requested to do so by a Director.

**Notice of meetings**

18.3 Notice of a Board meeting may be given to a Director personally or by word of mouth or given in writing
or by Electronic communications at such address as he may from time to time specify for this purpose (or, if he does not specify an address,
at his last known address). A Director may waive his right to receive notice of any meeting either prospectively or retrospectively.

**Use of technology**

18.4 A Director may participate in a meeting of Directors through the medium of conference telephone, video
or any other form of communications equipment providing all persons participating in the meeting are able to hear and speak to each other
throughout the meeting.

18.5 A Director participating in this way is deemed to be present in person at the meeting.

**Quorum**

18.6 The quorum for the transaction of business at a meeting of Directors shall be two unless the Directors
fix some other number.

**Chairman or deputy to preside**

18.7 The Board may appoint a chairman and one or more deputy chairman or chairmen and may at any time revoke
any such appointment.

18.8 The chairman, or failing him any deputy chairman (the longest in office taking precedence if more than
one is present), shall preside at all Board meetings. If no chairman or deputy chairman has been appointed, or if he is not present within
five minutes after the time fixed for holding the meeting, or is unwilling to act as chairman of the meeting, the Directors present shall
choose one of their number to act as chairman of the meeting.

**Voting**

18.9 A question which arises at a Board meeting shall be decided by a majority of votes. If votes are equal
the chairman may, if he wishes, exercise a casting vote.

**Recording of dissent**

18.10 A Director present at a meeting of Directors shall be presumed to have assented to any action taken at
that meeting unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) his dissent is entered in the minutes of the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he has filed with the meeting before it is concluded signed dissent from that action; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he has forwarded to the Company as soon as practical following the conclusion of that meeting signed dissent.

A Director who votes in favour of an action is not entitled to record his dissent to it.

**Written resolutions**

18.11 The Directors may pass a resolution in writing without holding a meeting if all Directors sign a document
or sign several documents in the like form each signed by one or more of those Directors.

18.12 A written resolution signed by a validly appointed alternate Director need not also be signed by the appointing
Director.

18.13 A written resolution signed personally by the appointing Director need not also be signed by his alternate.

18.14 A resolution in writing passed pursuant to Article 18.11, Article 18.12 and/or Article 18.13 shall be
as effective as if it had been passed at a meeting of the Directors duly convened and held; and it shall be treated as having been passed
on the day and at the time that the last Director signs (and for the avoidance of doubt, such day may or may not be a Business Day).

**Validity of acts of Directors in spite of formal defect**

18.15 All acts done by a meeting of the Board, or of a committee of the Board, or by any person acting as a
Director or an alternate Director, shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment
of any Director or alternate Director or member of the committee, or that any of them were disqualified or had vacated office or were
not entitled to vote, be as valid as if every such person had been duly appointed and qualified and had continued to be a Director or
alternate Director and had been entitled to vote.

19 Permissible Directors' interests and disclosure

**Permissible interests subject to disclosure**

19.1 Save as expressly permitted by these Articles or as set out below,
a Director may not have a direct or indirect interest or duty which conflicts or may possibly conflict with the interests of the Company.

19.2 If, notwithstanding the prohibition in the preceding Article, a Director
discloses to their fellow Directors the nature and extent of any material interest or duty in accordance with the next Article, he may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be a party to, or otherwise interested in, any transaction or
arrangement with the Company or in which the Company is or may otherwise be interested; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be interested in another body corporate promoted by the Company
or in which the Company is otherwise interested. In particular, the Director may be a Director, secretary or officer of, or employed
by, or be a party to any transaction or arrangement with, or otherwise interested in, that other body corporate.

19.3 Such disclosure may be made at a meeting of the board or otherwise
(and, if otherwise, it must be made in writing). The Director must disclose the nature and extent of his direct or indirect interest
in or duty in relation to a transaction or arrangement or series of transactions or arrangements with the Company or in which the Company
has any material interest.

19.4 If a Director has made disclosure in accordance with the preceding
Article, then they shall not, by reason only of their office, be accountable to the Company for any benefit that he derives from any
such transaction or arrangement or from any such office or employment or from any interest in any such body corporate, and no such transaction
or arrangement shall be liable to be avoided on the ground of any such interest or benefit.

**Notification of interests**

19.5 For the purposes of the preceding Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a general notice that a Director gives to the other directors
that he is to be regarded as having an interest of the nature and extent specified in the notice in any transaction or arrangement in
which a specified person or class of persons is interested shall be deemed to be a disclosure that he has an interest in or duty in relation
to any such transaction of the nature and extent so specified; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an interest of which a director has no knowledge and of which
it is unreasonable to expect him to have knowledge shall not be treated as an interest of his.

19.6 A Director shall not be treated as having an interest in a transaction
or arrangement if he has no knowledge of that interest and it is unreasonable to expect the director to have that knowledge.

**Voting where a Director is interested in a matter**

19.7 A Director may vote at a meeting of directors on any resolution concerning
a matter in which that Director has an interest or duty, whether directly or indirectly, so long as that director discloses any material
interest pursuant to these Articles. The Director shall be counted towards a quorum of those present at the meeting. If the Director votes
on the resolution, his vote shall be counted.

19.8 Where
proposals are under consideration concerning the appointment of two or more Directors to offices or employment with the Company or any
body corporate in which the Company is interested, the proposals may be divided and considered in relation to each Director separately
and each of the directors concerned shall be entitled to vote and be counted in the quorum in respect of each resolution except that concerning
his or her own appointment.

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|:---|:---|
| 20 | Minutes |

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20.1 The Company shall cause minutes to be made in books of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all appointments of Officers and committees made by the Board and of any such Officer's remuneration;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the names of Directors present at every meeting of the Directors, a committee of the Board, the Company
or the holders of any class of shares or debentures, and all orders, resolutions and proceedings of such meetings.

20.2 Any such minutes, if purporting to be signed by the chairman of the meeting at which the proceedings were
held or by the chairman of the next succeeding meeting or the Secretary, shall be prima facie evidence of the matters stated in them.

21 Accounts and audit

21.1 The Directors must ensure that proper accounting and other records are kept, and that accounts and associated
reports are distributed in accordance with the requirements of the Act.

21.2 The books of account shall be kept at the registered office of the Company and shall always be open to
inspection by the Directors. No Member (other than a Director) shall have any right of inspecting any account or book or document of the
Company except as conferred by the Act or as authorised by the Directors or by Ordinary Resolution.

21.3 Unless the Directors otherwise prescribe, the financial year of the Company shall end on 31 December in
each year and begin on 1 January in each year.

**Auditors**

21.4 The Audit Committee may appoint an Auditor of the Company who shall hold office on such terms as the Directors
determine.

21.5 At any general meeting convened and held at any time in accordance with these Articles, the Members may,
by Ordinary Resolution, remove the Auditor before the expiration of his term of office. If they do so, the Members shall, by Ordinary
Resolution, at that meeting appoint another Auditor in his stead for the remainder of his term.

21.6 The Auditors shall examine such books, accounts and vouchers; as may be necessary for the performance
of their duties.

21.7 The Auditors shall, if so requested by the Directors, make a report on the accounts of the Company during
their tenure of office at the next annual general meeting following their appointment, and at any time during their term of office, upon
request of the Directors or any general meeting of the Company.

22 Record dates

22.1 Except to the extent of any conflicting rights attached to Shares, the resolution declaring a dividend
on Shares of any class, whether it be an Ordinary Resolution of the Members or a Director's resolution, may specify that the dividend
is payable or distributable to the persons registered as the holders of those Shares at the close of business on a particular date, notwithstanding
that the date may be a date prior to that on which the resolution is passed.

22.2 If the resolution does so specify, the dividend shall be payable or distributable to the persons registered
as the holders of those Shares at the close of business on the specified date in accordance with their respective holdings so registered,
but without prejudice to the rights *inter se* in respect of the dividend of transferors and transferees of any of those Shares.

22.3 The provisions of this Article apply, *mutatis mutandis*, to bonuses, capitalisation issues, distributions
of realised capital profits or offers or grants made by the Company to the Members.

23 Dividends

**Source of dividends**

23.1 Dividends may be declared and paid out of any funds of the Company lawfully available for distribution.

23.2 Subject to the requirements of the Act regarding the application of a company's Share premium account
and with the sanction of an Ordinary Resolution, dividends may also be declared and paid out of any share premium account.

**Declaration of dividends by Members**

23.3 Subject to the provisions of the Act, the Company may by Ordinary Resolution declare dividends in accordance
with the respective rights of the Members but no dividend shall exceed the amount recommended by the Directors.

**Payment of interim dividends and declaration of final dividends by Directors**

23.4 The Directors may declare and pay interim dividends or recommend final dividends in accordance with the
respective rights of the Members if it appears to them that they are justified by the financial position of the Company and that such
dividends may lawfully be paid.

23.5 Subject to the provisions of the Act, in relation to the distinction between interim dividends and final
dividends, the following applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon determination to pay a dividend or dividends described as interim by the Directors in the dividend

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon declaration of a dividend or dividends described as final by the Directors in the dividend resolution,
a debt shall be created immediately following the declaration, the due date to be the date the dividend is stated to be payable in the
resolution.

If the resolution fails to specify whether a dividend is final or interim, it shall be assumed to be interim.

23.6 In relation to Shares carrying differing rights to dividends or rights to dividends at a fixed rate, the
following applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the share capital is divided into different classes, the Directors may pay dividends on Shares which
confer deferred or non-preferred rights with regard to dividends as well as on Shares which confer preferential rights with regard to
dividends but no dividend shall be paid on Shares carrying deferred or non-preferred rights if, at the time of payment, any preferential
dividend is in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Directors may also pay, at intervals settled by them, any dividend payable at a fixed rate if it appears
to them that there are sufficient funds of the Company lawfully available for distribution to justify the payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Directors act in good faith, they shall not incur any liability to the Members holding Shares conferring
preferred rights for any loss those Members may suffer by the lawful payment of the dividend on any Shares having deferred or non-preferred
rights.

**Apportionment of dividends**

23.7 Except as otherwise provided by the rights attached to Shares all dividends shall be declared and paid
according to the amounts Paid Up on the Shares on which the dividend is paid. All dividends shall be apportioned and paid proportionately
to the amount Paid Up on the Shares during the time or part of the time in respect of which the dividend is paid. But if a Share is issued
on terms providing that it shall rank for dividend as from a particular date, that Share shall rank for dividend accordingly.

**Right of set off**

23.8 The Directors may deduct from a dividend or any other amount payable to a person in respect of a Share
any amount due by that person to the Company on a call or otherwise in relation to a Share.

**Power to pay other than in cash**

23.9 If the Directors so determine, any resolution declaring a dividend may direct that it shall be satisfied
wholly or partly by the distribution of assets. If a difficulty arises in relation to the distribution, the Directors may settle that
difficulty in any way they consider appropriate. For example, they may do any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue fractional Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fix the value of assets for distribution and make cash payments to some Members on the footing of the
value so fixed in order to adjust the rights of Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) vest some assets in trustees.

**How payments may be made**

23.10 A dividend or other monies payable on or in respect of a Share may be paid in any of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Member holding that Share or other person entitled to that Share nominates a bank account for that
purpose - by wire transfer to that bank account; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by cheque or warrant sent by post to the registered address of the Member holding that Share or other
person entitled to that Share.

23.11 For the purposes of Article 23.10(a), the nomination may be in writing or in an Electronic Record and
the bank account nominated may be the bank account of another person. For the purposes of Article 23.10(b), subject to any applicable
law or regulation, the cheque or warrant shall be made to the order of the Member holding that Share or other person entitled to the Share
or to his nominee, whether nominated in writing or in an Electronic Record, and payment of the cheque or warrant shall be a good discharge
to the Company.

23.12 If two or more persons are registered as the holders of the Share or are jointly entitled to it by reason
of the death or bankruptcy of the registered holder (**Joint Holders**), a dividend (or other amount) payable on or in respect of that
Share may be paid as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the registered address of the Joint Holder of the Share who is named first on the register of Members
or to the registered address of the deceased or bankrupt holder, as the case may be; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the address or bank account of another person nominated by the Joint Holders, whether that nomination
is in writing or in an Electronic Record.

23.13 Any Joint Holder of a Share may give a valid receipt for a dividend (or other amount) payable in respect
of that Share.

**Dividends or other monies not to bear interest in absence of special rights**

23.14 Unless provided for by the rights attached to a Share, no dividend or other monies payable by the Company
in respect of a Share shall bear interest.

**Dividends unable to be paid or unclaimed**

23.15 If a dividend cannot be paid to a Member or remains unclaimed within six weeks after it was declared or
both, the Directors may pay it into a separate account in the Company's name. If a dividend is paid into a separate account, the
Company shall not be constituted trustee in respect of that account and the dividend shall remain a debt due to the Member.

23.16 A dividend that remains unclaimed for a period of six years after it became due for payment shall be forfeited
to, and shall cease to remain owing by, the Company.

24 Capitalisation of profits

**Capitalisation of profits or of any share premium account or capital redemption reserve;**

24.1 The Directors may resolve to capitalise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any part of the Company's profits not required for paying any preferential dividend (whether or
not those profits are available for distribution); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any sum standing to the credit of the Company's share premium account or capital redemption reserve, if
any.

24.2 The amount resolved to be capitalised must be appropriated to the Members who would have been entitled
to it had it been distributed by way of dividend and in the same proportions. The benefit to each Member so entitled must be given in
either or both of the following ways::

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by paying up the amounts unpaid on that Member's Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by issuing Fully Paid Up Shares, debentures or other securities of the Company to that Member or as that
Member directs. The Directors may resolve that any Shares issued to the Member in respect of Partly Paid Up Shares (**Original Shares**)
rank for dividend only to the extent that the Original Shares rank for dividend while those Original Shares remain Partly Paid Up.

**Applying an amount for the benefit of Members**

24.3 The amount capitalised must be applied to the benefit of Members in the proportions to which the Members
would have been entitled to dividends if the amount capitalised had been distributed as a dividend.

24.4 Subject to the Act, if a fraction of a Share, a debenture or other security is allocated to a Member,
the Directors may issue a fractional certificate to that Member or pay him the cash equivalent of the fraction.

25 Share Premium Account

**Directors to maintain share premium account**

25.1 The Directors shall establish a share premium account in accordance with the Act. They shall carry to
the credit of that account from time to time an amount equal to the amount or value of the premium paid on the issue of any Share or capital
contributed or such other amounts required by the Act.

**Debits to share premium account**

25.2 The following amounts shall be debited to any share premium account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on the redemption or purchase of a Share, the difference between the nominal value of that Share and the
redemption or purchase price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any other amount paid out of a share premium account as permitted by the Act.

25.3 Notwithstanding the preceding Article, on the redemption or purchase of a Share, the Directors may pay
the difference between the nominal value of that Share and the redemption purchase price out of the profits of the Company or, as permitted
by the Act, out of capital.

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| | |
|:---|:---|
| 26 | Seal |

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**Company seal**

26.1 The Company may have a seal if the Directors so determine.

**Duplicate seal**

26.2 Subject to the provisions of the Act, the Company may also have a duplicate seal or seals for use in any
place or places outside the Cayman Islands. Each duplicate seal shall be a facsimile of the original seal of the Company. However, if
the Directors so determine, a duplicate seal shall have added on its face the name of the place where it is to be used.

**When and how seal is to be used**

26.3 A seal may only be used by the authority of the Directors. Unless the Directors otherwise determine, a
document to which a seal is affixed must be signed in one of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by a Director (or his alternate) and the Secretary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by a single Director (or his alternate).

**If no seal is adopted or used**

26.4 If the Directors do not adopt a seal, or a seal is not used, a document may be executed in the following
manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by a Director (or his alternate) and the Secretary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by a single Director (or his alternate); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other manner permitted by the Act.

**Power to allow non-manual signatures and facsimile printing of seal**

26.5 The Directors may determine that either or both of the following applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that the seal or a duplicate seal need not be affixed manually but may be affixed by some other method
or system of reproduction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that a seal, if any, or a signature required by these Articles need not be manual but may be a mechanical
or Electronic Signature.

**Validity of execution**

26.6 If a document is duly executed and delivered by or on behalf of the Company, it shall not be regarded
as invalid merely because, at the date of the delivery, the Secretary, or the Director, or other Officer or person who signed the document
or affixed the seal for and on behalf of the Company ceased to be the Secretary or hold that office and authority on behalf of the Company.

27 Indemnity

27.1 To the extent permitted by law, the Company shall indemnify each existing or former Director (including
alternate Director), Secretary and other Officer of the Company (including an investment adviser or an administrator or liquidator) and
their personal representatives against:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained
by the existing or former Director (including alternate Director), Secretary or Officer in or about the conduct of the Company's business
or affairs or in the execution or discharge of the existing or former Director's (including alternate Director's), Secretary's or
Officer's duties, powers, authorities or discretions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) without limitation to paragraph (a), all costs, expenses, losses or liabilities incurred by the existing
or former Director (including alternate Director), Secretary or Officer in defending (whether successfully or otherwise) any civil, criminal,
administrative or investigative proceedings (whether threatened, pending or completed) concerning the Company or its affairs in any court
or tribunal, whether in the Cayman Islands or elsewhere.

No such existing or former Director (including alternate Director), Secretary or Officer, however, shall be indemnified in respect of any matter arising out of his own dishonesty, wilful default or fraud.

27.2 To the extent permitted by Act, the Company may make a payment, or agree to make a payment, whether by
way of advance, loan or otherwise, for any legal costs incurred by an existing or former Director (including alternate Director), Secretary
or Officer of the Company in respect of any matter identified in Article 27.1 on condition that the Director (including alternate Director),
Secretary or Officer must repay the amount paid by the Company to the extent that it is ultimately found not liable to indemnify the Director
(including alternate Director), Secretary or that Officer for those legal costs.

**Release**

27.3 To the extent permitted by Act, the Company may by Special Resolution release any existing or former Director
(including alternate Director), Secretary or other Officer of the Company from liability for any loss or damage or right to compensation
which may arise out of or in connection with the execution or discharge of the duties, powers, authorities or discretions of his office;
but there may be no release from liability arising out of or in connection with that person's own dishonesty.

**Insurance**

27.4 To the extent permitted by Act, the Company may pay, or agree to pay, a premium in respect of a contract
insuring each of the following persons against risks determined by the Directors, other than liability arising out of that person's
own dishonesty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an existing or former Director (including alternate Director), Secretary or Officer or auditor of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a company which is or was a subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a company in which the Company has or had an interest (whether direct or indirect); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a trustee of an employee or retirement benefits scheme or other trust in which any of the persons referred
to in paragraph (a) is or was interested.

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|:---|:---|
| 28 | Notices |

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**Form of notices**

28.1 Save where these Articles provide otherwise, and subject to the Designated Stock Exchange Rules, any notice
to be given to or by any person pursuant to these Articles shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in writing signed by or on behalf of the giver in the manner set out below for written notices; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to the next Article, in an Electronic Record signed by or on behalf of the giver by Electronic
Signature and authenticated in accordance with Articles about authentication of Electronic Records; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where these Articles expressly permit, by the Company by means of a website.

**Electronic communications**

28.2 A notice may only be given to the Company in an Electronic Record if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Directors so resolve or otherwise accept the notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Director or Officer provides the giver of the notice an electronic address to which the notice may
be sent and a notice is sent to that address within a reasonable period of time.

28.3 A notice may not be given by Electronic Record to a person other than the Company unless the recipient
has provided the giver of the notice an electronic address to which notice may be sent.

28.4 Subject to the Act, the Designated Stock Exchange Rules and to any other rules which the Company is bound
to follow, the Company may also send any notice or other document pursuant to these Articles to a Member by publishing that notice or
other document on a website where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company and the Member have agreed to his having access to the notice or document on a website (instead
of it being sent to him);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the notice or document is one to which that agreement applies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Member is notified (in accordance with any requirements laid down by the Act and, in a manner for
the time being agreed between him and the Company for the purpose) of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the publication of the notice or document on a website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the address of that website; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the place on that website where the notice or document may be accessed, and how it may be accessed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the notice or document is published on that website throughout the publication period, provided that,
if the notice or document is published on that website for a part, but not all of, the publication period, the notice or document shall
be treated as being published throughout that period if the failure to publish that notice of document throughout that period is wholly
attributable to circumstances which it would not be reasonable to have expected the Company to prevent or avoid. For the purposes of this
Article 28.4 "publication period" means a period of not less than twenty-one days, beginning on the day on which the notification
referred to in Article 28.4(c) is deemed sent.

**Persons entitled to notices**

28.5 Any notice or other document to be given to a Member may be given by reference to the register of Members
as it stands at any time within the period of twenty-one days before the day that the notice is given or (where and as applicable) within
any other period permitted by, or in accordance with the requirements of, (to the extent applicable) the Designated Stock Exchange Rules
and/or the Designated Stock Exchanges. No change in the register of Members after that time shall invalidate the giving of such notice
or document or require the Company to give such item to any other person.

**Persons authorised to give notices**

28.6 A notice by either the Company or a Member pursuant to these Articles may be given on behalf of the Company
or a Member by a Director or company secretary of the Company or a Member.

**Delivery of written notices**

28.7 Save where these Articles provide otherwise, a notice in writing may be given personally to the recipient,
or left at (as appropriate) the Member's or Director's registered address or the Company's registered office, or posted
to that registered address or registered office.

**Joint holders**

28.8 Where Members are joint holders of a Share, all notices shall be given to the Member whose name first
appears in the register of Members.

**Signatures**

28.9 A written notice shall be signed when it is autographed by or on behalf of the giver, or is marked in
such a way as to indicate its execution or adoption by the giver.

28.10 An Electronic Record may be signed by an Electronic Signature.

**Evidence of transmission**

28.11 A notice given by Electronic Record shall be deemed sent if an Electronic Record is kept demonstrating
the time, date and content of the transmission, and if no notification of failure to transmit is received by the giver.

28.12 A notice given in writing shall be deemed sent if the giver can provide proof that the envelope containing
the notice was properly addressed, pre-paid and posted, or that the written notice was otherwise properly transmitted to the recipient.

28.13 A Member present, either in person or by proxy, at any meeting of the Company or of the holders of any
class of Shares shall be deemed to have received due notice of the meeting and, where requisite, of the purposes for which it was called.

**Giving notice to a deceased or bankrupt Member**

28.14 A notice may be given by the Company to the persons entitled to a Share in consequence of the death or
bankruptcy of a Member by sending or delivering it, in any manner authorised by these Articles for the giving of notice to a Member, addressed
to them by name, or by the title of representatives of the deceased, or trustee of the bankrupt or by any like description, at the address,
if any, supplied for that purpose by the persons claiming to be so entitled.

28.15 Until such an address has been supplied, a notice may be given in any manner in which it might have been
given if the death or bankruptcy had not occurred.

**Date of giving notices**

28.16 A notice is given on the date identified in the following table

---

| | |
|:---|:---|
| **Method for giving notices** | **When taken to be given** |
| (A) Personally | At the time and date of delivery |
| (B) By leaving it at the Member's registered address | At the time and date it was left |
| (C) By posting it by prepaid post to the street or postal address of that recipient | 48 hours after the date it was posted |
| (D) By Electronic Record (other than publication on a website), to recipient's Electronic address | 48 hours after the date it was sent |
| (E) By publication on a website | 24 hours after the date on which the Member is deemed to have been notified of the publication of the notice or document on the website |

---

**Saving provision**

28.17 None of the preceding notice provisions shall derogate from the Articles about the delivery of written
resolutions of Directors and written resolutions of Members.

29 Authentication of Electronic Records

**Application of Articles**

29.1 Without limitation to any other provision of these Articles, any notice, written resolution or other document
under these Articles that is sent by Electronic means by a Member, or by the Secretary, or by a Director or other Officer of the Company,
shall be deemed to be authentic if either Article 29.2 or Article 29.4 applies.

**Authentication of documents sent by Members by Electronic means**

29.2 An Electronic Record of a notice, written resolution or other document sent by Electronic means by or
on behalf of one or more Members shall be deemed to be authentic if the following conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Member or each Member, as the case may be, signed the original document, and for this purpose **Original Document** includes several documents in like form signed by one or more of those Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Electronic Record of the Original Document was sent by Electronic means by, or at the direction of,
that Member to an address specified in accordance with these Articles for the purpose for which it was sent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Article 29.7 does not apply.

29.3 For example, where a sole Member signs a resolution and sends the Electronic Record of the original resolution,
or causes it to be sent, by facsimile transmission to the address in these Articles specified for that purpose, the facsimile copy shall
be deemed to be the written resolution of that Member unless Article 28.7 applies.

**Authentication of document sent by the Secretary or Officers of the Company by Electronic means**

29.4 An Electronic Record of a notice, written resolution or other document sent by or on behalf of the Secretary
or an Officer or Officers of the Company shall be deemed to be authentic if the following conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Secretary or the Officer or each Officer, as the case may be, signed the original document, and for
this purpose **Original Document** includes several documents in like form signed by the Secretary or one or more of those Officers;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Electronic Record of the Original Document was sent by Electronic means by, or at the direction of,
the Secretary or that Officer to an address specified in accordance with these Articles for the purpose for which it was sent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Article 29.7 does not apply.

This Article 29.4 applies whether the document is sent by or on behalf of the Secretary or Officer in his own right or as a representative of the Company.

29.5 For example, where a sole Director signs a resolution and scans the resolution, or causes it to be scanned,
as a PDF version which is attached to an email sent to the address in these Articles specified for that purpose, the PDF
version shall be deemed to be the written resolution of that Director unless Article 29.7 applies.

**Manner of signing**

29.6 For the purposes of these Articles about the authentication of Electronic Records, a document will be
taken to be signed if it is signed manually or in any other manner permitted by these Articles.

**Saving provision**

29.7 A notice, written resolution or other document under these Articles will not be deemed to be authentic
if the recipient, acting reasonably:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) believes that the signature of the signatory has been altered after the signatory had signed the original
document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) believes that the original document, or the Electronic Record of it, was altered, without the approval
of the signatory, after the signatory signed the original document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) otherwise doubts the authenticity of the Electronic Record of the document

and the recipient promptly gives notice to the sender setting the grounds of its objection. If the recipient invokes this Article, the sender may seek to establish the authenticity of the Electronic Record in any way the sender thinks fit.

30 Transfer by way of continuation

30.1 The Company may, by Special Resolution, resolve to be registered by way of continuation in a jurisdiction
outside:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cayman Islands; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such other jurisdiction in which it is, for the time being, incorporated, registered or existing.

30.2 To give effect to any resolution made pursuant to the preceding Article, the Directors may cause the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an application be made to the Registrar of Companies of the Cayman Islands to deregister the Company in
the Cayman Islands or in the other jurisdiction in which it is for the time being incorporated, registered or existing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all such further steps as they consider appropriate to be taken to effect the transfer by way of continuation
of the Company.

31 Winding up

**Distribution of assets in specie**

31.1 If the Company is wound up the Members may, subject to these Articles and any other sanction required
by the Act, pass a Special Resolution allowing the liquidator to do either or both of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in accordance with any rights attaching to the Shares, to divide in specie among the Members the whole
or any part of the assets of the Company and, for that purpose, to value any assets and to determine how the division shall be carried
out as between the Members or different classes of Members; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to vest the whole or any part of the assets in trustees for the benefit of Members and those liable to
contribute to the winding up.

**No obligation to accept liability**

31.2 No Member shall be compelled to accept any assets if an obligation attaches to them.

31.3 The Directors are authorised to present a winding up petition

31.4 The Directors have the authority to present a petition for the winding up of the Company to the Grand
Court of the Cayman Islands on behalf of the Company without the sanction of a resolution passed at a general meeting.

32 Amendment of Memorandum and Articles

**Power to change name or amend Memorandum**

32.1 Subject to the Act, the Company may, by Special Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) change its name; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) change the provisions of its Memorandum with respect to its objects, powers or any other matter specified
in the Memorandum.

**Power to amend these Articles**

32.2 Subject to the Act and as provided in these Articles, the Company may, by Special Resolution, amend these
Articles in whole or in part.

## Exhibit 5.1

**Exhibit 5.1**

![](ex5-1_001.jpg)

---

| | |
|:---|:---|
| WhiteFiber, Inc.<br> c/o Ogier Global (Cayman) Limited<br>89 Nexus Way, Camana Bay, Grand <br> Cayman KY1-9009, Cayman Islands | **D +1 345 949 9876** |
| WhiteFiber, Inc.<br> c/o Ogier Global (Cayman) Limited<br>89 Nexus Way, Camana Bay, Grand <br> Cayman KY1-9009, Cayman Islands | **E Bradley.Kruger@ogier.com** |
| WhiteFiber, Inc.<br> c/o Ogier Global (Cayman) Limited<br>89 Nexus Way, Camana Bay, Grand <br> Cayman KY1-9009, Cayman Islands |  |
| WhiteFiber, Inc.<br> c/o Ogier Global (Cayman) Limited<br>89 Nexus Way, Camana Bay, Grand <br> Cayman KY1-9009, Cayman Islands | Reference: 427611.00002 |
| WhiteFiber, Inc.<br> c/o Ogier Global (Cayman) Limited<br>89 Nexus Way, Camana Bay, Grand <br> Cayman KY1-9009, Cayman Islands |  |
|  | July 11, 2025 |

---

**WhiteFiber, Inc. (the Company)** 

We have been requested to provide you with an opinion on matters of Cayman Islands law in connection with the Company's registration statement on Form S-1, including all amendments or supplements thereto, filed with the United States Securities and Exchange Commission (the **Commission**) under the United States Securities Act of 1933, as amended (the **Act**), as amended, (including its exhibits, the **Registration Statement**) related to the offering and sale of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) up to [_____________] ordinary shares of the Company with a par value of US$0.01 each (the **Base Shares**);
and

(b) up to [_____________] ordinary shares of the Company with a par value of US$0.01 each (the **Over-Allotment Shares** and, together with the Base Shares, the **Sale Shares**) which several underwriters, for whom B. Riley Securities, Inc.
is acting as representative, will have a right to purchase from the Company to cover over-allotments, if any.

This opinion is given in accordance with the terms of the Legal Matters section of the Registration Statement.

Unless a contrary intention appears, all capitalised terms used in this opinion have the respective meanings set forth in Schedule 1. A reference to a Schedule is a reference to a schedule to this opinion and the headings herein are for convenience only and do not affect the construction of this opinion.

---

| | |
|:---|:---|
| **Ogier (Cayman) LLP** <br> 89 Nexus Way <br> Camana Bay <br> Grand Cayman, KY1-9009 <br> Cayman Islands<br>T +1 345 949 9876<br> F +1 305 513 5888<br>**ogier.com**  | A list of Partners may be inspected on our website |

---

**WhiteFiber, Inc.**

July 11, 2025

1 Documents examined

For the purposes of giving this opinion, we have examined the corporate and other documents and conducted the searches listed in Schedule 1. We have not made any searches or enquiries concerning, and have not examined any documents entered into by or affecting the Company or any other person, save for the searches, enquiries and examinations expressly referred to in Schedule 1.

2 Assumptions

In giving this opinion we have relied upon the assumptions set forth in Schedule 2 without having carried out any independent investigation or verification in respect of those assumptions.

---

| | |
|:---|:---|
| 3 | Opinions |

---

On the basis of the examinations and assumptions referred to above and subject to the qualifications set forth in Schedule 3 and the limitations set forth below, we are of the opinion that:

**Corporate status**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has been duly incorporated as an exempted company with limited liability and is validly existing
and in good standing with the Registrar of Companies of the Cayman Islands (the **Registrar**).

**Corporate power**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has under its Memorandum and Articles of Association and will have under the A&R Articles
all requisite power to issue the Sale Shares, to execute and deliver the Documents and to perform its obligations, and exercise its rights,
under such documents.

**Corporate authorisation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company has taken all requisite corporate action to authorise:

&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 issuance of the Sale 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;(ii) the execution and delivery of the Documents and the performance of its obligations, and the exercise of
its rights, under such documents.

**WhiteFiber, Inc.**

July 11, 2025

**Sale Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Sale Shares to be offered and issued by the Company as contemplated by the Registration Statement,
when issued by the Company upon:

&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) payment in full of the consideration as set out in the Registration Statement and in accordance with the
terms set out in the Registration Statement and in accordance with the A&R Articles; 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;(ii) the entry of those Sale Shares as fully paid on the register of members of the Company,

shall be validly issued, fully paid and non-assessable.

4 Matters not covered

We offer no opinion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as to any laws other than the laws of the Cayman Islands, and we have not, for the purposes of this opinion,
made any investigation of the laws of any other jurisdiction, and we express no opinion as to the meaning, validity, or effect of references
in the Registration Statement or the Documents to statutes, rules, regulations, codes or judicial authority of any jurisdiction other
than the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except to the extent that this opinion expressly provides otherwise, as to the commercial terms of, or
the validity, enforceability or effect of the documents reviewed (or as to how the commercial terms of such documents reflect the intentions
of the parties), the accuracy of representations, the fulfilment of warranties or conditions, the occurrence of events of default or terminating
events or the existence of any conflicts or inconsistencies among the documents and any other agreements into which the Company may have
entered or any other documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as to whether the acceptance, execution or performance of the Company's obligations under the documents
reviewed by us will result in the breach of or infringe any other agreement, deed or document (other than, to the extent expressly provided
herein, the Company's Memorandum and Articles of Association or the A&R Articles) entered into by or binding on the Company.

5 Governing law of this opinion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 This opinion is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) governed by, and shall be construed in accordance with, the laws of the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) limited to the matters expressly stated in it; and

**WhiteFiber, Inc.**

July 11, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) confined to, and given on the basis of, the laws and practice in the Cayman Islands at the date of this
opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Unless otherwise indicated, a reference to any specific Cayman Islands legislation is a reference to that
legislation as amended to, and as in force at, the date of this opinion.

---

| | |
|:---|:---|
| 6 | Consent |

---

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and also consent to the reference to this firm in the Registration Statement under the heading "Legal Matters". In the giving of our consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the Rules and Regulations of the Commission thereunder.

Yours faithfully

[___________________________]

**Ogier (Cayman) LLP**

**WhiteFiber, Inc.**

July 11, 2025

**Schedule 1** 

Documents examined

Corporate and other documents

---

| | |
|:---|:---|
| 1 | The Certificate of Incorporation of the Company dated 15 August 2024 and the Certificates of Incorporation on Change of Name dated 18 October 2024 and 6 February 2925, each issued by the Registrar (the **Certificates of Incorporation**). |

---

---

| | |
|:---|:---|
| 2 | The amended and restated memorandum of association of the Company adopted by special resolution passed on 6 February 2025 (the **Memorandum**). |

---

---

| | |
|:---|:---|
| 3 | The amended and restated articles of association of the Company adopted by special resolution passed on 6 February 2025 (the **Articles of Association**). |

---

---

| | |
|:---|:---|
| 4 | A Certificate of Good Standing dated [__________] (the **Good Standing Certificate**) issued by the Registrar in respect of the Company. |

---

---

| | |
|:---|:---|
| 5 | A certificate dated on the date hereof as to certain matters of fact signed by a director of the Company in the form annexed hereto (the **Director's Certificate**), having attached to it a copy of the written resolutions of the directors of the Company passed on 8 July 2025 (the **Resolutions**). |

---

---

| | |
|:---|:---|
| 6 | The Register of Writs at the office of the Clerk of Courts in the Cayman Islands as inspected by us on [<sub>_______________]</sub> (the **Register of Writs**). |

---

7 The Registration Statement.

---

| | |
|:---|:---|
| 8 | The draft amended and restated articles of association appended to the Registration Statement (**A&R Articles**). |

---

---

| | |
|:---|:---|
| 9 | A draft specimen certificate for ordinary shares of par value US$0.01 in the capital of the Company (the **Share Certificates** or the **Documents**). |

---

**WhiteFiber, Inc.**

July 11, 2025

**Schedule 2** 

Assumptions

**Assumptions of general application**

1 All original documents examined by us are authentic and complete.

2 All copy documents examined by us (whether in facsimile, electronic or other form) conform to the originals and those originals are authentic and complete.

3 All signatures, seals, dates, stamps and markings (whether on original or copy documents) are genuine.

4 Each of the Good Standing Certificate and the Director's Certificate is accurate and complete as at the date of this opinion.

---

| | |
|:---|:---|
| 5 | Where any Document has been provided to us in draft or undated form, that Document has been executed by all parties in materially the form provided to us and, where we have been provided with successive drafts of a Document marked to show changes from a previous draft, all such changes have been accurately marked. |

---

6 There will be no intervening circumstance relevant to this opinion between the date hereof and the date upon which the Sale Shares are issued.

7 There is nothing in any law (other than the laws of the Cayman Islands) that would or might affect the opinions herein.

**Status, authorisation and execution**

8 Each of the parties to the Documents other than the Company is duly incorporated, formed or organised (as applicable), validly existing and in good standing under all relevant laws.

---

| | |
|:---|:---|
| 9 | In authorising the execution and delivery of the Documents by the Company, the issue and allotment of the Sale Shares, and the exercise of its rights and performance of its obligations under the Documents, each of the directors of the Company has acted in good faith with a view to the best interests of the Company and has exercised the standard of care, diligence and skill that is required of him or her. |

---

**WhiteFiber, Inc.**

July 11, 2025

**Enforceability**

10 None of the opinions expressed herein will be adversely affected by the laws or public policies of any jurisdiction other than the Cayman Islands. In particular, but without limitation to the previous sentence:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the laws or public policies of any jurisdiction other than the Cayman Islands will not adversely affect
the capacity or authority of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither the execution or delivery of the Documents nor the exercise by any party to the Documents of its
rights or the performance of its obligations under them contravene those laws or public policies.

**Share Issuance**

11 The Sale Shares to be issued shall be issued at an issue price in excess of the par value thereof.

12 The A&R Articles appended to the Registration Statement will be adopted by the Company in accordance with the Articles of Association prior to the date that any Sale Shares are issued by the Company.

**Register of Writs**

13 The Register of Writs constitutes a complete and accurate record of the proceedings affecting the Company before the Grand Court of the Cayman Islands as at the time we conducted our investigation of such register.

**WhiteFiber, Inc.**

July 11, 2025

**Schedule 3** 

Qualifications

**Good Standing**

---

| | |
|:---|:---|
| 1 | Under the Companies Act (Revised) of the Cayman Islands (**Companies Act**) annual returns in respect of the Company must be filed with the Registrar, together with payment of annual filing fees. A failure to file annual returns and pay annual filing fees may result in the Company being struck off the Register of Companies, following which its assets will vest in the Financial Secretary of the Cayman Islands and will be subject to disposition or retention for the benefit of the public of the Cayman Islands. |

---

---

| | |
|:---|:---|
| 2 | **In good standing** means only that as of the date of the Good Standing Certificate the Company is up-to-date with the filing of its annual returns and payment of annual fees with the Registrar. We have made no enquiries into the Company's good standing with respect to any filings or payment of fees, or both, that it may be required to make under the laws of the Cayman Islands other than the Companies Act. |

---

**Limited Liability**

---

| | |
|:---|:---|
| 3 | We are not aware of any Cayman Islands authority as to when the courts would set aside the limited liability of a shareholder in a Cayman Islands company. Our opinion on the subject is based on the Companies Act and English common law authorities, the latter of which are persuasive but not binding in the courts of the Cayman Islands. Under English authorities, circumstances in which a court would attribute personal liability to a shareholder are very limited, and include: (a) such shareholder expressly assuming direct liability (such as a guarantee); (b) the company acting as the agent of such shareholder; and (c) the company being incorporated by or at the behest of such shareholder for the purpose of committing or furthering such shareholder's fraud, or for a sham transaction otherwise carried out by such shareholder. In the absence of these circumstances, we are of the opinion that a Cayman Islands' court would have no grounds to set aside the limited liability of a shareholder. |

---

**Non-Assessable**

---

| | |
|:---|:---|
| 4 | In this opinion, the phrase "non-assessable" means, with respect to the Sale Shares in the Company, that a shareholder shall not, solely by virtue of its status as a shareholder, be liable for additional assessments or calls on the Sale Shares by the Company or its creditors (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstance in which a court may be prepared to pierce or lift the corporate veil). |

---

**Register of Writs**

5 Our examination of the Register of Writs cannot conclusively reveal whether or not there is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any current or pending litigation in the Cayman Islands against the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any application for the winding up or dissolution of the Company or the appointment of any liquidator,
trustee in bankruptcy or restructuring officer in respect of the Company or any of its assets,

as notice of these matters might not be entered on the Register of Writs immediately or updated expeditiously or the court file associated with the matter or the matter itself may not be publicly available (for example, due to sealing orders having been made). Furthermore, we have not conducted a search of the summary court. Claims in the summary court are limited to a maximum of CI $20,000.

## Exhibit 8.1

**Exhibit 8.1**

**WRITER'S DIRECT: (646) 428-3210**

**E-MAIL ADDRESS: ehl@dhclegal.com**

July 11, 2025

WhiteFiber, Inc.

31 Hudson Yards, 11<sup>th</sup> Floor

New York, New York 10001

Re: Opinion of Davidoff Hutcher & Citron LLP as to U.S. Tax Matters<br> <u>Form S-1 - Registration Statement of WhiteFiber, Inc. Inc.</u>

Ladies and Gentlemen:

You have requested our opinion concerning the statements in the Registration Statement (as defined below) under the caption "Certain Material United States Federal Income Tax Considerations" in connection with the public offering of certain ordinary shares, par value $0.01 per share (the "<u>ordinary shares</u>"), of WhiteFiber, Inc. (the "<u>Company</u>") pursuant to the registration statement on Form S-1 under the Securities Act of 1933, as amended (the "<u>Act</u>"), originally filed by the Company with the Securities and Exchange Commission (the "<u>Commission</u>") on the date hereof (the "<u>Registration Statement</u>").

This opinion is being furnished to you as Exhibit 8.1 to the Registration Statement.

In connection with rendering the opinion set forth below, we have examined and relied on originals or copies of the following (collectively the "<u>Documents</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Registration Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such other documents, certificates and records as we have deemed necessary or appropriate as a basis for the opinion set forth below.

Our opinion is conditioned on the initial and continuing accuracy of the facts, information and analyses set forth in the Documents. All capitalized terms used but not otherwise defined herein shall have the respective meanings set forth in the Registration Statement.

![](ex8-1_002.jpg)

WhiteFiber, Inc.

July 11, 2025

For purposes of our opinion, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all Documents submitted to us as originals, the conformity to original Documents of all Documents submitted to us as certified, conformed, electronic, or photostatic copies, and the authenticity of the originals of such latter Documents. We have relied on a representation of the Company that such Documents are duly authorized, valid and enforceable. Furthermore, our opinion assumes, with your consent, that (i) the final executed version of any Document that has not been executed as of the date of this letter (including any underwriting agreement to be executed in connection with the offering of the ordinary shares) will be, in substance, identical to the version that we have reviewed, (ii) no material term or condition set forth in any executed Document (or the executed version of any Document described in clause (i) immediately above) will be amended, waived, or otherwise modified, and (iii) any transaction contemplated by any Document shall be consummated in accordance with the terms and conditions of the Document.

In addition, we have relied on factual statements and representations of the officers and other representatives of the Company and others, and we have assumed that such statements and representations are and will continue to be correct without regard to any qualification as to knowledge or belief.

We have not independently verified, and do not assume any responsibility for, the completeness or fairness of the Registration Statement and make no representation that the actions taken in connection with the preparation and review of the Registration Statement are sufficient to cause the Registration Statement to be complete or fair.

Our opinion is based on the United States Internal Revenue Code of 1986, as amended, United States Treasury regulations, judicial decisions, published positions of the United States Internal Revenue Service, and such other authorities as we have considered relevant, all as in effect as of the date of this opinion and all of which are subject to differing interpretations or change at any time (possibly with retroactive effect). A change in the authorities upon which our opinion is based could affect the conclusions expressed herein. There can be no assurance, moreover, that the opinion expressed herein will be accepted by the United States Internal Revenue Service or, if challenged, by a court.

Based upon and subject to the foregoing, we are of the opinion that, under current United States Federal income tax law, although the discussion set forth in the Registration Statement under the heading "Certain Material United States Federal Income Tax Considerations" does not purport to summarize all possible United States Federal income tax considerations of the ownership and disposition of the ordinary shares to United States Holders (as defined therein), such discussion constitutes, in all material respects, an accurate summary of the United States Federal income tax consequences of the ownership and disposition of the ordinary shares that are anticipated to be material to U.S. Holders who hold the ordinary shares pursuant to the Registration Statement, subject to the qualifications set forth in such discussion, and, to the extent that it sets forth any specific legal conclusion under United States Federal income tax law, except as otherwise provided therein, it represents our opinion.

![](ex8-1_002.jpg)

WhiteFiber, Inc.

July 11, 2025

Except as set forth above, we express no other opinion. This opinion is furnished to you in connection with the offering of the ordinary shares. This opinion is expressed as of the date hereof, and we are under no obligation to supplement or revise our opinion to reflect any legal developments or factual matters arising subsequent to the date hereof.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement, to the use of our name under the captions "Taxation" and "Legal Matters" in the prospectus supplement included in the Registration Statement and to the discussion of this opinion in the prospectus included in the Registration Statement. In giving such consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Act or the rules or regulations of the Commission promulgated thereunder.

---

| | | |
|:---|:---|:---|
|  | Very truly yours, | Very truly yours, |
|  | Davidoff Hutcher & Citron LLP | Davidoff Hutcher & Citron LLP |
|  | By: | /s/ Elliot H Lutzker |
|  |  | Elliot H Lutzker, Partner |
| EHL:esm |  |  |

---

## Exhibit 10.1

**Exhibit 10.1**

**WHITEFIBER, INC.**

**2025 OMNIBUS EQUITY INCENTIVE PLAN**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **PAGE** |
| Article 1. Effective Date, Objectives and Duration | Article 1. Effective Date, Objectives and Duration | 1 |
| 1.1 | Effective Date of the Plan | 1 |
| 1.2 | Objectives of the Plan | 1 |
| 1.3 | Duration of the Plan | 1 |
| Article 2. Definitions | Article 2. Definitions | 1 |
| 2.1 | "Applicable Law" | 1 |
| 2.2 | "Award" | 1 |
| 2.3 | "Award Agreement" | 1 |
| 2.4 | "Board" | 2 |
| 2.5 | "Bonus Shares" | 2 |
| 2.6 | "Cause" | 2 |
| 2.7 | "CEO" | 2 |
| 2.8 | "Code" | 2 |
| 2.9 | "Committee" | 2 |
| 2.10 | "Company" | 2 |
| 2.11 | "Compensation Committee" | 2 |
| 2.12 | "Corporate Transaction" | 2 |
| 2.13 | "Deferred Shares" | 2 |
| 2.14 | "Disability" or "Disabled" | 3 |
| 2.15 | "Dividend Equivalent" | 3 |
| 2.16 | "Effective Date" | 3 |
| 2.17 | "Eligible Person" | 3 |
| 2.18 | "Exchange Act" | 3 |
| 2.19 | "Exercise Price" | 3 |
| 2.20 | "Fair Market Value" | 3 |
| 2.21 | "Grant Date" | 4 |
| 2.22 | "Grantee" | 4 |
| 2.23 | "Incentive Share Option" | 4 |
| 2.24 | "Including" or "includes" means "including, without limitation," or "includes, without limitation," respectively. | 4 |
| 2.25 | "Non-Employee Director" | 4 |
| 2.26 | "Option" | 4 |
| 2.27 | "Other Share-Based Award" | 4 |
| 2.28 | "Performance Period" | 4 |
| 2.29 | "Performance Share" and "Performance Share Unit" | 4 |
| 2.30 | "Period of Restriction" | 4 |
| 2.31 | "Person" | 4 |
| 2.32 | "Restricted Shares" | 4 |
| 2.33 | "Restricted Share Units" | 4 |
| 2.34 | "Rule 16b-3" | 4 |
| 2.35 | "SEC" | 4 |
| 2.36 | "Section 16 Non-Employee Director" | 4 |
| 2.37 | "Section 16 Person" | 5 |
| 2.38 | "Share" | 5 |
| 2.39 | "Share Appreciation Right" or "SAR" | 5 |
| 2.40 | "Subsidiary" | 5 |
| 2.41 | "Surviving Company" | 5 |
| 2.42 | "Term" | 5 |
| 2.43 | "Termination of Affiliation" | 5 |

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-i-

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| | | |
|:---|:---|:---|
| Article 3. Administration | Article 3. Administration | 5.0 |
| 3.1 | Committee | 5.0 |
| 3.2 | Powers of Committee | 6.0 |
| 3.3 | No Repricings | 8.0 |
| Article 4. Shares Subject to the Plan | Article 4. Shares Subject to the Plan | 8.0 |
| 4.1 | Number of Shares Available for Grants | 8.0 |
| 4.2 | Adjustments in Authorized Shares and Awards; Corporate Transaction, Liquidation or Dissolution | 8.0 |
| Article 5. Eligibility and General Conditions of Awards | Article 5. Eligibility and General Conditions of Awards | 10.0 |
| 5.1 | Eligibility | 10.0 |
| 5.2 | Award Agreement | 10.0 |
| 5.3 | General Terms and Termination of Affiliation | 10.0 |
| 5.4 | Nontransferability of Awards | 10.0 |
| 5.5 | Cancellation and Rescission of Awards | 11.0 |
| 5.6 | Stand-Alone, Tandem and Substitute Awards | 11.0 |
| 5.7 | Compliance with Rule 16b-3 | 11.0 |
| 5.8 | Deferral of Award Payouts | 12.0 |
| Article 6. Share Options | Article 6. Share Options | 12.0 |
| 6.1 | Grant of Options | 12.0 |
| 6.2 | Award Agreement | 12.0 |
| 6.3 | Option Exercise Price | 12.0 |
| 6.4 | Grant of Incentive Share Options | 12.0 |
| 6.5 | Payment of Exercise Price | 13.0 |
| Article 7. Share Appreciation Rights | Article 7. Share Appreciation Rights | 14.0 |
| 7.1 | Issuance | 14.0 |
| 7.2 | Award Agreements | 14.0 |
| 7.3 | SAR Exercise Price | 14.0 |
| 7.4 | Exercise and Payment | 14.0 |
| Article 8. Restricted Shares | Article 8. Restricted Shares | 15.0 |
| 8.1 | Grant of Restricted Shares | 15.0 |
| 8.2 | Award Agreement | 15.0 |
| 8.3 | Consideration for Restricted Shares | 15.0 |
| 8.4 | Effect of Forfeiture | 15.0 |
| 8.5 | Escrow; Legends | 15.0 |
| Article 9. Performance Share Units and Performance Shares | Article 9. Performance Share Units and Performance Shares | 15.0 |
| 9.1 | Grant of Performance Share Units and Performance Shares | 15.0 |
| 9.2 | Value/Performance Goals | 16.0 |
| 9.3 | Earning of Performance Share Units and Performance Shares | 16.0 |

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-ii-

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| | | |
|:---|:---|:---|
| Article 10. Deferred Shares and Restricted Share Units | Article 10. Deferred Shares and Restricted Share Units | 17.0 |
| 10.1 | Grant of Deferred Shares and Restricted Share Units | 17.0 |
| 10.2 | Vesting and Delivery | 17.0 |
| 10.3 | Voting and Dividend Equivalent Rights Attributable to Deferred Shares and Restricted Share Units | 17.0 |
| Article 11. Dividend Equivalents | Article 11. Dividend Equivalents | 18.0 |
| Article 12. Bonus Shares | Article 12. Bonus Shares | 18.0 |
| Article 13. Other Share-Based Awards | Article 13. Other Share-Based Awards | 18.0 |
| Article 14. Non-Employee Director Awards | Article 14. Non-Employee Director Awards | 18.0 |
| Article 15. Amendment, Modification, and Termination | Article 15. Amendment, Modification, and Termination | 19.0 |
| 15.1 | Amendment, Modification, and Termination | 19.0 |
| 15.2 | Awards Previously Granted | 19.0 |
| Article 16. Compliance with Code Section 409A | Article 16. Compliance with Code Section 409A | 19.0 |
| Article 17. Withholding | Article 17. Withholding | 19.0 |
| 17.1 | Required Withholding | 19.0 |
| 17.2 | Notification under Code Section 83(b) | 20.0 |
| Article 18. Additional Provisions | Article 18. Additional Provisions | 20.0 |
| 18.1 | Successors | 20.0 |
| 18.2 | Severability | 20.0 |
| 18.3 | Requirements of Law | 20.0 |
| 18.4 | Securities Law Compliance | 21.0 |
| 18.5 | Forfeiture Events | 21.0 |
| 18.6 | No Rights as a Shareholder | 22.0 |
| 18.7 | Nature of Payments | 22.0 |
| 18.8 | Non-Exclusivity of Plan | 22.0 |
| 18.9 | Governing Law | 22.0 |
| 18.10 | Unfunded Status of Awards; Creation of Trusts | 22.0 |
| 18.11 | Affiliation | 22.0 |
| 18.12 | Participation | 22.0 |
| 18.13 | Construction | 22.0 |
| 18.14 | Headings | 23.0 |
| 18.15 | Obligations | 23.0 |
| 18.16 | No Right to Continue as Director | 23.0 |
| 18.17 | Shareholder Approval | 23.0 |
| 18.18 | Forfeiture of Shares | 23.0 |
| 18.19 | Share Issuances | 23.0 |
| 18.20 | No Dividends on Unvested Awards | 23.0 |

---

-iii-

**WHITEFIBER, INC.**

**2025 FIRST OMNIBUS EQUITY INCENTIVE PLAN**

**Article 1.<br> Effective Date, Objectives and Duration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Effective Date of the Plan**. The Board of WhiteFiber, Inc., an exempted company limited by shares and incorporated under the laws of the Cayman Islands (the "Company") adopted the WhiteFiber, Inc. 2025 Omnibus Incentive Plan (the "Plan") effective as of February 6, 2025 (the "Effective Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **Objectives of the Plan**. The Plan is intended (a) to allow selected employees of and consultants to the Company and its Subsidiaries to acquire or increase equity ownership in the Company, thereby strengthening their commitment to the success of the Company and stimulating their efforts on behalf of the Company, and to assist the Company and its Subsidiaries in attracting new employees, officers and consultants and retaining existing employees and consultants, (b) to optimize the profitability and growth of the Company and its Subsidiaries through incentives which are consistent with the Company's goals, (c) to provide Grantees with an incentive for excellence in individual performance, (d) to promote teamwork among employees, consultants and Non-Employee Directors, and (e) to attract and retain highly qualified persons to serve as Non-Employee Directors and to promote ownership by such Non-Employee Directors of a greater proprietary interest in the Company, thereby aligning such Non-Employee Directors' interests more closely with the interests of the Company's shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **Duration of the Plan**. The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board to amend or terminate the Plan at any time pursuant to Article 15 hereof, until the earlier of the tenth anniversary of the Effective Date, or the date all Shares subject to the Plan shall have been purchased or acquired and the restrictions on all Restricted Shares granted under the Plan shall have lapsed, according to the Plan's provisions.

**Article 2.<br> Definitions**

Whenever used in the Plan, the following terms shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **"**<u>Applicable Law</u>**"** means (i) the laws of the Cayman Islands as they relate to the Company and its Shares; (ii) the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders of any jurisdiction applicable to Awards granted to residents; and (iii) the rules of any applicable securities exchange, national market system or automated quotation system on which the Shares are listed, quoted or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **"**<u>Award</u>**"** means Options (including non-qualified options and Incentive Share Options), SARs, Restricted Shares, Performance Share Units (which may be paid in cash), Performance Shares, Deferred Shares, Restricted Share Units, Dividend Equivalents, Bonus Shares or Other Share-Based Awards granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 **"**<u>Award Agreement</u>**"** means either (a) a written agreement entered into by the Company and a Grantee setting forth the terms and provisions applicable to an Award granted under the Plan, or (b) a written statement issued by the Company to a Grantee describing the terms and provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use of electronic, internet or other non-paper Award Agreements and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 **"**<u>Board</u>**"** means the Board of Directors of the Company, from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 **"**<u>Bonus Shares</u>**"** means Shares that are awarded to a Grantee with or without cost and without restrictions either in recognition of past performance (whether determined by reference to another employee benefit plan of the Company or otherwise), as an inducement to become an Eligible Person or, with the consent of the Grantee, as payment in lieu of any cash remuneration otherwise payable to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 **"**<u>Cause</u>**"** means, except as otherwise defined in an Award 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;(a) the commission of any act by a Grantee constituting a felony or crime of moral turpitude (or their equivalent in a non-United States 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) an act of dishonesty, fraud, intentional misrepresentation, or harassment which, as determined in good faith by the Committee, would: (i) materially adversely affect the business or the reputation of the Company or any of its Subsidiaries with their respective current or prospective customers, suppliers, lenders and/or other third parties with whom such entity does or might do business; or (ii) expose the Company or any of its Subsidiaries to a risk of civil or criminal legal damages, liabilities or penalties;

&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 material misconduct in violation of the Company's or a Subsidiary's written policies; 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) willful and deliberate non-performance of the Grantee's duties in connection with the business affairs of the Company or its Subsidiaries;

*provided, however*, that if the Grantee has a written employment or consulting agreement with the Company or any of its Subsidiaries or participates in any severance plan established by the Company applicable to Awards granted to the Grantee under the Plan that includes a definition of "cause" (or a substantially equivalent term), then Cause shall have the meaning set forth in such employment or consulting agreement or severance plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 "<u>CEO</u>" means the Chief Executive Officer of the Company or any other named executive officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 "<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time. References to a particular section of the Code include references to regulations and rulings thereunder and to successor provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 "<u>Committee</u>" has the meaning set forth in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 "<u>Company</u>" means WhiteFiber, Inc., an exempted company limited by shares and incorporated under the laws of the Cayman Islands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 "<u>Compensation Committee</u>" means the compensation committee of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 "<u>Corporate Transaction</u>" has the meaning set forth in Section 4.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 "<u>Deferred Shares</u>" means a right, granted under Article 10, to receive Shares at the end of a specified deferral period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 "<u>Disability</u>" or "<u>Disabled</u>" means, unless otherwise defined in an Award Agreement, or as otherwise determined under procedures established by the Committee for purposes of the Plan, a Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 "<u>Dividend Equivalent</u>" means a right to receive payments equal to dividends or property, if and when paid or distributed, on a specified number of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 "<u>Effective Date</u>" has the meaning set forth in Section 1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 "<u>Eligible Person</u>" means any individual who is an employee (including any officer) of, a non-employee consultant to, or a Non-Employee Director of, the Company or any Subsidiary; provided, however, that solely with respect to the grant of an Incentive Share Option, an Eligible Person shall be any employee (including any officer) of the Company or any Subsidiary. Notwithstanding the foregoing, an Eligible Person shall also include an individual who is expected to become an employee to, non-employee consultant of or Non-Employee Director of the Company or any Subsidiary within a reasonable period of time after the grant of an Award (other than an Incentive Share Option); provided that any Award granted to any such individual shall be automatically terminated and cancelled without consideration if the individual does not begin performing services for the Company or any Subsidiary within twelve (12) months after the Grant Date. Solely for purposes of Section 5.6(b), current or former employees or non-employee directors of, or consultants to, an Acquired Entity who receive Substitute Awards in substitution for Acquired Entity Awards shall be considered Eligible Persons under this Plan with respect to such Substitute Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended from time to time. References to a particular section of the Exchange Act include references to successor provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 "<u>Exercise Price</u>" means (a) with respect to an Option, the price at which a Share may be purchased by a Grantee pursuant to such Option or (b) with respect to an SAR, the price established at the time an SAR is granted pursuant to Article 7, which is used to determine the amount, if any, of the payment due to a Grantee upon exercise of the SAR. Notwithstanding the foregoing, the Exercise Price may never be less than the par value per Share of US$0.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 "<u>Fair Market Value</u>" means, as of any date, unless otherwise specifically provided in an Award Agreement, the value of Shares determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Shares are listed on one or more established and regulated securities exchanges, national market systems or automated quotation systems on which Shares are listed, quoted or traded, Fair Market Value means a price that is based on the opening, closing, actual, high, low, or the arithmetic mean of selling prices of a Share reported on the principal exchange or system on which the Shares are traded on the applicable date or the preceding trading 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;(b) If the Shares are traded over the counter at the time a determination of Fair Market Value is required to be made hereunder, Fair Market Value shall be deemed to be equal to the arithmetic mean between the reported high and low or closing bid and asked prices of a Share on the applicable date, or if no such trades were made that day then the most recent date on which Shares were publicly traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event Shares are not publicly traded at the time a determination of their value is required to be made hereunder, the determination of their Fair Market Value shall be made by the Committee in such manner as it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 "<u>Grant Date</u>" means the date on which an Award is granted or such later date as specified in advance by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 "<u>Grantee</u>" means a person who has been granted an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 "<u>Incentive Share Option</u>" means an Option that is intended to meet the requirements of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 "<u>Including</u>" or "<u>includes</u>" means "including, without limitation," or "includes, without limitation," respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 "<u>Non-Employee Director</u>" means a member of the Board who is not an employee of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 "<u>Option</u>" means an option granted under Article 6 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 "<u>Other Share-Based Award</u>" means a right, granted under Article 13 hereof, that relates to or is valued by reference to Shares or other Awards relating to Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 "<u>Performance Period</u>" means, with respect to an Award of Performance Shares or Performance Share Units, the period of time during which the performance vesting conditions applicable to such Award must be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 "<u>Performance Share</u>" and "<u>Performance Share Unit</u>" have the respective meanings set forth in Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 "<u>Period of Restriction</u>" means the period during which Restricted Shares are subject to forfeiture if the conditions specified in the Award Agreement are not satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31 "<u>Person</u>" means any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or government instrumentality, division, agency, body or department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32 "<u>Restricted Shares</u>" means Shares, granted under Article 8, that are both subject to forfeiture and are nontransferable if the Grantee does not satisfy the conditions specified in the Award Agreement applicable to such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33 "<u>Restricted Share Units</u>" are rights, granted under Article 10, to receive Shares if the Grantee satisfies the conditions specified in the Award Agreement applicable to such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34 "<u>Rule 16b-3</u>" means Rule 16b-3 promulgated by the SEC under the Exchange Act, as amended from time to time, together with any successor rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35 "<u>SEC</u>" means the United States Securities and Exchange Commission, or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36 "<u>Section 16 Non-Employee Director</u>" means a member of the Board who satisfies the requirements to qualify as a "non-employee director" under Rule 16b-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37 "<u>Section 16 Person</u>" means a person who is subject to potential liability under Section 16(b) of the Exchange Act with respect to transactions involving equity securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.38 "<u>Share</u>" means an ordinary share of the Company, par value US$0.01, and such other securities of the Company, as may be substituted or resubstituted for Shares pursuant to Section 4.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.39 "<u>Share Appreciation Right</u>" or "<u>SAR</u>" means an Award granted under Article 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.40 "<u>Subsidiary</u>" means any corporation or other entity, including but not limited to partnerships, limited liability companies, exempted companies and joint ventures, with respect to which the Company, directly or indirectly, owns as applicable (a) shares possessing more than fifty percent (50%) of the total combined voting power of all classes of shares entitled to vote, or more than fifty percent (50%) of the total value of all shares of all classes of shares of such corporation, or (b) an aggregate of more than fifty percent (50%) of the profits interest or capital interest of a non-corporate entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41 "<u>Surviving Company</u>" means (a) the surviving entity in any merger, consolidation or similar transaction, involving the Company (including the Company if the Company is the surviving entity), (b) or the direct or indirect parent company of such surviving entity or (c) the direct or indirect parent company of the Company following a sale of substantially all of the issued and outstanding Shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.42 "<u>Term</u>" of any Option or SAR means the period beginning on the Grant Date of an Option or SAR and ending on the date such Option or SAR expires, terminates or is cancelled. No Option or SAR granted under this Plan shall have a Term exceeding 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.43 "<u>Termination of Affiliation</u>" occurs on the first day on which an individual is for any reason no longer performing services for the Company or any Subsidiary in the capacity of an employee of, a non-employee consultant to, or a Non-Employee Director of, the Company or any Subsidiary or with respect to an individual who is an employee of, a non-employee consultant to or a Non-Employee Director of a Subsidiary, the first day on which such entity ceases to be a Subsidiary of the Company unless such individual continues to perform Services for the Company or another Subsidiary without interruption after such entity ceases to be a Subsidiary.

**Article 3.<br> Administration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 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) Subject to Article 14, and to subsection (b) and to Section 3.2, the Plan shall be administered by the Compensation Committee. In the event that the Board determines that the Compensation Committee shall not be the administrator of the Plan, the term "Committee" as used hereunder shall (except as provided for in subsection (b)) mean the committee of the Board designated to administer the Plan, or the full Board should the Board so designate. The Committee may delegate to the CEO any or all of the authority of the Committee with respect to Awards to Grantees other than Grantees who are executive officers, Non-Employee Directors, or Section 16 Persons at the time any such delegated authority is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the context requires otherwise, any references herein to "Committee" include references to the CEO to the extent the CEO has been delegated authority pursuant to subsection (a); provided that (i) for purposes of Awards to Non-Employee Directors, "Committee" shall include only the full Board, and (ii) for purposes of Awards intended to comply with Rule 16b-3, the "Committee" shall include only the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Powers of Committee. Subject to and consistent with the provisions of the Plan (including Article 14), the Committee has full and final authority and sole discretion as follows; provided that any such authority or discretion exercised with respect to a specific Non-Employee Director shall be approved by a majority of the members of the Board, but excluding the Non-Employee Director with respect to whom such authority or discretion is exercised:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to determine when, to whom and in what types and amounts Awards should be granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to grant Awards to Eligible Persons in any number and to determine the terms and conditions applicable to each Award (including the number of Shares or the amount of cash or other property to which an Award will relate, any Exercise Price or purchase price, any limitation or restriction, any schedule for or performance conditions relating to the earning of the Award or the lapse of limitations, forfeiture restrictions, restrictions on exercisability or transferability, any performance goals including those relating to the Company and/or a Subsidiary and/or any division thereof and/or an individual, and/or vesting based on the passage of time, based in each case on such considerations as the Committee shall determine);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to determine the benefit payable, including where applicable the number of Shares issued, under any Performance Share Unit, Performance Share, Dividend Equivalent, Other Share-Based Award or Cash Incentive Award and to determine whether any performance or vesting conditions have been 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;(d) to determine whether or not specific Awards shall be granted in connection with other specific Awards, and if so, whether they shall be exercisable cumulatively with, or alternatively to, such other specific Awards and all other matters to be determined in connection with an 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;(e) to determine the Term of any Option or SAR;

&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 determine the amount, if any, that a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash dividends thereon to be deferred and the terms related thereto, when Restricted Shares (including Restricted Shares acquired upon the exercise of an Option) shall be forfeited and whether such shares shall be held in escrow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to determine whether, to what extent and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Shares, other Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered or any terms of the Award may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all of the terms and conditions applicable to, any Award or any group of Awards for any reason and at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) to determine with respect to Awards granted to Eligible Persons whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award will be deferred, either at the election of the Grantee or automatically pursuant to the terms of the Award 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;(i) to offer to exchange or buy out any previously granted Award for a payment in cash, Shares or other 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;(j) to construe and interpret the Plan and to make all determinations, including factual determinations, necessary or advisable for the administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to make, amend, suspend, waive and rescind rules and regulations relating to the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) to appoint such agents as the Committee may deem necessary or advisable to administer the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to determine the terms and conditions of all Award Agreements applicable to Eligible Persons (which need not be identical) and, with the consent of the Grantee, to amend any such Award Agreement at any time, among other things, to permit transfers of such Awards to the extent permitted by the Plan; provided that the consent of the Grantee shall not be required for any amendment (i) which does not adversely affect the rights of the Grantee, or (ii) which is necessary or advisable (as determined by the Committee) to carry out the purpose of the Award as a result of any new Applicable Law or change in an existing Applicable Law, or (iii) to the extent the Award Agreement specifically permits amendment without 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;(n) to cancel, with the consent of the Grantee, outstanding Awards and to grant new Awards in substitution therefor;

&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) to impose such additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or concurrently with the grant thereof, deem appropriate, including limiting the percentage of Awards which may from time to time be exercised by a Grantee;

&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) to make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events (including events described in Section 4.2) affecting the Company or a Subsidiary or the financial statements of the Company or a Subsidiary, or in response to changes in Applicable Law, regulations or 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;(q) to correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules and regulations, and Award Agreement or any other instrument entered into or relating to an Award under the Plan; 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;(r) to take any other action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan.

Any action of the Committee with respect to the Plan shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries, any Grantee, any person claiming any rights under the Plan from or through any Grantee, and shareholders. If not specified in the Plan, the time at which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified by the Committee. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. Subject to Section 3.1(b), the Committee may delegate to officers of the Company or any Subsidiary the authority, subject to such terms as the Committee shall determine, to perform specified functions under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>No Repricings</u>. Notwithstanding any provision in Section 3.2 to the contrary, the terms of any outstanding Option or SAR may not be amended to reduce the Exercise Price of such Option or SAR or cancel any outstanding Option or SAR in exchange for other Options or SARs with an Exercise Price that is less than the Exercise Price of the cancelled Option or SAR or for any cash payment (or Shares having a Fair Market Value) in an amount that exceeds the excess of the Fair Market Value of the Shares underlying such cancelled Option or SAR over the aggregate Exercise Price of such Option or SAR or for any other Award, without shareholder approval; provided, however, that the restrictions set forth in this Section 3.3, shall not apply (i) unless the Company has a class of shares that is registered under Section 12 of the Exchange Act or (ii) to any adjustment allowed under Section 4.2.

**Article 4.<br> Shares Subject to the Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Number of Shares Available for Grants</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 adjustment as provided in Section 4.2 and except as provided in Section 5.6(b), the maximum number of Shares hereby reserved for issuance under the Plan (including Incentive Share Options) shall be twelve million (12,000,000) 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;(b) If any Shares subject to an Award granted hereunder (other than a Substitute Award granted pursuant to Section 5.6(b)) are forfeited or such Award otherwise terminates without payment or delivery of such Shares, the Shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for grant under the Plan except where otherwise specified hereunder. For avoidance of doubt, however, if any Shares subject to an Award granted hereunder are withheld or applied as payment in connection with the exercise of an Award or the withholding or payment of taxes related thereto ("Returned Shares"), such Returned Shares will be treated as having been delivered for purposes of determining the maximum number of Shares available for grant under the Plan and shall not again be treated as available for grant under the Plan. Moreover, the number of Shares available for issuance under the Plan may not be increased through the Company's purchase of Shares on the open market with the proceeds obtained from the exercise of any Options granted hereunder. Upon settlement of an SAR, the number of Shares underlying the portion of the SAR that is exercised will be treated as having been delivered for purposes of determining the maximum number of Shares available for grant under the Plan and shall not again be treated as available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Shares issued pursuant to the Plan may be, in whole or in part, authorized and unissued Shares, or treasury Shares, including Shares repurchased by the Company for purposes of the Plan. Additionally, at the discretion of the Committee, any Shares distributed pursuant to an Award may be represented by American Depositary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Adjustments in Authorized Shares and Awards; Corporate Transaction, Liquidation or Dissolution.

&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>Adjustment in Authorized Shares and Awards</u>. In the event that the Committee determines that any dividend or other distribution (whether in the form of cash, equity, or other property), recapitalization, forward or reverse share split, subdivision, consolidation or reduction of capital, reorganization, merger, consolidation, scheme of arrangement, split-up, spin-off or combination involving the Company or repurchase or exchange of Shares or other securities of the Company or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event affects the Shares such that any adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of Shares (or other securities or property) subject to outstanding Awards, (iii) the Exercise Price with respect to any Option or SAR or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award, and (iv) the number and kind of Shares of outstanding Restricted Shares, or the Shares underlying any other form of Award. Notwithstanding the foregoing, no such adjustment shall be authorized with respect to any Options or SARs to the extent that such adjustment would cause the Option or SAR to violate Section 424(a) of the Code or otherwise subject any Grantee to taxation under Section 409A of the Code; and *provided further* that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

&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>Merger, Consolidation or Similar Corporate Transaction</u>. In the event of a merger or consolidation of the Company with or into another entity or a sale of substantially all of the Shares of the Company (a "Corporate Transaction"), unless an outstanding Award is assumed by the Surviving Company or replaced with an equivalent Award granted by the Surviving Company in substitution for such outstanding Award, the Committee shall cancel any outstanding Awards that are not vested and non-forfeitable as of the consummation of such Corporate Transaction (unless the Committee accelerates the vesting of any such Awards) and with respect to any vested and non-forfeitable Awards, the Committee may either (i) allow all Grantees to exercise such Awards of Options and SARs within a reasonable period prior to the consummation of the Corporate Transaction and cancel any outstanding Options or SARs that remain unexercised upon consummation of the Corporate Transaction, or (ii) cancel any or all of such outstanding Awards in exchange for a payment (in cash, or in securities or other property) in an amount equal to the amount that the Grantee would have received (net of the Exercise Price with respect to any Options or SARs) if such vested Awards were settled or distributed or such vested Options and SARs were exercised immediately prior to the consummation of the Corporate Transaction. Notwithstanding the foregoing, if an Option or SAR is not assumed by the Surviving Company or replaced with an equivalent Award issued by the Surviving Company and the Exercise Price with respect to any outstanding Option or SAR exceeds the Fair Market Value of the Shares immediately prior to the consummation of the Corporation Transaction, such Awards shall be cancelled without any payment to the Grantee.

&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>Liquidation, Winding-Up or Dissolution of the Company</u>. In the event of the proposed liquidation, winding-up or dissolution of the Company, each Award will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee. Additionally, the Committee may, in the exercise of its sole discretion, cause Awards to be vested and non-forfeitable and cause any conditions on any such Award to lapse, as to all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable or non-forfeitable and allow all Grantees to exercise such Awards of Options and SARs within a reasonable period prior to the consummation of such proposed action. Any Awards that remain unexercised upon consummation of such proposed action shall be cancelled.

**Article 5.<br> Eligibility and General Conditions of Awards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Eligibility</u>. The Committee may in its discretion grant Awards to any Eligible Person, whether or not he or she has previously received an Award; provided, however, that all Awards made to Non-Employee Directors shall be determined by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Award Agreement</u>. To the extent not set forth in the Plan, the terms and conditions of each Award shall be set forth in an Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>General Terms and Termination of Affiliation</u>. The Committee may impose on any Award or the exercise or settlement thereof, at the date of grant or, subject to the provisions of Section 15.2, thereafter, such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine, including terms requiring forfeiture, acceleration or pro-rata acceleration of Awards in the event of a Termination of Affiliation by the Grantee. Awards may be granted for no consideration other than prior and future services. Except as set forth in an Award Agreement or as otherwise determined by the Committee, (a) all Options and SARs that are not vested and exercisable at the time of a Grantee's Termination of Affiliation, and any other Awards that remain subject to a risk of forfeiture or which are not otherwise vested at the time of the Grantee's Termination of Affiliation shall be forfeited to the Company and (b) all outstanding Options and SARs not previously exercised shall expire three months after the Grantee's Termination of Affiliation. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Non-transferability of Awards</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 Award and each right under any Award shall be exercisable only by the Grantee during the Grantee's lifetime, or, if permissible under Applicable Law, by the Grantee's guardian or legal representative.

&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 Award (prior to the time, if applicable, Shares are delivered in respect of such Award), and no right under any Award, may be assigned, alienated, pledged, mortgaged, encumbered, attached, sold or otherwise transferred or encumbered by a Grantee otherwise than by will or by the laws of descent and distribution (or in the case of Restricted Shares, to the Company), and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Subsidiary; provided that the designation of a beneficiary to receive benefits in the event of the Grantee's death shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

&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 subsections (a) and (b) above, to the extent provided in the Award Agreement or as otherwise approved by the Committee, Options (other than Incentive Share Options) and Restricted Shares, may be transferred, without consideration, to a Permitted Transferee. For this purpose, a "Permitted Transferee" in respect of any Grantee means any member of the Immediate Family of such Grantee, any trust of which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any partnership (including limited liability companies and similar entities) of which all of the partners or members are such Grantee or members of his or her Immediate Family; and the "Immediate Family" of a Grantee means the Grantee's spouse, children, stepchildren, grandchildren, parents, stepparents, siblings, grandparents, nieces and nephews. Such Option may be exercised by such transferee in accordance with the terms of the Award Agreement. If so determined by the Committee, a Grantee may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Grantee, and to receive any distribution with respect to any Award upon the death of the Grantee. A transferee, beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through any Grantee shall be subject to and consistent with the provisions of the Plan and any applicable Award Agreement, except to the extent the Plan and Award Agreement otherwise provide with respect to such persons, and to any additional restrictions or limitations deemed necessary or appropriate by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Cancellation and Rescission of Awards</u>. Unless the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold, or otherwise limit or restrict any unexercised Award at any time if the Grantee is not in compliance with all applicable provisions of the Award Agreement and the Plan or if the Grantee has a Termination of Affiliation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Stand-Alone, Tandem and Substitute Awards</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) Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other Award granted under the Plan unless such tandem or substitution Award would subject the Grantee to tax penalties imposed under Section 409A of the Code. If an Award is granted in substitution for another Award or any non-Plan award or benefit, the Committee shall require the surrender of such other Award or non-Plan award or benefit in consideration for the grant of the new Award. Awards granted in addition to or in tandem with other Awards or non-Plan awards or benefits may be granted either at the same time as or at a different time from the grant of such other Awards or non-Plan awards or benefits; provided, however, that if any SAR is granted in tandem with an Incentive Share Option, such SAR and Incentive Share Option must have the same Grant Date, Term and the Exercise Price of the SAR may not be less than the Exercise Price of the Incentive Share 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;(b) The Committee may, in its discretion and on such terms and conditions as the Committee considers appropriate in the circumstances, grant Awards under the Plan ("Substitute Awards") in substitution for Shares and Share-based awards ("Acquired Entity Awards") held by current or former employees or non-employee directors of, or consultants to, another corporation or entity who become Eligible Persons as the result of a merger or consolidation of the employing corporation or other entity (the "Acquired Entity") with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or shares of the Acquired Entity immediately prior to such merger, consolidation or acquisition in order to preserve for the Grantee the economic value of all or a portion of such Acquired Entity Award at such price as the Committee determines necessary to achieve preservation of economic value. The limitations in Section 4.1(a) on the number of Shares reserved or available for grants shall not apply to Substitute Awards granted under this Section 5.6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Compliance with Rule 16b-3</u>. The provisions of this Section 5.7 will not apply unless and until the Company has a class of Shares that is registered under Section 12 of the Exchange Act and fails to qualify as a foreign private issuer as defined 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;(a) <u>Six-Month Holding Period Advice</u>. Unless a Grantee could otherwise dispose of or exercise a derivative security or dispose of Shares issued under the Plan without incurring liability under Section 16(b) of the Exchange Act, the Committee may advise or require a Grantee to comply with the following in order to avoid incurring liability under Section 16(b) of the Exchange Act: (i) at least six months must elapse from the date of acquisition of a derivative security under the Plan to the date of disposition of the derivative security (other than upon exercise or conversion) or its underlying equity security, and (ii) Shares granted or awarded under the Plan other than upon exercise or conversion of a derivative security must be held for at least six months from the date of grant of an 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;(b) <u>Reformation to Comply with Exchange Act Rules</u>. To the extent the Committee determines that a grant or other transaction by a Section 16 Person should comply with applicable provisions of Rule 16b-3 (except for transactions exempted under alternative Exchange Act rules), the Committee shall take such actions as necessary to make such grant or other transaction so comply, and if any provision of this Plan or any Award Agreement relating to a given Award does not comply with the requirements of Rule 16b-3 as then applicable to any such grant or transaction, such provision will be construed or deemed amended, if the Committee so determines, to the extent necessary to conform to the then applicable requirements of Rule 16b-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Rule 16b-3 Administration</u>. Any function relating to a Section 16 Person shall be performed solely by the Committee or the Board if necessary to ensure compliance with applicable requirements of Rule 16b-3, to the extent the Committee determines that such compliance is desired. Each member of the Committee or person acting on behalf of the Committee shall be entitled to, in good faith, rely or act upon any report or other information furnished to him by any officer, manager or other employee of the Company or any Subsidiary, the Company's independent certified public accountants or any executive compensation consultant or attorney or other professional retained by the Company to assist in the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Deferral of Award Payouts</u>. The Committee may permit a Grantee to defer, or if and to the extent specified in an Award Agreement require the Grantee to defer, receipt of the payment of cash or the delivery of Shares that would otherwise be due by virtue of the lapse or waiver of restrictions with respect to Restricted Share Units, the satisfaction of any requirements or goals with respect to Performance Share Units or Performance Shares, the lapse or waiver of the deferral period for Deferred Shares, or the lapse or waiver of restrictions with respect to Other Share-Based Awards or Cash Incentive Awards. If the Committee permits such deferrals, the Committee shall establish rules and procedures for making such deferral elections and for the payment of such deferrals. Except as otherwise provided in an Award Agreement, any payment or any Shares that are subject to such deferral shall be made or delivered to the Grantee as specified in the Award Agreement or pursuant to the Grantee's deferral election.

**Article 6.<br> Share Options**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Grant of Options</u>. Subject to and consistent with the provisions of the Plan, Options may be granted to any Eligible Person in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Award Agreement</u>. Each Option grant shall be evidenced by an Award Agreement that shall specify the Exercise Price, the Term of the Option, the number of Shares to which the Option pertains, the time or times at which such Option shall be exercisable and such other provisions as the Committee shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Option Exercise Price</u>. The Exercise Price of an Option under this Plan shall be determined in the sole discretion of the Committee but may not be less than 100% of the Fair Market Value of a Share on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Grant of Incentive Share Options</u>. At the time of the grant of any Option, the Committee may in its discretion designate that such Option shall be made subject to additional restrictions to permit it to qualify as an Incentive Share Option. Any Option designated as an Incentive Share 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;(a) shall be granted only to an employee of the Company or a Subsidiary;

&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) shall have an Exercise Price of not less than 100% of the Fair Market Value of a Share on the Grant Date, and, if granted to a person who owns Shares (including Shares treated as owned under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of shares of the Company or any Subsidiary (a "More Than 10% Owner"), have an Exercise Price not less than 110% of the Fair Market Value of a Share on its Grant 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;(c) shall be for a period of not more than 10 years (five years if the Grantee is a More Than 10% Owner) from its Grant Date, and shall be subject to earlier termination as provided herein or in the applicable Award 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) shall not have an aggregate Fair Market Value (as of the Grant Date) of the Shares with respect to which Incentive Share Options (whether granted under the Plan or any other share option plan of the Grantee's employer or any parent or Subsidiary ("Other Plans")) are exercisable for the first time by such Grantee during any calendar year ("Current Grant"), determined in accordance with the provisions of Section 422 of the Code, which exceeds US$100,000 (the "$100,000 Limit");

&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) shall, if the aggregate Fair Market Value of the Shares (determined on the Grant Date) with respect to the Current Grant and all Incentive Share Options previously granted under the Plan and any Other Plans which are exercisable for the first time during a calendar year ("Prior Grants") would exceed the $100,000 Limit, be, as to the portion in excess of the $100,000 Limit, exercisable as a separate option that is not an Incentive Share Option at such date or dates as are provided in the Current Grant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) shall require the Grantee to notify the Committee of any disposition of any Shares issued pursuant to the exercise of the Incentive Share Option under the circumstances described in Section 421(b) of the Code (relating to holding periods and certain disqualifying dispositions) ("Disqualifying Disposition") within 10 days of such a Disqualifying Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) shall by its terms not be assignable or transferable other than by will or the laws of descent and distribution and may be exercised, during the Grantee's lifetime, only by the Grantee; provided, however, that the Grantee may, to the extent provided in the Plan in any manner specified by the Committee, designate in writing a beneficiary to exercise his or her Incentive Share Option after the Grantee's death; 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;(h) shall, if such Option nevertheless fails to meet the foregoing requirements, or otherwise fails to meet the requirements of Section 422 of the Code for an Incentive Share Option, be treated for all purposes of this Plan, except as otherwise provided in subsections (d) and (e) above, as an Option that is not an Incentive Share Option.

Notwithstanding the foregoing and Section 3.2, the Committee may, without the consent of the Grantee, at any time before the exercise of an Option (whether or not an Incentive Share Option), take any action necessary to prevent such Option from being treated as an Incentive Share Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Payment of Exercise Price</u>. Except as otherwise provided in an Award Agreement, Options shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares made by any one or more of the following 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;(a) cash, personal check or wire transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with the approval of the Committee, delivery of Shares owned by the Grantee prior to exercise, valued at Fair Market Value on the date of exercise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with the approval of the Committee, Shares acquired upon the exercise of such Option, such Shares valued at Fair Market Value on the date of exercise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with the approval of the Committee, Restricted Shares held by the Grantee prior to the exercise of the Option, valued at Fair Market Value on the date of exercise; 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;(e) subject to Applicable Law (including the prohibited loan provisions of Section 402 of the Sarbanes Oxley Act of 2002 if applicable), through the sale of the Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable notice of exercise and irrevocable instructions to deliver promptly to the Company the amount of sale proceeds sufficient to pay for such Shares, together with, if requested by the Company, the amount of federal, state, local or foreign withholding taxes payable by Grantee by reason of such exercise.

The Committee may in its discretion specify that, if any Restricted Shares ("Tendered Restricted Shares") are used to pay the Exercise Price, (x) all the Shares acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise of the Option, or (y) a number of Shares acquired on exercise of the Option equal to the number of Tendered Restricted Shares shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise of the Option.

**Article 7.<br> Share Appreciation Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Issuance</u>. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant SARs to any Eligible Person either alone or in addition to other Awards granted under the Plan. Such SARs may, but need not, be granted in connection with a specific Option granted under Article 6. The Committee may impose such conditions or restrictions on the exercise of any SAR as it shall deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Award Agreements</u>. Each SAR grant shall be evidenced by an Award Agreement in such form as the Committee may approve and shall contain such terms and conditions not inconsistent with other provisions of the Plan as shall be determined from time to time by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>SAR Exercise Price</u>. The Exercise Price of a SAR shall be determined by the Committee in its sole discretion; provided that the Exercise Price shall not be less than 100% of the Fair Market Value of a Share on the date of the grant of the SAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Exercise and Payment</u>. Upon the exercise of an SAR, a Grantee shall be entitled to receive payment from the Company in an amount determined by multiplying:

&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 excess of the Fair Market Value of a Share on the date of exercise over the Exercise Price; by

&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 number of Shares with respect to which the SAR is exercised.

SARs shall be deemed exercised on the date written notice of exercise in a form acceptable to the Committee is received by the Company. The Company shall make payment in respect of any SAR within five (5) days of the date the SAR is exercised. Any payment by the Company in respect of a SAR may be made in cash, Shares, other property, or any combination thereof, as the Committee, in its sole discretion, shall determine or, to the extent permitted under the terms of the applicable Award Agreement, at the election of the Grantee.

**Article 8.<br> Restricted Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Grant of Restricted Shares</u>. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant Restricted Shares to any Eligible Person in such amounts as the Committee shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Award Agreement</u>. Each grant of Restricted Shares shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Restricted Shares granted, and such other provisions as the Committee shall determine. The Committee may impose such conditions and/or restrictions on any Restricted Shares granted pursuant to the Plan as it may deem advisable, including restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, and/or restrictions under applicable securities laws; provided that such conditions and/or restrictions may lapse, if so determined by the Committee, in the event of the Grantee's Termination of Affiliation due to death, Disability, or involuntary termination by the Company or a Subsidiary without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Consideration for Restricted Shares</u>. The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Effect of Forfeiture</u>. If Restricted Shares are forfeited, and if the Grantee was required to pay for such shares or acquired such Restricted Shares upon the exercise of an Option, the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price equal to the lesser of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair Market Value of a Share on the date of such forfeiture. The Company shall pay to the Grantee the deemed sale price as soon as is administratively practical. Such Restricted Shares shall cease to be outstanding and shall no longer confer on the Grantee thereof any rights as a shareholder of the Company, from and after the date of the event causing the forfeiture, whether or not the Grantee accepts the Company's tender of payment for such Restricted Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Escrow; Legends</u>. The Committee may provide that the certificates (if any) for any Restricted Shares (x) shall be held (together with a share transfer power executed in blank by the Grantee) in escrow by the Company until such Restricted Shares become non-forfeitable or are forfeited and/or (y) shall bear an appropriate legend restricting the transfer of such Restricted Shares under the Plan. If any Restricted Shares become non-forfeitable, the Company shall cause certificates (if any) for such shares to be delivered without such legend.

**Article 9.<br> Performance Share Units and Performance Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Grant of Performance Share Units and Performance Shares</u>. Subject to and consistent with the provisions of the Plan, Performance Share Units or Performance Shares may be granted to any Eligible Person in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. The Committee shall have the authority, at the time of grant of any Award under this Plan, to designate such Award as an Award intended to qualify as "performance-based compensation" under Section 162(m) of the Code. The Committee shall also have the authority to make an award of a cash bonus to any Grantee and designate such Award as an Award intended to qualify as "performance-based compensation" under Section 162(m) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Value/Performance Goals</u>. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units or Performance Shares that will be paid to the Grantee.

&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>Performance Unit</u>. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance Share</u>. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Earning of Performance Share Units and Performance Shares</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) After the applicable Performance Period has ended, the holder of Performance Units or Performance Shares shall be entitled to payment based on the level of achievement of performance goals set by the Committee. In determining the actual amount of an individual Grantee's performance compensation Award for a Performance Period, the Committee may reduce or eliminate the amount of the performance compensation Award earned during the Performance Period through the use of negative discretion (consistent with Section 162(m) of the Code) if, in its sole judgment, such reduction or elimination is appropriate. The Committee shall not have the discretion, except as is otherwise provided in this Plan, to (A) grant or provide payment in respect of performance compensation Awards for a Performance Period if the performance goals for such Performance Period have not been attained; or (B) increase a performance compensation Award above the applicable overall share issuance limitations set forth in 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;(b) The performance criteria that will be used to establish the performance goal(s) required to be achieved for the vesting of Performance Share Units or Performance Shares shall be based on the attainment of specific levels of performance of the Company and/or one or more Affiliates, divisions or operational units, or any combination of the foregoing, as determined by the Committee, which criteria will be based on one or more of the following business criteria or any combination thereof: (i) revenue; (ii) sales; (iii) profit (net profit, gross profit, operating profit, economic profit, profit margins or other corporate profit measures); (iv) earnings (EBIT, EBITDA, earnings per share, or other corporate earnings measures); (v) net income (before or after taxes, operating income or other income measures); (vi) cash (cash flow, cash generation or other cash measures); (vii) share price or performance; (viii) total shareholder return (share price appreciation plus reinvested dividends divided by beginning share price); (ix) economic value added; (x) return measures (including, but not limited to, return on assets, capital, equity, investments or sales, and cash flow return on assets, capital, equity, or sales); (xi) market share; (xii) improvements in capital structure; (xiii) expenses (expense management, expense ratio, expense efficiency ratios or other expense measures); (xiv) business expansion or consolidation (acquisitions and divestitures); (xv) internal rate of return or increase in net present value; (xvi) working capital targets relating to inventory and/or accounts receivable; (xvii) inventory management; (xviii) service or product delivery or quality; (xix) employee retention; (xx) safety standards; (xxi) productivity measures; (xxii) cost reduction measures; and/or (xxiii) strategic plan development and implementation.

&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) At the discretion of the Committee, the settlement of Performance Share Units or Performance Shares may be in cash, Shares of equivalent value, or in some combination thereof, as set forth in the Award 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) If a Grantee is promoted, demoted or transferred to a different business unit of the Company during a Performance Period, then, to the extent the Committee determines that the Award, the performance goals, or the Performance Period are no longer appropriate, the Committee may adjust, change, eliminate or cancel the Award, the performance goals, or the applicable Performance Period, as it deems appropriate in order to make them appropriate and comparable to the initial Award, the performance goals, or the Performance 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;(e) At the discretion of the Committee, a Grantee may be entitled to receive any dividends or Dividend Equivalents declared with respect to Shares issuable in connection with vested Performance Shares which have been earned, but not yet issued to the Grantee.

**Article 10.<br> Deferred Shares and Restricted Share Units**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Grant of Deferred Shares and Restricted Share Units</u>. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant Deferred Shares and/or Restricted Share Units to any Eligible Person, in such amount and upon such terms as the Committee shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Vesting and Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Deferred Shares</u>. Delivery of Shares subject to a Deferred Shares grant will occur upon expiration of the deferral period or upon the occurrence of one or more of the distribution events described in Section 409A(a)(2) of the Code as specified by the Committee in the Grantee's Award Agreement for the Award of Deferred Shares. An Award of Deferred Shares may be subject to such substantial risk of forfeiture conditions as the Committee may impose, which conditions may lapse at such times or upon the achievement of such objectives as the Committee shall determine at the time of grant or thereafter. Unless otherwise determined by the Committee, to the extent that the Grantee has a Termination of Affiliation while the Deferred Shares remains subject to a substantial risk of forfeiture, such Deferred Shares shall be forfeited, unless the Committee determines that such substantial risk of forfeiture shall lapse in the event of the Grantee's Termination of Affiliation due to death, Disability, or involuntary termination by the Company or a Subsidiary 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;(b) <u>Restricted Share Units</u>. Delivery of Shares subject to a grant of Restricted Share Units will occur upon the expiration of the period during which the Restricted Share Units are subject to a substantial risk of forfeiture. Unless otherwise determined by the Committee, to the extent that the Grantee has a Termination of Affiliation while the Restricted Share Units remains subject to a substantial risk of forfeiture, such Restricted Share Units shall be forfeited, unless the Committee determines that such substantial risk of forfeiture shall lapse in the event of the Grantee's Termination of Affiliation due to death, Disability, or involuntary termination by the Company or a Subsidiary without "cause."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Voting and Dividend Equivalent Rights Attributable to Deferred Shares and Restricted Share Units</u>. A Grantee awarded Deferred Shares or Restricted Share Units will have no voting rights with respect to such Deferred Shares or Restricted Share Units prior to the delivery of Shares in settlement of such Deferred Shares and/or Restricted Share Units. Unless otherwise determined by the Committee, a Grantee will have the rights to receive Dividend Equivalents in respect of Deferred Shares and/or Restricted Share Units, which Dividend Equivalents shall be deemed reinvested in additional Shares of Deferred Shares or Restricted Share Units, as applicable, which shall remain subject to the same forfeiture conditions applicable to the Deferred Shares or Restricted Share Units to which such Dividend Equivalents relate.

**Article 11.<br> Dividend Equivalents**

The Committee is authorized to grant Awards of Dividend Equivalents alone or in conjunction with other Awards. The Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or additional Awards or otherwise reinvested subject to distribution at the same time and subject to the same conditions as the Award to which it relates; provided, however, that any Dividend Equivalents granted in conjunction with any Award that is subject to forfeiture conditions shall remain subject to the same forfeiture conditions applicable to the Award to which such Dividend Equivalents relate and any payments in respect of any Dividend Equivalents granted in conjunction with any Options or SARs may not be conditioned, directly or indirectly, on the Grantee's exercise of the Options or SARs or paid at the same time that the Options or SARs are exercised.

**Article 12.<br> Bonus Shares**

Subject to the terms of the Plan, the Committee may grant Bonus Shares to any Eligible Person, in such amount and upon such terms and at any time and from time to time as shall be determined by the Committee.

**Article 13.<br> Other Share-Based Awards**

The Committee is authorized, subject to limitations under Applicable Law, to grant such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including Shares awarded which are not subject to any restrictions or conditions, convertible or exchangeable debt securities or other rights convertible or exchangeable into Shares, and Awards valued by reference to the value of securities of or the performance of specified Subsidiaries. Subject to and consistent with the provisions of the Plan, the Committee shall determine the terms and conditions of such Awards. Except as provided by the Committee, Shares issued pursuant to a purchase right granted under this Article 13 shall be purchased for such consideration, paid for by such methods and in such forms, including cash, Shares, outstanding Awards or other property, as the Committee shall determine.

**Article 14.<br> Non-Employee Director Awards**

Subject to the terms of the Plan, the Board may grant Awards to any Non-Employee Director, in such amount and upon such terms and at any time and from time to time as shall be determined by the full Board in its sole discretion. Except as otherwise provided in Section 5.6(b), a Non-Employee Director may not be granted Awards with respect to Shares that have a Fair Market Value (determined as of the date of grant) in excess of US$[Ÿ] in a single calendar year.

**Article 15.<br> Amendment, Modification, and Termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 <u>Amendment, Modification, and Termination</u>. Subject to Section 15.2, the Board may, at any time and from time to time, alter, amend, suspend, discontinue or terminate the Plan in whole or in part without the approval of the Company's shareholders, except that (a) any amendment or alteration shall be subject to the approval of the Company's shareholders if such shareholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted, and (b) the Board may otherwise, in its discretion, determine to submit other such amendments or alterations to shareholders for approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 <u>Awards Previously Granted</u>. Except as otherwise specifically permitted in the Plan or an Award Agreement, no termination, amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Grantee of such Award.

**Article 16.<br> Compliance with Code Section 409A**

The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, the requirements of Section 409A of the Code. The Plan and all Awards granted under this Plan shall be administered, interpreted, and construed in a manner consistent with Section 409A of the Code to the extent necessary to avoid the imposition of additional taxes under Section 409A(a)(1)(B) of the Code. To the extent that the Committee determines that any Award is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of the Code and U.S. Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of the Plan or any Award Agreement to the contrary, if the Committee determines that any Award may be subject to Section 409A of the Code, the Committee may adopt such amendments to the Plan and each applicable Award Agreement as the Committee determines necessary or appropriate to (a) exempt the Award from Section 409A of the Code, or (b) comply with the requirements of Section 409A of the Code and related U.S. Department of Treasury guidance.

**Article 17.<br> Withholding**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 <u>Required Withholding</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 in its sole discretion may provide that when taxes under any Applicable Law are to be withheld in connection with the exercise of an Option or SAR, or upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, or upon payment of any other benefit or right under this Plan (the date on which such exercise occurs or such restrictions lapse or such payment of any other benefit or right occurs hereinafter referred to as the "Tax Date"), the Grantee may elect to make payment for the withholding of taxes under Applicable Law, including without limitation United States federal, state and local taxes, including Social Security and Medicare ("FICA") taxes, by one or a combination of the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) payment of an amount in cash equal to the amount to be withheld (including cash obtained through the sale of the Shares acquired on exercise of an Option or SAR, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, through a broker-dealer to whom the Grantee has submitted an irrevocable instructions to deliver promptly to the Company, the amount to be withheld);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) delivering part or all of the amount to be withheld in the form of Shares valued at its Fair Market Value on the Tax 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;(iii) requesting the Company to withhold from those Shares that would otherwise be received upon exercise of the Option or SAR, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, a number of Shares having a Fair Market Value on the Tax Date equal to the amount to be withheld; 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;(iv) withholding from any compensation otherwise due to the Grantee.

The Committee shall provide that the amount of tax withholding upon exercise of an Option or SARs, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, to be satisfied by withholding Shares upon exercise of such Option or SAR, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, pursuant to clause (iii) above shall not exceed the maximum amount of taxes, including FICA taxes, required to be withheld under federal, state and local law. An election by Grantee under this subsection is irrevocable. Any fractional share amount and any additional withholding not paid by the withholding or surrender of Shares must be paid in cash. If no timely election is made, the Grantee must deliver cash to satisfy all tax withholding requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Grantee who makes a Disqualifying Disposition (as defined in Section 6.4(f)) or an election under Section 83(b) of the Code shall remit to the Company an amount sufficient to satisfy all resulting tax withholding requirements in the same manner as set forth in subsection (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.2 <u>Notification under Code Section 83(b)</u>**. If the Grantee, in connection with the exercise of any Option, or the grant of Restricted Shares, makes the election permitted under Section 83(b) of the Code to include in such Grantee's gross income in the year of transfer the amounts specified in Section 83(b) of the Code, then such Grantee shall notify the Company of such election within 10 days of filing the notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code. The Committee may, in connection with the grant of an Award or at any time thereafter, prohibit a Grantee from making the election described above.

**Article 18.<br> Additional Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 <u>Successors</u>. Subject to Section 4.2(b), all obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise of all or substantially all of the business and/or assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 <u>Severability</u>. If any part of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 <u>Requirements of Law</u>. The granting of Awards and the delivery of Shares under the Plan shall be subject to all Applicable Law, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision of the Plan or any Award, Grantees shall not be entitled to exercise, or receive benefits under, any Award, and the Company (and any Subsidiary) shall not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would constitute a violation by the Grantee or the Company of any Applicable Law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 <u>Securities Law Compliance</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 the Committee deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon which Shares may be listed, the Committee may impose any restriction on Awards or Shares acquired pursuant to Awards under the Plan as it may deem advisable. In addition, if requested by the Company and any underwriter engaged by the Company, Shares acquired pursuant to Awards may not be sold or otherwise transferred or disposed of for such period following the effective date of any registration statement of the Company filed under the Securities Act as the Company or such underwriter shall specify reasonably and in good faith, not to exceed 180 days in the case of the Company's initial public offering or 90 days in the case of any other public offering. All certificates (if any) for Shares issued under the Plan pursuant to any Award or the exercise thereof 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 SEC, any stock exchange upon which Shares are then listed, any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates (if any) to make appropriate reference to such restrictions. If so requested by the Company, the Grantee shall make a written representation to the Company that he or she will not sell or offer to sell any Shares unless a registration statement shall be in effect with respect to such Shares under the Securities Act of 1933, as amended, and any applicable state securities law or unless he or she shall have furnished to the Company, in form and substance satisfactory to the Company, that such registration is not 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;(b) If the Committee determines that the exercise or non-forfeitability of, or delivery of benefits pursuant to, any Award would violate any applicable provision of securities laws or the listing requirements of any national securities exchange or national market system on which are listed any of the Company's equity securities, then the Committee may postpone any such exercise, non-forfeitability or delivery, as applicable, but the Company shall use all reasonable efforts to cause such exercise, non-forfeitability or delivery to comply with all such provisions at the earliest practicable date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 <u>Forfeiture Events</u>. Notwithstanding any provisions herein to the contrary, the Committee shall have the authority to provide in any Award Agreement that a Grantee's (including his or her estate's, beneficiary's or transferee's) rights (including the right to exercise any Option or SAR), payments and benefits with respect to any Award shall be subject to reduction, cancellation, forfeiture or recoupment (to the extent permitted by Applicable Law) in the event of the Participant's termination for Cause; serious misconduct; violation of the Company's or a Subsidiary's policies; breach of fiduciary duty; unauthorized disclosure of any trade secret or confidential information of the Company or a Subsidiary; breach of applicable non-competition, non-solicitation, confidentiality or other restrictive covenants; or other conduct or activity that is in competition with the business of the Company or a Subsidiary, or otherwise detrimental to the business, reputation or interests of the Company and/or a Subsidiary; or upon the occurrence of certain events specified in the applicable Award Agreement (in any such case, whether or not the Grantee is then an Employee or Non-Employee Director). The determination of whether a Grantee's conduct, activities or circumstances are described in the immediately preceding sentence shall be made by the Committee in its discretion, and pending any such determination, the Committee shall have the authority to suspend the exercise, payment, delivery or settlement of all or any portion of such Grantee's outstanding Awards pending any investigation of the matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6 <u>No Rights as a Shareholder</u>. No Grantee shall have any rights as a shareholder of the Company with respect to the Shares (other than Restricted Shares) which may be deliverable upon exercise or payment of such Award until such Shares have been delivered to him or her. Restricted Shares, whether held by a Grantee or in escrow by the Company, shall confer on the Grantee all rights of a shareholder of the Company, except as otherwise provided in the Plan or Award Agreement. At the time of a grant of Restricted Shares, the Committee may require the payment of cash dividends thereon to be deferred and, if the Committee so determines, reinvested in additional Restricted Shares. Share dividends and deferred cash dividends issued with respect to Restricted Shares shall be subject to the same restrictions and other terms as apply to the Restricted Shares with respect to which such dividends are issued. The Committee may in its discretion provide for payment of interest on deferred cash dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7 <u>Nature of Payments</u>. Unless otherwise specified in the Award Agreement, Awards shall be special incentive payments to the Grantee and shall not be taken into account in computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death or other benefit under (a) any pension, retirement, profit sharing, bonus, insurance or other employee benefit plan of the Company or any Subsidiary, except as such plan shall otherwise expressly provide, or (b) any agreement between (i) the Company or any Subsidiary and (ii) the Grantee, except as such agreement shall otherwise expressly provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8 <u>Non-Exclusivity of Plan</u>. Neither the adoption of the Plan by the Board nor its submission to the shareholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other compensatory arrangements for employees or Non-Employee Directors as it may deem desirable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9 <u>Governing Law</u>. The Plan is governed by and construed in accordance with, the laws of the Cayman Islands. The courts of the Cayman Islands and the courts of appeal from them shall have non-exclusive jurisdiction to determine any disputes which may arise out of or in connection with this Plan, accordingly, any legal action or proceedings arising out of or in connection with this Plan may be brought in those courts, but without prejudice to the right of the Company or any Grantee to bring proceedings in any other appropriate jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.10 <u>Unfunded Status of Awards; Creation of Trusts</u>. The Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give any such Grantee any rights that are greater than those of a general creditor of the Company; provided, however, that the Committee may authorize the creation of trusts or make other arrangements to meet the Company's obligations under the Plan to deliver cash, Shares or other property pursuant to any Award which trusts or other arrangements shall be consistent with the "unfunded" status of the Plan unless the Committee otherwise determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.11 <u>Affiliation</u>. Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate any Grantee's employment or consulting contract at any time, nor confer upon any Grantee the right to continue in the employ of or as an officer of or as a consultant to or Non-Employee Director of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.12 <u>Participation</u>. No employee or officer shall have the right to be selected to receive an Award under this Plan or, having been so selected, to be selected to receive a future Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.13 <u>Construction</u>. The following rules of construction will apply to the Plan: (a) the word "or" is disjunctive but not necessarily exclusive, (b) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding or succeeding such term and shall be deemed in each case to be followed by the words "without limitation", and (c) words in the singular include the plural, words in the plural include the singular, and words in the neuter gender include the masculine and feminine genders and words in the masculine or feminine gender include the other neuter genders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.14 <u>Headings</u>. The headings of articles and sections are included solely for convenience of reference, and if there is any conflict between such headings and the text of this Plan, the text shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.15 <u>Obligations</u>. Unless otherwise specified in the Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property pursuant to Awards under this Plan shall be the sole obligation of a Grantee's employer; provided that the obligation to deliver or transfer any Shares pursuant to Awards under this Plan shall be the sole obligation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.16 <u>No Right to Continue as Director</u>. Nothing in the Plan or any Award Agreement shall confer upon any Non-Employee Director the right to continue to serve as a director of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.17 <u>Shareholder Approval</u>. All Incentive Share Options granted on or after the Effective Date and prior to the date the Company's shareholders approve the Plan are expressly conditioned upon and subject to approval of the Plan by the Company's shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.18 <u>Forfeiture of Shares</u>. Any forfeiture of Shares described in this Plan will take effect as a surrender for no consideration of such Shares as a matter of Cayman Islands law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.19 <u>Share Issuances</u>. The allotment and issuance of Shares pursuant to the terms of this Plan following the exercise of an Option shall be subject to the Amended and Restated Memorandum and Articles of Association of the Company. Shares shall not in fact be allotted and issued (or repurchased or forfeited) until the time at which the Grantee's name (and number of Shares to be allotted and issued) is entered on the Company's Register of Members (or the existing entry is updated to reflect the repurchase or forfeiture) (the register being prima facie evidence of legal title to Shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.20 <u>No Dividends on Unvested Awards</u>. Notwithstanding anything in this Plan to the contrary, in no event shall the Board or the Committee approve the payment of any dividend by the Company on unvested Awards.

\# \# \#

## Exhibit 10.2

**<u>Exhibit 10.2</u>**

FORM OF

TRANSITION SERVICES AGREEMENT<br>BETWEEN<br>BIT DIGITAL, INC.,<br>AND<br>WHITEFIBER, INC.<br>Dated _____, 2025

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE I | DEFINITIONS | 1 |
| Section 1.1 | Definitions | 1 |
| ARTICLE II | PERFORMANCE AND SERVICES | 5 |
| Section 2.1 | General | 5 |
| Section 2.2 | Additional Services | 5 |
| Section 2.3 | Service Requests | 6 |
| Section 2.4 | Access | 6 |
| Section 2.5 | Local Agreements | 7 |
| Section 2.6 | System Shutdown | 7 |
| ARTICLE III | SERVICE QUALITY; INDEPENDENT CONTRACTOR | 7 |
| Section 3.1 | Service Quality | 7 |
| Section 3.2 | Independent Contractor; Assets; Subcontractors | 8 |
| Section 3.3 | Uses of Services | 9 |
| Section 3.4 | Modification of Services. | 9 |
| Section 3.5 | Transition of Responsibilities | 9 |
| Section 3.6 | Substantive Business Decisions Prohibited | 9 |
| Section 3.7 | Disclaimer of Warranties | 9 |
| ARTICLE IV | FEES; PAYMENT | 10 |
| Section 4.1 | Fees | 10 |
| Section 4.2 | Taxes | 10 |
| Section 4.3 | Invoices and Payment | 10 |
| Section 4.4 | Payment Disputes | 10 |
| ARTICLE V | CONFIDENTIALITY; SECURITY. | 11 |
| Section 5.1 | Bit Digital and WhiteFiber Obligations | 11 |
| Section 5.2 | No Release; Return or Destruction | 11 |
| Section 5.3 | Protective Arrangements | 12 |
| Section 5.4 | Security | 12 |
| ARTICLE VI | TERMINATION | 13 |
| Section 6.1 | Term | 13 |
| Section 6.2 | Partial Termination | 14 |
| Section 6.3 | Termination of Entire Agreement | 14 |
| Section 6.4 | Procedures on Termination | 15 |
| Section 6.5 | Effect of Termination | 15 |
| Section 6.6 | Exit | 15 |
| Section 6.7 | Responsibility for Salary and Other Benefits on Exit | 15 |
| Section 6.8 | Indemnities on Exit | 15 |
| Section 6.9 | Procedure and Indemnity for Claims by Non-Transferring Employees | 16 |

---

i

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| | | |
|:---|:---|:---|
| ARTICLE VII | INDEMNIFICATION AND DISPUTE RESOLUTION | 16.0 |
| Section 7.1 | Limitation of Liability | 16.0 |
| Section 7.2 | Indemnification by WhiteFiber | 17.0 |
| Section 7.3 | Indemnification by Bit Digital | 17.0 |
| Section 7.4 | Exclusive Remedy | 18.0 |
| Section 7.5 | Risk Allocation | 18.0 |
| Section 7.6 | Indemnification Procedures | 18.0 |
| Section 7.7 | Project Managers | 19.0 |
| Section 7.8 | Mediation | 19.0 |
| ARTICLE VIII | MISCELLANEOUS | 19.0 |
| Section 8.1 | Amendments and Waivers | 19.0 |
| Section 8.2 | Notices | 20.0 |
| Section 8.3 | Entire Agreement | 20.0 |
| Section 8.4 | No Third-Party Beneficiaries | 20.0 |
| Section 8.5 | Governing Law | 21.0 |
| Section 8.6 | Assignability | 21.0 |
| Section 8.7 | Severability | 21.0 |
| Section 8.8 | Counterparts | 21.0 |
| Section 8.9 | Rules of Construction | 21.0 |
| Section 8.10 | Specific Performance | 22.0 |
| Section 8.11 | Precedence of Schedules | 22.0 |
| Section 8.12 | Force Majeure | 22.0 |

---

ii

TRANSITION SERVICES AGREEMENT

THIS TRANSITION SERVICES AGREEMENT dated _____, 2025 (this "<u>Agreement</u>"), is between Bit Digital, Inc., a Cayman Islands exempted company ("<u>Bit Digital</u>") and WhiteFiber Inc., a Cayman Islands exempted company and its subsidiaries. Bit Digital and WhiteFiber are sometimes referred to herein individually as a "<u>Party</u>", and collectively as the "<u>Parties</u>".

RECITALS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A. Bit Digital and WhiteFiber are parties to that certain Section 351 Contribution Agreement dated as of even date herewith (the "<u>Contribution Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Pursuant to the Contribution Agreement, Bit Digital agreed to transfer to WhiteFiber its subsidiary WhiteFiber AI, Inc. and its subsidiaries, WhiteFiber HPC, Inc. a Delaware company and WhiteFiber ehf, an Icelandic company (collectively, the "HPC Services Business Segment") for WhiteFiber to acquire the HPC Services Business Segment, which will include WhiteFiber's existing subsidiary, Enovum Data Centers Corp. ("Enovum"). Accordingly, (1) WhiteFiber will own and conduct, directly and indirectly, the HPC Services Business Segment and (2) Bit Digital will continue to own and conduct, directly and indirectly, its Digital Assets Business (the "Reorganization").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C. In connection with the transactions contemplated by the Reorganization and in order to ensure a smooth transition following the Reorganization, each Party desires that the other Party provide, or cause its Affiliates or contractors to provide, the Services specified pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D. It is the intent of the Parties that, except as otherwise provided in this Agreement, the Services be provided at cost, and therefore, the Fees set forth on <u>Annex A</u> or <u>Annex B</u> were calculated to reflect costs only.

In consideration of the forgoing and the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I<br> DEFINITIONS

Section 1.1 <u>Definitions</u>. Unless otherwise defined herein, each capitalized term will have the meaning specified for such term in the Separation Agreement. As used in this Agreement:

"<u>Additional Bit Digital Service</u>" has the meaning set forth in <u>Section 2.2(a)</u>.

"<u>Additional WhiteFiber Service</u>" has the meaning set forth in <u>Section 2.2(b)</u>.

"<u>Affiliate</u>" means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such other Person as of the date on which, or at any time during the period for which, the determination of affiliation is being made. For purposes of this definition, the term "control" (including, with correlative meanings, the terms "controlled by" and "under common control with"), as used with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by Contract or otherwise. For the avoidance of doubt, (a) Affiliates of Bit Digital will include subsidiaries of the HPC Services Business Segment Group prior to the Reorganization, and (b) Affiliates of HPC Services Business Segment will include the HPC Services Business Segment after the Reorganization.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Availed Party</u>" has the meaning set forth in <u>Section 5.4(a)</u>.

"<u>Bit Digital</u>" has the meaning set forth in the Preamble.

"<u>Bit Digital Group</u>" means Bit Digital and each Person that is a Subsidiary of Bit Digital (other than WhiteFiber and any of its Subsidiaries).

"<u>Bit Digital Indemnified Parties</u>" has the meaning set forth in <u>Section 7.2</u>.

"<u>Bit Digital Services</u>" means the Services generally described on <u>Annex A</u> and any other Service provided by Bit Digital or any member of the Bit Digital Group pursuant to this Agreement.

"<u>Business</u>" means the HPC Services Business Segment or the Digital Assets Business, as the case may be.

"<u>Commercially Reasonable Efforts</u>" means, with respect to the efforts to be expended by a Party with respect to any objective under this Agreement, reasonable, diligent good faith efforts to accomplish such objective as such Party would normally use to accomplish a similar objective as expeditiously as reasonably possible under similar circumstances exercising reasonable business judgment, it being understood and agreed that such efforts will include the exertion of efforts and utilization of resources that would be used by such Party in support of one of its own wholly owned businesses. "Commercially Reasonable Efforts" will not require a Party (a) to make payments to unaffiliated Third Parties (except as set forth in this Agreement), to incur non-de minimis Liabilities to unaffiliated Third Parties or to grant any non-de minimis concessions or accommodations unless the other Party agrees to reimburse and make whole such Party to its reasonable satisfaction for such Liabilities, concessions or accommodations requested to be made by the other Party (such reimbursement and make whole to be made promptly after the determination thereof following the Distribution or, with respect to items incurred after the Distribution, promptly thereafter), (b) to violate any Law, or (c) to initiate any litigation or arbitration.

"<u>Confidential Information</u>" shall mean all Information that is either confidential or proprietary.

"<u>Digital Assets Business</u>" means the businesses of the Bit Digital Group following the Reorganization.

"<u>Eligible Services</u>" has the meaning set forth in <u>Section 6.2(a)</u>.

"<u>Extendable Service</u>" has the meaning set forth in <u>Section 6.1(b)</u>.

"<u>Fees</u>" means the fees for a particular Service as set forth on <u>Annex A</u> or <u>Annex B</u>, as the case may be.

"<u>Force Majeure</u>" shall mean, with respect to a Party, an event beyond the reasonable control of such Party (or any Person acting on its behalf), which event (a) does not arise or result from the fault or negligence of such Party (or any Person acting on its behalf) and (b) by its nature would not reasonably have been foreseen by such Party (or such Person), or, if it would reasonably have been foreseen, was unavoidable, and includes acts of God, acts of civil or military authority, acts of terrorism, cyberattacks, embargoes, epidemics, pandemics (including COVID-19 and Pandemic Measures), war, riots, insurrections, fires, explosions, earthquakes, floods, unusually severe weather conditions, labor problems, or unavailability of parts, or, in the case of computer systems, any significant and prolonged failure in electrical or air conditioning equipment.

"<u>Governmental Authority</u>" means any federal, state, local, provincial, foreign or international court, tribunal, judicial or arbitral body, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority or any national securities exchange.

"<u>HPC Services Business Segment</u>" has the meaning set forth in the Recitals.

"<u>Information</u>" means information in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, forecasts, budgets, reports, records, books, Contracts, instruments, surveys, discoveries, ideas, concepts, know-how, recipes, techniques, designs, specifications, processes, procedures, policies, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs, or other Software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos, manuals and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee or business information or data, but in any case excluding back-up tapes.

"<u>Invoice</u>" has the meaning set forth in <u>Section 4.3(a)</u>.

"<u>Law</u>" means any statute, law, ordinance, regulation, rule, code, or other requirement of, or order or governmental permit issued by, a Governmental Authority.

"<u>Level of Service</u>" has the meaning set forth in <u>Section 3.1(a)</u>.

"<u>Liabilities</u>" has the meaning set forth in the Separation Agreement.

"<u>Local Agreement</u>" has the meaning set forth in <u>Section 2.5</u>.

"<u>Notification</u>" has the meaning set forth in <u>Section 6.9(i)</u>.

"<u>Objection Notice</u>" has the meaning set forth in <u>Section 4.4</u>.

"<u>Pandemic Measures</u>" shall mean any quarantine, "shelter in place," "stay at home," workforce reduction, social distancing, shut down, closure, sequester, immunization requirements, safety or similar Law, directive, guidelines or recommendations promulgated by any Governmental Authority, including the Centers for Disease Control and Prevention and the World Health Organization, in each case, in connection with or in response to a pandemic, including COVID-19.

"<u>Partial Termination</u>" has the meaning set forth in <u>Section 6.2(a)</u>.

"<u>Party</u>" has the meaning set forth in the Preamble.

"<u>Payment Due Date</u>" has the meaning set forth in <u>Section 4.3(b)</u>.

"<u>Person</u>" means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or other entity or organization or a Governmental Authority.

"<u>Project Managers</u>" has the meaning set forth in <u>Section 7.7</u>.

"<u>Safety and Security Policies</u>" has the meaning set forth in <u>Section 5.4(a)</u>.

"<u>Service Provider</u>" means (a) in the case of Bit Digital, or any of its Subsidiaries providing a Service hereunder and, or (b) in the case of WhiteFiber or any of its Subsidiaries providing a Service hereunder.

"<u>Service Recipient</u>" means (a) in the case of Bit Digital, or any of its Subsidiaries receiving a Service hereunder and, or (b) in the case of WhiteFiber, or any of its Subsidiaries receiving a Service hereunder.

"<u>Service Term</u>" means the term for a particular Service as set forth on <u>Annex</u> A or <u>Annex B</u>.

"<u>Services</u>" means the Bit Digital Services or the WhiteFiber Services, individually, or the Bit Digital Services and the WhiteFiber Services, collectively, as the context may indicate.

"<u>Subsidiary</u>" has the meaning set forth in the Separation Agreement.

"<u>Systems</u>" has the meaning set forth in <u>Section 5.4(a)</u>.

"<u>Term</u>" has the meaning set forth in <u>Section 6.1(a)</u>.

"<u>Third Party</u>" shall mean any Person other than the Parties or any of their respective Affiliates.

"<u>Transferring Employees</u>" means those employees or former employees of the Service Provider wholly or mainly assigned to the provision of a particular Service immediately before the Termination Date.

"<u>Transfer Regulations</u>" means any legislation in any jurisdiction where the Services are provided (as amended or replaced from time to time).

"<u>Termination Date</u>" means the date on which the Service Provider ceases to provide a particular Service for the Service Recipient

"<u>WhiteFiber</u>" has the meaning set forth in the Preamble.

"<u>WhiteFiber Indemnified Parties</u>" has the meaning set forth in Section 7.3 of this Agreement.

"<u>WhiteFiber Services</u>" means the Services generally described on <u>Annex B</u> and any other Service provided by WhiteFiber pursuant to this Agreement.

ARTICLE II<br> PERFORMANCE AND SERVICES

Section 2.1 <u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Term, and subject to the terms and conditions of this Agreement, Bit Digital will provide, or cause to be provided, the Bit Digital Services to WhiteFiber and its Subsidiaries. The applicable Fee for each Bit Digital Service will be the specified Fee for such Service set forth on <u>Annex A</u>, and the applicable Service Term for each Bit Digital Service will be the specified Service Term for such Bit Digital Service set forth on <u>Annex A</u>. Notwithstanding anything to the contrary contained herein or on any Annex, Bit Digital will have no obligation under this Agreement to: (i) operate the HPC Services Business Segment or any portion thereof (it being acknowledged and agreed by Bit Digital and WhiteFiber that providing the Bit Digital Services will not be deemed to be operating the HPC Business Services Segment or any portion thereof); (ii) advance funds or extend credit to WhiteFiber; (iii) hire new employees for the purpose of providing the Bit Digital Services; (iv) provide Bit Digital Services to any Person other than WhiteFiber or any of its Subsidiaries; or (v) implement, develop or acquire systems, processes, technologies, plans or initiatives not already implemented or utilized by Bit Digital or members of the Bit Digital Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Term, and subject to the terms and conditions of this Agreement, WhiteFiber will provide, or cause to be provided, the WhiteFiber Services to Bit Digital and its Subsidiaries. The applicable Fee for each WhiteFiber Service will be the specified Fee for such WhiteFiber Service set forth on <u>Annex B</u>, and the applicable Service Term for each WhiteFiber Service will be the specified Service Term for such WhiteFiber Service set forth on <u>Annex B</u>. Notwithstanding anything to the contrary contained herein or on any Annex, WhiteFiber will have no obligation under this Agreement to: (i) operate the Digital Assets Business or any portion thereof (it being acknowledged and agreed by Bit Digital and WhiteFiber that providing the WhiteFiber Services will not be deemed to be operating the Digital Assets Business or any portion thereof); (ii) advance funds or extend credit to Bit Digital; (iii) hire new employees for the purpose of providing the WhiteFiber Services; (iv) provide WhiteFiber Services to any Person other than Bit Digital or any of its Subsidiaries; or (v) implement, develop or acquire systems, processes, technologies, plans or initiatives not already implemented or utilized by WhiteFiber or members of the HPC Services Business Segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in this Agreement, neither Bit Digital nor WhiteFiber (nor any of their respective Subsidiaries) will be required to perform Services hereunder or take any actions relating thereto that conflict with or violate any applicable Law, contract, license, sublicense, authorization, certification, permit or would amount to Bit Digital or WhiteFiber performing a "relevant activity" under the International Tax Co-Operation (Economic Substance) Act (Revised) of the Cayman Islands.

Section 2.2 <u>Additional Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If WhiteFiber reasonably determines in good faith after the date hereof that additional transition services (not listed on <u>Annex A</u>) of the type previously provided by members of the Bit Digital Group to the HPC Services Business Segment are necessary to conduct the HPC Services Business Segment, and WhiteFiber or its Subsidiaries are not able to provide such services to the HPC Services Business Segment or such services are not commercially available from Third Party providers, then WhiteFiber may provide written notice thereof to Bit Digital. Upon receipt of such notice by Bit Digital, if Bit Digital is willing, in its sole discretion, to provide such additional service during the Term, the Parties will negotiate in good faith an amendment to <u>Annex A</u> setting forth the additional service (each such service an "<u>Additional Bit Digital Service</u>"), the terms and conditions for the provision of such Additional Bit Digital Service and the Fees to be payable by WhiteFiber for such Additional Bit Digital Service, such Fees to be determined on an arm's-length basis with the intent that they reflect costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Bit Digital reasonably determines in good faith after the date hereof that additional transition services (not listed on <u>Annex B</u>) of the type previously provided by WhiteFiber or any of its Subsidiaries to the Digital Assets Business are necessary to conduct the Digital Assets Business, and Bit Digital or members of the Bit Digital Group are not able to provide such services to the Digital Assets Business or such services are not commercially available from Third Party providers, then Bit Digital may provide written notice thereof to WhiteFiber. Upon receipt of such notice by WhiteFiber, if WhiteFiber is willing, in its sole discretion, to provide such additional service during the Term, the Parties will negotiate in good faith an amendment to <u>Annex B</u> setting forth the additional service (each such service an "<u>Additional WhiteFiber Service</u>"), the terms and conditions for the provision of such Additional WhiteFiber Service and the Fees to be payable by Bit Digital for such Additional WhiteFiber Service, such Fees to be determined on an arm's-length basis with the intent that they reflect costs.

Section 2.3 <u>Service Requests</u>. Any requests by a Party to the other Party regarding the Services or any modification or alteration to the provision of the Services must be made by a Project Manager (it being understood that the receiving Party will not be obligated to agree to any modification or alteration requested thereby). Notwithstanding anything to the contrary hereunder, each Party may avail itself of the remedies set forth in <u>Section 6.3</u> without fulfilling the notice requirements of this <u>Section 2.3</u>.

Section 2.4 <u>Access</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>ARTICLE V</u>, WhiteFiber, at the reasonable request of Bit Digital, will make available on a timely basis to Bit Digital all information reasonably requested by Bit Digital to enable it to provide the Bit Digital Services. WhiteFiber will give Bit Digital and its Affiliates, employees, agents, and representatives, as reasonably requested by Bit Digital, reasonable access, during regular business hours and at such other times as are reasonably required, to the systems, premises, equipment, facilities, and data of the HPC Services Business Segment for the purposes of providing the Bit Digital Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to <u>ARTICLE V</u>, Bit Digital, at the reasonable request of WhiteFiber, will make available on a timely basis to WhiteFiber all information reasonably requested by WhiteFiber to enable it to provide the WhiteFiber Services. Bit Digital will give WhiteFiber and its Affiliates, employees, agents, and representatives, as reasonably requested by WhiteFiber, reasonable access, during regular business hours and at such other times as are reasonably required, to the systems, premises, equipment, facilities, and data of the Digital Assets Business for the purposes of providing the WhiteFiber Services.

Section 2.5 <u>Local Agreements</u>. Each Party recognizes and agrees that it may be necessary or desirable to separately document certain matters relating to the Services provided hereunder in various jurisdictions from time to time or to otherwise modify the scope or nature of such Services, in each case to the extent necessary to comply with applicable Law. If such an agreement or modification of any of the Services is required by applicable Law, or if the applicable Parties mutually determine entry into such an agreement or modification of Services would be desirable, in each case in order for Service Provider or its Subsidiaries to provide any of the Services in a particular jurisdiction, Service Provider and Service Recipient shall, or shall cause their applicable Subsidiaries to, enter into local implementing agreements (as each may be amended and in effect from time to time, each a "<u>Local Agreement</u>") in form and content reasonably acceptable to the applicable Parties; <u>provided</u> that the execution or performance of any such Local Agreement shall in no way alter or modify any term or condition of this Agreement or the effect of any such term or condition, except to the extent expressly specified in such Local Agreement. Each Party agrees that any Local Agreement shall be subject to <u>Section 5.3</u> of this Agreement. Except as used in this <u>Section 2.5</u>, any references herein to this Agreement and the Services to be provided hereunder, shall include any Local Agreement and any local services to be provided thereunder. Except as expressly set forth in any Local Agreement, in the event of a conflict between the terms contained in a Local Agreement and the terms contained in this Agreement (including the applicable Schedules), the terms in this Agreement shall take precedence.

Section 2.6 <u>System Shutdown</u>. Service Provider shall have the right to shut down temporarily for maintenance or similar purposes the operation of any facilities or systems providing any Service whenever in Service Provider's reasonable judgment such action is necessary or advisable for general maintenance or emergency purposes; <u>provided</u> that without limiting the immediately following sentence, Service Provider will schedule non-emergency general maintenance impacting the Services so as not to materially disrupt the operation of the HPC Services Business Segment or the Digital Assets Business, as applicable, by Service Recipient. To the extent possible, such shutdowns shall occur during non-business hours. Service Provider will use Commercially Reasonable Efforts to provide Service Recipient advance notice of any shut down for general maintenance purposes or other planned shutdown.

ARTICLE III<br> SERVICE QUALITY; INDEPENDENT CONTRACTOR

Section 3.1 <u>Service Quality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise provided with respect to a specific Service on the Applicable Annex, the Service Provider will perform the Services in a manner and quality that is substantially consistent with the manner (including as to quantity) and quality that such Services were performed by such Party (or its applicable Affiliate) in the twelve (12) months prior to the Reorganization for the Digital Assets Business or the HPC Services Business Segment, as applicable, and in any event in compliance with any terms or service levels set forth on the applicable Annex (collectively referred to as the "<u>Level of Service</u>"). The Service Recipient will use the Services in substantially the same manner and on substantially the same scale as they were used by such Party and its Affiliates in the past practice of the Digital Assets Business or the HPC Services Business Segment, as applicable, prior to the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party acknowledges and agrees that certain of the Services to be provided under this Agreement have been, and will continue to be, provided (in accordance with this Agreement and the Annexes hereto) to the Digital Assets Business or the WhiteFiber Business, as applicable, by Third Parties designated by the Service Provider. To the extent so provided, the Party responsible for providing such Services will use Commercially Reasonable Efforts to (i) cause such Third Parties to provide such Services under this Agreement and/or (ii) enable the Party seeking the benefit of such Services and its Subsidiaries to avail itself of such Services; <u>provided</u>, <u>however</u>, that if any such Third Party is unable or unwilling to provide any such Services, the Parties agree to use their Commercially Reasonable Efforts to determine the manner, if any, in which such Services can best be provided (it being acknowledged and agreed that any costs or expenses to be incurred in connection with obtaining a Third Party to provide any such Services will be paid by the Party to which such Services are provided; <u>provided</u> that the Service Provider will use Commercially Reasonable Efforts to communicate the costs or expenses expected to be incurred in advance of incurring such costs or expenses).

Section 3.2 <u>Independent Contractor; Assets; Subcontractors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Service Provider is an independent contractor. All employees and representatives of the Service Provider and any of its Subsidiaries involved in providing Services will be under the exclusive direction, control and supervision of the Service Provider or its Subsidiaries (or their subcontractors) providing such Services, and not of the Service Recipient. The Service Provider or its Subsidiaries (or their subcontractors) providing the Services will be solely responsible for compensation of its employees, and for all withholding, employment or payroll taxes, unemployment insurance, workers' compensation, and any other insurance and fringe benefits with respect to such employees. The Service Provider or its Subsidiaries (or their subcontractors) providing the Services will have the exclusive right to hire and fire any of its employees in accordance with applicable Law. The Service Recipient will have no right to direct and control any of the employees or representatives of the Party or its Subsidiaries (or their subcontractors) providing such Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All procedures, methods, systems, strategies, tools, equipment, facilities, software, data and other resources used by a Party, any of its Subsidiaries or any Third Party service provider in connection with the provision of the Services hereunder will remain the property of such Party, its Subsidiaries or such service providers and, except as otherwise provided herein, will at all times be under the sole direction and control of such Party, its Subsidiaries or such Third Party service provider. No license under any patents, know-how, trade secrets, copyrights, or other rights is granted by this Agreement or any disclosure in connection with this Agreement by either Party. Service Recipient shall not attempt to decompile, translate, reverse engineer, or make excessive copies of any intellectual property owned or licensed by Service Provider, and Service Recipient shall promptly notify Service Provider of any such attempt, regardless of whether by Service Recipient or any Third Party, of which Service Recipient becomes aware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Service Provider may hire or engage one or more subcontractors to perform any or all of its obligations under this Agreement; <u>provided</u> that (a) the Service Provider will use the same degree of care in selecting any such subcontractor as it would if such contractor was being retained to provide similar services to the Service Provider; and (b) the Service Provider will in all cases remain primarily responsible for all of its obligations hereunder with respect to the scope of the Services, the standard for services as set forth in <u>ARTICLE III</u> and the content of the Services provided to the Service Recipient. The Service Provider may replace a subcontractor providing Services under this Agreement, provided that the costs of the replacement subcontractor are not materially higher than the costs for such previous subcontractor. The Service Provider will provide notice to the Service Recipient prior to replacing or hiring new subcontractors whenever reasonably possible.

Section 3.3 <u>Uses of Services</u>. The Service Provider will be required to provide the Services only to the Service Recipient and the Service Recipient's Subsidiaries in connection with the Service Recipient's operation of the Business. The Service Recipient may not resell any Services to any Person whatsoever or permit the use of such Services by any Person other than in connection with the operation of the Business in the ordinary course of business.

Section 3.4 <u>Modification of Services</u>. The Parties agree that each Service Provider may make changes from time to time in the manner of performing the applicable Service if such Service Provider is making similar changes in performing similar services for itself, its Affiliates or other Third Parties, if any, <u>provided</u> that such Service Provider furnishes to the Service Recipient substantially the same notice (in content) as such Service Provider provides to its Affiliates or Third Parties, if any, respecting such changes; <u>provided</u> <u>further</u> that each Service Provider may make any of the following changes without obtaining the prior consent of, and without prior notice to, the Service Recipient: (a) changes to the process of performing a particular Service that do not adversely affect the benefits to the Service Recipient in any material respect or materially increase the charge for such Service; (b) emergency changes on a temporary and short-term basis; and (c) changes to a particular Service in order to comply with applicable Law.

Section 3.5 <u>Transition of Responsibilities</u>. Each Party agrees to use Commercially Reasonable Efforts to reduce or eliminate its and its Subsidiaries' dependence on each Service as soon as is reasonably practicable. Each Party agrees to cooperate with the other Party to facilitate the smooth transition of the Services being provided to the Service Recipient by the Service Provider.

Section 3.6 <u>Substantive Business Decisions Prohibited</u>. Notwithstanding anything to the contrary contained in this Agreement or the accompanying schedules, none of the Service Provider or its Subsidiaries, authorized agents, and subcontractors (if any) shall make any substantive business decisions with respect to Service Recipient in performing Services. Each provision of this Agreement and the schedules shall be interpreted in a manner consistent with this <u>Section 3.6</u>.

Section 3.7 <u>Disclaimer of Warranties</u>. Except as expressly set forth in this Agreement: (i) each Party acknowledges and agrees (on behalf of itself and any other Service Recipient) that Service Provider makes no warranties of any kind with respect to the Services to be provided hereunder; and (ii) Service Provider hereby expressly disclaims all warranties with respect to the Services to be provided hereunder, as further set forth immediately below.

EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES OR ACCESS TO SYSTEMS, FACILITIES AND DATA TO BE PROVIDED UNDER THIS AGREEMENT WILL BE PROVIDED AS-IS, WHERE-IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO ANY REPRESENTATION OR DESCRIPTION, TITLE OR ANY OTHER WARRANTY WHATSOEVER.

ARTICLE IV<br> FEES; PAYMENT

Section 4.1 <u>Fees</u>. The Service Recipient will pay the Service Provider the Fees for the Services provided by such Service Provider under this Agreement. The Fees for the Services are set forth on <u>Annex A</u> and <u>Annex B</u>. During the term of this Agreement, the amount of a Fee for any Service may be modified to the extent of (a) any adjustments mutually agreed to by the Parties, (b) any adjustments due to a change in Level of Service requested by Service Recipient and agreed upon by Service Provider, and (c) any adjustment in the rates or charges imposed by any Third Party provider that is providing Services; <u>provided</u> that Service Provider will notify Service Recipient in writing of any such change in rates at least thirty (30) days prior to the effective date of such rate change.

Section 4.2 <u>Taxes</u>. To the extent required or permitted by applicable Law, there will be added to any Fees due under this Agreement, and Service Recipient agrees to pay to the Service Provider, amounts equal to any Taxes paid or payable by the Service Provider, however designated or levied, based upon such Fees, or upon this Agreement or the Services provided under this Agreement, or their use. In the event Taxes are not added to an invoice from the Service Provider hereunder, the Service Recipient is responsible to remit to the appropriate jurisdiction any additional amounts due, including Taxes, interest, and penalties. The Parties will reasonably cooperate with each other to minimize any of these Taxes and to obtain and provide each other with reasonable documentation related to these Taxes. If additional amounts are determined to be due on the Services provided hereunder as a result of an audit by a tax jurisdiction, Service Recipient agrees to reimburse the Service Provider for the additional amounts due including Taxes, interest, and penalties. The Parties further agree that, notwithstanding the foregoing, neither Party will be required to pay any income, franchise, or employment Taxes of the other Party. All payments and reimbursements due under this <u>Section 4.2</u> will be calculated in a manner that ensures that the Service Provider receives the same net amounts under this Agreement that it would have received in the absence of Taxes.

Section 4.3 <u>Invoices and Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise specified in <u>Annex A</u> or <u>Annex B</u>, within thirty (30) days following the end of each fiscal month of Service Provider, the Service Provider will submit to the Service Recipient for payment a written statement of amounts due under this Agreement for such month (an "<u>Invoice</u>"). The Invoice will set forth the Fees and any Third Party costs or charges that are required to be reimbursed by Service Recipient in connection with the provision of any Services, in the aggregate and itemized, based on the descriptions set forth on <u>Annex A</u> or <u>Annex B</u>, as the case may be. Each statement will specify the nature of any amounts due for any Fees as set forth on <u>Annex A</u> or <u>Annex B</u> and will contain reasonably satisfactory documentation in support of such amounts as specified therein and such other supporting detail as the Service Recipient may reasonably require to validate such amounts due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise specified in <u>Annex A</u> or <u>Annex B</u>, the Service Recipient will pay all amounts due pursuant to an Invoice no later than sixty (60) days after the date of the Invoice (the "<u>Payment Due Date</u>"). All timely payments under this Agreement will be made without early payment discount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to <u>Section 4.4</u>, if the Service Recipient fails to pay the full amount of any invoice by the Payment Due Date, such failure will be considered a material default under this Agreement. The remedies provided to each Party by this <u>Section 4.3(c)</u> and by <u>Section 6.3</u> will be cumulative with respect to any other applicable provisions of this Agreement. Payments made after the Payment Due Date will bear interest at the rates set forth in <u>Annex A</u> or <u>Annex B</u> for the applicable Services.

Section 4.4 <u>Payment Disputes</u>. The Service Recipient may object to any amounts for any Service invoiced to it at any time before, at the time of, or after payment is made, provided such objection is made in writing ("<u>Objection Notice</u>") to the Service Provider prior to the Payment Due Date. Any dispute under this <u>Section 4.4</u> will be resolved in accordance with the provisions of <u>Section 7.8</u> of this Agreement. The Service Recipient will pay interest, which will begin to accrue beginning on the date that is sixty (60) days following receipt of the Service Recipient's Objection Notice, at an annual rate equal to the Prime Rate plus 2.0% (compounded monthly) on any amounts it is required to pay to the Service Provider upon resolution of the dispute if the dispute is resolved in the Service Provider's favor.

ARTICLE V<br> CONFIDENTIALITY; SECURITY

Section 5.1 <u>Bit Digital and WhiteFiber Obligations</u>. Subject to <u>Section 5.4</u>, until the six (6) year anniversary of the date of the termination of this Agreement in its entirety, each of Bit Digital and WhiteFiber, on behalf of itself and each of its Subsidiaries, agrees to hold, and to cause its respective Representatives to hold, in strict confidence, with at least the same degree of care that applies to Bit Digital's Confidential Information pursuant to policies in effect as of the Effective Time, all Confidential Information concerning the other Party or its Subsidiaries or their respective businesses that is either in its possession (including Confidential Information in its possession prior to the date hereof) or furnished by such other Party or such other Party's Subsidiaries or their respective Representatives at any time pursuant to this Agreement, and shall not use any such Confidential Information other than for such purposes as may be expressly permitted hereunder, <u>except</u>, in each case, to the extent that such Confidential Information (a) is in the public domain or is generally available to the public, other than as a result of a disclosure by such Party or any of its Subsidiaries or any of their respective Representatives in violation of this Agreement; (b) is lawfully acquired from other sources by such Party or any of its Subsidiaries, which sources are not themselves known by such Party or any of its Subsidiaries to be bound by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality with respect to such Confidential Information; (c) is independently developed or generated without reference to or use of the Confidential Information of the other Party or any of its Subsidiaries; or (d) was in such Party's or its Subsidiaries' possession on a non-confidential basis prior to the time of disclosure to such Party and at the time of such disclosure was not known by such Party or any of its Subsidiaries to be prohibited from being disclosed by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality with respect to such Confidential Information. If any Confidential Information of a Party or any of its Subsidiaries is disclosed to the other Party or any of its Subsidiaries in connection with providing the Services, then such disclosed Confidential Information shall be used only as required to perform such Services.

Section 5.2 <u>No Release; Return or Destruction</u>. Each Party agrees (a) not to release or disclose, or permit to be released or disclosed, any Confidential Information of the other Party addressed in <u>Section 5.1</u> to any other Person, except its Representatives who need to know such Confidential Information in their capacities as such (who shall be advised of their obligations hereunder with respect to such Confidential Information) and except in compliance with <u>Section 5.4</u>, and (b) to use Commercially Reasonable Efforts to maintain such Confidential Information. Without limiting the foregoing, when any such Confidential Information is no longer needed for the purposes contemplated by the Separation Agreement, this Agreement or any other Transaction Documents, each Party will promptly after request of the other Party either return to the other Party all such Confidential Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in writing that it has destroyed such information (and such copies thereof and such notes, extracts or summaries based thereon); <u>provided</u> that the Parties may retain electronic back-up versions of such Confidential Information maintained on routine computer system backup tapes, disks or other backup storage devices; and <u>provided</u>, <u>further</u>, that any such retained back-up information shall remain subject to the confidentiality provisions of this Agreement.

Section 5.3 <u>Protective Arrangements</u>. In the event that a Party or any of its Subsidiaries either determines on the advice of its counsel that it is required to disclose any information pursuant to applicable Law or receives any request or demand under lawful process or from any Governmental Authority to disclose or provide information of the other Party (or any of its Subsidiaries) that is subject to the confidentiality provisions hereof, such Party shall notify the other Party (to the extent legally permitted) as promptly as practicable under the circumstances prior to disclosing or providing such information and shall cooperate, at the expense of the other Party, in seeking any appropriate protective order requested by the other Party. In the event that such other Party fails to receive such appropriate protective order in a timely manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such information shall actually prejudice the Party receiving the request or demand, then the Party that received such request or demand may thereafter disclose or provide information to the extent required by such Law (as so advised by its counsel) or by lawful process or such Governmental Authority and will exercise reasonable efforts to obtain assurance that confidential treatment will be accorded to such Confidential Information, and the disclosing Party shall promptly provide the other Party with a copy of the information so disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such information was disclosed, in each case to the extent legally permitted. The obligations in this <u>ARTICLE V</u> shall survive any expiration or termination of this Agreement for six (6) years after the date of expiration or termination of this Agreement; <u>provided</u>, <u>however</u>, that, with respect to each trade secret of a Party or its Affiliates, such obligations shall continue as long as such trade secret remains otherwise protectable as a trade secret.

Section 5.4 <u>Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If either Party (including its Affiliates and their employees, authorized agents and subcontractors) is given access to the other Party's computer systems or software (collectively, "<u>Systems</u>"), premises, equipment, facilities, or data in connection with the Services, the Party given access (the "<u>Availed Party</u>") will each comply with (and will cause its Affiliates, and their employees, authorized agents and subcontractors to comply with) their respective policies and procedures in relation to the use and access of the other Party's Systems, premises, equipment, facilities or data (collectively, "<u>Safety and Security Policies</u>"), and will not compromise or circumvent any safety, security or audit measures employed by such other Party. The Availed Party will access and use only those Systems, premises, equipment, facilities, and data of the other Party for which it has been granted the right to access and use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party will use Commercially Reasonable Efforts to ensure that only those of its personnel who are specifically authorized to have access to the Systems, premises, equipment, facilities, and data of the other Party gain such access, and use Commercially Reasonable Efforts to prevent unauthorized access, use, destruction, alteration, or loss of such Systems, premises, equipment, facilities, or data (including, in each case, any information contained therein), including notifying its personnel of the restrictions set forth in this Agreement and of the Safety and Security Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, at any time, the Availed Party determines that any of its personnel has sought to circumvent, or has circumvented, the Safety and Security Policies, that any unauthorized Availed Party personnel has accessed the Systems, premises, equipment, facilities, or data, or that any of its personnel has engaged in activities that may lead to the unauthorized access, use, destruction, alteration, or loss of, or damage to, premises, facilities, equipment, data, information, or software of the other Party, the Availed Party will promptly terminate any such person's access to the Systems, premises, equipment, facilities, or data and promptly notify the other Party. In addition, such other Party will have the right to deny personnel of the Availed Party access to its Systems, premises, equipment, facilities, or data upon notice to the Availed Party in the event that the other Party reasonably believes that such personnel have engaged in any of the activities set forth above in this <u>Section 5.4(c)</u> or otherwise pose a security concern. The Availed Party will use Commercially Reasonable Efforts to cooperate with the other Party in investigating any apparent unauthorized access to such other Party's Systems, premises, equipment, facilities, or data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any Systems, premises, equipment, or facilities of a Party are damaged (ordinary wear and tear excepted) due to the conduct of the Availed Party or any of its Affiliates, or their employees, authorized agents, or subcontractors, the Availed Party will be liable to the other Party for all costs associated with such damage, to the extent such costs exceed any available insurance proceeds.

ARTICLE VI<br> TERMINATION

Section 6.1 <u>Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of this Agreement (the "<u>Term</u>") will commence upon the Reorganization and end on the earliest to occur of (i) the date on which the provision of all Services have terminated pursuant to <u>Annex A</u> or <u>Annex B</u> (inclusive of any term extension agreed to by the Parties for any Extendable Service pursuant to <u>Section 6.1(b)</u>), (ii) the date on which the provision of all Services has been terminated by the Parties pursuant to <u>Section 6.2</u>, (iii) the date this Agreement is terminated pursuant to <u>Section 6.3</u>, and (iv) the date that is twenty-four (24) months after the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless identified on <u>Annex A</u> and <u>Annex B</u> as ineligible for extension, all Services are eligible for an extension of their respective Service Term as provided in this <u>Section 6.1(b)</u> (each such Service, an "<u>Extendable Service</u>"). To the extent reasonably necessary to (i) continue the transition of any Extendable Service from Service Provider or its Affiliates to Service Recipients, its Affiliates or other providers, and (ii) the continued operation of Service Recipient's business in connection therewith, in each case, as reasonably agreed by Service Provider and Service Recipient, Service Recipient may elect, by delivering written notice to Service Provider no later than sixty (60) days prior to the end of the then in effect term for such Extendable Service, to extend any such Extendable Service (and, as necessary, the term of this Agreement with respect to such Service) for a maximum period of six (6) months beyond the scheduled termination of such Service (which period shall in no event end later than the date that is the thirty-six (36) month anniversary of the Distribution Date); <u>provided</u>, <u>however</u>, that Service Recipient may only extend each such Extendable Service one time; <u>provided further</u>, <u>however</u>, that any extension of the Service Term for such Extendable Service is subject to receiving any necessary consents from Third Party vendors to such extension. To the extent the Service Term of any Extendable Service is extended hereunder, Service Recipient will be responsible for any incremental costs related to enabling such extension. If Service Provider agrees to provide such Extendable Service during the requested period, then (i) the Parties shall in good faith negotiate the terms of an amendment to the Annexes hereto, which amendment shall be consistent with the terms of the applicable Service, and (ii) the Fee for such Service during the extension of the Service Term shall be equal to 105% of the original Fee for such Service.

Section 6.2 <u>Partial Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless identified on <u>Annex A</u> or <u>Annex B</u> as ineligible for termination prior to the expiration of the Service Term, all Services are eligible for termination prior to the expiration of the Service Term ("<u>Eligible Services</u>"). The Service Recipient may, upon providing sixty (60) days written notice to the Service Provider and satisfying any such other requirements specified in <u>Annex A</u> or <u>Annex B</u> with respect to any such Eligible Service, terminate any Eligible Services that, prior to the expiration of the Service Term, are no longer needed from the Service Provider, in which case this Agreement will terminate as to such Eligible Services (a "<u>Partial Termination</u>"); <u>provided</u>, that such termination shall not relieve the Service Recipient from any obligations arising under this Agreement prior to the termination of such Service(s) or its obligations with regard to those Services it continues to receive. The Parties will mutually agree as to the effective date of any Partial Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any termination prior to the scheduled expiration of the Service Term or of any Partial Termination hereunder, with respect to any terminated Services in which the Fee for such terminated Services is charged as a flat monthly rate, if termination occurs other than the end of the month, there will be no proration of the monthly rate. To the extent any amounts due or advances made hereunder related to costs or expenses that have been or will be incurred and that cannot be recovered by the Service Provider, such amounts due or advances made will not be prorated or reduced and the Service Provider will not be required to refund to the Service Recipient any prorated amount for such costs or expenses; and the Service Recipient will reimburse the Service Provider for (i) Service Recipient's proportional share of any Third Party costs or charges that are required to be paid in connection with the provision of any Services and that cannot be terminated and (ii) any Third Party cancellation or similar charges incurred as a result of the Service Recipient's early termination.

Section 6.3 <u>Termination of Entire Agreement</u>. Subject to the provisions of <u>Section 6.5</u>, a Party will have the right to terminate this Agreement or effect a Partial Termination effective upon delivery of written notice to the other Party if the other Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) makes an assignment for the benefit of creditors, or becomes bankrupt or insolvent, or is petitioned into bankruptcy, or takes advantage (with respect to its own property and business) of any state, federal or foreign bankruptcy or insolvency act, or if a receiver or receiver/manager is appointed for all or any substantial part of its property and business and such receiver or receiver/manager remains undischarged for a period of thirty (30) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) materially defaults in the performance of any of its covenants or obligations contained in this Agreement (or, in the case of a Partial Termination, with respect to the Services being terminated) and such default is not remedied to the non-defaulting Party's reasonable satisfaction within thirty (30) days after receipt of written notice by the defaulting Party informing such Party of such default, or if such default is not capable of being cured within thirty (30) days, if the defaulting Party has not promptly begun to cure the default within such thirty (30) day period and thereafter proceeded with all diligence to cure the same.

Section 6.4 <u>Procedures on Termination</u>. Following any termination of this Agreement or Partial Termination, each Party will cooperate with the other Party as reasonably necessary to avoid disruption of the ordinary course of the other Party's and its Subsidiaries' businesses. Termination will not affect any right to payment for Services provided prior to termination.

Section 6.5 <u>Effect of Termination</u>. <u>Section 4.1</u> and <u>Section 4.2</u> (in each case, with respect to Fees and Taxes attributable to periods prior to termination), <u>Section 3.2</u>, <u>Section 4.3</u>, <u>Section 4.4</u>, <u>Section 6.4</u>, this <u>Section 6.5</u>, <u>ARTICLE I</u>, <u>ARTICLE V</u>, <u>ARTICLE VII</u> and <u>ARTICLE VIII</u> will survive any termination of this Agreement. In the event of a Partial Termination, this Agreement will remain in full force and effect with respect to the Services which have not been terminated by the Parties as provided herein. For the avoidance of doubt, the termination of this Agreement with respect to the Services provided under one Annex, but not the other Annex, will not be a termination of this Agreement.

Section 6.6 <u>Exit</u>. The Parties acknowledge that Transfer Regulations may apply on termination of the whole or part of this Agreement such that the contracts of employment between the Service Provider and the Transferring Employees may have effect as if originally made between the Service Recipient and the Transferring Employees and that any collective agreements applicable to such Transferring Employees may have effect between the Service Recipient and the relevant trade union.

Section 6.7 <u>Responsibility for Salary and Other Benefits on Exit</u>. All emoluments and outgoings in relation to the Transferring Employees (including without limitation all wages, bonuses, holiday pay, social insurance contributions, pension contributions and otherwise) shall be borne by the Service Provider up to and including the Termination Date and by the Service Recipient with effect from the Termination Date.

Section 6.8 <u>Indemnities on Exit</u>. In connection with a transfer under <u>Section 6.6</u>, the Parties agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Service Provider will indemnify, keep indemnified, and hold harmless the Service Recipient against all Liabilities in respect of the Transferring Employees, arising from, in respect of or as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any act or omission by the Service Provider (including any failure to comply with an applicable obligation under <u>Section 6.7</u>) relating to any Transferring Employees occurring prior to the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any failure by the Service Provider to comply with any requirement of any Transfer Regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Service Recipient will indemnify, keep indemnified, and hold harmless, the Service Provider against all Liabilities in respect of the Transferring Employees arising from, in respect of or as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any act or omission by the Service Recipient (including any failure to comply with an applicable obligation under <u>Section 6.7</u>) relating to any Transferring Employees occurring on or after the Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any claim arising out of the provision of or proposal by the Service Recipient to offer or effect any variation to any benefit, term or condition or working condition of any Transferring Employees which is intended to take effect on or after the Termination Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any failure by the Service Recipient to comply with any Transfer Regulations in respect of the Transferring Employees.

Section 6.9 <u>Procedure and Indemnity for Claims by Non-Transferring Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any person other than any Transferring Employee claims or alleges as a result of the termination of this Agreement that his contract of employment has transferred to the Service Recipient pursuant to any Transfer Regulations, the following process shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Service Recipient shall notify the Service Provider in writing within thirty-five (35) days of the Termination Date and in any event seven (7) days of becoming aware of that allegation or claim ("<u>Notification</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within twenty-eight (28) days of Notification, the Service Provider may offer employment to such person on their existing terms and conditions of employment. If such offer of employment is accepted, the Service Recipient shall immediately release the person from its employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if an offer of employment has not been made or accepted then the Service Recipient may terminate the employment of such person within seven (7) days of the expiry of the twenty-eight (28) day period referred to in <u>Section 6.9(a)(ii)</u>.

Subject to the provisions of <u>Section 6.9</u> being followed by the Service Recipient, the Service Provider will indemnify, keep indemnified, and hold harmless, the Service Recipient against all Liabilities arising out of such allegation or claim up to the date of and in respect of such termination. If the Service Recipient fails to take the action outlined in <u>Section 6.9(a)(iii)</u> within the appropriate time period then such person will be deemed a Transferring Employee.

ARTICLE VII<br> INDEMNIFICATION AND DISPUTE RESOLUTION

Section 7.1 <u>Limitation of Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Party nor any of such Party's Affiliates will be liable, whether in contract, tort (including negligence and strict liability) or otherwise, for any special, indirect, punitive, incidental or consequential damages whatsoever that in any way arise out of, relate to, or are a consequence of, its performance or nonperformance hereunder, or the provision of or failure to provide any Service hereunder, including loss of profits, loss of data, diminution in value, business interruptions and claims of customers, whether or not such damages are foreseeable or any Party has been advised of the possibility or likelihood of such damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for Liabilities arising out of or related to the gross negligence, willful misconduct, or bad faith of the Service Provider, in no event will the Service Provider's aggregate liability arising under or in connection with this Agreement (or the provision of Services hereunder) exceed the Fees paid or payable to the Service Provider from the Service Recipient pursuant to this Agreement in respect of the Service from which such Liabilities flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party will use Commercially Reasonable Efforts to mitigate the Liabilities for which the other is responsible hereunder. In the event of any breach of this Agreement by any Service Provider with respect to the provision of any Services (with respect to which the Service Provider can reasonably be expected to re-perform in a commercially reasonable manner), the Service Provider shall promptly correct in all material respects such error, defect or breach or to perform again in all material respects such Services at the request of the Service Recipient and at the sole cost and expense of the Service Provider. Any request for re-performance in accordance with this <u>Section 7.1(c)</u> by the Service Recipient must be in writing and specify in reasonable detail the particular error, defect, or breach, and such request must be made no more than one (1) month from the date such error, defect or breach becomes apparent to the Service Recipient or should have reasonably become apparent to the Service Recipient. This <u>Section 7.1(c)</u> shall survive any termination of this Agreement.

Section 7.2 <u>Indemnification by WhiteFiber</u>. WhiteFiber will indemnify, defend and hold harmless each of the Bit Digital Indemnified Parties for any Liabilities incurred by the Bit Digital Indemnified Parties to the extent arising from or relating to: (a) any material breach of this Agreement by WhiteFiber (including in the event resulting in a termination by Bit Digital under <u>Section 6.3</u>); (b) any gross negligence, willful misconduct, fraud, or bad faith by WhiteFiber, the other members of the HPC Services Business Segment, or its or their employees, suppliers or contractors, in the provision of the WhiteFiber Services by WhiteFiber, the other members of the HPC Services Business Segment or its or their employees, suppliers or contractors pursuant to this Agreement; and (c) the provision of the Bit Digital Services by Bit Digital, the other members of the Bit Digital Group or its or their employees, suppliers or contractors, except to the extent that such Liabilities are finally determined by a court of competent jurisdiction to have arisen out of the material breach of this Agreement, gross negligence, willful misconduct, or bad faith of Bit Digital, the other members of the Bit Digital Group or its or their employees, suppliers, or contractors in providing the Bit Digital Services.

Section 7.3 <u>Indemnification by Bit Digital</u>. Bit Digital will indemnify, defend and hold harmless each of the WhiteFiber Indemnified Parties for any Liabilities incurred by the WhiteFiber Indemnified Parties to the extent arising from or relating to: (a) any material breach of this Agreement by Bit Digital (including in the event resulting in a termination by WhiteFiber under <u>Section 6.3</u>); (b) any gross negligence, willful misconduct, fraud, or bad faith by Bit Digital, the other members of the Bit Digital Group, or its or their employees, suppliers or contractors, in the provision of the Bit Digital Services by Bit Digital, the other members of the Bit Digital Group or its or their employees, suppliers or contractors pursuant to this Agreement; and (c) the provision of the WhiteFiber Services by WhiteFiber, the other members of the HPC Services Business Segment or its or their employees, suppliers or contractors, except to the extent that such Liabilities are finally determined by a court of competent jurisdiction to have arisen out of the material breach of this Agreement, gross negligence, willful misconduct, or bad faith of WhiteFiber, the other members of the HPC Services Business Segment or its or their employees, suppliers, or contractors in providing the WhiteFiber Services.

Section 7.4 <u>Exclusive Remedy</u>. Except for equitable relief and rights pursuant to <u>Section 4.2</u>, <u>Section 4.3(b)</u> or <u>ARTICLE V</u>, the indemnification provisions of this <u>ARTICLE VII</u> will be the exclusive remedy for breach of this Agreement.

Section 7.5 <u>Risk Allocation</u>. Each Party agrees that the Fees charged under this Agreement reflect the allocation of risk between the Parties, including the disclaimer of warranties in <u>Section 3.7</u> and the limitations on liability in <u>Section 7.1</u>. Modifying the allocation of risk from what is stated here would affect the Fees that are charged for the Services, and in consideration of those Fees, each Party agrees to the stated allocation of risk.

Section 7.6 <u>Indemnification Procedures</u>. All claims for indemnification pursuant to <u>ARTICLE V</u> or this <u>ARTICLE VII</u> will be made as follows:

Each Person seeking indemnification under this Agreement (the "<u>Indemnitee</u>") will give prompt written notice to the Person from whom indemnification is sought (the "<u>Indemnifying Party</u>") of the assertion of any claim or the commencement of any Action by any Third Party ("<u>Third-Party Claim</u>"); <u>provided</u> that the failure of the Indemnitee to give notice as provided in this <u>Section 7.6</u> will not relieve any Indemnifying Party of its obligations under <u>ARTICLE V</u> or <u>ARTICLE VII</u>, except to the extent that such failure actually prejudices the rights of any such Indemnifying Party. Such notice will set forth in reasonable detail such claim and the basis for indemnification (taking into account the information then available to the Indemnitee). Thereafter, the Indemnitee will deliver to the Indemnifying Party, as promptly as reasonably practicable following the Indemnitee's receipt thereof, copies of all written notices and documents (including any court papers) received by the Indemnitee relating to the Third-Party Claim and the Indemnitee will provide the Indemnifying Party with such other Information with respect to any such Third-Party Claim reasonably requested by the Indemnifying Party. The Indemnifying Party will have the right, at its sole option and expense, to be represented by counsel of its choice and, subject to the limitations set forth in this <u>Section 7.6</u>, to assume control of, and defend against, negotiate, settle or otherwise deal with such Third-Party Claim, but the Indemnitee may nonetheless participate in the defense of such Third-Party Claim with its own counsel and at its own expense. In the case of any Third-Party Claim for which indemnification is sought, the Indemnifying Party will have the right, upon written notice to the Indemnitee within 30 days after receipt of the notice of such claim (the "<u>Indemnification Dispute Period</u>"), to assume control of and defend against such Third-Party Claim. If the Indemnifying Party elects not to defend against, negotiate, settle or otherwise deal with any Third-Party Claim, or fails to provide the Indemnitee with notice of its intent to assume control of and defend against any Third-Party Claim within the Indemnification Dispute Period, then the Indemnitee may defend against, negotiate, settle or otherwise deal with such Third-Party Claim. If the Indemnifying Party will assume the defense of any Third-Party Claim pursuant to this <u>Article VII</u>, then the Indemnitee may participate, at his or its own expense, in the defense of such Third-Party Claim; <u>provided</u> that such Indemnitee will be entitled to participate in any such defense with separate counsel at the expense of the Indemnifying Party if (i) requested by the Indemnifying Party to participate or (ii) in the reasonable opinion of counsel to the Indemnifying Party, a material conflict exists between the Indemnitee and the Indemnifying Party that would make such separate representation advisable; <u>provided</u>, <u>further</u> that the Indemnifying Party will not be required to pay for more than one such counsel for all Indemnitees in connection with any Third-Party Claim. Notwithstanding the foregoing, participation by the Indemnitee will allow the Indemnitee to consult with independent counsel or advisors and to submit comments and questions, which the Indemnifying Party will consider or respond to in good faith but the Indemnifying Party will not be obligated to act upon and, subject to the terms of this <u>Article VII</u>, such comments or questions will not alter or limit the Indemnifying Party's obligations as set forth in this Agreement.

Notwithstanding anything to the contrary hereunder, neither Party may assert against the other Party or submit to arbitration or legal proceedings any cause of action, dispute or claim for indemnification which accrued more than two (2) years after the later of (a) the occurrence of the act or event giving rise to the underlying cause of action, dispute or claim, and (b) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Party asserting the cause of action, dispute or claim.

Section 7.7 <u>Project Managers</u>. Each Party shall appoint one or more representatives who will be its authorized representative and empowered to act on its behalf in connection with this Agreement (each a "<u>Project Manager</u>" and collectively, the "<u>Project Managers</u>"). The Project Managers shall (a) represent and act for their respective Party for matters related to the applicable Service, and (b) meet and/or confer on a regular basis (at mutually agreed times and locations) to review the activities under this Agreement and to discuss the status and progress of such activities, including, without limitation, any partial termination of Services and progress towards transitioning off of Services. The Project Managers will have day-to-day responsibility for the provision and use of the Services. The initial Project Managers will be the Persons identified on <u>Annex B</u>. Each Party will promptly notify the other in writing in the event of any change to the appointment a Project Manager.

Section 7.8 <u>Mediation</u>. In the event that a Dispute has not been resolved within 30 days of the receipt of the initial notice in accordance with <u>Section 7.6</u>, or within such longer period as the Parties may agree to in writing, then such Dispute shall, upon the written request of a Party (the "<u>Mediation Request</u>"), be submitted to mandatory mediation in accordance with the American Arbitration Association (the "AAA"), Mediation Procedure (the "<u>Procedure</u>") then in effect, except as modified herein. The mediation shall be held in (i) at the time a Mediation Request is submitted in New York City, New York, or (ii) such other place as the Parties may mutually agree in writing. The parties shall have fifteen (15) days from receipt of a Mediation Request to agree on a mediator. If no mediator has been agreed upon by the Parties within fifteen (15) days of receipt of a Mediation Request, then any Party may request (on written notice to the other Party) that the AAA appoint a mediator in accordance with the Procedure. If the Dispute has not been resolved within thirty (30) days of the appointment of a mediator, or within such longer period as the Parties may agree to in writing, either Party may commence litigation in the appropriate jurisdiction.

ARTICLE VIII<br> MISCELLANEOUS

Section 8.1 <u>Amendments and Waivers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be amended and any provision of this Agreement may be waived; <u>provided</u>, <u>however</u>, that any such amendment or waiver, as the case may be, is in writing and signed, in the case of an amendment, by the Parties or, in the case of a waiver, by the Party against whom the waiver is to be effective. No course of dealing between or among any Persons having any interest in this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No delay or failure in exercising any right, power or remedy hereunder will affect or operate as a waiver thereof; nor will any single or partial exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power or remedy preclude any further exercise thereof or of any other right, power or remedy. The rights and remedies hereunder are cumulative and not exclusive of any rights or remedies that any Party would otherwise have.

Section 8.2 <u>Notices</u>. All notices, requests, permissions, waivers and other communications hereunder will be in writing and will be deemed to have been duly given (a) upon transmission, if sent by email with confirmation of receipt, (b) when delivered, if delivered personally to the intended recipient, and (c) one Business Day following sending by overnight delivery via an international courier service and, in each case, addressed to a Party at the following address for such Party:

If to Bit Digital or any member of the Bit Digital Group:

Bit Digital, Inc.

31 Hudson Yards, 11<sup>th</sup> Floor

New York, NY 10001

Attention: Samir Tabar, CEO

Email: sam@bit-digital.com

if WhiteFiber, Inc.:

WhiteFiber, Inc.

31 Hudson Yards, 11th Floor

New York, NY 10001

Attention: Erke Huang, CFO

Email: erke@whitefiber.com

or to such other address(es) as may be furnished in writing by any such Party to the other Party in accordance with the provisions of this <u>Section 8.2</u>.

Section 8.3 <u>Entire Agreement</u>. This Agreement, including the Annexes hereto and the sections of the Separation Agreement referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements and understandings of the Parties of any nature, whether oral or written, with respect to such subject matter.

Section 8.4 <u>No Third-Party Beneficiaries</u>. Except to the extent otherwise provided in <u>ARTICLE VII</u>, this Agreement is solely for the benefit of the Parties and does not confer on Third Parties any remedy, claim, reimbursement, claim of action or other right in addition to those existing without reference to this Agreement.

Section 8.5 <u>Governing Law</u>. This Agreement and all disputes or controversies arising out of or relating to this Agreement will be governed by, and construed in accordance with, the Laws of the State of New York, without regard to the conflict of Laws provisions thereof that would cause the Laws of another state to apply.

Section 8.6 <u>Assignability</u>. No Party may assign its rights or delegate its duties under this Agreement without the written consent of the other Party, except that a Party may assign its rights or delegate its duties under this Agreement to a member of its Group, <u>provided</u> that (a) such Person agrees in writing to be bound by the terms and conditions contained in this Agreement and (b) such assignment or delegation will not relieve any Party of its indemnification obligations or other obligations under this Agreement. Any attempted assignment or delegation in contravention of the foregoing will be void.

Section 8.7 <u>Severability</u>. The Parties agree that (a) the provisions of this Agreement will be severable in the event that for any reason whatsoever any of the provisions hereof are invalid, void or otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable provisions will be replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable provisions but are valid and enforceable, and (c) the remaining provisions will remain valid and enforceable to the fullest extent permitted by applicable Law.

Section 8.8 <u>Counterparts</u>. This Agreement may be executed in multiple counterparts (any one of which need not contain the signatures of more than one Party), each of which will be deemed to be an original but all of which taken together will constitute one and the same agreement. This Agreement, and any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other electronic transmission, will be treated in all manner and respects as an original agreement and will be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person. At the request of any Party, the other Party will re-execute original forms thereof and deliver them to the requesting Party.

Section 8.9 <u>Rules of Construction</u>. The descriptive headings herein are inserted for convenience of reference only and are not intended to be a substantive part of or to affect the meaning or interpretation of this Agreement. Whenever required by the context, any pronoun used in this Agreement or Annexes will include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns, pronouns, and verbs will include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof. References in this Agreement to any document, instrument or agreement (including this Agreement) includes and incorporates all exhibits, disclosure letters, schedules and other attachments thereto. Unless the context otherwise requires, any references to an "Annex," "Section" or "Article" will be to an Annex, Section or Article to or of this Agreement. The use of the words "include" or "including" in this Agreement or the Schedules will be deemed to be followed by the words "without limitation." The use of the word "covenant" will mean "covenant and agreement." The use of the words "or," "either" or "any" will not be exclusive. Days mean calendar days unless specified as Business Days. References to statutes will include all regulations promulgated thereunder, and references to statutes or regulations will be construed to include all statutory and regulatory provisions consolidating, amending or replacing the statute or regulation as of the date hereof. The Parties 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. Except as otherwise expressly provided elsewhere in this Agreement or any other Transaction Document, any provision herein which contemplates the agreement, approval or consent of, or exercise of any right of, a Party, such Party may give or withhold such agreement, approval or consent, or exercise such right, in its sole and absolute discretion, the Parties hereby expressly disclaiming any implied duty of good faith and fair dealing or similar concept.

Section 8.10 <u>Specific Performance</u>. The Parties agree that irreparable damage would occur if any provision of this Agreement was not performed in accordance with its specific terms or was otherwise breached. It is accordingly agreed that the Parties will be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the performance of the terms and provisions of this Agreement without proof of actual damages, this being in addition to any other remedy to which any Party is entitled at Law or in equity. Each Party further agrees that no other Party or any other Person will be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this <u>Section 8.10</u>, and each Party irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument and will not contest the appropriateness of specific performance as a remedy.

Section 8.11 <u>Precedence of Schedules</u>. Each Schedule attached to or referenced in this Agreement is hereby incorporated into and shall form a part of this Agreement; <u>provided</u>, <u>however</u>, that the terms contained in such Schedule shall only apply with respect to the Services provided under that Schedule. In the event of a conflict between the terms contained in an individual Schedule and the terms in the body of this Agreement, the terms in the Schedule shall take precedence with respect to the Services under such Schedule only. No terms contained in individual Schedules shall otherwise modify the terms of this Agreement.

Section 8.12 <u>Force Majeure</u>. No Party shall be deemed in default of this Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder so long as and to the extent to which any delay or failure in the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. Without limiting the termination rights contained in this Agreement, in the event of any such excused delay, the time for performance of such obligation (other than a payment obligation) shall be extended for a period equal to the time lost by reason of the delay. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written notice to the other Party of the nature and extent of any such Force Majeure condition; and (b) use Commercially Reasonable Efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable (and in no event later than the date that the affected Party resumes analogous performance under any other agreement for itself, its Affiliates or any Third Party) unless this Agreement has previously been terminated under <u>ARTICLE VI</u>.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first written above by their respective duly authorized officers.

**BIT DIGITAL, INC.** 

---

| | |
|:---|:---|
| By: |  |
| Name: | Samir Tabar |
| Title: | Chief Executive Officer |
| **WHITEFIBER, INC.** | **WHITEFIBER, INC.** |
| By: |  |
| Name: | Erke Huang |
| Title: | Chief Financial Officer |

---

**<u>ANNEX A</u>**

**<u>Services and Fees Charged by Bit Digital</u>**

**<u>ANNEX B</u>**

**<u>Services and Fees Charged by WhiteFiber</u>**

## Exhibit 10.3

**Exhibit 10.3**

**LEASE**

---

| | |
|:---|:---|
| BETWEEN: | **BEDFORD STORAGE LIMITED PARTNERSHIP**, a limited partnership duly constituted under the laws of Ontario, having its head office at 266 King Street West, Suite 405, Toronto, Ontario, M5V 1H8, herein acting and represented by its general partner, **Bedford Self Storage Corporation,** a corporation duly constituted pursuant to the laws of Ontario, having its head office at 266 King Street West, Suite 405, Toronto, Ontario, M5V 1H8, itself represented by Paul Hornak, its Vice-President, duly authorized as he so declares; |
|  | (hereinafter called the "**Landlord**") |
| AND: | **NWORKS MANAGEMENT CORP**., a corporation governed by the *Canadian Business Corporations Act,* having its head office at 20 Deschênes Street, Saint-Quentin, New Brunswick, E8A 1M1, herein acting and represented by Anthony Levesque, Director of Operations, duly authorized in virtue of a resolution of the Directors dated March 16, 2020; |
|  | (hereinafter called the "**Tenant**") |

---

**WHEREAS** the Landlord is the owner of the building located at 3195 de Bedford Road, in the City of Montreal (Borough of Côte-des-Neiges - Notre-Dame-de-Grace) Province of Quebec, H3S 1G3, having a rentable area of 186,947 sq. ft., together with all improvements, alterations or additions situated therein (the "**Building**"), the whole as shown on Schedule "A" hereto;

**WHEREAS** the Tenant wishes to lease from Landlord a space located in the Building and the Landlord agrees to lease to the Tenant the said space;

**THEREFORE, THE PARTIES HEREBY MUTUALLY AGREE AS FOLLOWS:**

**ARTICLE 1 - INTERPRETATION**

**1.1** **Definitions** 

In this Lease, unless the context indicates otherwise, the following words or expressions have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Additional Rent**" has the meaning ascribed to it under Section 5.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Basic Rent**" has the meaning ascribed to it under Section 5.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**HVAC System**" means the heating, air-conditioning and ventilating systems of the
 Building and the Premises, including any components thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Land** "
 means the land on which the Building is situated and known as lot number TWO MILLION ONE
 HUNDRED SEVENTY-FOUR THOUSAND FIVE HUNDRED AND FORTY-SEVEN (2 174 547) of Cadastre of Québec,
 Registration Division of Montréal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Landlord's Work**" has the meaning ascribed to it in Schedule "B";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Law** "
 includes any applicable statute, regulation, by-law, rule, regulation, order or ordinance
 of any level of government, whether federal, provincial, municipal or otherwise, or of any
 competent court or regulatory authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Lease** "
 means this Lease and all schedules attached thereto, as it or they may from time to time
 be amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Lease Year**" means, in respect of the first Lease Year, the period of time commencing
 on the Commencement Date and expiring on the last day of the month of December next following;
 thereafter, each Lease Year shall consist of consecutive periods of twelve (12) calendar
 months, commencing on January 1<sup>st</sup> and ending on December 31<sup>st</sup> . However, the last Lease Year shall terminate upon the expiration of the Term or earlier termination
 of this Lease, as the case may be. The Landlord may in its discretion change the Lease Year
 from time to time;

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Letter of Credit**" has the meaning ascribed to it under Article 6;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Operating Costs**" means all reasonable expenses incurred and paid by the Landlord, without
 duplication, in the maintenance, repair, replacement of the common elements of the Property,
 including without limitation the common equipment and systems, common corridors, access roads,
 roadways, parking spaces, sidewalks, common facilities and common services available, at
 the commencement of the Term or added or provided for at any time thereafter (collectively:
 the "**Common areas** "), and operation, supervision and administration of
 the Property, including without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. repairs and replacements to the Property including, without
limitation, repairs and replacements to the Structure and the Building's base building systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. costs of maintenance and repair of the HVAC System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the amortized portion of any expenses of capital nature including,
without limitation, the costs of repairing and replacing floors and windows, parking area and light standards, the costs of replacing
any systems of the Building including without limitation the HVAC System, which capital expenses shall be amortized by the Landlord on
a straight-line basis over the useful life of the item repaired or replaced, in accordance with the Accounting Standards for Private
Enterprises (ASPE);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Landlord's Insurance as set out in Section 11.1 below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. all utilities servicing the Common areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. landscaping, cleaning and snow and ice removal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. if applicable and provided for by the Landlord, garbage and
waste collection and disposal for the Property, including the leasable premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. costs of metered water should same be charged to the Landlord
by the municipality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. charges for electricity for the Property (excluding charges
for electricity for any premises or spaces used exclusively by a tenant of the Property, including the Tenant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. costs of insuring the Building in the manner and form, and
at the amounts and limits, as determined by the Landlord, acting reasonably from time to time and the costs of Landlord's insurance described
in Section 11.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. labour costs for janitors or others, maintenance and repair
costs which are generally included in operating costs, cleaning and building supplies, service contracts with independent contractors
for the HVAC System for which the Landlord is responsible, cleaning, refuse removal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. reasonable labour costs for accounting staff and travel costs;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiii. reasonable auditing, accounting, legal and other professional
and consulting fees and disbursements incurred in connection with the maintenance and operation of the Property, including those incurred
with respect to the preparation of any statements and estimates required under the Lease, and costs of minimizing, contesting, or appealing
assessment of Real Estate Taxes (whether or not successful).

Furthermore, it is understood and agreed that the Operating Costs shall not include any of the following cost or expense incurred by the Landlord:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the costs of repairs to the Building or part thereof resulting
from faulty construction, deficient materials or workmanship or inherent structural defects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. environmental or hazardous substances site reviews, site
clean-up and related expenses not caused by the Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. in connection with the original acquisition, original development,
original construction of the Building and any new expansion in the square footage of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. the depreciation of the Building (including the improvements,
fixtures or equipment thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. any principal and/or interest on any mortgage related to
the Building or any ground rentals/payment relating to emphyteusis and/or any other debt costs of the Landlord, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. income taxes, profits on taxes or other taxes, which are
personal to the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. tax on capital and any large corporation tax and any similar
tax imposed or levied on Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. net recoveries from insurance policies taken out by Landlord,
and warranties in favour of Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. interest or penalties incurred as a result of Landlord's
late payment of any bill, and any bad debt loss, rent loss or reserves for bad debt or rent loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. any federal goods and services tax (GST) and any Quebec sales
tax (QST) to the extent that they are available to Landlord as a credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Premises** "
 means Unit 4 in the Building, having a rentable area of approximately 64,642 sq. ft., subject
 to final measurement as per the Landlord's chosen measurement method for the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) "**Prime Rate** "
 means the prime rate of interest charged from time to time by Landlord's bankers to
 their prime commercial corporate borrowers on demand loans in Canadian dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Property** "
 means collectively the Building and the Land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Proportionate Share**" means a fraction that has as its numerator the rentable area of the Premises,
 and as its denominator, the rentable area of the Building. As of the date of execution hereof,
 Tenant's Proportionate Share is estimated to be 34.58%. This ratio may vary in the
 event of an increase or a reduction in the rentable area of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Real Estate Taxes**" shall mean collectively, all taxes, surtaxes, rates, levies, impositions
 and assessments, general or special, and any other taxes, surtaxes, rates, levies, impositions
 or assessments which are now or which may ever be levied or imposed, for municipal, urban
 community, school, public betterment, general, local improvement or other purposes against
 or in respect of the Building and Land by any Taxing Authority. If the system of taxation
 now in effect is altered and any new tax, surtax, rate, levy, imposition or assessment is
 imposed or levied upon the Building and Land or the owner thereof in substitution for or
 in addition to those presently levied or imposed upon the Building and Land, the term "Real
 Estate Taxes" shall include such new tax, surtax, rate, levy, imposition or assessment.
 If at any time any credit or rebate is given to the Landlord by a competent taxing authority
 with respect to any vacant space in the Building, the Tenant shall not be entitled to any
 portion thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Rent** "
 means collectively the Basic Rent, the Additional Rent and any other amount due by the Tenant
 to the Landlord in virtue of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Structure**" means all structural aspects of the Property including, without limitation, the foundations,
 any bearing or exterior walls, the roof and the roof membrane, the parking lot structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Taxing Authority** "
 means any duly constituted public authority, whether federal, provincial, municipal, school
 or otherwise, legally empowered to make assessments or evaluations or to levy, rate, charge
 or assess taxes, rates, assessments, charges or fees of any sort; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Term** "
 means the Initial Term and any renewal period of this Lease as set forth in Section 3.3,
 once Tenant has exercised its option.

**1.2** **Captions and Paragraph Numbers** 

Captions, paragraph numbers and section numbers are inserted only for convenience and in no way define, limit, construe or describe the scope or intent of such paragraphs or articles of this Lease nor in any way affect this Lease.

**1.3** **Extended Meanings** 

The words "hereof", "herein", "hereunder" and similar expressions used in any section, paragraph or subparagraph of this Lease relate to the whole of this Lease and not to that section, paragraph or subparagraph only, unless otherwise expressly provided. The use of the neuter singular pronoun to refer to Landlord is deemed a proper reference even though Landlord is an individual, a partnership, a corporation or a group of two or more persons or any combination thereof. The necessary grammatical changes required to make the provisions of this Lease apply in the plural sense where there is more than one Landlord, or to corporations, associations, partnerships or individuals, or to males or females, shall in all instances be assumed as though in each case fully expressed.

**1.4** **Reasonableness** 

The parties hereto shall exercise their rights and act reasonably at all times. Whenever the decision, consent, approval or permission is required of Landlord, or the discretion of Landlord must be exercised, then such decision, consent, approval or permission shall also require Landlord to act reasonably and not be withheld or delayed unreasonably nor shall such discretion be exercised unreasonably, arbitrarily or unfairly.

**ARTICLE 2 - LEASE**

**2.1** **Lease** 

Landlord hereby leases the Premises to Tenant, and Tenant leases same from Landlord, for the Term.

The parties hereto agree that this Lease is a net lease. The Tenant acknowledges and agrees that this Lease, save and except as otherwise indicated in this Lease, is an entirely net lease for the Landlord. Unless indicated to the contrary herein, the Landlord shall not be responsible during the Term for any costs, charges, expenses and outlays of any nature whatsoever arising from or relating to the Premises, the use and occupancy thereof or the contents thereof or the business carried on therein and the Tenant shall alone be responsible for and pay all costs, charges, impositions and expenses of any nature whatsoever relating to the Premises and the Tenant's Proportionate Share of all costs, charges, impositions and expenses of any nature whatsoever relating to the Property, including all costs incurred or paid for by the Landlord on the Tenant's behalf.

**2.2** **Representations** 

*Conditions of the Premises*

 

Subject to Landlord's Work, the Landlord declares that the Building and Premises are in good working order and state of repair and are, to the best of Landlord's knowledge without doing inquiry, in compliance with all applicable Laws. The Landlord further declares that, as of the date of execution of the Lease, it has not received any notice of non-compliance from any governmental authority in relation to the Building and Premises. Landlord shall be responsible to ensure that the Building and Premises are at all times in good working order and state of repair and in compliance with all applicable laws, subject to Tenant's obligations hereunder.

Subject to the Landlord's Work set out in Schedule B, the Tenant declares that it has visited the Premises, that it accepts the Premises on an "as is, where is" basis, and that it shall not call upon the Landlord to perform any improvements other than the Landlord's Work. All the modifications, alterations and leasehold improvements to the Premises, including any modifications to the Building and installation of special equipment that may be required by the Tenant (including specific modifications to the HVAC and/or ventilation systems to operate the Premises for the Permitted Use beyond what is normally required as HVAC system for the Premises) to operate the Premises for the Permitted Use, which in each case are not specifically within the scope of the Landlord's Work, shall be performed by the Tenant, at its cost, in compliance with Section 9.3.

**ARTICLE 3 - INITIAL TERM AND OPTIONS**

**3.1** **Initial Term** 

The initial term of the Lease shall be fifteen (15) years and nine (9) months (the "**Initial Term**") commencing on September 1<sup>st</sup>, 2020 (the "**Commencement Date**"), and terminating on May 31<sup>st</sup>, 2036 (the "**Expiry Date**"), unless terminated earlier pursuant to the provisions hereof.

**3.2** **Early Occupancy** 

Notwithstanding the Commencement Date, the Tenant shall have the right to occupy the Premises, in common with the Landlord, immediately following the later of: (a) the date both parties have signed the present Lease; (b) the date the Landlord receives the Letter of Credit, and (c) the Landlord receives the Tenant's insurance certificate that the Tenant must provide pursuant to Section 11.3 (the "**Early Occupancy Date**"), in order to carry out the fixturing of the Premises and to operate its business in accordance with the Permitted Use. During the period commencing on the Early Occupancy Date until the day immediately preceding the Commencement Date (the "**Early Occupancy Period**"), the Tenant shall not be required to pay Basic Rent and Additional Rent; however, the Tenant shall be bound by all other terms and conditions of the Lease during the Early Occupancy Period, and shall pay all other charges, costs, outlays and expenses payable by Tenant under this Lease, including without limitation, the cleaning cost and the cost of utilities consumed in the Premises.

In the event the Landlord is delayed in substantially completing the Landlord's Work within the delays provided for in Schedule B, the Landlord shall not be liable toward Tenant for any such delays in delivering the items of the Landlord's Work, without any compensation being due to Tenant by the Landlord therefor, and without affecting the validity of the Lease or construing Landlord liable in damages of any nature whatsoever toward the Tenant.

Notwithstanding the foregoing, any delay in meeting the deadlines set out in Schedule B, shall postpone the Commencement Date (and consequently, the payment of Rent by Tenant) and the Expiry Date by the number of days equivalent to said delay. Also, for the purposes of not delaying the beginning of the Tenant's operations within the Premises, Tenant shall have the right, after giving Landlord a fifteen (15) day prior written notice, to cause the performance of the work not completed by the Landlord and recover the reasonable costs thereof from the Landlord (including through deduction from the Rent payments).

**3.3** **Option to Renew** 

Subject to the Right to Terminate pursuant to the provisions of Section 3.4, and provided the Tenant is not then in default under the Lease, and has delivered to the Landlord, no less than nine (9) months prior to the expiry of the Initial Term, or the First Renewal Period, as the case may be, a written notice of its election to renew the Lease, the Tenant shall have the right to renew this Lease for two (2) additional periods of five (5) years each (the "**Option to Renew**"), each being from June 1<sup>st</sup>, 2036 until May 31<sup>st</sup>, 2041 (the "**First Renewal Period**") and from June 1<sup>st</sup>, 2041 until May 31<sup>st</sup>, 2046 (the "**Second Renewal Period**"), on the same terms and conditions as are contained in this Lease, save and except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall accept the Premises in their "as is, where
is" condition on the commencement date of the renewal period in question; the Landlord having no work to perform to the Premises
nor any Landlord's Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the annual Basic Rent
 payable for the five (5) year period of each Renewal Period shall be equal to the current
 market Basic Rent prevailing prior to the commencement of the applicable Renewal Period for
 a renewal of a lease for buildings of similar type and condition, but shall never be less
 than the annual Basic Rent payable by the Tenant during the last year of the Term or, as
 the case may be, the First Renewal Period, immediately preceding the then exercised renewal
 period (the "**Market Basic Rent** ").

 

In the event the Landlord and Tenant do not come to an agreement on the Market Basic Rent within two (2) months of a Renewal Notice, then, the Landlord and Tenant shall each have the option to submit the issue to arbitration, subject to providing a written notice to that *effect* to the other party no later than thirty (30) days of the expiry of that two (2) month period, failing which the Basic Rent payable by the Tenant for the Initial Term shall be applicable until the decision is rendered by the arbitrator. Should any such notice to submit the issue to arbitration be given according to above, the arbitration shall be conducted in accordance with articles 620 to 648 of the *Code of Civil Procedure,* except that there will be one arbitrator only, who shall be a chartered appraiser and member in good standing of the *Ordre* des *evaluateurs agrees du Quebec* having at least ten (10) years of experience in evaluating properties of comparable type, size, age and condition of the Premises located in the area where the Building is located. Within twenty (20) days of that notice, the parties shall appoint the appraiser. If the parties do not agree on the choice of the appraiser within that twenty (20) day period, one of them may ask a judge of the Superior Court of the Province of Quebec to appoint the appraiser.

Once appointed, the appraiser shall forthwith proceed to the determination of the Market Basic Rent. The appraiser/arbitrator shall provide the parties with its written report within the briefest delay. The appraisal shall be final and binding upon the Landlord and Tenant. Unless the arbitrator decides otherwise, the arbitration costs shall be borne equally between the Landlord and Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there is no Tenant's Allowance, no Early Occupancy Period,
no free rent period, nor any other Tenant inducement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Option to Renew shall not apply anew and there shall
be no other renewal periods after the Second Renewal Period.

For clarity, the Landlord's Right to Terminate and the Tenant's obligation to provide and maintain the Letter of Credit shall apply to the renewal periods.

This Option to Renew is not personal to NWorks Management Corp, and may be assigned or transferred to a Transferee pursuant to a Transfer in accordance with Article 13.

3.4 Landlord's Right to Terminate

If the Landlord intends to redevelop the Property and demolish the Premises, the Landlord shall have a continuous right to terminate the Lease (the "**Right to Terminate**") with effect at any time after the Expiry Date, upon giving Tenant a twenty-four (24) month prior written notice to this effect (the "**Termination Notice**"). The Termination Notice shall indicate the date of termination of the Lease (the "**Termination Date**"), which shall not be earlier than the Expiry Date subject to giving Tenant the Termination Notice.

The Landlord's Right to Terminate the Lease shall be without any compensation or deduction of any kind for the Tenant therefor; the Tenant renouncing to all of its rights and recourses. The Landlord shall not be liable to the Tenant, the Tenant's agents, representatives, employees, directors and officers, customers or guests for any damage, loss, cost, charge, expense and outlay of any nature occurring for any reason as a result of the Right to Terminate. However, should the Landlord not proceed with the demolition and redevelopment of the Property as set forth in the Termination Notice and the Second Notice, other than by reason of superior force the Tenant shall have all rights and recourses to claim from the Landlord any damage, loss, cost, charge, expense and outlay of any nature suffered as a result of the earlier termination of the Lease, excluding any loss or profit or indirect damages.

Notwithstanding the sending of the Termination Notice, the Tenant must respect all the terms and conditions of the Lease up until the Termination Date.

All the terms and conditions of the Lease applicable to the expiration of the Lease shall apply to the Termination Date.

Notwithstanding the Termination Date, Tenant shall remain liable for any and all adjustments of Additional Rent which may be effected after the Termination Date, in respect of any period of the Term occurring prior to the Termination Date.

Landlord benefits from the Right of Termination notwithstanding anything to the contrary in the Lease including, but not limited to, the exercise by the Tenant of any of its Option to Renew the Lease pursuant to Section 3.3.

3.5 Overholding

If Tenant remains in possession of the Premises after the expiry of the Term, there shall be no tacit renewal of this Lease, and Tenant shall be deemed to be occupying the Premises on a month-to-month basis on the same terms and conditions of the Lease as are applicable to a monthly lease, save and except that the Tenant shall pay the aggregate of (i) a monthly Basic Rent equal to 125% of the last monthly payment of Basic Rent for the last year of the Term and (ii) one twelfth (1/12) of the Additional Rent payable by the Tenant for the last year of the Term payable in advance on the first day of each month. This month-to-month tenancy may be terminated at any time thereafter with a prior thirty (30) day notice by the Landlord to the Tenant.

3.6 Right to Enter

During the last nine (9) months of the Term, Landlord shall have the right, upon giving Tenant a twenty four (24) hours' prior written notice to this effect, to enter upon and exhibit the Premises during usual business hours to any prospective tenant. Landlord shall also have the right during such period to place and keep upon the Premises notices or signs to the effect that same are for rent.

**ARTICLE 4 - USE OF PREMISES**

4.1 Use of Premises

Tenant shall use the Premises solely for the purposes of a data centre, for uses related to the foregoing, including, without limitation, technology services, for storage and for office use, and for no other purpose (the "**Permitted Use**"). The operation of a data centre entails the licensing of parts of the Premises by the Tenant to its customers, which licenses shall not be construed as subleases or customers, as subtenants. For the Tenant to grant such licenses to its customers, the prior consent of the Landlord is not required.

Tenant shall have the right to use certain areas on the roof of the Building, at locations determined by the Landlord and the Tenant, both acting reasonably, for the purposes of installing, at the Tenant's costs, the Tenant's specialized equipment for the Permitted Use. Any such installation shall be performed by Tenant, at its cost, in accordance with the provisions of the Lease. Tenant shall also have the right to use areas on the Land adjacent to the Premises for outdoor equipment storage at locations determined by the Landlord. It is understood by the parties that no rent shall be payable to the Landlord for the use of any of those areas.

Notwithstanding any Law and any provision herein to the contrary, Tenant shall at any time during the Term have the right to cease to occupy the Premises or part thereof for any part of the Term and to vacate same, while remaining liable however for the payment of Rent and the performance of its other obligations hereunder. Tenant shall however, notify the Landlord of any vacancy by prior thirty (30) day written notice.

Landlord does not represent or warrant that the Permitted Use comply with the Law; and this Lease is not conditional upon Tenant obtaining any permit for the carrying on of its business from any municipal or other authority. Tenant, at its cost, shall be solely responsible to obtain all permits, consents and authorizations required for its occupation of the Premises and the operation of its business therein for the Permitted Use.

4.2 Parking

Providing the Tenant is not in default under the Lease, the Tenant shall have the right to use up to a maximum of eighteen (18) parking spaces, as follows:

(a) six (6) reserved parking spaces located immediately in front
of the Premises, at the area approximately shown on the two (2) plans attached hereto jointly as Schedule "C-1";

(b) two (2) reserved parking spaces (identified as disabled person
parking) located in front of the premises of the adjacent premises at the location approximately shown on the photo attached hereto as
Schedule "C-2". The Landlord, at any time, may move those two (2) parking spaces to the area which is at an angle in front
of the paving stone to the right of the stairs shown on the photo in Schedule "C-2"; and

(c) ten (10) parking spaces
located in the general parking area of the Property, as approximately shown in yellow on the plan attached hereto as Schedule "C-3,

(collectively: the "**Parking Spaces**").

The Tenant, at its sole cost and expense, shall be responsible to mark, paint or otherwise display "reserved for NWorks" or similar text in each of the above six (6) reserved parking spaces, and "Handicap reserved NWorks" or similar text for the two (2) reserved parking spaces to such effect, and the Tenant shall be responsible for, and shall be entitled to, monitor these reserved parking spaces including the right of towing the cars parked without authorization. The above ten (10) non-reserved parking spaces are located in the parking lot of the Property and are to be used in common with the other tenants of the Property. Subject to the foregoing, the Tenant shall not have the right to use those parking spaces of the parking lot which are designated, from time to time by the Landlord, as being for the exclusive use of another tenant.

The Tenant undertakes: (a) not to assign or sublease the Parking Spaces; (b) to use the Parking Spaces for the purpose of parking passenger vehicles, and for no other purpose, and (c) to respect any rules and regulations enacted from time to time by the Landlord for the proper use and management of the parking lot, subject to the Tenant's rights under this Lease, which rules and regulations shall be deemed to be incorporated into and form part of this Lease.

The Landlord shall in no event be responsible for any loss or theft of, or damage to the passenger vehicles nor for any property left at the parking lot; the use of the parking lot being at all times at the risks of the respective owner of the passenger vehicles.

**ARTICLE 5 - RENT**

**5.1** **Basic Rent** 

Tenant hereby agrees and covenants to pay to Landlord, throughout the Initial Term, without abatement, set-off, deduction or compensation, in lawful money of Canada, the following annual basic rent with respect to the Premises, which shall be payable in equal consecutive monthly instalments, in advance on the first day of each calendar month of each Lease Year (the "**Basic Rent**"), as follows, subject to the final measurement of the Premises:

---

| | | | |
|:---|:---|:---|:---|
| Periods | Rate per square foot of <br> rentable area | Annual Basic Rent | Monthly payments |
| Sept. 1, 2020 to <br>Nov. 15, 2020 | $0.00 | $0.00 | $0.00 |
| Nov. 16, 2020 to <br>Feb. 15, 2021 | $2.50 | $161605.00 | $13467.08 |
| Feb. 16, 2021 to <br>May 31<sup>st</sup>, 2021 | $3.25 | $210086.50 | $17507.21 |
| June 1<sup>st</sup>, 2021 to <br> May 31, 2022 | $5.49 | $354884.58 | $29573.72 |
| June 1, 2022 to <br>May 31, 2023 | $5.65 | $365227.30 | $30435.61 |
| June 1, 2023 to <br>May 31, 2024 | $5.82 | $376216.44 | $31351.37 |
| June 1, 2024 to <br>May 31, 2025 | $6.00 | $387852.00 | $32321.00 |
| June 1, 2025 to <br>May 31, 2026 | $6.15 | $397548.30 | $33129.03 |
| June 1, 2026 to <br>May 31, 2027 | $6.30 | $407244.60 | $33937.05 |
| June 1, 2027 to <br>May 31, 2028 | $6.46 | $417587.32 | $34798.94 |
| June 1, 2028 to <br>May 31, 2029 | $6.62 | $427930.04 | $35660.84 |

---

---

| | | | |
|:---|:---|:---|:---|
| Periods | Rate per square foot of<br> rentable area | Annual Basic Rent | Monthly payments |
| June 1, 2029 to <br>May 31, 2030 | $6.79 | $438919.18 | $36576.60 |
| June 1, 2030 to <br>May 31, 2031 | $6.96 | $449908.32 | $37492.36 |
| June 1, 2031 to <br>May 31, 2032 | $7.13 | $460897.46 | $38408.12 |
| June 1, 2032 to <br>May 31, 2033 | $7.31 | $472533.02 | $39377.75 |
| June 1, 2033 to <br>May 31, 2034 | $7.49 | $484168.58 | $40347.38 |
| June 1, 2034 to <br>May 31, 2035 | $7.68 | $496450.56 | $41370.88 |
| June 1, 2035 to <br>May 31, 2036 | $7.87 | $508732.54 | $42394.38 |

---

 

**5.2** **Additional Rent** 

In addition to the Basic Rent, the Tenant shall pay to Landlord the Additional Rent with respect to the Premises, which is payable in equal consecutive monthly instalments, in advance on the first day of each calendar month of each Lease Year, without set-off, compensation, abatement or deduction whatsoever. The Additional Rent shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Tenant's Proportionate Share of the Operating Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Tenant's Proportionate Share of the Real Estate Taxes;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An administration fee of 15% of the Tenant's Proportionate
Share of Operating Costs.

The Landlord shall remit to the Tenant, at least sixty (60) days before each Lease Year, the estimated amount of the Tenant's Proportionate Share of the Operating Costs and Real Estate Taxes for that period, and the monthly payments of Additional Rent shall then be established for said Lease Year based on that estimate.

Within 120 days after the end of each Lease Year, the Landlord shall remit to the Tenant a statement, along with the supporting documents, indicating the actual amounts of the Operating Costs and Real Estate Taxes, for the said Lease Year. Should the actual amount of Tenant's Proportionate Share of such Operating Costs and/or Real Estate Taxes indicated in the Landlord's statement and supporting documents be greater than the total of the amounts already paid by the Tenant to the Landlord, then the Tenant shall reimburse any amount to the Landlord within thirty (30) days following the delivery of the above-mentioned statement. Should the actual amount of Tenant's Proportionate Share of such Operating Costs and/or Real Estate Taxes indicated in the Landlord's statement be less than the total of the amounts already paid by the Tenant to the Landlord, then such amount overpaid shall be credited by the Landlord on the next monthly payment of Rent. The Landlord's statement shall be conclusive as to the amount of these costs for the period covered, subject to the following. If the Tenant raises any objection with respect to the Operating Costs (an "**Objection**"), such Objection must be transmitted to the Landlord in writing within thirty (30) days following receipt by the Tenant of the statement (the "**Objection Notice**"). The Landlord shall have thirty (30) days to respond to the Objection. If the Landlord fails to respond within such delay or responds but does not agree with the Objection, the Tenant, at its cost, shall have the right to submit the Objection notified to the Landlord in the aforementioned delay and manner to be resolved by an independent third party accounting firm appointed by both Landlord and Tenant within a reasonable time period and its decision shall be final and binding. The cost of such third party accounting firm shall be shared equally between the Landlord and Tenant.

For information purposes, the estimated Additional Rent for year 2020 is $3.50/sq. ft. per annum.

The Additional Rent shall also include the following amounts which shall be payable by the Tenant to the Landlord on demand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the cost of any additional services provided by Landlord at
Tenant's request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any other costs, fees or amounts payable to Landlord by Tenant
pursuant to this Lease.

Notwithstanding the foregoing, the Tenant shall not pay any Additional Rent until February 16, 2021.

**5.3** **Interest and Payment** 

Unpaid amounts due under this Lease, as rent or otherwise, bear interest, compounded monthly, at the Prime Rate, increased by five percent (5%).

**5.4** **Place of Payment** 

All Rent shall be paid when due at the principal place of business in Canada of Landlord or at such other place in Canada as Landlord may from time to time designate without demand or other formality.

Notwithstanding the foregoing, the Tenant shall pay all Rent by way of electronic funds transfer into such bank account as designated by the Landlord to the Tenant, from time to time.

**5.5** **Sales Taxes** 

Tenant shall pay to Landlord all goods and services taxes and Quebec sales tax, imposed on Rent by any competent authority **("Sales Taxes").** Such Sales Taxes shall be payable by Tenant at the same time as the amounts for which such taxes are imposed are payable to Landlord under this Lease. All invoices to be provided by the Landlord to the Tenant shall indicate the Landlord's G.S.T. and/or Q.S.T.

**5.6** **Accrual of Annual Basic Rent** 

Annual Basic Rent shall be considered as accruing day to day hereunder from the Commencement Date of this Lease. If it is necessary for any reason to re-calculate such annual Basic Rent for an irregular period during the relevant Lease year, an appropriate apportionment and adjustment shall be made on a *per diem* basis based upon a 365 day calendar year.

**5.7** **Prepaid Rent** 

Intentionally deleted.

**ARTICLE 6 - LETTER OF CREDIT**

At the latest five business (5) days following the execution of this Lease by both parties, the Tenant shall give to the Landlord an irrevocable letter of credit issued by a Canadian chartered bank or the Desjardins Group in favor of the Landlord (the "**Letter of Credit**"), as security for the fulfilment of Tenant's obligation under the Lease.

The Letter of Credit shall be in the amount of TWO HUNDRED THOUSAND DOLLARS ($200,000.00) for an initial term of twelve (12) months renewed annually (for the amount set out below) up until the end of the Term of the Lease.

At the end of Letter of Credit's initial term of twelve (12) months, the amount of the Letter of Credit will be reduced to ONE HUNDRED TEN THOUSAND DOLLARS ($110,000.00) and shall remain same for each annual renewal up until the end of the Initial Term of the Lease.

Should the Tenant be in default under the Lease, the Landlord shall have the right to draw on the Letter of Credit to recover the cost resulting from the Tenant's default. The Tenant shall then be responsible to top up the Letter of Credit to an amount equal to one hundred twenty-five percent (125%) of the amount drawn on by the Landlord within fifteen (15) days of receiving a notice from the Landlord to this effect, the whole without prejudice to such other rights, remedies and recourses as available to Landlord in the circumstances.

The furnishing of the Letter of Credit will not relieve the Tenant from the payment of Rent, or any other charges for which the Tenant is liable under or in virtue of the Lease or in any way relieve the Tenant from the faithful and punctual performance of all covenants and conditions contained in or entered into in virtue of the Lease.

If, in accordance with Article 13, the Lease is subleased or assigned, the Landlord shall be entitled to demand that the Letter of Credit be replaced by a new letter of credit which shall have to be provided by the assignee or sublessee free of charge to the Landlord at the latest on the effective date of the sublease or assignment, as the case may be. Upon receipt by the Landlord of the new letter of credit, the Letter of Credit shall become null and void and shall be immediately returned by the Landlord to the Tenant.

The Letter of Credit shall be held by the Landlord without liability for interest.

Fifteen (15) days following the expiry of the Initial Term of the Lease, and where (a) the Lease is renewed pursuant to Section 3.3, then the Letter of Credit shall be returned to the Tenant, or (b) the Lease is not renewed and expires on the Expiry Date, then the Letter of Credit shall be returned to the Tenant provided the Premises have been vacated in good order and condition, subject to the Landlord's obligations under this Lease, and provided the Tenant shall have complied in all respects with all terms, covenants and conditions herein contained at the satisfaction of the Landlord, acting reasonably.

Such Letter of Credit shall not be governed by the provisions of Article 2280 and following of the Civil Code of Quebec and shall not be construed as being the property of the Tenant.

In the event of bankruptcy, insolvency or liquidation of the Tenant, the Landlord shall immediately have the right to confiscate the amount of the Letter of Credit as owner of said amount.

**ARTICLE 7 - TAXES**

7.1 Real Estate Taxes

During the Term of this Lease, Tenant is responsible for payment of its Proportionate Share of Real Estate Taxes assessed against the Property.

7.2 Business Taxes

Tenant shall pay directly to the applicable authorities, to the exoneration of Landlord, as and when due all its own personal business taxes, if any. Tenant shall provide to Landlord, upon request, reasonable evidence demonstrating its payment of such business taxes.

**ARTICLE 8 - UTILITIES**

8.1 Payment of Public Utilities

The Tenant shall pay directly to the relevant authorities for public utilities consumed on the Premises. With respect to electricity more specifically, the Landlord shall provide to the Premises electricity to a minimum of the higher of (i) eighty percent (80%) of the existing electrical capacity for the Building, and distributed by the Landlord, but excluding in the server rooms for which such distribution shall be done by Tenant, or (ii) the electrical capacity of the Building as increased by the Tenant in accordance with the following sentence. The Tenant shall have the right, at its cost, to increase the electrical capacity of the Premises, and Landlord shall cooperate with the Tenant to that effect. The Tenant shall have exclusive access (along with the Landlord) at all times during the Term, to the electrical room, which shall be located in the Premises. Tenant shall pay for the consumption of the electricity and heat serving the Premises as of the earlier of (a) the Commencement Date, and (b) the Early Occupancy Date.

The Landlord hereby declares that the Premises have its own separate meters.

8.2 Payment of Other Costs

Without limiting the generality of the other provisions herein, including without limitation Section 2.1, but for greater clarity, the Tenant shall pay directly to the relevant authorities for all telephone charges, cleaning cost for the Premises and other utilities consumed in the Premises.

 

**ARTICLE 9 - MAINTENANCE AND REPAIRS**

**9.1** **Tenant's Maintenance and Repairs** 

Notwithstanding any contrary provision of Law including, without limitation, Articles 1854 and 1864 of the Civil Code of Quebec, the Tenant shall maintain and keep the Premises, including all replacements, alterations, additions and improvements thereto, and including, as the case may be, the loading docks, garage doors and dock levelers, all in good order and condition and shall perform or cause to be performed all repairs and replacements which may from time to time be required therein or thereto, including those required for the Premises to comply with Laws, excluding only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) maintenance, repairs and replacement to the Structure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintenance, repairs and replacement to the HVAC System.

Without limiting the Tenant's obligations provided in the first paragraph of this Section 9.1 but subject to the Landlord's Work in Schedule "B", the Tenant, at its cost, shall be responsible for all necessary repairs or replacements of all systems and components servicing the Premises and located in and forming part of the Premises, including, without limitation, lighting and electrical systems, plumbing components and systems, sprinkler systems or water main or plumbing lines, chemical extinguishers and emergency lights, downpipes, drains and electrical, plumbing, gas, sewer and other utilities systems and equipment servicing the Premises and located within and forming part of Premises, excluding, without limitation, any underground component or any repairs or replacements requiring piercing the cement slab.

The Tenant, at its sole cost and expense, shall also be responsible for the garbage removal for the Premises, and the shoveling of snow around the immediate areas surrounding the Premises' entrances, exits, stairs and doorways.

**9.2** **Maintenance, Repairs and Replacements by Landlord** 

Except to the extent that Tenant shall be required to do so under the provisions of Section 9.1, Landlord shall keep and maintain the Property, including the Premises, in good order and condition and shall make all needed repairs and replacement thereto, of any sort whatsoever, with diligence as a prudent owner of a similar Property would. These repairs and replacements shall include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) repairs and replacements to the foundations, structural floors,
exterior walls and windows, roof, exterior and interior structural elements, columns, bearing walls, systems of the Building and parking
lot;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) repairs and replacements to the Building rendered necessary
by virtue of faulty construction or deficient materials or workmanship as well as repairs and replacements covered under any warranties
held by the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) repairs and replacements to the HVAC System;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the maintenance and repairs to access roads, roadways, parking
spaces and sidewalks within the perimeter of the Property, ensure that the roadway is clean and free of obstructions, debris or waste,
ice and snow; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all necessary repairs or replacements of all systems and components
servicing the Property which are not located in or forming part of the Premises, including, without limitation, lighting and electrical
systems, plumbing components and systems, sprinkler systems or water main or plumbing lines, chemical extinguishers and emergency lights,
downpipes, drains and electrical, plumbing, gas, sewer and other utilities systems and equipment serving the Property which are not located
or forming part of Premises, such as any underground component or any repairs or replacements requiring piercing the cement slab.

the cost of all of which shall form part of the Operating Costs in accordance with the provisions of Section 1.1(j), unless otherwise excluded therefrom pursuant thereto.

**9.3** **Alterations by Tenant** 

All the repairs, replacements, modifications, alterations, and leasehold improvements to the Premises, including the installation of any special equipment that may be required by the Tenant to operate the Premises for the Permitted Use (collectively the "**Alterations**") shall be performed by the Tenant, at its cost.

The Alterations shall also include any modification, alteration, and improvements to any part of the Structure or of the Building's base building systems, whether or not located within the Premises, if such Alterations are required to have the Premises fit for the Permitted Use.

Tenant shall not make any Alterations without first obtaining Landlord's prior written approval which may not be unreasonably withheld. Tenant shall not be required to obtain Landlord's prior written approval for any minor decorations to the Premises, such as painting, wallpaper and carpeting.

If Alterations affect the Structure or any of the Building's base building systems located within the Premises, including without limitation, the HVAC System or the electrical, mechanical and plumbing systems, Landlord, acting reasonably, will have the right, at its own discretion, to perform such work instead of Tenant, at Tenant's cost, plus an administration fee of fifteen percent (15%) over all such costs, subject to costs being reasonably at market prices.

Prior to commencing any work, Tenant will submit to Landlord:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) details of the proposed Alterations including drawings and
specifications and when required by Landlord, acting reasonably, any architectural, electrical and mechanical construction plans and
specifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any indemnification or security against legal hypothecs, costs,
damages and expenses Landlord reasonably requires; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) evidence that Tenant has obtained the necessary consents,
permits, licences and inspections from all governmental authorities having jurisdiction.

Moreover, the Tenant shall provide the Landlord with the identity of the persons or firms that will be performing the work and with such evidence of insurance as the Landlord may require. The Landlord shall have the right, acting reasonably, to require the Tenant to make changes to the plans proposed by the Tenant. For any work affecting the Building's Structure or systems, the Landlord shall have the right, acting reasonably, to oblige the Tenant to retain the services of other contractors in order to have the work performed, provided their pricing is commercially reasonable. All persons and firms performing work in the Premises with regards to electrical, mechanical and plumbing work shall be certified professionals or shall employ only certified professionals.

Alterations shall be performed (i) with due diligence and dispatch; (ii) in a good and workmanlike manner by competent workmen; (iii) in compliance with all applicable Laws and with the requirements of any governmental or municipal authority having jurisdiction; (iv) in accordance with the drawings and specifications approved by Landlord; and (v) to equal or exceed the then current standard for the Building.

Notwithstanding any provision in this Lease, and without limiting the Tenant's liability, any repairs or replacements to any part of the Property (excluding the Premises) necessitated by damages caused by the fault of the Tenant or of the Tenant's clients, representatives, agents, employees, contractors, subcontractors or persons to whom Tenant permits access to the Property of for whom the Tenant is at Law responsible, shall be the Tenant's responsibility, and if executed by the Landlord (where the damage pertains to any part of the Property that is not part of the Premises or that is part of the Building's structure of systems located within the Premises or where the Tenant fails to perform them in a timely manner), all reasonable costs so incurred shall be payable by the Tenant to the Landlord upon demand, plus an administration fee of fifteen percent (15%) over such costs.

The Tenant acknowledges that all work performed by it shall be for its own benefit and not for the benefit of the Landlord. Under no circumstances shall the Tenant be considered to be performing the work on behalf of the Landlord, including as the mandatary or contractor of the Landlord. All Alterations, when completed, will form part of the Premises, become the property of the Landlord as of their completion, without compensation being due to the Tenant therefor.

Upon expiration or sooner termination of the Lease, the Tenant shall remove all Alterations and deliver the Premises in the same condition as that in which they were delivered at the beginning of the Initial Term unless the Landlord shall give written notice to the Tenant that any or part of the Alterations shall remain on the Premises. Tenant shall, at its sole cost and expense, repair any damage caused by such removal.

**9.4** **Tenant's Allowance** 

As a contribution to the costs of Alterations, provided the Tenant is not then in default, the Landlord shall grant to the Tenant an allowance of FIVE DOLLARS (5.00$) per sq. ft. of the rentable area of the Premises, plus applicable taxes (the "**Tenant's Allowance**"), subject to the conditions set out below.

Provided the Tenant is not then in default to perform any of its obligations set forth in this Lease, the Tenant's Allowance shall be entirely paid to the Tenant within thirty (30) days following the date all of the following has been completed or performed: (i) the present Lease has been executed; (ii) Landlord has received all copies of third party invoices pertaining to the Alterations completed by Tenant at the Premises; (iii) all amounts due to any person having worked or contributed to the Alterations have been fully paid; (iv) all Alterations have been executed in accordance with the plans and specifications approved in advance by the Landlord and the Law; (v) the delays to register a legal hypothec pertaining to the Alterations have expired and, if a legal hypothec has been filed, such legal hypothec has been discharged by the Tenant; (vi) the Tenant has provided the Landlord with up-to-date valid certificates from the *Commission des normes, de l'équité, de la santé et de la sécurité du travail* for each and every contractor and sub-contractor who participated to the Alterations that each such contractor and sub-contractor has complied with all requirements provided by the *Occupational Health and Safety Act* and the *Act Respecting Industrial Accidents and Occupational Diseases* and is a duly registered member in good standing at the date of the certificate; (vii) the Tenant has submitted to Landlord for any disbursement of the Tenant's Allowance, an invoice addressed to the attention of any entity determined by Landlord at its sole discretion, which invoice shall contain the detail of the amount of the Tenant's Allowance requested from the Landlord, as well as Tenant's Q.S.T/G.S.T. numbers; and (viii) the Tenant has delivered to Landlord a statutory declaration of an officer of the contractor that has performed the Alterations certifying 1) that such Alterations have been "completed" in conformity with the provisions of the *Civil code of Quebec* or pursuant to any other applicable legislation in the province of Quebec; and 2) the veracity of the subsections (iii) to and including (v) hereinbefore mentioned.

All Landlord recoveries identified in this Lease and all charges for work performed by Landlord on Tenant's behalf will be deducted from the gross amount of the Tenant's Allowance prior to its payment by Landlord and if Landlord's recoveries and charges are in excess of the Tenant's Allowance, Tenant will be invoiced directly for the difference.

Despite anything to the contrary in this Lease, or under any Law, if Tenant takes the benefit of any Law for the protection of insolvent debtors, then an amount equal to the then unamortized part of the Tenant's Allowance (over an amortization period equal to the length of the Initial Term) on the day before the date Tenant files for such protection, plus applicable sales taxes, shall immediately be due and payable by Tenant to Landlord as Additional Rent as of such date.

9.5 Inspection

Landlord and its authorized representatives shall, after having given to Tenant a twenty-four hours prior written notice, except in the case of an emergency where no notice is required, have the right to visit and inspect the Premises during usual business hours.

9.6 Landlord's Right to Carry Out Tenant's Repairs

In the event Tenant fails to comply with the obligations set forth in Section 9.1, and despite anything to the contrary contained in this Section, the Landlord shall have the right to carry out the Tenant's repairs after giving written notice of five (5) business days to the Tenant to this effect. All costs incurred by the Landlord in so doing, together with an administration of fifteen percent (15%) over such costs, shall be payable by the Tenant to Landlord as Additional Rent on demand.

Notwithstanding the foregoing, in the event any work or action is urgently required Landlord may proceed with such reasonable steps as in its discretion are deemed by it to be necessary for the protection and preservation of the Premises or the Building without any prior written notice.

9.7 Modifications to the Property

Subject to the Landlord's obligations under the second paragraph of Section 9.8, none of the provisions of this Lease or the Law shall be interpreted as imposing a restriction on the Landlord's right to modify the Property, excluding the Premises or the Parking Spaces, in any manner whatsoever, including by building or removing structures or premises or by changing the use of the Property (in all cases excluding, for clarity, the Parking Spaces and Premises, whose use and location shall not be affected), its appearance, the activities carried on, or any other characteristic of the Property (excluding in all cases, the Premises and the Parking Spaces).

9.8 Consequence of Entry or of Modifications by the Landlord

For clarity and subject to the provisions of this Lease, no entry by the Landlord to inspect or perform work in the Premises and no modifications to the Property, in each case to the extent same is done in accordance with this Lease, shall be construed as an eviction, a default by the Landlord to provide peaceable enjoyment of the Premises by the Tenant nor shall it be deemed to constitute a change of form or destination nor shall it affect the validity of the Lease in any way; the Tenant hereby waiving its rights and recourses against the Landlord in that regard.

Should Landlord make any changes to the Property pursuant to Sections 9.2, 9.6 or 9.7 or perform any work in the Premises as may be required for Landlord to fulfill its obligations under this Lease or the Law, such changes or work shall not constitute an eviction, actual or presumed, nor a failure from Landlord to fulfill its obligation to provide peaceable enjoyment, nor shall it constitute a change of form or destination, and will not affect the validity of the Lease in any manner whatsoever, Tenant hereby waiving any right it may have pursuant to these changes or the performance of such work, and waiving any right it may have to claim for damages or for a reduction of Rent to the full extent permitted by law, provided the Landlord acts reasonably, diligently and promptly to complete such changes or work and in a manner to least interfere with the Tenant's operations in the Premises and use of Parking Spaces as is commercially reasonable for the Landlord to do so.

**ARTICLE 10 - ENVIRONMENT**

The Landlord declares that to the best of its knowledge as at the date hereof, the asbestos affecting the Property was either removed and for such portions not accessible, properly encapsulated, the whole as required by applicable environmental legislation. The Landlord has remitted to the Tenant copy of the conformity letter dated April 30, 2019, by Eric Fortier from ING Inc. confirming the treatment of the asbestos (the "**Conformity Letter**"). However, the Tenant recognizes that copy of this Conformity Letter is remitted to the Tenant without the Landlord making any representations nor offering any guarantee whatsoever as to the exactitude of the Conformity Letter.

The Landlord declares that to the best of its knowledge as at the date hereof, the Property is free from any asbestos not treated as per the requirements of applicable environmental legislation or any other contaminants and hazardous substances and materials (collectively: the "**Existing Contamination**").

Notwithstanding any provision in this Lease, including Section 2.2, in the event that any Existing Contamination is found during the Term (including without limitation asbestos), Landlord agrees to promptly remove or otherwise handle, at its cost, any such Existing Contamination to the extent required by the applicable Laws, but the Landlord shall not be liable for any damages this may cause to the Tenant other than the costs recoverable pursuant to this Section 10. For clarity, the Landlord's obligation to remove or otherwise handle any Existing Contamination, includes the obligation to reimburse the Tenant for any increase in construction costs incurred by the Tenant due to the performance of any work under asbestos conditions, including notably the performance of the initial leasehold improvements, provided such costs are reasonably at market prices.

Also, for the purposes of not disturbing the Tenant's operations within the Premises, should the Landlord fail to abide by its covenant in the foregoing sentence, the Tenant shall have the right, after giving Landlord a fifteen (15) day prior written notice, to cause the removal or handling of any such Existing Contamination and recover the reasonable costs thereof from the Landlord (including through deduction from the Rent payments).

The Tenant shall not use hazardous materials or allow them to be used in connection with its activities, except in strict compliance with all applicable environmental laws and, in such a case, it agrees to take the appropriate steps respecting the acquisition, handling, storage, use and disposal thereof.

The Tenant agrees that the emission, transportation, deposit, dispersion, release or disposal by it of any hazardous material or waste (including waste water and oil) into the ground, atmosphere, water or above water, shall comply with all applicable environmental laws and where applicable, it agrees to obtain all necessary authorizations in such regard from the relevant authorities and, where required, to file the necessary declarations with the relevant authorities.

The Tenant shall notify the Landlord without delay of any discharge or presence inside or outside the Premises of any pollutant, contaminant or other hazardous materials, as defined by the environmental laws.

Without limiting the generality of the foregoing, the Tenant shall be liable for any damage or loss of any kind whatsoever to the Premises and to the Property as a result of the violation of the applicable environmental laws by the Tenant or the Tenant's clients, representatives, agents, employees, contractors, subcontractors or persons for whom the Tenant is at Law responsible.

**ARTICLE 11 - INSURANCE**

11.1 Landlord's Insurance

Landlord shall at all times during the Term, have and maintain in full force and effect, all fire and other risk insurance on the Building, liability and boiler insurance and all other insurances against such occurrences and in such amounts and on terms and conditions as would a prudent owner of a building similar to the Building.

11.2 Tenant's Insurance

Tenant shall take out and keep in full force and effect in the name of Tenant, Landlord and Landlord's hypothecary creditors, as their respective interests may appear, the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all risks insurance upon property owned by Tenant and located on the Premises,
including inventory, furniture, furnishings and any alteration or addition to the Building installed by Tenant, for the full replacement
cost thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Comprehensive or Commercial General Liability insurance with respect to the Premises,
with inclusive limits of not less than FIVE MILLION DOLLARS ($5,000,000) for bodily injury (including death) to any one or more persons
or property damage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such other forms of insurance as Landlord or Landlord's hypothecary creditors,
in both cases acting reasonably, may consider advisable.

All Tenant's insurance policies shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contain a waiver of any subrogation rights which Tenant's insurer may have against
the Landlord, except in case of fault or negligence by the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) name the Landlord as additional insured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) contain a provision where the Landlord will be notified in writing by the incumbent
insurers or insurance brokers of any cancellation of the insurance policies at least thirty (30) days before such cancellation becomes
effective.

11.3 Proof of Tenant's Insurance

Tenant shall deliver to Landlord upon demand and in any event before occupancy of the Premises by the Tenant certificates from Tenant's insurers confirming that the insurance referred to in Section 11.2 has been placed.

**ARTICLE 12 - DAMAGE, DESTRUCTION AND EXPROPRIATION**

12.1 Damage and Destruction

If the Building and/or the Premises shall at any time during the Term be totally or partially destroyed or damaged to the extent that the Premises are inaccessible or unusable by the Tenant for the Permitted Use, the Landlord shall notify the other party, within thirty (30) days of the occurrence that, in the reasonable opinion of the Landlord's architect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such damage may not be repaired within one hundred and eighty (180) days of the occurrence thereof,
 in which case either Landlord or Tenant shall be entitled to terminate this Lease by giving to the other party a notice to this
 effect within ten (10) days of the receipt of such opinion; in the event this Lease is not terminated, Landlord shall promptly and diligently carry out such repairs,
excluding the Alterations which shall be performed by the Tenant at the Tenant's cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such damage may be repaired within one hundred and eighty (180) days of the occurrence
thereof, in which case Landlord shall promptly and diligently carry out such repairs.

Whenever Landlord has to carry out repairs in accordance with this Section, the Rent shall be suspended from the date of the occurrence until the Tenant can access and use the Premises for the Permitted Use, in the proportion that the unusable portion of the Premises bears to the total rentable area of the Premises.

Notwithstanding the foregoing, if, as of the date of the occurrence, there are one hundred and eighty (180) days or less remaining to the Term, Landlord shall not be obligated to repair the damage and Tenant shall be entitled to immediately terminate the Lease by giving Landlord a written notice to that effect.

**12.2** **Payment of Rent** 

If Landlord shall be required to repair the Building and/or the Premises in accordance with the provisions of Section 12.1 then the Rent shall be suspended from the date of the occurrence until the date of completion of such repairs in the proportion that the area of the Premises so destroyed or damaged bears to the total area of the Premises.

**12.3** **Expropriation** 

If at any time during the Term any portion of the Property shall be acquired or expropriated, or if access to the Building or any part thereof shall, in the reasonable opinion of the Landlord, be materially affected by any such acquisition or expropriation, then in any of such events, Landlord shall have the option to terminate this Lease as of the date of the acquisition or expropriation by delivering to the Tenant a notice to this effect. If Landlord shall elect to so terminate the Lease, the Tenant shall pay to the Landlord all the Rent accrued to such date.

**ARTICLE 13 - ASSIGNMENT AND SUBLEASE**

The Tenant shall not assign or transfer its rights hereunder, nor sublease or permit the occupancy by any other party of any portion of the Premises during the Term, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld.

For the purposes hereof, (i) a "Transfer" means any of the following: the assignment or transfer of the Lease or the rights in the Lease; the sublease or occupancy of the Premises or any portion thereof, and any change in the control of the Tenant by way of corporate reorganization or sale of its shares, and (ii) a "Transferee" means an assignee, transferee, sublessee or any third party person occupying the Premises.

The Landlord's refusal to grant the Tenant the prior written consent will be considered reasonable (and this does not restrict in any way the right of refusal for any other reason) including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the Tenant is in default under the Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the proposed Transferee does not meet the Landlord's commercially reasonable
requirements with regards to its financial status, reputation and its business experience or the type or quality of the business it wants
to conduct in the Premises.

The Tenant shall deliver to the Landlord, no less than thirty (30) days prior to the date of the proposed Transfer, the name and address of the proposed Transferee, as well as information on the nature of its business, its credit references, all the modalities and conditions of the proposed Transfer as well as any other information the Landlord may reasonably require to take its decision.

Any consent by the Landlord shall be subject to the Tenant and the Transferee executing, prior to the Transfer being made, an agreement with the Landlord agreeing that the Transferee, from and after the effective date of the Transfer; (i) shall be bound by all the terms of this Lease, and (ii) shall renounce to its rights under 1876 of the Civil Code of Quebec.

In the event the Tenant receives directly or indirectly, in virtue of a Transfer, a rent, in the form of money, goods, services or otherwise, the value of which is higher than the aggregate of the Basic Rent and the Additional Rent payable to the Landlord under the Lease for the Premises (or for the portion transferred), the Tenant shall pay the excess amount of rent to the Landlord, as Additional Rent, upon receipt of such rents.

The Landlord may, at any time during the Term, elect to receive directly from the Transferee all sums due and payable by the Transferee to the Tenant pursuant to the Transfer (the "**Landlord's Right to Elect**"). Upon receipt of a notice from the Landlord to the effect that the Landlord exercises the Landlord's Right to Elect, the Transferee shall thereafter pay all sums due and payable by the Transferee to the Tenant directly to the Landlord on the terms and conditions set forth in the Lease or as otherwise determined by the Landlord in the notice. The amounts so paid by the Transferee and actually received by the Landlord shall be credited against the Tenant's monetary obligations under this Lease.

In the event of a Transfer, the Tenant shall remain solidarily liable with the assignee or sublessee with respect to all Tenant's obligations under the Lease, until expiry of the then current Term, excluding for clarity any extension of the Term through any renewals by the Transferee.

**ARTICLE 14 - RIGHT OF FIRST OFFER**

Intentionally deleted.

**ARTICLE 15 - NON-LIABILITY AND INDEMNITY**

The Landlord shall not be liable to the Tenant, the Tenant's agents, representatives, employees, directors and officers, customers or guests for any damage or loss occurring for any reason in the Premises or in the Building as a result of any act or omission of any kind whatsoever and by anybody, save and except if the damage or loss results from the default under this Lease by (to the extent as provided in the Lease), or the fault or the negligence of the Landlord, its agents, employees, representatives or any other person for which the Landlord is legally responsible. More particularly, but without limitation, the Landlord shall not be so liable for any damages or losses to the assets of the Tenant or of any other person located in the Premises or in the Building, again save and except if the damage or loss results from the default under this Lease by (to the extent as provided in the Lease), or the fault or the negligence of the Landlord, its agents, employees, representatives or any other person for which the Landlord is legally responsible (which shall not include, for greater certainty, any third party contractors hired by the Landlord).

The Tenant will indemnify the Landlord and its agents and employees against any claim, action, proceeding, liability, loss, damage, and expense, including reasonable attorney's fees, directly arising from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach, violation, or non-performance of any covenant, condition or agreement
in this Lease to be fulfilled, kept, observed or performed by the Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any environmental contamination at or from the Property occurring during the Term
caused solely by the use or occupation of the Premises by the Tenant or by persons the Tenant gives access to, including without limitation,
the Tenant's clients, representatives, agents, employees, contractors, subcontractors or persons for whom the Tenant is at Law responsible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any injury to person or persons, including death resulting at any time therefrom,
occurring in or about the Premises as a result of the exercise of rights in respect thereof under this Lease by the Tenant or the Tenant's
clients, representatives, agents, employees, contractors, subcontractors or persons for whom the Tenant is at Law responsible; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any damage to or loss of property caused by the default under
this Lease by, or the fault or the negligence of the Tenant or the Tenant's clients, representatives, agents, employees, contractors,
subcontractors or persons for whom the Tenant is at Law responsible.

however, no provision of this Lease will require the Tenant to indemnify the Landlord, its agents or employees against any actions, causes of action, suits, damages, loss, costs, claims, or demands arising out of the fault or negligence of the Landlord, its agents, or employees.

This Article 15 shall survive the expiration of the Term of this Lease.

**ARTICLE 16 - DEFAULT**

16.1 Event of Default

An "**Event of Default**" shall be considered to have occurred when any one or more of the following happens:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (Intentionally deleted);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant fails to pay any Rent when it is due and such failure continues for ten
(10) days after Tenant received a notice from Landlord to the Tenant specifying the failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant fails to provide and maintain the Letter of Credit in accordance with the
terms and conditions set forth in Article 6;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tenant fails to observe or perform any other of the terms, covenants, conditions or agreements
 contained in this Lease and such failure continues for twenty (20) days after Tenant received notice from the Landlord to the Tenant
 specifying the failure (except as set out in paragraphs a), c) and e) to m) of this Section 16.1, where no notice is required);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) this Lease or any of Tenant's assets, movable or equipment are taken or seized
by any creditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a writ of seizure or execution is issued against the goods, assets or equipment of Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Tenant makes a sale in bulk of all or a substantial portion of its assets or a sale
of its shares other than in a transfer approved by Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Premises are used or occupied for purposes other than the Permitted Use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Premises are used by any person other than those persons entitled to use them
under this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Tenant makes an assignment for the benefit of creditors or
commits any act of bankruptcy as defined in the *Bankruptcy and Insolvency Act* (Canada) or any successor of it, or becomes bankrupt
or insolvent or takes the benefit of any legislation now or hereafter in force for bankrupt or insolvent debtors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) an order is made for the winding up or liquidation of Tenant,
or Tenant voluntarily commences winding-up procedures for liquidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) an order or appointment is made for a receiver or a receiver
and manager of all of the assets or undertaking of Tenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any insurance policy covering any part of the Property is,
or is threatened to be, cancelled or adversely changed or the premium cost is, or may be, significantly increased as a result of any
act or omission by Tenant or any person for whom Tenant is responsible in law.

**16.2** **Rights of Landlord** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Penalty for Delay

(Intentionally deleted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Right to Resiliate

In case of an Event of Default, the Landlord shall have the right to resiliate the Lease (the "**Right to Resiliate**") upon sending a written notice to the Tenant to that effect (the "**Resiliation Notice**"), the whole without prejudice to its other rights and recourses provided in this Lease. The resiliation of the Lease shall take effect ten (10) business days after the Tenant's receipt of the Resiliation Notice, unless the Tenant has cured the Event of Default, prior to the expiration of the ten (10) business day delay, without the necessity of any other notice or judicial process ; the Tenant renouncing to its right to cure the default prior to a judgment being rendered pursuant to Article 1883 of the *Civil code of Quebec.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Right to Cure Tenant's Default

If Tenant shall fail to execute any obligation which it has assumed under this Lease, Landlord shall be entitled, after Tenant has received the notice required to be given under paragraphs 16.1(b) and (d) as the case may be, to fulfill or cause to be fulfilled any or part of the obligations of the Tenant. The Tenant shall pay to the Landlord, upon demand, the amounts expended in accordance with the provisions of this Section, with interest thereon at the Prime Rate plus four percent (4%) per annum calculated from the date of payment of such amounts. The Landlord shall incur no liability whatsoever to the Tenant for damage or loss resulting from the performance of the obligations of the Tenant.

**ARTICLE 17 - SIGNS**

17.1 Tenant may install signs

Tenant shall have the right during the Term to install and display at Tenant's cost signs upon the Premises in conformity with the Law and the Landlords signage policies, with prior written approval of Landlord which may not be unreasonably delayed or withheld.

**ARTICLE 18 - GENERAL PROVISIONS**

18.1 Quiet Enjoyment

Landlord covenants with Tenant that so long as Tenant complies with the terms of this Lease, Tenant may occupy and enjoy the Premises without any interruption from Landlord or other tenants of Landlord.

18.2 Registration

Tenant shall, at its cost, have the right to publish the Lease by notice, the whole in conformity with article 2999.1 of the *Civil Code of Quebec.* Such notice shall not contain any mention of the Rent or other financial conditions contained in the Lease and shall be submitted to Landlord for prior approval. Within thirty (30) days after the end of the Term, Tenant shall cancel at its expense the publication of such notice. In the event Tenant fails to cancel the said publication, Tenant hereby expressly and irrevocably appoints Landlord as attorney for Tenant with full power and authority to cancel such notice and to execute and deliver in the name of Tenant any instruments or certificates required for such purpose, the whole at Tenant's cost.

18.3 Brokerage Commissions

Landlord and Tenant represent and warrant to each other that the only brokerage agency involved in this transaction is CBRE Limited. Landlord shall be responsible for the payment of the brokerage commission of CBRE Limited, to the complete exoneration of the Tenant, and as per the separate agreement made between the Landlord and CBRE Limited. The Tenant shall indemnify and hold the Landlord harmless for any claims for any broker, agent or other representatives other than CBRE Limited hired or retained by the Tenant with regard to the present transaction. The Landlord shall indemnify and hold the Tenant harmless for any claims for any broker, agent or other representatives other than CBRE Limited hired or retained by the Landlord with regard to the present transaction.

18.4 Entire Agreement

This Lease replaces and revokes any and all previous agreements, written or oral, between Landlord and Tenant, and constitutes the entire agreement between Landlord and Tenant as to the matters herein contemplated. This Lease may only be modified by a writing signed by Landlord and Tenant.

18.5 Renunciation

In the case of an Event of Default, once the Landlord has exercised its Right to Resiliate or has instituted legal proceedings to cancel or resiliate, or to ratify the cancellation or resiliation, of the present Lease, than notwithstanding any Law or custom to the contrary, Tenant shall not be able to impede such cancellation or resiliation by correcting its failures once the Lease has been resiliated pursuant to Section 16.2 or once legal proceedings have been instituted and Tenant hereby renounces to the provisions of article 1883 of the Quebec Civil Code.

Tenant also hereby renounces to the rights and benefits it may have pursuant to Articles 1854 (2<sup>nd</sup> paragraph), 1859, 1861, 1863 (2<sup>nd</sup> paragraph), 1867, 1868 (2<sup>nd</sup> paragraph), 1881 and 1883 1881 and 1883 of the Civil Code of Quebec or any successor or replacement legislation.

18.6 Rights Cumulative

The rights and recourses of Landlord hereunder shall be cumulative and not alternative, unless otherwise expressly provided for herein.

18.7 Fortuitous Event

Notwithstanding anything to the contrary contained herein, if either Landlord or Tenant is bona fide delayed or hindered in or prevented from the performance of any term or obligation required hereunder (except the Tenant's obligation of payment of Rent which shall never be excused) by reason of a fortuitous event or force majeure, then performance of such term or obligation shall be excused for the period of the delay and the party in question shall be entitled to perform such term or obligation within the appropriate delay after the expiration of such delay.

18.8 Waiver

The waiver by either Landlord or Tenant of any breach of any term, obligation or condition herein contained shall not be deemed a waiver of such term, obligation or condition or of any subsequent breach of same or of any of the term, obligation or condition herein contained. No term, obligation or condition hereof is deemed to have been waived by the party in whose favour it is stipulated, unless such waiver be in writing.

18.9 Additional Documents

Landlord and Tenant shall upon demand sign and cause to be signed any document, and perform and cause to be performed any act, necessary or useful to give full effect to the intent and terms of this Lease.

18.10 Confidentiality

Both parties agree not to disclose to any person the terms of this Agreement, except to their professional advisors and auditors, if any, who also agree to keep it confidential or except to a government body as required by applicable law or a court of competent jurisdiction. Both parties also agree to maintain any information they may have or come into possession in the utmost of confidence.

18.11 Notices

Any notice, demand, request or other writing which may be or is required to be given under this Lease shall be in writing and may be delivered by email, in person or sent by registered mail, postage prepaid, and shall be addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to Landlord:

266 King Street West, Suite 405

Toronto, Ontario, M5V 1H8

Attention: Paul Hornack

Email: PAULHORNAK@XYZSTORAGE.COM

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to Tenant:

<u>Before the Early Occupancy Date</u>:

20 Deschênes Street

Saint-Quentin, New Brunswick, E8A 1M1

Attention: the Director of Operations

Email: dcb@globo.tech

<u>From the Early Occupancy Date</u>:

At the Premises

Attention: the Director of Operations

Email: dcb@globo.tech

Any such notice, demand, request or writing shall be conclusively deemed to have been given or made on the day upon which such notice, demand, request or writing is delivered or emailed or, if mailed, then on the third business day following the date of mailing, as the case may be. Either party may at any time give notice in writing to the other of any change of address of the party giving such notice and from and after the giving of such notice, the address therein specified shall be deemed to be the address of such party for the giving of notices hereunder.

18.12 Estoppel Certificate

Within ten (10) days following the Landlord's written request thereof, the Tenant shall execute and deliver to the Landlord or to any other person designated by the Landlord an Estoppel Certificate with respect to the Lease and the Premises.

18.13 Governing Law

This Lease shall be governed and construed in accordance with the laws of the Province of Québec.

18.14 Counterparts

This Lease, and any other agreement delivered in connection therewith, and any amendments thereto, may be executed in any number of counterparts with the same effect as if all Parties to this Lease, or to such other agreement or amendment, as the case may be, had signed the same document, and all counterparts will be construed together and constitute one and the same instrument.

18.15 Execution by electronic means

This Lease and any other agreement delivered in connection therewith, and any amendments thereto, may be executed by electronic copy in a portable document format or such similar format and if so executed and transmitted, will be for all purposes as effective as if the Parties had delivered an executed original of this Lease, or such other agreement or amendment, as the case may be, and shall be deemed to be made when the receiving party confirms this Lease, or such agreement or amendment, as the case may be, to the requesting Party by electronic copy in a portable document format or such similar format. A Party sending an electronic copy shall thereafter send or deliver the original document to the receiver of such electronic copy.

18.16 Language

 

The parties hereto acknowledge to have requested that this Lease and all documents related thereto be drafted in English. Les parties aux présentes reconnaissent avoir requis que le présent bail ainsi que tous les documents qui y sont reliés soient rédigés en anglais.

*[The signatures follow on next page.]*

 

 

**SIGNED** at the City of Toronto, Province of Ontario, this 19<sup>th</sup> day of March 2020.

---

| | | | |
|:---|:---|:---|:---|
| | | **BEDFORD STORAGE LIMITED PARTNERSHIP,** represented by **BEDFORD SELF STORAGE CORPORATION,** as Landlord | **BEDFORD STORAGE LIMITED PARTNERSHIP,** represented by **BEDFORD SELF STORAGE CORPORATION,** as Landlord |
| /s/ J.C. DONALD | /s/ J.C. DONALD | /s/ Paul Hornak | /s/ Paul Hornak |
| Witness | J.C. DONALD | Name: | Paul Hornak |
| | | Title: | Vice-President |
| Witness | Witness |  |  |

---

**SIGNED** at the City of Montreal, Province of Quebec, this 16<sup>th</sup> day of March 2020.

---

| | | | |
|:---|:---|:---|:---|
| | | **NWORKS MANAGEMENT CORP .,** as Tenant | **NWORKS MANAGEMENT CORP .,** as Tenant |
| /s/ Arianne Valois | /s/ Arianne Valois | /s/ Anthony Levesque | /s/ Anthony Levesque |
| Witness | Arianne Valois | Name: | Anthony Levesque |
| | | Title: | Director of Operations |
| Witness | Witness |  |  |

---

*[Signature page to Bedford-NWorks* – *Lease]*

 

 

**SCHEDULE "A"**

**Site Plan of the Property**

**SCHEDULE "B"**

**Landlord's Work**

The Landlord shall carry out, at its sole cost and expense, the following work which shall be carried out in accordance with the applicable building codes and good industry practice and which shall be substantially completed no later than the dates set out below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Premises shall be demised with cinder block (minimum 12 feet
high) and according to the applicable requirements of the building code(s) no later than six weeks from the signature hereof by all parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The roof membrane above (i) the Premises and (ii) premises
immediately adjacent thereto shall be redone by no later than May 31, 2020;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Premises shall be demised with a separating wall delimiting
the Premises from the rest of the Building no later than six weeks from the signature hereof by all parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Landlord shall assure that the warehouse floors have been
cleaned no later than six weeks from the signature hereof by all parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Landlord shall provide to the Premises electricity of a minimum
capacity to be eighty percent (80%) of the existing electrical capacity for the Building, the whole no later than six weeks from the
signature hereof by all parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The electrical entrance shall be modified and repaired to
render it code compliant (Hydro copper is line is currently exposed) no later than six weeks from the signature hereof by all parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subject to the above, Landlord shall deliver, on the Commencement
Date, the Premises with all building systems in good working order including roof, mechanical, lighting, electrical, plumbing, HVAC System,
loading docks, levelers, walls, doors and with no cracked windows. Without limiting the generality of the foregoing, the Landlord undertakes
to have the roof replaced in its entirety no later than May 31, 2020 and to render the electrical entrance code compliant by the date
set out for such work further above.

(collectively: the "**Landlord's Work**").

**SCHEDULE "C-1"**

**SIX (6) RESERVED PARKING SPACES**

![](ex10-3_003.jpg)

**SCHEDULE "C-2"**

**TWO (2) RESERVED HANDICAP PARKING SPACES**

![](ex10-3_004.jpg)

**SCHEDULE "C-3"**

**TEN (10) GENERAL PARKING SPACES**

![](ex10-3_005.jpg)

## Exhibit 10.4

**Exhibit 10.4**

**FIRST LEASE AMENDING AGREEMENT**

**DATED AS OF: February 1st, 2021**

---

| | |
|:---|:---|
| **BETWEEN:** | **BEDFORD STORAGE LIMITED PARTNERSHIP**, limited partnership duly constituted under the laws of Ontario, having its head office at 266 King Street West, Suite 405, Toronto, Province of Ontario, M5V 1H8, herein acting and represented by its general partner, Bedford Self Storage Corporation, a corporation duly constituted pursuant to the laws of Ontario, having its head office at 266 King Street West, Suite 405, Toronto, Province of Ontario, M5V 1H8, itself represented by Paul Hornak, its Vice-President, duly authorized as he so declares; |

---

(the "**Landlord**")

---

| | |
|:---|:---|
| **AND:** | **NWORKS MANAGEMENT CORP**., corporation governed by the *Canadian Business Corporations Act*, having its head office at 20 Deschênes Street, Saint-Quentin, Province of New Brunswick, E8A 1M1, herein acting and represented by Anthony Levesque, Director of Operations, duly authorized in virtue of a resolution of the Directors dated ●; |

---

(the "**Tenant**" and, collectively with the Landlord, the "**Parties**")

**PREAMBLE**

**WHEREAS** by a lease (the "**Lease**") signed on March 19, 2020 by the Landlord, and on March 16, 2020 by the Tenant, the Tenant leased from the Landlord certain premises having a rentable area of approximately sixty-four thousand six hundred forty-two (64,642) square feet (the "**Premises**"), located in the building bearing civic number 3195 de Bedford Road, in the City of Montréal (Borough of Côte-des-Neiges – Notre-Dame-de-Grâce), Province of Québec, H3S 1G3 (the "**Building**"), constructed on lot number 2 174 547 of the Cadastre of Québec, Registration Division of Montreal (the "**Land**" and, collectively with the Building, the "**Property**"), for a term of fifteen (15) years and nine (9) months (the "**Term**") commencing on September 1, 2020 and terminating on May 31, 2036;

**WHEREAS** the Parties have agreed to amend Section 5.1 (Base Rent) and Section 6 (Letter of Credit) of the Lease, in accordance with the terms and conditions hereinafter set forth; and

**WHEREAS** the Parties wish to put in writing the terms and conditions of their agreement.

**NOW, THEREFORE**, the Parties agree as follows:

1. INTERPRETATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** This first lease amending agreement shall be referred to as the "**Agreement** ".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** All the terms used herein already defined in the Lease and not defined in the present Agreement shall
have the same meaning as those ascribed respectively to them in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** The preamble and schedules hereto, if any, shall form an integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4** Unless otherwise indicated, all paragraphs of the present Agreement shall take effect retroactively as
of November 15, 2020.

2. BASIC RENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** The second (2<sup>nd</sup>) row of the table inserted under Section 5.1 (Basic Rent) of the Lease is hereby
amended by replacing "Sept. 1, 2020 to Nov. 15, 2020" by "Sept. 1, 2020 to Dec. 31, 2020" and the third (3<sup>rd</sup>)
row of said table is hereby amended by replacing "Nov. 16, 2020 to Feb. 15, 2021" by "Jan. 1, 2021 to Feb. 15, 2021",
as follows:

---

| | | | |
|:---|:---|:---|:---|
| Sept. 1, 2020 to Dec. 31, 2020 | $0.0 | $0.0 | $0.0 |
| Jan. 1, 2021 to Feb. 15, 2021 | $2.5 | $161605.0 | $13467.08 |

---

3. LETTER OF CREDIT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** Notwithstanding any provision of Section 6 (Letter of Credit) of the Lease to the contrary, the Letter
of Credit shall remain in the amount of TWO HUNDRED THOUSAND DOLLARS ($200,000.00) until November 30, 2021; as of December 1, 2021 the
Letter of Credit shall be reduced to the amount of ONE HUNDRED TEN THOUSAND DOLLARS ($110,000.00) and shall remain same for each annual
renewal of the Letter of Credit until the end of the Term of the Lease. All the other terms and conditions of Section 6 (Letter of Credit)
of the Lease shall continue to apply and remain in full force and effect.

4. MISCELLANEOUS PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Lease to Remain in Effect.** This Agreement contains the only amendments made to the Lease, and all
the other terms and conditions set forth in the Lease shall remain unchanged and continue to apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Counterparts and Execution by Electronic Means.** This Agreement may be executed in any number of
counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute only one
and the same instrument. This Agreement may be executed in so-called "pdf" format and each party has the right to rely upon
a pdf counterpart of this Agreement signed by the other party to the same extent as if such party had received an original counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Applicable Law.** This Agreement shall be governed and
interpreted in accordance with the laws in force in the Province of Québec. Only the courts of the Province of Québec shall
have jurisdiction to rule upon any dispute. The Parties agree to elect that legal proceedings shall be heard before the courts of the
judicial district in which the Property is located.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
|  | &nbsp;&nbsp;![](ex10-4_001.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Successors and Assigns.** This Agreement shall be binding upon the Parties hereto as well as their successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Brokerage Commission.** The Tenant represents that it has not retained the services of any agent,
broker or other representatives for the conclusion of this Agreement. The Tenant shall indemnify and hold harmless the Landlord from any
and all claims from any agent, broker or representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Confidentiality.** The Parties shall keep the terms and conditions of this Agreement strictly confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7** **Legal Advice.** The Parties acknowledge that they have respectively received independent legal advice
as regards to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8** **Language.** The Parties hereto acknowledge to have requested that this Agreement and all documents
related thereto be drafted in English. *Les parties aux présentes reconnaissent avoir requis que le présent bail ainsi que tous les documents qui y sont reliés soient rédigés en anglais.* 

 

*[The signatures are on the following page.]*

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
|  | &nbsp;&nbsp;![](ex10-4_001.jpg) |

---

 

**IN VIRTUE WHEREOF**, the Landlord has signed this Agreement in <u> </u>, on the <u> </u> day of February 1st, 2021.

---

| | | |
|:---|:---|:---|
| **BEDFORD STORAGE LIMITED** | **BEDFORD STORAGE LIMITED** | **BEDFORD STORAGE LIMITED** |
| **PARTNERSHIP,** as Landlord | **PARTNERSHIP,** as Landlord | **PARTNERSHIP,** as Landlord |
| Per: | | |
|  | Name: | Paul Hornak |
|  | Title: | Vice-President |

---

**IN VIRTUE WHEREOF**, the Tenant has signed this Agreement in Montreal, on the 1st day of February 1st, 2021.

---

| | | |
|:---|:---|:---|
| **NWORKS MANAGEMENT CORP**., as Tenant | **NWORKS MANAGEMENT CORP**., as Tenant | **NWORKS MANAGEMENT CORP**., as Tenant |
| Per: | /s/ Anthony Levesque | /s/ Anthony Levesque |
|  | Name: | Anthony Levesque |
|  | Title: | Director of Operations |

---

**SECOND LEASE AMENDING AGREEMENT**

**DATED AS OF: March 25<sup>TH</sup>, 2022**

---

| | |
|:---|:---|
| **BETWEEN:** | **BEDFORD STORAGE LIMITED PARTNERSHIP,** limited partnership duly constituted under the laws of Ontario, having its head office at 266 King Street West, Suite 405, Toronto, Province of Ontario, M5V 1H8, herein acting and represented by its general partner, Bedford Self Storage Corporation, a corporation duly constituted pursuant to the laws of Ontario, having its head office at 266 King Street West, Suite 405, Toronto, Province of Ontario, M5V 1H8, itself represented by Paul Hornak, its Vice-President, duly authorized as he so declares; |

---

(the "**Landlord**")

---

| | |
|:---|:---|
| **AND:** | **NWORKS MANAGEMENT CORP.,** corporation governed by the *Canadian Business Corporations Act,* having its head office at 20 Deschenes Street, Saint-Quentin, Province of New Brunswick, EBA 1M1, herein acting and represented by Pierre-Luc Quimper, Chief Executive Officer, duly authorized in virtue of a resolution of the Directors dated April 26, 2022, an extract of which is attached hereto; |

---

(the "**Tenant**" and, collectively with the Landlord, the "**Parties**")

**PREAMBLE**

**WHEREAS** by a lease (the "**Original Lease**") signed on March 19, 2020, by Landlord, and on March 16, 2020, by Tenant, Tenant leased from Landlord certain premises having a rentable area of approximately sixty-four thousand six hundred forty-two (64,642) square feet (the "**Premises**"), located in the building bearing civic number 3195 de Bedford Road, in the City of Montreal (Borough of Cote-des-Neiges - Notre-Dame-de-Grace), Province of Quebec, H3S 1G3 (the "**Building**"), constructed on lot number 2 174 547 of the Cadastre of Quebec, Registration Division of Montreal (the "**Land**" and, collectively with the Building, the "**Property**"), for a term of fifteen (15) years and nine (9) months (the "**Term**") commencing on September 1, 2020, and terminating on May 31, 2036;

**WHEREAS** by a first lease amending agreement entered into on February 1, 2021, between Tenant and Landlord (the "**First Amendment**"), the Parties amended the Lease to modify the Base Rent payable and the conditions applicable to the Letter of Credit, the whole in accordance with the terms and conditions set for in the First Amendment;

**WHEREAS** by an agreement entered into on September 9, 2021, between Tenant and Landlord (the "**Additional Agreement**"), the Parties amended the Lease to modify certain terms relating to the responsibility of the Parties for the costs of the Fire Security Watch, the Fire Panel, and of the Main Electrical Service Upgrades, the whole in accordance with the terms and conditions set for in the Additional Agreement;

**WHEREAS** the Parties have agreed to amend Section 6 (Letter of Credit), Section 8 (Utilities) and Section 16 (Default), in accordance with the terms and conditions set forth in this second amendment to the Lease (the "**Second Amendment**"); and

**WHEREAS** the Original Lease, the First Amendment, the Additional Agreement and this Second Amendment shall hereinafter collectively referred to as the "**Lease**";

**NOW, THEREFORE IN CONSIDERATION OF THE FOREGOING, THE PARTIES HAVE AGREED AS FOLLOWS:**

**1.** **INTERPRETATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** All the terms used herein already defined in the Lease and not defined in the present Second Amendment
shall have the same meaning as those ascribed respectively to them in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** The preamble and schedules hereto, if any, shall form an integral part of this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** Unless otherwise indicated, all paragraphs of the present Second Amendment shall take effect as of the
Early Occupancy Date.

**2.** **ADDITIONAL RENT** - **ELECTRICAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** Notwithstanding the provisions of Section 8 (Utilities) of the Original Lease to the contrary, the Premises
have not been separately metered; Landlord having assumed the cost of Tenant's consumption of electricity in the Premises as of the Early
Occupancy Date, to be reimbursed as per the terms and conditions of this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** Notwithstanding Section 3.2 of the Original Lease, Tenant shall not have the obligation to pay for the
cost of Tenant's electricity consumption in the Premises during the Early Occupancy Period nor for the period commencing on the Commencement
Date up to December 31, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3** Tenant shall reimburse Landlord for the cost of Tenant's electricity
consumption for the period commencing on January 1, 2021 until December 31, 2021 deemed to be, for all intents and purposes, ONE HUNDRED
NINETY-SEVEN THOUSAND SEVEN HUNDRED SIXTY-THREE DOLLARS AND SEVENTY-SIX CENTS ($197,763.76) including applicable taxes; Landlord acknowledging
receipt of the following payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the amount of FORTY THOUSAND DOLLARS ($40,000) received on or about December 1, 2021;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*b.* the amount of FORTY THOUSAND DOLLARS ($40,000) received on or about January 1, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the amount of FIFTY-EIGHT THOUSAND EIGHT HUNDRED EIGHTY-ONE
DOLLARS AND EIGHTY-EIGHT CENTS ($58,881.88) received on or about February 1, 2022; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the amount of FIFTY-EIGHT THOUSAND EIGHT HUNDRED EIGHTY-ONE
DOLLARS AND EIGHTY-EIGHT CENTS ($58,881.88) received on or about March 1, 2022.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
| &nbsp;&nbsp;![](ex10-4_002.jpg) | &nbsp;&nbsp;![](ex10-4_003.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4** Tenant declares being entirely satisfied with the allocation of its electricity
consumption for the period commencing on the Early Occupancy Date up to December 31, 2020; Tenant renouncing to all of its rights and
recourses with respect to the fact that the Premises are not and will not be separately metered, and with the method of allocating the
cost of its electricity consumption for such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5** Notwithstanding
 any provision of Section B (Utilities) of the Original Lease to the contrary, the Premises
 will not be separately metered and, as of January 1, 2022 and for the remainder of the Term,
 the Parties agree that Tenant's cost for its electricity consumption for the Premises
 (the "**Tenant's Electrical Costs**") shall be equal to the difference
 between the total costs of electricity charged by the relevant authorities to the Landlord
 for the electricity consumed for the entire Building (the "**Total Building Electricity Cost** "), and the total cost of the electricity consumed in all the premises of the
 Building, other than the Premises, as measured by sub-meters and at the rates charged to
 Landlord by the relevant authorities for the Building (the "**Other Premises Electricity Cost** "). For calendar
 year 2022, and as of January 1, 2022, the Other Premises Electricity Cost is estimated to
 TWO THOUSAND FIVE HUNDRED SIXTY DOLLARS ($2,560) per month, plus applicable taxes (the "**Other Premises Electricity Cost** "), subject to adjustments pursuant to Section 2.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6** Tenant
 shall pay, as Additional Rent, its Tenant's Electrical Costs to Landlord, provisionally,
 in equal consecutive monthly installments (the "**Electricity Provisional Installments** "),
 on the first day of each calendar month of each Lease Year, as of January 1, 2022, without
 abatement, set-off, deduction or compensation, subject to adjustments as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7** Within
 a reasonable delay after each quarter of each Lease Year, Landlord shall remit to Tenant
 a statement indicating for such quarter the actual Tenant's Electrical Costs, the Building
 Electricity Cost, and the Other Premises Electricity Cost as per the sub-meter readings,
 along with supporting evidence (the "**Electrical Quarterly Statement** "). Furthermore, Landlord agrees to have electrical sub-meters measuring the electrical
 consumption in all of the premises of the Building save for the Leased Premises for which
 no sub-meters shall be installed. For the period commencing as of April 1, 2022, the quarterly
 adjustments to Tenant's Electrical Costs shall be based on the sub-meter readings and
 in accordance with the provisions of this Second Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8** Should the actual Tenant's Electrical Costs indicated in the Electrical
Quarterly Statement exceed the total of the Electricity Provisional Installments already paid by Tenant to Landlord for such quarter,
then Tenant shall reimburse such excess amount due to Landlord within 15 days following Tenant's receipt of the Electrical Quarterly Statement.
Should the actual Tenant's Electrical Costs indicated in the Electrical Quarterly Statement be less than the total Electricity Provisional
Installments already paid by Tenant to Landlord for such quarter, then such overpaid amount shall be credited by Landlord on the next
monthly installment of Rent being due under the Lease.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
| &nbsp;&nbsp;![](ex10-4_002.jpg) | &nbsp;&nbsp;![](ex10-4_003.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9** As
of January 1, 2022 and until Landlord indicates otherwise, the Electricity Provisional Installments shall be EIGHTEEN THOUSAND FIVE HUNDRED
DOLLARS ($18,500.00) each, plus applicable taxes. At any time during the Term after December 31, 2022, Landlord shall have the right,
upon a thirty (30) day prior written notice to that effect, to adjust the Electricity Provisional Installments and the Other Premises
Electricity Costs, based on Landlord's reasonable.estimate of the actual Tenant's Electrical Costs and of the Other Premises Electricity
Costs for the Lease Year in question.

**3.** **DEFAULT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** For clarity, Tenant's failure to pay the Electricity Provisional Installments when due shall constitute
an Event of Default in virtue of the Lease.

**4.** **TENANT IMPROVEMENT TAXES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** As
 per the provisions of the Lease, in the event a Taxing Authority determines that certain
 equipment, facilities, installations and other improvements made by Tenant to the Premises
 with respect to its use thereof (collectively, the "**Taxable Improvements** ")
 are subject to taxation increasing thereby the sum of Real Estate Taxes, then in addition
 (without duplication) to Tenant's Proportionate Share of Real Estate Taxes, Tenant
 shall pay to Landlord, as Additional Rent, such portion of the Real Estate Taxes attributable
 to its Taxable Improvements (the "**Improvement Taxes** "). For clarity,
 to determine the Improvement Taxes attributable to the Tenant's Taxable Improvements,
 and retroactive to the Commencement Date, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.1** for each valuation role or issue of a certificate of modification, the Improvement Taxes shall be determined
by Landlord in accordance with the Taxing Authority's appraiser's assessment methodology and calculation. Should, despite reasonable efforts,
Landlord be unable to obtain the necessary information from the Taxing Authority, Landlord can get the assistance of an independent appraiser
to determine the value of the Taxable Improvements onto which shall be applied the then current tax rates as appearing on the Taxing Authority's
tax invoices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.2** the cost of such independent appraiser will be included in the Operating Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.3** the determination of the Improvement Taxes made in accordance with the provisions of Section 4.1.1 shall
be final and binding on the Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.4** for clarity, and to avoid duplication, the Improvement Taxes shall be deducted from the sum of Real Estate
Taxes prior to calculating Tenant's Proportionate Share payable thereof.

**5.** **DECLARATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** Tenant hereby acknowledges and declares that, on the date of its execution of this Agreement, there are
no uncured defaults by the Landlord under the Lease, and the Landlord has performed all of its obligations set forth in the
Lease; Tenant hereby renouncing to all of its rights and recourses against Landlord with respect thereto.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
| &nbsp;&nbsp;![](ex10-4_002.jpg) | &nbsp;&nbsp;![](ex10-4_003.jpg) |

---

**6.** **MISCELLANEOUS PROVISIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Lease to Remain** in **Effect.** This Second Agreement contains the only amendments made to the
Lease, and all the other terms and conditions set forth in the Lease shall remain unchanged and continue to apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Counterparts and Execution by Electronic Means.** This Second Agreement may be executed in any number
of counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute only
one and the same instrument. This Second Agreement may be executed in so-called "pdf' format and each party has the right to rely
upon a pdf counterpart of this Second Agreement signed by the other party to the same extent as if such party had received an original
counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Applicable Law.** This Second Agreement shall be governed and interpreted in accordance with the
laws in force in the Province of Quebec. Only the courts of the Province of Quebec shall have jurisdiction to rule upon any dispute. The
Parties agree to elect that legal proceedings shall be heard before the courts of the judicial district in which the Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4** **Successors and Assigns.** This Second Agreement shall be binding upon the Parties hereto as well
as their successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5** **Confidentiality.** The Parties shall keep the terms and conditions of this Second Agreement strictly
confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6** **Legal Advice.** The Parties acknowledge that they have respectively received independent legal advice
as regards to the provisions of this Second Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7** **Language.** The Parties hereto acknowledge to have requested that this Second Agreement be drafted
in English. *Les parties aux presentes reconnaissent avoir requis que la Seconde Convention soit redigee en anglais.* 

*[The signatures are on the following page.]*

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
| &nbsp;&nbsp;![](ex10-4_002.jpg) | &nbsp;&nbsp;![](ex10-4_003.jpg) |

---

**IN VIRTUE WHEREOF**, the Landlord has signed this Agreement in Toronto, on the 25th day of March, 2022.

---

| | | |
|:---|:---|:---|
| **BEDFORD STORAGE LIMITED PARTNERSHIP**, as Landlord | **BEDFORD STORAGE LIMITED PARTNERSHIP**, as Landlord | **BEDFORD STORAGE LIMITED PARTNERSHIP**, as Landlord |
| Per: | /s/ Paul Hornak | /s/ Paul Hornak |
|  | Name: | Paul Hornak |
|  | Title: | Vice-President |

---

**IN VIRTUE WHEREOF**, the Tenant has signed this Agreement in Montreal, on the 26th day of April, 2022.

---

| | | |
|:---|:---|:---|
| **NWORKS MANAGEMENT CORP**., as Tenant | **NWORKS MANAGEMENT CORP**., as Tenant | **NWORKS MANAGEMENT CORP**., as Tenant |
| Per: | /s/ Pierre-Luc Quimper | /s/ Pierre-Luc Quimper |
|  | Name: | Pierre-Luc Quimper |
|  | Title: | Chief Executive Officer |

---

**CERTIFIED EXTRACT**

**OF RESOLUTIONS OF THE BOARD OF DIRECTORS OF**

**NWORKS MANAGEMENT CORP.**

(THE "**CORPORATION**")

ADOPTED ON April 26, 2022.

*"BE IT RESOLVED:*

*That the Corporation is hereby authorized to enter into a lease amending agreement with Bedford Storage Limited Partnership, as landlord, with respect to a lease entered into between them on March 19, 2020, as amended, with respect to premises located at 3195 de Bedford Road, in the City of Montréal, Province of Québec, in accordance with the terms and conditions described in the agreement submitted to the Board of Directors for approval, which agreement is hereby approved.*

 

*That Pierre-Luc Quimper, Chief Executive Officer, be and is hereby authorized to sign the agreement with Bedford Storage Limited Partnership, substantially in form and substance to the draft agreement approved by these resolutions, and that he be authorized to approve the said agreement and to sign any other deeds and documents necessary or useful to give effect to these resolutions."*

I.<u> </u>, the<u> </u> of the Corporation, hereby certify that the foregoing is a certified extract of resolutions adopted by the Board of Directors of the Corporation on<u> </u>, 2022 and that the said resolutions are still in force and effect, without any modification or amendment thereto.

Signed in Montreal, Province of Quebec, on April 26, 2022.

---

| |
|:---|
| /s/ Pierre-Luc Quimper |
| Name: |
| Title: |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Landlord** | &nbsp;&nbsp;**Tenant** |
| &nbsp;&nbsp;![](ex10-4_002.jpg) | &nbsp;&nbsp;![](ex10-4_003.jpg) |

---

**<u>LANDLORD'S CONSENT TO ASSIGN THE LEASE</u>**

---

| | |
|:---|:---|
| **BETWEEN:** | **BEDFORD STORAGE LIMITED PARTNERSHIP,** limited partnership, duly constituted under the laws of Ontario, having its head office at 459 Eastern Avenue, Suite 500, City of Toronto, Province of Ontario, M4M 1C2, herein acting and represented by its general partner, **BEDFORD SELF STORAGE CORPORATION,** legal person duly incorporated under the *Business Corporations Act* (Ontario), having its head office at 459 Eastern Avenue, Suite 500, City of Toronto, Province of Ontario, M4M 1C2, itself represented by Paul Hornak, its Vice-President, duly authorized for the purposes hereof as he so declares; |

---

(the "**Landlord**")

---

| | |
|:---|:---|
| **AND:** | **NWORKS MANAGEMENT CORP.,** legal person, duly incorporated under the *Canada Business Corporations Act,* having its head office at 20 Deschenes Street, Saint-Quentin, New Brunswick, E8A 1M1, herein acting and represented by Charles Theriault, its President , duly authorized in virtue of a resolution of the Directors dated October 9, 2023; |

---

(the "**Tenant**")

---

| | |
|:---|:---|
| **AND:** | **ENOVUM DATA CENTERS CORP.,** legal person, duly incorporated under the *Canada Business Corporations Act,* having head office at 1, Place Ville-Marie, Suite 3900, Montreal, Quebec, H3B 4M7, herein represented by Elaine Quimper, its President, duly authorized duly authorized in virtue of a resolution of the Directors dated October 9, 2023; |

---

(the "**Assignee**")

**PREAMBLE**

**WHEREAS** by a lease signed on March 19, 2020 (the "**Initial Lease**"), as amended by (i) a first lease amending agreement dated as of February 1, 2021 (the "**First Amendment**"), (ii) an agreement entered into on September 9, 2021 (the "**Additional Agreement**"), (iii) a second lease amending agreement dated as of March 25, 2022 (the "**Second Amendment**"), all between the Landlord and the Tenant, the Tenant leased from the Landlord certain premises identified as "Unit 4", having a rentable area of approximately 64,642 square feet (the "**Premises**") located in the building bearing civic number 3195 Bedford Road, City of Montreal, Province of Quebec, H3S 1G3, for an initial term of fifteen (15) years and nine (9) months, commencing on September 1, 2020 and terminating on May 31, 2036, subject to the renewal of the Lease, as the case may be, in accordance with Section 3.3 of the Initial Lease, and the Landlord's Right to Terminate, as the case may be, in accordance with Section 3.4 of the Initial Lease (the Initial Lease, the First Amendment, the Additional Agreement and the Second Amendment collectively, the "**Lease**");

**WHEREAS** the Initial Lease contains a covenant on the part of the Tenant not to assign the Lease or sublet the Leased Premises without the Landlord's consent;

**WHEREAS** the Tenant has agreed to assign the Lease to the Assignee, the Assignee accepting (the "**Assignment**"), subject to obtaining the Landlord's consent to such Assignment; and

**WHEREAS,** at the request of the Tenant, the Landlord has agreed to grant its consent to the Assignment effective retroactively as of October 9, 2023 (the "**Effective Date**"), subject to and upon the terms and conditions herein set out.

**NOW THEREFORE,** the Parties agree as follows:

1. INTERPRETATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 This agreement regarding the Landlord's
 consent to the assignment shall be referred to as the "**Agreement** ".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Unless otherwise defined herein or unless there be something in the subject or the context inconsistent
therewith, all capitalized terms and expressions used herein shall have the same meaning as that ascribed to them in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 The preamble and schedules hereto, if any, shall form an integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 If there is any conflict between the terms of this Agreement and any of the provisions of the Lease, the
provisions of this Agreement shall prevail.

2. LANDLORD'S CONSENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Landlord consents to the Assignment as of the Effective Date, subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 This consent does not in any way derogate from the rights of the Landlord under the Lease unless otherwise
expressly provided in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2 This consent does not constitute a waiver of the Assignee's obligation to obtain the Landlord's prior
written consent to (i) any further assignment of the Lease, (ii) any sublease of the Premises, or any portion thereof, to a third party,
(iii) any use or occupancy of the Premises, or a portion thereof, by a third party, or (iv) any future change of control, which consent
must be obtained in accordance with the terms and conditions of the Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3 By giving its consent to the Assignment, the Landlord does not acknowledge or approve of any of the terms
or conditions of the Assignment as between the Tenant and the Assignee except for the assignment of the Lease itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4 As of the Effective Date, the Tenant and the Assignee shall
be solidarily liable in favor of the Landlord in accordance with the provisions of Section 3.3 hereof, provided that, as per the last
paragraph of Article 13 of the Initial Lease, such solidarity shall only extend to the expiry of the current Term (as defined in the
Lease), excluding any extensions of the Term through any renewals by the Assignee. For clarity, the Tenant shall remain solidarily liable
with the Assignee, without the benefit of discussion or division, for all obligations arising prior to the expiry of the current Term,
including without limitation any year-end adjustments of Operating Costs and Real Estate
Taxes for the period up until expiry date of the current Term, and payable after the expiry of the current Term. Notwithstanding any provision
in this Agreement or the Lease, the Tenant shall remain obliged to provide the Letter of Credit to the Landlord until the Assignee provides
a replacement Letter of Credit in accordance with the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5 As of the Effective Date, the Assignee, at its cost, shall make all changes necessary (such as, for example,
any change of name) to its certificate of insurance, insurance policies, permits, licenses and authorizations, and any other document
required under the Lease or at Law and related to the Tenant's use or occupancy of the Premises or the business carried out therein or
therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.6 Concurrently with its execution of this Agreement, the Tenant shall pay the Landlord's cost in the amount
of two thousand five hundred dollars ($2,500.00), plus Sales Taxes, on account of the request for consent and the implementing documentation
of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.7 For clarity, the Letter of Credit in possession of the Landlord shall remain in full force and effect
notwithstanding the Assignment until the Assignee provides a replacement Letter of Credit in accordance with the Lease.

2.2 The Landlord's consent to the Assignment is deemed not to have been delivered to the Tenant until the
consent of the Landlord has been evidenced by the execution and delivery of this Agreement by the Landlord to the Tenant and the Assignee,
and until the condition set forth in Sections 2.1.6 has been complied with.

2.3 Notwithstanding the Effective Date or any provision in the Lease or this Agreement, the Landlord shall
not have to make any adjustments or reimburse any amounts received from the Tenant as of the Effective Date on account of payments due
by the Tenant under the Lease, and all such adjustments shall be made between the Tenant and the Assignee, each of them renouncing to
any rights and recourses against the Landlord with respect thereto.

3. ASSIGNEE'S DECLARATION AND COVENANT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Assignee declares having read the Lease and being fully satisfied therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Assignee accepts the Premises in the condition in which
they exist as of the Effective Date. The Landlord has no responsibility or liability for making any renovations, alterations or improvements
in or to the Premises for the delivery of the Premises to the Assignee on the Effective Date; the Landlord remaining liable to perform
only its repair and maintenance obligations as set forth in the Lease. Any further renovations, alterations or improvements in or to
the Premises shall be performed in accordance with the provisions of the Lease at the Assignee's expense, the Landlord remaining liable
to perform only its repair and maintenance obligations as set forth in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Subject to the last paragraph of Article 13 of the Initial Lease and Section 2.1.4 above, as of the Effective
Date, the Assignee covenants and agrees that it, together with the Tenant, shall be solidarily bound, without the benefit of discussion
or division, by all the provisions of the Lease and liable to pay to Landlord all sums of any kind whatsoever and perform all obligations
of any kind whatsoever which the Tenant is obliged to pay or perform under the Lease or otherwise in respect of the Premises throughout
the current Term (as defined in the Lease) including, without limitation, any loan payments to Landlord and any charges billed after the
date hereof which relate to amounts payable in respect of the Premises pursuant to the Lease or otherwise which at the date hereof either
had not yet been billed to the Tenant or the Assignee or had been billed to the Tenant or the Assignee on an estimated basis subject to
adjustment in accordance with the provisions of the Lease.

4. TENANT'S DECLARATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Tenant declares and confirms that, to its knowledge, on the date of its execution of this Agreement
(i) the Landlord has executed and performed all of its obligations under the Lease, (ii) no event has occurred or situation exists that
would, with the giving of notice or the passage of time or both, constitute a default of the Landlord under the Lease, and (iii) the Tenant
has no claims or recourses of whatsoever nature against the Landlord under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 On the Effective Date, the Tenant releases and waives any and all rights and remedies against the Landlord
to which the Tenant may be entitled at law, or as Tenant under the Lease, it being understood that any and all such rights and remedies,
if any, are hereby assigned to the Assignee as per the Assignment.

5. NOTICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Addresses for notices in accordance with Section 18.11 of the Initial Lease, shall be as follows, for
the following Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1 <u>Landlord</u>:
 459 Eastern Avenue, Suite 500, Toronto, Ontario M4M 1C2; attention to Paul Hornak, email: paul.hornak@xyzstorage.com .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2 <u>Tenant</u>:
 NWorks Management Corp., 3195 Chem. Bedford Suite D, Montreal, Quebec H3S 1G3, Attention;
 President, email: ctheriault@globo.tech .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3 <u>Assignee</u>:
 at the Premises, attention to Billy Krassakopoulos email: bkrassakopoulos@enovumdc.com ,
 with a copy to: equimper@enovumdc.com .

6. MISCELLANEOUS PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **Effect.** This Agreement takes effect retroactively as of October 9, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **Lease.** This Agreement contains the only amendments made to the Lease, and all the other terms and
conditions set forth in the Lease shall remain unchanged and continue to apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **Registration.** This Agreement may not be registered in any manner other than by notice of lease
pursuant to Article 2999.1 of the Civil Code of Quebec, and only after the Assignee has obtained the Landlord's written approval, and
without mention of any financial terms. The provisions of Section 18.2 of the Initial Lease shall apply *mutatis mutandis* to this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **PDF and Counterparts.** This Agreement may be executed in one or more counterparts, each of which
when so executed will be deemed an original, and such counterparts together shall constitute one and the same instrument. The Agreement
may be executed by electronic signature (including by way of example, DocuSign) and delivered by electronic transmission in .pdf or similar
universally readable format and the addressees of this Agreement may rely upon all such electronic signatures as though such electronic
signatures were original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 **Applicable Law.** This Agreement shall be governed and construed in accordance with the laws of the
Province of Quebec and the laws of Canada applicable therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 **Judicial District.** The Parties agree to elect that any legal proceeding relating to this Agreement
shall be heard before the Courts of the judicial district of Montreal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 **Successors and Assigns.** This Agreement shall be binding upon the Parties hereto as well as their
respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 **Brokerage Commission.** The Tenant and the Assignee represent that they have not retained the services
of any agent, broker or other representatives for the conclusion of this Agreement. The Tenant and the Assignee shall indemnify and hold
harmless the Landlord from any and all claims from any agent, broker or representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 **Confidentiality.** The Parties shall keep the terms and conditions of this Agreement strictly confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 **Legal Advice.** The Parties acknowledge that they have respectively received independent legal advice
as regards to the provisions of this Agreement and that all provisions of this Agreement have been freely and fully negotiated and that
this Agreement does not constitute a contract of adhesion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 **Time of the Essence.** Time is of the essence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 **Language.** The Parties have requested that this Agreement
be drafted in English. *Les Parties ont requis que la presente convention soit redigee en anglais.* 

 

*[Signature page on the following page.]*

 

**IN VIRTUE WHEREOF,** the Landlord has signed this Agreement in Toronto, on the 13<sup>th</sup> day of the month of March 2024.

---

| | | |
|:---|:---|:---|
| **BEDFORD STORAGE LIMITED PARTNERSHIP**, represented by **BEDFORD SELF STORAGE CORPORATION** (Landlord) | **BEDFORD STORAGE LIMITED PARTNERSHIP**, represented by **BEDFORD SELF STORAGE CORPORATION** (Landlord) | **BEDFORD STORAGE LIMITED PARTNERSHIP**, represented by **BEDFORD SELF STORAGE CORPORATION** (Landlord) |
| Per: | /s/ Paul Hornak | /s/ Paul Hornak |
|  | Name: | Paul Hornak |
|  | Title: | Vice President |

---

**IN VIRTUE WHEREOF,** the Tenant has signed this Agreement in Montreal, on the 12<sup>th</sup> day of the month of March 2024.

---

| | | |
|:---|:---|:---|
| **NWORKS MANAGEMENT CORP.** | **NWORKS MANAGEMENT CORP.** | **NWORKS MANAGEMENT CORP.** |
| (Tenant) | (Tenant) | (Tenant) |
| Per: | /s/ Charles Thériault | /s/ Charles Thériault |
|  | Name: | Charles Thériault |
|  | Title: | President |

---

**IN VIRTUE WHEREOF,** the Assignee has signed this Agreement in Saint-Quentin, on the 12<sup>th</sup> day of the month of March 2024.

---

| | | |
|:---|:---|:---|
| **ENOVUM DATA CENTERS CORP.** | **ENOVUM DATA CENTERS CORP.** | **ENOVUM DATA CENTERS CORP.** |
| (Assignee) | (Assignee) | (Assignee) |
| Per: | /s/ Elaine Quimper | /s/ Elaine Quimper |
|  | Name: | Elaine Quimper |
|  | Title: | President |

---

**CERTIFIED EXTRACT**

**OF RESOLUTIONS OF THE BOARD OF DIRECTORS OF <br> NWORKS MANAGEMENT CORP.**

{THE **"CORPORATION")**

ADOPTED ON OCTOBER 9, 2023.

 

*"BE IT RESOLVED:*

 

To authorize the Corporation to enter into the following agreements to be entered into on or following the date hereof:

[...]

Assignment of lease with NWorks Management Corp. and Bedford Storage Limited Partnership;

[...]

(the "Agreements"), the whole according to the terms and conditions set forth in the draft Agreements which have been reviewed by the undersigned and are hereby approved;

To authorize any officer or director of the Corporation, to execute and deliver, for and on behalf of the Corporation, the Agreements and all other documents which may be necessary or useful to give effect to the present resolution, with such changes, additions, deletions, modifications and amendments thereto and therefrom that he may approve, his signature to the Agreement or to any such agreements or documents to be interpreted as conclusive evidence of the approval of the Board of Directors."

I, Charles Theriault, the President of the Corporation, hereby certify that the foregoing is a certified extract of resolutions adopted by the Board of Directors of the Corporation on October 9, 2023 and that the said resolutions are still in force and effect, without any modification or amendment thereto.

Signed in Montreal, Province of Quebec, on March 12<sup>th</sup>, 2024.

---

| | |
|:---|:---|
| /s/ Charles Thériault | /s/ Charles Thériault |
| Name: | Charles Thériault |
| Title: | President |

---

**CERTIFIED EXTRACT**

**OF RESOLUTIONS OF THE BOARD OF DIRECTORS OF**

**ENOVUM DATA CENTERS CORP.**

(THE **"CORPORATION")**

ADOPTED ON October 9, 2023.

 

*"BE IT RESOLVED:*

To authorize the Corporation to enter into the following agreements to be entered into on or following the date hereof:

[...]

Assignment of lease with NWorks Management Corp. and Bedford Storage Limited Partnership;

[...]

(the "Agreements"), the whole according to the terms and conditions set forth in the draft Agreements which have been reviewed by the undersigned and are hereby approved;

To authorize any officer or director of the Corporation, to execute and deliver, for and on behalf of the Corporation, the Agreements and all other documents which may be necessary or useful to give effect to the present resolution, with such changes, additions, deletions, modifications and amendments thereto and therefrom that he may approve, his signature to the Agreement or to any such agreements or documents to be interpreted as conclusive evidence of the approval of the Board of Directors."

I, Elaine Quimper, the President of the Corporation, hereby certify that the foregoing is a certified extract of resolutions adopted by the Board of Directors of the Corporation on October 9, 2023 and that the said resolutions are still in force and effect, without any modification or amendment thereto.

Signed in Saint-Quentin, Province of New Brunswick, on March 12<sup>th</sup>, 2024.

---

| | |
|:---|:---|
| /s/ Elaine Quimper | /s/ Elaine Quimper |
| Name: | Elaine Quimper |
| Title: | President |

---

## Exhibit 10.5

**Exhibit 10.5**

![](ex10-5_001.jpg)

![](ex10-5_002.jpg)

![](ex10-5_003.jpg)

![](ex10-5_004.jpg)

![](ex10-5_005.jpg)

![](ex10-5_006.jpg)

![](ex10-5_007.jpg)

## Exhibit 10.6

**Exhibit 10.6**

![](ex10-6_001.jpg)

![](ex10-6_002.jpg)

![](ex10-6_003.jpg)

![](ex10-6_004.jpg)

![](ex10-6_005.jpg)

![](ex10-6_006.jpg)

![](ex10-6_007.jpg)

![](ex10-6_008.jpg)

![](ex10-6_009.jpg)

![](ex10-6_010.jpg)

![](ex10-6_011.jpg)

## Exhibit 10.7

**Exhibit 10.7**

**ARE-CANADA NO. 5 HOLDINGS, ULC**

as **Vendor**<br>- and -

<br> **<br> ENOVUM DATA CENTERS MTL II, L.P.**<br> as **Purchaser**

**AGREEMENT OF PURCHASE AND SALE**

**SALE OF 7300 Trans-Canada Highway, Point-Claire, Quebec**

![](ex10-7_001.jpg)

Dated as of December 23<sup>rd</sup>, 2024

---

| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page i |

---

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **Article 1 Interpretation** | **Article 1 Interpretation** | **1** |
| &nbsp;&nbsp;&nbsp;Section 1.1 | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.2 | Schedules and Exhibits | 9 |
| &nbsp;&nbsp;&nbsp;Section 1.3 | Interpretation | 9 |
| **Article 2 Agreement of Purchase and Sale** | **Article 2 Agreement of Purchase and Sale** | **10** |
| &nbsp;&nbsp;&nbsp;Section 2.1 | Agreement of Purchase and Sale | 10 |
| &nbsp;&nbsp;&nbsp;Section 2.2 | Absence of Warranty | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.3 | Assignment and Assumption | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.4 | Binding Agreement | 11 |
| **Article 3 Purchase Price** | **Article 3 Purchase Price** | **11** |
| &nbsp;&nbsp;&nbsp;Section 3.1 | Method of Payment of Purchase Price | 11 |
| &nbsp;&nbsp;&nbsp;Section 3.2 | Allocation of Purchase Price | 12 |
| &nbsp;&nbsp;&nbsp;Section 3.3 | Adjustments | 12 |
| &nbsp;&nbsp;&nbsp;Section 3.4 | Statement of Adjustments | 12 |
| &nbsp;&nbsp;&nbsp;Section 3.5 | Realty Tax Refunds | 13 |
| &nbsp;&nbsp;&nbsp;Section 3.6 | Deposit | 13 |
| &nbsp;&nbsp;&nbsp;Section 3.7 | Disbursement of Escrow Funds | 14 |
| &nbsp;&nbsp;&nbsp;Section 3.8 | Disbursement of Holdback Amount | 15 |
| **Article 4 Due Diligence and Pre-Closing Covenants** | **Article 4 Due Diligence and Pre-Closing Covenants** | **15** |
| &nbsp;&nbsp;&nbsp;Section 4.1 | Deliveries by Vendor | 15 |
| &nbsp;&nbsp;&nbsp;Section 4.2 | Access to the Property | 16 |
| &nbsp;&nbsp;&nbsp;Section 4.3 | Due Diligence Condition | 17 |
| &nbsp;&nbsp;&nbsp;Section 4.4 | Disclaimer | 17 |
| &nbsp;&nbsp;&nbsp;Section 4.5 | Confidentiality | 18 |
| &nbsp;&nbsp;&nbsp;Section 4.6 | Announcements | 20 |
| **Article 5 Conditions Precedent** | **Article 5 Conditions Precedent** | **20** |
| &nbsp;&nbsp;&nbsp;Section 5.1 | Conditions for Vendor | 20 |
| &nbsp;&nbsp;&nbsp;Section 5.2 | Conditions for Purchaser | 21 |
| &nbsp;&nbsp;&nbsp;Section 5.3 | Non-Satisfaction of Conditions | 22 |
| &nbsp;&nbsp;&nbsp;Section 5.4 | Reasonable and Diligent Efforts to Satisfy Conditions | 23 |
| **Article 6 Closing Documents** | **Article 6 Closing Documents** | **23** |
| &nbsp;&nbsp;&nbsp;Section 6.1 | Vendor's Closing Documents | 23 |
| &nbsp;&nbsp;&nbsp;Section 6.2 | Purchaser's Closing Documents | 24 |
| &nbsp;&nbsp;&nbsp;Section 6.3 | Transfer Taxes | 25 |
| &nbsp;&nbsp;&nbsp;Section 6.4 | Registration and Other Costs | 26 |
| &nbsp;&nbsp;&nbsp;Section 6.5 | Documents | 26 |
| **Article 7 Representations, Warranties and Covenants** | **Article 7 Representations, Warranties and Covenants** | **26** |
| &nbsp;&nbsp;&nbsp;Section 7.1 | Vendor's Representations | 26 |
| &nbsp;&nbsp;&nbsp;Section 7.2 | Purchaser's Representations | 30 |
| &nbsp;&nbsp;&nbsp;Section 7.3 | Survival of Representations | 32 |
| &nbsp;&nbsp;&nbsp;Section 7.4 | As is, Where is | 32 |
| &nbsp;&nbsp;&nbsp;Section 7.5 | Disclosure of Information | 33 |
| &nbsp;&nbsp;&nbsp;Section 7.6 | Indemnification for Claims relating to the Purchased Assets | 34 |
| &nbsp;&nbsp;&nbsp;Section 7.7 | Excluded Equipment and Decommissioning Work Indemnity | 35 |
| &nbsp;&nbsp;&nbsp;Section 7.8 | Third Party Claims | 37 |

---

---

| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page ii |

---

---

| | | |
|:---|:---|:---|
| **Article 8 Operation until Closing** | **Article 8 Operation until Closing** | **38** |
| &nbsp;&nbsp;&nbsp;Section 8.1 | Operation Before Closing | 38 |
| &nbsp;&nbsp;&nbsp;Section 8.2 | Damage Before Closing | 38 |
| &nbsp;&nbsp;&nbsp;Section 8.3 | Expropriation | 39 |
| &nbsp;&nbsp;&nbsp;Section 8.4 | New Leases | 40 |
| &nbsp;&nbsp;&nbsp;Section 8.5 | Contracts and Permits | 40 |
| **Article 9 General** | **Article 9 General** | **41** |
| &nbsp;&nbsp;&nbsp;Section 9.1 | Applicable Law and Forum | 41 |
| &nbsp;&nbsp;&nbsp;Section 9.2 | Invalidity | 41 |
| &nbsp;&nbsp;&nbsp;Section 9.3 | Amendment of Agreement | 41 |
| &nbsp;&nbsp;&nbsp;Section 9.4 | Time of the Essence | 41 |
| &nbsp;&nbsp;&nbsp;Section 9.5 | Further Assurances | 41 |
| &nbsp;&nbsp;&nbsp;Section 9.6 | Entire Agreement | 42 |
| &nbsp;&nbsp;&nbsp;Section 9.7 | Waiver | 42 |
| &nbsp;&nbsp;&nbsp;Section 9.8 | Effect of Termination of Agreement | 42 |
| &nbsp;&nbsp;&nbsp;Section 9.9 | Legal Fees/Real Estate Commission | 42 |
| &nbsp;&nbsp;&nbsp;Section 9.10 | Solicitors as Agents and Tender | 42 |
| &nbsp;&nbsp;&nbsp;Section 9.11 | Survival | 43 |
| &nbsp;&nbsp;&nbsp;Section 9.12 | Successors and Assigns | 43 |
| &nbsp;&nbsp;&nbsp;Section 9.13 | Assignment | 43 |
| &nbsp;&nbsp;&nbsp;Section 9.14 | Privacy Legislation | 43 |
| &nbsp;&nbsp;&nbsp;Section 9.15 | Notice | 43 |
| &nbsp;&nbsp;&nbsp;Section 9.16 | Disclaimer of Partnership | 44 |
| &nbsp;&nbsp;&nbsp;Section 9.17 | Rights of Parties Independent | 44 |
| &nbsp;&nbsp;&nbsp;Section 9.18 | No Registration of Agreement | 44 |
| &nbsp;&nbsp;&nbsp;Section 9.19 | Counterparts | 44 |
| &nbsp;&nbsp;&nbsp;Section 9.20 | Language | 44 |
| **Schedule A Legal Description of the LandS** | **Schedule A Legal Description of the LandS** |  |
| **Schedule B Permitted Encumbrances** | **Schedule B Permitted Encumbrances** |  |
| **Schedule C Due Diligence Deliverables** | **Schedule C Due Diligence Deliverables** |  |
| **Schedule D Escrow Agreement** | **Schedule D Escrow Agreement** |  |
| **Article 1 Interpretation and Definitions** | **Article 1 Interpretation and Definitions** |  |
| &nbsp;&nbsp;&nbsp;1.1 | Definitions |  |
| &nbsp;&nbsp;&nbsp;1.2 | Articles, Sections and Headings |  |
| &nbsp;&nbsp;&nbsp;1.3 | Extended Meanings |  |
| &nbsp;&nbsp;&nbsp;1.4 | Calculation of Time |  |
| &nbsp;&nbsp;&nbsp;1.5 | Entire Agreement |  |
| **Article 2 Appointment** | **Article 2 Appointment** |  |
| &nbsp;&nbsp;&nbsp;2.1 | Appointment |  |
| &nbsp;&nbsp;&nbsp;2.2 | Investment |  |
| &nbsp;&nbsp;&nbsp;2.3 | Excess Amounts |  |
| &nbsp;&nbsp;&nbsp;2.4 | Fees |  |
| **Article 3 Delivery, Closing and Release from Escrow** | **Article 3 Delivery, Closing and Release from Escrow** |  |
| &nbsp;&nbsp;&nbsp;3.1 | Delivery of the Closing Escrow Funds and Holdback Amount |  |
| &nbsp;&nbsp;&nbsp;3.2 | Delivery of Closing Documents |  |
| &nbsp;&nbsp;&nbsp;3.3 | Closing and Release of the Closing Escrow Funds |  |

---

---

| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page iii |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;3.4 | Release of the Holdback Amount |
| &nbsp;&nbsp;&nbsp;3.5 | Other Release From Escrow |
| **Article 4 Duties and Liabilities of the Escrow Agent** | **Article 4 Duties and Liabilities of the Escrow Agent** |
| &nbsp;&nbsp;&nbsp;4.1 | Duties and liabilities |
| &nbsp;&nbsp;&nbsp;4.2 | Reliance by the Escrow Agent |
| **Article 5 Conflicting Directions, Dispute Resolution and Arbitration** | **Article 5 Conflicting Directions, Dispute Resolution and Arbitration** |
| &nbsp;&nbsp;&nbsp;5.1 | Conflicting Directions |
| &nbsp;&nbsp;&nbsp;5.2 | Dispute Resolution |
| &nbsp;&nbsp;&nbsp;5.3 | Arbitration |
| **Article 6 Resignation, Removal of Escrow Agent** | **Article 6 Resignation, Removal of Escrow Agent** |
| &nbsp;&nbsp;&nbsp;6.1 | Resignation |
| **Article 7 Indemnification of Escrow Agent** | **Article 7 Indemnification of Escrow Agent** |
| &nbsp;&nbsp;&nbsp;7.1 | Indemnification |
| **Article 8 Termination of this Escrow Agreement** | **Article 8 Termination of this Escrow Agreement** |
| &nbsp;&nbsp;&nbsp;8.1 | Termination |
| **Article 9 General Provisions** | **Article 9 General Provisions** |
| &nbsp;&nbsp;&nbsp;9.1 | Continuing Legal Counsel |
| &nbsp;&nbsp;&nbsp;9.2 | Payment |
| &nbsp;&nbsp;&nbsp;9.3 | Further Assurances |
| &nbsp;&nbsp;&nbsp;9.4 | Assignment |
| &nbsp;&nbsp;&nbsp;9.5 | Amendments and Waivers |
| &nbsp;&nbsp;&nbsp;9.6 | Currency |
| &nbsp;&nbsp;&nbsp;9.7 | Notices |
| &nbsp;&nbsp;&nbsp;9.8 | Governing Law and Forum |
| &nbsp;&nbsp;&nbsp;9.9 | Severability |
| &nbsp;&nbsp;&nbsp;9.10 | Counterparts |
| &nbsp;&nbsp;&nbsp;9.11 | Language |
| **Schedule E GST/QST Certificate and Indemnity** | **Schedule E GST/QST Certificate and Indemnity** |
| **Schedule F Excluded Equipment AND DECOMMISSIONING WORK** | **Schedule F Excluded Equipment AND DECOMMISSIONING WORK** |
| **Schedule G Form of Deed of Sale** | **Schedule G Form of Deed of Sale** |
| **Schedule H Form of Assignment and Assumption of Permitted Encumbrances** | **Schedule H Form of Assignment and Assumption of Permitted Encumbrances** |

---

**AGREEMENT OF PURCHASE AND SALE**

**THIS AGREEMENT OF PURCHASE AND SALE** made as of December 23<sup>rd</sup>, 2024

---

| | |
|:---|:---|
| **BETWEEN**: | **ARE-CANADA NO. 5 HOLDINGS, ULC**, a legal person duly incorporated under the *Business Corporations Act* (British Columbia), herein acting and represented by Gregory S. Kay, its Senior Vice President; |

---

(the "**Vendor**");

---

| | |
|:---|:---|
| **AND**: | **ENOVUM DATA CENTERS MTL II, L.P.**, a limited partnership duly incorporated under the *Civil Code of Québec*, herein acting and represented by its sole general partner, **ENOVUM MTL II GP INC.**, a legal person duly incorporated under the *Canada Business Corporations Act*, herein acting and represented by Erke Huang, its Vice-President and Secretary; |

---

(the "**Purchaser**"),

**RECITALS:**

**WHEREAS** the Vendor has agreed to sell, transfer, assign, set over and convey all of its interest in and to the Purchased Assets to the Purchaser, and the Purchaser has agreed to purchase, acquire and assume all of the Vendor's interest in and to the Purchased Assets from the Vendor on the terms and conditions set forth in this Agreement;

**NOW THEREFORE** in consideration of the mutual covenants and agreements set forth in this Agreement and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties hereto covenant and agree as follows:

**Article 1<br> Interpretation**

**Section 1.1 Definitions**

1.1.1 The terms defined herein shall have, for
 all purposes of this Agreement, the following meanings, unless the context expressly or by
 necessary implication otherwise requires:

"**Acceptance Date**" means the date upon which this Agreement is executed and delivered by each of the Parties hereto.

"**Adjustment Date**" means 11:59 p.m. (Montreal time) on the day immediately preceding the Closing Date.

"**Adjustments**" means the adjustments to the Purchase Price provided for and determined pursuant to this Agreement including, without limitation, Section 3.3 and Section 3.4.

"**Adverse Entries**" means any entry registered against title to the Property on or after December 20<sup>th</sup>, 2024, except for Permitted Encumbrances and for the registration of the Deed of Sale.

---

| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 2 |

---

"**Affiliates**" means, with respect to any Person (in this definition, such Person being referred to herein as the "**Subject Person**"), any other Person which, directly or indirectly, is Controlled by the Subject Person, or Controls the Subject Person, or is Controlled by a Person which also Controls the Subject Person.

"**Agreement**" means the agreement arising from the execution hereof by the Parties hereto, together with all schedules hereto and all instruments supplemental hereto or in any amendment or confirmation hereof, and "hereof", "hereto", "hereunder" and similar expressions refer to this Agreement and not to any particular section of this Agreement.

"**AML Legislation**" means the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) and other applicable anti-money laundering, anti-terrorist financing, government sanctions and "know your client" laws applicable to the Parties or their respective Affiliates, including any regulations, guidelines or orders thereunder.

"**Applicable Laws**" means applicable laws (including common law and civil law), statutes, by-laws, rules, regulations, orders, ordinances, codes, treaties, decrees, judgements, awards or requirements, in each case of any Governmental Authority.

"**Article**", "**Section**" and "**Schedule**" mean and refer to the specified article, section and schedule of or to this Agreement.

"**Assignment and Assumption of Permitted Encumbrances**" means an assignment by the Vendor and an assumption by the Purchaser of all of the right, title, interest, obligations, duties and liabilities of the Vendor in and under the Permitted Encumbrances and the benefit of all covenants, guarantees and indemnities thereunder, with such assignment and assumption taking effect as of and from the Closing Date, substantially in the form attached hereto as **Schedule H**.

"**Assignment of Warranties**" means an assignment by the Vendor to the Purchaser or as the Purchaser may direct of all of the right, title and interest of the Vendor in and under the Warranties, with such assignment and assumption taking effect as of and from the Closing Date.

"**Assumed Liabilities**" means all liabilities and obligations to be paid or performed from and after the Closing (a) under the Warranties and the Permitted Encumbrances, and (b) to the extent resulting from ownership of the Purchased Assets and the conduct of business and operations at the Property after Closing, but excluding in all cases the Excluded Liabilities.

"**Balance**" has the meaning ascribed thereto in Section 3.1.1(b).

"**Basket**" has the meaning ascribed thereto in Section 7.6.4.

"**Bill of Sale**" means a bill of sale and/or general conveyance for the Movables.

"**Books and Records**" means all information owned by the Vendor relating to the Purchased Assets in existence at Closing.

"**Breach**" means with respect to the Vendor or the Purchaser, as the case may be, (i) any breach of any warranty or the inaccuracy of any representation contained or referred to in this Agreement as of the Acceptance Date or as of the Closing Date, (ii) any breach of any warranty or the inaccuracy of any representation contained or referred to in the Closing Documents or (iii) any breach of any covenants, undertaking or agreements, or any failure to perform any obligations, in each case in this Agreement or in the Closing Documents.

---

| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 3 |

---

"**Buildings**" means, collectively, all buildings, structures, fixed improvements and equipment located on, in or under the Lands, and "**Building**" means any of the buildings, structures, fixed improvements and equipment located on, in or under the Lands.

"**Business Day**" means any day other than a Saturday, Sunday or statutory holiday in the Province of Québec or any other day on which banks in the Province of Québec are generally not open for business.

"**Cap**" has the meaning ascribed thereto in Section 7.6.5.

"**Claims**" means all past, present and future claims, suits, proceedings, liabilities, obligations, losses, damages, penalties, judgments, assessments or reassessments, costs, expenses, fines, disbursements, legal fees on a client and solicitor basis, interest, demands and actions of any nature or any kind whatsoever.

"**Closing**" means the closing of the transactions contemplated by this Agreement, including the delivery of all Closing Documents.

"**Closing Date**" means December 27, 2024 (or December 30, 2024 if the wires described in Section 3.1.1 have not yet been received by the Escrow Agent by 5:00 p.m. (Montreal time) on December 27, 2024), as it may be extended pursuant to the provisions of this Agreement.

"**Closing Documents**" means, collectively, (i) the agreements, instruments and other documents to be delivered by the Vendor to the Purchaser or the Purchaser's Solicitors pursuant to Section 6.1, and (ii) the agreements, instruments and other documents to be delivered by the Purchaser to the Vendor or the Vendor's Solicitors pursuant to Section 6.2.

"**Closing Escrow Funds**" shall have the meaning ascribed thereto in Section 3.7.1.

"**Confidential Information**" has the meaning ascribed thereto in Section 4.5.6.

"**Contracts**" means, collectively, all existing contracts, agreements and licences entered into by or on behalf of the Vendor, in each case with third parties (other than Affiliates) with respect to the ownership, development, maintenance, repair and operation of the Property, whether entered into before or after the Due Diligence Date in accordance with the terms of this Agreement, in each case as amended, renewed or otherwise varied, in each case to the extent the same are assignable, but excluding the Permitted Encumbrances and the Warranties.

"**Control**" for the purposes of this Agreement is determined based on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To control a corporation a Person must,
 (i) beneficially hold (other than by way of security only) securities of such corporation
 or the right to vote or direct the voting of securities of such corporation to which, in
 the aggregate, are attached more than 50% of the votes that may be cast to elect directors
 of the corporation, provided that in all circumstances the votes attached to those securities
 are sufficient, if exercised, to elect a majority of the directors of the corporation and
 control the management of such corporation, and (ii) also have the power to control and direct
 in all circumstances the management and policies of such corporation, directly or indirectly,
 whether through the ownership or control of voting securities, voting rights, contract or
 otherwise;

---

| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 4 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To control a partnership, a Person must,
 (i) beneficially own (other than by way of security only) at least 50% of the partnership
 interest in such partnership and have the right to receive 50% of all revenues from such
 partnership, and (ii) also have the power to control and direct in all circumstances the
 management and policies of such partnership directly or indirectly, whether through the ownership
 or control of voting securities of the general partner, voting rights, contract or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To control a trust where the trustees have
 discretionary powers in respect of the trust assets, a Person must (i) have the right to
 elect or appoint a majority of the trustees of such trust, and (ii) be, directly or indirectly,
 the sole beneficiary of such trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To control a limited partnership, a Person
 must Control each person that is a general partner of such limited partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To control a Person other than a corporation,
 partnership or trust referred to in any of clauses (a) to (c) above (the "**Subject Entity**") a Person must (i) beneficially own, directly or indirectly, at least a
 majority ownership interest in the Subject Entity, and (ii) also have the power to control
 and to direct in all circumstances the management and policies of the Subject Entity, directly
 or indirectly, whether through the ownership or control of voting securities, voting rights,
 contract or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a Person who controls another Person is
 deemed to control any Person which is controlled, or deemed to be controlled, by such other
 Person,

and the words "**Controlled**", "**controlled**", "**Controlling**" and "**controlling**" have corresponding meanings.

"**Decommissioning Work**" means the work identified as "Decommissioning Work" in **Error! Reference source not found.** hereto;

"**Deed of Sale**" has the meaning ascribed thereto in Section 6.1.1(b).

"**Delivery Date**" has the meaning ascribed thereto in Section 4.1.1.

"**Deposit**" has the meaning ascribed thereto in Section 3.1.1(a).

"**Due Diligence Condition**" has the meaning ascribed thereto in Section 4.3.1.

"**Due Diligence Date**" means 5:00 p.m. (Montreal time) on December 23, 2024.

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"**Due Diligence Documents**" means any and all documents or information disclosed or made available to the Purchaser, through the data room set up by the Vendor for such purpose or otherwise, including, without limitation, the documents listed in Section 4.1.1.

"**Encumbrances**" means any mortgages, pledges, charges, priorities, debentures, hypothecs, trust deeds, assignments by way of security, security interests, conditional sales contracts or other title retention agreements or similar interests or instruments charging, or creating a security interest in, or against title to, such property or any part thereof or interest therein, and any agreements, leases, options, easements, servitudes, rights of way, rights of superficies, restrictions, executions, permissions or other charges or encumbrances (including notices or other registrations in respect of any of the foregoing) against the Property or any part thereof or interest therein or title thereto, whether registered or unregistered.

"**Environmental Experts**" has the meaning ascribed thereto in Section 7.7.

"**Environmental Laws**" means all applicable Canadian federal, provincial, municipal and local laws, including without limitation all statutes, by-laws and regulations and all orders, policies, directives, guidelines, each to the extent having the force of law, and all decisions rendered by any ministry, department or administrative or regulatory agency relating to the protection of the environment, or the manufacture, processing, distribution, use, treatment, storage, disposal, packaging, transport, handling, containment, clean-up or other remediation or corrective action of any Hazardous Substances.

"**Escrow Account**" shall have the meaning ascribed thereto in the Escrow Agreement.

"**Escrow Agent**" means the escrow agent pursuant to the Escrow Agreement.

"**Escrow Agreement**" shall mean the escrow agreement between the Escrow Agent, as escrow agent, the Purchaser and the Vendor, substantially in the form attached hereto as **Error! Reference source not found.**, to be entered in to concurrently herewith.

"**Escrow Sunset Date**" means three (3) months following the Indemnity Release Date.

"**Excluded Assets**" means, collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash, monies, deposits, bank accounts, negotiable
 instruments, or other instruments of the Vendor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all rights of the Vendor of every nature
 arising out of all insurance policies relating to the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Excluded Equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) information technology, computers, computer
 systems, firmware, middleware, servers, workstations, routers, hubs, data, databases, software
 programs, source code and object code, and user manuals owned by, leased by or licensed to
 the Vendor or any Affiliate of the Vendor, in each case except as otherwise advised by the
 Vendor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Realty Tax Refunds.

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"**Excluded Equipment**" means the equipment identified as "Excluded Equipment" in **Error! Reference source not found.** hereto;

"**Excluded Liabilities**" means (A) any liability or obligation, direct or indirect, known or unknown, absolute or contingent, relating to the Purchased Assets that is not an Assumed Liability pursuant to this Agreement, and (B) any liability or obligation, direct or indirect, known or unknown, absolute or contingent, relating to the Excluded Assets or the Decommissioning Work;

"**Existence and Net Worth Covenant**" has the meaning set out in Section 7.3.2.

"**GAAP**" means the Generally Accepted Accounting Principles in place as of the date hereof.

"**General Partner**" means Enovum MTL II GP Inc.

"**Governmental Authority**" means any federal, provincial or municipal government, parliament or legislature, or any regulatory authority, agency, bureau, ministry, department, commission or board or other representative thereof, or any political subdivision thereof, or any court or tribunal or, without limitation, any other law-, regulation- or rule-making entity having jurisdiction over the relevant circumstances, or any Person acting under the authority of any of the foregoing (including, without limitation, any arbitrator).

"**GST**" means the goods and services tax payable pursuant to the *Excise Tax Act* (Canada).

"**GST/QST Certificate and Indemnity**" has the meaning ascribed thereto in Section 6.3.

"**Hazardous Substances**" means any pollutants, contaminants, chemicals, deleterious substances, waste (including without limitation, industrial, toxic or hazardous wastes), petroleum or petroleum products, asbestos, polychlorinated biphenyls, flammable materials or radioactive materials which are regulated or controlled under Environmental Laws.

"**Holdback Amount**" means the amount of ONE MILLION DOLLARS ($1,000,000).

"**Indemnity Release Date**" has the meaning ascribed thereto in Section 7.7.

"**Lands**" means the lands and premises described in **Error! Reference source not found.** attached hereto, and all of Vendor's rights and interests appurtenant or ancillary thereto.

"**Leases**" means, collectively, any offers to lease, agreements to lease, amendments to lease, leases, subleases, renewals or extensions of leases and other rights or licenses granted to possess or occupy space within the Property or any part thereof, in each case as amended, renewed or otherwise varied, and "**Lease**" means any one of the Leases.

"**Listed Designated Person**" means a Person mentioned on lists of names subject to the Regulations Establishing Lists of Entities made under subsection 83.05(1) of the *Criminal Code* (Canada), the Office of Foreign Asset Control of the U.S. Department of the Treasury ("**OFAC**") at its official website (http://www.treas.gov/ofac/) and/or the United Nations Suppression of Terrorism Regulations (UNSET) and/or a listing which is currently published under the internet website addresses http://www.publicsafety.gc.ca/cnt/ntnl-scrt/cntr-trrrsm/lstd-ntts/crrnt-lstd-ntts-eng.aspx or www.osfi-bsif.gc.ca/Eng/fi-if/amlc-clnpc/Pages/default.

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"**Movables**" means the inventory, supplies, equipment, furnishings, movables and all other tangible personal or corporeal movable property owned by the Vendor and used exclusively in connection with the ownership, operation, maintenance or management of the Property, in each case to the extent the same are located on the Lands as of December 20<sup>th</sup>, 2024, the whole excluding the Excluded Equipment.

"**Notes**" has the meaning ascribed thereto in Section 4.5.6.

"**Objection Period**" has the meaning ascribed thereto in Section 7.7.

"**Parties**" means the Vendor and the Purchaser and any other Person who may become a party to this Agreement and "**Party**" means any of the Parties as the context requires.

"**Pending Claims**" has the meaning ascribed thereto in Section 3.8.3.

"**Permit**" means a permit, license, certification, authorization, right or privilege granted, delivered, issued or otherwise conferred by a Governmental Authority.

"**Permitted Encumbrances**" means, collectively, the Encumbrances affecting title to the Purchased Assets registered on title to the Purchased Assets before December 20<sup>th</sup>, 2024 and those listed in **Error! Reference source not found.** hereto.

"**Person**" means a natural person, a partnership of any type, a corporation, a joint venture, a syndicate, a chartered bank, a trust, a trust company, a government or an agency thereof, an unincorporated association, or an executor, administrator or other legal representative.

"**Plans**" means all documentation in the possession or control of the Vendor relevant to the construction of the Buildings including, without limitation, surveys, working drawings, detail drawings, as-built drawings, suite floor plans, other documentation prepared to illustrate or define a particular aspect of the Buildings, consultants' contracts and reports, construction contracts, plans submitted with all building permits issued for the Property and occupancy permits.

"**Post-Closing Adjustment**" has the meaning ascribed thereto in Section 3.3.3.

"**Property**" means, collectively, the Lands, the Buildings and all easements, rights-of-way, servitudes and other rights enjoyed by the Vendor as appurtenant to or in conjunction therewith.

"**Purchased Assets**" means, collectively, all of the Vendor's rights, title, and interest in, to and under, or relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Warranties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Movables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Books and Records; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all other property, assets, rights, interests,
 entitlements, benefits and privileges of the Vendor of any nature or kind whatsoever relating
 to the Property;

and excluding, for greater certainty, the Excluded Assets.

"**Purchase Price**" has the meaning ascribed thereto in Section 2.1.

"**Purchaser**" means ENOVUM DATA CENTERS MTL II, L.P. and its successors and permitted assigns.

"**Purchaser's Solicitors**" means Davies Ward Phillips & Vineberg LLP (Attention: Florence Simard) or such other firm or firms of solicitors as are appointed by the Purchaser from time to time and notice of which is provided to the Vendor or the Vendor's Solicitors.

"**QST**" means the Québec sales tax payable pursuant to *An Act respecting the Québec Sales Tax*.

"**Realty Tax Refunds**" has the meaning ascribed thereto in Section 3.5.

"**Release Date**" has the meaning ascribed thereto in Section 7.3.1.

"**Reports**" has the meaning ascribed thereto in Section 4.4.1.

"**Representatives**" has the meaning ascribed thereto in Section 4.5.7.

"**RPMRR**" means the *Register of Personal and Movable Real Rights* (Quebec).

"**Tax Act**" means the *Income Tax Act* (Canada), as amended.

"**Transfer Taxes**" has the meaning ascribed thereto in Section 6.3.

"**Vendor**" means ARE-Canada No. 5 Holdings, ULC and its successors and permitted assigns.

"**Vendor's Solicitors**" means Fasken Martineau DuMoulin LLP (Attention: Richard Clare and Mathieu Renaud) or such other firm or firms of solicitors as are appointed by the Vendor from time to time and notice of which is provided to the Purchaser or the Purchaser's Solicitors.

"**Warranties**" means the existing warranties, guarantees and indemnities remaining in existence as of Closing, if any, in favour of the Vendor and which entitle the Vendor to any rights against a contractor or supplier in respect of the construction, maintenance, repair and operation of the Buildings or any part thereof, in each case to the extent the same are assignable.

"**Work Order**" has the meaning ascribed thereto in Section 8.1.2.

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| Page 9 |

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**Section 1.2 Schedules and Exhibits**

1.2.1 The following Schedules and any exhibits
 attached thereto form an integral part of this Agreement:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule A | Legal Description of the Land |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule B | Permitted Encumbrances |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule C | Due Diligence Deliverables |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule D | Escrow Agreement |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule E | GST/QST Certificate and Indemnity |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule F | Excluded Equipment and Decommissioning Work |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule G | Form of Deed of Sale |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule H | Form of Assignment and Assumption of Permitted Encumbrances |

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**Section 1.3 Interpretation**

1.3.1 <u>Gender and Number</u>. Any reference
 in this Agreement or any Closing Document to gender includes all genders. Words importing
 the singular number only shall include the plural and vice versa.

1.3.2 <u>Headings, etc</u>. The provision of a
 table of contents, the division of this Agreement into Articles and Sections and the insertion
 of headings are for convenient reference only and are not to affect its interpretation.

1.3.3 <u>Currency</u>. All references in this
 Agreement or any Closing Document to dollars or to $ are expressed in Canadian currency unless
 otherwise specifically indicated.

1.3.4 <u>Obligations as Covenants</u>. Each agreement
 and obligation of any of the Parties hereto in this Agreement, even though not expressed
 as a covenant, is considered for all purposes to be a covenant.

1.3.5 <u>Certain Phrases, etc</u>. In this Agreement
 and any Closing Document (i) the words "including", "includes"
 and "include" mean "including (or includes or include) without limitation",
 and (ii) the phrase "the aggregate of", "the total of", "the
 sum of", or a phrase of similar meaning means "the aggregate (or total or sum),
 without duplication, of". Unless otherwise specified, the words "Article"
 and "Section" followed by a number mean and refer to the specified Article or
 Section of this Agreement. In the computation of periods of time from a specified date to
 a later specified date, unless otherwise expressly stated, the word "from" means
 "from and excluding" and the words "to" and "until" each
 mean "to and including".

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1.3.6 <u>Accounting Terms</u>. All accounting
 terms not specifically defined in this Agreement are to be interpreted in accordance with
 GAAP. All calculations made or referred to herein shall be made in accordance with GAAP and/or
 Canadian generally accepted accounting principles and practices at the time that the calculation
 is made and shall be applied on a consistent basis.

1.3.7 <u>References to Persons and Agreements</u>.
 Any reference in this Agreement and any Closing Document to a Person includes its successors
 and permitted assigns. Except as otherwise provided in this Agreement or any Closing Document,
 the term "Agreement" and any reference in this Agreement to this Agreement, any
 Closing Document or any other agreement or document includes, and is a reference to, this
 Agreement, such Closing Document or such other agreement or document as it may have been,
 or may from time to time be amended, restated, replaced, supplemented or novated and shall
 include all schedules to it.

1.3.8 <u>Statutes</u>. Except as otherwise provided
 in this Agreement or any Closing Document, any reference in this Agreement or therein to
 a statute refers to such statute and all rules and regulations made under it, as it or they
 may have been or may from time to time be amended or re-enacted.

1.3.9 <u>Non-Business Days</u>. Whenever payments
 are to be made or an action is to be taken on a day which is not a Business Day, such payment
 will be made or such action will be taken on or not later than the next succeeding Business
 Day.

1.3.10 <u>Waiver of *Contra Proferentem*</u> .
 The Parties waive the application of any rule of law which otherwise would be applicable
 in connection with the construction of this Agreement that ambiguous or conflicting terms
 or provisions should be construed against the Party who (or whose counsel) prepared the executed
 agreement or any earlier draft of the same.

1.3.11 <u>Waiver of *Ejusdem Generis*</u> .
 General words are not given a restrictive meaning (i) if they are introduced by the word
 "other", by reason of the fact that they are preceded by words indicating a particular
 class of act, matter or thing; or (ii) by reason of the fact that they are followed by particular
 examples intended to be embraced by those general words.

**Article 2<br> Agreement of Purchase and Sale**

**Section 2.1 Agreement of Purchase and Sale**

2.1.1 The Vendor hereby agrees to sell, transfer,
 assign, set over and convey the Purchased Assets to the Purchaser on the Closing Date (subject
 to the terms and conditions of this Agreement), and the Purchaser hereby agrees to purchase,
 acquire and assume the Purchased Assets from the Vendor for the sum of THIRTY
 THREE MILLION FIVE HUNDRED THOUSAND DOLLARS ($33,500,000.00) (the "**Purchase Price** "), exclusive of GST and QST. This Agreement shall be completed on the Closing
 Date at the offices of the Vendor's Solicitors in Montreal.

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| Page 11 |

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**Section 2.2 Absence of Warranty**

2.2.1 The purchase and sale of the Purchased Assets
 is made on an "as is, where is" basis at the Purchaser's risk and peril
 (subject only to the express representations, warranties, terms and conditions of this Agreement).

2.2.2 The Purchaser acknowledges and agrees that
 the Vendor is not a professional seller within the meaning of the *Civil Code of Québec*.

**Section 2.3 Assignment and Assumption**

2.3.1 Pursuant to Section 2.1, the Vendor
 shall sell, assign and transfer to the Purchaser all its right, title and interest in and
 to (i) all Warranties, to the extent that such Warranties exist and can be assigned, and
 (ii) the Assumed Liabilities, and the Vendor shall subrogate the Purchaser in its rights
 and obligations with regards to all of the above, which rights and obligations shall be assumed
 by the Purchaser with liability from and including the Closing Date, and the Purchaser shall
 undertake in favor of the Vendor to assume, from and including the Closing Date, all the
 commitments and each of the obligations, modalities and conditions imposed upon the Vendor
 pursuant to the foregoing.

**Section 2.4 Binding Agreement**

2.4.1 The agreement of the Vendor with the Purchaser
 set forth in Section 2.1 creates and constitutes a binding agreement of purchase and
 sale of the Purchased Assets on and subject to the provisions of this Agreement, notwithstanding
 the inclusion herein of any condition.

**Article 3<br> Purchase Price**

**Section 3.1 Method of Payment of Purchase Price**

3.1.1 The Purchase Price shall be satisfied by
 and payable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within three (3) Business Days following
 the date hereof, the Purchaser shall pay the sum of TWO MILLION THREE HUNDRED THOUSAND DOLLARS ($2,300,000.00) (the "**Deposit**") as a cash deposit by wire transfer
 to the Escrow Agent, to be invested by the Escrow Agent in trust in accordance with the Escrow
 Agreement and this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The payment, on Closing, of the balance
 of the Purchase Price (net of Adjustments) <u>minus</u> the Holdback Amount (the "**Balance** ")
 by wire transfer payable to the Escrow Agent in trust, and to be held and released from escrow
 and disbursed by the Escrow Agent in accordance with the terms of the Escrow Agreement and
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The payment, on Closing, of the Holdback
 Amount by wire transfer payable to the Escrow Agent in trust, and to be held and released
 from escrow and disbursed by the Escrow Agent in accordance with the terms of the Escrow
 Agreement and this Agreement.

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| Page 12 |

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**Section 3.2 Allocation of Purchase Price**

3.2.1 The Vendor and the Purchaser shall agree
 prior to Closing upon the allocation of the Purchase Price (such allocation referred to herein
 as the "**Allocation**") among the Purchased Assets, subject to the adjustment
 in Section 3.3, and to report the purchase and sale of the Purchased Assets for all
 tax and other purposes and to file all tax returns in a manner consistent with the Allocation.

**Section 3.3 Adjustments**

3.3.1 Adjustments shall be made as of the Adjustment
 Date on an accrual basis. The Vendor shall be responsible for all expenses and entitled to
 all revenue accruing from the Purchased Assets for that period prior to and ending on the
 Adjustment Date, and thereafter the Purchaser shall be responsible for all expenses (except
 as otherwise provided in this Agreement) and shall be entitled to all revenue accruing from
 the Purchased Assets.

3.3.2 Subject to Section 3.5, the adjustments
 (herein collectively referred to as the "**Adjustments**") shall include all
 realty taxes, local improvement rates and charges, water and assessment rates and other adjustments
 established by the customary practice in the City of Pointe-Claire for the purchase and sale
 of similar properties. In addition, the Adjustments shall include the other matters referred
 to in this Agreement which are stated to be the subject of adjustment and shall exclude the
 other matters in this Agreement which are stated not to be the subject of adjustment.

3.3.3 If the final cost or amount of any item
 which is to be adjusted cannot be determined at Closing, then an initial adjustment for such
 item shall be made at Closing, such amount to be estimated by the Vendor and the Purchaser,
 each acting reasonably, as of the Adjustment Date on the basis of the best evidence available
 at the Closing as to what the final cost or amount of such item will be. In each case when
 such cost or amount is determined, including where such amount was omitted from the statement
 of adjustments through inadvertence or otherwise (provided the same is a proper adjustment
 hereunder), the Vendor or the Purchaser, as the case may be, shall, within thirty (30) days
 of determination, provide a complete statement thereof to the other and within thirty (30)
 days thereafter the Parties shall make a final adjustment as of the Adjustment Date for the
 item in question (each a "**Post-Closing Adjustment** "). All Post-Closing
 Adjustments shall, in any event, be completed on or before twelve (12) months from the Closing
 Date. In the absence of agreement by the Parties hereto, the final cost or amount of an item
 of Post-Closing Adjustment shall be determined by auditors appointed jointly by the Vendor
 and the Purchaser, with the cost of such auditors' determination being shared equally
 between the Vendor and the Purchaser. On Closing, the Vendor and the Purchaser shall execute
 an undertaking to readjust in respect of the Adjustments and for any errors, omissions or
 changes in the statement of adjustments.

3.3.4 All meters for public or private utilities
 shall be read at Closing and all charges in connection therewith for the period prior to
 Closing shall forthwith be paid by the Vendor.

**Section 3.4 Statement of Adjustments**

3.4.1 At least five (5) Business Days prior to
 the Closing Date, the Vendor shall cause to be delivered a statement of adjustments to the
 Purchaser, for its approval, for the Property. The statement of adjustments shall have annexed
 to it details of the calculations used by the Vendor to arrive at all debits and credits
 on the statement of adjustments and all documentation that is reasonably required to verify
 the adjustments.

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**Section 3.5 Realty Tax Refunds**

3.5.1 All right, title and benefit to any realty
 tax appeals and reassessments and any rebates (including without limitation vacancy rebates),
 refunds or reassessments of realty taxes for the Property in respect of periods preceding
 the Closing Date (collectively, the "**Realty Tax Refunds**") shall remain
 the property of the Vendor and shall not form part of the Purchased Assets. If there are
 any pending proceedings to contest the municipal assessment of the Property for the current
 assessment roll or any prior periods, the Vendor may, at its option and its sole expense,
 continue such appeals; provided that the Vendor shall pursue such appeals in a commercially
 reasonable manner and consult with the Purchaser with respect to any final settlement or
 disposition of any such appeal. The Purchaser and the Vendor agree to co-operate with the
 other with respect to all such appeals and to provide the other with access to any necessary
 documents or materials required to continue any such appeals. Any net rebates resulting from
 the foregoing (regardless of whether they are received by the Vendor or the Purchaser) shall
 be paid to the Vendor and the Purchaser on a pro rata basis by reference to the number of
 days in the relevant period when they were the owners of the Property.

**Section 3.6 Deposit**

3.6.1 The Purchaser shall pay the Deposit to the
 Escrow Agent, in trust, in accordance with the provisions of Section 3.1.1(a), to be
 held and disbursed pursuant to the terms of the Escrow Agreement and this Agreement.

3.6.2 The Deposit will be held by the Escrow Agent
 as a deposit in trust pending completion or other termination of this Agreement in an interest-bearing
 trust account with a Canadian chartered bank, to be credited on account of the Purchase Price
 on Closing, with interest accruing to the Purchaser and to be delivered to the Purchaser
 following the Closing, the whole as more fully set out in the Escrow Agreement.

3.6.3 If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the transaction contemplated by this Agreement
 is not completed on the Closing Date for any reason other than solely by reason of the default
 or Breach of the Purchaser under this Agreement, and this Agreement is terminated in accordance
 with its terms as a result, the Deposit and all accrued interest thereon shall be returned
 to the Purchaser forthwith and the Purchaser and the Vendor shall be released from all of
 their respective liabilities and obligations under this Agreement other than the Purchaser's
 liabilities and obligations pursuant to Section 4.2.3, Section 4.3.3 and Section 4.5.
 If the transaction contemplated by this Agreement is not completed on the Closing Date as
 a result solely of a default or Breach of the Vendor, the Purchaser shall be entitled to
 exercise such rights, recourses or remedies as are available to it at law, including the
 right to require specific performance, it being however understood that the liability of
 the Vendor in damages shall be limited to the Cap; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the transaction contemplated by this Agreement
 is not completed on the Closing Date or this Agreement is terminated in each case as a result
 of a default or Breach of the Purchaser under this Agreement, the Deposit and all interest
 accrued thereon shall be forfeited to (and become the property of) the Vendor as liquidated
 damages and thereupon be paid to the Vendor and the Purchaser and the Vendor shall be released
 from all of their respective liabilities and obligations under this Agreement other than
 the Purchaser's liabilities and obligations pursuant to Section 4.2.3, Section 4.3.3
 and Section 4.5.

3.6.4 The Vendor and the Purchaser each hereby
 irrevocably instruct and direct the Escrow Agent, as escrow agent, to give effect to the
 provisions of this Section 3.6.3, and this Section 3.6.3 shall be the Escrow Agent
 good and sufficient authority to do so.

3.6.5 The Parties acknowledge that the Escrow
 Agent shall be mere stakeholders of the Deposit and the Balance as between the Parties to
 this Agreement and, in the event of a dispute between the Vendor and the Purchaser as to
 entitlement to, or disposition of, the Deposit and/or the Balance and/or any accrued interest
 thereon, the Escrow Agent shall be entitled to pay the Deposit and/or the Balance and/or
 such interest into court and thereafter shall have no further responsibility with regard
 thereto, and the Escrow Agent may act in the interest of the Vendor in the matter of any
 dispute between the Parties while still holding the Deposit in trust (or having deposited
 the same into court). In holding and dealing with the Deposit pursuant to this Agreement,
 the Escrow Agent shall not be bound in any way by any agreement other than the Escrow Agreement,
 and the Escrow Agent shall not be considered to assume any duty, liability or responsibility
 other than to hold the Deposit in accordance with the provisions of the Escrow Agreement
 and to pay the Deposit and interest thereon to the Person becoming entitled thereto in accordance
 with the terms of the Escrow Agreement. The Escrow Agent will not, under any circumstances,
 be required to verify or determine the validity of any notice or other document whatsoever
 delivered to the Escrow Agent and the Escrow Agent is hereby relieved of any liability or
 responsibility for any loss or damage which may arise as the result of the acceptance by
 the Escrow Agent of any such notice or other document in good faith (provided that the Escrow
 Agent shall not be relieved of any liability or responsibility for any loss or damage which
 may arise if the Escrow Agent releases the Deposit to a Party hereto after having received
 prior written notice from the other Party hereto claiming entitlement to such Deposit or
 a dispute to such entitlement). This Section is intended to benefit the Escrow Agent notwithstanding
 that they are not parties to this Agreement.

**Section 3.7 Disbursement of Escrow Funds**

3.7.1 The Deposit and the Balance (collectively,
 the "**Closing Escrow Funds**") shall be held by the Escrow Agent in trust
 pursuant to the Escrow Agreement and shall be disbursed by the Escrow Agent in accordance
 with the Escrow Agreement to the Vendor or as the Vendor directs in writing at its sole discretion
 upon confirmation from Escrow Agent and Purchaser's Solicitors, based on the registers
 of the relevant registry offices, of the registration of the Deed of Sale and of the absence
 of any Adverse Entry.

3.7.2 In the event there is an Adverse Entry,
 the Vendor and the Purchaser shall act reasonably to agree upon the portion of the Closing
 Escrow Funds, if any, which can be released to the Vendor and those portions which are to
 remain in escrow with the Escrow Agent pending resolution of the Adverse Entry, and if the
 Vendor and the Purchaser reach such an agreement, they shall promptly give joint instructions
 to the Escrow Agent to give effect thereto. The Vendor shall remain responsible to cause
 any Adverse Entry to be discharged and shall use commercially reasonable efforts to do so
 as soon as possible.

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| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 15 |

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**Section 3.8 Disbursement of Holdback Amount**

3.8.1 The Holdback Amount shall be held by the
 Escrow Agent in trust pursuant to the Escrow Agreement and shall be disbursed by the Escrow
 Agent in accordance with the Escrow Agreement and this Agreement.

3.8.2 In the event any amounts is payable to the
 Purchaser pursuant to Section 7.7, the Purchaser and the Vendor shall deliver a joint
 written instruction to the Escrow Agent, instructing the Escrow Agent to release to the Purchaser
 an amount in cash equal to the amount of the Claims payable to the Purchaser.

3.8.3 The Escrow Agreement shall provide, and
 the Vendor and the Purchaser shall cause, that the Escrow Agent distributes to the Vendor
 promptly after the Indemnity Release Date, a portion of the Holdback Amount equal to: (i)
 the amount remaining in the Escrow Account at such time in connection with the Holdback Amount, <u>less</u> (ii) the aggregate amount of all unpaid Claims pursuant to Section 7.7,
 if any, including the aggregate amount of Claims specified by the Purchaser in any then-unresolved
 indemnification claims and any amounts remaining in dispute pursuant to Section 7.7
 (the "**Pending Claims** "); *provided* that if such amount is a negative
 number, no amounts shall be released from the Escrow Account pursuant to this 3.8.3.

3.8.4 Promptly after all Pending Claims have been
 resolved and paid to the Purchaser in accordance herewith, if any, the Vendor and Purchaser
 shall deliver joint written instructions to the Escrow Agent to distribute to the Vendor
 any amount remaining in the Escrow Account not required to satisfy such Pending Claims.

3.8.5 As of the Escrow Sunset Date, if (i) no
 amounts are payable to the Purchaser pursuant to Section 7.7, (ii) there are no Pending
 Claims, and (iii) the Escrow Agent has not received joint written instructions from the Vendor
 and the Purchaser to distribute any amount remaining in the Escrow Account in accordance
 with the Escrow Agreement and this Agreement, the Escrow Agent is hereby irrevocably instructed
 by the Purchaser and the Vendor to distribute any amount remaining in the Escrow Account
 to the Vendor promptly after the Escrow Sunset Date.

**Article 4<br> Due Diligence and Pre-Closing Covenants**

**Section 4.1 Deliveries by Vendor**

4.1.1 Within five (5) Business Days next following
 the Acceptance Date (the "**Delivery Date** "), the Vendor shall deliver or
 make available to the Purchaser, via a data room or other electronic medium (except as otherwise
 provided in this Agreement), in each case to the extent the same is in the possession or
 control of the Vendor, the Due Diligence Documents relating to the Purchased Assets which
 are listed in **Error! Reference source not found.** and any other material information
 related to any Purchased Asset to the extent same is in the possession or control of the
 Vendor, subject to the confidentiality provisions of this Agreement set forth in Section 4.5.

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| Sale of 7300 Trans-Canada Highway, Point-Claire |
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4.1.2 The Vendor shall promptly make available
 any additional information or documentation reasonably requested by the Purchaser in connection
 with the Purchased Assets but only to the extent same is within its possession or control.
 The Vendor shall, until Closing, cause to be delivered to the Purchaser copies of the following
 received from and after the Acceptance Date until the Closing Date: (i) all notices of default
 and all other material notices or material correspondence, if any, received or sent by or
 on behalf of the Vendor from or to any Person in respect of the Property, and (ii) information
 or documentation which may materially amend or vary any delivery previously given or made
 available to the Purchaser under this Agreement.

4.1.3 Any documentation or other information provided
 by or on behalf of the Vendor to the Purchaser, on notice to the Purchaser (and for certainty,
 such notice may be by email notification from the data room described in Section 4.1.1)
 may be amended or supplemented as necessary from time to time prior to the Due Diligence
 Date.

**Section 4.2 Access to the Property**

4.2.1 From and after the Acceptance Date, the
 Purchaser, its agents, employees and consultants shall have reasonable access to the Property
 during normal business hours from time to time upon at least forty-eight (48) hours'
 notice to the Vendor, which access shall be at the Purchaser's sole risk and expense,
 for the purpose of making any of the Purchaser's inspections, including without limitation
 physical, structural, mechanical and electrical inspections, soil tests and environmental
 audits, provided that the Purchaser shall not conduct any invasive testing without the Vendor's
 prior written consent, not to be unreasonably withheld or delayed and then only on such conditions
 as the Vendor may reasonably require. Such conditions may include a requirement that any
 such activities must be carried out under the supervision of the Vendor or its consultants
 and such conditions shall also include the requirement of the Purchaser to obtain additional
 insurance. Such access shall be done in a manner that minimizes interference with the use
 of the Property. Representatives of the Vendor shall have the right to accompany the Purchaser
 and its advisors and employees on any inspections, tests and audits and the Vendor shall
 have the right to approve invasive or intrusive inspections, tests and audits, if any are
 proposed by the Purchaser, prior to such inspections, tests and audits being undertaken.

4.2.2 Before exercising such right of access for
 the first time, and until the occurrence of Closing or the earlier termination of this Agreement,
 the Purchaser shall subscribe for, and shall maintain in effect, a commercial general liability
 insurance policy with reputable insurer(s) authorized to do business in the jurisdiction
 where the Property is located, for a minimum coverage per occurrence and in the aggregate
 of five million dollars ($5,000,000.00), which policy shall (i) include coverage for
 assumed contractual liability, owned or used motor vehicle liability and environmental liability
 (sudden pollution) for not less than the coverage amount set out above; (ii) name the
 Vendor as an additional insured; (iii) shall contain a waiver of subrogation in favor
 of the Vendor, as well as contain cross-liability and severability of interest provisions;
 and (iv) contain a provision that the insurance shall be primary and non-contributing
 with any other insurance available to Vendor. The Purchaser shall forthwith provide the Vendor
 with proof of such insurance prior to exercising such right of access of the Property.

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| **Agreement of Purchase and Sale** |
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4.2.3 The Purchaser hereby indemnifies the Vendor
 from and against all claims arising out of any act or omission by the Purchaser or its agents
 or employees during and with respect to its exercise of such right of access and inspection.
 The Purchaser agrees to forthwith repair in a good and competent manner any damage to the
 Property arising from such access or inspection at its sole cost and expense. The provisions
 of this Section 4.2.3 shall not merge on Closing or earlier termination of this Agreement
 and shall remain in effect thereafter without limit.

**Section 4.3 Due Diligence Condition**

4.3.1 The Purchaser's obligation to complete
 the purchase of the Purchased Assets pursuant to this Agreement is subject to and conditional
 upon the Purchaser being satisfied, in its sole, absolute and unfettered discretion with
 the results of all of its investigations, inspections, reviews, tests and audits relating
 to the Purchased Assets (including with respect to its physical, environmental, structural,
 contractual, financial, fiscal and legal review) and the transaction contemplated by this
 Agreement, which the Purchaser deems necessary or desirable (the "**Due Diligence Condition** "). The Purchaser shall advise the Vendor by way of a written notice sent
 not later than 5:00 p.m., Montréal time, on the Due Diligence Date, whether the Due
 Diligence Condition has been satisfied or waived.

4.3.2 The Due Diligence Condition is for the sole
 benefit of the Purchaser and may be unilaterally waived in writing in whole or in part by
 the Purchaser at any time on or before the Due Diligence Date. In the event that the Purchaser
 does not waive or confirm the satisfaction of the Due Diligence Condition by written notice
 from the Purchaser to the Vendor on or before the Due Diligence Date, this Agreement shall
 automatically terminate at 5:00 p.m. on the Due Diligence Date, the Purchaser and the Vendor
 shall be released from all of their respective liabilities and obligations under this Agreement
 other than the Purchaser's liabilities and obligations pursuant to Section 4.2.3,
 Section 4.3.3 and Section 4.5, and the Deposit shall be treated in accordance with the
 provisions of Section 3.6.3.

4.3.3 In the event that the Purchaser does not
 waive or confirm the satisfaction of the Due Diligence Condition on or before the Due Diligence
 Date and if requested by the Vendor, the Purchaser agrees to promptly deliver to the Vendor
 copies of all inspections, studies, tests, surveys or other reports conducted by the Purchaser
 or prepared by the Purchaser's mandataries, representatives, agents or consultants
 for the Purchaser's due diligence with respect to the Purchased Assets. The provisions
 of this Section 4.3.3 shall not merge on Closing or earlier termination of this Agreement
 and shall remain in effect thereafter without limit.

**Section 4.4 Disclaimer**

4.4.1 Except as specifically provided for in Section 7.1,
 the Vendor and its agents make no representation or warranty of any nature whatsoever, as
 to the accuracy or completeness or exhaustiveness of any information or document supplied
 or made available to the Purchaser (or its mandataries, representatives, agents or consultants)
 with respect to the transaction contemplated hereunder through the data room or otherwise,
 as part of the Due Diligence Documents, in response to any information request made by the
 Purchaser during its due diligence, prior to or after the Acceptance Date or the Closing
 Date or otherwise. All third party reports delivered or made available to the Purchaser pursuant
 to this Agreement (collectively, the "**Reports**") will be provided to the
 Purchaser on the basis that the Vendor is not making any representations or warranties as
 to the accuracy or completeness of such Reports, and the Vendor shall not have any liability
 for any errors or inaccuracies in the Reports. The Purchaser agrees that, notwithstanding
 said information or documentation or Reports so provided or made available, except as specifically
 provided for in Section 7.1 or in any Closing Document, the Purchaser is proceeding
 and relying solely on its own due diligence review and verification of all aspects of said
 transaction, including, without limitation, all issues concerning title, quality, legal description,
 value, state of repair, latent defects, physical condition, environmental condition, presence
 or absence of any and all Hazardous Substances in, on or under the Property or migrating
 therefrom or thereon, financial matters, leases, offers to lease, contracts, zoning, permitted
 uses, suitability for development, marketability, merchantability, fitness for purpose, governmental
 compliance, compliance with laws, by-laws or regulations, third party rights, threatened
 claims or litigation, or in respect of any other matter or thing whatsoever.

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| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 18 |

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4.4.2 The Purchaser shall have the right to seek
 out and obtain reliance letters from the firms that prepared the Reports for the Vendor with
 respect to the Property permitting the Purchaser to rely on such reports at the Purchaser's
 sole cost and expense. Upon request from the Purchaser, the Vendor shall assist Purchaser
 in the obtaining of such reliance letters, provided that the Vendor shall have no responsibility
 if the same cannot be obtained by the Purchaser.

4.4.3 Notwithstanding the foregoing, the Vendor
 shall deliver to the Purchaser, no later than sixty (60) days following the Closing, a copy
 of all written reports documenting the Decommissioning Work and issued by consultants mandated
 by the Vendor to carry out such Decommissioning Work, together with a reliance letter in
 respect of each such report authorizing the Purchaser to rely thereon, in form and substance
 acceptable to the Purchaser, acting reasonably. This Section shall survive Closing.

**Section 4.5 Confidentiality**

4.5.1 Until Closing or in the event this Agreement
 is terminated pursuant to the terms hereof, the Purchaser and its Representatives shall keep
 in confidence all Confidential Information obtained from the Vendor or its Representatives
 with respect to the Purchased Assets in connection with the review by the Purchaser of the
 Purchased Assets. The Purchaser and its Representatives shall not use, directly or indirectly,
 the Confidential Information except for the purpose of evaluating the transaction contemplated
 herein and shall not disclose the Confidential Information to any Person, including any proposed
 joint venturer, partner or other equity co-investor, without the prior written consent of
 the Vendor.

4.5.2 Nothing herein contained shall restrict
 or prohibit the Purchaser from disclosing the Confidential Information to its Representatives
 (a) who need to know the Confidential Information for the purposes of evaluating the
 transaction contemplated herein, (b) who are informed by the Purchaser of this Agreement
 and of the confidential nature of the Confidential Information and (c) who are directed
 by the Purchaser to treat the Confidential Information in a manner consistent with the terms
 of this Agreement. The Purchaser agrees to be responsible for any breach of the provisions
 of this Agreement by any of its Representatives and agrees to indemnify the Vendor for any
 such breach by the Purchaser's Representatives.

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| **Agreement of Purchase and Sale** |
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4.5.3 The Purchaser shall also be entitled to
 (i) make inquiries of any Governmental Authority (without requesting any inspection of the
 Property), and (ii) discuss with potential lenders the possible financing of the Purchaser's
 acquisition of the Property, provided such lenders are treated as Representatives hereunder,
 without offending this Section 4.5.

4.5.4 In the event that the Purchaser or its Representatives
 should be required, by law or regulation or by legal process, to disclose any Confidential
 Information, it is agreed that the Purchaser shall provide the Vendor with prompt notice
 of any such request, so that the Vendor may seek an appropriate protective order or other
 remedy, or consult with the Purchaser with respect to taking steps to resist or narrow the
 scope of such request or legal process and/or waive the Purchaser's compliance with
 the provisions of this Section 4.5. The Purchaser shall cooperate with the Vendor to
 obtain any such order or remedy. It is further agreed that if, in the absence of a protective
 order or the receipt of a waiver hereunder, the Purchaser is nonetheless, in the opinion
 of outside counsel, compelled to disclose Confidential Information, or else face liability
 for contempt or suffer other penalty, the Purchaser or its Representatives may disclose only
 that portion of the Confidential Information which the Purchaser is advised, by opinion of
 its outside counsel, is legally required, provided however that the Purchaser gives the Vendor
 advance written notice of the Confidential Information to be disclosed as far in advance
 of its disclosure as is practical and, at the Vendor's request, seek to obtain assurances
 that it will be granted confidential treatment.

4.5.5 Unless and until Closing has occurred, the
 Vendor and the Purchaser shall keep confidential, and shall use commercially reasonable efforts
 to ensure that its Representatives keep confidential, this Agreement, except (i) to the extent
 reasonably required by each Party to comply with its obligations or enforce its rights under
 this Agreement, (ii) as required by law, rule or regulation (including SEC regulations),
 or (iii) in the case of the Purchaser, for disclosure of the existence of this Agreement
 (but not its specific terms in condition) necessary in connection with its due diligence
 process or in connection with any discussions with Governmental Authorities in respect of
 the transaction contemplated hereby or the Purchaser's proposed development project
 on the Property.

4.5.6 For the purposes of this Section 4.5,
 "**Confidential Information**" includes, without limitation (i) information
 relating to the Vendor or any of its Affiliates in written form, magnetically encoded, electronic
 files, transmitted verbally, through a virtual data room or in any other form or media and
 regardless of the manner in which it is provided, which is in possession or under the control
 of the Vendor or its Representatives; it includes, without limitation, all Notes, (ii) the
 existence of this Agreement or its contents, or the fact that Confidential Information has
 been made available to the Purchaser or its Representatives; and (iii) any information concerning
 the transaction contemplated in this Agreement, or its terms and conditions or other facts
 related thereto, including without limitation, the fact that discussions or negotiations
 are taking place with respect thereto or the status thereof. "**Notes**" means
 all summaries, reports, analyses, compilations, memoranda, notes, extracts, studies or other
 writings or documents prepared by the Purchaser or its Representatives or on its behalf or
 on behalf of any of its Representatives to the extent they contain, reflect or are based
 upon or derived from the Confidential Information.

4.5.7 "**Representatives**" means,
 with respect to a Party, such Party's Affiliates and their respective its directors,
 officers, employees, shareholders, agents, advisors, partners, professional consultants,
 potential lenders and financial and legal advisors retained for the purpose of the transaction
 contemplated hereunder.

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| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 20 |

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4.5.8 The Confidential Information referred to
 in this Section 4.5 shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) public information or information in the
 public domain at the time of receipt by the Purchaser or its Representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) information which becomes public through
 no fault or act of the Purchaser or its Representatives; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as evidenced by written records, information
 in the possession of the Purchaser not provided solely by the Vendor or its Representatives
 from a source which is not bound by a confidentiality agreement or undertaking with the Vendor
 and not otherwise prohibited by contractual, legal or fiduciary obligation from transmitting
 the Confidential Information to the Purchaser.

4.5.9 Upon termination of this Agreement, (i)
 the Purchaser shall promptly deliver to the Vendor the Confidential Information other than
 the Notes, (ii) the Purchaser shall promptly destroy the Notes in a manner satisfactory to
 the Vendor and certify such destruction in writing and (iii) the Purchaser and its Representatives
 will immediately cease using access to any virtual data room set up by, or on behalf of,
 the Vendor, as the case may be. Any Confidential Information that cannot be returned or destroyed
 (including without limitation any oral Confidential Information) shall remain subject to
 this Agreement.

4.5.10 The Purchaser acknowledges that the Vendor
 may be irreparably harmed if any provision of this Section 4.5 is breached by the Purchaser
 or its Representatives, that monetary damages would not be a sufficient remedy for any such
 breach, and that in addition to all other remedies, the Vendor shall be entitled to seek
 specific performance and injunctive or other equitable relief as a remedy for any such breach.
 The Purchaser further agrees to waive, and to cause its Representatives to waive, any requirement
 for the securing or posting of any bond in connection with such remedy.

**Section 4.6 Announcements**

4.6.1 Both before and after the Acceptance Date
 and the Closing Date, neither the Vendor nor the Purchaser shall issue any press release
 or other public announcement or release information with respect to this Agreement to the
 press or the public unless the same has been mutually approved by the Vendor and the Purchaser,
 each acting reasonably, or such disclosure is in the good faith opinion of the Purchaser
 or the Vendor, as the case may be, required in order to comply with any Applicable Laws or
 the rules, orders or regulations of any stock exchange.

**Article 5<br> Conditions Precedent**

**Section 5.1 Conditions for Vendor**

5.1.1 The obligation of the Vendor to complete
 the agreement of purchase and sale constituted on the execution and delivery of this Agreement
 shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Truth of Representation and Warranties</u>.
 On Closing, the representations and warranties of the Purchaser set out in Section 7.2
 shall be true and correct in all respects as of the date of this Agreement and shall be true
 and correct in all material respects as of the Closing Date with the same force and effect
 as if such representations and warranties had been made on and as of such date (except that
 representations and warranties that are expressly made only as a specific date or as of the
 date hereof in each case need be true and correct only as of such date);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance of Covenants</u>. On Closing,
 the Purchaser shall have fulfilled or performed at the times contemplated herein or complied
 in all material respects with all covenants contained in this Agreement to be fulfilled or
 complied with by it at or prior to Closing, including, without limitation, the payment of
 the Purchase Price in accordance with the provisions of Section 3.1 by no later than
 December 30, 2024 (or earlier if Closing occurs before such date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Orders Delaying Closing</u>. On
 Closing, there shall be no order issued delaying, restricting or preventing, and no pending
 or threatened Claim or judicial or administrative proceeding, or investigation against any
 party by any Person, for the purpose of enjoining, delaying, restricting or preventing, the
 consummation of the transactions contemplated herein or otherwise claiming that this Agreement
 or the consummation of the transactions contemplated herein is improper or would give rise
 to proceedings under any Applicable Laws.

5.1.2 The conditions set forth in this Section 5.1
 are for the sole benefit of the Vendor and may be waived in whole or in part by the Vendor
 by notice to the Purchaser on or before the applicable date referred to above, without prejudice
 to its right to terminate this Agreement in the event of the non-satisfaction of any other
 condition or conditions not so waived.

**Section 5.2 Conditions for Purchaser**

5.2.1 The obligation of the Purchaser to complete
 the agreement of purchase and sale constituted on the execution and delivery of this Agreement
 shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Truth of Representation and Warranties</u>.
 On Closing, the representations and warranties of the Vendor set out in Section 7.1
 shall be true and correct in all respects as of the date of this Agreement and shall be true
 and correct in all material respects as of the Closing Date with the same force and effect
 as if such representations and warranties had been made on and as of such date (except that
 representations and warranties that are expressly made only as a specific date or as of the
 date hereof in each case need be true and correct only as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance of Covenants</u>. On Closing,
 the Vendor shall have fulfilled or performed at the times contemplated herein or complied
 in all material respects with all covenants contained in this Agreement to be fulfilled or
 complied with by it at or prior to Closing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Due Diligence Condition</u>. On the Due Diligence Date, the Due Diligence Condition shall have been
satisfied or waived in accordance with Section 4.3 and all conditions of Section 4.3 shall have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Orders Delaying Closing</u>. On Closing, there shall be no order issued delaying, restricting or
preventing, and no pending or threatened Claim or judicial or administrative proceeding, or investigation against any party by any Person,
for the purpose of enjoining, delaying, restricting or preventing, the consummation of the transactions contemplated herein or otherwise
claiming that this Agreement or the consummation of the transactions contemplated herein is improper or would give rise to proceedings
under any Applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Encumbrances</u>. On Closing, there shall have been no Encumbrances published against the Property
between the Acceptance Date and the Closing Date, other than Permitted Encumbrances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Excluded Equipment and Decommissioning Work</u>. All the Excluded Equipment shall have been removed
from the Property and all Decommissioning Work shall have been fully completed on or prior to Closing.

5.2.2 The conditions set forth in this Section 5.2 are for the sole benefit of the Purchaser and may be
waived in whole or in part by the Purchaser by notice to the Vendor on or before the applicable date referred to above, without prejudice
to its right to terminate this Agreement in the event of the non-satisfaction of any other condition or conditions not so waived.

**Section 5.3 Non-Satisfaction of Conditions**

5.3.1 If any of the conditions set out in Section 5.1, are not satisfied or waived on or before the Closing
Date, as such Closing Date may be extended pursuant to the provisions of this Agreement *,* the Vendor may by written notice to the
Purchaser elect one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to extend the Closing Date as to such specific matters and for a period not to exceed thirty (30) days
to satisfy itself with respect to the above conditions, and, if not obtained prior to the expiration of such thirty (30) day extension,
to elect whether (b) or (c) below applies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to waive such conditions and to close the transaction in accordance with the terms of this Agreement on
the extended Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to terminate this Agreement by notice in writing to the Purchaser given on or before the applicable date
for such condition, in which event this Agreement shall terminate, the Purchaser and the Vendor shall be released from all of their respective
liabilities and obligations under this Agreement other than the Purchaser's liabilities and obligations pursuant to Section 4.2.3,
Section 4.3.3 and Section 4.5 and the Deposit shall be treated in accordance with the provisions of Section 3.6.3.

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5.3.2 If any of the conditions set out in Section 5.2, except for the conditions set out in Section 5.2.1(c),
are not satisfied or waived on or before the Closing Date, as such Closing Date may be extended pursuant to the provisions of this Agreement *,* the Purchaser may by written notice to the Vendor elect one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to extend the Closing Date as to such specific matters and for a period not to exceed thirty (30) days
to satisfy itself with respect to the above conditions, and, if not obtained prior to the expiration of such thirty (30) day extension,
to elect whether (b) or (c) below applies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to waive such conditions and to close the transaction in accordance with the terms of this Agreement on
the extended Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to terminate this Agreement by notice in writing to the Vendor given on or before the Closing Date, in
which event this Agreement shall terminate, the Purchaser and the Vendor shall be released from all of their respective liabilities and
obligations under this Agreement other than the Purchaser's liabilities and obligations pursuant to Section 4.2.3, Section
4.3.3 and Section 4.5 and the Deposit shall be treated in accordance with the provisions of Section 3.6.3.

**Section 5.4 Reasonable and Diligent Efforts to Satisfy Conditions**

5.4.1 Each Party agrees to proceed in good faith and with promptness and reasonable diligence to attempt to
satisfy those conditions contained in Section 5.1 and Section 5.2 that are within its control, acting reasonably, provided that
the Purchaser may in its sole and unfettered discretion elect not to satisfy the conditions set out in Section 5.2.1(c).

5.4.2 The Purchaser and the Vendor shall proceed with diligence to settle all Closing Documents at least five
(5) Business Days prior to the Closing Date.

**Article 6<br> Closing Documents**

**Section 6.1 Vendor's Closing Documents**

6.1.1 On or before Closing, subject to the provisions of this Agreement, the Vendor shall execute or cause to
be executed and shall deliver or cause to be delivered to the Purchaser's Solicitors the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a certificate of the corporate secretary or other officer of the Vendor enclosing a certified copy of
a resolution of the necessary governing authorities of the Vendor attesting to the due authorization of the transaction contemplated in
this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a deed of sale for the Property by the Vendor to the Purchaser conveying the Vendor's rights, title
and interest therein, in the form attached hereto as **Error! Reference source not found.** and in registrable form at the Purchaser's
sole cost and expense (the "**Deed of Sale** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Books and Records;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a Bill of Sale from the Vendor to the Purchaser or as the Purchaser may direct, in each case conveying
such interest in the Movables as the Vendor may possess but without warranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Assignment of Warranties and copies of Warranties (to the extent the same is in the possession or
control of the Vendor);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an acknowledgement of Adjustments made at Closing, attaching the statement of adjustments contemplated
by the provisions of Section 3.4 together with an undertaking by the Vendor to readjust the Post-Closing Adjustments as provided
in Section 3.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) a certificate of the Vendor certifying that the representations and warranties of the Vendor in Section 7.1
are, subject to Section 7.5, true and correct in all material respects as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) originals (where available) or copies of all Contracts (where the same is in the possession or control
of the Vendor) for the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate from the Vendor setting out that the Vendor is not a "non-resident" of Canada
within the meaning and purpose of Section 116 of the Tax Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all master keys and duplicate keys relating to the Buildings, all security cards and access cards relating
to the Buildings, and all combinations to vaults and combination locks located in the Buildings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) copies of the Plans, to the extent the same are in the possession or control of the Vendor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a joint instruction to the Escrow Agent with respect to the disbursement of the Closing Escrow Funds as
required pursuant to the Escrow Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Assignment and Assumption of Permitted Encumbrances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) all other conveyances and other documents which the Purchaser has reasonably requested and the Vendor
has agreed, acting reasonably, to give on or before the Closing Date to give effect to the proper transfer, assignment and conveyance
of the Purchased Assets by the Vendor to the Purchaser.

**Section 6.2 Purchaser's Closing Documents**

6.2.1 On or before the Closing Date, subject to the terms and conditions of this Agreement, the Purchaser shall
execute or cause to be executed and shall deliver or cause to be delivered to the Escrow Agent the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Balance and the Holdback Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a certified copy of a resolution of the necessary governing authorities of the Purchaser attesting to
the due authorization of the transaction contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Deed of Sale;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a Bill of Sale from the Vendor to the Purchaser or as the Purchaser may direct, in each case conveying
such interest in the Movables as the Vendor may possess but without warranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Assignment of Warranties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an acknowledgement of Adjustments made at Closing, attaching the statement of adjustments contemplated
by the provisions of Section 3.4 together with an undertaking by the Purchaser to readjust the Post-Closing Adjustments as provided
in Section 3.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) a certificate of the Purchaser certifying that the representations and warranties of the Purchaser in
Section 7.2 are true and correct in all material respects as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a joint instruction to the Escrow Agent with respect to the disbursement of the Closing Escrow Funds as
required pursuant to the Escrow Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the GST/QST Certificate and Indemnity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Assignment and Assumption of Permitted Encumbrances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all other documents which are required and which the Vendor or the Escrow Agent has reasonably requested
and the Purchaser has agreed, acting reasonably, to give on or before the Closing Date to give effect to this transaction.

**Section 6.3 Transfer Taxes**

6.3.1 The Purchaser shall pay all applicable GST, QST, mutation taxes, sales taxes, registration fees or other
like charges properly payable on or in connection with the conveyance, transfer and purchase and sale of the Purchased Assets hereunder
(collectively, the "**Transfer Taxes**") as and when such Transfer Taxes are payable pursuant to the applicable taxing
legislation. The Purchaser and the Vendor acknowledge and agree that the Purchase Price and all other amounts referenced herein are exclusive
of all Transfer Taxes.

6.3.2 The Purchaser shall be responsible to pay the GST and the QST that are exigible with respect to the purchase
and sale transaction contemplated by this Agreement. Provided that the Purchaser delivers to the Vendor the certificate and indemnity
substantially in the form attached hereto as Schedule E (the "**GST/QST Certificate and Indemnity**") together with proof
of its GST and QST registration numbers on or before the Closing Date, the Vendor shall not charge and collect and the Purchaser shall
not be obliged to pay to the Vendor any GST and QST applicable to the purchase and sale of the Property at Closing, but will remain exclusively
liable for the said payment. The Purchaser hereby undertakes to self-assess and, if required, remit to the appropriate governmental authority
the GST or QST related to the Property. For the avoidance of doubt, the Purchaser shall be obligated to pay to the Vendor GST and QST
in respect of any portion of the Purchase Price allocated to the Purchased Assets other than the Property at Closing.

6.3.3 The Purchaser shall indemnify the Vendor for any Transfer Taxes, penalties, interest and/or other costs
which may become payable by or be assessed against the Vendor or any and all Claims incurred, suffered or sustained by the Vendor in connection
with Transfer Taxes payable on or in connection with the conveyance, transfer and purchase and sale of the Property.

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**Section 6.4 Registration and Other Costs**

6.4.1 The Vendor and the Purchaser shall each be responsible for the costs of their own solicitors in respect
of the transactions contemplated in this Agreement. The Purchaser shall be responsible for and pay, in addition to the Purchase Price,
the fees of the executing notary, where applicable, all registration fees payable in respect of registration of any documents on or after
Closing.

**Section 6.5 Documents**

6.5.1 All documents to be delivered by the Parties hereunder shall be in form and substance satisfactory to
the Parties and their respective solicitors, in each case acting reasonably, provided that none of such documents shall contain covenants,
representations or warranties which are in addition to or more onerous upon the Vendor or the Purchaser than those expressly set forth
in this Agreement, or which are inconsistent or in conflict with Article 7.

**Article 7<br> Representations, Warranties and Covenants**

**Section 7.1 Vendor's Representations**

7.1.1 The Vendor hereby represents and warrants to and in favour of the Purchaser that, as of the Acceptance
Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Incorporation, Power and Capacity of Vendor</u>. The Vendor is a corporation duly existing under the
laws of its formation and has the necessary corporate authority, power and capacity to own the Purchased Assets which it owns and to enter
into this Agreement and the documents and transactions contemplated herein and to carry out the agreement of purchase and sale constituted
on the execution and delivery of this Agreement and the documents and transactions contemplated herein on the terms and conditions herein
contained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporate Authorization</u>. The execution and delivery of, and the performance by the Vendor of, this
Agreement and the Closing Documents to which it is a party and the completion of the transaction contemplated by this Agreement has been
or, in the case of the Closing Documents, will be at Closing, duly authorized by all necessary corporate action on the part of the Vendor
and constitute or, in the case of the Closing Documents, will constitute legal, valid and binding obligations of the Vendor enforceable
against it in accordance with their respective terms subject to (A) bankruptcy, insolvency, moratorium, reorganization and other laws
relating to or affecting the enforcement of creditors' rights generally, and (B) the fact that equitable remedies, including
the remedies of specific performance and injunction, may only be granted in the discretion of a court;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Resident Status</u>. The Vendor is not a non-resident of Canada within the meaning of Section 116
of the *Income Tax Act* (Canada) and Section 1102.1 of the *Taxation Act* (Quebec), or, as applicable, is a "Canadian
Partnership" within the meaning of the said Acts, and the Vendor will receive the Purchase Price on Closing on its own account and
not as agent, trustee, nominee or mandatary for any other Person;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Conflict</u>. The execution and delivery of and performance by the Vendor of this Agreement and
the Closing Documents to which it is a party will not (with or without notice or lapse of time):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitute or result in a violation or breach of, or conflict with, any of the terms or provisions of
the constating documents or by-laws of the Vendor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) result in the violation of any Applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Bankruptcy</u>, The Vendor (a) is not an insolvent person within the meaning of the *Bankruptcy and Insolvency Act* (Canada) or the *Winding-up and Restructuring Act* (Canada), (b) has not made an assignment in favor of its creditors
or a proposal in bankruptcy to its creditors or any class thereof, (c) has not had any petition for a receiving order presented in respect
of it, and (d) has not initiated proceedings with respect to a compromise or arrangement with its creditors or for its winding up, liquidation
or dissolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Nominee</u>. The Vendor holds its rights, title and interest in and to the Purchased Assets for
its own account, and not as mandatary, nominee, prête-nom, agent or registered title holder for any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Required Authorizations of Governmental Authorities</u>. There is no requirement to make any filing
with, give any notice to, or obtain any Permit, authorization, consent or permit of, any Governmental Authority as a condition to the
lawful completion of the transactions contemplated by this Agreement and the Closing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Tax Appeals</u>. There are no realty tax appeals or reassessments pending with respect to the Property,
or any portion thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Employees</u>. There are no employees employed by the Vendor who will become the responsibility of
the Purchaser on or as a result of the Closing, or for whom Purchaser will incur any liabilities whatsoever, on or as a result of the
Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Permits</u>. There are no Permits issued in the name of the Vendor relating to the operation of the
Property which remain in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Options, etc. to Purchased Assets</u>. Except for the Purchaser under this Agreement, no Person
has any written or oral agreement, present or future, contingent or absolute, option, understanding or commitment, or any right (including
a right of first refusal or other purchase right) or privilege capable of becoming such for the purchase or other acquisition of any of
the Purchased Assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>GST and QST</u>. The Vendor is or shall be, at Closing, validly registered under Subdivision d of Division
V of Part IX of the *Excise Tax Act* (Canada) for the purposes of GST and under Division I of Chapter VIII of Title I of the *Act respecting the Quebec Sales Tax* for the purposes of QST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Rights of Occupancy</u>. There are no leases, licenses, agreements or options to lease or other
tenancy agreements with respect to the Property which are currently in effect, and at Closing there will be no leases, licenses, agreements
or options to lease or other tenancy agreements with respect to the Property which are in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Notice of Expropriation</u>. No part of the Property has been expropriated by any Governmental Authority
and the Vendor has not received any written notice or proceeding in respect of any expropriation of the Property or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Notice of Non-Compliance</u>. No written notice has been received by the Vendor which remains outstanding
from any governmental or quasi-governmental authority advising of any defects in the construction of any building on the Property or any
installations therein, or relating to any work order, deficiency or non-compliance with any building restrictions, zoning by-laws, fire
codes, environmental legislation, other regulations or applicable laws in respect of the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No Legal Hypothec</u>. As at Closing, no Person will have a right to claim or file a construction,
builders, mechanics or similar lien against the Purchased Assets or to register or publish a legal hypothec against the Property or any
part thereof under the Civil Code of Quebec (the Vendor nevertheless acknowledging that if any such lien is claimed or filed, the Vendor
shall be responsible at its sole expense for removing or vacating same). Any amount owed to any Person involved in the Decommissioning
Work that has been invoiced to the Vendor has been fully paid by the Vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Real Estate Taxes</u>. All real property taxes due and owing to date with respect to the Property have
been paid in full without subrogation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>No Litigation</u>. There is no litigation or proceeding, including appeals and applications for review,
in progress, against or relating to it, or affecting the Purchased Assets before any domestic court, governmental department, commission,
board, bureau or agency, or arbitration panel, and there is not presently outstanding against it or the Purchased Assets any judgement,
decree, injunction, rule or order of any court, governmental department, commission, agency or arbitrator which adversely affects the
Purchased Assets. Any litigation or proceeding involving the Vendor and 9510-8528 Québec Inc. and/or 9506-6213 Québec Inc.
which has not been settled by such parties does not affect the Purchased Assets in any manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Environmental Reports</u>. The Vendor has or will have provided the Purchaser with all environmental
audits and reports with respect to the Property in its possession or control and the Vendor has not received written notice of any Claims
or any administrative or judicial judgments, orders or decrees that relate to violations of Environmental Laws with respect to the Property
or any part thereof or to the release, discharge, emission or disposal of Hazardous Substances on, to, from or under the Property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Certificate of Location.</u> Since the acquisition of the Property by the Vendor on October 29, 2021,
no new improvements have been made by the Vendor on the Lands and no external alterations or additions to the Buildings have been made
by the Vendor, that would have been reflected in an up-to-date certificate of location prepared and issued by a land surveyor duly licensed
in the Province of Québec.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Mutation Duties</u>. Since March 16, 2016, there has been no transfer of any beneficial rights of ownership
in and to the Property by the Vendor, by way of an off-title transfer or otherwise for which both (a) a disclosure notice has not been
delivered to the appropriate municipality and (b) transfer duties (mutation taxes) have not been paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>OFAC</u>. The Vendor and Alexandria Real Estate Equities, Inc. are currently (a) in compliance with
and shall at all times during the term of this Agreement remain in compliance with the regulations of the OFAC and the OFAC Rules, (b)
not listed on, and shall not during the term of this Agreement be listed on, the Specially Designated Nationals and Blocked Persons List,
Foreign Sanctions Evaders List or the Sectoral Sanctions Identifications List, which are all maintained by OFAC and/or on any other similar
list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not
a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>AML Legislation</u>. The Vendor is not in violation of any AML Legislation, is neither a Listed Designated
Person nor is acting, directly or indirectly, on behalf of terrorists, terrorist organizations, narcotics traffickers or Listed Designated
Persons, and the monies used in connection with this Agreement and amounts committed with respect thereto, were not and are not derived
from any activities that contravene any applicable AML Legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>No Commissions</u>. Except as otherwise provided in this Agreement, the Vendor has not incurred any
liability to any real estate agent for fees and commissions in respect of the sale of the Purchased Assets to the Purchaser.

7.1.2 In the event that any of the above representations and warranties ceases to be true and correct, the Vendor
agrees to advise the Purchaser forthwith. The foregoing representations and warranties are for the sole benefit of the Purchaser and may
be waived by the Purchaser at any time in whole or in part.

7.1.3 For the foregoing purposes of this Section 7.1, "to the best of the Vendor's knowledge
and belief" or similar words means the actual knowledge of the following Representative of the Vendor: Eddie Rose.

7.1.4 All of the representations and warranties set out in this Section 7.1 are made solely as of the Acceptance
Date and not as of any other date. The representations and warranties set out in this Section 7.1 shall be repeated as at the Closing
Date, to be true and correct in all material respects as of such Closing Date, in the bring down certificates referred to in Section 6.1.1(g)
(unless this Agreement is earlier terminated pursuant to the terms and conditions hereof).

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**Section 7.2 Purchaser's Representations**

7.2.1 The Purchaser hereby represents and warrants to and in favour of the Vendor that, as of the Acceptance
Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Formation, Power and Capacity of Purchaser</u>. The Purchaser is a limited partnership duly existing
under the laws of its formation and the General Partner, its sole general partner, has the necessary corporate authority, power and capacity
to purchase and own the Purchased Assets for and on behalf of the Purchaser to be sold to it and to enter into this Agreement and the
documents and transactions contemplated herein and to carry out the agreement of purchase and sale constituted on the execution and delivery
of this Agreement and the documents and transactions contemplated herein on the terms and conditions herein contained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporate Authorization</u>. The execution and delivery of, and the performance by the General Partner
on behalf of the Purchaser of, this Agreement and the Closing Documents to which it is a party and the completion of the transaction contemplated
by this Agreement has been or, in the case of the Closing Documents, will be at Closing, duly authorized by all necessary corporate action
on the part of the General Partner on behalf of the Purchaser and constitute or, in the case of the Closing Documents, will constitute
legal, valid and binding obligations of the Purchaser enforceable against it in accordance with their respective terms subject to (A)
bankruptcy, insolvency, moratorium, reorganization and other laws relating to or affecting the enforcement of creditors' rights
generally, and (B) the fact that equitable remedies, including the remedies of specific performance and injunction, may only be granted
in the discretion of a court;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflict</u>. The execution and delivery of and performance by the General Partner on behalf of
the Purchaser of this Agreement and the Closing Documents to which it is a party will not (with or without notice or lapse of time):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitute or result in a violation or breach of, or conflict with, any of the terms or provisions of
the constating documents or by-laws of the Purchaser or the General Partner, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) result in the violation of any Applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Bankruptcy</u>, The Purchaser (a) is not an insolvent person within the meaning of the *Bankruptcy and Insolvency Act* (Canada) or the *Winding-up and Restructuring Act* (Canada), (b) has not made an assignment in favor of its
creditors or a proposal in bankruptcy to its creditors or any class thereof, (c) has not had any petition for a receiving order presented
in respect of it, and (d) has not initiated proceedings with respect to a compromise or arrangement with its creditors or for its winding
up, liquidation or dissolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Required Authorizations of Governmental Authorities</u>. There is no requirement to make any filing
with, give any notice to, or obtain any authorization, consent or permit of, any Governmental Authority as a condition to the lawful completion
of the transactions contemplated by this Agreement and the Closing Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>GST and QST</u>. The Purchaser shall be, at Closing, validly registered under Subdivision d of Division
V of Part IX of the *Excise Tax Act* (Canada) for the purposes of GST and under Division I of Chapter VIII of Title I of the *Act respecting the Quebec Sales Tax* for the purposes of QST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Residency</u>. The Purchaser is a WTO Investor and is not a "state-owned enterprise", in
each case within the meaning of the *Investment Canada Act* (Canada);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>OFAC</u>. The Purchaser and all beneficial owners of the Purchaser are currently (a) in compliance
with and shall at all times during the term of this Agreement remain in compliance with the regulations of the Office of Foreign Assets
Control ()"**OFAC**") of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto
(collectively, the "**OFAC Rules** "), (b) not listed on, and shall not during the term of this Agreement be listed on,
the Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List or the Sectoral Sanctions Identifications
List, which are all maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to
any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting
business under the OFAC Rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Commissions</u>. Except as otherwise provided in this Agreement, the Purchaser has not incurred
any liability to any real estate agent for fees and commissions in respect of the sale of the Purchased Assets to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>AML Legislation</u>. The Purchaser is not in violation of any AML Legislation, is neither a Listed
Designated Person nor is acting, directly or indirectly, on behalf of terrorists, terrorist organizations, narcotics traffickers or Listed
Designated Persons, and the monies used in connection with this Agreement and amounts committed with respect thereto, were not and are
not derived from any activities that contravene any applicable AML Legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Financial Resources</u>. The Purchaser has the requisite financial resources to complete the Transaction
and pay the Purchase Price, the Purchaser declaring and accepting that the Transaction is in no way subject to financing.

7.2.2 The foregoing representations and warranties are for the sole benefit of the Vendor and may be waived
by the Vendor at any time in whole or in part.

7.2.3 All of the representations and warranties set out in this Section 7.2 are made solely as of the Acceptance
Date and not as of any other date. The representations and warranties set out in this Section 7.2 shall be repeated as at the Closing
Date, to be true and correct in all respects as of such Closing Date, in the bring down certificates referred to in Section 6.2.1(g)
(unless this Agreement is earlier terminated pursuant to the terms and conditions hereof).

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**Section 7.3 Survival of Representations**

7.3.1 The representations and warranties of the Vendor and the Purchaser contained in this Agreement or contained
in any document or certificate given pursuant hereto shall survive the Closing of the transaction herein contemplated and shall continue
in full force and effect for the benefit of the respective Parties for twelve (12) months from the day of Closing ()"**Release Date** "),
following which date none of the Parties may bring an action or commence any claim for a breach of such representations or warranties;
provided, however, that: there shall be no termination of any representation or warranty with respect to which a bona fide claim has been
asserted if the Party making the said claim has notified in writing the other Party hereto of such claim in reasonable detail on or prior
to the Release Date.

7.3.2 Until the Release Date, and, if applicable, payment or disposition in a final non-appealable judgment
by a court of competent jurisdiction of all Claims made by the Purchaser under this Agreement, the Vendor shall remain in existence and
in good standing in its jurisdiction of incorporation, and shall maintain a liquid net worth in an amount equal to or greater than the
Cap (the "**Existence and Net Worth Covenant** "). The Vendor shall provide reasonable evidence of its satisfaction of the
Existence and Net Worth Covenant within fifteen (15) days after written request therefor from the Purchaser at any time prior to the Release
Date (provided the Vendor shall not be required to deliver such evidence more than one (1) time). This Section 7.3.2 shall survive Closing.

**Section 7.4 As is, Where is**

7.4.1 The Purchaser acknowledges that, except as expressly set forth in this Agreement, there are no agreements,
representations, promises, warranties, guarantees or conditions of any kind whatsoever, statutory or otherwise, express or implied, with
respect to the Purchased Assets, including, without limiting the generality of the foregoing, any representations, warranties or conditions,
either express or implied, as to title, quality, legal description, value, state of repair, latent defects, physical condition, environmental
condition, presence or absence of any and all Hazardous Substances in, on or under the Property or migrating therefrom or thereon, financial
matters, leases, offers to lease, contracts, zoning, permitted uses, suitability for development, marketability, merchantability, fitness
for purpose, governmental compliance, compliance with laws, by-laws or regulations, third party rights, threatened claims or litigation,
or in respect of any other matter or thing whatsoever, and the Vendor specifically negates and disclaims the same. The Purchaser further
acknowledges that it is executing this Agreement on the basis that, as purchaser, it has relied and will continue to rely entirely and
solely on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representations and warranties of the Vendor set out in Section 7.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) its own inspections and investigations of the Purchased Assets.

7.4.2 In accordance with and subject to the foregoing and for greater certainty, the Purchaser agrees that the
Purchased Assets will be sold by the Vendor at Closing, but after the Purchaser has conducted its due diligence, without legal or conventional
warranty of quality or ownership on an "as is, where is" basis, at the Purchaser's risk and peril, and that the Vendor
is not a professional seller within the meaning of the *Civil Code of Québec*.

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| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 33 |

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**Section 7.5 Disclosure of Information**

7.5.1 If the Vendor or the Purchaser has actual knowledge or information prior to Closing of matters then existing
which, in the opinion of the Vendor or the Purchaser, as the case may be, acting reasonably, materially affects the accuracy of the representations
and warranties of the Vendor or the contents of any certificates of the Vendor to be delivered pursuant to the terms hereof, then the
Vendor or the Purchaser, as the case may be, shall immediately communicate such information to the other(s) by way of a notice specifically
referring to the representation and warranty or certificate. If the Vendor delivers or the Purchaser delivers such notice regarding such
knowledge or information on or prior to the Due Diligence Date and the Purchaser nonetheless delivers a notice to the effect that its
Due Diligence Condition has been satisfied or waived, subject to the other terms and conditions of this Agreement, the transaction herein
contemplated shall be completed, provided that the certificate of the Vendor to be delivered pursuant to Section 6.1.1(g) shall reflect
such knowledge or information and the Purchaser shall be deemed to have waived any and all Claims for damages or Breach relating to any
such inaccuracy in any such representation and warranty.

7.5.2 If the Purchaser elects to deliver a notice to the effect that its Due Diligence Condition has been satisfied
or waived, then the Purchaser shall be deemed to have accepted for all purposes all matters which have been disclosed to the Purchaser
prior to the Due Diligence Date and if any representation or warranty of the Vendor is incorrect or inaccurate but the instrument, circumstance,
action, omission, matter or issue which causes such representation or warranty to be incorrect or inaccurate has been disclosed to the
Purchaser (in the Due Diligence Documents, through the data room or by email) by the Vendor or its representatives prior to the Due Diligence
Date, then such representation and warranty and the certificate of the Vendor to be delivered pursuant to Section 6.1.1(g) shall
be deemed to have been qualified by reference to such instrument, circumstance, matter or issue.

7.5.3 If the Vendor delivers or the Purchaser delivers the notice referred to in Section 7.5.1 after the
Due Diligence Date and before Closing, or if the Purchaser obtains such knowledge or information on or after the Due Diligence Date and
before Closing and if the information revealed by such knowledge or information is such that the closing condition set out in Section 5.2.1(a)
would not be met, the Purchaser shall provide notice to the Vendor forthwith upon receiving such notice or obtaining such knowledge or
information as to whether it wishes to complete the transaction notwithstanding such knowledge or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Purchaser advises in its notice that it wishes to complete the transaction, then, subject to the
other terms and conditions of this Agreement, the transaction shall be completed without prejudice to the Purchaser's rights in
law or in equity, provided that the certificate of the Vendor to be delivered pursuant to Section 6.1.1(g) shall reflect such knowledge
or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Purchaser advises in its notice that it does not wish to complete the transaction, the Vendor shall
have, at its option, by notice to the Purchaser to be given within two (2) Business Days after receipt of the notice from the Purchaser
referred to above, an additional fifteen (15) days to take whatever steps are necessary to satisfy the Purchaser in respect of the subject
matter in question, and in such case the Closing Date shall be automatically extended for fifteen (15) days. If the Vendor does not provide
such notice, or if it is not able to so satisfy the Purchaser within such fifteen (15) day period, then this Agreement shall terminate,
the Purchaser and the Vendor shall be released from all of their respective liabilities and obligations under this Agreement other than
the Purchaser's liabilities and obligations pursuant to Section 4.2.3, Section 4.3.3 and Section 4.5 and the Deposit shall
be treated in accordance with the provisions of Section 3.6.3, unless the Purchaser elects to rescind its notice and to complete
the transaction notwithstanding such knowledge or information, in which case, subject to the other terms and conditions of this Agreement,
the transaction shall be completed without prejudice to the Purchaser's rights in law or in equity, provided that the certificate
of the Vendor to be delivered pursuant to Section 6.1.1(g) shall reflect such knowledge or information.

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| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 34 |

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**Section 7.6 Indemnification for Claims relating to the Purchased Assets**

7.6.1 Provided Closing occurs, the Purchaser shall hold harmless and indemnify the Vendor in respect of all
Claims: (i) in any way relating to the Assumed Liabilities that relate to the period from and after the Closing Date; or (ii) resulting
from a Breach by the Purchaser where a Claim in respect of such Breach is made in accordance with the terms of this Section 7.6.

7.6.2 The Vendor shall hold harmless and indemnify the Purchaser in respect of all Claims: (i) in any way
relating to the Excluded Assets or the Excluded Liabilities; or (ii) resulting from a Breach by the Vendor where a Claim in respect of
such Breach is made in accordance with this Section 7.6.

7.6.3 The claiming Party shall give written notice to the other Party of each Breach, together with such details
thereof as are then in its possession, promptly.

7.6.4 Notwithstanding Section 7.6.2, the Vendor shall be liable for Claims arising out of a Breach of its
representations and warranties set out in this Agreement or in any Closing Document only if the aggregate of all Claims made by the Purchaser
in connection with Breaches of representations and warranties by the Vendor equals FIFTY THOUSAND dollars ($50,000.00) or more in the
aggregate (such minimum amount being referred to as the "**Basket** "), it being understood that: (a) if the Basket
in Claims for Breaches of representations and warranties is not reached by the Release Date, the Purchaser shall have no rights after
such date to pursue any Claims; (b) if the Basket in Claims for Breaches of representations and warranties is reached prior to the
Release Date, the Purchaser shall be entitled to pursue and recover the full amount of such Claims (and not only the portion thereof in
excess of the Basket), and (c) the Basket shall not apply to any Claims pursuant to Section 7.7.

7.6.5 In all cases, the liability of the Vendor for Claims arising out of Breaches of its covenants, representations
and warranties set out in this Agreement or in any Closing Document (other than any Claims pursuant to Section 7.7) shall not exceed
an aggregate maximum amount of FIVE MILLION TWENTY-FIVE THOUSAND dollars ($5,025,000.00), provided however, that the foregoing limitation
shall not apply to any Breach caused by gross or intentional fault, wilful misconduct or fraud (such aggregate maximum amount being referred
to as the "**Cap** ").

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 35 |

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**Section 7.7 Excluded Equipment and Decommissioning Work Indemnity**

7.7.1 Notwithstanding any other provision of this Agreement, the Vendor shall hold harmless and indemnify the
Purchaser in respect of all Claims (including, without limitation, costs for remediation, restoration, clean-up, treatment, monitoring,
containment and removal relating in any way to Hazardous Substances and other any corrective measures relating to the Property, including
testing costs in connection with the performance of such work, but excluding costs for investigations prior to the identification of the
Claims) in any way relating to (A) the Excluded Equipment and any work conducted to remove the Excluded Equipment from the Property, or
(B) the Decommissioning Work; the whole to the extent that (i) such Claims result directly from items (A) and (B) as evidenced by
a qualified environmental expert, and (ii) being understood that the Vendor's indemnification obligation under this Section 7.7
shall be limited to the presence of Hazardous Substances exceeding, for the soil, applicable standards for commercial and/or industrial
use and, for the groundwater, the criteria for resurgence into surface water (résurgence dans l'eau de surface), in each case as
set forth in the *Guide d'intervention – Protection des sols et réhabilitation des terrains contaminés* published
by the Québec Ministry of the Environment, Fight against Climate Change, Wildlife and Parks (Ministère de l'Environnement,
de la Lutte contre les changements climatiques, de la Faune et des Parcs), as amended, modified, replaced or supplemented from time to
time.

7.7.2 If the Purchaser makes a Claim under Section 7.7.1, the provisions of this Section 7.7.2 shall apply.
The Purchaser shall give written notice to the Vendor of such Claim, together with such details thereof as are then in its possession.
Following receipt of such notice, the Vendor shall have thirty (30) days to make such investigation of the Claim as is considered necessary
or desirable. For the purpose of such investigation, the Purchaser shall make available to the Vendor the information relied upon by the
Purchaser to substantiate such Claim. The Vendor reserves the right to retain a third-party professional environmental advisor to evaluate
any such Claim from the Purchaser. If the Vendor does not object to such Claim within the said thirty (30)-day period (or any mutually
agreed upon extension thereof) to the validity and amount of such Claim, the Vendor shall promptly pay to the Purchaser the full agreed-upon
amount of the Claim.

7.7.3 If the Vendor wishes to object to such Claim within the said thirty (30)-day period (or any mutually agreed
upon extension thereof), then the Vendor shall notify Purchaser in writing by sending a notice of objection including the information
relied upon by the Vendor to substantiate such objection and the Vendor shall make available to the Purchaser all such other information
and assistance as the Purchaser or its professional advisors may reasonably request. The Purchaser reserves the right to retain a third-party
professional environmental advisor to evaluate any such objection from the Vendor. If both parties agree in writing within thirty (30)
days following delivery by the Vendor of such objection (the "**Objection Period**") (or any mutually agreed upon extension
thereof) to the validity and amount of such Claim (or mutually agreed upon modification of such Claim), the Vendor shall promptly pay
to the Purchaser the full agreed-upon amount of the Claim.

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 36 |

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7.7.4 If the Purchaser and the Vendor are unable to resolve all of their disagreements with respect to such
Claim within the Objection Period (or any mutually agreed upon extension thereof), then they shall refer their remaining differences to
a mutually agreeable independent environmental expert of national recognition in Canada and Quebec acceptable to both the Purchaser and
the Vendor to endeavor to resolve the dispute (such expert being referred to as the "**Environmental Expert** "), who shall,
acting as an expert and not as an arbitrator, issue an advisory determination as to the matters so submitted, taking into consideration
applicable Environmental Laws and this Agreement, provided that, if the parties, acting reasonably, cannot agree on an Environmental Expert
within thirty (30) days following the expiry of the Objection Period, then the matter shall be referred to a court of competition jurisdiction.
The procedure and schedule under which any dispute shall be submitted to the Environmental Expert shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within sixty (60) days after the engagement of the Environmental Expert, the Purchaser and the Vendor
shall each deliver any unresolved elements of the Vendor's objection to the Environmental Expert in writing (with a copy to the
other party), supported by any documents and/or affidavits upon which such party relies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within sixty (60) days following the submission of the unresolved elements as specified in sub-clause
(i) above, the Purchaser and the Vendor shall each submit their respective responses to the Environmental Expert in writing (with a copy
to the other party), supported by any documents and/or affidavits upon which such party relies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Environmental Expert shall deliver its written determination to the Vendor and the Purchaser no later
than the sixtieth (60th) day following the submission of the responses specified in sub-clause (b) above, or such longer period of time
as the Environmental Expert determines is reasonably necessary with the consent of the Purchaser and the Vendor, provided that such extended
period shall be no longer than an additional fifteen (15) days, failing which such matter shall be referred to a court of competent jurisdiction.

7.7.5 If the Purchaser and the Vendor are unable to resolve their disagreements with respect to the unresolved
elements of the Vendor's objection within thirty (30) days following the written determination referred to in sub-clause (c) above
(or any mutually agreed upon extension thereof), the matter shall be referred to a court of competent jurisdiction. If both parties agree
in writing within thirty (30) days following the written determination referred to in sub-clause (c) period (or any mutually agreed upon
extension thereof) to the validity and amount of such Claim (or mutually agreed upon modification of such Claim), the Vendor shall promptly
pay to the Purchaser the full agreed-upon amount of the Claim. The Environmental Expert's determination shall be advisory in nature
and shall be without prejudice, privileged and confidential and the parties hereby agree that such determination shall not be admissible
in any court proceeding with respect to this Agreement. The Vendor and the Purchaser shall make readily available to the Environmental
Expert all relevant books and records and any work papers relating to the matters submitted to the Environmental Expert and all other
items reasonably required by the Environmental Expert. The Purchaser and the Vendor shall each bear the fees of their respective counsel
and other representatives incurred in connection with the determination of the Claims referenced in this Section 7.7. Any expenses
relating to the engagement of the Environmental Expert shall be allocated equally between the Purchaser and the Vendor.

7.7.6 Notwithstanding any other provision of this Agreement, the indemnity set out in Section 7.7 shall
survive the Closing of the transaction herein contemplated and shall continue in full force and effect for the benefit of the Purchaser
for six (6) months from the day of Closing ()"**Indemnity Release Date** "); provided, however, that there shall be no termination
of such indemnity if a bona fide claim has been asserted if the Purchaser has notified in writing the Vendor of such claim as contemplated
in Section 7.7.2 above on or prior to the Indemnity Release Date.

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 37 |

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7.7.7 The liability of the Vendor for Claims arising out of the indemnity set out in Section 7.7 shall
not exceed an aggregate maximum amount of TWO MILLION DOLLARS ($2,000,000.00), provided however, that the foregoing limitation shall not
apply to any Claim caused by gross or intentional fault, wilful misconduct or fraud.

7.7.8 To the extent any Claims by the Purchaser require payment of amounts by the Vendor on the indemnity contained
in Section 7.7, then the Purchaser shall be entitled to indemnification: (i) first from the Holdback Amount; and (ii) if and to the
extent that the Holdback Amount has been exhausted or disbursed pursuant to Section 7.7, from the Vendor.

**Section 7.8 Third Party Claims**

7.8.1 In the case of a Claim originating from a Person other than a Party hereto or an Affiliate thereof (a "**Third Party Claim** "), the Party seeking indemnification hereunder in respect thereof (the "**Indemnified Party** ")
shall give written notice to the Party from whom indemnification is sought (the "**Indemnifying Party**") of any such
Third Party Claim forthwith after receiving notice thereof. If the Indemnified Party fails to give such written notice to the Indemnifying
Party, such failure shall not preclude the Indemnified Party from demanding indemnification from the Indemnifying Party, but its right
to indemnification may be reduced to the extent that such delay prejudiced the defence of the Third Party Claim or increased the amount
of liability or the cost of the defence.

7.8.2 The Indemnifying Party shall have the right, by written notice to the Indemnified Party given not later
than thirty (30) days after receipt of the notice referred to in Section 7.8.1, to assume the control of the defence, compromise
or settlement of the Third Party Claim.

7.8.3 Upon the assumption of control of any Third Party Claim by the Indemnifying Party, the Indemnifying Party
shall diligently proceed with the defence, compromise or settlement of the Third Party Claim at its sole expense, including, if necessary,
employment of counsel reasonably satisfactory to the Indemnified Party and, in connection therewith, the Indemnified Party shall co-operate
fully (but at the expense of the Indemnifying Party with respect to any reasonable out-of-pocket expenses incurred by the Indemnified
Party) to make available to the Indemnifying Party all pertinent information and witnesses under the Indemnified Party's control,
make such assignments and take such other steps as in the opinion of counsel for the Indemnifying Party, acting reasonably, are reasonably
necessary to enable the Indemnifying Party to conduct such defence. The Indemnified Party shall have the right to participate in the negotiation,
settlement or defence of any Third Party Claim at its own expense. Moreover, if the Indemnifying Party assumes control of a Third Party
Claim, the Indemnified Party shall not pay, or permit to be paid, any part of the Third Party Claim unless the Indemnifying Party consents
in writing to such payment or unless the Indemnifying Party, subject to the last sentence of Section 7.8.4, withdraws from the defence
of such Third Party Claim or unless a final judgement from which no appeal may be taken by or on behalf of the Indemnifying Party is entered
against the Indemnified Party in respect of such Third Party Claim.

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 38 |

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7.8.4 If the Indemnifying Party fails to give written notice to the Indemnified Party as contemplated by Section 7.8.2,
the Indemnified Party shall be entitled to make such settlement of the Third Party Claim, or otherwise deal therewith, as it deems appropriate,
acting reasonably, and such settlement or any other final determination of the claim or demand shall be binding upon the Indemnifying
Party. If the Indemnifying Party fails to defend or, if after commencing or undertaking such defence, fails to prosecute or withdraws
from such defence, the Indemnified Party shall have the right to undertake the defence or settlement thereof. If the Indemnified Party
assumes the defence of any Third Party Claim and proposes to settle it prior to a final judgement thereon or to forego any appeal with
respect thereto, then the Indemnified Party shall give the Indemnifying Party prompt written notice thereof, and the Indemnifying Party
shall have the right, acting diligently, to participate in the settlement or assume or reassume the defence of such Third Party Claim.

**Article 8<br> Operation until Closing**

**Section 8.1 Operation Before Closing**

8.1.1 From the Acceptance Date until Closing, the Vendor shall operate the Property in substantially the same
manner as it has prior to the date hereof and, in any event, in accordance with standard business and management practices as would a
prudent owner of comparable properties. The Vendor shall keep and maintain any insurance currently on the Property, if any, and no change
shall be made to such insurance, nor will such insurance be terminated or allowed to expire.

8.1.2 The Vendor covenants and agrees with the Purchaser that if a work order, deficiency notice or other directive
from a Governmental Authority is received after the Due Diligence Date of any defect or deficiency in the construction, state of repair
or state of completion of the Property or ordering or directing that any alteration, repair, improvement or other work to be done or relating
to any non-compliance, or failure to complete an inspection pertaining to any building permit, building or land use by-law, ordinance
or regulation (in each case, a "**Work Order** "), a copy of such notice shall be delivered to the Purchaser and the Vendor
shall comply with same prior to Closing at its expense and deliver evidence of such compliance to the Purchaser.

8.1.3 Notwithstanding Section 8.1.1, the Vendor shall not make any capital improvements to the Property
from and after the date hereof other than (i) in the case of an emergency or (ii) in respect of the capital projects disclosed
to the Purchaser in the Due Diligence Documents, without the prior written approval of the Purchaser, which approval will not be unreasonably
withheld or delayed.

**Section 8.2 Damage Before Closing**

8.2.1 The interest of the Vendor in and to the Buildings being purchased, acquired and assumed by the Purchaser
pursuant to the terms and conditions of this Agreement shall be at the risk of the Vendor until Closing. It is agreed, for greater certainty,
that the Vendor shall not cause or consent to the demolition or alteration of any of the Buildings.

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 39 |

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8.2.2 If any material physical loss or damage occurs before Closing to any of the Buildings, the amount or cost
of which is in excess of ONE MILLION SIX HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($1,675,000.00) (such loss or damage to be determined by
the Vendor's arm's length, independent architect, engineer or other qualified expert), the Purchaser, within ten (10) days
after disclosure to the Purchaser by the Vendor of the loss or damage and the extent thereof, at its option, shall by notice in writing
to the Vendor elect either (i) to complete the purchase of the Property, in which event the Purchaser shall be entitled to all proceeds
of insurance, if any, and shall assume any deductibles in respect of the loss or damage and the Vendor shall pay or give a credit to the
Purchaser for any deductibles in respect of such loss or damage, or (ii) not to complete the purchase of the Property, in which event
this Agreement shall terminate, the Purchaser and the Vendor shall be released from all of their respective liabilities and obligations
under this Agreement other than the Purchaser's liabilities and obligations pursuant to Section 4.2.3, Section 4.3.3 and
Section 4.5 and the Deposit shall be treated in accordance with the provisions of Section 3.6.3. If the Purchaser does not provide
the Vendor with notice of its election prior to the expiry of said ten (10) day delay, then the Purchaser shall be deemed to have elected
not to complete the purchase of the Property and the other Purchased Assets in accordance with the above. If any loss or damage to the
Buildings occurs within ten (10) days prior to Closing, the Closing Date will be extended by a period sufficient for the foregoing election
to be made by the Purchaser in the manner and within the time therefor as aforesaid.

8.2.3 If any loss or damage to the Buildings occurs, the amount or cost of which is less than ONE MILLION SIX
HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($1,675,000.00) (such loss or damage to be determined by the Vendor's arm's length,
independent architect, engineer or other qualified expert), then neither Party shall have any right to terminate this Agreement by virtue
thereof, and the Vendor shall have the option to either (i) repair any such loss or damage and return the Property to substantially
the same condition as it was prior to such damage at its expense prior to the Closing or (ii) elect to grant the Purchaser a credit
for the amount of such loss or damage by way of Adjustments at Closing (which Adjustments shall be subject to Post-Closing Adjustments
in accordance with the terms of this Agreement) and the Parties shall complete the purchase of the Property and all other Purchased Assets.

**Section 8.3 Expropriation**

8.3.1 If any material portion of the Property valued at ONE MILLION SIX HUNDRED SEVENTY-FIVE THOUSAND DOLLARS
($1,675,000.00) or more (such expropriated value to be determined by the Vendor's arm's length qualified expert) is expropriated
by Governmental Authorities before Closing, the Vendor shall give notice to the Purchaser as soon as practicable after being aware of
such expropriation and the Purchaser shall have the right by notice given to the Vendor within ten (10) days following receipt of notice
from the Vendor regarding such expropriation, to elect either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to take the damages awarded or compensation, as the case may be, in respect of such expropriation and
complete the purchase of the Property and other the Purchased Assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not complete the purchase of the Property, in which event this Agreement shall terminate, the Purchaser
and the Vendor shall be released from all of their respective liabilities and obligations under this Agreement other than the Purchaser's
liabilities and obligations pursuant to Section 4.2.3, Section 4.3.3 and Section 4.5 and the Deposit shall be treated in
accordance with the provisions of Section 3.6.3.

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 40 |

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8.3.2 If the Purchaser does not provide the Vendor with notice of its election prior to the expiry of said ten
(10) day delay, then the Purchaser shall be deemed to not have elected to complete the purchase of the Property and the other Purchased
Assets in accordance with the above. If any expropriation of the Property occurs within ten (10) days prior to Closing, the Closing Date
will be extended by a period sufficient for the foregoing election to be made by the Purchaser in the manner and within the time therefor
as aforesaid.

**Section 8.4 New Leases**

8.4.1 From the Acceptance Date until Closing, the Vendor shall not enter onto any Leases with respect to any
portion of the Property.

**Section 8.5 Contracts and Permits**

8.5.1 The Vendor shall terminate (or amend so that they no longer relate to the Property) all Contracts at its
expense on or before Closing.

8.5.2 Notwithstanding anything herein contained, on Closing, the Vendor shall assign and the Purchaser shall
assume all of the Vendor's interest in all of the Warranties.

8.5.3 Nothing in this Agreement shall be construed as an assignment of, or an attempt to assign, directly or
indirectly, to the Purchaser, any Permit or Warranty which is (i) not assignable, or (ii) not assignable without the approval or consent
of the other party or parties thereto, without first obtaining such approval or consent. The failure to obtain any such approval or consent,
or the fact that a Permit or Warranty is not assignable, shall not entitle the Purchaser to terminate this Agreement or to any other right
or remedy whatsoever. With respect to any Permit or Warranty which is not assignable or is only assignable with consent, the Vendor shall,
at the request of the Purchaser and in each case at the Purchaser's expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) apply for and use commercially reasonable efforts to obtain all such consents or approvals, in a form
satisfactory to the Purchaser, acting reasonably, provided that nothing herein shall require the Vendor to make any payment to any other
party to any of the Permits or Warranties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) cooperate with the Purchaser in any reasonable and lawful arrangements designed to provide the benefits
of such non-assignable Permits or Warranties to the Purchaser including, without limitation, holding any such Permits or Warranties in
trust for the Purchaser or acting as agent for the Purchaser, provided that pursuant to such arrangements the Purchaser will grant in
favour of the Vendor an indemnity for all obligations or liabilities incurred thereunder or in connection therewith after the Closing
Date.

8.5.4 Notwithstanding any other term or condition of this Agreement, on or before Closing all of the management
agreements and other agreements with parties not at arm's length to the Vendor which relate to the Property shall be terminated
and the Vendor shall be responsible for all costs associated with the termination of such management or other agreements.

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|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 41 |

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8.5.5 The failure by the Purchaser to obtain, before or after Closing, any Permits required for the Purchased
Assets, their ownership, their operation and the conduct of business at the Property shall not be a condition of Closing and shall not
entitle the Purchaser to terminate this Agreement or to any other right or remedy whatsoever.

8.5.6 From and after the Due Diligence Date, the Vendor and the Purchaser shall, at Purchaser's costs,
diligently take all steps required to allow all Permits to be transferred to the Purchaser, where applicable, or to allow the Purchaser
to obtain any Permits required from and after Closing.

**Article 9<br> General**

**Section 9.1 Applicable Law and Forum**

9.1.1 This Agreement shall be construed and enforced in accordance with the laws of the Province of Quebec and
the laws of Canada applicable in the Province of Quebec (excluding any conflict of laws rules or principles which might refer such interpretation
to the laws of another jurisdiction). Each Party irrevocably submits to the exclusive jurisdiction of the courts of Québec and
the judicial district of Montreal with respect to any matter arising hereunder.

**Section 9.2 Invalidity**

9.2.1 If any covenant, obligation, agreement or part thereof or the application thereof to any Person or circumstance,
to any extent, shall be invalid or unenforceable, the remainder of this Agreement or the application of such covenant, obligation or agreement
or part thereof to any Person, party or circumstance, other than those to which it is held invalid or unenforceable, shall not be affected
thereby. Each covenant, obligation and agreement in this Agreement shall be separately valid and enforceable to the fullest extent permitted
by law.

**Section 9.3 Amendment of Agreement**

9.3.1 No supplement, modification, waiver or termination (other than a termination pursuant to Section 4.3,
Section 5.3, Section 7.5, Section 8.2 or Section 8.3) of this Agreement shall be binding unless executed in writing
by the Parties hereto in the same manner as the execution of this Agreement.

**Section 9.4 Time of the Essence**

9.4.1 Time shall be of the essence of this Agreement and the transactions contemplated herein. If a Party is
bound to perform an obligation hereunder within a specific timeframe, the simple lapsing of time shall place that Party in default. Where
anything is required to be done under this Agreement on a day that is not a Business Day, then the day for such thing to be done shall
be the next following Business Day.

**Section 9.5 Further Assurances**

9.5.1 Each of the Parties hereto shall from time to time hereafter, and upon any reasonable request of the other,
execute and deliver, make or cause to be made, all such further acts, deeds, assurances and things as may be required or necessary to
more effectually implement and carry out the true intent and meaning of this Agreement.

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| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 42 |

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**Section 9.6 Entire Agreement**

9.6.1 This Agreement and any agreements, instruments and other documents herein contemplated to be entered into
between, by or including the Parties hereto constitute the entire agreement between the Parties hereto pertaining to the agreement of
purchase and sale provided for herein and supersede all prior agreements, understandings, negotiations and discussions, whether oral or
written, with respect thereto and there are no other conditions, warranties or representations and no other agreements between the Parties
hereto in connection with the agreement of purchase and sale provided for herein except as specifically set forth in this Agreement or
the Schedules attached hereto. For greater certainty, all disclosure made in or pursuant to this Agreement is subject to the provisions
of Section 4.5.

**Section 9.7 Waiver**

9.7.1 No waiver of any of the provisions of this Agreement shall constitute or shall be deemed to constitute
a waiver of any other provision (whether or not similar), nor shall any waiver constitute a continuing waiver unless otherwise expressed
or provided.

**Section 9.8 Effect of Termination of Agreement**

9.8.1 Notwithstanding the termination of this Agreement for any reason, the Purchaser shall remain obligated
to comply with its obligations to return documents (Section 4.5) and to repair and restore the Purchased Assets and to indemnify
the Vendor (Section 4.2) and all Parties shall remain obligated pursuant to the confidentiality provisions contained in Section 4.5.

**Section 9.9 Legal Fees/Real Estate Commission**

9.9.1 Each of the Parties hereto shall be responsible for its own fees and costs (including legal fees) incurred
in connection with the transaction contemplated herein.

9.9.2 The Vendor shall be responsible for any commissions payable to CBRE Limited, with respect to the transaction
contemplated under this Agreement and the Purchaser shall be responsible for any fees on commissions payable to other agents that it may
retain to act for it, or who introduce the Property to the Purchaser.

**Section 9.10 Solicitors as Agents and Tender**

9.10.1 Any notice, approval, waiver, agreement, instrument, document or communication permitted, required or
contemplated in this Agreement may be given or delivered and accepted or received by the Purchaser's Solicitors on behalf of the
Purchaser and by the Vendor's Solicitors on behalf of the Vendor and any tender of Closing Documents and the Balance may be made
upon the Vendor's Solicitors and the Purchaser's Solicitors, as the case may be.

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| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 43 |

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**Section 9.11 Survival**

9.11.1 Subject to Section 7.3 hereof, this Agreement and all covenants herein shall survive the Closing
Date and shall remain in full force and effect thereafter in accordance with its terms.

**Section 9.12 Successors and Assigns**

9.12.1 All of the covenants and agreements in this Agreement shall be binding upon the Parties hereto and their
respective successors and permitted assigns and shall enure to the benefit of and be enforceable by the Parties hereto and their respective
successors and permitted assigns.

**Section 9.13 Assignment**

9.13.1 Notwithstanding any other provision of this Agreement, the Purchaser shall not assign, directly or indirectly,
its rights and/or obligations hereunder (including the direction of legal or beneficial title to any Purchased Assets, or part thereof,
on Closing) without the prior written consent of the Vendor, which consent may be granted or withheld by the Vendor in its sole, absolute
and subjective discretion. Notwithstanding the foregoing, the Purchaser may assign this Agreement without the consent of the Vendor to
an Affiliate, provided that the initial Purchaser entity hereunder shall remain solidarily liable with such Affiliate for all obligations
and liabilities to the Vendor under this Agreement.

**Section 9.14 Privacy Legislation**

9.14.1 Each of the parties shall comply with all federal and provincial privacy legislation now or hereinafter
in effect with respect to all information, documents, agreements and/or reports whatsoever provided by or on behalf of one of the parties
hereto to the other, and each Party shall indemnify the other from and against any and all costs, expenses, losses, claims or liabilities
whatsoever which such other Party may incur as a result of any violation of any privacy legislation by the breaching Party or those for
whom it is in law responsible.

**Section 9.15 Notice**

9.15.1 Any notice to be given by either Party hereto to the other pursuant to this Agreement shall be in writing
and delivered by hand, courier or electronic transmission with receipt confirmed by the recipient ()"**email**") addressed
to:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Purchaser at: | Enovum Data Centers MTL II, L.P.<br> D-3195 RD Bedford Montréal (Québec) H3S 1G3 Canada<br> Attention: Bryan Bullet / Simon Hamelin-Choquette<br> E-mail: bryan@bit-digital.com /<br> shchoquette@enovumdc.com  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to: | Davies Ward Phillips & Vineberg LLP<br> 1501 McGill College Avenue<br> Montréal, QC, H3A 3N9<br> Canada<br> 27<sup>th</sup> Floor<br> Attention: Florence Simard / Matthew Hendy<br> E-mail: fsimard@dwpv.com / mhendy@dwpv.com  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the Vendor at: | ARE-Canada No. 5 Holdings, ULC<br> 26 North Euclid Avenue Pasadena, CA 91101<br> Attention: Corporate Secretary<br> Email: ACQLegal@are.com  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to: | Fasken Martineau DuMoulin LLP<br> 800 Square Victoria<br> Suite 3500<br> Montréal, Québec H4Z 1E9<br> Attention: Richard Clare / Mathieu Renaud<br> Email: rclare@fasken.com /<br> mrenaud@fasken.com |

---

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| |
|:---|
| **Agreement of Purchase and Sale** |
| Sale of 7300 Trans-Canada Highway, Point-Claire |
| Page 44 |

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9.15.2 Any notice delivered by hand or courier shall be deemed to be received when left during normal business
hours at the office set forth above. Any notice delivered by email prior to 5:00 p.m. (Montreal time) shall be deemed to have been delivered
on the day of transmission by email, and otherwise on the following Business Day. All deliveries made by email shall only be deemed delivered
upon confirmation of receipt by an addressee. Either Party shall be entitled to change its address for notice to an address elsewhere
by notice in writing to the other.

**Section 9.16 Disclaimer of Partnership**

9.16.1 The Vendor and Purchaser expressly disclaim any intention to create a partnership with respect to the
Property. Nothing in this Agreement shall constitute the Parties partners, nor constitute either of them the agent of the other.

**Section 9.17 Rights of Parties Independent**

9.17.1 The rights available to the Parties under this Agreement and at law shall be deemed to be several and
not dependent on each other and each such right shall be accordingly construed as complete in itself and not by reference to any other
such right. Any one or more and/or any combination of such rights may be exercised by a Party from time to time and, subject to the provisions
of this Agreement and no such exercise shall exhaust the rights of such Party or preclude any other Party from exercising any one or more
of such rights or combination thereof from time to time thereafter or simultaneously.

**Section 9.18 No Registration of Agreement**

9.18.1 The Purchaser shall not register this Agreement or any notice of this Agreement on title to the Lands.

**Section 9.19 Counterparts**

9.19.1 This Agreement may be executed in any number of counterparts, all of which taken together constitute one
and the same instrument and each of which may be transmitted by any means, including electronic means.

**Section 9.20 Language**

9.20.1 The Parties have requested that this Agreement and any other agreements, documents or notices relating
hereto be prepared in English. *Les Parties ont requis que cette entente ainsi que les autres ententes, documents ou avis qui s'y rapportent soient rédigés en anglais.* 

[the remainder of this page is intentionally left blank]

**IN WITNESS WHEREOF** the Parties hereto have executed this Agreement by their properly authorized officers as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| **ARE-CANADA NO. 5 HOLDINGS, ULC** | **ARE-CANADA NO. 5 HOLDINGS, ULC** | **ARE-CANADA NO. 5 HOLDINGS, ULC** |
| Per: | /s/ Gregory S. Kay | /s/ Gregory S. Kay |
|  | Name: | Gregory S. Kay |
|  | Title: | Senior Vice President |
| Per: | /s/ Erke Huang | /s/ Erke Huang |
|  | Name: | Erke Huang |
|  | Title: | Vice-President and Secretary |

---

---

| | | |
|:---|:---|:---|
| **ENOVUM DATA CENTERS MTL II, L.P.**,<br> acting and represented by its sole general<br> partner, **ENOVUM MTL II GP INC.** | **ENOVUM DATA CENTERS MTL II, L.P.**,<br> acting and represented by its sole general<br> partner, **ENOVUM MTL II GP INC.** | **ENOVUM DATA CENTERS MTL II, L.P.**,<br> acting and represented by its sole general<br> partner, **ENOVUM MTL II GP INC.** |
| Per: | /s/ Erke Huang | /s/ Erke Huang |
|  | Name: | Erke Huang |
|  | Title: | Vice-President and Secretary |

---

## Exhibit 10.8

**Exhibit 10.8**

**EMPLOYMENT AGREEMENT**

This Employment Agreement ("***Agreement***") is entered into effective as of March 31, 2021 (the "***Effective Date***") by and between Bit Digital, Inc., incorporated under the laws of the Cayman Islands (the "***Company***"), and Sam Tabar ("***Executive***"). For purposes of this Agreement, the Company and Executive are each a "***party***" and, collectively, the "***parties***". In consideration of the mutual promises and covenants contained in this Agreement, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Agreement to Employ***. The Company desires to secure the services of Executive as its Chief Strategy Officer. The Company and Executive desire to enter into this Agreement to, among other things, set forth the terms of Executive's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Term of Agreement***. Subject to earlier termination pursuant to Section 8 below, the employment relationship created hereunder shall continue from the Effective Date until March 30, 2023 (the "***Initial Term***"). The term of employment shall, on each annual anniversary of the Effective Date thereafter, be deemed to be automatically renewed and extended, upon the same terms and conditions, for a successive period of one year (each a "***Renewal Term***"), unless either party, at least ninety (90) calendar days prior to the expiration of the Initial Term or any Renewal Term, shall give written notice to the other of its or his intention not to renew such employment term (a "***Non-Renewal Notice***"). The period during which Executive is employed under this Agreement (including any Renewal Terms) will be referred to as the "***Employment Period***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Surviving Agreement Provisions***. Notwithstanding any provision of this Agreement to the contrary, the parties' respective rights and obligations under Sections 6 through 12 shall survive any termination or expiration of this Agreement or the termination of Executive's employment for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Services to be Provided by Executive***.

&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) **Position and Responsibilities**. Subject to the Agreement's terms, Executive agrees to serve the Company as its Chief Strategy Officer. The Board of Directors of the Company (the "***Board***") shall take all action necessary to appoint Executive as Chief Strategy Officer effective as of the Effective Date. Executive shall have the duties and privileges customarily associated with an executive occupying such role at a publicly-traded company, and shall have all powers and authority customarily associated with such role, or necessary and/or desirable to protect and advance the best interests of the Company. Unless agreed to in writing by Executive, Executive shall also be Chief Strategy Officer of each of the Company's subsidiaries. During the Term, Executive shall be permitted to engage in such other business, personal, charitable, civic and other activities as Executive desires; provided that such activities do not directly compete with the business 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) **Executive's Office Location**. Executive's primary office location shall be New York, New York; provided, however, that Executive may work out of any location Executive desires (including without limitation Executive's home).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Compensation for Services***. As compensation for the services Executive will perform under this Agreement during the Employment Period, the Company will pay Executive 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;(a) **Base Salary**. Executive shall receive an annual salary of one hundred twenty-five thousand dollars ($125,000), payable no less frequently than semi-monthly in accordance with the Company's regular payroll practices (the "***Base Salary***"). The Base Salary may be increased in the discretion of the Board, but not decreased. If increased, the increased amount shall constitute Base Salary for purposes of this Agreement. During the Renewal Term, Executive shall receive the same rate of Base Salary as in effect immediately prior to the commencement of such Renewal Term. Executive's compensation shall be subject to all appropriate federal and state withholding taxes.

&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) **Bonuses**. Executive shall be eligible for a cash bonus each calendar year during the Employment Period (each a "***Bonus Year***") based on a bonus program to be established by the Board with input from Executive. It is expected that such bonus program will provide Executive a cash bonus each Bonus Year, in the discretion of the Board, based on such targets and performance criteria as shall be established by the Board in its discretion after consultation with Executive. Any bonus with respect to a Bonus Year shall be paid to Executive no later than March 15 of the year following the Bonus 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;(c) **Equity Award**. Executive is hereby awarded 120,765 restricted stock units ("***RSUs***"), which represent a number of shares of common stock, $0.001 par value ("***Common Shares***") equal to 0.25% of the Company's outstanding shares of common stock as of the date hereof, which shall be subject to the terms and conditions of the restricted stock unit award agreement attached hereto as <u>Exhibit A</u> (the "***RSU Award 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) **Vacation**. Executive shall accrue four (4) weeks' vacation on the Effective Date and on the first day of each calendar year during the Employment Period thereafter. Vacation days shall be taken at such times and intervals as shall be determined by Executive, subject to the reasonable business needs 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;(e) **Reimbursement of Ordinary Business Expenses**. The Company shall reimburse Executive for all reasonable business expenses in accordance with Company policies and procedures as may be in effect 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;(f) **Life Insurance**. During the Employment Period, the Company will pay or reimburse Executive for the cost of a life insurance policy having a face amount of $2,000,000. Executive shall be the owner of such policy and shall be entitled to name the beneficiary(ies) 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;(g) **Other Benefits and Perquisites**. As soon as practicable following the Effective Date, the Company shall establish, and Executive shall be entitled to participate in, health, dental and vision coverage plans reasonably acceptable to Executive. Executive shall be entitled to participate in all benefit plans and arrangements provided by the Company for all employees generally, and for the Company's executive employees, including plans and arrangements providing health, disability, dental, vision and retirement benefits or coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***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;(a) **Confidential Information**. Executive hereby agrees at all times during and after the Employment Period, to hold in the strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, corporation or other entity without prior written consent of the Company, any Confidential Information. "***Confidential Information***" for this purpose means any proprietary or confidential information of the Company, its affiliates, or their respective clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes, formulas, technology, designs, hardware, configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures, franchisees, distributors and other persons with whom the Company does business, information regarding the skills and compensation of other employees of the Company or other business information disclosed to Executive by or obtained by Executive from the Company, its affiliates, or their respective clients, customers or partners, either directly or indirectly, in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential. Notwithstanding the foregoing, Confidential Information shall not include information that: (i) prior to disclosure, is or was known or generally available to the public; (ii) after disclosure, become known to the public through no act or omission of Executive or any other person or entity with an obligation of confidentiality to the Company; (iii) is or was independently developed by Executive, without the use of or reference to Confidential Information of the Company; or (iv) is required to be disclosed pursuant to an applicable law, rule, regulation, government requirement or court order, or the rules of any stock exchange (provided however, Executive shall advise the Company of such required disclosure promptly upon learning thereof in order to afford the Company a reasonable opportunity to contest, limit and/or assist Executive in crafting such disclosure and shall cooperate with the Company concerning any such attempt to contest, limit or craft the disclosure).

&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) **Company Property**. Executive understands that all documents (including computer records, facsimile and e-mail but excluding Executive's personal email and other electronic communication and messaging accounts) and materials created, received or transmitted in connection with his work or using the facilities of the Company are property of the Company and subject to inspection by the Company at any time. Upon request of the Company following termination of Executive's employment with the Company, Executive will promptly deliver to the Company all material documents pertaining to his work with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Non-solicitation***. In consideration for (i) the Company's promise to provide Confidential Information to Executive and Executive's return promise to hold the Company's Confidential Information in trust, (ii) the substantial economic investment made by the Company in the Confidential Information and goodwill of the Company, and the business opportunities disclosed or entrusted to Executive, (iii) the compensation and other benefits provided by the Company to Executive, and (iv) the Company's employment of Executive pursuant to this Agreement, and to protect the Company's Confidential Information, customer relationships, and goodwill, Executive agrees that, during the Employment Period and for a period of twelve (12) months immediately following the date of Executive's termination from employment, other than in connection with his authorized duties under this Agreement, Executive shall not, directly or indirectly, either as a principal, manager, agent, employee, consultant, officer, director, stockholder, partner, investor, owner, or lender or in any other capacity, and whether personally or through other persons or entities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Solicit business from, interfere with, attempt to solicit business with, or do business with any customer of the Company with whom the Company did business or who the Company solicited within the preceding twelve (12) months, and who or which Executive contacted, called on, serviced or did business with during Executive's employment at the Company (and not at any time prior to commencement of the Employment Period). This restriction in this Section 7(a)(i) only prohibits soliciting, attempting to solicit or transacting business for any person or entity, other than the Company, engaged in the business of mining bitcoin; 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;(ii) Solicit, induce or attempt to solicit or induce, engage or hire, on behalf of himself or any other person or entity, any person who is an employee or consultant of the Company or who was employed by the Company within the preceding twelve (12) months (general advertisements and similar solicitations not directed at any specific individuals shall not be considered solicitation for this purpose).

Notwithstanding the foregoing, the restrictions contained in this Section shall not apply to Bryan Bullett.

The provisions contained in this Section 7 are considered reasonable by Executive and the Company. In the event that any such provisions should be found to be void under applicable laws but would be valid if some part thereof was deleted or the period or area of application reduced, such provisions shall apply with such modification as may be necessary to make them valid and effective. In the event Executive breaches this Section 7, Executive acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate). In any event, the Company shall have right to seek all remedies permissible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Termination of Agreement****.* The employment relationship between Executive and the Company created under this Agreement shall terminate before the expiration of the stated term of this Agreement upon the occurrence of any one of the following events:

&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) **Death**. Executive's employment shall be terminated effective on the death of Executive.

&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) **Termination by the Company for Cause**. The Company may terminate Executive's employment hereunder for Cause at any time, subject to the notice requirements below. For purposes of this Agreement, the term "***Cause***" shall mean any of 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) Executive shall have been convicted of, or have entered a plea of nolo contendere or the equivalent in respect of a charge of, any criminal act constituting a felony under the laws of the United States or any state or political subdivision 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any conduct, action or behavior by Executive involving gross negligence or willful misconduct that has a material adverse effect on the reputation or interests of the Company.

For purposes hereof, an act or omission shall not be deemed to be willful if taken or omitted in the good faith belief that such act or omission was in, or not opposed to, the best interests of the Company. Anything herein to the contrary notwithstanding, the Executive's employment shall not be terminated for Cause, within the meaning of clause (ii) above unless written notice stating the basis for the termination is provided to the Executive and the Executive (together with his own counsel) has an opportunity to be heard before the Board and, after such hearing, a majority of the Board duly votes to terminate him for Cause. No event or condition under clauses (i) or (ii) above shall constitute Cause unless such written notice is provided to Executive within thirty (30) days after any member of the Board first has knowledge of such event or condition. No assertion of Cause may be made while a basis for the Executive to resign for Good Reason (as defined below) exists or on or after Executive has notified the Company that a basis for resignation for Good Reason 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;(c) **Termination by the Company Without Cause**. The Company may terminate Executive's employment at any time upon thirty (30) days written notice to Executive 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;(d) **Termination by Executive**. Executive may terminate his employment for any reason at any time upon thirty (30) days written notice to the Company. The Executive may also terminate his employment for "Good Reason" (as defined herein). For purposes of this Agreement, the term "***Good Reason***" shall mean the occurrence of any of the following without the Executive'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;(i) a material diminution of the Executive's duties or responsibilities as set forth 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material interference with the Executive's ability to carry out his duties and responsibilities hereunder, including without limitation the Company's failure or refusal to provide Executive with sufficient resources to carry out his duties and responsibilities 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;(iii) Executive's inability to certify any financial statements or governmental filing due to the Company's failure or refusal to provide adequate accounting, legal or other professional resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 assignment to the Executive of duties which are materially inconsistent with his duties or which materially impair the Executive's ability to function as the Company's Chief Strategy Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a change in the reporting structure so that (A) the Executive does not report solely and directly to the Board or (B) any employee of the Company or any of the Company's subsidiaries does not report directly or indirectly to the Executive; 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;(vi) any breach (not otherwise included or specified in this Section 8(d)) by the Company of any material provision of this Agreement, the RSU Award Agreement, the Indemnification Agreement set forth as <u>Exhibit B</u> hereto, or any other agreement between the Company and Executive, including without limitation the failure of the Company to pay or provide the compensation and benefits provided under Section 5 hereof or a failure of the Company to timely fulfill its obligations under Section 10(j) of this Agreement or Section 11 of the Indemnification Agreement.

Notwithstanding anything contained herein to the contrary, the Executive's employment shall not be terminated for Good Reason unless (i) the Executive provides written notice to the Company of the event or condition alleged to constitute Good Reason stating the basis of such termination and the Company is given thirty (30) days after receipt of such notice to cure the action that is the basis of such claim, and if the Company fails to cure such action to the reasonable satisfaction of Executive within such thirty (30) day period, the Executive actually terminates his employment within thirty (30) days following such thirty (30) day 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;(e) **Notice of Termination**. Any termination of the Executive's employment hereunder (other than as a result of the death of the Executive or as a result of the expiration of the Initial Term or any Renewal Term if either party has given a Non-Renewal Notice to the other), whether by the Company or by the Executive, shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a "***Notice of Termination***" shall mean a written notice that shall indicate (i) the specific termination provision in this Agreement relied upon and, other than in the case of a resignation by the Executive without Good Reason, shall set forth in reasonable detail the basis for termination of the Executive's employment under the provision so indicated and (ii) the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Compensation Upon Termination for Any Reason****.* Upon the termination of Executive's employment under this Agreement, Executive shall be entitled 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;(a) **Termination by the Company for Cause or as a Result of the Resignation of Executive**. In the event that Executive's employment is terminated by the Company for Cause, or as a result of Executive's resignation, the Company shall, in addition to any benefits provided under any employee benefit plan or program of the Company, pay the following amounts to Executive (or his estate or other legal representative, as the case may be) within the time period required by applicable law (and in all events within thirty (30) days 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;(i) any accrued but unpaid Base Salary (as determined pursuant to Section 5(a) hereof) for services rendered to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any earned, but unpaid, bonus for services rendered during the year preceding 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any accrued, unused vacation or paid time off; 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) any accrued but unpaid expenses required to be reimbursed pursuant to Section 5(e) hereof.

The amounts described in clauses (i) through (iv) above, together with benefits provided under any employee benefit plan or program of the Company, shall be referred to herein as 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;(b) **Termination by Reason of Death of Executive**. In the event that Executive's employment is terminated by reason of Executive's death, the Company shall pay the Accrued Obligations to Executive's estate within the time period required by applicable law (and in all events within thirty (30) days 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;(c) **Termination by the Company Without Cause, or by the Executive for Good Reason, or Upon Non-Renewal By the Company**. In the event that Executive's employment is terminated by the Company without Cause or by the Executive for Good Reason, or as a result of expiration of the Employment Period by reason of the Company's issuance of a Non-Renewal Notice, the Company shall pay and/or provide the following amounts to Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Accrued Obligations within the time period required by applicable law (and in all events within thirty (30) days of such termination), except for employee benefits that shall be provided in accordance with the terms applicable to such benefits; 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) all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company shall pay Executive a single lump sum cash amount on the next regularly scheduled payroll date following Executive's date of termination, in an amount equal to twenty-four (24) months of Base Salary. Notwithstanding the foregoing, if the Executive's employment terminates under the circumstances of this Section 9(c) in connection with, or within twenty-four (24) months following, a "Change in Control" (as defined below), then "thirty-six (36)" shall be substituted for "twenty-four (24)" in the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company shall pay Executive a single lump sum cash amount on the next regularly scheduled payroll date following Executive's date of termination equal to a pro-rata portion (based on the number of days elapsed in the applicable fiscal year of the Company until the date of Executive's date of termination divided by 365) of Executive's most recent annual bonus, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) All equity awards granted to Executive, including without limitation the RSUs awarded pursuant to Section 5(c) hereof, shall be fully and immediately vested, to the extent not previously vested. To the extent that Executive holds any stock options or other stock rights issued by the Company, such options or rights shall remain exercisable for the full (10-year) term thereof. Shares with respect to RSUs that become vested hereunder shall be delivered to Executive within ten (10) days following Executive's 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Company shall provide Executive with continued healthcare coverage under the Company's group health plan (or comparable coverage) for twenty-four (24) months following Executive's date of termination; provided, however, that if the Executive's employment terminates under the circumstances of this Section 9(c) in connection with, or within twenty-four (24) months following, a Change in Control, then the Company shall provide Executive with continued healthcare coverage under the Company's group health plan (or comparable coverage) for a period of thirty-six (36) months following Executive's date of termination.

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;(i) a "***Change in Control***" shall be deemed to have occurred if any one of the following events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any "Person" (as defined below) becomes the beneficial owner (as defined in Rule 13(d)-3 under the Securities Exchange Act of 1934, as amended (the "***Exchange Act***")) of shares of Common Stock representing more than 50% of the total number of votes that may be cast for the election 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The consummation of any merger or other business combination of the Company, sale of all or substantially all of the Company's assets or combination of the foregoing transactions (a "***Transaction***"), other than a Transaction involving only the Company and one or more of its subsidiaries, or a Transaction immediately following which the shareholders of the Company immediately prior to the Transaction continue to have a majority of the voting power in the resulting 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Within any 12-month period beginning on or after the Effective Date, the persons who were directors of the Company immediately before the beginning of such period (the "***Incumbent Directors***") shall cease (for any reason other than death) to constitute at least a majority of the Board (or the board of directors of any successor to the Company); provided that any director who was not a director as of the date hereof shall be deemed to be an Incumbent Director if such director was elected to the Board by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually or by prior operation of the foregoing unless such election, recommendation or approval was the result of an actual or threatened election contest of the type contemplated by Rule 14a-11 promulgated under the Exchange Act or any successor provision; 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;(4) the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, a Change in Control shall not occur merely as a result of the Company's anticipated creation of a super-voting class of stock during the second quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "***Person***" shall mean any individual, partnership, firm, trust, corporation, limited liability company or other similar entity. When two or more Persons act as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of Common Stock, such partnership, limited partnership, syndicate or group shall be deemed a "Person".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Other Provisions*.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Remedies; Legal Fees**. Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement, specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The prevailing party shall be entitled to attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Limitations on Assignment**. No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company without the Executive'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;(c) **No Mitigation or Offset**. In the event of termination of the Executive's employment for any reason, the Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due to him on account of any remuneration or benefits from any subsequent employment that he may 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;(d) **Notices**. Any notice or other communication required, permitted or desired to be given under this Agreement shall be deemed delivered when personally delivered; the business day, if delivered by overnight courier; the same day, if transmitted by facsimile on a business day before noon, Eastern Standard Time; the next business day, if otherwise transmitted by facsimile; and the third business day after mailing, if mailed by prepaid certified mail, return receipt requested, as addressed or transmitted as follows (as applicable):

If to Executive, at the address set forth below Executive's signature hereto.

With a copy to:

Andrew E. Graw, Esq.

Lowenstein Sandler LLP

One Lowenstein Drive

Roseland, New Jersey 07068

Tel: 973.597.2588

Fax: 073.597.2589

Email: agraw@lowenstein.com

If to the Company:

Bit Digital, Inc.

33 Irving Place

New York, New York 10003

Attn: Erke Huang

Tel: (347) 328-3860

Email: erkeh@bitdigital.com

With a copy to:

Elliot H. Lutzker, Esq.

Davidoff Hutcher & Citron LLP

605 Third Avenue, 34th Floor

New York, New York 10158

Tel: (212) 557-7200

Fax: (212) 286-1884

Email: ehl@dhclegal.com

&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) **GOVERNING LAW; VENUE**. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflict of laws (rules) or choice of laws (rules) thereof. The exclusive venue for all suits or proceedings arising from or related to this Agreement shall be in a court of competent jurisdiction located in New York City, New York.

&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) **Waiver**. A party's waiver of any breach or violation of any Agreement provisions shall not operate as, or be construed to be, a waiver of any later breach of the same or other Agreement 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;(g) **Entire Agreement**, **Amendment, Binding Effect**. This Agreement constitutes the entire agreement between the parties concerning the subject matter in this Agreement. No oral statements or prior written material not specifically incorporated in this Agreement shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized, unless incorporated in this Agreement by written amendment, such amendment to become effective on the date stipulated in it. Any amendment to this Agreement must be signed by each party to this Agreement. This Agreement will be binding on and inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives, and permitted assigns (if any). This Agreement supersedes any prior agreements between Executive and the Company concerning the subject matter 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) **Company's Non-Disclosure Obligation**. The Company shall, and shall cause its and its affiliates' and their respective directors, officers, employees, agents and representatives, to keep and maintain this Agreement and the Exhibits hereto confidential and shall not, without the advance written consent of Executive, disclose the Agreement and such Exhibits except (i) to the extent required to be disclosed pursuant to an applicable law, rule, regulation, government requirement or court order, or the rules of any stock exchange, or (ii) as reasonably required to administer and effectuate the terms hereof or thereof or to enforce the terms hereof or thereof; provided, however, that the Company may disclose the terms of this Agreement and the Exhibits hereto to members of the Board, the Company's CEO, Chief Financial Officer, the Company's attorneys, accountants and other professionals and anyone else from whom the Company obtains a written non-disclosure agreement, provided that all such individuals (and their firms if applicable) are subject to written confidentiality obligations with respect to the Agreement and such Exhibits that are at least as strong as those set forth 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;(i) **Counterparts**. This Agreement may be executed in counterparts, with the same effect as if both parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument.

&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) **Indemnification; D&O Coverage**. The Company and Executive shall enter into and execute the Indemnification Agreement set forth in <u>Exhibit B</u> hereto. The Company shall maintain a directors' and officers' liability insurance policy covering Executive in an amount and on terms and conditions (including without limitation, with respect to scope, exclusions, sub-amounts and deductibles) reasonably acceptable to Executive. The Company shall further secure its obligations under the Indemnification Agreement through such means as the Executive reasonably requires, and in such sums as Indemnitee shall reasonably require, including without limitation through an irrevocable bank line of credit, letter(s) of credit, surety bond, funded trust or other collateral or retainer to counsel of Executive's choosing. The Company shall bear all costs incurred by the Company and Executive in connection with establishing any such arrangements. Any such security, once provided, may not be revoked or released without the prior written consent of Executive. The Company shall provide such security within sixty (60) days after a request for such security is made by Executive.

&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) **Attorney's Fees**. The Company agrees to pay or reimburse Executive for reasonable attorney's fees incurred by Executive in connection with this Agreement and the related agreements and matters. Such payment will be made promptly following execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Transferable Shares***. The Company shall take all measures needed to ensure that all shares of Common Stock delivered by the Company to Executive upon vesting of the RSUs or in connection with any other equity awards made to Executive by the Company shall (i) not contain any legends, and (ii) shall be freely transferable (including in publicly traded open market transactions) by Executive upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Section 280G 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;(a) Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its affiliates to Executive or for Executive's benefit pursuant to the terms of this Agreement or otherwise, including without limitation the RSU Award Agreement ("***Covered Payments***") constitute parachute payments ("***Parachute Payments***") within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the "***Code***") and will be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any interest or penalties with respect to such excise tax (collectively, the "***Excise Tax***"), then the Company shall pay to Executive, no later than the time the Excise Tax is required to be paid by Executive or withheld by the Company, an additional amount (the "***Gross-up Payment***") equal to the sum of the Excise Tax payable by Executive, plus the amount necessary to put Executive in the same after-tax position (taking into account any and all applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and any income and employment taxes imposed on the Gross-up Payment)) that Executive would have been in if Executive had not incurred any tax liability 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;(b) The determination of whether a Gross-up Payment will be required, and of the amount of such Gross-up Payment, shall initially be made (at the Company's expense) by a nationally recognized registered public accounting firm reasonably acceptable to the Company and Executive prior to the time the Excise Tax is required to be paid by Executive or withheld by the Company, and shall be made applying the assumptions that Executive will pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the Gross-up Payment is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of Executive's residence at the time. In light of the uncertainty in applying Sections 280G and 4999 of the Code, if it is subsequently determined that the Gross-up Payment is not sufficient to put Executive in the same after-tax position (taking into account any and all applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax and such taxes imposed on the Gross-up Payment)) that Executive would have been in if Executive had not incurred the Excise Tax, then the Company shall promptly pay to or for the benefit of Executive such additional amounts necessary to put Executive in the same after-tax position that Executive would have been in if the Excise Tax had not been imposed. In the event that a written ruling of the Internal Revenue Service ("***IRS***") is obtained by or on behalf of the Company or Executive, which provides that Executive is not required to pay, or is entitled to a refund with respect to, all or a portion of the Excise Tax, then Executive shall reimburse the Company in an amount equal to the Gross-up Payment, less any amounts which remain payable by or are not refunded to Executive, within sixty (60) days of the date of the IRS determination or the date Executive receives the refund, as applicable. Executive and the Company shall reasonably cooperate with each other in connection with any administrative or judicial proceedings concerning the existence or amount of liability for the Excise Tax; provided that, if the Company decides to contest a claim by the IRS relating to the Excise Tax, then the Company shall bear and pay directly or indirectly all costs and expenses (including any additional interest and penalties and any legal and accounting fees and expenses) incurred in connection with such action and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of the Company's action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***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;(a) The parties hereto intend that all payments and benefits to be made or provided to Executive hereunder and under any Plan (as defined in clause (g) below) will either be exempt from Section 409A (as defined in clause (g) below) or be paid or provided in compliance with all applicable requirements of Section 409A, and the provisions of this Agreement and of each Plan (to the extent they relate to Executive's entitlements under such Plan) shall be construed and administered in accordance with such intent. In furtherance of the foregoing, the provisions set forth below shall apply notwithstanding any other provision in this Agreement, or (where applicable) any provision in any Plan, 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;(b) All payments to be made to Executive hereunder or under any Plan, to the extent they constitute a deferral of compensation subject to the requirements of Section 409A (after taking into account all exclusions applicable to such payments under Section 409A), shall be made no later, and shall not be made any earlier, than at the time or times specified herein or in any Plan for such payments to be made, except as otherwise permitted or required under Section 409A.

&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 date of Executive's "separation from service", as defined in Section 409A (and as determined by applying the default presumptions in Treas. Reg. §1.409A-1(h)(1)(ii)), shall be treated as the date of his termination of employment for purposes of determining the time of payment of any amount that becomes payable to Executive hereunder and under any Plan upon his termination of employment and that is properly treated as a deferral of compensation subject to Section 409A after taking into account all exclusions applicable to such payment under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent any payment or delivery otherwise required to be made to Executive hereunder or under any Plan on account of his separation from service is properly treated as a deferral of compensation subject to Section 409A after taking into account all exclusions applicable to such payment and delivery under Section 409A, and if the Executive is a "specified employee" under Section 409A at the time of his separation from service, then such payment and delivery shall not be made until the first business day after the earlier of (i) the expiration of six months from the date of Executive's separation from service, or (ii) the date of his death (such first business day, the "***Delayed Payment Date***"). On the Delayed Payment Date, there shall be paid or delivered to the Executive or, if he has died, to his estate, in a single payment or delivery (as applicable) all entitlements so delayed, and in the case of cash payments, in a single cash lump sum, an amount equal to aggregate amount of all payments delayed pursuant to the preceding sentence, plus interest thereon at the Delayed Payment Interest Rate (as defined below) computed from the date on which each such delayed payment otherwise would have been made to Executive until the Delayed Payment Date. For purposes of the foregoing, the "***Delayed Payment Interest Rate***" shall mean the national average annual rate of interest payable on jumbo six-month bank certificates of deposit, as quoted in the business section of the most recently published Sunday edition of The New York Times preceding the Executive's 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;(e) In the case of any amounts payable to Executive under this Agreement, or under any Plan, that may be treated as payable in the form of "a series of installment payments", as defined in Treas. Reg. §1.409A-2(b)(2)(iii), (A) Executive's right to receive such payments shall be treated as a right to receive a series of separate payments for purposes of Treas. Reg. §1.409A-2(b)(2)(iii), and (B) to the extent any such existing Plan does not already so provide, it is hereby amended to so provide, with respect to amounts that may become payable to Executive 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;(f) The Company agrees that at all times during the Term, it will maintain each Plan in documentary and operational compliance with all requirements under Section 409A, in so far as such requirements are applicable to the payments or benefits to be made or provided to Executive under such Plan. The Company further agrees that to the extent permitted under 409A, this Agreement, and the terms of any Plan (to the extent they relate to the Executive's entitlements under such Plan) shall be modified, as reasonably requested by the Executive, to the extent necessary to comply with all applicable requirements of, and to avoid the imposition of any additional tax, interest and penalties under, Section 409A in connection with, the benefits and payments to be provided or paid to Executive hereunder or under such Plan. Any such modification shall maintain the original intent and economic benefit to Executive of the applicable provision of this Agreement or such Plan, to the maximum extent possible without violating any applicable requirement of Section 409A. Any such modification to the terms of any Plan may be made by means of a separate written agreement between the Company and Executive so as to limit the applicability of such modification to just the payments or benefits to be provided to Executive under such 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;(g) For purposes of the foregoing, the following terms shall have the following 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;(1) "***Plan***" shall mean any plan, program, agreement (other than this Agreement) or other arrangement maintained by the Company or any of its affiliates that is a "nonqualified deferred compensation plan" within the meaning of Section 409A and under which any payments or benefits are to be made or provided to Executive, to the extent they constitute a deferral of compensation subject to the requirements of Section 409A after taking into account all exclusions applicable to such payments under Section 409A.

&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) "***Section 409A***" shall mean section 409A of the Code, the regulations issued thereunder and all notices, rulings and other guidance issued by the Internal Revenue Service interpreting same.

***[Signature Page Follows]***

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first indicated above.

---

| | |
|:---|:---|
| **THE COMPANY**: | **THE COMPANY**: |
| BIT DIGITAL, INC. | BIT DIGITAL, INC. |
| By: | /s/ Erke Huang |
| Name: | Erke Huang |
| Title: | Chief Financial Officer |

---

---

| |
|:---|
| **EXECUTIVE**: |
| */s/ Sam Tabar* |
| Sam Tabar |

---

 <br> Address: <br>  

**<u>EXHIBIT A</u>**

RESTRICTED STOCK UNIT AWARD AGREEMENT

**<u>EXHIBIT B</u>**

INDEMNICATION AGREEMENT

**AMENDMENT TO<br> EMPLOYMENT AGREEMENT**

AMENDMENT TO EMPLOYMENT AGREEMENT dated as of March 1, 2021, effective as of January 1, 2022 (the "Effective Date") by and between Bit Digital, Inc., a Cayman Islands exempted company, with its principal business at 33 Irving Place, New York, New York 10003 (the "Company") and Sam Tabar, with an address at 170 N. 5th Street, Brooklyn, New York 11211 (the "Executive").

**<u>W I T N E S S E T H :</u>**

**WHEREAS**, the Company and the Executive entered into an Employment Agreement dated as of March 1, 2021 (the "Agreement");

**WHEREAS**, the Company has migrated most of its operations out of China to New York State; and

**WHEREAS**, the Executive has played a substantial role in the migration which is currently being completed.

**NOW, THEREFORE**, in consideration of the mutual premises and covenants and agreements contained herein and for other good and valuable consideration by each of the parties, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The first sentence of Section 5(a) Base Salary is hereby amended to read as follows:

"Executive shall receive an annual salary of Five Hundred Thousand ($500,000) Dollars commencing January 1, 2022 through the end of the Initial Term, payable no less frequently than semi-monthly in accordance with the Company's regular payroll practice (the "Base Salary")."

Except as set forth herein, the Agreement remains in full force and effect.

**IN WITNESS WHEREOF**, the parties hereto have duly executed this Amendment as of the 6<sup>th</sup> day of January 2022.

---

| | | | |
|:---|:---|:---|:---|
| "EXECUTIVE" | BIT DIGITAL, INC. | BIT DIGITAL, INC. | BIT DIGITAL, INC. |
| */s/ Sam Tabar* | By: | */s/ Erke Huang* | */s/ Erke Huang* |
| Sam Tabar |  | Name: | Erke Huang |
|  |  | Title: | Chief Financial Officer and Director |

---

**AMENDMENT NO. 2 TO<br> EMPLOYMENT AGREEMENT**

AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT (the "Amendment") dated as of March 1, 2021, as previously amended as of January 1, 2022 and amended herein as of March 31, 2023 (the "Effective Date") by and between Bit Digital, Inc., a Cayman Island exempted company, with its principal business at 33 Irving Place, New York, New York 10003 (the "Company") and Sam Tabar, with an address at 170 N. 5th Street, Brooklyn, New York 11211 (the "Executive").

**<u>W I T N E S S E T H :</u>**

**WHEREAS**, the Company and the Executive entered into an Employment Agreement dated as of March 1, 2021 (the "Agreement");

**WHEREAS**, the Company and the Executive entered into an Amendment to Employment Agreement effective as of the January 1, 2022;

**WHEREAS**, the Executive has played a substantial role in the growth of the Company;

**WHEREAS**, the Company desires to extend the term of the Agreement for an additional two (2) years with the Executive assuming the role of Chief Executive Officer upon the terms and conditions set forth in the Amendment; and

**WHEREAS**, the Executive desires to assume the position of Chief Executive Officer upon the execution of this Amendment.

**NOW, THEREFORE**, in consideration of the mutual premises and covenants and agreements contained herein and for other good and valuable consideration by each of the parties, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section 1. <u>Agreement to Employment</u>. The first sentence is hereby amended to read as follows: "The Company desires to secure the services of Executive as Chief Executive Officer."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Section 2. <u>Term of Agreement</u> is amended to read as follows: "Subject to earlier termination pursuant to Section 8 below, the employment relationship created hereunder shall continue from the Effective Date until March 31, 2025 (the "Initial Term")." The term of employment shall, on the second anniversary date of the Effective Date, be deemed automatically renewed and extended upon the same terms and conditions for a period of one year (the "Renewal Term") unless either party, at least ninety (90) calendar days prior to the expiration of the Initial Term, shall give written notice to the other of his or its intention not to renew such employment term (a "Non-Renewal Notice"). The period during which Executive is employed under this Agreement (including any Renewal Term) will be referred to as the "Employment Period."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Section 4. <u>Services to be Provided by Executive</u>. All references to Chief Strategy Officer are hereby amended to read Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Section 5. <u>Compensation for Services</u>. The first sentence of Section 5(a) Base Salary is hereby amended to read as follows:

"Executive shall receive an annual salary of Five Hundred Thousand ($500,000) Dollars during the term of this Amendment, payable no less frequently than semi-monthly in accordance with the Company's regular payroll practice (the "Base Salary")."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Section 5(c). <u>Equity Award</u> is hereby amended to read as follows: Executive shall be awarded restricted stock units ("RSUs") based on performance determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Section 9. <u>Compensation Upon Termination for Any Reason</u>

Subsection (c)(ii) Termination by the Company Without Cause, or by the Executive for Good Reason, or Upon Non-Renewal by the Company (including in connection with a Change of Control) is amended to read as follows:

"The Agreement will not be terminated by the Company at any time prior to the end of the Initial two-year Term except for Cause. In the event that Executive's employment is terminated by the Company without Cause commencing two (2) years from the date of this Amendment, or at any time by the Executive for Good Reason, or as a result of expiration of the Employment Period by reason of the Company's issuance of a Non-Renewal Notice, the Company shall pay and/or provide the following amounts to Executive:

"(1) The Company shall pay Executive a single lump sum cash amount on the next regularly scheduled payroll date following Executive's date of termination, in an amount equal to the number of years employed by the Company (or fraction thereof) plus two (2) multiplied by one (1) month of Base Salary with a minimum of six (6) months Base Salary at all times during the Employment Period."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Except as set forth herein, the Agreement remains in full force and effect.

**IN WITNESS WHEREOF**, the parties hereto have duly executed this Amendment as of the 14th day of March 2023.

---

| | | | |
|:---|:---|:---|:---|
| "EXECUTIVE" | BIT DIGITAL, INC. | BIT DIGITAL, INC. | BIT DIGITAL, INC. |
| */s/ Sam Tabar* | By: | */s/ Erke Huang* | */s/ Erke Huang* |
| Sam Tabar |  | Name: | Erke Huang |
|  |  | Title: | Chief Financial Officer and Director |

---

## Exhibit 10.9

**Exhibit 10.9**

**EMPLOYMENT AGREEMENT**

This EMPLOYMENT AGREEMENT (the "<u>Agreement"</u>), is entered into as of October 28, 2022 (the "<u>Effective Date</u>"), by and between, Bit Digital, Inc, incorporated under the laws of Cayman Islands (the "<u>Company</u>"), and Erke Huang, an individual (the "<u>Executive"</u>). Except with respect to the direct employment of the Executive by the Company, the term "Company" as used herein with respect to all obligations of the Executive hereunder shall be deemed to include the Company and all of its subsidiaries and affiliated entities (collectively, the "<u>Group</u>").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company desires to employ the Executive as its Chief Financial Officer and to assure itself of the services of the Executive during the term of Employment (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Executive desires to be employed by the Company as its Chief Financial Officer during the term of Employment and upon the terms and conditions of this Agreement.

**AGREEMENT**

The parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **POSITION** 

The Executive hereby accepts a position of Chief Financial Officer (the "<u>Employment</u>") of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **TERM** 

Subject to the terms and conditions of this Agreement, the initial term of the Employment shall be 2 years commencing on the Effective Date, unless terminated earlier pursuant to the terms of this Agreement. The Employment will be renewed automatically for additional one-year terms if neither the Company nor the Executive provides a notice of termination of the Employment to the other party or otherwise proposes to renegotiate the terms of the Employment with the other party within three months prior to the expiration of the applicable term.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **DUTIES AND RESPONSIBILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The Executive's duties at the Company will include all jobs assigned by the Company's Board of the Directors (the " <u>Board</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The Executive shall devote all of his working time, attention and skills to the performance of his duties at the Company and shall faithfully and diligently serve the Company in accordance with this Agreement, the Certificate of Incorporation and Bylaws of the Company, as amended and restated from time to time (the

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) " <u>Charter Documents</u> "), and the guidelines, policies and procedures of the Company approved from time to time by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) The Executive shall use his best efforts to perform his duties hereunder. The Executive shall not, without the prior written consent of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company, and shall not be concerned or interested in any business or entity that engages in the same business in which the Company engages (any such business or entity, a "Competitor"), provided that nothing in this clause shall preclude the Executive from holding any shares or other securities of any Competitor that is listed on any securities exchange or recognized securities market anywhere if such shares or securities represent less than 5% of the competitors outstanding shares and securities. The Executive shall notify the Company in writing of his interest in such shares or securities in a timely manner and with such details and particulars as the Company may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **NO BREACH OF CONTRACT** 

The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive's duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements entered into by and between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Intentionally Omitted** 

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **COMPENSATION AND BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Base Salary</u>. The Executive's initial base salary shall be Sixty Thousand U.S. Dollars $60,000 per year, paid in periodic installments in accordance with the Company's regular payroll practices, and such compensation is subject to annual review and adjustment by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Bonus</u>. The Executive shall be eligible for Bonuses determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Equity Incentives</u>. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible to participate in such plan pursuant to the terms thereof as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Benefits</u>. The Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may be adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance plan and travel/holiday plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Expenses</u>. The Executive shall be entitled to reimbursement by the Company for all reasonable ordinary and necessary travel and other expenses incurred by the Executive in the performance of his duties under this Agreement; provided that he properly accounts for such expenses in accordance with the Company's policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **TERMINATION OF THE AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Company.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>For Cause</u>. The Company may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Executive is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has been grossly negligent or acted dishonestly to the detriment of the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive has engaged in actions amounting to willful misconduct or failed to perform his duties hereunder and such failure continues after the Executive is afforded a reasonable opportunity to cure such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive violates Section 8 or 10 of this Agreement.

Upon termination for cause, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination. However, the Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>For death and disability</u>. The Company may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Executive has died, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive unable to perform the essential functions of his employment with the Company, with or without reasonable accommodation, for more than 120 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.

Upon termination for death or disability, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination. However, the Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Without Cause</u>. The Company may terminate the Employment without cause, at any time, upon one month prior written notice. Upon termination without cause, the Company shall provide the following severance payments and benefits to the Executive: (1) a lump sum cash payment equal to1 months of the Executive's base salary as of the date of such termination; (2) a lump sum cash payment equal to a pro-rated amount of his target annual bonus for the year immediately preceding the termination, if any; (3) payment of premiums for continued health benefits under the Company's health plans for 12 months fo1lowing the termination, if any; and (4) immediate vesting of 100% of the then-unvested portion of any outstanding equity awards held by the Executive.

Upon termination without, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Change of Control Transaction</u>. If the Company or its successor terminates the Employment upon a merger, consolidation, or transfer or sale of all or substantially all of the assets of the Company with or to any other individual(s) or entity (the " <u>Change of Control Transaction</u> "), the Executive shall be entitled to the following severance payments and benefits upon such termination: (1) a lump sum cash payment equal to 1 months of the Executive's base salary at a rate equal to the greater of his/her annual salary in effect immediate1y prior to the termination, or his/her then current annua1 salary as of the date of such termination; (2) a lump sum cash payment equal to a pro-rated amount of his/her target annual bonus for the year immediately preceding the termination; (3) payment of premiums for continued health benefits under the Company's health plans for 12 months fo1lowing the termination; and (4) immediate vesting of 100% of the then unvested portion of any outstanding equity awards held by the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By the Executive</u>. The Executive may terminate the Employment at any time with a one-month prior written notice to the Company, if (1) there is a material reduction in the Executive's authority, duties and responsibilities, or (2) there is a material reduction in the Executive's annual salary. Upon the Executive's termination of the Employment due to either of the above reasons, the Company shall provide compensation to the Executive equivalent to 1 months of the Executive's base salary that he is entitled to immediately prior to such termination. In addition, the Executive may resign prior to the expiration of the Agreement if such resignation is approved by the Board or an alternative arrangement with respect to the Employment is agreed to by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Termination</u>. Any termination of the Executive's employment under this Agreement shall be communicated by written notice of termination from the terminating party to the other party. The notice of termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **CONFIDENTIALITY AND NON-DISCLOSURE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality and Non-disclosure</u>. The Executive hereby agrees at all times during the term of the Employment and after his termination, to hold in the strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, corporation or other entity without prior written consent of the Company, any Confidential Information. The Executive understands that "Confidential Information" means any proprietary or confidential information of the Company, its affiliates, or their respective clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes, formulas, technology, designs, hardware, configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures, franchisees, distributors and other persons with whom the Company does business, information regarding the skills and compensation of other employees of the Company or other business information disclosed to the Executive by or obtained by the Executive from the Company, its affiliates, or their respective clients, customers or partners, either directly or indirectly, in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential. Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the public through no fault of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company Property</u>. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created, received or transmitted in connection with his work or using the facilities of the Company are property of the Company and subject to inspection by the Company at any time. Upon termination of the Executive's employment with the Company (or at any other time when requested by the Company), the Executive will promptly deliver to the Company all documents and materials of any nature pertaining to his work with the Company and will provide written certification of his compliance with this Agreement. Under no circumstances will the Executive have, following his termination, in his possession any property of the Company, or any documents or materials or copies thereof containing any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Former Employer Information</u>. The Executive agrees that he has not and will not, during the term of his employment, (i) improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of the Company any document or confidential or proprietary information belonging to such former employer, person or entity unless consented to in writing by such former employer, person or entity. The Executive will indemnify the Company and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorneys' fees and costs of suit, arising out of or in connection with any violation of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Third Party Information</u>. The Executive recognizes that the Company may have received, and in the future may receive, from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Company and such third parties, during the Executive's employment by the Company and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent with, and for the limited purposes permitted by, the Company's agreement with such third party.

This Section 8 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 8, the Company shall have right to seek remedies permissible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **CONFLICTING EMPLOYMENT.** 

The Executive hereby agrees that, during the term of his employment with the Company, he or she will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company is now involved or becomes involved during the term of the Executive's employment, nor will the Executive engage in any other activities that conflict with his obligations to the Company without the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **NON-COMPETITION AND NON-SOLICITATION** 

In consideration of the salary paid to the Executive by the Company and subject to applicable law, the Executive agrees that during the term of the Employment and for a period of one (1) year following the termination of the Employment for whatever reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive will not approach clients, customers or contacts of the Company or other persons or entities introduced to the Executive in the Executive's capacity as a representative of the Company for the purposes of doing business with such persons or entities which will harm the business relationship between the Company and such persons and/or entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Executive will not assume employment with or provide services as a director or otherwise for any Competitor, or engage, whether as principal, partner, licensor or otherwise, in any Competitor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Executive will not seek, directly or indirectly, by the offer of alternative employment or other inducement whatsoever, to solicit the services of any employee of the Company employed as at or after the date of such termination, or in the year preceding such termination.

The provisions contained in Section 10 are considered reasonable by the Executive and the Company. In the event that any such provisions should be found to be void under applicable laws but would be valid if some part thereof was deleted or the period or area of application reduced, such provisions shall apply with such modification as may be necessary to make them valid and effective.

This Section 10 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 10, the Executive acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate). In any event, the Company shall have right to seek all remedies permissible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **WITHHOLDING TAXES** 

Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **ASSIGNMENT** 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a Change of Control Transaction, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **SEVERABILITY** 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **ENTIRE AGREEMENT** 

This Agreement constitutes the entire agreement and understanding between the Executive and the Company regarding the terms of the Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter, including any prior agreements between the Executive and a member of the Group. The Executive acknowledges that he or she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **GOVERNING LAW; JURISDICTION** 

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and each of the parties irrevocably consents to the jurisdiction and venue of the federal and state courts located in Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **AMENDMENT** 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;**17.** **WAIVER** 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **NOTICES** 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;**19.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;**20.** **NO INTERPRETATION AGAINST DRAFTER** 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms.

*[Remainder of this page has been intentionally left blank.]*

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

---

| | |
|:---|:---|
| **Bit Digital, Inc.** | **Bit Digital, Inc.** |
| By: | */s/ Zhaohui Deng* |
| Name: | ZHAOHUI DENG |
| Title: | CHAIRMAN |

---

---

| | |
|:---|:---|
| **Executive** | **Executive** |
| Signature: | */s/ Erke Huang* |
| Name: | Erke Huang |

---

**AMENDMENT TO<br> EMPLOYMENT AGREEMENT**

AMENDMENT TO EMPLOYMENT AGREEMENT dated as of October 28, 2022, (the "Effective Date") by and between Bit Digital, Inc., a Cayman Islands exempted company, with its principal business at 33 Irving Place, New York, New York 10003 (the "Company") and Erke Huang, with an address at 6A, 3 McDonnell Road, Mid-Levels, Hong Kong (the "Executive").

**<u>W I T N E S S E T H :</u>**

**WHEREAS**, the Company and the Executive entered into an Employment Agreement effective as of October 28, 2022 (the "Agreement"); and

**WHEREAS**, the Executive has played a substantial role in the growth of the Company.

**NOW, THEREFORE**, in consideration of the mutual premises and covenants and agreements contained herein and for other good and valuable consideration by each of the parties, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section 6(a) Base Salary is
hereby amended to read as follows:

"Executive shall receive an annual salary of Six Hundred Thousand ($600,000) Dollars commencing March 10, 2023 through the end of the Term, payable no less frequently than semi-monthly in accordance with the Company's regular payroll practice and such compensation is subject to annual review and adjustment by the Board."

Except as set forth herein, the Agreement remains in full force and effect.

**IN WITNESS WHEREOF**, the parties hereto have duly executed this Amendment as of the 10th day of March 2023.

---

| | | | |
|:---|:---|:---|:---|
| "EXECUTIVE" | BIT DIGITAL, INC. | BIT DIGITAL, INC. | BIT DIGITAL, INC. |
| */s/ Erke Huang* | By: | */s/ Zhaohui Deng* | */s/ Zhaohui Deng* |
| Erke Huang |  | Name: | Zhaohui Deng |
|  |  | Title: | Chairman of Board of Directors |

---

## Exhibit 10.11

**Exhibit 10.11**

October 11, 2024

<u>CONFIDENTIAL</u>

Billy Krassakopoulos

XXXX XXXXX XXXXX

XXXX XXXXXX XXXX

By email: bkrassakopoulos@enovumdc.com

**Re: Employment Letter Agreement**

Dear Billy Krassakopoulos,

As you know, 16428380 Canada Inc., a subsidiary of Bit Digital Inc. ("**Bit Digital**"), will be acquiring the shares (the "**Transaction**") of your current employer, Enovum Data Centers Corp. (the "**Company**"), pursuant to a share purchase agreement ("**SPA**").

As a condition of the SPA and in consideration of the proceeds you will receive in the context of the Transaction, the Company is presenting you with continued employment on the terms and conditions set forth below in this employment letter agreement (this "**Agreement**") subject to and effective as of the closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;1. **Duties.** You will continue in your position as full-time CEO. You will perform duties and responsibilities
for the Company and its affiliates that are reasonable and consistent with such position and as may be assigned to you from time to time.
You will report to Sam Tabar, or such other employee as may be designated by the Company, and you shall assume and discharge such duties
for the Company and its affiliates as your manager(s) may direct. Your prior service with the Company will be recognized for legal purposes
and the Company acknowledges that your employment with the Company commenced on February 14, 2022.

During your employment, you will devote your full-time attention to your duties and responsibilities, and you will perform them in accordance with the Company's standards of conduct, and be bound by the operating policies, procedures, and practices of the Company and Bit Digital, as applicable (the "**Policies**"), after they have been provided to you (to the extent a written Policy exists). You will not engage in any other employment, occupation, consulting and/or business activities except for the permitted employment, occupation, consulting and/or business activities listed in Schedule A herein. You also will not engage in any other activities that conflict or interfere with your obligations to the Company; provided, however that the foregoing does not preclude you from participating in civic, religious, or charitable activities, so long as such activities do not conflict with or interfere with your duties to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Termination of Employment.** Your employment with the Company is for an indefinite term. The Company
may terminate your employment for any act or omission (or series thereof) which constitutes serious reason for termination of employment
without prior notice or pay in lieu thereof under the *Civil Code of Quebec* ()"**Cause**") and your only entitlements
under this Agreement will be earned but unpaid base salary and accrued but unused vacation through to the termination date, as well as
reimbursement of any unpaid reasonable business expenses incurred in accordance with this Agreement prior to the termination date. If
your employment is terminated by the Company without Cause, the Company will provide you with (a) a lump sum payment equal to twelve (12)
months of your then base salary, subject to all withholdings and deductions as required by law, and conditional on you signing a full
and final release in favour of the Company and its affiliates, and (b) any earned but unpaid base salary and accrued but unused vacation
through to the termination date, as well as reimbursement of any unpaid reasonable business expenses incurred in accordance with this
Agreement prior to the termination date.You agree to give the Company 30 days' notice of your resignation. At any time after receiving
your notice of resignation, the Company may, at its sole discretion, modify your duties for the purpose of transitioning your employment
and active files, including without limitation, requiring that you not attend at work for the balance of resignation notice period. You
acknowledge that such changes in your duties, if any, will be for the purpose of ensuring an efficient transition of your active files
and will not constitute a constructive dismissal.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Place of Work.** Your regular place of work will be the Company's office located at 3195 chemin
Bedford, Montréal, H3H 1G3. You will be permitted to perform your duties remotely in accordance with past practice, subject to
the Policies and the Company's operational requirements. You acknowledge that you may be required to travel in connection with the
performance of your duties.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Salary.** Your annualized salary will be $300,000 payable in accordance with the standard payroll
practices of the Company and subject to all withholdings and deductions as required by law. You acknowledge that your base salary is payment
for all hours worked, and that you are not eligible to receive overtime pay or time off in lieu of pay for any work performed beyond regular
business hours. By signing below, you acknowledge that you authorize that the Company pay you by direct deposit.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Expenses**. The Company shall reimburse legitimate business expenses incurred by you in connection
with the performance of your duties upon presentation of invoices and in accordance with the Company's policies. The Company shall
also reimburse, where it deems it appropriate and upon presentation of invoices and in accordance with the Company's policies, any
association or professional association dues, including fees related to continuing professional development, as well as fuel costs for
travel between mining centers incurred in the course of your employment. You will be provided with all business equipment reasonably required
to perform your duties and functions in a manner consistent with past practice and all reasonable expenses associated therewith shall
be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;6. **Vacations.** You will receive four (4) weeks of vacation per calendar year, which will accrue over
the course of the year (prorated for any partial year worked) and which will be taken at times mutually agreed on with the Company based
on its business needs. Any accrued but unused vacation at the end of the calendar year will be forfeited and instead paid out in cash.

&nbsp;&nbsp;&nbsp;&nbsp;7. **Benefits.** During your employment, you will be eligible to participate in the Company's benefit
plans and programs in effect from time to time as may be made available to other similarly situated employees as may be offered by the
Company from time to time, in accordance with and subject to the eligibility and other provisions such plans and programs.

&nbsp;&nbsp;&nbsp;&nbsp;8. **Policies and Procedures.** You will be subject to all applicable then effective written policies
and procedures of the Company or Bit Digital that have been provided to you, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;9. **Non-Disparagement.** You acknowledge that you may learn potentially confidential or sensitive information
through your employment. During the employment period and in perpetuity thereafter, you will not make any statement to any third party
that is intended to or is reasonably likely to slander, libel, defame or otherwise damage the reputation of Company or Bit Digital or
their officers, directors, employees, affiliates, consultants, or clients. Notwithstanding the foregoing, nothing in this Agreement shall
be construed to prohibit or restrict you from making any statements or disclosures necessary to pursue or defend yourself in any litigation,
arbitration, or administrative proceeding or as part of any investigation or inquiry conducted by a governmental authority or law enforcement
body.

&nbsp;&nbsp;&nbsp;&nbsp;10. **Personal Information.** By signing this Agreement, you consent to the collection, use and disclosure
of your personal information by the Company in accordance with the Privacy Policy set out in Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Governing Law and Choice of Forum.** This Agreement will be governed by and construed in accordance
with the laws of the province of Québec. Any dispute flowing from this agreement shall be referred to the exclusive jurisdiction
of the courts of the judicial district of Montreal.

&nbsp;&nbsp;&nbsp;&nbsp;12. **Entire Agreement.** This Agreement embodies the entire agreement and understanding of the parties
hereto with regard to the matters described herein and supersedes any and all prior and/or contemporaneous agreements and understandings,
oral or written, between the parties regarding such matters, including your employment agreement with the Company signed on June 20, 2024;
except that nothing in this Agreement shall diminish or affect your obligations under the SPA or any documents relating thereto or the
Company's then effective Restrictive Covenant Agreement, or any other written policy or procedure the Company may issue from time-to-time.

&nbsp;&nbsp;&nbsp;&nbsp;13. **Amendment**. The terms of your employment as set forth in this Agreement may be amended only in a
writing signed by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;14. **Interpretation**. The parties hereto 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 shall be construed as if drafted
jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this offer letter.

&nbsp;&nbsp;&nbsp;&nbsp;15. **No Waiver.** Any party's failure to enforce the terms of this Agreement in the event of one
or more events violate Agreement shall not constitute a waiver of any right to enforce Agreement against subsequent violations.

&nbsp;&nbsp;&nbsp;&nbsp;16. **No Third-Party Beneficiary.** This Agreement is not intended to and does not convey any rights to
persons not a party to this Agreement. You may not directly or indirectly assign your rights under this offer letter.

&nbsp;&nbsp;&nbsp;&nbsp;17. **Section Headings**. The section headings in this offer letter are for convenience of reference only
and should not be deemed to affect the interpretation or modify the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;18. **Counterparts.** This Agreement may be executed in separate counterparts, none of which need contain
the signature of more than one party hereto but each of which shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;19. **Effectiveness; Severability.** Whenever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this offer letter is held to be prohibited by
or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;20. **Sexual Harassment Policy.** You will be required to review and comply with the Company's sexual
harassment policy. You will complete the Company's required sexual harassment training program by the end of each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;21. **Contingent Offer**. Your continued employment with the Company is contingent on your execution of
a Restrictive Covenant Agreement.

\*\*\*

Please sign below and return this letter to me. We look forward to hearing from you.

Best regards,

---

| | | |
|:---|:---|:---|
| **Enovum Data Centers Corp.** | **Enovum Data Centers Corp.** | **Enovum Data Centers Corp.** |
| by | | |
|  | Name: | Erke Huang |
|  | Title: | Vice-President and Secretary |

---

My signature below indicates my acceptance of the terms herein in the sole discretion of the Company, and all other conditions hereof.

I have had the opportunity to seek independent legal counsel.

By signing this Agreement, I acknowledge and agree that this Agreement is not an adhesion contract and that the terms and conditions have been negotiated and that I have expressly requested that this Agreement be drafted in English. *En signant le présent accord, je reconnais et j'accepte qu'il ne s'agit pas d'un contrat d'adhésion, que les termes et conditions ont été négociés et que j'ai expressément demandé qu'il soit rédigé en anglais.*

Signed:

  <br> Billy Krassakopoulos

Date: ________________________

**EXHIBIT A**

**PRIVACY POLICY**

**Enovum Workplace Privacy Policy**

**Last Updated: October 1, 2024**

**Scope and Overview**

Enovum is committed to protecting the privacy and security of your personal information. This Workplace Privacy Policy describes how Enovum Data Centers Corp. and its subsidiaries, affiliates and related entities (collectively, "**Enovum**", "**we**" or "**us**") collect and use personal information about you during and after your employment. This Workplace Privacy Policy applies to current and former employees of Enovum.

This Workplace Privacy Policy describes the categories of personal information that we collect, how we use your personal information, how we secure your personal information, when we may disclose your personal information to third parties, and when we may transfer your personal information outside of Canada. This Workplace Privacy Policy also describes your rights regarding the personal information that we hold about you and how you can access, correct, and request erasure of your personal information.

We will only use your personal information in accordance with this Workplace Privacy Policy unless otherwise required by applicable law. We take steps to ensure that the personal information that we collect about you is adequate, relevant, not excessive, and used for limited purposes.

In this Workplace Privacy Policy, "**personal information**" means any information about an identifiable individual, which includes information that can be used on its own or with other information to identify, contact, or locate a single person. Information that cannot be reasonably be linked to an identifiable individual, such as aggregated or anonymized information, is not considered personal information.

**Personal information collected**

To administer the employment relationship and carry out our obligations as an employer, we may need to collect the following categories of personal information:

**Personal Details** – e.g., name, contact details (address, telephone, email), age, date of birth, gender, passport or other government ID, proof of eligibility to work and details of any work permit application, and dependent and beneficiary details, emergency contact and next of kin details.

**Photographs** – e.g., your "headshot" and other photographs (including those incorporated into other documents).

**Education and Professional Qualifications** – e.g., resume/CV and any cover letter, professional history, education, qualifications, references, licences and certifications, language skills, professional affiliations, and other information you provide as part of your recruitment or in connection with your ongoing professional and career development.

**Work Details** – e.g., employee ID, date of hire, date of separation, office (country, city), business unit, job description, category (e.g., full/part-time), reporting lines, travel, relocations, and terms and conditions of your employment or other agreement, each in relation to Enovum or your prior employer, as the context requires.

**Background Checks** – e.g., education, employment, government sanctions and enforcement, identify verification, adverse media, conduct, address verification, directorships, professional qualifications, credit history, and civil litigation and criminal records, including sensitive personal information relating to criminal convictions or offences where and to the extent the law allows us to obtain such information.

**Demographic, Family and Household Data** – e.g., marital status, dependent information, language, family composition, and family education, employment, and income history.

**Time Administration, Leave and Absence Data** – e.g., work hours, schedule and location, time entries, days off / absences, sick days, holidays, vacations, maternity / paternity / family leave, jury duty, sabbaticals, secondments, and other leaves.

**Interview or Assessment Data** – e.g., any information you provide to us or generated during an interview or assessment, such as recordings made or taken during live or online interviews, responses to online or written tests, and business plans.

**Compensation, Benefits and Other Financial Data** – e.g., salary, bonus, equity interests, records of benefits entitlements and utilisation, bank or building society account details, tax/social security number, expenses, pensions, corporate credit card details, loans, and payments to family and dependents and court judgments.

**Health and Medical Data** – e.g., sensitive personal information relating to physical / mental health status or condition, disability, vaccination status, sick leave, accident reporting, occupational health and safety information, meal preferences and food allergies, and other information contained in medical forms or certificates. Please note that typically, the group insurance carrier and benefits administrators will maintain and have access to all health information that relates to your benefits. If, however, you provide information of a medical nature directly to Enovum, including information that may have a bearing on your work or benefits, it will be kept in your personnel file.

**Performance Management Data** – e.g., feedback, appraisals, documents and notes regarding discussions between yourself and Enovum management regarding the foregoing, and career progression, training, learning and development records, and promotions.

**Audio and Video Recordings** – e.g., recordings made or taken during internal and external live and online meetings, training sessions and presentations.

**Training / Learning & Development Data** – information regarding your training records, including required courses (e.g., Code of Conduct, information security, sexual harassment, etc.) and voluntary subjects.

**Compliance Data** – e.g., information regarding your disclosed financial institution accounts such as account statements, trade confirmations and other securities transactions; equity, financial interest and roles in outside companies, including non-profit organizations, such as directorships, management or committee positions; participation in industry associations; political contributions; gifts and entertainment received; and expenditures related to government officials.

**Disciplinary and Grievance Data** – e.g., information and documents relating to grievances, internal and external complaints and investigations, and disciplinary notices and actions.

**Claims, Complaints and Disclosures Data** – e.g., any information related to claims and litigation based on your employment, partnership or other working relationship with Enovum (which, owing to the nature of the claim, may include any of the categories of personal information described in this Workplace Privacy Policy), and records of your individual rights requests (e.g., access, correction).

**Termination and Retirement Data** – e.g., date of separation, separation status (voluntary / involuntary) and reason for leaving, notice periods, exit interviews and applicable agreements and financial arrangements.

In addition to information needed to administer the employment relationship, Enovum may collect other personal information, including:

- Audio and video recordings including security camera footage and photographs taken / audiovisual recordings made at Enovum events

- records of entry into controlled-access areas

- biometric data used for identification or authentication for access to controlled-access areas

- use of Enovum resources and technology

- details relating to Enovum events that personnel may choose to attend

- demographic information for diversity and inclusion surveys, on a voluntary basis

- other video, images and information you choose to provide on a voluntary basis, for the purposes for which you have provided them, including internal and external communications, newsletters and social media campaigns.

**How Enovum collects personal information**

Personal information may be collected directly from you, from other Enovum personnel (such as directors and managers), from third parties (such as background check providers, references, benefit administrators, clients, etc.) and by automated means, including through our monitoring of Enovum information systems, devices that have Enovum management or endpoint protection software installed, devices connected to Enovum networks, and security cameras at Enovum premises. The information may be collected at any time, including prior to your hiring, during your employment, or following your termination.

When we collect information directly from you, the information you provide must be accurate and current. Moreover, it is your responsibility to ensure that information you provide does not violate any third party's rights. If you provide us with personal information of a reference or any other individual (including, for example, a family member in relation to your benefits), it is your responsibility to obtain consent from that individual prior to providing the information to us.

**Personal information use**

We may use your personal information for the following purposes:

- Employee administration (including payroll and benefits administration)

- Background checks

- Business management, workforce administration, and planning including internal administration with our affiliates

- Processing employee work-related claims (for example, insurance and worker's compensation claims)

- Leave administration (including maternity, paternity, family, sick time, jury duty, sabbaticals, and other types of leaves)

- Accounting and auditing

- Conducting performance reviews and determining performance requirements

- Assessing qualifications for a particular job or task

- Ensuring compliance with Enovum policies and procedures, including by monitoring personnel access to and use of Enovum technology and Enovum premises

- Managing terminations / offboarding (including voluntary and involuntarily separations)

- Enterprise resource planning

- Conducting workforce surveys

- Supporting Enovum diversity and inclusion initiatives

- Gathering evidence for disciplinary action or termination

- Complying with applicable law and managing legal claims

- Managing and monitoring access to and use of Enovum information technology assets and premises

- Education, training and development requirements

- Health administration services

- Complying with health and safety obligations

If we need to use your personal information for an unrelated purpose, we will notify you and, if required by law, seek your consent. We may use your personal information without your knowledge or consent where required by applicable law or regulation.

**Data sharing**

We will only disclose your personal information to third parties where required by law or to our employees, contractors, designated agents, or third-party service providers who require it to assist us with administering the employment relationship with you, including third-party service providers who provide services to us or on our behalf. Third-party service providers include, but are not limited to, payroll processors and benefits administration providers. These third-party service providers may be located outside of the provincial or territorial jurisdiction in which you reside, or outside Canada.

We may also disclose your personal information for the following additional purposes where permitted or required by applicable law:

- To other members of our group of companies (including outside of your jurisdiction of residence) for the purposes set out in this Workplace Privacy Policy and as necessary to perform our employment contract with you

- As part of our regular reporting activities to other members of our group of companies

To comply with legal obligations or valid legal processes such as search warrants, subpoenas, or court orders. When we disclose your personal information to comply with a legal obligation or legal process, we will take reasonable steps to ensure that we only disclose the minimum personal information necessary for the specific purpose and circumstances

- To comply with legal obligations or valid legal processes such as search warrants, subpoenas, or court orders

- During emergency situations or where necessary to protect the safety of persons

- If a business transfer or change in ownership occurs

- For additional purposes with your consent where such consent is required by law.

**Cross-border transfers**

Enovum or its service providers may also access, process or store your Personal information outside of the jurisdiction where Enovum is located and where you reside. As a result, when your personal information is used or stored in a jurisdiction other than where you are residing, it may be subject to the law of this foreign jurisdiction, including any law permitting or requiring disclosure of the information to the government, government agencies, courts and law enforcement in that jurisdiction.

**Security** 

We have implemented appropriate physical, technical, and organizational security measures designed to protect your personal information against accidental loss and unauthorized access, use, alteration, or disclosure. We have implemented policies and procedures to protect and safeguard personal information, provide a framework for our handling of your personal information, and define roles and responsibilities within Enovum for handling personal information from the moment we gather it until it is destroyed. We limit personal information access to those employees, agents, contractors, and other third parties that have a legitimate business or legal need for such access.

We also have policies and practices in place to handle privacy complaints. Please contact us using the coordinates provided in the section entitled "Contact Enovum", below.

**Data retention**

Enovum will store your Personal information as long as necessary to perform the purposes of processing as stated in this Workplace Privacy Policy, including for the purposes of satisfying any legal, accounting, or reporting requirements. Once you are no longer an employee of Enovum, we will retain and securely destroy your personal information in accordance with our document retention policy and applicable laws and regulations.

**Your rights**

Subject to certain limits, by law you have the right to request access to and to correct the personal information that we hold about you, to withdraw your consent to the use of your personal information, and in certain jurisdictions, the right to request deletion.

If you want to review, verify, correct, or withdraw consent to the use of your personal information, or request deletion where this right is available, please first contact the Enovum Human Resources Department. If the Human Resources Department is unable to fulfil your request, please then contact our Privacy Officer at marianna@bit-digital.com.

Any such communication must be in writing. We may request specific information from you to help us confirm your identity and your right to access, and to provide you with the personal information that we hold about you or make your requested changes. Applicable law may allow or require us to refuse to provide you with access to some or all of the personal information that we hold about you, or we may have destroyed, erased, or made your personal information anonymous in accordance with our record retention obligations and practices. If we cannot provide you with access to your personal information, we will inform you of the reasons why, subject to any legal or regulatory restrictions.

It is important that the personal information we hold about you is accurate and current. Please keep us informed if your personal information changes during your employment.

**Changes**

We reserve the right to update this Workplace Privacy Policy at any time, and we will provide you with a new Workplace Privacy Policy when we make any updates. If we would like to use your previously collected personal information for different purposes than those we notified you about at the time of collection, we will provide you with notice and, where required by law, seek your consent, before using your personal information for a new or unrelated purpose. We may use your personal information without your knowledge or consent where required or permitted by applicable law or regulation. The "Last Updated" date at the top of this Workplace Privacy Policy indicates when it was last updated.

**Contact Enovum**

Subject to the procedure set out in "Your rights" above, if you have any requests, questions, complaints or suggestions about Enovum's privacy practices, please send an email to marianna@bit-digital.com.

Please sign and date below to confirm that you have read and understand this Workplace Privacy Policy and that you consent to Enovum Data Centers Corp. processing your personal information as described within this Workplace Privacy Policy.

Date: __________________

  <br> Billy Krassakopoulos

**SCHEDULE A<br> EXISTING ENGAGEMENTS**

Please see attached.

## Exhibit 10.12

**Exhibit 10.12**

![](ex10-12_001.jpg)

September 6, 2024

<u>CONFIDENTIAL</u>

Tom Sanfilippo

By email: sanfilip@gmail.com

**Re: Offer Letter**

Dear Tom,

We are very pleased to offer you an at-will employment position with Bit Digital AI, Inc. (the "Company"), a subsidiary of Bit Digital Inc. ("Bit Digital"), on the terms and conditions set forth below in this offer letter. As described below, this offer of at-will employment is conditioned on your satisfactory completion of certain requirements.

&nbsp;&nbsp;&nbsp;&nbsp;1. **Duties; Start Date.** You will be hired as full-time **Chief Technology Officer**. Your employment shall commence on September 13, 2024 or a mutually determined date between you and your manager.
You will perform duties and responsibilities for the Company and its affiliates that are reasonable and consistent with such position
and as may be assigned to you from time to time. You will report to Sam Tabar, Chief Executive Officer, or such other employee as may
be designated by the Company, and you shall assume and discharge such duties for the Company and its affiliates as your manager(s) may
direct.

During your employment, you will devote your full-time attention to your duties and responsibilities, and you will perform them in accordance with the Company's standards of conduct, and be bound by the operating policies, procedures, and practices of the Company and Bit Digital, as applicable. You will not engage in any other employment, occupation, consulting and/or business activities that would create a conflict of interest with the Company. You also will not engage in any other activities that conflict or interfere with your obligations to the Company; provided, however that the foregoing does not preclude you from participating in civic, religious, or charitable activities and serving on the boards of directors or serving as a consultant to non-competitive private or public companies ("Board/Consulting Activities") to the extent such activities are specifically disclosed on Exhibit A attached hereto or are approved by the Board of Directors of the Company (the "Board") in the future in its sole discretion, in each case, so long as such activities do not conflict with or interfere with your duties to the Company. For the avoidance of doubt, and without limitation, if Exhibit A attached hereto is blank (or not attached), then no Board/Consulting Activities are permitted as of the date hereof.

33 Irving Place

New York, New York 10003

Tom Sanfilippo - Offer Letter, September 6, 2024

&nbsp;&nbsp;&nbsp;&nbsp;2. **At-Will Employment.** Your employment with the Company is "at-will." You on the one hand
and Company on the other may terminate the employment relationship for any reason, with or without cause or advance notice. The at-will
relationship cannot be modified except in a writing executed by both parties. For the avoidance of doubt, your at-will employment status
cannot be modified by any understanding you may have of any verbal statements made by any representative of the Company in the interview
or hiring process. The parties agree to endeavor to provide 14 days notice prior to terminating the employment relationship but are under
no obligation to provide any notice. The Company reserves the right, in its sole discretion, to change your compensation and/or employee
benefits at any time on a prospective basis.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Place of Work.** Your principal place of work will be your home office in the Boston, MA metropolitan
area, although you may be required to travel periodically to any office or branch of Bit Digital upon reasonable prior notice. We expect
that you will be able spend a substantial amount of your time working remotely, although you may be required to work on occasion in the
Company's present New York office at 31 Hudson Yards, New York, NY, 10001, at the request of your manager. You acknowledge that
you may be required to travel in connection with the performance of your duties.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Salary; Bonus; Equity Incentive.** Your annualized salary will be $350,000 payable in accordance
with the standard payroll practices of the Company and subject to all withholdings and deductions as required by law. As an exempt employee,
you acknowledge that your base salary is payment for all hours worked, and that you are not eligible to receive overtime pay or time off
in lieu of pay for any work performed beyond regular business hours. By signing below, you acknowledge that you authorize that the Company
pay you by direct deposit.

You will be awarded a signing bonus of $100,000, so long as you are employed on (and have not given notice of your resignation of employment prior to) the last day of the second week of your hire date. Any discretionary bonus will be awarded at the sole discretion of the Company, in consultation with Bit Digital and its Board of Directors, taking into consideration individual and Company performance.

Furthermore, to incentivize exceptional performance, as soon as reasonably practicable following commencement of your employment, Bit Digital's Board of Directors will grant you Restricted Stock Units ("RSUs") valued at $1,200,000 (one million two hundred thousand) dollars based on the average closing price of Bit Digital's Ordinary Shares for the five prior trading days before your date of hire. Your RSUs will vest over four (4) years in equal quarterly installments, following an initial one-year vesting cliff, beginning on the first day of the month following your first full month of employment. This RSU grant shall be subject to the terms and conditions of Bit Digital's 2023 Omnibus Equity Incentive Plan (the "Plan") and Award Agreement, including vesting requirements. In the event that the Company effects a spinoff of its AI assets to another publicly traded entity ("Newco"), the RSUs will be equitably adjusted or converted in a manner intended to preserve the aggregate intrinsic value of the original Bit Digital Inc.'s equity award and the terms of the equity awards, such as vesting dates, will generally remain substantially the same. You will receive in exchange for any unvested RSUs in Bit Digital Inc., a number of RSUs in Newco equal in value to such unvested RSUs which will be forfeited. For example, if 25% of your RSUs have vested you will receive $900,000 in value of RSUs in Newco. Such new RSUs will be priced at the market price of Newco on the first day of trading of Newco after the Spinoff in order to make you whole.

Tom Sanfilippo - Offer Letter, September 6, 2024

All payments paid pursuant to this Offer Letter will be subject to applicable withholding taxes.

This Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of Sections 409A of the Internal Revenue Code of 1986, as amended from time to time and the Treasury Regulations thereunder (the "Code"), and any payment scheduled to be made hereunder that would otherwise violate Section 409A of the Code shall be delayed to the extent necessary for this Agreement and such payment to comply with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Severance Benefits**. If (i) you are terminated by the
Company without Cause (as defined below), or the Company revokes this offer letter prior to the date that you commence employment, and
(ii) and provided that you execute a separation and general release agreement in a form satisfactory to and requested by the Company
and such agreement becomes fully irrevocable within 60 days following the last date of your employment with the Company, you will be
entitled to receive severance as follows: (i) a payment equal to three (3) months of your annual base salary and (ii) a payment equal
to the premium costs for you and your eligible dependents to continue healthcare coverage under COBRA for three (3) months, with such
payments to be payable to you within 30 days following the date on which the separation and general release agreement becomes effective
and irrevocable. "Cause" means (a) you have been convicted of, have pleaded guilty or nolo contendere to, or committed any
act or omission constituting, any felony or any crime involving moral turpitude, (b) you have engaged in willful misconduct, or you have
engaged in gross negligence which is injurious to the Company or its affiliates, (c) you materially failed or refused to perform the
material duties lawfully and reasonably assigned to you or have breached any material term or condition of this offer letter or any other
material agreement with the Company or its affiliates, in any case after written notice by the Company of such performance issue or breach
of terms or conditions and an opportunity to cure within ten (10) days of such written notice thereof from the Company, unless such nonperformance
or breach is, by its nature, not curable, (d) your failure to follow the Company's policies (or policies of the Company's
affiliates that are applicable to you) that results in, or could reasonably be expected to result in, material harm to the Company or
its affiliates or (e) you have committed any act of fraud, theft, embezzlement,
misappropriation of funds, breach of 7iduciary duty or other willful act of material dishonesty against the Company or its affiliates.

Tom Sanfilippo - Offer Letter, September 6, 2024

If (1) your employment with the Company terminates for any reason other than for Cause and (2) any of the facts and circumstances described in clauses (a) through (e) of the preceding sentence existed as of the date of such termination (whether or not known by the Board or the Company as of such termination or discovered after any such termination), then, by a vote of the Board, the Company may deem such termination of employment to have been for Cause, and such termination shall be treated as a termination by the Company for Cause (and, to the extent applicable, you must promptly repay to the Company any severance payments previously paid to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **FLSA Exempt Status; Vacations.** You will be considered an exempt employee under applicable law,
including the Fair Labor Standards Act and under New York State law. The Company's regular business hours are Monday through Friday,
9am to 6pm. You will receive 25 days of paid time off per year, which will accrue over the course of the year. These days include 5 days
of paid sick time off and 20 vacation days per calendar year (prorated for 2024). The Company will observe traditional bank holidays subject
to Company holiday policies in place from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Benefits.** During your employment, you will be eligible to participate in the Company's benefit
plans and programs in effect from time to time, including group medical, dental, and vision insurance, retirement plan, and other fringe
benefits as may be made available to other similarly situated employees as may be offered by the Company from time to time, in accordance
with and subject to the eligibility and other provisions such plans and programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Policies and Procedures.** You will be subject to all applicable then effective written policies
and procedures of the Company, as may be amended from time to time. For the avoidance of doubt, you expressly acknowledge you will at
all times be subject to the Company's then effective:

● Mandatory Mediation and Arbitration Procedure, which may be amended from time-to-time by the Company.

● Restrictive Covenant Agreement, which may be amended from time-to-time by the Company.

● Non-Disclosure Agreement, which may be amended from time-to-time by the Company.

● Code of Ethics and Business Conduct, which may be amended from time to time by the Company.

Tom Sanfilippo - Offer Letter, September 6, 2024

● Insider Trading Policy, which may be amended from time to time by the Company.

● Anti-Corruption Policy, which may be amended from time to time by the Company.

● Compliance Reporting Policy, which may be amended from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;9. **Non-Disparagement.** You acknowledge that you may learn
potentially confidential or sensitive information through your employment. During the employment period and in perpetuity thereafter,
you will not make any statement to any third party that is intended to or is reasonably likely to slander, libel, defame or otherwise
damage the reputation of Company or Bit Digital or their officers, directors, employees, affiliates, consultants, or clients. During
the employment period and in perpetuity thereafter, the Company agrees that it will not make any statement to any third party that is
intended to or is reasonably likely to slander, libel, defame or otherwise damage your reputation. Notwithstanding the foregoing, this
Section 9 does not prohibit (A) either party from responding truthfully, completely and accurately (i) to any inquiry by any governmental
or regulatory agency (or otherwise reporting unlawful conduct to any such agency), (ii) if required by legal process, (iii) as otherwise
required by law, (iv) in any dispute between the parties or in response to any breaches of this Section 9 by the other party, or (B)
the Company from discussing your employment, including in respect of your work performance, with officers and/or directors of the Company
and/or its affiliates, or other third parties, for legitimate business purposes.

&nbsp;&nbsp;&nbsp;&nbsp;10. **Representations and Warranties**. You hereby represent warrant that the information contained in
or provided in the course of your application for this position (including without limitation the information in your resume and provided
during any interview) is accurate in all material respects, and that you did not omit any material information.

You hereby represent that you are not bound by any agreement that would restrict or prevent you from accepting this offer of employment or performing the duties contemplated herein. You are not permitted to use or disclose any confidential information of any prior employer during the course of your employment.

&nbsp;&nbsp;&nbsp;&nbsp;11. **Governing Law.** This offer letter will be governed by the laws of the State of New York, regardless
of conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;12. **Entire Agreement.** This offer letter embodies the entire agreement and understanding of the parties
hereto with regard to the matters described herein and supersedes any and all prior and/or contemporaneous agreements and understandings,
oral or written, between the parties regarding such matters; except that nothing in this offer letter shall diminish or affect your obligations
under the Company's then effective Mandatory Dispute Resolution Procedures, Restrictive Covenant Agreement, or any other
written policy or procedure the Company may issue from time-to-time.

Tom Sanfilippo - Offer Letter, September 6, 2024

&nbsp;&nbsp;&nbsp;&nbsp;13. **Amendment**. The terms of your employment as set forth in your offer letter may be amended only in
a writing signed by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;14. **Interpretation**. The parties hereto have participated jointly in the negotiation and drafting of
this offer letter. In the event an ambiguity or question of intent or interpretation arises, this offer letter shall be construed as if
drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any of the provisions of this offer letter.

&nbsp;&nbsp;&nbsp;&nbsp;15. **No Waiver.** Any party's failure to enforce the terms of this offer letter in the event of
one or more events violate this offer letter shall not constitute a waiver of any right to enforce the offer letter against subsequent
violations.

&nbsp;&nbsp;&nbsp;&nbsp;16. **No Third-Party Beneficiary.** This offer letter is not intended to and does not convey any rights
to persons not a party to this offer letter. You may not directly or indirectly assign your rights under this offer letter.

&nbsp;&nbsp;&nbsp;&nbsp;17. **Section Headings**. The section headings in this offer letter are for convenience of reference only
and should not be deemed to affect the interpretation or modify the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;18. **Counterparts.** This offer letter may be executed in separate counterparts, none of which need contain
the signature of more than one party hereto but each of which shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;19. **Effectiveness; Severability.** Whenever possible, each provision of the offer letter shall be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this offer letter is held to be prohibited by
or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this offer letter.

&nbsp;&nbsp;&nbsp;&nbsp;20. **Sexual Harassment Policy.** You will be required to review and comply with the Company's sexual
harassment policy. You will complete the Company's required sexual harassment training program by the end of each calendar year.

Tom Sanfilippo - Offer Letter, September 6, 2024

&nbsp;&nbsp;&nbsp;&nbsp;21. **Contingent Offer**. Your at-will employment with the Company is contingent on completion of the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Verification of your right to work in the United States, as
demonstrated by your completion of the I-9 form upon hire and your submission of acceptable documentation (as noted on the I-9 form)
verifying your identity and work authorization within three (3) days of starting employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Satisfactory completion of a background check.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Your execution of the Company's Mandatory Mediation and Arbitration Procedure to be provided prior
to commencing employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Your execution of a Restrictive Covenant Agreement and, if required, a Non- Disclosure Agreement to be
provided prior to commencing employment.

This employment offer will be withdrawn if any of the above conditions are not satisfied. Please do not resign from your current job until you have confirmation from the Company that these and all other conditions of this offer have been fulfilled to the Company's satisfaction. This offer letter summarizes the principal terms of the Company's employment and is not a contract of employment for any definite period of time.

\*\*\*

Tom Sanfilippo - Offer Letter, September 6, 2024

All of us at the Company are excited at the prospect of you joining our team. If you have any questions about the above details, please call me to discuss. If you wish to accept this position, please sign below and return this letter to me. This offer is open for you to accept until the sooner of September 9, 2024, or its withdrawal in writing to you by the Company, at which time, if you have not accepted or rejected, it will be deemed to be withdrawn. We look forward to hearing from you.

Best regards,

Sam Tabar, CEO

+1 (917) 854 6357

sam@bit-digital.com

My signature below indicates my acceptance of the terms herein and my acknowledgement that this is an at-will employment relationship subject to the satisfaction of the contingencies set forth in this offer letter (including without limitation in Section 20 of this offer letter) in the sole discretion of the Company, and all other conditions hereof.

Signed:

---

| |
|:---|
| /s/ Tom Sanfilippo |
| Tom Sanfilippo |

---

Date: <u>September 6, 2024</u>

## Exhibit 10.15

**Exhibit 10.15**

**DIRECTOR AGREEMENT**

This DIRECTOR AGREEMENT (the "Agreement") is made as of this 15<sup>th</sup> day of April 2025 (the "Date of Grant"), by and between WhiteFiber, Inc., an exempted company organized under the laws of the Cayman Islands (the "Company") and David Andre, an individual with his principal address at 100 Brentwood Avenue, San Francisco, California 94127 (the "Director").

WHEREAS, the Company wishes to reappoint the Director as an independent member of the Board of Directors of the Company effective upon the effective date of the S-1 registration Statement of the Company (the "Effective Date") and enter into this agreement with the Director with respect to such appointment; and

WHEREAS, the Director wishes to accept such appointment and to serve the Company on the terms set forth herein, and in accordance with, the provisions of this Agreement.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position</u>. Subject to the terms and provisions of this Agreement of the Director is hereby appointed as an independent member of the Board of Directors (the "Board") as of the Effective Date, and the Director hereby agrees to serve the Company in that position upon the terms and conditions hereinafter set forth. Upon the Effective Date and Director's appointment as a Director of the Company, his Advisory Agreement with Bit Digital, Inc. dated February 24, 2024 shall automatically be terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. During the Directorship Term (as defined in Section 5 hereof), the Director shall serve as a member of the Board, and the Director shall make reasonable business efforts to attend all Board meetings, serve on subcommittees, the Board's Audit Committee, Compensation Committee and Nominating and Corporate Governance Committees reasonably requested by the Board, make himself available to the Company at mutually convenient times and places, attend external meetings and presentations, as appropriate and convenient, and perform such duties, services and responsibilities and have the authority commensurate to such position (collectively, the "Duties"). During the term of this Agreement, Director shall attend and participate in such number of meetings of the Board and of the committee(s) of which Director is a member as regularly or specially called. Director may attend and participate at each such meeting, via teleconference, video conference or in person. Director shall consult with the other members of the Board and committee(s) regularly and as necessary via telephone, electronic mail or other forms of correspondence.

The Director will use his best efforts to promote the interests of the Company. The Company recognizes that the Director: (i) is a full-time member of other entities and that his responsibilities to such entities must have priority. Notwithstanding same, the Director will use reasonable business efforts to coordinate his respective commitments so as to fulfill his obligations to the Company and, in any event, will fulfill his legal obligations as a director. Other than as set forth above, the Director will not, without the prior written approval of the Board, engage in any other business activity which could materially interfere with the performance of his duties, services and responsibilities hereunder or which is in violation of the reasonable policies established from time to time by the Company, provided that the foregoing shall in no way limit the Director's activities on behalf of his current affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services for Others</u>. Director shall be free to represent or perform services for other persons during the directorship term (as defined below) of this Agreement. However, Director agrees that he does not presently perform and does not intend to perform, during the Directorship Term (as defined below) of this Agreement, similar Duties, consulting or other services for companies whose businesses are or would be, in any way, directly or indirectly, competitive with the Company (except for companies previously disclosed by Director and approved by the Company in writing). Should Director propose to perform similar Duties, consulting or other services for any such company, Director agrees to notify the Company in writing in advance (specifying the name of the organization for whom Director proposes to perform such services) and to provide information to the Company sufficient to allow it to determine if the performance of such services would conflict with areas of interest to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Remuneration</u>. Director's compensation as an independent director shall be $10,000 per month, and a grant of $250,000 in value of Restricted Stock Units ("RSUs"), effective the date of this Agreement, pursuant to the Bit Digital Omnibus Equity Incentive Plan (the "Plan"), vesting quarterly over a one-year period from the Date of Grant. The RSUs shall be granted at the closing price of Bit Digital Ordinary Shares on the day prior to the date of this Agreement. Notwithstanding the foregoing, in the event this Agreement is terminated for any reason (other than for cause) the Director shall be entitled to six (6) months' severance including both (i) the director's fee of $60,000 and (ii) six months' of RSUs. Director shall be eligible for the grant of additional equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof.

Director shall be reimbursed for reasonable expenses incurred by Director in connection with the performance of his Duties (including reasonable travel expenses for in-person meetings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Directorship Term</u>. The "Directorship Term", as used in this Agreement, shall mean the period commencing on the Effective Date hereof and terminating on the earliest of the following to occur:

&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 earlier of one (1) year from the Effective Date, subject to re-election after the first year by a majority of the shareholders of the Company, Bit Digital, as the majority shareholder of the Company will vote its shares in favor of re-election of the Director at the Annual General Meeting of Shareholders.

&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 death of the Director ("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;(c) the termination of the Director from the position of member of the Board by the mutual agreement of the Company and the Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the resignation by the Director from the Board if after the date hereof, Director's continued service on the Board conflicts with his fiduciary obligations to his current affiliation (a "Fiduciary Resignation").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Director's Representation and Acknowled</u>g<u>ment</u>. The Director represents to the Company that his execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that he may have with or to any person or entity, including without limitation, any current or prior employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any officer, director or stockholder of the Company or any of their respective affiliates with regard to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Director Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unauthorized Disclosure. The Director agrees and understands that in the Director's position with the Company, the Director has been and will be exposed to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information concerning the Company's products, promotions, development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company; provided, however, that (i) he Director shall have no such obligation to the extent such information is or becomes publicly known or generally known in the Company's industry other than as a result of the Director's breach of his obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data or any other tangible product or document which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director's position with the Company during or prior to the Directorship Term, provided that, the Company shall retain such materials and make them available to the Director if requested by him in connection with any litigation against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that the materials are necessary to his defense in the litigation, and (ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company's relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Non-Compete. The Director shall not, so long as he is a member of the Board and for a period of 12 months following termination of this Agreement for whatever reason, directly or indirectly as owner, partner, joint venture, stockholder, employee, broker, agent principal, corporate officer, director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business or venture that is engaged in any activities involving services or products which compete, directly or indirectly, with the services or products provided or proposed to be provided by the Company or its subsidiaries or affiliates; provided, however, that the Director may own securities of any public corporation which is engaged in such business but in an amount not to exceed at any one time, three (3) percent of any class of stock or securities of such company, so long as the Director has no active role in the publicly owned company as director, employee, consultant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Remedies. The Director agrees that any breach of the terms of this Section 7 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including but not limited to the recovery of damages from the Director. The Director acknowledges that the Company would not have entered into this Agreement had the Director not agreed to the provisions of this Section 7.

The provisions of this Section 7 shall survive any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Indemnification</u>. The Company agrees to indemnify the Director for his activities as a director of the Company to the fullest extent permitted by law, and to cover the Director under a directors and officers liability insurance obtained by the Company. Further, the Company and the Director agree to enter into an indemnification agreement substantially in the form of agreement entered into by the Company and its other Board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Waiver of Ri</u>g<u>hts</u>. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right of either party to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Notices</u>. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, to:

<u>If to the Company</u>:

WhiteFiber, Inc.

31 Hudson Yards, 11<sup>th</sup> Floor, Suite 30, New York, New York 10001, Attn: Sam Tabar, CEO

<u>If to the Director</u>:

David Andre, 100 Brentwood Avenue, San Francisco, California 94127

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Binding Effect/Assi</u>g<u>nment</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire A</u>g<u>reement</u>. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severabilit</u>y. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governin</u>g <u>Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without reference to the principles of conflict of laws. All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in any New York state or federal court and the parties hereto hereby consent to the jurisdiction of such courts in any such action or proceeding; provided, however, that neither party shall commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve the claim, dispute or cause of action which is the subject of such action or proceeding through mediation by an independent third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Le</u>g<u>al Fees</u>. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between the parties hereto arising out of or relating to the terms and conditions of this Agreement or any provision thereof (a "Dispute"), shall reimburse the prevailing party for reasonable attorney's fees and expenses incurred by the prevailing party in connection with such Dispute; provided, however, that the Director shall only be required to reimburse the Company for its fees and expenses incurred in connection with a Dispute, if the Director's position in such Dispute was found by the court, arbitrator or other person or entity presiding over such Dispute to be frivolous or advanced not in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Modifications</u>. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Tense and Headin</u>gs. Whenever any words used herein are 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. The headings contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

<u>**(REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)**</u>

IN WITNESS WHEREOF, the Company has caused this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set his hand, on the day and year first above written.

---

| | | |
|:---|:---|:---|
| WHITEFIBER, INC. | WHITEFIBER, INC. | WHITEFIBER, INC. |
| By: | /s/ Sam Tabar | /s/ Sam Tabar |
|  | Name: | Sam Tabar |
|  | Title: | Chief Executive Officer |
|  | /s/ David Andre | /s/ David Andre |
|  | David Andre | David Andre |

---

## Exhibit 10.16

**Exhibit 10.16**

**DIRECTOR AGREEMENT**

This DIRECTOR AGREEMENT (the "Agreement") is made as of this 5<sup>th</sup> day of May 2025 (the "Date of Grant"), by and between WhiteFiber, Inc., an exempted company organized under the laws of the Cayman Islands (the "Company") and Pruitt Hall, an individual with his principal address at 2783 Brushy Fork Road, Cana, VA 24317 (the "Director").

WHEREAS, the Company wishes to reappoint the Director as an independent member of the Board of Directors of the Company effective upon the effectiveness of trading on the Nasdaq Capital Market (the "Effective Date") and enter into this agreement with the Director with respect to such appointment; and

WHEREAS, the Director wishes to accept such appointment and to serve the Company on the terms set forth herein, and in accordance with, the provisions of this Agreement.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position</u>. Subject to the terms and provisions of this Agreement of the Director is hereby appointed as an independent member of the Board of Directors (the "Board") as of the Effective Date, and the Director hereby agrees to serve the Company in that position upon the terms and conditions hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. During the Directorship Term (as defined in Section 5 hereof), the Director shall serve as a member of the Board, and the Director shall make reasonable business efforts to attend all Board meetings, serve on subcommittees, the Board's Audit Committee, Compensation Committee and Nominating and Corporate Governance Committees reasonably requested by the Board, make himself available to the Company at mutually convenient times and places, attend external meetings and presentations, as appropriate and convenient, and perform such duties, services and responsibilities and have the authority commensurate to such position (collectively, the "Duties"). During the term of this Agreement, Director shall attend and participate in such number of meetings of the Board and of the committee(s) of which Director is a member as regularly or specially called. Director may attend and participate at each such meeting, via teleconference, video conference or in person. Director shall consult with the other members of the Board and committee(s) regularly and as necessary via telephone, electronic mail or other forms of correspondence.

The Director will use his best efforts to promote the interests of the Company. The Company recognizes that the Director: (i) is a full-time member of other entities and that his responsibilities to such entities must have priority. Notwithstanding same, the Director will use reasonable business efforts to coordinate his respective commitments so as to fulfill his obligations to the Company and, in any event, will fulfill his legal obligations as a director. Other than as set forth above, the Director will not, without the prior written approval of the Board, engage in any other business activity which could materially interfere with the performance of his duties, services and responsibilities hereunder or which is in violation of the reasonable policies established from time to time by the Company, provided that the foregoing shall in no way limit the Director's activities on behalf of his current affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services for Others</u>. Director shall be free to represent or perform services for other persons during the directorship term (as defined below) of this Agreement. However, Director agrees that he does not presently perform and does not intend to perform, during the Directorship Term (as defined below) of this Agreement, similar Duties, consulting or other services for companies whose businesses are or would be, in any way, directly or indirectly, competitive with the Company (except for companies previously disclosed by Director and approved by the Company in writing). Should Director propose to perform similar Duties, consulting or other services for any such company, Director agrees to notify the Company in writing in advance (specifying the name of the organization for whom Director proposes to perform such services) and to provide information to the Company sufficient to allow it to determine if the performance of such services would conflict with areas of interest to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Remuneration</u>. Director's compensation as an independent director shall be $150,000 per annum, paid on a quarterly basis. Notwithstanding the foregoing, in the event this Agreement is terminated for any reason (other than for cause) the Director shall be entitled to three (3) months' severance consisting of the director's fee of $37,500. Director shall be eligible for the grant of equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof.

Director shall be reimbursed for reasonable expenses incurred by Director in connection with the performance of his Duties (including reasonable travel expenses for in-person meetings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Directorship Term</u>. The "Directorship Term", as used in this Agreement, shall mean the period commencing on the Effective Date hereof and terminating on the earliest of the following to occur:

&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 earlier of one (1) year from the Effective Date, subject to re-election after the first year by a majority of the shareholders of the Company, Bit Digital, as the majority shareholder of the Company will vote its shares in favor of re-election of the Director at the Annual General Meeting of Shareholders.

&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 death of the Director ("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;(c) the termination of the Director from the position of member of the Board by the mutual agreement of the Company and the Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the resignation by the Director from the Board if after the date hereof, Director's continued service on the Board conflicts with his fiduciary obligations to his current affiliation (a "Fiduciary Resignation").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Director's Representation and Acknowled</u>g<u>ment</u>. The Director represents to the Company that his execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that he may have with or to any person or entity, including without limitation, any current or prior employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any officer, director or stockholder of the Company or any of their respective affiliates with regard to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Director Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unauthorized Disclosure. The Director agrees and understands that in the Director's position with the Company, the Director has been and will be exposed to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information concerning the Company's products, promotions, development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company; provided, however, that (i) he Director shall have no such obligation to the extent such information is or becomes publicly known or generally known in the Company's industry other than as a result of the Director's breach of his obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data or any other tangible product or document which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director's position with the Company during or prior to the Directorship Term, provided that, the Company shall retain such materials and make them available to the Director if requested by him in connection with any litigation against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that the materials are necessary to his defense in the litigation, and (ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company's relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Non-Compete. The Director shall not, so long as he is a member of the Board and for a period of 12 months following termination of this Agreement for whatever reason, directly or indirectly as owner, partner, joint venture, stockholder, employee, broker, agent principal, corporate officer, director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business or venture that is engaged in any activities involving services or products which compete, directly or indirectly, with the services or products provided or proposed to be provided by the Company or its subsidiaries or affiliates; provided, however, that the Director may own securities of any public corporation which is engaged in such business but in an amount not to exceed at any one time, three (3) percent of any class of stock or securities of such company, so long as the Director has no active role in the publicly owned company as director, employee, consultant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Remedies. The Director agrees that any breach of the terms of this Section 7 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including but not limited to the recovery of damages from the Director. The Director acknowledges that the Company would not have entered into this Agreement had the Director not agreed to the provisions of this Section 7.

The provisions of this Section 7 shall survive any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Indemnification</u>. The Company agrees to indemnify the Director for his activities as a director of the Company to the fullest extent permitted by law, and to cover the Director under a directors and officers liability insurance obtained by the Company. Further, the Company and the Director agree to enter into an indemnification agreement substantially in the form of agreement entered into by the Company and its other Board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Waiver of Ri</u>g<u>hts</u>. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right of either party to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Notices</u>. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, to:

<u>If to the Company</u>:

WhiteFiber, Inc.

31 Hudson Yards, 11<sup>th</sup> Floor, Suite 30, New York, New York 10001, Attn: Sam Tabar, CEO

<u>If to the Director</u>:

David Andre, 100 Brentwood Avenue, San Francisco, California 94127

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Binding Effect/Assi</u>g<u>nment</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire A</u>g<u>reement</u>. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severabilit</u>y. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governin</u>g <u>Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without reference to the principles of conflict of laws. All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in any New York state or federal court and the parties hereto hereby consent to the jurisdiction of such courts in any such action or proceeding; provided, however, that neither party shall commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve the claim, dispute or cause of action which is the subject of such action or proceeding through mediation by an independent third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Le</u>g<u>al Fees</u>. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between the parties hereto arising out of or relating to the terms and conditions of this Agreement or any provision thereof (a "Dispute"), shall reimburse the prevailing party for reasonable attorney's fees and expenses incurred by the prevailing party in connection with such Dispute; provided, however, that the Director shall only be required to reimburse the Company for its fees and expenses incurred in connection with a Dispute, if the Director's position in such Dispute was found by the court, arbitrator or other person or entity presiding over such Dispute to be frivolous or advanced not in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Modifications</u>. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Tense and Headin</u>gs. Whenever any words used herein are 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. The headings contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

<u>**(REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)**</u>

IN WITNESS WHEREOF, the Company has caused this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set his hand, on the day and year first above written.

---

| | | |
|:---|:---|:---|
| WHITEFIBER, INC. | WHITEFIBER, INC. | WHITEFIBER, INC. |
| By: | /s/ Sam Tabar | /s/ Sam Tabar |
|  | Name: | Sam Tabar |
|  | Title: | Chief Executive Officer |
|  | /s/ Pruitt Hall | /s/ Pruitt Hall |
|  | Pruitt Hall | Pruitt Hall |

---

## Exhibit 10.17

**Exhibit 10.17**

**DIRECTOR AGREEMENT**

This DIRECTOR AGREEMENT is made as of this 14<sup>th</sup> day of May 2025 (the "Agreement"), by and between WhiteFiber, Inc., an exempted company incorporated under the laws of the Cayman Islands (the "Company") and Erke Huang, an individual with his principal address at <u>1035 Vista Oaks Ct, Pleasanton, CA 94566</u> (the "Director").

WHEREAS, the Company has appointed the Director as a member of the Board of Directors of the Company effective September 12, 2024 (the "Effective Date") and desires to enter into this Agreement with the Director with respect to such appointment; and

WHEREAS, the Director wishes to formally accept such appointment and to serve the Company on the terms set forth herein, and in accordance with, the provisions of this Agreement.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position</u>. Subject to the terms and provisions of this Agreement, the Director was appointed as a member of the Board of Directors (the "Board") by the initial subscriber to the Company's memorandum of association, and the Director hereby agrees to serve the Company in that position upon the terms and conditions hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. During the Directorship Term (as defined in Section 5 hereof), the Director shall serve as a member of the Board, and the Director shall make reasonable business efforts to attend all Board meetings, serve on subcommittees, the Board's Audit Committee, Compensation Committee and Nominating and Corporate Governance Committees reasonably requested by the Board, make himself available to the Company at mutually convenient times and places, attend external meetings and presentations, as appropriate and convenient, and perform such duties, services and responsibilities and have the authority commensurate to such position (collectively, the "Duties"). During the term of this Agreement, Director shall attend and participate in such number of meetings of the Board and of the committee(s) of which Director is a member as regularly or specially called. Director may attend and participate at each such meeting, via teleconference, video conference or in person. Director shall consult with the other members of the Board and committee(s) regularly and as necessary via telephone, electronic mail or other forms of correspondence.

The Director will use his best efforts to promote the interests of the Company. The Company recognizes that the Director: (i) is a full-time member of other entities and that his responsibilities to such entities must have priority and (ii) sits on the Board of Directors of other entities. Notwithstanding same, the Director will use reasonable business efforts to coordinate his respective commitments so as to fulfill his obligations to the Company and, in any event, will fulfill his legal obligations as a director. Other than as set forth above, the Director will not, without the prior written approval of the Board, engage in any other business activity which could materially interfere with the performance of his duties, services and responsibilities hereunder or which is in violation of the reasonable policies established from time to time by the Company, provided that the foregoing shall in no way limit the Director's activities on behalf of (i) his current affiliate or (ii) the Board of Directors of those entities on which he sits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services for Others</u>. Director shall be free to represent or perform services for other persons during the directorship term (as defined below) of this Agreement. However, Director agrees that he does not presently perform and does not intend to perform, during the Directorship Term (as defined below) of this Agreement, similar Duties, consulting or other services for companies whose businesses are or would be, in any way, directly or indirectly, competitive with the Company (except for companies previously disclosed by Director and approved by the Company in writing). Should Director propose to perform similar Duties, consulting or other services for any such company, Director agrees to notify the Company in writing in advance (specifying the name of the organization for whom Director proposes to perform such services) and to provide information to the Company sufficient to allow it to determine if the performance of such services would conflict with areas of interest to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Remuneration</u>. Director's compensation as an independent director shall be $4,000 a year, to be paid quarterly. Director shall be eligible for the grant of equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof.

Director shall be reimbursed for reasonable expenses incurred by Director in connection with the performance of his Duties (including reasonable travel expenses for in-person meetings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Directorship Term</u>. The "Directorship Term", as used in this Agreement, shall mean the period commencing on the Effective Date hereof and terminating on the earliest of the following to occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the earlier of one (1) year from the Effective Date or until the next Annual Meeting of Shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the death of the Director ("Death");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the termination of the Director from the position of member of the Board by the mutual agreement of the Company and the Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the resignation by the Director from the Board if after the date hereof, Director's continued service on the Board conflicts with his fiduciary obligations to his current affiliation (a "Fiduciary Resignation"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) otherwise in accordance with the Company's articles of association (as may be amended from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Director's Representation and Acknowled</u>g<u>ment</u>. The Director represents to the Company that its execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that he may have with or to any person or entity, including without limitation, any prior employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any officer, director or stockholder of the Company or any of their respective affiliates with regard to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Director Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unauthorized Disclosure. The Director agrees and understands that in the Director's position with the Company, the Director has been and will be exposed to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information concerning the Company's products, promotions, development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company; provided, however, that (i) the Director shall have no such obligation to the extent such information is or becomes publicly known or generally known in the Company's industry other than as a result of the Director's breach of his obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data or any other tangible product or document which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director's position with the Company during or prior to the Directorship Term, provided that, the Company shall retain such materials and make them available to the Director if requested by him in connection with any litigation against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that the materials are necessary to his defense in the litigation, and (ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company's relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Non-Compete. The Director shall not, so long as he is a member of the Board and for a period of 12 months following termination of this Agreement for whatever reason, directly or indirectly as owner, partner, joint venture, stockholder, employee, broker, agent principal, corporate officer, director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business or venture that is engaged in any activities involving services or products which compete, directly or indirectly, with the services or products provided or proposed to be provided by the Company or its subsidiaries or affiliates; provided, however that the Director may own securities of any public corporation which is engaged in such business but in an amount not to exceed at any one time, three (3) percent of any class of stock or securities of such company, so long as the Director has no active role in the publicly owned company as director, employee, consultant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Remedies. The Director agrees that any breach of the terms of this Section 7 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including, but not limited to, the recovery of damages from the Director. The Director acknowledges that the Company would not have entered into this Agreement had the Director not agreed to the provisions of this Section 7.

The provisions of this Section 7 shall survive any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Indemnification</u>. The Company agrees to indemnify the Director for his activities as a director of the Company to the fullest extent permitted by law, and to cover the Director under a directors and officers liability insurance obtained by the Company. Further, the Company and the Director agree to enter into an indemnification agreement substantially in the form of agreement entered into by the Company and its other Board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Waiver of Ri</u>g<u>hts</u>. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right of either party to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Notices</u>. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, to:

If to the Company:

WhiteFiber, Inc.

31 Hudson Yards, 11th Fl., Suite 30New York, NY 10001, Attn: Sam Tabar, CEO

If to the Director:

Erke Huang <u>1035 Vista Oaks Ct, Pleasanton, CA 94566</u>

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Binding Effect/Assi</u>g<u>nment</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire A</u>g<u>reement</u>. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severabilit</u>y. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governin</u>g <u>Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without reference to the principles of conflict of laws. All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in any New York state or federal court and the parties hereto hereby consent to the jurisdiction of such courts in any such action or proceeding; provided, however, that neither party shall commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve the claim, dispute or cause of action which is the subject of such action or proceeding through mediation by an independent third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Le</u>g<u>al Fees</u>. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between the parties hereto arising out of or relating to the terms and conditions of this Agreement or any provision thereof (a "Dispute"), shall reimburse the prevailing party for reasonable attorney's fees and expenses incurred by the prevailing party in connection with such Dispute; provided, however, that the Director shall only be required to reimburse the Company for its fees and expenses incurred in connection with a Dispute, if the Director's position in such Dispute was found by the court, arbitrator or other person or entity presiding over such Dispute to be frivolous or advanced not in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Modifications</u>. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Tense and Headin</u>gs. Whenever any words used herein are 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. The headings contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

<u>**(REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)**</u>

IN WITNESS WHEREOF, the Company has caused this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set his hand, on the day and year first above written.

---

| | |
|:---|:---|
| WHITEFIBER, INC. | WHITEFIBER, INC. |
| By: | /s/ Jiashu (Bill) Xiong |
| Name: | Jiashu (Bill) Xiong |
| Title: |  |
|  | /s/ Erke Huang |
|  | Erke Huang |

---

## Exhibit 10.18

**Exhibit 10.18**

**DIRECTOR AGREEMENT**

This DIRECTOR AGREEMENT is made as of this 30<sup>th</sup> day of May 2025 (the "Agreement"), by and between WhiteFiber, Inc., an exempted company incorporated under the laws of the Cayman Islands (the "Company") and Ichi Shih, an individual with her principal address at <u>20 Nongan St Apt 4-23, Zhongshan District, Taipei, Taiwan 10460</u> (the "Director").

WHEREAS, the Company has appointed the Director as an independent member of the Board of Directors of the Company effective September 12, 2024 (the "Effective Date") and desires to enter into this Agreement with the Director with respect to such appointment; and

WHEREAS, the Director wishes to formally accept such appointment and to serve the Company on the terms set forth herein, and in accordance with, the provisions of this Agreement.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position</u>. Subject to the terms and provisions of this Agreement, the Director was appointed as an independent member of the Board of Directors (the "Board") by the initial subscriber to the Company's memorandum of association, and the Director hereby agrees to serve the Company in that position upon the terms and conditions hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. During the Directorship Term (as defined in Section 5 hereof), the Director shall serve as a member of the Board and Chair of the Audit Committee, and the Director shall make reasonable business efforts to attend all Board meetings, serve on subcommittees, the Board's Audit Committee, Compensation Committee and Nominating and Corporate Governance Committees reasonably requested by the Board, make herself available to the Company at mutually convenient times and places, attend external meetings and presentations, as appropriate and convenient, and perform such duties, services and responsibilities and have the authority commensurate to such position (collectively, the "Duties"). During the term of this Agreement, Director shall attend and participate in such number of meetings of the Board and of the committee(s) of which Director is a member as regularly or specially called. Director may attend and participate at each such meeting, via teleconference, video conference or in person. Director shall consult with the other members of the Board and committee(s) regularly and as necessary via telephone, electronic mail or other forms of correspondence.

The Director will use her best efforts to promote the interests of the Company. The Company recognizes that the Director: (i) is a full-time member of other entities and that her responsibilities to such entities must have priority and (ii) sits on the Board of Directors of other entities. Notwithstanding same, the Director will use reasonable business efforts to coordinate her respective commitments so as to fulfill her obligations to the Company and, in any event, will fulfill her legal obligations as a director. Other than as set forth above, the Director will not, without the prior written approval of the Board, engage in any other business activity which could materially interfere with the performance of her duties, services and responsibilities hereunder or which is in violation of the reasonable policies established from time to time by the Company, provided that the foregoing shall in no way limit the Director's activities on behalf of (i) her current affiliate or (ii) the Board of Directors of those entities on which she sits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services for Others</u>. Director shall be free to represent or perform services for other persons during the directorship term (as defined below) of this Agreement. However, Director agrees that she does not presently perform and does not intend to perform, during the Directorship Term (as defined below) of this Agreement, similar Duties, consulting or other services for companies whose businesses are or would be, in any way, directly or indirectly, competitive with the Company (except for companies previously disclosed by Director and approved by the Company in writing). Should Director propose to perform similar Duties, consulting or other services for any such company, Director agrees to notify the Company in writing in advance (specifying the name of the organization for whom Director proposes to perform such services) and to provide information to the Company sufficient to allow it to determine if the performance of such services would conflict with areas of interest to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Remuneration</u>. Director's compensation as an independent director shall be $4,000 a year, to be paid quarterly and the issuance of 40,000 restricted ordinary shares of the Company upon the commencement of trading of the Company's ordinary shares on the Nasdaq Capital Market. Director shall also be eligible for the grant of equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof.

Director shall be reimbursed for reasonable expenses incurred by Director in connection with the performance of her Duties (including reasonable travel expenses for in-person meetings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Directorship Term</u>. The "Directorship Term", as used in this Agreement, shall mean the period commencing on the Effective Date hereof and terminating on the earliest of the following to occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the earlier of one (1) year from the Effective Date or until the next Annual Meeting of Shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the death of the Director ("Death");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the termination of the Director from the position of member of the Board by the mutual agreement of the Company and the Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the resignation by the Director from the Board if after the date hereof, Director's continued service on the Board conflicts with her fiduciary obligations to her current affiliation (a "Fiduciary Resignation"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) otherwise in accordance with the Company's articles of association (as may be amended from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Director's Representation and Acknowled</u>g<u>ment</u>. The Director represents to the Company that its execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that she may have with or to any person or entity, including without limitation, any prior employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any officer, director or stockholder of the Company or any of their respective affiliates with regard to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Director Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unauthorized Disclosure. The Director agrees and understands that in the Director's position with the Company, the Director has been and will be exposed to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information concerning the Company's products, promotions, development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company; provided, however, that (i) the Director shall have no such obligation to the extent such information is or becomes publicly known or generally known in the Company's industry other than as a result of the Director's breach of her obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data or any other tangible product or document which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director's position with the Company during or prior to the Directorship Term, provided that, the Company shall retain such materials and make them available to the Director if requested by her in connection with any litigation against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that the materials are necessary to her defense in the litigation, and (ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company's relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Non-Compete. The Director shall not, so long as she is a member of the Board and for a period of 12 months following termination of this Agreement for whatever reason, directly or indirectly as owner, partner, joint venture, stockholder, employee, broker, agent principal, corporate officer, director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business or venture that is engaged in any activities involving services or products which compete, directly or indirectly, with the services or products provided or proposed to be provided by the Company or its subsidiaries or affiliates; provided, however that the Director may own securities of any public corporation which is engaged in such business but in an amount not to exceed at any one time, three (3) percent of any class of stock or securities of such company, so long as the Director has no active role in the publicly owned company as director, employee, consultant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Remedies. The Director agrees that any breach of the terms of this Section 7 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including, but not limited to, the recovery of damages from the Director. The Director acknowledges that the Company would not have entered into this Agreement had the Director not agreed to the provisions of this Section 7.

The provisions of this Section 7 shall survive any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Indemnification</u>. The Company agrees to indemnify the Director for her activities as a director of the Company to the fullest extent permitted by law, and to cover the Director under a directors and officers liability insurance obtained by the Company. Further, the Company and the Director agree to enter into an indemnification agreement substantially in the form of agreement entered into by the Company and its other Board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Waiver of Ri</u>g<u>hts</u>. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right of either party to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Notices</u>. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, to:

If to the Company:

WhiteFiber, Inc.

31 Hudson Yards, 11th Fl., Suite 30New York, NY 10001, Attn: Sam Tabar, CEO

If to the Director:

Ichi Shih <u>20 Nongan St Apt 4-23, Zhongshan District, Taipei, Taiwan 10460</u>

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Binding Effect/Assi</u>g<u>nment</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire A</u>g<u>reement</u>. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severabilit</u>y. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governin</u>g <u>Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without reference to the principles of conflict of laws. All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in any New York state or federal court and the parties hereto hereby consent to the jurisdiction of such courts in any such action or proceeding; provided, however, that neither party shall commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve the claim, dispute or cause of action which is the subject of such action or proceeding through mediation by an independent third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Le</u>g<u>al Fees</u>. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between the parties hereto arising out of or relating to the terms and conditions of this Agreement or any provision thereof (a "Dispute"), shall reimburse the prevailing party for reasonable attorney's fees and expenses incurred by the prevailing party in connection with such Dispute; provided, however, that the Director shall only be required to reimburse the Company for its fees and expenses incurred in connection with a Dispute, if the Director's position in such Dispute was found by the court, arbitrator or other person or entity presiding over such Dispute to be frivolous or advanced not in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Modifications</u>. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Tense and Headin</u>gs. Whenever any words used herein are 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. The headings contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

<u>**(REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)**</u>

IN WITNESS WHEREOF, the Company has caused this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set her hand, on the day and year first above written.

---

| | |
|:---|:---|
| WHITEFIBER, INC. | WHITEFIBER, INC. |
| By: | /s/ Erke Huang |
| Name: | Erke Huang |
| Title: | Director |
|  | /s/ Ichi Shih |
|  | Ichi Shih |

---

## Exhibit 10.19

**Exhibit 10.19**

**DIRECTOR AGREEMENT**

This DIRECTOR AGREEMENT is made as of this 4th day of June 2025 (the "Agreement"), by and between WhiteFiber, Inc., an exempted company incorporated under the laws of the Cayman Islands (the "Company") and Xiashu (Bill) Xiong, an individual with her principal address at <u>3207-9880 Bennett St, Burnaby, British Columbia, Canada V5H 439</u> (the "Director").

WHEREAS, the Company has appointed the Director as a member of the Board of Directors of the Company effective September 12, 2024 (the "Effective Date") and desires to enter into this Agreement with the Director with respect to such appointment; and

WHEREAS, the Director wishes to formally accept such appointment and to serve the Company on the terms set forth herein, and in accordance with, the provisions of this Agreement.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position</u>. Subject to the terms and provisions of this Agreement, the Director was appointed as a member of the Board of Directors (the "Board") by the initial subscriber to the Company's memorandum of association, and the Director hereby agrees to serve the Company in that position upon the terms and conditions hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. During the Directorship Term (as defined in Section 5 hereof), the Director shall serve as a member of the Board, and the Director shall make reasonable business efforts to attend all Board meetings, serve on subcommittees, the Board's Audit Committee, Compensation Committee and Nominating and Corporate Governance Committees reasonably requested by the Board, make himself available to the Company at mutually convenient times and places, attend external meetings and presentations, as appropriate and convenient, and perform such duties, services and responsibilities and have the authority commensurate to such position (collectively, the "Duties"). During the term of this Agreement, Director shall attend and participate in such number of meetings of the Board and of the committee(s) of which Director is a member as regularly or specially called. Director may attend and participate at each such meeting, via teleconference, video conference or in person. Director shall consult with the other members of the Board and committee(s) regularly and as necessary via telephone, electronic mail or other forms of correspondence.

The Director will use his best efforts to promote the interests of the Company. The Company recognizes that the Director: (i) is a full-time member of other entities and that her responsibilities to such entities must have priority and (ii) sits on the Board of Directors of other entities. Notwithstanding same, the Director will use reasonable business efforts to coordinate his respective commitments so as to fulfill her obligations to the Company and, in any event, will fulfill her legal obligations as a director. Other than as set forth above, the Director will not, without the prior written approval of the Board, engage in any other business activity which could materially interfere with the performance of his duties, services and responsibilities hereunder or which is in violation of the reasonable policies established from time to time by the Company, provided that the foregoing shall in no way limit the Director's activities on behalf of (i) his current affiliate or (ii) the Board of Directors of those entities on which he sits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services for Others</u>. Director shall be free to represent or perform services for other persons during the directorship term (as defined below) of this Agreement. However, Director agrees that he does not presently perform and does not intend to perform, during the Directorship Term (as defined below) of this Agreement, similar Duties, consulting or other services for companies whose businesses are or would be, in any way, directly or indirectly, competitive with the Company (except for companies previously disclosed by Director and approved by the Company in writing). Should Director propose to perform similar Duties, consulting or other services for any such company, Director agrees to notify the Company in writing in advance (specifying the name of the organization for whom Director proposes to perform such services) and to provide information to the Company sufficient to allow it to determine if the performance of such services would conflict with areas of interest to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Remuneration</u>. Director's compensation as an independent director shall be $4,000 a year, to be paid quarterly. Director shall be eligible for the grant of equity compensation, from time to time, at the discretion of the Board of Directors, or a compensation committee thereof.

Director shall be reimbursed for reasonable expenses incurred by Director in connection with the performance of his Duties (including reasonable travel expenses for in-person meetings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Directorship Term</u>. The "Directorship Term", as used in this Agreement, shall mean the period commencing on the Effective Date hereof and terminating on the earliest of the following to occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the earlier of one (1) year from the Effective Date or until the next Annual Meeting of Shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the death of the Director ("Death");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the termination of the Director from the position of member of the Board by the mutual agreement of the Company and the Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the resignation by the Director from the Board if after the date hereof, Director's continued service on the Board conflicts with his fiduciary obligations to his current affiliation (a "Fiduciary Resignation"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) otherwise in accordance with the Company's articles of association (as may be amended from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Director's Representation and Acknowled</u>g<u>ment</u>. The Director represents to the Company that its execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that he may have with or to any person or entity, including without limitation, any prior employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any officer, director or stockholder of the Company or any of their respective affiliates with regard to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Director Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unauthorized Disclosure. The Director agrees and understands that in the Director's position with the Company, the Director has been and will be exposed to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information concerning the Company's products, promotions, development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company; provided, however, that (i) the Director shall have no such obligation to the extent such information is or becomes publicly known or generally known in the Company's industry other than as a result of the Director's breach of his obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data or any other tangible product or document which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director's position with the Company during or prior to the Directorship Term, provided that, the Company shall retain such materials and make them available to the Director if requested by him in connection with any litigation against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that the materials are necessary to his defense in the litigation, and (ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company's relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Non-Compete. The Director shall not, so long as he is a member of the Board and for a period of 12 months following termination of this Agreement for whatever reason, directly or indirectly as owner, partner, joint venture, stockholder, employee, broker, agent principal, corporate officer, director, licensor or in any other capacity whatsoever, engage in, become financially interested in, be employed by, or have any connection with any business or venture that is engaged in any activities involving services or products which compete, directly or indirectly, with the services or products provided or proposed to be provided by the Company or its subsidiaries or affiliates; provided, however that the Director may own securities of any public corporation which is engaged in such business but in an amount not to exceed at any one time, three (3) percent of any class of stock or securities of such company, so long as the Director has no active role in the publicly owned company as director, employee, consultant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Remedies. The Director agrees that any breach of the terms of this Section 7 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including, but not limited to, the recovery of damages from the Director. The Director acknowledges that the Company would not have entered into this Agreement had the Director not agreed to the provisions of this Section 7.

The provisions of this Section 7 shall survive any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Indemnification</u>. The Company agrees to indemnify the Director for his activities as a director of the Company to the fullest extent permitted by law, and to cover the Director under a directors and officers liability insurance obtained by the Company. Further, the Company and the Director agree to enter into an indemnification agreement substantially in the form of agreement entered into by the Company and its other Board members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Waiver of Ri</u>g<u>hts</u>. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by the other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right of either party to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Notices</u>. Every notice relating to this Agreement shall be in writing and shall be given by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, to:

If to the Company:

WhiteFiber, Inc.

31 Hudson Yards, 11th Fl., Suite 30New York, NY 10001, Attn: Sam Tabar, CEO

If to the Director:

Xiashu (Bill) Xiong <u>3207-9880 Bennett St, Burnaby, British Columbia, Canada V5H 439</u>

Either of the parties hereto may change their address for purposes of notice hereunder by giving notice in writing to such other party pursuant to this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Binding Effect/Assi</u>g<u>nment</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire A</u>g<u>reement</u>. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severabilit</u>y. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governin</u>g <u>Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without reference to the principles of conflict of laws. All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in any New York state or federal court and the parties hereto hereby consent to the jurisdiction of such courts in any such action or proceeding; provided, however, that neither party shall commence any such action or proceeding unless prior thereto the parties have in good faith attempted to resolve the claim, dispute or cause of action which is the subject of such action or proceeding through mediation by an independent third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Le</u>g<u>al Fees</u>. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between the parties hereto arising out of or relating to the terms and conditions of this Agreement or any provision thereof (a "Dispute"), shall reimburse the prevailing party for reasonable attorney's fees and expenses incurred by the prevailing party in connection with such Dispute; provided, however, that the Director shall only be required to reimburse the Company for its fees and expenses incurred in connection with a Dispute, if the Director's position in such Dispute was found by the court, arbitrator or other person or entity presiding over such Dispute to be frivolous or advanced not in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Modifications</u>. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Tense and Headin</u>gs. Whenever any words used herein are 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. The headings contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

<u>**(REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)**</u>

IN WITNESS WHEREOF, the Company has caused this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set her hand, on the day and year first above written.

---

| | |
|:---|:---|
| WHITEFIBER, INC. | WHITEFIBER, INC. |
| By: | /s/ Erke Huang |
| Name: | Erke Huang |
| Title: | Director |
|  | /s/ Xiashu Xiong |
|  | Xiashu (Bill) Xiong |

---

## Exhibit 10.20

**Exhibit 10.20**

![](ex10-20_001.jpg)

Do'cusign Envelope ID: A925FD37-6076-4052-AB87-2A6EEAEB804C EXHIBIT 10.20 This MASTER SERVICES AGREEMENT (this "MSA") is entered into by and between ENOVUM DATA CENTERS CORP., doing business as Enovum with offices located at 3195 ch Bedford, Montreal, Quebec H3S 1G3 ("ENOVUM") and CEREBRAS WAFER SCALE ULC, a British Columbia corporation having offices at 199 Bay Street, Suite 4400, Toronto, Ontario (the "CUSTOMER") as of the latest dated signature below (the "EFFECTIVE DATE"), and consists of and is subject to the general terms and conditions set forth in this MSA and all Schedules and Service Orders (each as defined below) that are attached to this MSA or are subsequently entered into by the parties hereto (collectively, the "AGREEMENT"). 1. SERVICES AND RIGHTS. (a) Enovum provides the services (the "SERVICES") in accordance with the general terms and conditions set forth in this MSA, as well as the terms and conditions set forth in the schedule(s) referencing this MSA which are mutually agreed to by the parties in writing, and attached hereto or executed hereafter (each a "SCHEDULE"). This Agreement shall apply to all Services provided to Customer by Enovum. (b) NETWORK CONNECTION. Customer shall have the right to arrange and complete fiber optic cable connections with telecommunications public utilities or third parties for a connection to fiber optic cable in public streets, utilities, within or on the Enovum colocation facility, or adjacent property for the operation of Customer's equipment, and Enovum shall cooperate, to the extent any cooperation is required, with Customer and such public utilities or third parties to facilitate such connections. Enovum agrees that there shall be no additional charge, other than as provided in this Agreement, for such installation and operation. Customer and/or Customer's third party provider shall bear all expenses of such installation. 2. SERVICE ORDERS. (a) Enovum will perform the Service(s) specified in any written order between Enovum and Customer that is signed by both parties or, additional services ordered through Enovum' client portal or any email order that is sent by Customer and confirmed by Enovum via email (each, a "SERVICE ORDER"). (b) Each Service Order shall identify the Service(s) to be provided by Enovum to Customer, the charges, whether recurring or non-recurring, for such Service(s) and the term during which such Service(s) are to be provided. (c} Enovum reserves the right to modify, discontinue, add, remove, re-price features or options from its services which are not included in active Customer's Service Order and undertakes to notify Customer of such changes in a timely manner through its Portal or by email. Any such changes to the Services or Service charges shall not apply to any of Customer's existing Services or Service Orders. (d) Service Orders under this MSA may be entered into and performed by Enovum and/or any of its Affiliates (as defined below), including an Affiliate authorized to provide Service(s) in a country or jurisdiction other than the country or jurisdiction within which this MSA has been executed as long as such Affiliate is authorized to do business in the country and jurisdiction where the Services are being performed and the Affiliate agrees to be bound by the terms of this Agreement. Enovum shall remain responsible for performance under this Agreement by Enovum or its Affiliates. As used herein, "AFFILIATE" shall mean any entity controlled by, controlling or under common control with the applicable party.

![](ex10-20_002.jpg)

3. SITE REQUIREMENTS AND SECURITY. (a) Enovum agrees that all Services and Enovum's data center providing such Services will at all times be in compliance with the Enovum Site Requirements, which are attached as Exhibit A, and incorporated herein by reference ("Site Requirements"). (b) At all times during the Term, Enovum agrees to implement and maintain industry best security standards and requirements in compliance with the Site Requirements. (c) Customer agrees and undertakes to make every reasonable effort to ensure the security of its services to its own customers in order to prevent unwanted access to the Enovum infrastructure and network and further undertakes to immediately notify Enovum should it be aware of any security issue. 4. REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS. (a) Enovum represents and warrants to Customer that Enovum has the authority to enter into the Agreement and the Agreement constitutes a valid and binding obligation of Enovum. (b) Enovum represents and warrants to provide the Services twenty- four hours per day, three hundred sixty-five days per year, in accordance with the Site Requirements and applicable Service Order and in accordance with its Service Level Agreement, incorporated herein. (c) Enovum represents and warrants that it will at all times implement, maintain and enforce rigorous access, security and environmental requirements in providing the Services and related to its data center facility to prevent against unauthorized access, loss, theft, damage or destruction of Customer's Equipment or assigned space. (d) Enovum represents and warrants that the Services will be in compliance with all applicable laws, rules and regulations. (e) Customer represents and warrants to Enovum that: (i) if Customer is a corporation or other form of legal person or business entity, it is duly incorporated/formed and in existence in accordance with the laws governing such entity and (ii) Customer has the authority to enter into the Agreement and the Agreement constitutes a valid and binding obligation of Customer that does not violate any other agreement between Customer and any other person (f) Subject to the below, Customer may resell, sublease or sublicense the Services as long as such end-user, sublessee or sublicensee are bound by terms consistent with this Agreement, and Customer shall remain liable for any breach of this Agreement by its sublessee or sublicensee. If Customer intends to resell or sublicense the Service(s), Customer further covenants that Customer will notify Enovum and will remain liable for the payment of all charges due under each Service Order and all acts or omissions of any third party the Customer resells, subleases or sublicenses to shall be attributable to Customer under the Agreement, and (iii) without limiting the generality of Section 11 below, agrees to indemnify, defend and hold Enovum harmless from any losses, liabilities, damages, costs or expenses (including attorney fees) resulting from a third party claim, to the extent arising out of or alleged to have arisen out of claims made by or in relation to any third party that Customer resells or sublicenses the Service(s) to, except to the extent such losses, liabilities, damages, costs or expenses resulted from Enovum's breach of its obligations under this Agreement, an applicable Service Order, or due to Enovum's or its employee's, contractor's or agent's negligent acts or omissions. In the event the Parties are unable to determine the root cause of the claims covered by this Section 4.(f), the Parties agree to submit the matter to the Dispute Resolution process set forth in this Agreement in an attempt to resolve the issue in good faith (g) Any and all obligations or duties that Enovum may have towards Customer under the 2 ---- IJATA CENTERS

![](ex10-20_003.jpg)

Agreement are limited to the obligations set forth in this Agreement and the Service Level Agreement, unless relieved by a Force Majeure event as set forth in Section 30 below. EXCEPT AS EXPRESSLY SET FORTH IN THE AGREEMENT, NO WARRANTIES, EXPRESS OR IMPLIED, ARE MADE BY ENOVUM, AND ENOVUM EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE AS WELL AS ANY WARRANTIES AGAINST LOSS OF DATA (INCLUDING, BUT NOT LIMITED TO LOSS OF DATA RESULTING FROM DELAYS, NON-DELIVERIES, WRONG DELIVERY AND ANY AND ALL SERVICE INTERRUPTIONS). CUSTOMER IS SOLELY RESPONSIBLE FOR AND ENOVUM EXPRESSLY DISCLAIMS ALL REPRESENTATIONS, WARRANTIES AND LIABILITIES OF ANY KIND RELATING TO CUSTOMER'S SOFTWARE AND HARDWARE, INCLUDING THIRD-PARTY SOFTWARE AND/OR HARDWARE LICENSED BY CUSTOMER EXCEPT TO THE EXTENT SUCH WARRANTY CLAIM OR LIABILITY IS CAUSED BY THE NEGLIGENT ACT OR OMISSION OR BREACH OF THE OBLIGATIONS UNDER THIS AGREEMENT OR A SERVICE ORDER BY ENOVUM OR ITS EMPLOYEES, AGENTS, CONTRACTORS OR SUCCESSORS IN INTEREST. 5. COMPLIANCE WITH LAWS AND ENOVUM POLICIES. Each party will comply with all applicable laws, rules and regulations applicable to a party's performance hereunder, including applicable to the provision and use of the Services. Customer will comply with Enovum's Acceptable Use Policy, Privacy Policy, and all other reasonable policies communicated by Enovum to Customer in writing, upon at least sixty (60) days prior written notice (collectively, "ENOVUM POLICIES"). In the event of any conflict between the terms of this Agreement and the Enovum Policies, the terms of this Agreement shall prevail. Enovum Policies shall be reasonable and non-discriminatory both as to content and application. The Customer confirms having taken cognizance of, and understood, Enovum Policies in effect on the date hereof and agrees to regularly verify and take cognizance of any updates to same made available on Enovum's website or on any other medium made available by Enovum. 6. BILLING; PAYMENT OF INVOICES; TAXES. Enovum will inform Customer in writing, including, without limitation, email communication, that all of Customers ordered Service(s) are available for use by Customer ("Service Commencement Notice"). Upon receipt of such notice, Customer shall have a period of ten (10) business days to confirm that the Service(s) is properly functioning. Unless Customer delivers written notice to Enovum within such ten (10) day period that the Service(s) is not properly functioning, billing shall commence following the date of the Service Commencement Notice ("Service Commencement Date"), regardless of whether Customer is prepared to accept delivery of the ordered Service(s). In the event that Customer notifies Enovum within the time period stated above that the Service is not functioning properly, then Enovum shall correct any deficiencies in the Service(s) as soon as commercially possible using best efforts and deliver a new Service Commencement Notice to Customer, after which the process stated above will be repeated. (a) Following the initial charges, payments for Service(s) are due and payable within thirty (30) days of Customer's receipt of an undisputed invoice thereof. Billing for partial months will be prorated based on a calendar month. Invoices shall be sent via email to Customer at ap@cerebras.net. (b) Customer may make payments in either of the following ways: PayPal, Check, Electronic Funds transfer and Wire Transfers, through which payment shall be made on or before the due date. 3 ----

![](ex10-20_004.jpg)

(c) All amounts payable under the Agreement which are not in dispute shall be payable in full within thirty (30) days of the date of invoice or the payment term, in Canadian dollars, unless otherwise specified in the applicable Service Order. In the event Customer fails to make payment of undisputed invoices within fifteen (15) days after receipt of written notice from Enovum for past due payments (the "Grace Period"), Enovum may charge Customer (A) interest at the rate of the lesser of (1) one percent (1%) per month or portion thereof and (2) the highest rate permitted by applicable law. In addition, upon expiration of the Grace Period, Enovum reserves the right to, without limitation, suspend the performance of the Service(s), restrict Customers access to Customer space and equipment, refuse to provide any existing Service(s) and/or new Service(s) requested by Customer, and/or exercise any termination rights it has under this MSA. For clarity, exercise of any such remedies will not relieve Customer of its responsibility for the payment of all accrued charges, plus interests any and all reasonable costs resulting or inherent to the collection process (including, without limitation, collection agency and attorney fees), which sums will remain payable to Enovum. If Enovum terminates the Agreement for non-payment beyond the Grace Period, all charges for the initial remaining term of the Agreement not yet due and payable shall be accelerated and become due at the time of termination. Furthermore, the following schedule shall apply for this subsection (c): (i) on the day following the day the payment is due: Customer is notified by email from Enovum that his account is now overdue; (ii) on the third day following the day the payment is due: Customer is notified by email that his account is now three (3) days overdue; (iii) on the fifth day following the day the payment is due: Customer will be contacted by email and/or phoned by a billing representative to inform him that his account is overdue for more than five (5) days; (IV) on the fifteenth (15th) day following the day the payment is due: if Customer has not made any contact with Enovum, the billing representative may send Customer a three (3) business day suspension notice (the "SUSPENSION NOTICE"). (v) Following the Suspension Notice, Enovum reserves the right to interrupt Service(s) to Customer without further notice, until undisputed payment is made. Enovum further reserves the right to suspend or terminate Customer's account. Following, Enovum may collect the due payment through any legal means, including, without limitation, the use of a collection agency. Customer hereby acknowledges and agrees that any and all reasonable costs resulting or inherent to the collection process and related legal proceedings (including, without limitation, collection agency and attorney fees) shall be payable to Enovum by Customer in addition to the amount subject to collection. If the account is suspended, administration fees shall be charged for the reactivation of the account. (d) If Customer reasonably disputes an invoice, Customer must submit written notice of the disputed amount, within sixty (60) days of the date of the disputed invoice (with details of the nature of the dispute and the Service(s) and invoice(s) disputed). Any chargebacks/holdbacks done by Customer during the dispute or related discussions with Enovum ultimately determined to be properly owed by Customer, will be subject to payment of interest on unpaid amounts from the date originally due. (e) Payment to Enovum, including, without limitation, the one-time setup fee and other initial changes as well as all subsequent charges, are non-refundable, regardless of usage except for Enovum's uncured breach of its obligations herein. Notwithstanding the foregoing, if as the result of a dispute amounts paid to Enovum by Customer are 4 . Docusign Envelope ID: A925FO37-6076-4052-AB87-2A6EEAEB804C ----ORTA CENTERS

![](ex10-20_005.jpg)

determined to be incorrect (in excess of amounts owed) or not in compliance with the Agreement, any such amounts shall be refundable to Customer. (f) Enovum reserves the right to change Customer's payment terms, including requiring a deposit or another form of security in an amount not to exceed one month's charges, if Customer has an Insolvency Event (as defined below). As used herein, "INSOLVENCY EVENT" means making a general assignment for the benefit of a party's creditors, filing a voluntary petition in bankruptcy or any petition or answer seeking, consenting to, or acquiescing in reorganization or similar relief or an involuntary petition in bankruptcy or other insolvency protection is filed against the applicable party or its parent entities anywhere in the world. The acceptance and deposit by Enovum of any payment from Customer that contains reference of any type that such payment constitutes "payment in full" shall not constitute an accord and satisfaction or a waiver by Enovum of any right(s) it possesses, in law or equity, to collect payment in full from Customer for any and all Services provided to Customer under the Agreement. (g) All charges for Service(s) are exclusive of applicable taxes and fees. Except for taxes based on Enovum's existence, status, net income, corporate property, payroll or real/personal property, Customer shall be responsible for all taxes, levies, imposts, duties, fees, withholdings, assessments, deductions or charges whatsoever, imposed, assessed, levied or collected by any governmental authority in any jurisdiction, however designated, imposed on, incident to, or based upon the provision, sale or use of the Service(s) (collectively, together with interest thereon and penalties with respect thereto, the "TAXES"). Customer shall indemnify, defend and hold Enovum harmless from payment and reporting of all Taxes it is required to pay directly to the taxing authority, including costs, expenses, and penalties incurred by Enovum in settling, defending or appealing any claims or actions brought against Enovum related to, or arising from, Customer's non-payment of any such Taxes. If Customer is entitled to an exemption from any Taxes, Customer is required to present Enovum with a valid exemption certificate (in a form reasonably acceptable to Enovum). Enovum will give effect to any valid exemption certificate provided by Customer in accordance with the foregoing sentence to the extent it applies to any Service billed by Enovum to Customer following Enovum's receipt of such exemption certificate. (h) Enovum shall invoice Customer for all charges due hereunder within ninety (90) days of Customer incurring any such charges and Enovum hereby waives all right to payment for any such charges not invoiced within this ninety (90) day period. 7. TERM, TERMINATION; EXPIRATION. (a) All Service Orders shall be for the original term indicated therein and may be renewed by mutual written agreement or in accordance with the following provisions, unless terminated as provided for under this Agreement, the Service Order or by operation of law. Unless otherwise specified in a Service Order, subject to the below, all Services shall automatically renew for successive terms equal to one (1) month in length, and each month to month term will automatically renew for successive one-month terms, (each a "RENEWAL TERM"), unless either party provides written notice of non-renewal to the other party at least thirty (30) days prior to the end of the then-current term ("NON-RENEWAL NOTICE PERIOD"); PROVIDED HOWEVER, in the event Enovum provides notice of non-renewal to Customer, Customer shall have an additional ninety (90) day term before termination becomes effective. Enovum may request an increase of any charges payable by Customer to Enovum during any Renewal Term by providing written notice of the new applicable charges ninety (90) days' prior to the end of the then-current term. Any change in charges for the Services must be mutually agreed to by the Parties in writing. If the Parties cannot agree on the applicable pricing for a Renewal Term, either Party may elect to terminate this Agreement and the applicable order upon at least sixty (60) days prior to the end of the then-current term by written notice. For purposes of this 5 M::NOVUM

![](ex10-20_006.jpg)

Agreement, the original term and any Renewal Term will be referred to as the "Term." (b) After the thirty-sixth (36th) month of the initial term, Customer has the option to exercise a one-time right to terminate any applicable Service Order or Service for convenience prior to the end of the then applicable Term, subject to Customer paying the early termination fee set forth below. Customer must exercise its option to early termination for convenience by serving Enovum with written notice and pay Enovum the below early termination fee no later than the end of the last day of the thirty-first (31st) month of the original Service term ("Early Termination Notice"). Upon Customer serving Enovum with Early Termination Notice and Enovum receiving the full payment of the termination fee, which termination effective date may be up to 120 days after the date of Customer's notice of early termination. The early termination fee (as liquidated damages, not a penalty) is defined as the amount equivalent to 12 months of monthly recurring charges as per the terminated Service orders plus all reasonable costs and expenses, including, without limitation, attorneys' fees, incurred by Enovum as a result of collecting such early termination fee or any other amounts due under this Agreement. Customer shall not be liable for the above-stated early termination fee if Customer terminates this Agreement due to an event of default or insolvency by Enovum pursuant to this Section 7. (c) Either party may terminate this agreement if the other party fails to perform or breaches any material term or condition of the Agreement and does not cure such breach within thirty (30) days following the receipt of a written notice from non-breaching party specifying the nature of the breach in reasonable detail and stating such party's intention to terminate the Agreement and/or Service Order, as applicable. (d) In addition to the foregoing termination rights and other termination rights of Enovum provided for in this Agreement, Enovum may terminate the Agreement or any Service Order, (i) if Customer falls to pay any undisputed amount due hereunder within ten (10) days following the receipt of written notice of such failure after the Grace Period and, (ii) if either party may terminate the Agreement or any Service Order if the other party has had an Insolvency Event. (e) Other than as expressly provided in the Agreement, neither party shall have the right to terminate the Agreement or any Service Order during a term. Upon a termination by Enovum due to Customer's uncured breach in accordance with the provisions hereof, Customer will not receive any refund or credit for the Services that were paid for in advance. (f) In the event of any change in applicable law, regulation, decision, rule or order that materially increases the costs or other terms of delivery of the Service(s), Enovum and Customer will negotiate, in good faith, regarding how to address the change and, in the event that the parties are unable to reach agreement within sixty (60) days after Enovum's delivery of written notice requesting negotiation, then (i) Enovum may modify the Agreement upon written notice, to the extent necessary to address such documented regulatory change, or either party may terminate the Agreement, and (ii) if neither party terminates the Agreement and Enovum elects to modify the Agreement, Customer must not withhold payments for the Service(s) on the basis of such modification. (g) Within thirty (30) days of expiration, or the earlier termination, of the Agreement or any Service Order, Customer shall remove all of its equipment and other personal property (which shall include any hardware or software licensed by Customer from a third party) from Enovum's facility(ies). If Customer fails to remove its equipment or other personal property, Enovum may, upon at least thirty (30) days prior notice to Customer, disconnect and store Customer's equipment or other personal property at Customer's expense, provided that Customer shall be responsible for all monthly recurring fees associated with such Service until removal of such Customer equipment by Customer 6 ----ORTA C:ENTERS

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pursuant to this Agreement. 8. RIGHT OF FIRST REFUSAL ON POWER: Enovum hereby grants Customer a Right of First Refusal ("ROFR") to purchase additional power capacity that becomes available at the Enovum facility, subject to the terms and conditions set forth herein. If Enovum intends to offer additional power capacity for sale or lease, Enovum shall first deliver written notice to Customer ("Offer Notice") specifying the terms and conditions, including price, quantity, duration, and other relevant details of the available power capacity (the "Specified Terms"). Customer shall have thirty (30) calendar days from receipt of the Offer Notice to notify Enovum in writing of its decision to exercise the ROFR ("Acceptance Notice"). If Customer does not deliver an Acceptance Notice within this period, Customer shall be deemed to have waived its ROFR with respect to the specific power capacity offered under the Offer Notice. This ROFR shall apply only to additional power capacity at the current colocation site (MTL03) and shall not affect any existing agreements between Enovum and Customer unless expressly stated otherwise. 9. LIMITATION OF LIABILITY. Subject to the below exceptions, in no event will either party be liable to the other for any indirect, consequential, incidental, special or punitive damages, including, without limitation, loss of use, interruption of business, loss of data or loss of profits, arising out of or in any way connected with the Agreement or the Service(s), and each party's maximum liability under this Agreement will not exceed the greater of (i) the aggregate actual amount paid or payable by Customer for the Services during the twelve (12) month period prior to the date the damage occurred or the cause of action arose, or (ii) Ten Million Dollars ($10,000,000). Notwithstanding anything to the contrary, the limitation on liability in this Section 9 shall not apply to (a) a Party's violation of laws applicable to its performance; (b) breach of the confidentiality obligations under this Agreement; (c) the indemnity obligations under this Agreement, and (d) the intentional acts or omissions of a party. 10. VICARIOUS LIABILITY. Each party acknowledges and shall ensure that, in exercising its rights and obligations, it shall ensure that it, and shall cause its own agents, representatives, suppliers, customers and resellers to, comply with this Agreement, including the AUP, all other Enovum Policies and all applicable laws, rules and regulations. Each party is vicariously liable hereunder for the actions and omissions of all such persons. For clarity, a party is not only liable for its own provision or use of the Service but also vicariously liable for the provision or use by any person or entity that accesses the Service or the Enovum network through the Customer's account or access authorization. 11. INDEMNIFICATION. BY CUSTOMER. Customer agrees and undertakes to indemnify Enovum, its Affiliates, and its officers, directors, members, shareholders, employees, agents, assigns and successors, and shall hold them harmless against any losses, liabilities, damages, costs or expenses (including attorney fees) resulting from a third party claim, to the extent arising out of or alleged to have arisen out of, (a) Customer's breach of its obligations, representations or warranties under the Agreement or the Enovum Policies, or a breach thereof by its agents, client(s) or Affiliates or (b) bodily injury, death or property damage caused by Customer, its client(s) or Affiliates. Enovum agrees to give prompt written notice to Customer of any such claim; provided, that any delay in furnishing such notice shall not discharge Customer from its indemnification obligation hereunder. Customer shall undertake and conduct the defense of any claim so brought. Customer shall keep Enovum advised of the progress of any such claim and Enovum shall have the right to participate in such claim at its own expense. If Customer shall fail to take timely action to defend any such claim then Enovum may defend such claim at Customer's expense. Customer shall not have the 7 ----UATA CEN7 E?S

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right to settle, compromise or otherwise enter into any agreement regarding the disposition of any claim without Enovum's prior written consent, which may not be unreasonably withheld, conditioned or delayed. BY ENOVUM. Enovum agrees and undertakes to indemnify Customer, its Affiliates, and its officers, directors, members, shareholders, employees, agents, assigns and successors, and shall hold them harmless against any losses, liabilities, damages, costs or expenses (including attorney fees) resulting from a third party claim, to the extent arising out of or alleged to have arisen out of, (a) Enovum's breach of its obligations, representations or warranties under the Agreement or the security requirements, or a breach thereof by its agents, client(s) or Affiliates, (b) bodily injury, death or property damage caused by Enovum, its employees(s), agents, contractors, subcontractors or Affiliates, or (c) any violation of applicable laws by Enovum applicable to the Services or the breach of the access and security requirements pertaining to the Customer Equipment. Customer agrees to give prompt written notice to Enovum of any such claim; provided, that any delay in furnishing such notice shall not discharge Enovum from its indemnification obligation hereunder. Enovum shall undertake and conduct the defense of any claim so brought. Enovum shall keep Customer advised of the progress of any such claim and Customer shall have the right to participate in such claim at its own expense. If Enovum shall fail to take timely action to defend any such claim, then Customer may defend such claim at Enovum's expense. Enovum shall not have the right to settle, compromise or otherwise enter into any agreement regarding the disposition of any claim without Customer's prior written consent, which may not be unreasonably withheld, conditioned or delayed. 12. INSURANCE. Customer agrees to keep in full force and effect during the term of the Agreement: (a) comprehensive general liability insurance, including contractual liability insurance, in an amount not less than One Million Dollars $1,000,000 per occurrence, providing for the investigation, defense and satisfaction (by settlement or otherwise) of any claim under the Agreement, (b) "SPECIAL CAUSES OF LOSS" (formerly known as "ALL RISK") Property insurance covering all of Customer's personal property located at any of Enovum's facilities and (c) workers' compensation insurance in an amount not less than that required by applicable law and Employer's Liability with limits of at least Five Hundred Thousand Dollars ($500,000). Each party must procure and maintain the following insurance during the Service Term; (b) commercial general liability insurance, including automobile coverage, with a minimum combined single limit of liability of at least $1,000,000 per occurrence and a general aggregate limit of at least $2,000,000, and additional excess liability insurance on a following form basis, with overall limits of at least $5,000,000; and (c)worker's compensation insurance in compliance with all applicable worker's compensation or similar statutes and employers liability insurance with a limit not less than $1,000,000 per occurrence. The above policies (i) must be maintained with insurance companies authorized to do insurance business in the state in which the Service is provided and that are rated not less than "A" in Best's Insurance Guide. Upon request, each party shall provide certificate(s) of insurance to the other party evidencing such insurance requirements. 13. CUSTOMER INFORMATION. The Customer agrees and undertakes to provide Enovum with accurate and up-to-date contact information such as Customer's name, mailing address, email address, phone number where Customer can be reached during normal business hours, and any other relevant contact information. Customer also undertakes to notify Enovum of any material changes to this contact information, in a timely manner and to keep his or her contact information current and up- to date on the billing portal. 14. [INTENTIONALLY LEFT BLANK] 15. CONFIDENTIAL INFORMATION. "CONFIDENTIAL INFORMATION" means the confidential or proprietary information of a party, including related to products, equipment, services, clients, suppliers, data, pricing and terms of Service and any reports or other documents provided by a disclosing party 8 V ----UR=ITA CENTERS

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to the receiving party with respect to a party's business or operations. Confidential Information shall not include any information which rightfully (a) is known by the receiving party or is publicly available at the time of disclosure by the disclosing party to the receiving party; (b) becomes publicly available after disclosure by the disclosing party to the receiving party, other than by a breach of a duty of confidentiality to the disclosing party;(c) is furnished to the receiving party by a third party without restriction as to use or disclosure;(d) is disclosed with the prior written consent of the disclosing party; or (e) is information that was independently developed by the receiving party. Each party agrees that it (i) will not disclose the Confidential Information to any third party except to contractors, Affiliates or as required by law and (ii) will take reasonable precautions to protect the confidentiality of such Confidential Information. In the event that a receiving party is required by law to make any disclosure of any Confidential Information, the receiving party must first give written notice of such requirement to the disclosing party, and must permit the disclosing party to intervene in any relevant proceedings to protect its interests in the Confidential Information. Each party acknowledges and agrees that damages at law would be an insufficient remedy to the disclosing party in the event that any of the covenants contained in this Section are violated by the receiving party. Accordingly, in addition to any other remedies or rights that may be available to a party, each party shall also be entitled, upon application to a court of competent jurisdiction, to obtain equitable relief to enforce the provisions of this Section, and in any proceeding in which a party attempts to specifically enforce any or all such covenants, the other party hereby waives the defense that an adequate remedy at law exists. 16. DISCLOSURE TO LAW ENFORCEMENT. The Enovum Policies specifically prohibit the use of the Services for illegal activities. Therefore, Customer agrees and consents that Enovum, may, upon providing Customer with prior written notice to the fullest extent legally permissible, disclose any necessary Customer information, including, without limitation, assigned IP numbers, account history, account use, etc. to any law enforcement agent/agency or police body delivering Enovum with a court order, search warrant or other legally enforceable document forcing Enovum to disclose such information without further consent from Customer. In addition, in the event of Customer's illegal conduct, following the delivery of such a legally enforceable document evidencing any such unlawful activities by Customer from a law enforcement agent/agency, Enovum shall have the right, in its sole discretion, to, upon written notice to Customer, immediately suspend the Services. The notice of suspension to Customer must explain the illegal activity that Customer is being accused of. In the event Customer cannot reasonably demonstrate that it is not guilty of such illegal activity or if Customer has not remedied such alleged illegal activity within the applicable cure period, Enovum may terminate all Service(s) set forth in this Agreement for cause as set forth in Section 7.(c) above. 17. PUBLICITY. Neither party shall issue a press release nor make any other public statement relating to this Agreement, except as required by law or agreed to between the parties in writing. 18. [INTENTIONALLY LEFT BLANK] 19. [INTENTIONALLY LEFT BLANK] 20. [INTENTIONALLY LEFT BLANK]. 21. [INTENTIONALLY LEFT BLANK]. 22. INPUT, VIEWS AND OPINIONS. Enovum does not endorse any input, view, opinions or other statements whatsoever posted to the Enovum network by anyone other than Enovum itself. The input, view, opinions and other statements of anyone other than Enovum should in no way be construed as coming from Enovum and Enovum shall be in no way responsible for any such input 9 -----IJATA C:ENTE?S J!,T

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unless it is posted to the Network by Enovum itself. Enovum is not responsible for the content of any other websites linked to its network; links are provided as Internet navigation tools only. Enovum disclaims any responsibility for any inappropriate use of its network by others and shall in no way be held liable for the conduct of any other person. 23. ACCESS. Subject to Customer's compliance with the terms and conditions of this Agreement, Customer may access Customer's equipment in the Enovum colocation facility 24 hours per day, 365 days per year. 24. CUSTOMER EQUIPMENT. Any equipment installed within the Customer's cabinet(s) shall be and at all times remain Customer's personal property, shall not be deemed fixtures hereunder and, subject to the applicable Data Center Rules, may be removed by Customer at any time. Under no circumstance, other than the Customer having any outstanding and current invoices and applicable laws, shall Enovum prevent the Customer from accessing and/or physically removing any equipment from Enovum's colocation facility. At no point in time shall Enovum have access (or grant access) to Customer's equipment secured in Customer's cabinet, except in the event of an emergency or as necessary for Enovum's use of Remote Hands only if expressly pre-approved by Customer in writing. Enovum shall not require Customer to relocate the Customer equipment except in the event of an emergency, at which time any such relocation within the facility shall have materially the same environmental conditions for, security and accessibility to the Customer equipment. Customer understands that Enovum is not obligated to obtain or maintain a redundant facility hereunder, unless otherwise mutually agreed to by the parties in writing. 25. RELATIONSHIP OF PARTIES. Nothing in the Agreement will be construed to imply a joint venture, trust, partnership or agency or any other fiduciary relationship or relationship similar to any of the foregoing between the parties, and Enovum will be considered an independent contractor when performing Service(s) under the Agreement. 26. ASSIGNMENT. Except as set forth below, Customer shall not assign or transfer the Agreement without Enovum's prior written consent. Enovum may assign its rights under the Agreement or a portion thereof without consent from Customer as long as such assignment does not cause any export controls or other regulatory violations, and as long as such assignee or successor in interest agrees to be bound by this Agreement. Notwithstanding the foregoing, Customer may assign or transfer the Agreement, in whole or part without Enovum's consent in (i) a sale of all or substantially all of its assets, merger, consolidation, change of control, or such other corporate transaction or (ii) an assignment to any Affiliate or subsidiary. In the event of any permitted assignment herein, the assigning party will notify the other party of the assignment as soon as commercially reasonable after the consummation of the permitted transaction. The Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns. 27. NO THIRD PARTY BENEFICIARIES. No provisions of the Agreement are intended to, or shall be construed to, confer upon any person, other than the parties hereto, any rights, remedies or other benefits under or by reason of the Agreement. 28. NOTICES. All notices required or permitted hereunder must be given in writing and, except for routine notices that the parties agree to send and receive electronically, shall be considered properly given if hand-delivered or sent by a recognized courier service (with delivery receipt requested) at the address specified on the first page of this MSA or at such other address as a party may specify in writing from time to time. All notices shall be deemed given when received. 29. GOVERNING LAW; SUBMISSION TO JURISDICTION. This Agreement shall be interpreted and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the Province of Ontario and the federal laws of Canada applicable in that province. Each of the parties irrevocably and unconditionally (i) submits to the exclusive jurisdiction of the courts of the Province of Ontario over any action or proceeding arising out of or relating to this Agreement, (ii) 10 -6:NOVU ----i:Jr-lTA CENTERS

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agrees to commence such an action or proceeding in Toronto, Ontario, and to cooperate and use its commercially reasonable efforts to bring the action or proceeding before the Ontario Superior Court of Justice (Commercial List), (iii) waives any objection that it might otherwise be entitled to assert to the jurisdiction of such courts and (iv) agrees not to assert that the courts of any other jurisdiction are a more appropriate forum for the determination of any such action or proceeding. 30. FORCE MAJEURE. Except with respect to any payment obligations, but subject to the immediately following sentence, neither party will be liable for any failure or delay in its performance under the Agreement to the extent due to causes beyond its reasonable control (i.e., such event was not caused by the fault or negligence of such party and could not have been prevented or avoided by that party through commercially reasonable precautions) ("FORCE MAJEURE"), and any time period within which such obligations are to be performed pursuant to the terms of this Agreement shall be extended for the period of such inability to perform. In the event that Enovum is not able to deliver any Service(s) as a result of a Force Majeure event, Enovum must immediately notify Customer in writing of the occurrence and the nature of the Force Majeure event, and Enovum will immediately implement a contingency plan to mitigate any interruption or disruption to the Services; provided however, nothing herein obligates Enovum to obtain and maintain a redundant location as part of the contingency plan unless the parties otherwise mutually agree to such contingency plan in writing. Customer shall not be obligated to pay Enovum for the affected Service(s) for so long as Enovum is unable to deliver the affected Service(s). If more than 30 consecutive days have passed since the affected party has given notice of such event of force majeure and the affected party, for any reason whatsoever, has not resumed full performance of its affected obligations in accordance with the terms of this Agreement, then the other party may, at its sole option, without affecting any of its other remedies pursuant to this Agreement or under applicable laws, terminate this Agreement immediately by giving written notice of termination to the affected party. 31. WAIVER. No waiver will be effective unless documented in a writing signed by the party against which enforcement of the waiver is sought. The failure of either party to insist upon strict performance of any of the terms or provisions of the Agreement, or to exercise any option, right or remedy contained herein, shall not be construed as a waiver of any future application of such term, provision, option, right or remedy, and such term, provision, option, right or remedy shall continue and remain in full force and effect. 32. SURVIVAL. Any term or provision of the Agreement of an ongoing nature and/or which, by their nature and context, should reasonably be expected to survive the expiration or earlier termination of the Agreement, shall so survive such expiration or termination thereof. 33. PREVAILING PARTY. In the event of a dispute arising from or related to the Agreement, the prevailing party shall be entitled to recovery of all reasonable costs incurred, including, without limitation, court costs, attorneys' fees and other related costs and expenses. 34. DISPUTE RESOLUTION. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination or invalidity hereof (each, a "Dispute"), shall be submitted for negotiation and resolution to the senior-level management of the Parties, by delivery of written Notice (each, a "Dispute Notice") from either of the parties to the other party. Such persons shall negotiate in good faith to resolve the Dispute. 11 ----i:JATA CENTERS

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35. COUNTERPARTS; ELECTRONIC COPIES. This MSA and any Schedule or Service Order may be executed in counterparts which, when taken together, shall constitute one and the same document. In addition, each party hereby agrees that facsimile, photographic or electronic copies of any of the foregoing shall be deemed an original thereof. Finally, each party hereby consents to the use of electronic signatures, including via Adobe e-signature or a similar product or service, and acknowledge and agree that no electronic record or signature shall be challenged or denied legal effect or enforceability because it is in electronic form. 36. SEVERABILITY. If any term or provision of the Agreement shall be declared by a court of competent jurisdiction to be invalid, unenforceable or illegal, that provision shall be limited or eliminated to the minimum extent necessary so that the Agreement shall otherwise remain in full force and effect and enforceable. If the surviving portions of the Agreement fail to retain the original intentions of the parties as of the date of this Agreement, the Agreement shall be terminated by the mutual consent of the parties. 37. HEADINGS. Headings are for ease of reference only and shall not have any effect upon the construction of the Agreement. 38. CONSTRUCTION. The parties agree that each party has reviewed and participated in setting the terms of the Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Agreement. 39. ENTIRE AGREEMENT; MODIFICATION; ORDER OF PRECEDENCE. The Agreement constitutes the entire agreement between the parties relating to its subject matter and the Agreement supersedes all prior agreements and understandings between the parties, oral or written, with respect to its subject matter and may not be changed unless mutually agreed upon in writing by both parties, unless otherwise specifically provided herein. In case of a conflict or inconsistency between any of the terms and conditions in this MSA and any other terms and conditions in any Schedule or Service Order, the order of precedence shall be: any Schedule, any Service Order, and this MSA. For the avoidance of doubt, (i) any purchase order sent to Enovum by Customer (for Customers administrative purposes or otherwise) shall not be binding, and (ii) in case of a conflict between the Enovum Policies and this Agreement, the Agreement shall prevail to the extent of the conflict or inconsistency. This Agreement replaces and supersedes in its entirety the Master Services Agreement fully executed on January 10, 2025. 40. ENGLISH LANGUAGE. The parties confirm that it is their wish that this Agreement, as well as all other documents relating thereto, including all notices, be drawn up in the English language only. LES PALTIES AUX PRESENTES CONFIRMENT FEUR VOFONTE QUE CETTE CONVENTION, DE MEME QUE TAUS FES DOCUMENTS, Y COMPRIS TOUT AVIS, QUI S'Y RATTACHENT, SOIENT REDIGES EN LANGUE ANGLAISE. IN WITNESS WHEREOF, the parties have executed this MSA by their duly authorized representatives. 12 NTERS

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AGREED TO BY ENOVUM DATA CENTER CORP. AUTHORIZED SIGNATORY: AGREED TO BY CUSTOMER'S AUTHORIZED SIGNATORY: Name: Signature: Title: Date: Billy Krasskopoulos 1/18/2025 Name: Signature: TIiie: Date: PRESIDENT 1/18/2025 13

## Exhibit 10.21

**Exhibit 10.21**

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EXHIBIT 10.21 MASTER SERVICES AGREEMENT This Master Services Agreement (this "MSA") is hereby entered into by BIT DIGITAL ICELAND, EHF., an Icelandic limited company ("COMPANY"), and CORAL VENTURES LP FUND XII, a company incorporated in DELAWARE ("CLIENT"), and is effective as of December 11, 2024 ("MSA EFFECTIVE DATE"). In this MSA, Company and Client are each referred to as a "PARTY" or collectively as the "PARTIES". Capitalized terms that are not defined in the body or exhibits of this MSA have the meanings set forth in Exhibit A (DEFINITIONS). 1. MSA. 1.1 Purchase Orders. From time to time, Client may procure services from Company by delivering to the Company a purchase order substantially in the form of Exhibit B (each such purchase order, a "PURCHASE ORDER"). Each Purchase Order will describe the specifications and duration of the services that the Company will provide to Client (the "SERVICES"). 1.2 AP_PLICATION OFMSA to Purchaser Orders. When interpreting the terms of this MSA with respect to a given Purchase Order, (a) references to "SERVICES" will be construed as references to the Services described in the Purchase Order, and (b) references to a "PURCHASE ORDER" will refer to the terms of both the MSA and the terms of this Purchase Order as applicable to the MSA. If there are any special terms which should apply to a particular order, such terms shall be specified in the Purchase Order for such order. If there is a conflict between the terms of a Purchase Order and this MSA, the Purchase Order will control. 2. SERVICES. With respect to the Services set forth in a Purchase Order, Company will provide the Services and the Parties will perform as follows: 2.1 PROVISION of SERVICES. Company will provide the Services in accordance with the terms of this MSA and each Purchase Order. 2.2 Service LEVEL Commitments. The Company will provide the Services with an Uptime of at least 99.5% pursuant to the terms of this MSA and any Purchase Order. 2.3 Minimum Purchase Commitment. Client will commit to purchase Services in respect ofFive- hundred and seventy-six (576) graphics processing units ("GPUS") from the Company with technical specifications reasonably approximating those outlined in Exhibit C of this MSA (unless otherwise specified in a Purchase Order); provided, that, upon mutual agreement of the Parties, smaller order units ofGPUs may be requested from time to time. 2.4 RESALE of SERVICES. Company agrees that Client may resell or stake to third parties any Deliverables or Services provided under this MSA or any Purchase Order; provided, that, (a) such resale or staking shall not cause either Company or Client to violate any Applicable Law and (b) Client shall maintain at all times a list of third parties who purchase or otherwise receive such Deliverables or Services (in the case that the Deliverables are staked, such list will comprise the name of the staking platform(s)) and shall make such list available in writing promptly upon Company's request with such identifying information available and reasonably requested by Company. For the avoidance of doubt, any such third party shall not be a third party beneficiary of this MSA or any Purchase Order and shall have no rights under this MSA or any Purchase Order.

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3. FEES AND INVOICES. 3.1 Service Fees. Client will pay the Company for the Services in accordance with the pricing contained upon execution by both Parties of a Purchase Order 3.2 Invoicing. The Company will invoice Client on a monthly basis in arrears and Client shall pay undisputed Service Fees within thirty (30) days of receipt of each invoice. No invoice shall be disputed unless in good faith supported by documentation provided promptly to Company following such dispute. Company shall reasonably review such dispute and, within thirty (30) days, propose a resolution. If the Parties cannot agree on the resolution, the dispute will be resolved pursuant to Section l 0.1 of this Agreement. Client will pay any disputed amount within thirty (30) days of final resolution of the dispute. 3.3 Service Level Credits. In the event that Company fails to meet the committed Uptime of at least 99.5% as set forth in Section 2.2 in any month measured in the aggregate in respect of any Purchase Order, Client shall be entitled to receive service credits as follows: 3.3.1. For Uptime falling below 99.0% but equal to or above 95.0%, Client shall be entitled to a service credits equivalent to 10% of the monthly Service Fees for the affected Services. 3.3.2. For Uptime falling below 95.0% but equal to or above 90.0%, Client shall be entitled to service credits equivalent to 25% of the monthly Service Fees for the affected Services. 3.3.3. For Uptime falling below 90.0%, but equal to or above 50.0%, Client shall be entitled to service credits equivalent to 50% of the monthly Service Fees for the affected Services. 3.3.3. For Uptime falling below 50.0%, but equal or above 10%, Client shall be entitled to service credits equivalent to 50% of the monthly Service Fees for the affected Services. 3.3.4 For Uptime falling below 10%, Client shall be entitled to service credits equivalent to 100%. Client must notify Company in writing within twenty four (24) hours from the time of Downtime, and failure to provide such notice will forfeit the right to receive service credits. Client's sole and exclusive remedy, and Company's entire liability, in connection with failure to meet Uptime requirements shall be the issuance of service credits per this Section 3.3. Such credits shall be applied to future invoices issued to Client for Services under a specific Purchase Order and if so requested by Client. If a dispute arises with respect to the amount of the service credits, Company will make a determination in good faith based on its system logs, monitoring reports, configuration records, or other available information. Credits issued pursuant to this provision shall not be construed as liquidated damages or a penalty. The service credits may not be transferred or exchange for cash or other forms of payment and shall apply to the respect Purchase Order. Upon expiration or termination of a Purchase Order, any associated service credits shall expire and have no further force or effect. 3.4 Taxes. The fees and expenses set forth herein do not include any foreign, federal, state or local sales, value added, use, withholding or other similar taxes, tariffs or duties, however designated, levied against the sale, licensing, delivery or use of the Services ("TAXES"). Each Party shall be responsible for its own Taxes; provided, that, Client shall be responsible for all Taxes related to the provision of the Services; provided, further, that Client shall not be liable for any Taxes based on Company's net income and ad valorem, personal and real property taxes imposed on Company's owned or leased property.

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4. INTELLECTUAL PROPERTY. 4.1 License to Deliverables. Company hereby grants to Client during the Term a non-transferable, non-sublicensable (except as necessary to resell the Services), revocable in the case of termination of this MSA, nonexclusive, royalty-free, fully paid-up, worldwide right and license in and to use the Deliverables in connection with the Services. Client use of the Deliverables is governed by the MSA, the Purchase Order's relevant terms, and the Company's Intellectual Property Rights. For avoidance of doubt, nothing herein shall limit, prohibit or restrict Company's ownership or use of its Intellectual Property Rights in the Deliverables including, but not limited to, developing or building a similar product or service (or contract with a third party to do so) using similar ideas, features, functions or graphics, nor shall anything in this Section 4 prohibit Client from reselling the Deliverables or Services to third parties; provided, that, such resale shall not cause either Company or Client to violate any Applicable Law. 4.2 License to Company Background LP. Company shall retain ownership of all Intellectual Property Rights to any invention, work or other matter, including (a) Company know-how, processes, methodologies, user interface designs, architecture, class libraries, and documentation (both printed and electronic) existing as of the MSA Effective Date, and (b) any derivatives, improvements, enhancements or extensions of the foregoing conceived, reduced to practice, or developed by Company during the term or in performance of this MSA, or (c) that has been or is created, conceived or reduced to practice by Company prior to or independently of this MSA but incorporated into or used with the Deliverables (the "BACKGROUND IP"). For the avoidance of doubt: (a) except as may be necessary for the resale or staking of the Deliverables (and as otherwise consistent with the term of this MSA), Client shall not, or shall not authorize anyone to sublicense, license, or resell Background IP. Any third-party intellectual property used in the provision of Services shall be subject to the terms and conditions of any applicable third-party license agreements, and each Party shall be responsible for obtaining and maintaining any necessary licenses for third-party intellectual property it provides in connection with this MSA. 4.3 OWNERSHIP AND Licensing of Client DATA. Except as expressly otherwise provided herein, all Client Data provided to the Company in connection with the Services is the exclusive property of Client. Client hereby grants Company a non-exclusive, revocable, non-transferable, royalty- free, fully paid-up, worldwide right and license to use, access, evaluate, test, install, integrate, modify, display and reproduce the Client Data during the MSA Term solely for the purpose of providing the Services under this MSA or any Purchase Order. For the avoidance of doubt, Client Data is Confidential Data. 4.4 NON-EXCLUSIVITY. Except as expressly otherwise provided herein, the Parties acknowledge and agree that the terms of this MSA and any Purchase Order, the Services, and the relationship between the Parties and their respective Affiliates, do not impose any obligations of exclusivity on either Party or its Affiliates. 5. TERM AND TERMINATION RIGHTS. 5.1 Tenn; Renewal. This MSA commences on this MSA Effective Date and, unless otherwise terminated pursuant to the terms of this MSA, continues for a period of twenty five (25) months (the "INITIAL TERM" the Initial Term and any renewal terms collectively the "Term")). This MSA shall automatically renew for subsequent twelve (12) month periods unless either Party sends a written notice of non-renewal at least ninety (90) days prior to the end of the Term.

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5.2 Purchase Order Term. Each Purchase Order commences on the effective date set forth in the Purchase Order and, unless the Purchase Order is terminated in accordance with its terms, continues for the period of time set forth in the Purchase Order, or if no period of time is set forth, for the period of time coterminous with this MSA (such period of time, the "PURCHASE ORDER TERM"). If a Purchase Order Term continues beyond the expiration of the MSA Term, the MSA Term of this MSA will be extended until such time that the Purchase Order expires or is terminated, solely with respect to the Services provided under that Purchase Order. The termination of a specific Purchase Order will not terminate this MSA or any other Purchase Order. 5.3 Tennination for Cause. Either Party may terminate this MSA or any Purchase Order (as the case may be) by providing written notice to the other Party if the other Party comm its a material breach of this MSA or the Purchase Order (as the case may be) that (a) is not capable of cure, or (b) is capable of cure but that the other Party fails to cure within thirty (30) days after receipt of written notice from the other Party of such breach. 5.4 Tennination for Financial Insolvency. Either Party, at its sole discretion, may terminate this MSA or a Purchase Order (as the case may be) by providing the other Party with written notice, if the other Party (a) becomes insolvent, undergoes a dissolution, or ceases its business operations, or any petition is filed or other steps are taken for its bankruptcy, liquidation, receivership, administration, examinership, dissolution, or other similar action, or (b) it commences negotiations or enters into an agreement with all or any class of its creditors in relation to any assignment for the benefit of such creditors, the rescheduling of any of its debts, and/or any compromise or other arrangement with any of its creditors. 5.5 Termination Due to a New Regulatory Requirement. If a Governmental Authority enacts or issues an Applicable Law that conflicts with any term of a Purchase Order (a "REGULATORY REQUIREMENT"), either Party, at its sole reasonable discretion, may (with reasonable notice to the other Party) modify or terminate such Purchase Order, to account for the economic or legal impact of such Regulatory Requirement. 5.6 NOT EXCLUSIVE REMEDY. Termination of this MSA or any Purchase Order is not an exclusive remedy, and the exercise by any Party of any remedy under this MSA or any Purchase Order will be without prejudice to any other remedy it may have under this MSA, the Purchase Order, Applicable Law, or otherwise. 5.7 Survival. The following Sections and Exhibits will survive any expiration or termination of this MSA or a Purchase Order: Section 1.1 (Purchase Orders), Section 1.2 (Application ofMSA to Purchase Orders), Section 4.4 (Non-Exclusivity), Section 4.3 (Ownership and LicensinL! of Client Data), Section 3 (Fees and Invoices) regarding any pending payment, Section 5.8 (Survival), Section 5.8 (Effect of Termination), Section 7 (Disclaimers: Limitation of Liability), Section 8 (Indemnification), Section 9 (Confidentiality), Section JO (General}. and Exhibit A (Definitions) to this MSA, in addition to any Sections and Exhibits that are otherwise designated as surviving. 5.8 Termination by Customer after Thirteen (13) Months. Notwithstanding anything to the contrary in this MSA, after the thirteenth (13th) month from the MSA Effective Date, Customer may terminate this MSA (and/or any Purchase Order, as specified in the notice) for any or no reason upon providing at least thirty (30) days' prior written notice to Company. If Customer terminates under this Section 5.9, Customer will pay Company for all Services rendered and expenses incurred through the effective date of termination, including any non- cancelable costs already committed by Company prior to receiving notice of termination.

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5.9 Effect of Termination. Termination or expiration of a Purchase Order will not affect a Party's obligations or remedies under this MSA or any Purchase Order with respect to transactions submitted by Client before the date of termination or expiration, or with respect to a Party's right to collect for fees of any transaction. Upon any such termination or expiration, each Party shall immediately pay the other Party for all amounts due and payable under the MSA and/or relevant Purchase Order hereunder as of the effective date of termination or expiration, including any interest for late payments and any legal fees incurred by Company to recover any such fees, as applicable. Upon termination or expiration of this MSA, each Party shall promptly return or destroy all Confidential Information of the other Party in its possession, and provide written certification of such return or destruction upon request; provided, that, each Party may retain one copy of the other Party's Confidential Information as may be required by (a) Applicable Law, (b) its standard document retention procedures, including any automatic electronic archiving and back-up procedures. 6. REPRESENTATIONS, WARRANTIES AND COVENANTS. 6.1 Mutual. Each Party to this MSA and a Purchase Order represents and warrants that: (a) it has and will retain, the full right, power, and authority to enter into this MSA or the Purchase Order; (b) it has been duly authorized to do so by all required governmental, corporate, or similar action; (c) when executed and delivered by such Party, this MSA or the Purchase Order will be legally binding upon and enforceable against such Party, and this MSA or the Purchase Order will not conflict with any agreement, instrument, or understanding, oral or written, to which such Party is a party or by which it may be bound; (d) as of the date such Party executed this MSA or the Purchase Order, there are no proceedings pending or, to its knowledge, threatened or reasonably anticipated that would challenge or that may have a material adverse effect on its performance under this MSA or the Purchase Order; and) its performance under this MSA and each Purchase Order shall be in compliance with Applicable Law. Each Party is duly organized, validly existing, and in good standing as A corporation or other entity as represented in this MSA or the Purchase Order under the laws and regulations of its jurisdiction of incorporation, organization, or chartering. 6.2 Company represents and warrants to Client that, the Services and Deliverables provided under this MSA and any Purchase Order, including but not limited to all Company Technology and Background IP utilized in providing such Services and Deliverables, to the best of its knowledge, do not infringe, misappropriate, or otherwise violate any Intellectual Property Rights of any third party. In the event of a claim against Client alleging that the Services or Deliverables infringe, misappropriate, or otherwise violate any third prty's Intellectual Property Rights, Company shall, at its own expense, either: (a) procure for Client the right to continue using the Services or Deliverables; (b) replace or modify the Services or Deliverables so that they become non-infringing; or (c) if options (a) and (b) are not commercially reasonable, terminate the Purchase Order related to the infringing Services or Deliverables. This representation and warranty does not apply to use of the Services or Deliverables in combination with any other product or service not provided by Company, to the extent that the infringement arises from such combination. 6.3 Company warrants that the Services will be performed in a professional and workmanlike manner consistent with generally accepted industry standards.

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7. DISCLAIMERS; LIMITATION OF LIABILITY. 7.1 Warrantv Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS MSA OR ANY PURCHASE ORDER, THE SERVICES AND ANY COMPONENTS THEREOF, ANY UPDATES, THE DOCUMENTATION, THE DELIVERABLES, AND ANY OTHER MATERIALS PROVIDED IN THIS MSA OR ANY PURCHASE ORDER, AS WELL AS THE SERVICES, ARE PROVIDED "AS IS" AND "AS AVAILABLE." EXCEPT AS EXPRESSLY SET FORTH IN THIS MSA OR ANY PURCHASE ORDER, NEITHER PARTY TO THIS MSA OR A PURCHASE ORDER MAKES ANY REPRESENTATIONS OR WARRANTIES, AND ALL OF THE PARTIES HEREBY EXPRESSLY DISCLAIM, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, STATUTORY OR OTHERWISE, INCLUDING WARRANTIES OF MERCHANTABILITY AND FI'INESS FOR A PARTICULAR PURPOSE, TITLE, AND IMPLIED WARRANTIES OF NON-INFRINGEMENT AND THOSE ARISING FROM THE COURSE OF DEALING OR PERFORMANCE, USAGE OR TRADE PRACTICES. 7.2 Limitation of Liability. NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE, OR SPECIAL DAMAGES, INCLUDING LOST PROFITS, REGARDLESS OF THE FORM OF THE ACTION OR THE THEORY OF RECOVERY, EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF THOSE DAMAGES. FURTHER, TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, ANY DAMAGES, IN THE AGGREGATE, SHALL NOT EXCEED AN AMOUNT EQUAL TO THE SERVICE FEES PAID TO COMPANY IN TIIE TWELVE (12) MONTHS PRECEDING THE CLAIM, WHETHER OR NOT SUCH DAMAGES ARE FORESEEABLE OR SUCH PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANY OF THE FOREGOING, THE LIMITATIONS OF LIABILITY SET FORTH IN THIS SECTION 7.2 SHALL NOT APPLY TO EITHER PARTY'S DAMAGES ARISING FROM A BREACH OF SECTION 8 OR 9 OR EITHER PARTY'S FRAUD OR WILLFUL OR INTENTIONAL MISCONDUCT. 8. INDEMNIFICATION. 8.1 Indemnification. Except as otherwise expressly provided hereunder, Client agrees to indemnify, defend, and hold harmless Company and its Affiliates, and their respective employees, officers, directors, advisors, counsel, and other representatives (collectively, the "COMPANY INDEMNIFIED PARTIES") from and against any and all losses, costs, expenses (including reasonable legal fees and expenses such as for attorneys, experts, and consultants, and reasonable out-of-pocket costs), damages, or liabilities (collectively, "LOSSES"), suffered or incurred by any COMPANY INDEMNIFIED PARTY in connection with: (a) Client's material breach of this MSA or Applicable Law; (b) Client's fraud, gross negligence, or willful misconduct in the performance of obligations set forth in this MSA; or (c) any third-party claim (each a "CLAIM") that the Client Data, or any Company Indemnified Party's receipt, use or circulation of the foregoing in accordance with this MSA, has infringed, violated, or misappropriated any third-party Intellectual Property Rights in copyrights, patents, or trademarks. 8.2 OTHER REMEDIES. The remedies in this Section 8 are not exclusive and do not limit the remedies provided elsewhere in this MSA, a Purchase Order or under Applicable Law.

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9. CONFIDENTIALITY. 9.1 Definilions and Exclusions. 9.1.1 Definition of Confidential Information. A Party (each a "DISCLOSING PARTY") may disclose information, directly or indirectly, to the other Party (each a "RECEIVING PARTY"), and such information will be deemed to be "CONFIDENTIAL INFORMATION" if when it is disclosed, regardless of the form or medium (whether in writing, verbally, electronically, or otherwise), it is designated as confidential by the Disclosing Party or reasonably should be understood as confidential. Confidential Information includes information such as a Party's product designs, business affairs, vendors, trade secrets, third-party confidential information, product plans, software, Technology, financial information, marketing plans, business opportunities, pricing information, information regarding customers or users, inventions, and know-how. All non-public Company Technology, Company Data and information comprising or concerning Company's or its Affiliates' facilitation of the Services, will be deemed to be Company's Confidential Information. Notwithstanding the foregoing, general information about the Services may be shared by Company to the general public in the form of press releases or similar statements and specific information, including transaction volume, may be shared by Company to investors or potential investors. Confidential Information does not include information that: (a) is or becomes generally available to the public other than as a result of a disclosure by the Receiving Party in breach of this Agreement; (b) was known to the Receiving Party prior to its disclosure by the Disclosing Party without breach of any obligation of confidentiality; (c) is received from a third party without breach of any obligation of confidentiality; or (d) was independently developed by the Receiving Party without use of or reference to the Disclosing Party's Confidential Information. 9.2 USE AND DISCLOSURE OF CONFIDENTIAL Information. A Receiving Party will only use the Confidential Information of a Disclosing Party as required to perform its obligations and exercise its rights under this MSA or a Purchase Order, and as set forth in SECTION 9.3. A Receiving Party will hold the Confidential Information it receives in strict confidence and take appropriate precautions to protect such Confidential Information (such precautions to include, at a minimum, all precautions such Receiving Party employs with respect to its own Confidential Information). A Receiving Party will not disclose the other Party's Confidential Information to anyone other than to its Affiliates and its and their Representatives, subject TO the following conditions: any such Affiliate or Representative who receives Confidential Information in accordance with the foregoing must (a) have a"need to know" such Confidential Information for the purposes of the Receiving Party exercising its rights or performing its obligations under this MSA or a Purchase Order, and (b) be subject to confidentiality obligations that offer at least the same degree of protection as the confidentiality obligations set out in this MSA or the Purchase Order (as the case may be). A Receiving Party making such disclosures will be liable for each such Affiliate's or Representative's retention, use, and disclosure of the Disclosing Party's Confidential Information. A Receiving Party will treat all Confidential Information disclosed by a Disclosing Party, its Affiliates, and their respective Representatives who are disclosing Confidential Information on their behalf in connection with the Services, as the Disclosing Party's own Confidential Information. 9.3 Disclosures to Governmental Authorities. A Receiving Party may disclose the existence of this MSA or the Purchase Order and their respective key terms pursuant to a regulatory filing to a Governmental Authority or recognized stock exchange, provided that the Disclosing Party is notified in advance and given a reasonable opportunity to review and comment on the disclosure. In addition, if a Governmental Authority, recognized stock exchange or Applicable Law requires a Receiving Party to disclose the Confidential Information of a Disclosing Party, the Receiving Party will: (a) immediately notify the Disclosing Party after learning of the

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existence or likely existence of such requirement (unless prohibited by Applicable Law or otherwise subject to attorney-Client privilege); (b) limit the scope of such disclosure to only the Confidential Information necessary to comply with the requirement; (c) make reasonable efforts to obtain confidential treatment of or protection by order of any Confidential Information; and (iv) permit, subject to Applicable Law, the Disclosing Party to seek a protective order or to otherwise challenge or limit the disclosure of the Confidential Information prior to the disclosure thereof. 9.4 Feedback. Client or any one of its respective Affiliates may, but is not required to, provide the Company or its Affiliates with suggestions, comments, ideas, or know-how, in any form, that are related to the Company's or its Affiliates' respective products, services, or Technology ("FEEDBACK"). Any such Feedback will not be considered Confidential Information. Neither the Company nor any of its Affiliates will have any obligation to provide compensation for any use of Feedback. Client hereby grants to the Company, on Client's and its Affiliates' behalf, and on behalf of its and their employees, contractors, and agents, a non-exclusive, perpetual, irrevocable, worldwide, royalty-free, sublicensable (through multiple tiers) right and license to use, copy, incorporate, reduce to practice, and create derivative works from Feedback provided by Client, its Affiliates, or its or their respective employees, contractors, or agents. 10. GENERAL. IO.I Governing Law: Jurisdiction; Venue: DISPUTE Resolution. This MSA and the Purchase Orders shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice or conflict of law provision or rule that would cause the application of laws of any jurisdiction other than those of State of New York. The Parties will make a good-faith effort to settle between themselves any claim, dispute, or controversy (each, a "DISPUTE") arising out of or in connection with this MSA or any Purchase Order. If any Dispute cannot be settled within forty-five (45) days after notice of such Dispute is provided by one Party to the other Party, such Dispute shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules. The Parties further agree, pursuant to Article 30(2)(b) of the Rules of Arbitration of the International Chamber of Commerce, that the Expedited Procedure Rules shall apply, provided the amount in dispute does not exceed $75,000 at the time of the communication referred to in Article 1(3) of the Expedited Procedure Rules. Any arbitration or other action or proceeding brought under this MSA shall be conducted in New York, New York, United States of America, in English. In the event that a Dispute under this MSA or any Purchase Order proceeds to arbitration and a final decision is rendered, the arbitrator(s) shall award reasonable attorneys' fees and costs to the prevailing Party in any claim, in addition to any other relief to which that Party may be entitled. 10.2 ASSIGNMENT. This MSA and the Purchase Orders will each bind and inure to the benefit of each of its respective Parties and their permitted successors and assigns. Client may not, in whole or in part, assign this MSA or the Purchase Order (as the case may be), without the prior written consent of the Company. Except as expressly authorized under this Section 10.2, any attempt by either Party to transfer or assign this MSA or any Purchase Order will be null and void; provided, that, Company may pledge, transfer, convey, assign, or novate this MSA or a Purchase Order to a financier of it or an Affiliate in connection with a financing. 10.3 Notices. Except as otherwise expressly set forth in this MSA or a Purchase Order, any notice required under this MSA or a Purchase Order will be in writing delivered to the applicable address below and will be deemed given: (a) upon receipt when delivered personally; (b) two

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(2) days (other than weekends or public holidays) after it is sent if sent by certified or registered mail (return receipt requested); (c) one (1) day (other than weekends or public holidays) after it is sent ifby next day delivery by a major commercial delivery service; or (d) the next business day upon electronic delivery by email. COMPANY: CLIENT: Bit Digital Iceland ehf. 31 Hudson Yards, Floor 11 New York, NY 10001 United States erkeh@bit-digital.com 151 Calle De San Francisco San Juan , Puerto Rico Attention: Christopher Miglino chris@dna.fund With a copy to (which copy shall not constitute notice): With a copy to (which copy shall not constitute notice): Pratin Vallabhaneni White & Case LLP 1221 Avenue of the Americas New York, NY 10020 prat.vallabhaneni@whitecase.com Jill Williamson William Hughes l 00 Southgate Parkway Post Office Box 1997 Morristown, NJ 07962 imwilliamson/nlPBNlaw.com wjhughes@PBNlaw.com 10.4 Amendments. No supplement, modification, or amendment of this MSA or any Purchase Order will be binding unless executed in writing by a duly authorized signatory of each Party. A valid amendment of this MSA will be deemed to automatically amend and will be binding upon each Party that is a signatory to a Purchase Order. 10.5 WAIVERS. No waiver will be implied from conduct or failure to enforce or exercise rights under this MSA or any Purchase Order, nor will any waiver be effective, unless in writing signed by a duly authorized signatory on behalf of the Party claimed to have waived such rights. 10.6 Publicity. The Company may, during the MSA Term, publicly announce that Client is a customer of Company and a user of the Services, generally explain the Services, and use Client's trademarks, service marks, and trade names in connection with such publicity, provided that the Company obtains prior written approval from Client for each specific use and complies with any guidelines provided by Client. 10.7 ENTIRE AGREEMENT. This MSA (including all exhibits) is the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous written and oral agreements and communications, relating to the subject matter of this MSA. Each Purchase Order (including any exhibits and appendices) is the complete and exclusive statement of the mutual understanding of the Parties with respect to the Services provided thereunder and supersedes and cancels all previous written and oral agreements and communications, relating to the subject matter of the Purchase Order. 10.8 Independent Contractors. The Parties are independent contractors. There is no relationship of partnership, joint venture, employment, franchise or agency created between the Parties. Neither Party will have the right to create any obligation or duty, express or implied, on behalf of the other Party. 9

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10.9 NON-SOLICIT. During the MSA Term and for one year thereafter, neither the Client nor the Company, either directly or indirectly, on its own behalf or on behalf of its Affiliates or others, will (1) solicit, divert, hire away, or engage with, or attempt to solicit, divert, hire away or engage with any then-current employee or vendors, contractors or suppliers of the other party or its Affiliates, and Company will not, either directly or indirectly, on its own behalf or on behalf of its Affiliates or others, will solicit, divert, hire away, or engage with, or attempt to solicit, divert, hire away or engage with any then-current employee of Client. If Client intends to solicit any entity or individual, prior written consent from the Company is required. Notwithstanding the foregoing, it is understood that this non-solicitation provision shall not prohibit: (a) solicitation of any employee who contacts Client or Company on his or her own initiative without any solicitation by or encouragement from Client or Company, as applicable; (b) generalized solicitations by advertising and the like which are not directed to specific employees of the Client or Company; (c) solicitations of employees whose employment was previously terminated by Client or Company; or (d) solicitations of employees who have terminated their employment with Client or Company without any prior solicitation by Client or Company, as applicable. 10.10 REMEDIES. Unless expressly set forth otherwise in this MSA or a Purchase Order, any and all remedies expressly conferred upon a Party are cumulative with and not exclusive of any other remedy conferred by this MSA or the Purchase Order or by law on that Party, and the exercise of any one remedy does not preclude the exercise of any other available remedy. 10.11 Counterparts: Execution. This MSA and each Purchase Order may be executed in one or more counterparts, each of which will be considered an original, but all of which together will constitute one agreement. This MSA and each Purchase Order may also be executed by electronic signature, and the Parties agree that facsimile, digitally scanned or other electronic copies of signatures shall be valid and binding as originals. 10.12 SEVERABILITY. Any provision of this MSA or a Purchase Order that is invalid, prohibited, or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability, without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in any other jurisdiction. 10.13 THIRD-PARTY RIGHTS. Except as expressly set forth in this MSA or a Purchase Order, only the Parties to this MSA have any right to enforce any term of this MSA. 10.14 Construction. Captions are for convenience only and do not constitute a limitation of the terms hereof. The singular includes the plural, and the plural includes the singular. References to "herein," "hereunder," "hereinabove," or like words will refer to this MSA or a Purchase Order as a whole and not to any particular section, subsection, or clause contained in this MSA or the Purchase Order. The terms "include" and "including" are not limiting and are deemed to be followed by the words "without limitation". Reference to any agreement or document includes any permitted modifications, supplements, amendments and replacements thereto. References to "day" refer to a calendar day, unless otherwise expressly stated. All references to "$" or "dollars" refer to United States Dollars. 10.15 FORCE MAJEURE. Neither Party will be liable for any failure or delay to comply with this MSA or any Purchase Order due to any cause beyond its reasonable control, including fire; flood; volcano; storm; earthquake; sabotage; power failure, widespread denial of service attacks or similar attacks or internet failure; acts of God and the public enemy; acts of war; acts of terrorism; riots; civil or public disturbances; general strikes, lock-outs, or labor disruptions;

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telecommunications or infrastructure malfunction; vendor or supply chain problems; national or regional emergencies; acts of government; any new laws, rules, or regulations (each a "FORCE MAJEURE"). If a Force Majeure event continues for more than thirty (30) days, the Party not affected by such Force Majeure event may immediately terminate this MSA and all Purchase Orders affected by such Force Majeure event by giving written notice to the other Party, and any early termination fee will not apply to any termination due to a Force Majeure event as defined in this Clause. [SIGNATURE PAGE FOLLOWS] 11 7924422

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By signing below, each Party acknowledges that it has read, and agrees to, all the terms of this MSA. BIT DIGITAL ICELAND EHF. SIGNATURE: NAME: Daniel Jonsson TITLE: CEO CORAL VENTURES LP FUND XII SIGNATURE:CHo(!,FRF.VI?&N?,:-W. NAME: Chris Miglino TITLE: CEO 12

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EXHIBIT A DEFINITIONS "AFFILIATE" means, with respect to a specified Entity, any other Entity that directly or indirectly controls, is controlled by, or is under common control with such specified Entity. For the purposes of this definition, "control" means the possession, directly or indirectly, of the power to independently direct or cause the direction of the management and policies of an Entity, whether through ownership of more than fifty percent (50%) of the stock or other equity interests entitled to vote for representation on its board of directors, or body performing similar functions, by contract, law or otherwise. "APPLICABLE LAW" means, with respect to a specified Entity, each of the following, whether existing now or in the future, including any updates thereto, that are applicable to such Entity: (a) the rules, requirements, or operational and technical standards of any relevant self-regulatory organization having jurisdiction or oversight over the Services; and (b) all laws, treaties, rules, regulations, regulatory guidance, directives, policies, orders, or determinations of, or mandatory written direction from or agreements with, any Governmental Authority, including trade control laws, export laws, sanctions regulations, statutes, or regulations, relating to 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," privacy, or data security. "BACKGROUND IP" has the meaning set forth in Section 4.2 (License to Company Background IP) of this MSA. "CLAIM" has the meaning set forth in Section 8.1 (Indemnification) of this MSA. "CLIENT" has the meaning set forth in the preamble of this MSA. "CLIENT DATA" means data that Client provides to Company. "COMPANY" has the meaning set forth in the preamble of this MSA. "COMPANY DATA" means all data relating to Company and any other data as specified by Company in writing. "COMPANY TECHNOLOGY" means Technology that Company provides, makes available, or uses m connection with the Services. "CONFIDENTIAL INFORMATION" has the meaning set forth in Section l 0.1 (Definition and Exclusions) of this MSA. "DEPOSIT" means sum of money required from the Client prior to the commencement of services, which is held by the Company as security for the performance of the Client's obligations under this MSA. The Deposit will be refunded within 30 days after the end of the Purchase Order period, provided all obligations have been met, and there are no outstanding payments or claims. "DELIVERABLES" means software, documents, data, and other materials delivered to Client by or on behalf of the Company in the course of the Services. "DISCLOSING PARTY" has the meaning set forth in Section 9.1.1 (Definition and Exclusions) of this MSA. "DOWNTIME" means, for each calendar month, time that certain necessary, installed, non-defective Company Technology is not available to provide the Services in accordance with this MSA or applicable Purchase Orders, including periods of time in which such Company Technology is not available as a result of(a) Scheduled Maintenance, (b) Emergency Maintenance, (c) a Force Majeure (as defined above), or (d) Exhibit A

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downtime resulting from Client material breach of this MSA or Purchase Order or as otherwise caused or requested by Client. "EMERGENCY MAINTENANCE" means commercially reasonable maintenance of the Company Technology that cannot wait for Scheduled Maintenance and would result in damage to the Company Technology or other losses if not addressed expeditiously. "ENTITY" means an individual, corporation, firm, limited liability company, partnership,joint venture, trust, unincorporated organization, estate, association, Governmental Authority, or other entity or organization, whether or not a legal entity. "FEEDBACK" has the meaning set forth in Section 9.4 (Feedback) of this MSA. "GOVERNMENTAL AUTHORITY" means any duly authorized federal, national, supranational, inter- governmental, state, provincial, local, or other government, governmental, regulatory, or administrative authority, self-regulatory authority, governmental agency, bureau, office or commission, or any court, tribunal, or judicial or arbitral body, of competent jurisdiction. "INITIAL TERM" has the meaning set forth in Section 5.1 (Term) of this MSA. "INTELLECTUAL PROPERTY RIGHTS" means any and all right, title, and interest in and to any and all trade secrets, patents, copyrights, service marks, trademarks, know-how, inventions, techniques, processes, devices, discoveries or improvements, trade names, rights in trade dress and packaging, moral rights, and similar rights of any type, including any applications, continuations or other registrations with respect to any of the foregoing, under the laws or regulations of any foreign or domestic governmental, regulatory, or judicial authority. "LOSSES" has the meaning set forth in Section 8.1 (Indemnification) of this MSA. "MSA TERM" has the meaning set forth in Section 5.1 (Term) of this MSA. "PARTY" or "PARTIES" have the meaning set forth in the preamble of this MSA. "PREPAYMENT" means advance payment made by the Client for services that will be provided by the Company under the terms of a Purchase Order. The Prepayment will be credited against future payments due under the Purchase Order, reducing the amount payable by the Client for subsequent invoices. "PURCHASE ORDER" has the meaning set forth in Section 1.1 (Purchase Orders) of this MSA. "PURCHASE ORDER TERM" has the meaning set forth in Section 5.2 (Term) of this MSA. "Receiving Party" has the meaning set forth in Section 9.l (Definition and Exclusions) of this MSA. "RENEWAL TERM" has the meaning set forth in SECTION 5.1 (Term) of this MSA. "REPRESENTATIVE" means, with respect to a specified Entity, any of its directors, officers, employees, agents, consultants, contractors, subcontractors, service providers, advisors, accountants, attorneys, or other representatives. "SCHEDULED MAINTENANCE" means the periods when the Company has notified Client that it has scheduled the Company Technology to be unavailable to provide the Services in accordance with this MSA or any Purchase Order for purposes of preventive and/or corrective maintenance of such Company Technology or a Company facility. Company must notify Company at least seven (7) calendar days in advance of any maintenance in order for it to be considered "Scheduled Maintenance." "SERVICE FEES" has the meaning set forth in Section 3.1 (Service Fees) of this MSA. Exhibit A

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"SERVICES" has the meaning set forth in Section 1.1 (Purchase Orders) of this MSA. "STORAGE COSTS" means any and all costs related to hardware procurement incurred by the Company. "TAXES" has the meaning set forth in SECTION 3.4 (Taxes) of this MSA. "TECHNOLOGY" means data processing platforms, application applications, technical integrations, or technology necessary to provide the Services, and any updates or modifications to, and documentation (E.G., instructional materials) related to, any of the foregoing. "UPTIME" means, for each calendar month, the availability of certain Company Technology necessary to provide the Services as a percentage equal to (a) the total number of minutes in such month when the Company Technology is provided, DIVIDED by (b) the total number of minutes in such calendar month MINUS the total number of minutes of Downtime in such month. Exhibit A

## Exhibit 10.22

**Exhibit 10.22**

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3195 Chem. Bedford Suite D, Montreal, Quebec H3S 1G3 (514) 907-0778 info@enovumdc.com

May 16, 2025

Bill Roberts

Duke Energy Carolinas, LLC

Senior Manager, Economic Development

250 9<sup>th</sup> Street Lane SE

Hickory, North Carolina 28602

Subject: <u>**LETTER AGREEMENT FOR THE PURCHASE OF ELECTRIC POWER**</u>

Dear Bill:

This letter agreement ("Letter Agreement") signifies the request and intent of Enovum Data Centers Corp ("Customer") to purchase electric power from Duke Energy Carolinas, LLC ("Duke Energy") at 805 Island Drive, Madison, NC ("Site").

The estimated peak electrical load is 99 MW. The required operating voltage is 24 kV, 3 phase, and 4-wire. Any capitalized terms used but not defined herein shall have the meaning set forth in the applicable currently effective Duke Energy tariffs and schedules approved by the North Carolina Utilities Commission ("Commission").

In exchange for, and expressly conditioned upon, Customer's agreement to purchase electric power from Duke Energy at the Site, Duke Energy will engage in certain design services, procurement of materials and equipment, and other activities necessary to provide electric power to the Site. Duke Energy will provide details on the location of transformers and the route of the conductors on the Site. Duke Energy shall update Customer as designs progress and Customer will provide prompt notice of all changes in the Site plans that would impact Duke Energy's provision of service.

The first phase of permanent service (24 MW) to be delivered on or about September 1, 2025, with the second phase of permanent service (40 MW) to be delivered on or about April 1, 2026, and the final phase of permanent service (99 MW) to be delivered within four (4) years of the effective date of this Letter Agreement. Subject to the terms set forth herein, Duke Energy will use commercially reasonable efforts to achieve the specified demand levels by the target milestone dates.

Customer acknowledges that Duke Energy's ability to achieve all such timelines is dependent on timely issuance of notices to proceed by Customer, prompt and timely provision of information from Customer to Duke Energy, no material changes in Site plans, Site access, equipment availability, and other circumstances, including governmental permitting and certificates, many of which are outside of Duke Energy's control. Duke Energy will work diligently to meet such timelines but does not guarantee timelines can be met. Customer agrees and acknowledges that events beyond Duke Energy's control may delay the provision of the requested services and agrees to hold Duke Energy harmless for any delays caused by such events.

Customer and Duke Energy acknowledge and agree that any cost estimates set forth herein or previously disclosed are non-binding and that the actual costs to perform the work may exceed the projected costs. Depending on the specifications and service details ultimately selected or requested by Customer, certain project costs may be the responsibility of Customer, though such project costs may be eligible for offset through revenue credits based on applicable Commission regulations. Customer and Duke Energy further agree that Duke Energy may request and Customer shall provide access to audited financial statements as condition to providing service to the Site.

Customer, in the near future, will meet with Duke Energy's designated representative to negotiate an electric service agreement ("ESA") for the supply of electricity to the Site for a peak electrical load of 99 MW. The Parties agree that upon execution and effectiveness of the ESA, this Letter Agreement shall be superseded by the terms thereof, all services and work performed hereunder shall be deemed to have been performed under the ESA, and that this Letter Agreement shall be considered null and void, and of no further effect as between the Parties unless otherwise agreed to by the Parties.

Duke Energy and Customer acknowledge and agree that the amount of revenue credits to which Customer will be entitled based on the currently estimated energy usage and peak electrical load (99 MW) at the Site is projected to exceed the projected cost of the project. However, such projections are based on estimates, and Duke Energy does not guarantee the amount of revenue credits until the Customer enters into an ESA with Duke Energy. Customer and Duke Energy acknowledge and agree that the rates and tariffs applicable to Customer must be approved by the Commission.

If Customer (i) does not enter into an ESA with Duke Energy with a peak electrical load of approximately 99 MW within six (6) months of the date of this Letter Agreement, (ii) reduces its peak electrical load at the Site below 99 MW thereby rendering any part or all of the Standard Delivery Scope of Work or Customer Requested Facilities (each as defined herein) unnecessary or otherwise not used or useful in providing electric power to the Site or Customer, or (iii) provides written notice to Duke Energy that the Customer no longer intends to purchase electric power from Duke Energy, Customer will reimburse Duke Energy within ninety (90) days for all expenses reasonably incurred by Duke Energy pertaining to engineering, design, procurement and/or construction related activities associated with Duke Energy's efforts to deliver electric power to the Site as contemplated within this Letter Agreement.

Duke Energy and Customer agree that information contained in this Letter Agreement should be deemed confidential and protected from public disclosure or disclosure to third parties. However, Customer acknowledges and agrees that Duke Energy is subject to regulation by certain state and federal administrative agencies, and instrumentalities thereof, which are authorized to compel Duke Energy to disclose information that would otherwise be protected from public disclosure or disclosure to third parties. In the event Duke Energy is required, pursuant to any applicable court order, administrative order, statute, regulation, other official order by any government or any agency or department thereof, or in connection with a matter of regulatory significance, to disclose this Letter Agreement or any information contained herein, Duke Energy agrees to provide Customer with written notice of any such request or requirement so that Customer may seek a protective order, if applicable, or other appropriate remedy and/or waive the confidentiality of this Letter Agreement or certain information contained herein. In the event such protective order or other remedy is not obtained or the Customer waives waive the confidentiality of this Letter Agreement or certain information contained herein, Duke Energy agrees to (a) furnish only that portion of the confidential information for which the Customer has waived the designation of confidentiality or which Duke Energy is required to disclose and (b) to give Customer prior written notice of the confidential information to be disclosed as is reasonably practicable.

Any notices to be sent or given hereunder by either Party shall in every case be in writing and shall be deemed properly served if (a) delivered personally to the recipient, (b) sent to the recipient by reputable express courier service (charges paid), (c) mailed to the recipient by registered or certified mail, return receipt requested and postage paid, or (d) sent to the recipient by email. Such notices shall be sent to the addresses indicated below or such other address or to the attention of such other person as the recipient has indicated by prior written notice to the sending party in accordance with this Letter Agreement:

---

| | |
|:---|:---|
| If to Duke Energy: | Duke Energy Carolinas, LLC |
|  | c/o Alex Castle, Deputy General Counsel |
|  | 525 S Tryon Street |
|  | Mail Code: DEP-09B |
|  | Charlotte, NC 28202 |
|  | Email: alex.castle@duke-energy.com |
|  | bill.roberts@duke-energy.com |
|  | john.millard@duke-energy.com |

---

---

| | |
|:---|:---|
| If to Customer: | Enovum Data Centers Corp |
|  | 3195 Chem. Bedford Suite D |
|  | Montreal, Quebec H3S 1G3 |
|  | Attn: Simon Hamelin-Choquette |
|  | Email: shchoquette@enovumdc.com |

---

This Letter Agreement will be governed by and construed according to the laws of the State of North Carolina, the Commission's Rules, and the currently effective tariffs of Duke Energy, as applicable. For the avoidance of doubt, this Letter Agreement sets forth the entire understanding of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral or written agreements and commitments between the Parties with respect to the provision of electric power to the Site.

Neither Party may assign this Letter Agreement, nor may it assign any interest herein, without the other Party's express prior written consent, which consent may be withheld in such Party's sole discretion, except that Duke Energy may assign this Letter Agreement or any interest herein to (a) any of its affiliates or (b) its successor by merger or an entity acquiring all or substantially all of its assets. Nothing herein is intended to nor be construed as creating: (i) a partnership, joint venture, or other legal entity, or (ii) any agency or continuing relationship between the Parties, other than the contractual relationship expressly and specifically set forth herein. Nothing in this Letter Agreement gives any person or entity, other than the Parties, any legal or equitable right, remedy, or claim under or with respect to any provision of this Letter Agreement.

Each person signing on behalf of Duke Energy and Customer represents to the other that such person has all requisite authority to execute and deliver this Letter Agreement to the other and to bind the signatory's respective party to perform the obligations prescribed by this Letter Agreement.

This Letter Agreement may be executed by Duke Energy and Customer in separate counterparts, each of which when so executed and delivered will be an original, and all such counterparts will together be one and the same instrument. A facsimile or digital signature will have the same effect as an original signature.

[Signatures on following page]

---

| | |
|:---|:---|
| Yours very truly, | Yours very truly, |
| By: | /s/ Billy Krassakopoulous |
| Name: | Billy Krassakopoulous |
| Title: | President |
| Company: | Enovum Data Centers Corp |
| ACKNOWLEDGED AND AGREED: | ACKNOWLEDGED AND AGREED: |
| Duke Energy Carolinas, LLC | Duke Energy Carolinas, LLC |
| By: | /s/ Stu Heishman |
| Name: | Stu Heishman |
| Title: | Vice President |

---

## Exhibit 10.23

**Exhibit 10.23**

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## Exhibit 10.24

**Exhibit 10.24**

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Docusign Ènvelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 AMENDMENT TO REAL ESTATE PURCHASE AND SALE AGREEMENT THIS AMENDMENT TO REAL ESTATE PURCHASE AND SALE AGREEMENT (this "Amendment") is made and entered into as of May 19 , 2025 (the "Amendment Elective Date"), between UNIFI MANUFACTURING, INC . , a North Carolina corporation ("Seller"), and ENOVUM NC - 1 BIDCO, LLC, a Delaware limited liability company ("Buyer") (Duyer and Seller are refeiied to herein individually as a "Party" and, together, as the "Parties") . W I T N E S S E T H : WHEREAS, Seller and ENOVUM DATA CENTERS CORP . , a Canadian corporation ("Original Buyei\*') enteied into that certain Real Estate Purchase and Sale Agreement (the "Agreement") dated April 10 , 2025 . Unless otherwise provided herein, capitalized terms used in this Amendment shall have the meanings ascribed to such terms in the Agreement, and all references herein to the Agreement shall mean the Agreement as hereby amended ; WHEREAS, Oiiginal Buyer assigned all of its rigbt, title and interest as Buyer under the Agieement to Buyer, and Buyer assumed all of Original Buyer's obligations as Buyer under the Agieement, pursuant to that certain Assignment of Real Estate Purchase and Sale Agreement dated May 16 , 2025 (the "Assignment") . In accordance with Section 9 . 3 of the Agreement, the Assignment did not release Original Buyer of its obligations under the Agreement . WHEREAS, Section 13 of the Agreement states that the obligation of the Buyer to close the transactions contemplated by lhe Agreement are conditioned on the receipt of an Energy Study from Duke Energy verifying that within four (4) years from the Closing Date, Duke Energy will be able to supply 100 megawatts to the Property (the "Energy Study Contingency") ; WHEREAS, Buyer has received a draft Letter Agieement for the Pui'chase of Electric Power dated May 16 , 2025 (the "Letter Agreement") whereby Duke Energy has agreed to use commercially reasonable efforts to achieve 24 megawatts of service to the Property by September 1 , 2025 , 40 megawatts of service to the Property by April 1 , 2026 and 99 megawatts of service to the Property within four (4) years of the effective date of the Letter Agreement, subject to the teims set forth in the Letter Agt'eement ; WHEREAS, Buyer has represented that the Energy Study Contingency has not been satisfied ; and WHEREAS, Buyer has requested certain modifications to the Agreement before it will agree to waive the Energy Study Contingency, and Seller has agreed to make such modifications in exchange for Buyer waiving the Energy Study Contingency, proceeding to Closing on May 20 , 2025 , and agreeing to ceitain other modifications, all of which agreed to modifications are set forth in this Amendment . NOW, THEREFORE, for and in consideration of the covenants and agreements herein contained, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties hereto agree as follows : 1. Schedule 1.2. Schedule 1,2 of the Agreement is amended to indicate that item 388 (COMPRESSOR, 350 - HP, 1600 - CFM, 100 - PSIG, SKID MOUNT, TOTALLY ENCLOSED, W/ 2010 INGERSOLL - RAND NYC2400A40N AIR DRYER, 2000 - CFM AT 200 - PSIG, S/N 508005) is Excluded rather than Included. l

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Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 2 2. Purchase Price/Earnout . (a) Section 2 of the Agreement is amended to indicate that the Purchase Price shall be Forty Five Million and no/100 Dollars (USD $45,000,000.00), (b) A new Section 2.4 is added which reads as follows: 4. Promptly after the Closing Date, Buyer shall use commercially ieasonable efforts to obtain as promptly as possible an Electric Services Agreement (an "ESA") with Duke Energy which provides for at least 99 megawatts of service to the Property to be provided within two (2) years of the Closing Date (as defined herein) . Buyei further agrees that Seller shall be entitled to communicate directly with Duke Energy concerning the foregoing and shall provide to Duke Energy whatever authorization Duke Energy may require to allow direct communications between Seller and Duke Energy . Buyer and Seller agiee that they will cooperate with each other in all reasonable respects with the efforts of Buyer to obtain increased electrical capacity foi'the Pioperty fiom Duke Energy . Seller will not take any action that would hamper or interfere with the efforts of Buyer to obtain increased electrical capacity at any time ; provided, however ; tbat Seller taking action to pi'ocure eleefiical capacity foi Seller's other facilities shall not be considered a violation of this obligation . 1. Buyer agrees that if either (A) Buyer defaults in its obligations to use commercially reasonable efforts as set forth in the preceding paragraph, or (B) by no later than two (2) years after the Closing Date : (i) Duke Energy provides an ESA on commercially reasonable terms without unreasonable infrastructure costs requiring contribution from Buyer and pricing consistent with comparable filed rates that similarly situated data center electric customers would accept for the provision of 99 megawatts to the Property within such two (2) year period of the Closing Date ; or (ii) the Piopeity is actually receiving 99 megawatts, Buyer shall pay to Seller the amount of Eight Million and No/ 100 Dollars (USD $8 , 000 , 000 . 00) within thirty (30) days aftei the occurrence of any of(A) through (B) above . 2. Biiyei' agrees that if neither of the events desci ibed in (A) or (B) of Section 2 . 4 . 1 occurs within the two (2) year period immediately following the Closing Date, and thereafter but not later than three (3) year's after the Closing Date (x) Duke Energy provides an ESA on commercially reasonable terms without unreasonable infiastructure costs requiring contribution from Buyer' and piicing consistent with comparable filed rates that similarly situated data center electric customers would accept for the provision of 99 megawatts to the Property within three (3) years of the Closing Date ; or (y) the Property is actually receiving 99 megawatts, Buyer shall pay to Seller the amount of Five Million arid No/ 100 Dollars (USD $5 , 000 , 000 . 00) within thirty (30) days after the occurrence of (x) or (y) above . In the event that none of the conditions described in Sections 2 . 4 . 1 and 2 . 4 . 2 have occurred

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3 Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 within three (3) years from the Closing Date, the Buyersliall have no obligation to pay any amounts to the Seller under Sections 2 . 4 . 1 of 2 . 4 . 2 . 2 . 4 . 3 Buyer agrees to use commercially reasonable efforts to obtain electric selrice beyond the 99 megawatts contemplated in the preceding paragraphs . Buyer agi'ees that for each additional megawatt of service above 99 megawatts to the Property (x) for which Duke Energy provides an ESA on commercially reasonable terms without unreasonable infrastructure costs requiring contribution from Buyer and pricing consistent with comparable filed rates that similarly situated data center electric customers would accept ; or (y) which the Property is actually receiving, in each case on or before four (4) years after the Closing Date, Buyer shall pay to Seller Two Hundred Thousand and No/I 00 Dollars (USD $200 , 000 . 00) pei' megawatt over 99 megawatts, up to a maximum payment pursuant to this paragraph of Five Million and No/ 100 Dollars (USD $5 , 000 , 000) (the "Bonus Cap") . Such amount(s) shall be payable within thirty (30) days after' the occunenee of(x) or(y) above (it being understood that Buyer may have to make multiple payments over the course of the four (4) year duration of this Section 2 . 4 . 3 if there are multiple occurrences of the events described in (x) and (y) above) . Buyer shall have no obligation to pay any amounts to Seller : (i) for capacity over 99 megawatts that is not achieved as provided in this Section 2 . 4 . 3 within four (4) years of the Closing Date ; or (ii) in excess of the Donus Cap . The obligations of Buyer to Seller under this Section 3. are independent of the obligations under Sections 2 . 4 . 1 and 2 . 4 . 2 . 4. The obligations set forth in this Section 2 . 4 shall survive the Closing . 3. Closing Date . Section 5 . 1 of the Agi'eement is amended and restated in its entirety to read as follows : "The closing of the transactions contemplated by this Agreement (the "Closing") shall take place on May 20 , 2025 (the "Closing Date") . " 4. Assignment Does Not Release Buyer . The last sentence of Seofion 9 . 3 of the Agreement is amended and restated in its entirety to read as follows : "Notwithstanding the foregoing, Buyer shall not be released of its obligations hereunder as a result of any assignment" . 5. Waiver of Enerev Study Contingency . The Buyer hereby waives the Energy Study Contingency . Accordingly, Section 12 . 2 and the second paragraph of Section 13 of the Agreement are deleted in their entirety . 6. Occupancy Termination Date . Section 14 of the Agreement is amended to change the Occupancy Termination Date to December 21 , 2025 . The Parties furthei agree that the Occupancy Agreement shall be substantially in the foim attached hereto as Exhibit A . 7. Successors and Assigns . This Amendment will bind and inure to the benefit of each Party and their respective permitted successors, assigns, and delegates .

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Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 4 8. Counterparts . This Amendment may be executed in several counterparts, each of which shall be deemed an oi'igina 1 , and all of such counterparts together shall constitute one and the same instrument . Delivery of a facsimile or electronic copy of this Amendment executed by a Party hereto shall be deemed to constitute delivery of an original hereof executed by such Paity . This Amendment shall be governed by and construed in accordance with the laws of the State of North Carolina . 9. A ffirmation of Agreement . Except as modified by this Amendment, all of the other terms, conditions and requirements of the Agreement are i'atifted and affirmed by each of Buyer and Seller . [SIGNATURE PAGE FOLLOWS]

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'Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 IN WITNESS W£fEREOF, Sellei and Buyer have caused this Amendment to be executed as of the Amendment Effective Date. SELLER: UNIFI MANUFACTURING, INC. By: Name: Edmund M. Ingle Title: Chief Executive Officer BUYER: ENOT ?4NC - 1DIDCO,LLC By: Enovum NC - 1 Midco, LLC, its sole member By: Eric £irhTo cu, Inc., its sole member By: Billy Krassakopoulos, President The undersigned Original Buyer consents to the teims of this Amendment and agi'ees that it is bound by all of the obligations of Buyer under the Agreement as amended by this Amendment. ORIGINALBUYER: & ENTERS CORP. By: Bill

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'Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 EXHIBIT A SEE ATTACHED

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Docusign'Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 JFORM OFJ POSZ - CLOSING OCC UPANCY AGREEMENT THIS POST - CLOSING OCCUPANCY AGREEMENT (this "Agreement"), effective as of the 20 " i day of May, 2025 (the "âffc • c . tive Dttte"), is made by and between UNIFI MANUFACTURING, INC . , a North Carolina corporation ("Seller"), and ENOVUM NC - 1 BIDCO, LLC, a Delaware limited liability company ("layer") . Buyer and Seller are referred to herein individually as a "P n rty" and, together, the "P‹irties" . STATEMENT OF PURPOSE In accordance with the terms of that certain Real Estate Purchase and Sale Agreement, as amended and supplemented to date (the "Contriict") by and between Enovum Data Centers Corp . , a Canadian corporation ("Enovum"), and Seller, dated April 10 , 2025 , following Closing of the purchase and sale transaction, Seller shall have the i'ight to remain in possession of and continue to occupy a portion (as more particularly set forth in this Agreement) of the real property situated in Rocliingham County, North Carolina, located at 805 Island Drive, Madison, North Carolina, as more particularly described on Fxhibit A attached hereto and all buildings and improvements thei'eon (collectively, the " 2 teai Property"), subject to the terms of this Agreement . Pursuant to the terms of that certain Assignment of Real Estate Purchase and Sale Agreement dated May 16 , 2025 , between Enovum and Buyer, Enovum assigned all of its right, title and interest as Buyer (as defined in the Contract) to Buyer (as defined herein) . NOW, THEREFORE, for and in consideration of Ten Dollars ($10 . 00) paid to Buyer, the receipt and sufEciency of which are hereby acknowledged, Buyer hereby grants unto Seller and its affiliates and representatives the right to remain in possession of the Real Property following the Closing, upon the terms and conditions hereinafter set forth . 1. Defined Terms . All capitalized terms not otherwise defined in this Agreement shall have the meaning ascribed to such terms in the Contract . 2. Grant of License . For a period commencing on the Effective Date and ending on the Termination Date (as defined below), Buyer hereby grants to Seller and its affiliates, representatives, officers, agents, employees, and contractors a license to occupy the Real Pi'opeity and operate its business on the Real Property, subject to the terms of this Agieement, in order to wind down Seller's operations on the Real Property and to i'emove all personal property (including any machinery or equipment listed as "Excluded" on Schedule 1 . 2 of the Conti'act) not purchased by Buyer (collectively, the "Seller Property") . As of the Effective Date, Seller shall be entitled to occupy the entirety of the Real Property except those portions labeled as "Vacant" on Schediile 2 , but Seller shall vacate additional portions of the Real Property by the milestone dates (each a "Milestone") as described on Schedule 2 and shall fully vacate all of the Property on or before the Termination Date (as defined below) . Subject to Force Majeure (as defined below), the Parties agree that once a Milestone date has passed, the license granted herein with i'espect to the corresponding portion of the Real Property shall expire and thereafter, except for the limited purposes described in this Section 2 , the Seller's rights to occupy or use the applicable portion of the Real Propeity shall terminate, without the need of any notice from Buyer or opportunity to cute l l4135992v3

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Docusign 'Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 by Seller . Seller shall also be able to use in common with Buyer any common facilities (e . g . restrooms, hallways) located within any of the previously vacated portions of the Real Property together with the par 1 ‹ing facilities and driveways outside of the buildings on the Real Property (the "Common Aretis") to the extent reasonably necessary in connection with the exercise of Seller's rights under this Agreement . Nothing contained in this Agreement shall be deemed to allow Seller to use any portion of any vacated areas for the stoiage of machinery or equipment or for any other purpose, except for the use of the Common Areas, as described herein . The Common Areas are more fully outlined in red on the drawings attached hereto as Schedule 2 . In addition, Seller shall also be able to use in common with Buyer certain shared operational areas which include maintenance areas, electrical areas and compressors (the "Sh a red Operafional Areas") to the extent i'easonab 1 y necessary in connection with the exercise of Seller's rights under this Agreement . The Shared Operational Areas are more fully outlined in orange on the drawings attached hereto as Schedule 2 . 3. Removal of Seller Proper . Seller' Property shall be removed pursuant to the terms of this Agreement at no cost or expense to Buyer . Seller agrees not to remove from the Real Property the machinery and equipment located on the deal Property which is listed as "Included" on Schedule 1 . 2 of the Contract (collectively, the "Personal Property"), 4. Use of the Real Property . The Real Property shall be used in accordance with all applicable laws and, in substantially the same manner as it is currently used as of the Effective Date and not for any other business or any other purpose unless permitted herein or in the Conti'act . From the Effective Date and through the Termination Date, Buyer and Seller will coordinate use of keys, badge access and keypad codes so that both Parties have access to the Real Property in accordance with the terms of this Agreement . Buyer shall make no material or substantive changes to the Real Property during the Occupancy Term (as defined below) ; provided, howevei ; that Buyer shall be entitled to commence any alterations it wishes with respect to portions of the Real Property vacated by Seller in accordance with the terms of Section 2 above except to the extent such alterations require the consent of Duke Energy under the Facilities Services Agreement (as defined below) with Duke Energy (unless such consent is obtained) or prevent Seller from (i) using the portions of the Real Property not yet vacated by Seller or the Common Areas or the Shared Operational Areas as permitted under this Agreement (including, without limitation, using such portions of the Real Property for the conduct of Seller's business on the Real Property in the same manner as conducted at Closing) ; or (ii) using the Seller Property remaining on the Real Property in the same manner as Seller used the Seller Property at Closing . Buyer's use of and activities on the Real Property shall be performed in a manner that does not disrupt Seller's use of the Real Property allowed hereunder and does not adversely affect the safety and security of Seller's personnel and Seller's Property . Seller and its affiliates, representatives, officers, agents, employees, and contractors shall have the ability throughout the Occupancy Term to enter and exit the Real Property at all hours and in in the same manner as conducted at Closing . Notwithstanding anything contained herein, Buyer acknowledges and agiees that, from the Effective Date and through the Temiination Date, Seller's lender(s) has access rights to Seller's Property (and therefore access rights to the Real Property), but only to the limited extent to (i) access Seller's Property as part of Seller's arrangements with its lender(s) to secufe Seller's Property and (ii) oaly in accordance with the terms and conditions of this Agreement . l413S992v3

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Docusign"Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 3 l4135992v3 5. Termination Date . This Agreement shall begin on the Effective Date and terminate upon the date that is the earlier of(i) December 21 , 2025 ; or (ii) the date that is thirty (30) days after the date which Seller delivers a written termination notice to Buyer (such earlier date, the "Termination Dnte", and the period starting on the Effective Date and ending on the Termination Date, the "Occupnncy Term") . Upon the Termination Date, Buyer shall have the right to immediately take possession of and/or demolish and remove any improvements and/or personal property from the Real Property and to dispose of such improvements and/or personal property in its sole discretion . TIME IS OF THE ESSENCE TO EACH AND EVERY PROVISION OF THIS AGREEMENT AND TO THE OBLIGATIONS OF THE PARTIES HEREUNDER . 6. Occupancy Fee. Seller agrees to pay to Buyer an occupancy fee in the amount of $1.00 (th e"Occupancy Fee"). 7. Utilities and Other Services . Buyer and Seller agree that until June 28 , 2025 (the "Utilities Trnsfer Zlafe"), and except as provided herein, Seller will maintain its own service agreements for all utilities, including electricity, heating ventilation and air conditioning, security and fire alarm service, security services and landscaping (collectively, the "NacZfñtes Services Agreements"), which such Facilities Services Agreements are set forth on Schedule 6 to the Contract, and Seller shall be solely responsible for the payment of all costs associated with the Facilities Services Agreements except that Buyer shall be responsible for its pro - rata share of the costs of electricity from and after the Effective Date to the Utilities Transfer Date as more f'ully set forth below . Additionally, Seller will maintain its own service agreements for all additional services necessary for the operation of its business on the Real Propei and for the performance of its obligations under this Agreement (collectively, the "Seller Operiitions Agreements") and Seller shall be solely i'esponsib 1 e for the payment of all costs associated with the Seller Operations Agreements . The Parties agree that the Facilities Services Agreements and the Seller Operations Agreements will not be assigned to the Buyer and Buyer shall not assume any liability under any of the Facilities Services Agreements or the Seller Operations Agreements . Seller represents to the Buyer that the Seller Operations Agreements are not and will not impose obligations on the Buyer or the Real Property . Prior to the Termination Date, Seller shall have provided notice to all service providers under the Seller Operations Agreements that it is terminating such agreements with respect to the Real Property and will provide evidence of such notices to Buyer . With respect to the Facilities Services Agreements, the Parties agree that on or prior to the Utilities Transfer Date, Buyer will enter into its own agreements with (i) Duke Energy for electrical service to the Real Property, (ii) The Town of Madison with respect to water service to the Real Propeity, and (iii) The Town of Madison with respect to sewer service to the Real Property, and Seller will either terminate or remove the Real Property from the coverage under its Facilities Services Agreement . From the Utilities Transfer Date to the Termination Date, Buyer will maintain the fire suppression system and the exhaust fans at the Real Property and be responsible for their opei'ation and service . The Parties agree to cooperate in all respects to ensure a smooth transition of electrical service, water service, sewer service, and fire suppression in order to avoid interruptions . After the Utilities Transfer Date, Buyer will be responsible for' the provision of electrical service, water service, sewer service and fire suppression to the Real Property in an amount sufficient to allow Seller's remaining activities on the Real Property, as allowed under this Agreement . The Parties agree that each Party shall reimburse the other for its pro rata share of the costs of electricity usage, with

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Docusign "Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 4 l4135992v3 Buyer reimbursing Seller for usage from and after the Effective Date to the Utilities Transfer Date and Seller reimbursing Buyer from and after the Utilities Transfer Date until the Termination Date . The reimbursing Party will pay such share to the other Party within thirty (30) days after receipt of an invoice for the same . For the purposes hereof, a Party's pro rata share shall be determined based on the Parties' respective amounts of usage over the period in question based on a reading of the submeters already on each of the switch gears which Buyer or Seller is using dui'ing such period . The Parties agree to cooperate in all respects to ensure a smooth transition of all other utility service in order to avoid interruptions . 8. Maintenance : Compliance with Laws . Commencing on the Effective Date and through the Termination Date, except for those costs associated with the Facilities Services Agreements (subject to reimbursement for electricity used by Buyer as set forth in Section 7 above) and/or the Seller Operations Agreements, Buyer' shall be solely responsible for causing the maintenance of and paying the costs of maintaining the Real Property, which such maintenance shall be done in compliance with all applicable laws and ordinances, Buyer shall not be responsible for the maintenance of any systems, equipment or other improvements that constitute Seller Property, except Buyer shall be responsible for repair or lep 1 acement of Seller Property to the extent damaged by the negligence or willful misconduct of Buyer or its officers, agents, employees, or contractors or to the extent damaged due to the breach of Buyer's obligations under this Agreement . Without limiting the generality of the foregoing, Buyer agrees that Seller shall have no responsibility for repairing any minor damage caused by the removal of the Seller Property (such as filling bolt or mounting holes in the concrete flooi 5 ng which is incidental to the removal) ; however, Seller shall have responsibility for repairing any major damage caused by the removal of such machinery and equipment for example and not as a limitation, lcnocking down walls or holes in walls or floors from forklift or similar machinery) . 9. Taxes . Buyer shall pay all ad valorem real property taxes, governmental and public chai'ges and special and general assessments imposed against the Real Property during the Occupancy Term ("Taxes") as well as all ad valorem real property taxes, governmental and public charges and special and general assessments imposed against the Personal Property during the Occupancy Term . Notwithstanding the foregoing, Seller shall be responsible for and pay directly to the applicable govei'nmenta 1 authority all taxes levied or assessed against any Seller Property located on the Real Property, whether levied or assessed against Buyer or Seller . This Section 9 shall survive the expiration or' earlier termination of the Occupancy Term . 10. Insurance. a. Buyer shall procure and maintain continuously throughout the Occupancy Term, at Buyer's sole cost and expense, with insurance carriers licensed in North Carolina and with an AM Best rating of A - , VII or better . i. "Special Form" Property insurance on the Real Property, the improvements and Personal Property (including leasehold improvements that are attached to the Real Propeity as of the date hereof), but not Seller Property, in form and with a coverage amount as Buyer may determine its reasonable discretion ; and

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Docusign'Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 5 5 l35992v3 ü . A liability insurance policy naming Buyer as the insured (and Seller as an additional insured) with limits of not less than $5 , 000 , 000 per' occurrence and $5 , 000 , 000 annual aggregate, and including a waiver of any right of subrogation against Seller . Buyer's policy should also be primary, non - contributoiy . Thèse lirnits may be achieved through a combination of primary and excess umbrella liability policies . b . Seller shall procure and maintain, at Seller's sole cost and expense, all premiums, fees and charges and deductibles for the purpose of procuring and maintaining coverage continuously throughout the Occupancy Term with insurance carriers licensed in North Carolina and with an AM Best rating of A - , VII or bettei . i. "Special Form" Property insurance on Seller Property located on the Real Property against loss or damage by fire or other casualty in an amount equal to the full replacement cost thereof ; and ii. A liability insurance policy naming Seller as the insured (and Buyer as an additional insured) with limits of not less than $5 , 000 , 000 per occurrence and $5 , 000 , 000 annual aggregate, and including a waiver of any right of subrogation against Buyer . These limits may be achieved through a combination of primary and excess umbrella liability policies . iii. If required by law, Buyer shall obtain and maintain workers' compensation insurance in the amount of the statutory limits required by law. If the Real Property, or any portion thereof, is damaged by fire or other causes, then Buyer shall have no obligation to repair or rebuild the Real Property, and Seller shall not be entitled to any insurance proceeds received by Buyer in connection with such damage . In the event that the Real Propeity is materially damaged and Buyer elects not to make any necessary repairs to the Real Property, then Seller shall immediately remove all Seller Property and vacate the Real Propeity and Seller's right to occupy the Real Property shall automatically terminate . Buyer acknowledges that the occurrence of a casualty loss oi any condemnation or eminent domain proceedings shall not be a default by Seller under this Agreement, and in no event shall Seller have any restoi'ation obligations following a casualty loss or condemnation or eminent domain . 11. lndemnification . a. Bv Seller . Seller shall indemnify and hold Buyer harmless from and against any and all liability, fines, suits, claims, demands, actions, costs and expenses of any lcind or nature whatsoever caused by, or arising out of, or in any manner connected with any injury to persons, including death, or damage to property (including the Personal Property) arising out of Seller's, its officers', agents', employees', or contractors' use and/or occupancy of the Real Property and Seller Property from the Effective Date to the date of vacating the Real Property . b. By Buyer . Buyer shall indemnify and hold Seller harmless from and against any and all liability, fines, suits, claims, demands, actions, costs and expenses of any

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Docusign'Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 6 6v3 kind or nature whatsoever caused by, or arising out of, or in any manner connected with any injury to persons, including death, or damage to property (including Seller Property) arising out of Buyer's, its officers', agents', employees', or contractors' use and/or occupancy of the Real Property and Personal Property from the Effective Date to the date of Seller's vacating the Real Property . c. This Section 11 shall survive termination of this Agreement. 12. No Sublettin License or Assignment . Seller shall not sublet the Real Property or any portion thereof, nor may it license or assign its rights or interests under this Agreement . 13. Default . Should Seller fail to perform its obligations hereunder or fail to vacate the portions of the Real Property in accordance with the Milestone date as described on Schedule 2 and/or the entirety of Real Property by the Termination Date, subject to Force Majeure, Buyer shall have the following rights and remedies : (a) Buyer may terminate the license granted hereunder with respect to the portion of the Real Property to which the violation occurs and thereafter may restrict Seller's access to such portion of the Real Propeity without the need to bring any legal proceedings . For example, in the event Seller does not vacate the area of the Real Property designated to be vacated by the first Milestone date, Seller may thereafter, block the access of Seller to such portion of the Real Property and shall not have any obligation to allow access thereto ; (b) Buyer may dispose of any of the Seller Property which remains in a portion of the Real Property that was to be vacated after any Milestone date has passed . Buyer may sell or otherwise dispose of such Seller Property in any manner that Buyer deems appropriate in its sole discretion and Seller shall reimburse for all reasonable costs incurred by Byer in the removal or disposal of such Seller Property . Seller hereby waives any claim against Buyer related to the removal or disposal of any Seller Property which has been removed or disposed of in accordance with this Agreement ; (c) Further, if Seller fails to vacate the Real Property by the Termination Date, or if Seller fails to vacate a portion of the Real Property in accordance with the Milestone dates as described on Schedule 2 , subject to Force Majeure, Seller wilI pay liquidated damages to Buyer for such failure in the amount of Ten Thousand and no/ 100 Dollars ($10 , 000) per day, until Seller vacates the Real Property or applicable portion thereof . THE PARTIES HERETO ACKNOWLEDGE THE DIFFICULTY OF ASCERTAINING BUYER'S ACTUAL DELAY DAMAGES (AS OPPOSED TO ACTUAL AND REASONABLE COSTS INCURRED BY BUYER AS PROVIDED IN SUBSECTION (b) . ABOVE) AND THEREFORE AGREE THAT THE ABOVE AMOUNTS ARE A GOOD FAITH ATTEMPT TO IDENTIFY AND QUANTIFY BUYER'S ACTUAL DAMAGES AND AS SUCH DO NOT CONSTITUTE A PENALTY . THE PARTIES FURTBER AGREE THAT THE REMEDY SET FORTH HEREIN IS IN LIEU OF ANY OTHER DAMAGES AVAILABLE TO BUYER UNDER THIS AGREEMENT OR AT LAW OR IN EQUITY FOR

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Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 7 l4l35992v3 SELLER'S FAILURE TO VACATE THE MAL PROPERTY BY THE TERMINATION DATE, PROVIDED, TRE PARTIES AGREE THAT THE FOREGOING LIQUIDATED DAMAGES ARE NOT INTENDED TO AFFECT THE BUYER'S RIGBT TO RECOVER ACTUAL AND REASONABLE COSTS INCURRED BY BUYER AS PROVIDED IN SUBSECTION (0) ABOVE . 14 . Notices . Any notice required or permitted to be made by either Party hereunder shall be given in writing and shall be deemed delivered upon dispatch if sent via electronic mail (email) communication (with electronic conflrmation of receipt), Federal Express or other nationally recognized overnight air courier, or upon receipt or refusal if sent via hand delivery in any case addressed to such Party at the addresses set forth below . If to Sellei . With a copy to: If to Buvei': With a copy to: UniFi Manufacturing, Inc. 7201 West Friendly Avenue Greensboro, North Carolina, 27410 Attn: Andrew J. Eaker Email: aieakei'fiIliinifi.coin Moore & Van Allen PLLC 78 Wentworth Street Charleston, South Carolina 29401 Attn: H. Manning Unger, Esq. Email: maiininguncerH.mvalaw.com Enovum NC - 1 Bidco, LLC c/o Enovum Data Centers Corp. D - 3195 RD Bedford Montreal (Quebec) H3S 1G3 Canada Attn: Bryan Bullett/Simon Hamelin - Choquette Email: brYanH,bit - digital.com , shchoquetteJ,ennvunidc.com Womble Bond Dickinson (US), LLP 301 S. College Street, Suite 3500 Charlotte, NC 28202 Attn: Kent Jones Email: kent.jonesJwbd - us.com 15 . Force Majeure . Whenever performance is required of any Party hereunder, such Party shall use all due diligence to perform and take all necessary measures in good faith to perform ; provided, however that if completion of performance shall be delayed at any time by reason of acts of God, war, civil commotion, public health emergency or endemic or pandemic resulting in governmental regulations or shutdowns (complete or partial), earthqualces, hurricanes or other natural storms, floods, unusual weather conditions, riots, work stoppages arising out of collective

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" Docusign"Envelope ID: 6111A9B&9D49 - 4C81 - B192 - C84E46A1E371 bargaining strilces, unanticipated unavailability of materials, the acts or omissions of Buyer or its employees, agents or contractors (" Pores 3 fajzstr« "), then the time for performance as herein specified shall be appropriately extended by the time of the delay actually caused, but no more than thiiay (30) calendar days from the date of notice, Upon the occurrence of a Force Majeure event, the affected Party must provide notice to the other Party pursuant to the terms of Section 14 herein within five (5) calendar days of the Force Majeure event . The provisions of this Section shall not operate to excuse any Party from the prompt payment of any monies required by this Agreement . 16. Miscellaneous . a. No delay by Buyer in enforcing any right, remedy, privilege or recourse shall affect, diminish, suspend or exhaust any of such rights, remedies, privileges or recourses . b. None of the covenants, terms or conditions of this Agreement shall in any mannei' be a 1 tei'ed, waived, modified, changed, or abandoned, except by a written instrument, duly signed and delivered by both Parties . c, This Agreement, together with the terms and conditions of the Contract, shall constitute the entire agreement between the Parties relative to the subject matter herein, and shall supersede any prior agreement or undei'standing, if any, whether written or oral . d. This Agreement shall be govei'ned by and construed in accordance with the laws of the State of North Carolina, without regard to condict of laws principles . The Parties further agree that any suit, action, or proceeding arising out of this Agreement shall be submitted to and brought exclusively before the appropriate federal or state courts in the State of North Carolina . The Parties acknowledge that this Agreement has been prepared, negotiated, executed, and entered into as a contract in the State of North Carolina . This Agreement supersedes all prior agreements and understandings between the Parties hereto relating to the subject matter hereof . e. The headings of this Agreement are for the purpose of refei'enee only and shall not limit or define the meaning of any provision of this Agreement . f. This Agreement creates a license and not any interest in real property . In no event shall this Agreement be considered a lease . This Agreement does not create any relationship between the Parties as landlord and tenant, partners, joint ventureis or any similar relationship . Seller hereby waives any claim that it is a tenant of the Real Pi'operty and/or that it is entitled to any protections of any land 1 oi'd/tenant laws in effect in the State of North Carolina . g. This Agreement may be executed in any number of counterparts, each of which shall be deemed an oTiginaJ and all of which, when taken together, shall constitute one and the same Agreement . Additionally, the Parties hereby covenant and agree that, for purposes of facilitating the execution of this Agreement, a facsimile, PDF, or DocuSign signature shall be deemed to be an original Signature . [Signature Pages Follow] 14135992Y3

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Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 9 14l35992v3 IN WITNESS WHEREOF, intending to be legally bound, the Parties have caused this Agreement to be duly executed effective as of the Effective Date set forth above. Seller: UNIFI MANUFACTURING, INC., a North Carolina corporation By : Name : Title : ENOVUM NC - 1 BIDCO, LLC, a Delaware limited liability company By : Name : Title :

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' Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 10 1413SP92v3 EXHIBIT A LEGAL DESCRIPTION Legal Description All the piopeity located in Rockingham County, North Carolina described as follows : BEGINNING AT AN EXISTING IRON STAKE IN THE WESTERN RIGHT OF WAY OF ISLAND DRIVE, SAID POINT HAVING NORTH CAROLINA GRID NORTHING OF 968 , 491 . 73 AND EASTING 1 , 709 , 827 . 95 , SAID POINT BEING SOUTH 44 DEG . 44 MIN . 18 SEC . WEST 109 . 42 FEET FROM MAG NAIL # 1 WHICH IS SET IN THE CENTERLINE OF N . C . HWY . 704 WITH THE CENTERLINE OF WILLIAM TURNER ROAD, & ISLAND DRIVE, SAID NAIL # 1 HAVING GRID NORTHING 968 , 569 . 4544 AND EASTING 1 , 709 , 904 . 9932 ; THENCE FROM SAID BEGINNING POINT WITH THE WESTERN RIGHT OF WAY OF ISLAND DRIVE THE FOLLOWING COURSES : SOUTH 29 DEG . 51 MIN . 50 SEC . WEST 475 . 44 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 27 DEG . 20 MIN . 15 SEC . WEST 97 . 94 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 22 DEG . 17 MIN . 05 SEC . WEST 97 . 94 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 17 DEG . 14 MIN . 00 SEC . WEST 97 . 94 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 12 DEG . 10 MIN . 50 SEC . WEST 97 . 94 FEET TO A MAG . NAIL ; THENCE SOUTH 07 DEG . 07 MIN . 40 SEC . WEST 97 . 94 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 02 DEG . 04 MIN . 30 SEC . WEST 97 . 94 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 00 DEG . 27 MTN . 05 SEC . EAST 1 , 049 . 80 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 01 DEG . 43 MIN . 15 SEC . EAST 90 . 00 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 05 DEG . 20 MIN . 30 SEC . EAST 90 . 00 FEET TO A MAG NAIL ; THENCE SOUTH 09 DEG . 41 MIN . 49 SEC . EAST 79 . 42 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 1 1 DEG . 04 MIN . 54 SEC . EAST 32 . 08 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 14 DEG . 41 MIN . 58 SEC . EAST 76 . 89 FEET TO AN EXISTING IRON STAKE ; THENCE SOUTH 18 DEG . 16 MIN . 17 SEC . EAST 24 . 28 FEET TO AN EXISTING IRON STAKE ; THENCE LEAVING SAID RIGHT OF WAY WITH THE NORTHERN LINE OF LAURA VAN CHU (SEE DEED BOOK 1256 PAGE 1315) SOUTH 74 DEG . 43 MIN . 40 SEC . WEST 566 . 74 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH SAID CHU LINE SOUTH 75 DEG . 02 MIN . 46 SEC . WEST 608 . 46 FEET WEST TO A 1 " SPINDLE, A COMMON CORNER WITH SAID CHU AND JERRY T . ZIGLAR (SEE DEED BOOK 943 PAGE 8) ; THENCE WITH ZIGLAR'S NORTHERN LINE SOUTH 68 DEG . 31 MIN . 27 SEC . WEST 226 . 47 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH ZIGLAR'S NORTHERN LINE NORTH 84 DEG . 45 UIN . 01 SEC . WEST 511 . 49 FEET TO AN EXISTING IRON STAKE, ZIGLAR'S NORTHWEST CORNER IN THE COMMON LINE OF MARY E . BLAKE & OTHERS (SEE DEED BOOK 753 PAGE 191) ; THENCE WITH BLAKE'S EASTERLY LINE NORTH 01 DEG . 10 NIIN . 54 SEC . EAST 844 . 57 FEET TO AN EXISTING IRON STAKE, A COMMON CORNER WITH BLAKE AND BOBBY ZIGLAR (SEE DEED BOOK 1230 PAGE 176) ; THENCE WITH ZIGLAR'S LINE NORTH 01 DEG . 06 MIN . 01 SEC . EAST 190 . 82 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH ZIGLAR'S LINE SOUTH 87 DEG . 29 MIN . 02 SEC . EAST 547 . 62 FEET TO AN EXISTING IRON STAKE IN THE WESTERN RIGHT OF WAY OF GROGAN LAKE ROAD (SEE MAP BOOK 4 PAGE 40) ; THENCE WITH SAID RIGHT OF WAY SOUTH 02 DEG . 47 MIN . 00 SEC . WEST 1 1 1 . 73 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH SAID RIGHT OF WAY SOUTH 89 DEG . 46 MIN . 58 SEC . EAST 30 . 61 FEET TO AN EXISTING IRON STAKE ; THENCE WITH THE EASTERN RIGHT OF WAY OF GROGAN ROAD NORTH 02 OEG . 31 MIN . 10 SEC . EAST 110 . 36 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH SAID EASTERN RIGHT OF WAY NORTH 02 DEG . 31 MIN . 10 SEC . EAST 249 . 84 FEET TO AN EXISTING IRON STAKE ; THENCE LEAVING SAID RIGHT OF WAY WITH THE SOUTHERN LINE OF MICHAEL MABE (SEE DEED BOOK 1363 PAGE 990) SOUTH 87 DEG . 41 MIN . 29 SEC . EAST 200 . 19 FEET TO AN EXISTING IRON STAKE ; THENCE WITH THE COMMON LINE OF SAID I \ /IABE NORTH 02 DEG . 20 MIN . 09 SEC . EAST 49 . 99 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH SAID MABE LINE AND TIMOTHY TILLEY LINE (SEE DEED BOOK 850 PAGE 526) NORTH 02 DEG . 34 MIN . 47 SEC . EAST 499 . 72 FEET TO AN EXISTING IRON STAKE, TILLEY'S NORTHEAST CORNER ; THENCE WITH TILLEY'S NORTHERN LINE NORTH 87 DEG . 37 MIN . 29 SEC . WEST 200 . 01 FEET TO AN EXISTING IRON STAKE IN THE EASTERN RIGHT OF WAY OF GROGAN ROAD, ALSO BEING TILLEY'S NORTHWEST CORNER ; THENCE WITH THE RIGHT OF WAY OF GROGAN ROAD NORTH 02 DEG . 33 MIN . 55 SEC . EAST 199 . 64

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"Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E 3 71 14135992v3 FEET TO AN EXISTING IRON STAKE ; THENCE LEAVING SAID ROAD WITH THE COMMON LINE OF J,F . COX (SEE DEED BOOK 678 PAGE 971) SOUTH 87 DEG . 28 MIN . 02 SEC . EAST 199 . 90 FEET TO AN EXISTING IRON STAKE, COX'S SOUTHEAST CORNER ; THENCE WITH COX'S LINE AND HERMINIO PUENTE (SEE DEED BOOK 1 120 PAGE 96) NORTH 02 DEG . 35 MIN . 12 SEC . EAST 401 . 09 FEET TO AN EXISTING INON STAKE, PUENTE'S NORTHEAST CORNER ; THENCE WITH PUENTE'S NORTHERN PROPERTY LINE NORTH 87 DEG . 26 MIN . 54 SEC . WEST 200 . 03 FEET TO AN EXISTING IRON STAKE, SAID STAKE BEING IN THE EASTERN RIGHT OF WAY OF GROGAN ROAD ; THENCE WITH SAID GROGAN ROAD NORTH 02 MIN . 34 MIN . 06 SEC . EAST 499 . 69 FEET TO AN EXISTING IRON STAKE, BETTY WALL'S (SEE DEED BOOK 680 PAGE 121) SOUTHWEST CORNER ; THENCE LEAVING SAID GROGAN ROAD WITH WALL'S SOUTHERN LINE SOUTH 87 DEG . 23 MIN . 55 SEC . EAST 199 . 91 FEET TO AN EXISTING IRON STAKE AT THE BASE MAPLE, WALL'S SOUTHEAST CORNER ; THENCE WITH WALL'S EASTERN LINE NORTH 02 DEG . 34 MIN . 51 SEC . EAST 199 . 78 FEET TO AN EXISTING IRON STAKE, WALL - S NORTHEAST CORNER IN THE SOUTHERN LINE OF DUKE ENERGY CORP . (SEE DEED BOOK 1254 PAGE 1745) ; THENCE WITH SAID DUKE ENERGY'S SOUTHERN LINE SOUTH 87 DEG . 35 MIN . 07 SEC . EAST 69 . 74 FEET TO AN EXISTING IRON STAKE ; THENCE CONTINUING WITH DUKE ENERGY'S LINE SOUTH 69 DEG . 24 MIN . 03 SEC . EAST CROSSING OVER AN EXISTING IRON STAKE AT 75 . 0 1 FEET A TOTAL DISTANCE OF 82 . 0 1 FEET TO A POINT, DUKE ENERGY'S SOUTHEAST CORNER ; THENCE WITH DUKE ENERGY'S EASTERN PROPERTY LINE NORTH 20 DEG . 28 MIN . 01 SEC . EAST CROSSING AN EXISTING IRON STAKE AT 1 5 . 00 FEET FOR A TOTAL DISTANCE OF 407 . 24 FEET TO AN EXISTING IRON STAKE IN THE SOUTHERN RIGHT OF WAY OF N . C . HWY . 704 , DUKE ENERGY'S NORTHEAST CORNER ; THENCE WITH THE SOUTHERN RIGHT OF WAY OF N . C . HWY . 704 THE FOLLOWING COURSES : SOUTH 70 DEG . 10 MIN . 03 SEC . EAST 332 . 33 FEET TO A R/W MONUMENT ; THENCE SOUTH 68 DEG . 35 MIN . 21 SEC . EAST 195 . 50 FEET TO A R/W MONUMENT ; THENCE SOUTH 56 DEG . 49 MIN . 20 SEC . EAST 323 . 18 FEET TO A R/W MONUMENT ; THENCE SOUTH 44 DEG . 2 1 MIN . 35 SEC . EAST 202 . 12 FEET TO A R/W MONUMENT ; THENCE SOUTH 43 DEG . 26 MIN . 58 SEC . EAST 105 . 78 FEET TO A R/ \ /V MONUMENT ; THENCE SOUTH 06 DEG . 33 MIN . 10 SEC . EAST 113 . 54 FEET TO THE POINT OF BEGINNING, CONTAINING 96 . 55 ACRES, MORE OR LESS, AS SHOWN ON SURVEY TITLED "PLAT OF SURVEY FOR UNIFI MANUFACTURING INC . " DATED APRIL 14 , 2012 AND PREPARED BY C . E . ROBERTSON OF C . E . ROBERTSON & ASSOCIATES, P . C . , N . C . P . L . S . NO . L - 1421 For informational purposes only : Address: 805 Island Drive, Madison, Noith Carolina Parcel ID 169992

![](ex10-24_018.jpg)

Docusign' Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 14135992v3 SCHEDULE 2 EXIT SCHEDULE Machinery and equipment will be removed from the Real Property based on the schedules shown on the attached floor plans by the last day of the indicated month in 2025, except with respect to December which is December 21: (1) Building Square Feet Availability; (2) Plant 3 Time Layout for South End; (3) Plant 3 Time Layout for North End; and (4) Plant 3 Common Areas and Shared Operational Areas. 12

![](ex10-24_019.jpg)

' USA Md \ - 15,0 † ! \ I June II Vacant May - 40,Q00 sq.ft• 'Docusign' Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 t413J992v3 (1) Building Square Feet Availability (2) Plant 3 Time Layout for South End

![](ex10-24_020.jpg)

Docusign Envelope ID: 6111A9B0 - 9D49 - 4C81 - B192 - C84E46A1E371 l4l35992v3 (3) Plant 3 Time Layout for North End (4) Common Areas and Shared Operational Areas 14

## Exhibit 10.25

**Exhibit 10.25**

***Execution Version***

 ****

**MASTER SERVICES AND LEASE AGREEMENT**

This Master Services and Lease Agreement (this "**MSLA**") is hereby entered into by **Bit Digital HPC, Inc.,** a Delaware corporation ("**Bit Digital**"), and Boosteroid Inc, a Texas corporation ("**Boosteroid**"), and is effective as of October 9, 2024 ("**MSLA Effective Date**"). In this MSLA, Bit Digital and Boosteroid are each referred to as a "**Party**" or collectively as the "**Parties**". Capitalized terms that are not defined in the body or exhibits of this MSLA have the meanings set forth in <u>Exhibit A</u> (<u>Definitions</u>).

1. MSLA.

1.1 <u>Purchase Orders</u>. From time to time, Boosteroid may lease Equipment from Bit Digital by delivering
to Bit Digital a purchase order substantially in the form of Exhibit B (each such purchase order, a "**Purchase Order** ").
Each Purchase Order will describe the specifications and duration of the lease that Boosteroid will obtain from Bit Digital (the "**Lease** ").

1.2 <u>Application of MSLA to Purchase Orders</u>. When interpreting the terms of this MSLA with respect to
a given Purchase Order, (a) references to "**Lease**" will be construed as references to the Lease described in the Purchase
Order, and (b) references to a "**Purchase Order**" will refer to the terms of both the MSLA and the terms of this Purchase
Order as applicable to the MSLA. If there is a conflict between the terms of a Purchase Order and this MSLA, this MSLA will control.

2. LEASE; PURCHASE.

2.1 <u>Equipment Lease</u>. Upon execution by both Parties of a Purchase Order for the lease of Equipment,
Boosteroid will thereby lease the Equipment described in such Purchase Order from Bit Digital subject to the terms and conditions of this
MSLA and such Purchase Order. Subject to Section 16.3, Bit Digital shall not, during any Purchase Order Term, sell or lease the relevant
Equipment to any other party.

2.2 <u>True Lease; Net Lease</u>. The Parties intend that the Lease under this MSLA in combination with a
Purchase Order shall constitute a true lease under Applicable Law. Bit Digital shall retain title to the Equipment at all times during
the Term of this Agreement. Other than as provided for in Section 2.7 below, Boosteroid acquires no ownership,
title, property, right, equity, or interest in the Equipment other than its leasehold interest solely as lessee subject to all the terms
and conditions of this MSLA and respective Purchase Order. The Lease hereunder is a net lease.

2.3 <u>Pickup; Installation and Set-up</u>. Bit Digital shall arrange for the pickup of the Equipment at a
location so specified by Bit Digital in Taiwan or such other location communicated to Boosteroid in writing ()"**Pickup Location** ").
Boosteroid shall prompt, directly or indirectly, pickup such Equipment from the Pickup Location and handle all subsequent logistics, installation,
and set-up of the Equipment to the locations specified in the respective Purchase Order. Boosteroid shall bear all risk of loss to the
Equipment once picked up from the Pickup Location per this Section 2.3. Boosteroid shall make available all records and documentation
related to the pickup and delivery logistics of the Equipment, and may not store or deliver the Equipment in or to any location other
than those locations specified in the respective Purchase Order.

2.4 <u>Security Interest</u>. The Parties intend and agree that, if this MSLA and any related Purchase Order
is recharacterized under Applicable Law as a secured financing or a lease intended for security, this MSLA and such related Purchase Order
shall be deemed a security agreement and Section 2.1 hereof shall be deemed to grant Bit Digital by Boosteroid a lien on and first priority
security interest in the Equipment and all proceeds thereof, to secure the payment of Boosteroid's obligations under this MSLA and
related Purchase Order. Each Party agrees to execute, acknowledge, deliver, file, and record, or cause to be executed, acknowledged,
delivered, filed, and recorded such further documents (including without limitation UCC financing statements), and to do all such things
and acts, necessary to ensure that such security interest would be a perfected first priority security interest under Applicable Law.
Upon a sale of any or all of the Equipment by Bit Digital to Boosteroid, the security interests contemplated by this Section 2.4, if any,
shall terminate automatically, and that Parties shall cooperate to remove any filings, documents, or other statements which provide Bit
Digital with a property interest in the subject Equipment.

2.5 <u>No Setoff; No Liens or Encumbrances</u>. Boosteroid's obligation to make any and all payments
under this MSLA and any Purchase Order is absolute and unconditional and is not subject to any abatement, counterclaim, defense, deferment,
interruption, recoupment, reduction, or setoff for any reason whatsoever. During the MSLA Term and any Purchase Order Term, Boosteroid
may not pledge, hypothecate, encumber, or otherwise cause the Equipment to suffer any lien, other than per Section 2.4 herein, without
the prior written consent of Bit Digital, which consent may be withheld in Bit Digital's sole discretion. The Parties acknowledge
that any breach of this Section 2.5 shall constitute a material breach of this MSLA.

2.6 <u>No Sublease</u>. Boosteroid shall not enter into any sublease of any Equipment without Bit Digital's
prior written consent, which consent may be withheld in Bit Digital's sole discretion. No permitted sublease shall relieve Boosteroid
of its obligations under this MSLA or any Purchase Order.

2.7 <u>Equipment Purchase</u>. Upon the fifth (5<sup>th</sup>) year anniversary of leasing any Equipment,
Boosteroid shall have the option to purchase such Equipment for a nominal sum reflecting minimally sufficient consideration to affect
a sale transaction of such Equipment; provided, that, (a) Boosteroid has not breached without cure this MSLA or any Purchase Order hereunder,
(b) there is no dispute between the Parties and (c) such transaction would not violate any applicable law including, without limitation,
any import or export, sanctions, or anti-money laundering law; provided, that, if such sale transaction is unlawful under applicable law,
the Parties will cooperate using reasonable efforts to effect a transfer of such Equipment to the extent possible. If Boosteroid wishes
to acquire any Equipment for which five (5) full years' worth of leasing payments have yet to be made to Bit Digital, Boosteroid
may purchase such Equipment for the price of such remaining unpaid lease payments up to the fifth (5th) year anniversary date. The Parties
shall effect any sale of Equipment contemplated by this Section 2.7 by executing an equipment bill of sale in the form substantially attached
hereto as Exhibit C (Equipment Bill of Sale).

2.8 <u>Automatic Purchase</u>. The Parties agree that, in the event that any Equipment is lost, stolen, or
otherwise damaged or impaired in a manner such that repair costs would not be commercially reasonable, Boosteroid shall be deemed to have
purchased such Equipment automatically with no further action needing to be taken by either Party. The purchase price of such automatic
purchase shall be the remaining value attributable to that Equipment under the relevant Purchase Order in respect of the Lease Fee, as
reasonably determined by Bit Digital, and shall be paid on a pro-rated basis according to the invoicing schedule as set forth under this
Agreement and the relevant Purchase Order. For the avoidance of doubt, aside from the payments described in the previous sentence, no
upfront or additional fee shall be charged in respect of such the automatic purchase desribed in this Section 2.8.

2.9 <u>Equipment Access</u>. The Parties agree that Boosteroid may refuse to permit any third-party with access
to the Equipment in Boosteroid's possession under this Agreement unless such third-party has been expressly authorized by Bit Digital
to access such Equipment.

3. FEES AND STATEMENTS.

3.1 <u>Lease Fees</u>. Boosteroid will pay Bit Digital fees to lease the Equipment as well as certain other
fees, costs, and expenses, including Non-Purchase Price Costs **,** as specified in a Purchase Order (the "**Lease Fees** ").
Lease Fees shall be paid in United States Dollars by wire transfer of immediately available funds in accordance with the wire instructions
set forth in the applicable invoice.

3.2 <u>Late Payments</u>. If Boosteroid does not pay any amount payable to Bit Digital as invoiced under this
MSLA and applicable Purchase Order within ten (10) business days of receipt of such invoice, Boosteroid shall pay to Bit Digital a late
charge equal to the lower of (a) the maximum amount permitted under Applicable Law and (b) 1.5% of the amount outstanding per month, prorated
for the number of days outstanding.

3.3 <u>Invoices</u>. Bit Digital will provide Boosteroid with monthly invoices in arrears of each month outlining
the Lease Fees and any other fees, costs, and expenses charged to or paid to Boosteroid. Costs and expenses charged to Boosteroid may
be netted from fees owed by Boosteroid to Bit Digital. All calculations made in the invoices shall be calculated in good faith by Bit
Digital as specified in the applicable Purchase Order.

3.4 <u>Taxes</u>. The fees and expenses set forth herein do not include any foreign, federal, state or local
sales, value added, use, withholding or other similar taxes, tariffs or duties, however designated, levied against the sale, licensing,
delivery or use of the Services ()"**Taxes** "). Each Party shall be responsible for its own Taxes; provided, that, Boosteroid
shall be responsible for all Taxes related to the Lease; provided, further, that Boosteroid shall not be liable for any Taxes based on
Bit Digital's net income and ad valorem, personal and real property taxes imposed on Bit Digital's owned or leased property.

4. INTELLECTUAL PROPERTY.

4.1 <u>License to Deliverables</u>. Bit Digital hereby grants to Boosteroid during the MSLA Term and Purchase
Order Term a worldwide, non-exclusive, non-transferable, and revocable license in and to use the Deliverables in connection with the Lease.

4.2 <u>License to Bit Digital Background IP</u>. Bit Digital shall retain ownership of all Intellectual Property
Rights to any invention, work or other matter, including (a) Bit Digital know-how, processes, methodologies, user interface designs, architecture,
class libraries, and documentation (both printed and electronic) existing as of the MSLA Effective Date, and (b) any derivatives, improvements,
enhancements or extensions of the foregoing conceived, reduced to practice, or developed by Bit Digital during the term or in performance
of this MSLA, or (c) that has been or is created, conceived or reduced to practice by Bit Digital prior to or independently of this MSLA
but incorporated into or used with the Deliverables (the "**Background IP** "). For the avoidance of doubt: (a) Boosteroid
shall not, or shall not authorize anyone, to sublicense, license, or resell Background IP.

4.3 <u>Ownership, Licensing and Use of Bit Digital Data</u>. Except as expressly otherwise provided herein,
all Bit Digital Data provided to Boosteroid in connection with the Lease is the exclusive property of Bit Digital. Bit Digital hereby
grants to Boosteroid a non-exclusive, revocable, and non- transferable, license to receive and use data to the extent necessary under
this MSLA, provided, that, Boosteroid may not use and access Bit Digital Data for other purposes or provide Bit Digital Data to other
third parties without informing and obtaining written consent from Bit Digital.

4.4 <u>Non-Exclusivity</u>. The Parties acknowledge and agree that the terms of this MSLA and any Purchase
Order, the Lease, and the relationship between the Parties and their respective Affiliates, do not impose any obligations of exclusivity
on either Party or its respective Affiliates.

5. TERM AND TERMINATION RIGHTS.

5.1 <u>Term</u>. This MSLA commences on this MSLA Effective Date and, unless otherwise terminated pursuant
to the terms of this MSLA, continues for a period of five (5) years (the "**Initial Term** "). This MSLA will automatically
renew for successive one-year periods (each a "**Renewal Term**") after the Initial Term and any subsequent Renewal Term,
unless a Party provides the other Party written notice of its intent not to renew at least one hundred twenty (120) days prior to the
expiration of the Initial Term or the then-current Renewal Term (the Initial Term together with all Renewal Terms, the "**MSLA Term** ").

5.2 <u>Purchase Order Term</u>. Each Purchase Order commences on the effective date set forth in the Purchase
Order and, unless the Purchase Order is terminated, continues for the period of time set forth in the Purchase Order, or if no period
of time is set forth, for the period of time coterminous with this MSLA (such period of time, the "**Purchase Order Term** ").
If a Purchase Order Term continues beyond the expiration of the MSLA Term, the MSLA Term of this MSLA will be extended until such time
that the Purchase Order expires or is terminated, solely with respect to the Lease and ancillary services provided under that Purchase
Order. The termination of a specific Purchase Order will not terminate this MSLA or any other Purchase Order.

5.3 <u>Termination for Cause</u>. Each Party may terminate this MSLA or any Purchase Order (as the case may
be) by providing written notice to the other Party if the other Party commits a material breach of this MSLA or the Purchase Order (as
the case may be) that are (a) regulatory issues that are not capable of cure, or (b) is capable of cure but that the other Party fails
to cure within thirty (30) days after receipt of written notice from the other Party of such breach.

5.4 <u>Termination for Financial Insolvency</u>. Each Party, at its sole discretion, may terminate this MSLA
or a Purchase Order (as the case may be) by providing the other Party with written notice, if the other Party (a) becomes insolvent, undergoes
a dissolution, or ceases its business operations, or any petition is filed or other steps are taken for its bankruptcy, liquidation, receivership,
administration, examinership, dissolution, or other similar action, or (b) it commences negotiations or enters into an agreement with
all or any class of its creditors in relation to any assignment for the benefit of such creditors, the rescheduling of any of its debts,
and/or any compromise or other arrangement with any of its creditors.

5.5 <u>Termination Due to a New Regulatory Requirement</u>. If a Governmental Authority enacts or issues an
Applicable Law that conflicts with any term of a Purchase Order (a "**Regulatory Requirement** "), Bit Digital, at its sole
reasonable discretion, may modify or terminate such Purchase Order, to account for the economic or legal impact of such Regulatory Requirement.

5.6 <u>Not Exclusive Remedy</u>. Termination of this MSLA or any Purchase Order is not an exclusive remedy,
and the exercise by any Party of any remedy under this MSLA or any Purchase Order will be without prejudice to any other remedy it may
have under this MSLA, the Purchase Order, Applicable Law, or otherwise.

5.7 <u>Effect of Termination</u>. Termination or expiration of a Purchase Order will not affect a Party's
obligations or remedies under this MSLA. Upon any such termination or expiration, each Party shall immediately pay the other Party all
amounts due and payable hereunder as of the effective date of termination or expiration. To the extent the Parties do not agree to renew
this MSLA or Purchase Order, and no sale of the Equipment
has been made by Bit Digital to Boosteroid, the Parties shall cooperate to enable Bit Digital to remove the Equipment from the Data Center
locations at the sole cost of Boosteroid.

5.8 <u>Early Termination Payment</u>. Boosteroid may terminate a Purchase Order prior to its Purchase Order
Term ending date by (a) providing Bit Digital with written notice of its intention to terminate the entire Purchase Order as of a specific
date in the future (such date being no less than five (5) business days from the date of such written notice) and (b) paying to Bit Digital
in United States Dollars an amount that is equal (i) the remaining amortized value of the Equipment
in such Purchase Order *plus* (ii) eighty percent (80%) of the remaining amortized equivalent of the Lease Premium, as reasonably
calculated by Bit Digital (such sum, the "**Early Termination Payment** "). Solely for illustrative purposes, in respect
of a hypothetical Purchase Order terminated by Boosteroid pursuant to this Section 5.8 on the fourth (4<sup>th</sup>) year anniversary
of the Purchase Order Date, if the aggregate Purchase Price was $100 and the Lease Value was $120, then the Early Termination Payment
owed to Bit Digital for such early termination would be: $23.20, calculated as 0.2 \* $100 + 0.8 \* $4.

5.9 <u>Survival</u>. The following Sections and Exhibits will survive any expiration or termination of this
MSLA or a Purchase Order: Section 1.1 (Purchase Orders), Section 1.2 (Application of MSLA to Purchase Orders), Section 2.2 (True Lease;
Net Lease), Section 2.4 (Security Interest), Section 3.4 (Taxes), Section 4.2 (License to Bit Digital Background IP), Section 5.6 (Not
Exclusive Remedy), Section 5.7 (Effect of Termination), Section 8 (Equipment Loss), Section 9 (Disclaimers; Limitation of Liability),
Section 11 (Default), Section 12 (Return of Equipment), Section 13 (Indemnification), Section 14 (Confidentiality), Section 15 (General),
and Exhibit A (Definitions) to this MSLA, in addition to any Sections and Exhibits that are otherwise designated as surviving.

6. REPRESENTATIONS, WARRANTIES, AND COVENANTS.

6.1 <u>Mutual</u>. Each Party to this MSLA and a Purchase Order represents, warrants, and covenants that: (a) it has and will retain, the full right,
power, and authority to enter into this MSLA or the Purchase Order; (b) it has been duly authorized to do so by all required governmental,
corporate, or similar action; (c) when executed and delivered by such Party, this MSLA or the Purchase Order will be legally binding upon
and enforceable against such Party, and this MSLA or the Purchase Order will not conflict with any agreement, instrument, or understanding,
oral or written, to which such Party is a party or by which it may be bound; and (d) as of the date such Party executed this MSLA or the
Purchase Order, there are no proceedings pending or, to its knowledge, threatened or reasonably anticipated that would challenge or that
may have a material adverse effect on its performance under this MSLA or the Purchase Order. Each Party is duly organized, validly existing,
and in good standing as a corporation or other entity as represented in this MSLA or the Purchase Order under the laws and regulations
of its jurisdiction of incorporation, organization, or chartering.

6.2 <u>Boosteroid</u>. Boosteroid represents, warrants, and covenants that, during the MSLA Term and Purchase
Order Term, that:

6.2.1 Boosteroid has delivered complete copies of its audited financial statements for its most recent fiscal
year and any other financial information of it reasonably requested by Bit Digital, fairly presenting the financial condition and operations
of Boosteroid's business as of the dates such statements and information were prepared.

6.2.2 Boosteroid shall maintain an internal compliance program to ensure it and its Affiliates comply with
 all Applicable Laws including, without limitation, applicable national and international export control laws and regulations as well
 as the economic sanctions laws, regulations, embargoes, or restrictive measures administered, enacted, or enforced by the United
 States and relevant government authorities. Boosteroid shall
ensure that the Equipment will not directly or indirectly be resold, exported, re-exported, or transferred to any person or entity prohibited
or restricted by the applicable export control and sanctions laws including to such person or entity in China, Cuba, Iran, North Korea,
Sudan, Syria, Russia, Belarus, the Donetsk region, Luhansk region and Crimea.

6.2.3 Boosteroid has and shall maintain in full force and effect all permits required to conduct its business
and continue to conduct its business and to lease and use the Equipment in the manner contemplated by this MSLA and any relevant Purchase
Order.

7. BOOSTEROID COVENANTS

7.1 <u>Markings</u>. No marking of any kind shall be placed on any Equipment by Boosteroid except with the
prior written consent of Bit Digital. Any such marking placed on the Equipment shall be removed at Boosteroid's expense on or before
the expiration or earlier termination of this MSLA or the relevant Purchase Order. Boosteroid shall, at its expense and to Bit Digital's
satisfaction, place and maintain on each unit of Equipment any identifying marks required by Bit Digital.

7.2 <u>No Relocation</u>. Boosteroid may not move Equipment from its location as specified in the relevant Purchase Order without Bit Digital's
prior written consent.

7.3 <u>Personal Property</u>. The Parties intend that the Equipment shall remain at all times personal property
and not a fixture or improvement under Applicable Law, even if the Equipment, or any part thereof, may be or becomes affixed or attached
to real property or any improvements.

7.4 <u>Equipment Records</u>. Boosteroid, at its own expense, shall maintain all records, logs, and other
materials related to the Equipment ()"**Records**") using practices and with a degree of care, comprehensiveness, and accuracy
consistent with industry best practices and in no event less than that degree of care as required by Applicable Law, and promptly furnish
to Bit Digital such Records as may be requested by Bit Digital for any purpose. Boosteroid shall not operate or permit the operation of
the Equipment in an unsafe or improper manner.

7.5 <u>Access</u>. Bit Digital's employees, agents, and representatives shall have the right of access
to Boosteroid's operating locations, whether such location is owned by Boosteroid, to inspect the Equipment and Boosteroid's
Records on reasonable notice and during regular business hours and in accordance with any applicable rules and regulations of third parties
(data center companies) in which premises the Equipment is located..

7.6 <u>Monitoring</u>. Boosteroid will provide access to Bit Digital to remotely monitor the Equipment and
its performance as reasonably requested by Bit Digital, but in all cases including any and all control panels, access methods, and other
features or metrics available to Boosteroid. Boosteroid shall enable Bit Digital to access a portal, platform, or other interface via
an application program interface to enable the monitoring contemplated by this Section 7.6.

7.7 <u>Maintenance and Mandatory Modifications</u>.

7.7.1 Boosteroid, at its sole cost and expense and consistent with industry best practices for similar Equipment,
shall maintain, service, and repair each unit of Equipment in compliance with any vendor or manufacturer specifications and Applicable
Law, in serviceable and operable condition, free of broken, damaged, or missing parts, suitable for the commercial use originally intended.
All maintenance, service, and repair of any unit of Equipment and any part thereof shall be done to standards and with parts of like kind
and at least equal quality to items being maintained, serviced, or repealed.

7.7.2 If during the MSLA Term or Purchase Order Term hereof any part of any unit of Equipment is lost, stolen,
damaged beyond repair, or otherwise permanently rendered unfit for use, Boosteroid, at its sole expense, shall promptly replace or cause
to be replaced such part with one or more replacement parts. Boosteroid shall cause such unit of Equipment after the replacement to be
in as good an operating condition as, and have a value, remaining useful life, and utility as least equal to the value, remaining useful
life, and utility of the unit of Equipment before the replacement (assuming such unit to have been in the condition required by the terms
of this MSLA and Purchase Order).

7.7.3 Boosteroid, at its sole expense, shall make any alternation or modification to any unit of Equipment including
without limitation the replacement or addition of any component, that is required or supplied by Bit Digital or the manufacturer or necessary
to comply with Applicable Law. Boosteroid shall notify Bit Digital promptly after learning that an alternation or modification is required
by Applicable Law and, in any event, prior to making any such alteration or modification, seek Bit Digital's prior written consent
before making such alternation or modification.

7.7.4 If Boosteroid incorporates or installs any part in or attaches any part to a unit of Equipment, including
without limitation any replacement or addition under Section 7.7.3, then immediately on any part becoming incorporated or installed in
or attached to the unit, without further act or any cost to Bit Digital, such part is deemed part of the unit of Equipment to the same
extent as though originally incorporated or installed in or attached to the unit, title to such part vests in Bit Digital, and such part
becomes subject to this MSLA and Purchase Order. Boosteroid shall cause all parts to be free and clear of any lien or encumbrance.

8. EQUIPMENT LOSS.

8.1 From receipt of any Equipment until return of such Equipment to Bit Digital, Boosteroid shall bear all
risk of loss, damage, destruction, theft, taking, confiscation, or requisition, partial or complete, of or to use Equipment, however caused
or occasioned ()"**Loss** "). Boosteroid shall notify Bit Digital in writing within ten (10) days of learning of any such
Loss.

8.2 If Bit Digital determines in its sole reasonable discretion that a Loss has materially impaired the Equipment
affected or its use, Boosteroid shall pay, on Bit Digital's demand ()"**Loss Payment Date** "), all Lease Fees and
other amounts due prior to the Loss Payment Date with respect to such Equipment, as reasonably determined by Bit Digital (collectively,
" **Loss Payment** "). This MSLA and the relevant Purchase Order shall terminate in respect of any materially impaired Equipment
on receipt by Bit Digital of the corresponding Loss Payment. Upon such receipt and termination, Bit Digital shall deliver to Boosteroid
a duly executed quitclaim bill of sale. So long as no Event of Default shall have occurred and be continuing, Boosteroid shall be subrogated
to all claims of Bit Digital, if any, against third parties, for material impairment of such Equipment to the extent of the replacement
value of such Equipment, as reasonably determined by Bit Digital.

8.3 If Bit Digital determines in its sole discretion that a Loss has not materially impaired the Equipment
affected or its use, this MSLA and relevant Purchase Order shall continue with respect to such Equipment as though no Loss had occurred.
For the avoidance of doubt, there shall be no abatement of Lease Fees for any period in which a unit of Equipment is sent for repair or
otherwise out of operation in connection with any maintenance, repairs, or mandatory modifications under this Section 8 or Section 7.7.

9. DISCLAIMERS; LIMITATION OF LIABILITY.

9.1 <u>Warranty Disclaimer</u>. EXCEPT AS EXPRESSLY SET FORTH IN THIS MSLA OR ANY PURCHASE ORDER, THE EQUIPMENT
AND ANY COMPONENTS THEREOF, ANY UPDATES, THE DOCUMENTATION, THE DELIVERABLES, AND ANY OTHER MATERIALS PROVIDED IN THIS MSLA OR ANY PURCHASE
ORDER, ARE PROVIDED "AS IS" AND "AS AVAILABLE." EXCEPT AS EXPRESSLY SET FORTH IN THIS MSLA OR ANY PURCHASE ORDER,
NEITHER PARTY TO THIS MSLA OR A PURCHASE ORDER MAKES ANY REPRESENTATIONS OR WARRANTIES, AND ALL OF THE PARTIES HEREBY EXPRESSLY DISCLAIM,
TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, STATUTORY OR OTHERWISE, INCLUDING WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND IMPLIED WARRANTIES OF NON- INFRINGEMENT AND THOSE ARISING FROM THE
COURSE OF DEALING OR PERFORMANCE, USAGE OR TRADE PRACTICES. IF THE EQUIPMENT IS NOT PROPERLY ASSEMBLED, INSTALLED, DOES NOT OPERATE AS
REPRESENTED OR WARRANTED BY ANY SUPPLIER OR MANUFACTURER, OR IS UNSATISFACTORY FOR ANY REASON, REGARDLESS OF CAUSE OR CONSEQUENCE, BOOSTEROID'S
ONLY REMEDY, IF ANY, SHALL BE AGAINST THE SUPPLIER OR MANUFACTURER OF THE EQUIPMENT AND NOT AGAINST BIT DIGITAL.

9.2 <u>Limitation of Liability</u>. NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, EXEMPLARY, PUNITIVE, OR SPECIAL DAMAGES, INCLUDING LOST PROFITS, REGARDLESS OF THE FORM OF THE ACTION OR THE THEORY OF
RECOVERY, EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF THOSE DAMAGES. FURTHER, TO THE
FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, ANY DAMAGES, IN THE AGGREGATE, SHALL NOT EXCEED AN AMOUNT EQUAL TO THE LEASE FEES
PAID TO BOOSTEROID IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM, WHETHER OR NOT SUCH DAMAGES ARE FORESEEABLE OR SUCH PARTY WAS ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANY OF THE FOREGOING, THE LIMITATIONS OF LIABILITY SET FORTH IN THIS <u>SECTION 9.2</u> SHALL NOT APPLY TO BOOSTEROID'S OBLIGATIONS UNDER <u>SECTIONS 8</u>, <u>10</u>, <u>12</u>, OR <u>13</u> OR TO EITHER PARTY'S
DAMAGES ARISING FROM A BREACH OF <u>SECTION 14</u>.

10. RESERVED

**11.** **DEFAULT** 

11.1 Each of the following events is an "**Event of Default**" under this MSLA and the relevant
Purchase Order: (a) Boosteroid fails to pay any amount due and outstanding under this MSLA or relevant Purchase Order; (b) Boosteroid
defaults in the observance or performance of any other term, covenant, or condition of this MSLA or relevant Purchase Order, on Boosteroid's
part to be observed or performed, and Boosteroid fails to remedy such default within thirty (30) days after notice by Bit Digital to Boosteroid
of such default; (c) Boosteroid's interest or any portion thereof in this Agreement devolves on or passes to any other party, whether
by operation of law or otherwise; (d) Boosteroid (i) becomes insolvent, (ii) is generally unable to pay, or fails to pay, its debts as
they become due, (iii) files, or has filed against it, a petition for voluntary or involuntary bankruptcy, (iv) makes or seeks to make
a general assignment for the benefit of its creditors, or (v) applies for, or consents to, the appointment of a trustee, receiver, or
custodian for a substantial part of its property or business; (d) Boosteroid
sells, transfers, or disposes of all or substantially all of its assets or the property of its business, or merges or consolidates with
any other entity; or (e) any representation contained in Section 6 is untrue as and when made.

11.2 If an Event of Default occurs and is continuing, Bit Digital may, in its sole discretion, exercise one
or more of the following remedies; (a) declare this MSLA and any relevant Purchase Order in default; (b) terminate this MSLA and relevant
Purchase Order in whole or in part; (c) take possession of, or render unusable, any unit of Equipment wherever it may be located, without
demand or notice, without any court order or other process of law, and without liability to Boosteroid for any damages occasioned by such
action; (d) require Boosteroid to deliver any Equipment in the condition required under this MSLA and any relevant Purchase Order to a
location designated by Bit Digital and, for each day that Boosteroid fails to return any Equipment, Bit Digital may demand an amount equal
to the fees for such Equipment prorated on the basis of a thirty-day month, in effect immediately prior to such Event of Default; (e)
proceed by court action to enforce performance by Boosteroid of this MSLA or to recover all damages and expenses incurred by Boosteroid
by reason of any Event of Default; (f) sell any or all of the Equipment at public or private sale, with or without notice to Boosteroid
or advertisement, or otherwise dispose of, hold, use, operate, lease to others, or keep idle such Equipment, and without any duty to account
to Boosteroid for such action or inaction or for any proceeds with respect thereto, and apply the net proceeds thereof (after deducting
all expenses, including legal fees and costs, incurred in connection therewith) to the amounts owed to Bit Digital under this MSLA and
any relevant Purchase Order; provided, however, that Boosteroid shall remain liable to Bit Digital for any deficiency that remains after
any sale or lease of such Equipment; and (g) exercise any other right or remedy available to Bit Digital at law, in equity, by statute,
in any other agreement between the Parties, or otherwise.

11.3 <u>Bit Digital's Performance of Boosteroid's Obligations</u>. If Boosteroid is in default
or an Event of Default has occurred and is continuing, Bit Digital may, in its sole discretion, on ten (10) days' prior written
notice, make any payment or perform any obligation on behalf of Boosteroid or take any action that Bit Digital in Bit Digital's
sole discretion deems necessary to maintain and preserve any or all units of Equipment and Bit Digital's interests therein. Bit
Digital's payment, performance of such obligation, or taking of such action shall not be a waiver by Bit Digital of any default
or Event of Default or a release of Boosteroid by Bit Digital. Boosteroid shall pay immediately on demand to Bit Digital all sums so paid
by Bit Digital any expenses (including legal fees and costs) incurred by Bit Digital in connection with Bit Digital's payment, performance
of such obligation, or taking of such action.

12. RETURN OF EQUIPMENT.

12.1 With respect to Equipment that is not sold, assigned, conveyed, or transferred to Boosteroid by Bit Digital
pursuant to Section 2.7 above, if any, promptly following the expiration or termination of this MSLA or Purchase Order, as relevant, but
in no event later than thirty (30) days after such expiration or termination (the "**Return Date** "), Boosteroid shall,
at its sole expense and risk, return such Equipment to a location designated by Bit Digital in Bit Digital's sole discretion ()"**Returned Equipment** ").

12.2 Boosteroid shall cause any Returned Equipment under this MSLA and any relevant Purchase Order to be in
at least as good condition as when picked up at the Pickup Location, including without limitation the removal of any marks that Boosteroid
is permitted to apply to the Equipment under Section 7.1, complete with all parts, and in compliance with Applicable Law. The condition
of all parts on the return of any Returned Equipment shall be at least as good as when the Returned Equipment was picked up at the Pickup
Location. Any repairs to such parts necessary on return to restore them to a condition as good as when such Returned Equipment was picked
up at the Pickup Location, and any replacement of such parts required on return by their unfitness for use or damage beyond repair, shall
be at Boosteroid's sole expense. Any repairs to any Returned Equipment on return because of damage to such Returned Equipment while
in Boosteroid's possession shall be at Boosteroid's sole expense.

12.3 Upon the return of any Returned Equipment under this MSLA and any relevant Purchase Order, Boosteroid
shall deliver or cause to be delivered to Bit Digital all records relating to the operation and maintenance of the Returned Equipment,
including all maintenance records, logs, certificates, and date in Boosteroid's possession or required to be maintained by Applicable
Law.

12.4 Boosteroid shall, at its expense, with Bit Digital's prior written request, which may be held at
Bit Digital's sole discretion, store any Returned Equipment under this MSLA and any relevant Purchase Order for a reasonable period
either at the location for such Returned Equipment specified in the relevant Purchase Order or at another facility selected by Boosteroid
and used as a location for the storage of similar equipment, in either case, subject to the prior written consent of Bit Digital. During
the storage period, Boosteroid shall comply with all of the terms and conditions hereof, except for the obligation to make payments of
Lease Fees.

12.5 If by the Return Date Boosteroid has not returned the Returned Equipment required to be returned pursuant
to Section 12.1 herein in the condition required by and in accordance with the terms and conditions of this MSLA and any relevant Purchase
Order, Boosteroid shall continue to comply with all the terms and conditions of this MSLA and relevant Purchase Order with respect to
such Returned Equipment, including, without limitation, the obligation to pay Lease Fees on a prorated daily basis for each day from the
Return Date for such Returned Equipment until the date on which Boosteroid returns such Returned Equipment to Bit Digital in the manner
required under this MSLA and relevant Purchase Order ()"**Holdover Rent** "). Nothing contained in this Section 12.5, including
Boosteroid's payment of Holdover Rent, shall (a) constitute a waiver of Boosteroid's failure to perform any obligation under
this MSLA and relevant Purchase Order; or (b) give Boosteroid the right to retain possession of any unit of Returned Equipment after the
Return Date.

13. INDEMNIFICATION.

13.1 <u>Indemnification</u>. Except as otherwise expressly provided hereunder, Boosteroid agrees to indemnify,
defend, and hold harmless Bit Digital and its Affiliates, and their respective employees, officers, directors, advisors, counsel, and
other representatives (collectively, the "**Bit Digital Indemnified Parties**") from and against any and all losses, costs,
expenses (including reasonable legal fees and expenses such as for attorneys, experts, and consultants, and reasonable out-of- pocket
costs), damages, or liabilities suffered or incurred by any Bit Digital Indemnified Party in connection with: (a) Boosteroid's material
breach of this MSLA or Applicable Law; (b) Boosteroid's breach of a third party's Intellectual Property Rights in respect
of its performance under this MSLA or any Purchase Order; or (c) Boosteroid's fraud, gross negligence, or willful misconduct in
the performance of obligations set forth in this MSLA.

13.2 <u>Other Remedies</u>. The remedies in this Section 13 are not exclusive and do not limit the remedies
provided elsewhere in this MSLA, a Purchase Order, or under Applicable Law.

14. CONFIDENTIALITY.

14.1 <u>Definition of Confidential Information</u>.
 A Party (each a "**Disclosing Party**") may disclose information, directly
 or indirectly, to the other Party (each a "**Receiving Party** "), and such
 information will be deemed to be "**Confidential Information**" if when it
 is disclosed, regardless of the form or medium (whether in writing, verbally, electronically,
 or otherwise), it is designated as confidential by the Disclosing Party or reasonably should
 be understood as confidential. Confidential Information includes information such as a Party's
 product designs, business affairs, vendors, trade secrets, third-party confidential information,
 product plans, software, Technology, financial information, marketing plans, business opportunities,
 pricing information, inventions, and know-how. All non-public Bit Digital Technology, Bit
 Digital Data, will be deemed to be Bit Digital's Confidential Information. Notwithstanding
 the foregoing, general information about this MSLA may be shared by Bit Digital to the general
 public in the form of press releases or similar statements.

14.2 <u>Use and Disclosure of Confidential Information</u>. A Receiving Party will only use the Confidential
Information of a Disclosing Party as required to perform its obligations and exercise its rights under this MSLA or a Purchase Order,
and as set forth in <u>Section 14.3</u>. A Receiving Party will hold the Confidential Information it receives in strict confidence and
take appropriate precautions to protect such Confidential Information (such precautions to include, at a minimum, all precautions such
Receiving Party employs with respect to its own Confidential Information). A Receiving Party will not disclose the other Party's
Confidential Information to anyone other than to its Affiliates and its and their Representatives, subject to the following conditions:
any such Affiliate or Representative who receives Confidential Information in accordance with the foregoing must (a) have a "need
to know" such Confidential Information for the purposes of the Receiving Party exercising its rights or performing its obligations
under this MSLA or a Purchase Order, and (b) be subject to confidentiality obligations that offer at least the same degree of protection
as the confidentiality obligations set out in this MSLA or the Purchase Order (as the case may be). A Receiving Party making such disclosures
will be liable for each such Affiliate's or Representative's retention, use, and disclosure of the Disclosing Party's
Confidential Information. A Receiving Party will treat all Confidential Information disclosed by a Disclosing Party, its Affiliates, and
their respective Representatives who are disclosing Confidential Information on their behalf in connection with the Services, as the Disclosing
Party's own Confidential Information.

14.3 <u>Disclosures to Governmental Authorities</u>. A Receiving Party may disclose the existence of this MSLA
or a Purchase Order and their respective key terms pursuant to a regulatory filing to a Governmental Authority. In addition, if a Governmental
Authority or Applicable Law requires a Receiving Party to disclose the Confidential Information of a Disclosing Party, the Receiving Party
will: (a) immediately notify the Disclosing Party after learning of the existence or likely existence of such requirement (unless prohibited
by Applicable Law or otherwise subject to attorney-client privilege); (b) limit the scope of such disclosure to only the Confidential
Information necessary to comply with the requirement; (c) make reasonable efforts to obtain confidential treatment of or protection by
order of any Confidential Information; and (iv) permit, subject to Applicable Law, the Disclosing Party to seek a protective order or
to otherwise challenge or limit the disclosure of the Confidential Information prior to the disclosure thereof.

14.4 <u>Residuals</u>. Notwithstanding anything to the contrary in this MSLA or any Purchase Orders regarding
Confidential Information, neither the Bit Digital nor its Affiliates (including its employees, subcontractors, consultants, and agents)
shall be prohibited or enjoined from utilizing general knowledge, skills and experience, concepts, know-how and techniques retained in
the unaided memory of an individual and acquired as a result of such individual's authorized access to Boosteroid's Confidential Information
during the course of the performance or receipt of the Services ()"**Residuals** ").

14.5 <u>Feedback</u>. A Party or any one of its respective Affiliates may, but is not required to, provide
the other Party or its Affiliates with suggestions, comments, ideas, or know-how, in any form, that are related to such Party's
or its Affiliates' respective products, services, or Technology ()"**Feedback** "). Any such Feedback will not be considered
Confidential Information. Neither Party nor any of its Affiliates will have any obligation to provide compensation for any use of Feedback.
Each Party hereby grants to the other Party, on such Party's and its Affiliates' behalf, and on behalf of its and their employees,
contractors, and agents, a non-exclusive, perpetual, irrevocable, worldwide, royalty-free, sublicensable (through multiple tiers) right
and license to use, copy, incorporate, reduce to practice, and create derivative works from Feedback
provided by such Party, its Affiliates, or its or their respective employees, contractors, or agents.

15. RIGHT OF FIRST REFUSAL.

15.1 **Right of First Refusal**. During the MSLA Term (the "**ROFR Period** "), Boosteroid
hereby grants to Bit Digital, in respect of the next five thousand (5,000) servers that Boosteroid leases (or the equivalent), directly
or indirectly, through an affiliate or otherwise, following the MSLA Effective Date (excluding Equipment leased under the first Purchase
Order under this MSLA), a right of first refusal to any lease of such servers (a "**Covered Transaction** ").

15.2 **Boosteroid Offer Notice and Acceptance**. During the ROFR Period, Boosteroid must first offer to
Bit Digital to enter into the Covered Transaction by offering to Bit Digital the terms upon which Boosteroid would enter into such Covered
Transaction ()"**Offer** "). Bit Digital shall have fourteen (14) days to accept or reject such Offer.
If Bit Digital accepts such Offer, the Parties shall enter into definitive documentation in respect of such Offer. If Bit Digital rejects
such Offer, Boosteroid may make such Offer to a third party on term no less favorable to Boosteroid than in the Offer. If Boosteroid does
not consummate a leasing arrangement with such third party on terms consistent with the prior sentence within sixty (60) days after the
expiration of Bit Digital's fourteen (14) day response period, Bit Digital's right of first refusal shall be reinstated in
full force an effect.

15.3 **Third Party Offer Notice and Acceptance**. During the ROFR Period, Boosteroid must, if it receives
an offer to obtain a lease of servers from a third party ()"**Third Party Offer** "), promptly submit such Third Party Offer
to Bit Digital and cease negotiation or communication with such third party while Bit Digital reviews such Third Party Offer. Bit Digital
shall have fourteen (14) days to evaluate such Third Party Offer, and accept or reject it. If Bit Digital accepts such Third Party Offer,
the Parties shall enter into definitive documentation in respect of such Third Party Offer. If Bit Digital rejects such Third Party Offer,
Boosteroid may accept such Third Party Offer with the third party on term no less favorable to Boosteroid than in the Third Party Offer.
If Boosteroid does not consummate a leasing arrangement with such third party on terms consistent with the prior sentence within sixty
(60) days after the expiration of Bit Digital's fourteen (14) day response period, Bit Digital's right of first refusal shall
be reinstated in full force an effect.

15.4 **New Offer Notice and Acceptance**. To the extent Boosteroid wishes to enter into a Covered Transaction
on terms different from an Offer or Third Party Offer presented to Bit Digital (a "**New Offer** "), it shall promptly provide
such New Offer to Bit Digital, and Bit Digital shall have fourteen (14) days to evaluate such New Offer.
If Bit Digital accepts such New Offer, the Parties shall enter into definitive documentation in respect of such New Offer. If Bit Digital
rejects such New Offer, Boosteroid may execute a Covered Transaction with a third party on terms of the New Offer no less favorable to
Boosteroid than in the New Offer. If Boosteroid does not consummate a leasing arrangement with a third party on terms consistent with
the prior sentence within sixty (60) days after the expiration of Bit Digital's
fourteen (14) day response period, Bit Digital's right of first refusal shall be reinstated in full force
an effect.

16. GENERAL.

16.1 <u>Equipment Access Agreement</u>. Bit Digital and Boosteroid shall entered into an Equipment Access Agreement
with each Data Center in respect of any Equipment delivered to or located or operated within the Premises of such Data Center prior to
execution of any respective Purchase Order unless such requirement is waived or delayed by Bit Digital in writing.

16.2 <u>Governing Law; Jurisdiction; Venue</u>. This MSLA and the Purchase Orders shall be governed by and
construed in accordance with the laws of the State of New York, without giving effect to any choice or conflict of law provision or rule
that would cause the application of laws of any jurisdiction other than those of State of New York. The Parties will make a good-faith
effort to settle between themselves any claim, dispute, or controversy (each, a "**Dispute**") arising out of or in connection
with this MSLA or any Purchase Order. If any Dispute cannot be settled within thirty (30) days after notice of such Dispute
is provided by one Party to the other Party, such Dispute shall be finally settled under the Rules of Arbitration of the International
Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules. The Parties further agree, pursuant to Article
30(2)(b) of the Rules of Arbitration of the International Chamber of Commerce, that the Expedited Procedure Rules shall apply, provided
the amount in dispute does not exceed $75,000 at the time of the communication
referred to in Article 1(3) of the Expedited Procedure Rules. Any arbitration or other action or proceeding brought under this MSLA shall
be conducted in New York City, in English.

16.3 <u>Assignment</u>. This MSLA and the Purchase Orders will each bind and inure to the benefit of each of
its respective Parties and their permitted successors and assigns. Boosteroid may not, in whole or in part, assign or novate this MSLA
or the Purchase Order (as the case may be), without the prior written consent of the Bit Digital. Bit Digital may assign or novate this
MSLA, in whole or in part, to (1) Bit Digital Affiliates or (2) banks or other capital providers in connection with a financing; provided,
that, Bit Digital may not assign or novate this MSLA, in whole or in part, during the first year following the MSLA Effective Date without
the prior written approval of Boosteroid. Bit Digital will notify Boosteroid before any such assignment/novation occurs. Except as expressly
authorized under this <u>Section 16.3</u>, any attempt by Boosteroid to transfer or assign or novate this MSLA or any Purchase Order will
be null and void.

16.4 <u>Notices</u>. Except as otherwise expressly set forth in this MSLA or a Purchase Order, any notice required
under this MSLA or a Purchase Order will be in writing delivered to the applicable address below and will be deemed given: (a) upon receipt
when delivered personally; (b) two (2) days (other than weekends or public holidays) after it is sent if sent by certified or registered
mail (return receipt requested); (c) one (1) day (other than weekends or public holidays) after it is sent if by next day delivery by
a major commercial delivery service; or (d) the next business day upon electronic delivery by email.

---

| | |
|:---|:---|
| **Bit Digital:** | **Boosteroid:** |
| **Bit Digital HPC, Inc.** | Boosteroid Inc |
| 33 Irving Place 2nd Floor | 5900 Balcones Drive, STE 100 |
| New York, NY 10003 | Austin, TX, 78731 |
| United States | USA |
| Email: erkeh@bit-digital.com | Email: legal@boosteroid.com |

---

With a copy to (which copy shall not constitute notice): Pratin Vallabhaneni <br> White & Case LLP 1221 Avenue of the Americas <br> New York, NY 10020<br> prat.vallabhaneni@whitecase.com With a copy to (which copy shall not constitute notice):

16.5 <u>Amendments</u>. No supplement, modification, or amendment of this MSLA or any
Purchase Order will be binding unless executed in writing by a duly authorized signatory of each Party. A valid amendment of this MSLA
will be deemed to automatically amend and will be binding upon each Party that is a signatory to a Purchase Order.

16.6 <u>Waivers</u>. No waiver will be implied from conduct or failure to enforce or
exercise rights under this MSLA or any Purchase Order, nor will any waiver be effective, unless in writing signed by a duly authorized
signatory on behalf of the Party claimed to have waived such rights.

16.7 <u>Publicity</u>. The Bit Digital may (a) publicly disclose that Boosteroid is
a Boosteroid of Bit Digital under this MSLA and associated Purchase Orders, (b) generally describe the Lease in any such disclosure; and
(c) use Boosteroid's trademarks, service marks, and trade names in respect of such disclosure after Boosteroid's prior approval
of such use.

16.8 <u>Compliance</u>. From time to time during the Term, Bit Digital may request
due diligence information from Boosteroid in order to analyze Boosteroid's and Bit Digital's compliance with Applicable Laws
including, but not limited to, export controls, sanctions, and anti-money laundering laws. Boosteroid shall provide full and accurate
information in response to such requests without material omission and represents and warrants by virtue of submission of such information
as to the accuracy of such information. Bit Digital shall be able to rely on all such information provided to it by Boosteroid. Boosteroid's
failure to provide requested information shall be a material breach of this MSLA.

16.9 <u>Entire Agreement</u>. This MSLA (including all exhibits) is the complete and
exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous written and oral agreements and
communications, relating to the subject matter of this MSLA including, but not limited to, term sheets, non-disclosure agreements, pricing
proposals, transaction overviews, pricing models, and the like. Each Purchase Order (including any exhibits and appendices) is the complete
and exclusive statement of the mutual understanding of the Parties with respect to the Services provided thereunder and supersedes and
cancels all previous written and oral agreements and communications, relating to the subject matter of the Purchase Order.

16.10 <u>Independent Contractors</u>. The Parties are independent contractors. There is
no relationship of partnership, joint venture, employment, franchise or agency created between the Parties. Unless otherwise specified
herein, neither Party will have the right to create any obligation or duty, express or implied, on behalf of the other Party.

16.11 <u>Non-Solicit</u>. During the MSLA Term and for one year thereafter, Boosteroid will not, either directly
or indirectly, on its own behalf or on behalf of its Affiliates or others, solicit, divert, hire away, or engage with, or attempt to solicit,
divert, hire away or engage with any then-current employee or vendors, contractors, clients, or suppliers of the Bit Digital or its Affiliates.
Notwithstanding the foregoing, it is understood that
this non-solicitation provision shall not prohibit: (a) solicitation of any employee who contacts Boosteroid on his or her own initiative
without any solicitation by or encouragement from Boosteroid; (b) generalized solicitations by advertising and the like which are not
directed to specific employees of the Bit Digital; (c) solicitations of employees whose employment was previously terminated by the Bit
Digital; (d) solicitations of employees who have terminated their employment with the Bit Digital without any prior solicitation by Boosteroid;
or (e) with Bit Digital's prior written consent, engagement with a Bit Digital vendor, contractor, client, or supplier.

16.12 <u>Remedies</u>. Unless expressly set forth otherwise in this MSLA or a Purchase Order, any and all remedies
expressly conferred upon a Party are cumulative with and not exclusive of any other remedy conferred by this MSLA or the Purchase Order
or by law on that Party, and the exercise of any one remedy does not preclude the exercise of any other available remedy.

16.13 <u>Counterparts; Execution</u>. This MSLA and each Purchase Order may be executed
in one or more counterparts, each of which will be considered an original, but all of which together will constitute one agreement. This
MSLA and each Purchase Order may also be executed by electronic signature, and the Parties agree that facsimile, digitally scanned or
other electronic copies of signatures shall be valid and binding as originals.

16.14 <u>Severability</u>. Any provision of this MSLA or a Purchase Order that is invalid,
prohibited, or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability,
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction will not invalidate
or render unenforceable such provision in any other jurisdiction.

16.15 <u>Third-Party Rights</u>. Except as expressly set forth in this MSLA or a Purchase
Order, only the Parties to this MSLA have any right to enforce any term of this MSLA.

16.16 <u>Construction</u>. Captions are for convenience only and do not constitute a
limitation of the terms hereof. The singular includes the plural, and the plural includes the singular. References to "herein,"
"hereunder," "hereinabove," or like words will refer to this MSLA or a Purchase Order as a whole and not to any
particular section, subsection, or clause contained in this MSLA or the Purchase Order. The terms "include" and "including"
are not limiting and are deemed to be followed by the words "without limitation". Reference to any agreement or document includes
any permitted modifications, supplements, amendments and replacements thereto. References to "day" refer to a calendar day,
unless otherwise expressly stated. All references to "$" or "dollars" refer to United States Dollars.

 

*[SIGNATURE PAGE FOLLOWS]*

By signing below, each Party acknowledges that it has read, and agrees to, all the terms of this MSLA.

**BIT DIGITAL HPC, INC.**

---

| | |
|:---|:---|
| **Signature:** | /s/ Erke Huang |
| **Name:** | Erke Huang |
| **Title:** | Chairman |

---

**BOOSTEROID INC**

---

| | |
|:---|:---|
| **Signature:** | /s/ Ivan Shvaichenko |
| **Name:** | Ivan Shvaichenko |
| **Title:** | CEO |

---

*Signature Page to MSLA*

 

**Exhibit A**

**<u>DEFINITIONS</u>**

"**Affiliate**" means, with respect to a specified Entity, any other Entity that directly or indirectly controls, is controlled by, or is under common control with such specified Entity. For the purposes of this definition, "control" means the possession, directly or indirectly, of the power to independently direct or cause the direction of the management and policies of an Entity, whether through ownership of more than fifty percent (50%) of the stock or other equity interests entitled to vote for representation on its board of directors, or body performing similar functions, by contract, law or otherwise.

"**Applicable Law**" means, with respect to a specified Entity, each of the following, whether existing now or in the future, including any updates thereto, that are applicable to such Entity: (a) the rules, requirements, or operational and technical standards of any relevant self-regulatory organization having jurisdiction or oversight over the Services; and (b) all laws, treaties, rules, regulations, regulatory guidance, directives, policies, orders, or determinations of, or mandatory written direction from or agreements with, any Governmental Authority, including trade control laws, export laws, sanctions regulations, statutes, or regulations, relating to stored value, money transmission, unclaimed property, payment processing, telecommunications, unfair or deceptive trade practices or acts, anti-corruption, export controls, trade compliance, anti-money laundering, terrorist financing, "know your Boosteroid," privacy, or data security.

"**Background IP**" has the meaning set forth in <u>Section 4.2 (License to Bit Digital Background IP)</u> of this MSLA.

"**Bit Digital**" has the meaning set forth in the preamble of this MSLA.

"**Bit Digital Data**" means all data relating to Bit Digital and any other data as specified by Bit Digital in writing.

"**Bit Digital Technology**" means Technology that Bit Digital provides, makes available, or uses in connection with the Lease.

"**Confidential Information**" has the meaning set forth in <u>Section 14.1</u> (<u>Definition of Confidential Information</u>) of this MSLA.

"**Data Center**" means an Entity that hosts Boosteroid operations in respect of Bit Digital Equipment. "**Deliverables**" means software, documents, data, and other materials delivered to Boosteroid by or on behalf of Bit Digital in the course of the Lease.

"**Disclosing Party**" has the meaning set forth in <u>Section 14.1</u> (<u>Definition of Confidential Information</u>) of this MSLA.

"**Entity**" means an individual, corporation, firm, limited liability Bit Digital, partnership, joint venture, trust, unincorporated organization, estate, association, Governmental Authority, or other entity or organization, whether or not a legal entity.

"**Equipment**" means that equipment described in a Purchase Order as context requires.

"**Equipment Access Agreement**" means that certain Equipment Access Agreement by and among Bit Digital, Boosteroid, and a Data Center that hosts Boosteroid operations in respect of the Equipment that, among other items, grants Bit Digital access to the Equipment and obligates a respective Data Center to perform certain actions to ensure the safekeeping of the Equipment, in each case, as reasonably specified by Bit Digital.

Exhibit A

"**Feedback**" has the meaning set forth in <u>Section 14.5</u> (<u>Feedback</u>) of this MSLA.

"**Governmental Authority**" means any duly authorized federal, national, supranational, intergovernmental, state, provincial, local, or other government, governmental, regulatory, or administrative authority, self-regulatory authority, governmental agency, bureau, office or commission, or any court, tribunal, or judicial or arbitral body, of competent jurisdiction.

"**Boosteroid**" has the meaning set forth in the preamble of this MSLA.

"**Initial Term**" has the meaning set forth in <u>Section 5.1</u> (<u>Term</u>) of this MSLA.

"**Intellectual Property Rights**" means any and all right, title, and interest in and to any and all trade secrets, patents, copyrights, service marks, trademarks, know-how, inventions, techniques, processes, devices, discoveries or improvements, trade names, rights in trade dress and packaging, moral rights, and similar rights of any type, including any applications, continuations or other registrations with respect to any of the foregoing, under the laws or regulations of any foreign or domestic governmental, regulatory, or judicial authority.

"**Lease Fees**" has the meaning set forth in <u>Section 3.1</u> (<u>Lease Fees</u>) of this MSLA.

"**Lease**" has the meaning set forth in <u>Section 1.1 (Purchase Orders)</u> of this MSLA.

"**Lease Premium**" means, for any Purchase Order, the Lease Value minus the aggregate Purchase Price of all Equipment under such Purchase Order.

"**Lease Value**" means the total value of a Purchase Order measured by fees to be paid to Bit Digital thereunder.

"**MSLA Term**" has the meaning set forth in <u>Section 5.1</u> (<u>Term</u>) of this MSLA.

"**Non-Purchase Price Costs**" means those costs, including all out-of-pocket costs, other than the purchase price of the Equipment, that Bit Digital incurs in respect of the acquisition of the Equipment, including taxes, legal fees, and other transactional costs.

"**Party**" or "**Parties**" have the meaning set forth in the preamble of this MSLA.

"**Premises**" means that data center location at which Bit Digital provides services to Client.

"**Purchase Price**" means the price Bit Digital, or an affiliate, has paid for Equipment.

"**Purchase Order**" has the meaning set forth in <u>Section 1.1</u> (<u>Purchase Orders)</u> of this MSLA.

"**Purchase Order Term**" has the meaning set forth in <u>Section 5.2</u> (<u>Purchase Order Term</u>) of this MSLA.

"**Receiving Party**" has the meaning set forth in <u>Section 14.1</u> (<u>Definition of Confidential Information</u>) of this MSLA.

"**Renewal Term**" has the meaning set forth in <u>Section 5.1</u> (<u>Term</u>) of this MSLA.

"**Representative**" means, with respect to a specified Entity, any of its directors, officers, employees, agents, consultants, contractors, subcontractors, service providers, advisors, accountants, attorneys, or other representatives.

"**Residuals**" has the meaning set forth in <u>Section 14.4</u> (<u>Residuals</u>) of this MSLA.

"**Taxes**" has the meaning set forth in <u>Section 3.4</u> (<u>Taxes</u>) of this MSLA.

"**Technology**" means data processing platforms, application applications, technical integrations, or technology necessary for the Lease, and any updates or modifications to, and documentation (*e.g.*, instructional materials) related to, any of the foregoing.

"**UCC**" means the Uniform Commercial Code as adopted in the State or New York or other jurisdiction as context requires.

Exhibit A

**Exhibit B**

**<u>Form of Purchase Order</u>**

Reference is made to that certain Master Services and Lease Agreement ("**MSLA**") entered into by Bit Digital HPC, Inc., a Delaware corporation ("**Bit Digital**"), and Boosteroid Inc, a Texas corporation ("**Boosteroid**"), effective as of October 9, 2024. Capitalized but undefined terms in this Purchase Order have the meanings given to them in the MSLA.

**Purchase Order No.:**

**Purchase Order Date:**

**Lease:**

**Equipment:**

**Installation and Set-up: Reference MSLA Date:**

**Lease Start Date:**

**Purchase Order Term:**

**Lease Fee:**

**Data Centers and Locations:**

**Maintenance Fees and Operating Costs:**

**Fleet Management Costs:**

**Shipping and Logistics Costs:**

**Data Center Costs:**

[*Signature Page Follows*]

Exhibit B

By signing below, each party acknowledges that it has read, and agrees to, all the terms of this Purchase Order.

---

| | |
|:---|:---|
| **BIT DIGITAL HPC, INC.** | **BIT DIGITAL HPC, INC.** |
| **Signature:** |  |
| **Name:** | Erke Huang |
| **Title:** | Chairman |
| **BOOSTEROID INC** | **BOOSTEROID INC** |
| **Signature:** |  |
| **Name:** | Ivan Shvaichenko |
| **Title:** | CEO |

---

Exhibit B

**Exhibit C**

**<u>Equipment Bill of Sale</u>**

This Equipment Bill of Sale (this "**Bill of Sale**") is hereby entered into by Bit Digital HPC, Inc., a Delaware corporation ("**Seller**"), in favor of Boosteroid Inc., a Texas corporation ("Buyer"), and is effective as of [DATE]. This Bill of Sale is made pursuant and subject to that certain Master Services and Lease Agreement ("**Agreement**"), dated as of October 9, 2024, by and between Seller and Buyer, to transfer the Sold Equipment, as hereinafter defined. Capitalized terms that are used but not defined in this Bill of Sale have the meaning set forth in the Agreement.

**1. <u>Conveyance</u>**. In consideration of the covenant and agreements set forth herein and in the Agreement and of the payment to Seller as agreed by the Parties of ten U.S. dollars ($10.00) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller hereby sells, assigns, transfers, conveys, grants, bargains, and delivers to Buyer all of its right, title, and interest in and to the Sold Equipment described on Exhibit A attached to and made a part of this Bill of Sale (the "**Sold Equipment**").

**2. <u>Representations and Warranties</u>. SELLER AND BUYER AGREE THAT THE SOLD EQUIPMENT IS SOLD BY SELLER AND PURCHASED BY BUYER "AS IS, WHERE IS" AND WITH ALL FAULTS AND SELLER MAKES NO AND HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT TO THE SOLD EQUIPMENT, INCLUDING ANY (A) WARRANTY OF MERCHANTABILITY; (B) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (C) WARRANTY OF TITLE; OR (D) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY, WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, OR OTHERWISE. BUYER ACKNOWLEDGES, BY ACCEPTING THIS BILL OF SALE, THAT BUYER HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY SELLER OR ANY OTHER PERSON ON SELLER'S BEHALF.**

**3. <u>Further Assurances</u>.** Each Party shall, from time to time at the other Party's commercially reasonable request, furnish to the other Party such further information or assurances; execute and deliver such additional documents and instruments; and take such other actions and do such other things, as may be reasonably necessary to carry out the provisions of this Bill of Sale and give effect to the transactions contemplated hereby.

**4. <u>Governing Law; Jurisdiction; Venue</u>.** This Bill of Sale shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice or conflict of law provision or rule that would cause the application of laws of any jurisdiction other than those of State of New York. The Parties will make a good-faith effort to settle between themselves any claim, dispute, or controversy (each, a "**Dispute**") arising out of or in connection with this Bill of Sale. If any Dispute cannot be settled within thirty (30) days after notice of such Dispute is provided by one Party to the other Party, such Dispute shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules. The Parties further agree, pursuant to Article 30(2)(b) of the Rules of Arbitration of the International Chamber of Commerce, that the Expedited Procedure Rules shall apply, provided the amount in dispute does not exceed $75,000 at the time of the communication referred to in Article 1(3) of the Expedited Procedure Rules. Any arbitration or other action or proceeding brought under this MSLA shall be conducted in New York City, in English.

**5. <u>Incorporation of Agreement</u>.** This Bill of Sale incorporates by reference all of the terms of the Agreement, as if each term was fully set forth herein, and in the event of conflict between the terms of the Agreement and the terms of this Bill of Sale, the terms of the Agreement govern and control.

**6. <u>Counterparts; Execution</u>.** This Bill of Sale may be executed in one or more counterparts, each of which will be considered an original, but all of which together will constitute one agreement. This Bill of Sale may also be executed by electronic signature, and the Parties agree that facsimile, digitally scanned or other electronic copies of signatures shall be valid and binding as originals.

**[remainder of page intentionally left blank]**

*Exhibit C*

By signing below, each Party acknowledges that it has read, and agrees to, all the terms of this MSLA.

---

| | |
|:---|:---|
| **BIT DIGITAL HPC, INC.** | **BIT DIGITAL HPC, INC.** |
| **Signature:** |  |
| **Name:** | Erke Huang |
| **Title:** | Chairman |
| **BOOSTEROID INC** | **BOOSTEROID INC** |
| **Signature:** |  |
| **Name:** | Ivan Shvaichenko |
| **Title:** | CEO |

---

*Exhibit C*

**Exhibit A**

**DESCRIPTION OF THE SOLD EQUIPEMENT**

Exhibit C

## Exhibit 21.1

**Exhibit 21.1**

**<u>Subsidiaries</u>**

---

| | | |
|:---|:---|:---|
| Name | Jurisdiction | Ownership |
| WhiteFiber, AI, Inc. | Delaware | 100% |
| WhiteFiber Iceland ehf | Iceland | 100% |
| WhiteFiber HPC, Inc | Delaware | 100% |
| Enovum Data Centers Corp. | Quebec, Canada | 100% |

---

## Exhibit 23.1

**Exhibit 23.1**

---

| | | |
|:---|:---|:---|
| ![](ex23-1_001.jpg) | AUDIT ALLIANCE LLP**®** | ![](ex23-1_002.jpg) |
|  | A Top 18 Audit Firm<br> 10 Anson Road, #20-16 International Plaza, Singapore 079903. |  |

---

UEN: T12LL1223B GST Reg No : M90367663E

Tel: (65) 6227 5428 10

Anson Road #20-16 International Plaza Singapore 079903

Website : www.allianceaudit.com

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the inclusion in this Registration Statement on Form S-1 of our report dated May 5, 2025, relating to the combined balance sheets of the WhiteFiber Business of Bit Digital as of December 31, 2024 and 2023, the related combined statements of operations, shareholders' equity, and cash flows for the year ended December 31, 2024 and for the period from October 19, 2023 to December 31, 2023, and the related notes to the combined financial statements and schedules. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Audit Alliance LLP

Singapore

July 11, 2025

Registered Office: 10 Anson Road #20-16 International Plaza Singapore 079903

## Exhibit 23.2

**Exhibit 23.2**

---

| | | |
|:---|:---|:---|
| ![](ex23-2_001.jpg) | AUDIT ALLIANCE LLP**®** | ![](ex23-2_002.jpg) |
|  | A Top 18 Audit Firm<br> 10 Anson Road, #20-16 International Plaza, Singapore 079903. |  |

---

UEN: T12LL1223B GST Reg No : M90367663E

Tel: (65) 6227 5428 10

Anson Road #20-16 International Plaza Singapore 079903

Website : www.allianceaudit.com

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the inclusion in this Registration Statement on Form S-1 of our report dated May 5, 2025, relating to the consolidated balance sheet of Enovum Data Centers Corp. as of September 30, 2024, the related consolidated statements of operations, shareholders' equity, and cash flows for the period from January 1, 2024 to September 30, 2024, and the related notes to the consolidated financial statements and schedules. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Audit Alliance LLP

Singapore

July 11, 2025

Registered Office: 10 Anson Road #20-16 International Plaza Singapore 079903

## Exhibit 99.1

**Exhibit 99.1**

**Consent to be Named as a Director Nominee**

In connection with the filing by White Fiber, Inc. of the Registration Statement on Form S-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of WhiteFiber, Inc. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

Dated: April 18, 2025

---

| |
|:---|
| /s/ David Andre |
| David Andre |

---

## Exhibit 99.2

**Exhibit 99.2**

**Enovum Data Centers Corp.**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Public Accounting Firm (PCAOB ID # 3487)](#f_001) | F-2 |
| [Balance Sheet as of September 30, 2024](#f_002) | F-3 |
| [Statement of Operations and Comprehensive Income for the period ended September 30, 2024](#f_003) | F-4 |
| [Statement of Shareholders' Equity for the period ended September 30, 2024](#f_004) | F-5 |
| [Statement of Cash Flows for the period ended September 30, 2024](#f_005) | F-6 |
| [Notes to Financial Statements](#f_006) | F-7 |

---

**REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM**

To the shareholders and board of directors of Enovum Data Centers Corp.:

***Opinion on the Financial Statements***

We have audited the accompanying balance sheet of Enovum Data Centers Corp. as of September 30, 2024, the related statements of operations and comprehensive income, shareholders' equity, and cash flows for the period from January 1, 2024 to September 30, 2024, and the related notes to the financial statements and schedules (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024, and the results of its operations and its cash flows for the period from January 1, 2024 to September 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the 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 financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Audit Alliance LLP

Singapore

May 5, 2025

PCAOB ID No. 3487

We have served as the Company's auditor since 2024.

**ENOVUM DATA CENTERS CORP.**

**BALANCE SHEET**

**As of September 30, 2024**

**(Expressed in US dollars, except for the number of shares)**

---

| | |
|:---|:---|
|  | **September 30,**<br>**2024** |
| **ASSETS** |  |
| **Current Assets** |  |
| **Accounts receivable** | $644579 |
| **Sales taxes recoverable** | 492072 |
| **Due from a related party** | 27028 |
| **Prepaid expenses and deposits** | 145047 |
| **Total Current Assets** | **1308726** |
| **Non-Current Assets** |  |
| **Property, plant, and equipment, net** | 12164794 |
| **Intangible Assets** | 274696 |
| **Operating lease right-of-use assets** | 3341816 |
| **Finance lease right-of-use assets** | 2185378 |
| **Deferred tax asset** | 15850 |
| **Total Non-Current Assets** | **17982534** |
| **Total Assets** | $**19291260** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |
| **Current Liabilities** |  |
| **Bank indebtedness** | $559373 |
| **Accounts payable** | 1848254 |
| **Current portion of deferred revenue** | 176192 |
| **Current portion of operating lease liability** | 18474 |
| **Current portion of financing lease liability** | 267750 |
| **Current portion of long-term debt** | 68761 |
| **Other payables and accrued liabilities** | 493080 |
| **Class "D" preferred shares** | 902191 |
| **Total Current Liabilities** | **4334075** |
| **Non-Current Liabilities** |  |
| **Non-current portion of unearned revenues** | 412998 |
| **Non-current portion of deferred revenue** | 115543 |
| **Non-current portion of operating lease liability** | 3613390 |
| **Non-current portion of finance lease liability** | 72653 |
| **Non-current portion of long-term debt** | 5070229 |
| **Notes payable, shareholders'** | 3594896 |
| **Total Non-Current Liabilities** | **12879709** |
| **Total Liabilities** | **17213784** |
| **Commitments and Contingencies** |  |
| **Shareholders' Equity** |  |
| **Common shares, $0.000007 par value, 9,621,000 shares authorized, and 9,621,000 shares issued and outstanding of September 30, 2024** | 71 |
| **Class "E" shares, $0.7264 par value, 3,000,000 shares authorized, 3,000,000 shares issued, as of September 30, 2024** | 2179200 |
| **Class "F" shares, $0.000007 par value, 6,621,000 shares authorized, 6,621,000 shares issued, as of September 30, 2024** | 48 |
| **Class "P" shares, $0.7264 par value, 6 shares authorized, 25 shares issued, as of September 30, 2024** | 18 |
| **Accumulated deficit** | (142759) |
| **Accumulated other comprehensive income** | 40898 |
| **Total Shareholders' Equity** | **2077476** |
| **Total Liabilities and Shareholders' Equity** | $**19291260** |

---

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

**ENOVUM DATA CENTERS CORP.**

**STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME**

**For the Period Ended September 30, 2024**

**(Expressed in US dollars, except for the number of shares)**

---

| | |
|:---|:---|
| **Revenues** | |
| **Revenue - colocation services** | $3358022 |
| **Total Revenues** | $3358022 |
| **Operating costs and expenses** |  |
| **Cost of revenues (exclusive of depreciation shown below)** |  |
| **Cost of revenue - colocation services** | 1262043 |
| **Depreciation and amortization expenses** | 789172 |
| **General and administrative expenses** | 1021355 |
| **Total operating expenses** | **3072570** |
| **Income from operations** | **285452** |
| **Financial expenses** | (323433) |
| **Total other expense, net** | **(323433)** |
| **Loss before income taxes** | **(37981)** |
| **Income tax benefits** | **328228** |
| **Net Income** | $**290247** |
| **Other comprehensive income** |  |
| **Foreign currency translation adjustment** | **40898** |
| **Comprehensive income** | $**331145** |

---

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

**ENOVUM DATA CENTERS CORP.**

**STATEMENT OF SHAREHOLDERS'**

**EQUITY**

**For the Period Ended September 30, 2024**

**(Expressed in U.S. dollars, except for the number of shares)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Shares** | **Preferred Shares** | **Common Shares** | **Common Shares** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Par Value** |<br>**Additional**<br>**paid –in**<br>**capital** |<br>**Accumulated**<br>**Deficit** | **Accumulated**<br>**Other**<br>**comprehensive**<br>**loss** |<br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance, December 31, 2023** | **-** | **-** | **9621000** | $**2179248** |  | $**(433006)** | **-** | **1746242** |
| Exchange of common shares for preferred shares due to tax reorganization | 9621000 | 2179248 | (9621000) | (2179248) |  |  |  |  |
| Issuance of common and preferred shares pursuant to tax reorganization | 6 | 18 | 9621000 | 71 |  |  |  | 89 |
| Net income | - | - | - | - |  | 290247 | 40898 | 331145 |
| **Balance, September 30, 2024** | **9621066** | **2179266** | **-** | $**71** |  | $**(142759)** | $**40898** | **2077476** |

---

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

**ENOVUM DATA CENTERS CORP.**

**STATEMENT OF CASH FLOWS**

**For the Period Ended September 30, 2024, (Expressed in US dollars)**

---

| | |
|:---|:---|
|  | **2024** |
| **Cash Flows from Operating Activities:** |  |
| **Net income** | $290247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Depreciation and amortization expenses** | 789172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred tax benefits** | (328228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Foreign currency translation adjustment** | 5522 |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities:** |  |
| &nbsp;&nbsp;&nbsp;**Operating lease right-of-use assets** | (3341816) |
| &nbsp;&nbsp;&nbsp;**Deferred revenues** | 101577 |
| &nbsp;&nbsp;&nbsp;**Lease liability** | 3319058 |
| &nbsp;&nbsp;&nbsp;**Other current assets** | (353111) |
| &nbsp;&nbsp;&nbsp;**Other non-current assets** | (121014) |
| &nbsp;&nbsp;&nbsp;**Accounts receivable** | (582114) |
| &nbsp;&nbsp;&nbsp;**Accounts payable** | 1749068 |
| &nbsp;&nbsp;&nbsp;**Other payables and accrued liabilities** | (45935) |
| &nbsp;&nbsp;&nbsp;**Unearned revenues** | 412998 |
| **Net Cash Provided by Operating Activities** | **1895424** |
| **Cash Flows from Investing Activities:** |  |
| **Purchases of and deposits made for property, plant and equipment** | (4513353) |
| **Proceeds from sales of property and equipment** | - |
| **Net Cash Used in Investing Activities** | **(4513353)** |
| **Cash Flows from Financing Activities:** |  |
| **Net change in bank indebtedness** | 559373 |
| **Increase in long-term borrowings** | 5138989 |
| **Repayment of long-term debt** | (539507) |
| **Repayment of finance lease liability** | (217222) |
| **Decrease in due to related parties** | (2323841) |
| **Issuance of capital stock** | 122 |
| **Net Cash Provided by Financing Activities** | **2617914** |
| **Net decrease in cash, cash equivalents** | (15) |
| **Effect of exchange rate changes on cash, cash equivalents** |  |
| **Cash, cash equivalents, beginning of period** | 15 |
| **Cash and cash equivalents, end of period** | $- |

---

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

**ENOVUM DATA CENTERS CORP.**

**NOTES TO FINANCIAL STATEMENTS**

**1. ORGANIZATION AND PRINCIPAL ACTIVITIES**

Enovum Data Centers Corp. ("Enovum" or the "Company"), is a company incorporated under the Canada Business Corporations Act on July 13, 2023.

The Company designs, develops, and operates HPC data centers, through which we offer our hosting and colocation services. Our data centers meet the requirements of the Tier-3 standard, including power redundancy, concurrent maintainability, multiple power feeds, uninterruptible power supply, highly reliable cooling systems, and strict monitoring and management systems.

Our revenues are from providing colocation services to our customers through use of physical space, power, cooling within the data center facility.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of presentation and adoption of US GAAP***

Effective January 1, 2024 the Company adopted accounting principles generally accepted in the United States of America ("U.S. GAAP") as its reporting framework. As a result, these accompanying financial statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").

Prior to this date, the Company prepared its financial statements in accordance with Accounting standards for private entities ("ASPE"). Consequently, no comparative financial information is presented, as the Company has elected not to restate prior period results in accordance with transition provisions applicable to first-time adopters of US GAAP.

***Use of estimates***

 ****

In preparing the financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and 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. These estimates are based on information as of the date of the financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of useful lives of property, plant, and equipment, impairment of long-lived assets, intangible assets and valuation of assets and liabilities acquired in business combinations, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates.

***Fair value of financial instruments***

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

● Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

● Level 3 - inputs to the valuation methodology are unobservable.

The fair value of the Company's other financial instruments including cash and cash equivalents, cash, loans receivable, deposits, accounts receivables, other receivables, accounts payable, and other payables, approximate their fair values because of the short-term nature of these assets and liabilities. Non-financial assets, such as intangible assets and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset's projected undiscounted cash flows. These assets are recorded at fair value only upon recognition of an impairment charge.

***Cash and cash equivalents***

 ****

Cash includes cash on hand and demand deposits in accounts maintained with commercial banks. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents.

***Accounts Receivable***

 ****

Accounts receivable consist of amounts due from our customers. Receivables are recorded at the invoiced amount less an allowance for any potentially uncollectable accounts under the current expected credit loss ("CECL") impairment model and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. In accordance with ASC 326, Measurement of Credit Losses on Financial Instruments ("ASC 326"), the Company evaluates the collectability of outstanding accounts receivable balances to determine an allowance for credit loss that reflects its best estimate of the lifetime expected credit losses. Uncollectible accounts are written off against the allowance when collection does not appear probable.

Due to the short-term nature of the Company's accounts receivable, the estimate of expected credit loss is based on the aging of accounts using an aging schedule as of period ends. In determining the amount of the allowance for credit losses, the Company considers historical collection history based on past due status, the current aging of receivables, customer-specific credit risk factors including their current financial condition, current market conditions, and probable future economic conditions which inform adjustments to historical loss patterns.

As of September 30, 2024, the allowance for credit loss has not been material to the financial statements.

***Property, plant, and equipment, net***

Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets or declining-balance method. The estimated useful lives by asset category are:

---

| | |
|:---|:---|
|  | **Estimated Useful Life** |
| Office equipment | 20% |
| Computer equipment | 30% |
| Infrastructure | 10-15 years |
| Leasehold improvements | 15 years |

---

 **

***Finite-lived intangible Assets***

 **

Intangible assets are recorded at cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets with finite lives are comprised of customer relationships and are amortized on straight-line basis over their estimated useful lives. The Company assesses the appropriateness of finite-lived classification at least annually. Additionally, the carrying value and remaining useful lives of finite-lived assets are reviewed annually to identify any circumstances that may indicate potential impairment or the need for a revision to the amortization period. A finite-lived intangible asset is considered to be impaired if its carrying value exceeds the estimated future undiscounted cash flows expected to be generated from it. We apply judgment in selecting the assumptions used in the estimated future undiscounted cash flow analysis. Impairment is measured by the amount that the carrying value exceeds fair value. The useful lives of customer relationships is 5 years.

***Leases***

The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company's use by the lessor. The Company's assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the statements of operations over the lease term.

For leases with a term exceeding 12 months, an operating lease liability is recorded on the Company's balance sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding operating lease right-of-use asset equal to the initial lease liability is also recorded, adjusted for any prepayment and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment of the associated lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred and not included in the measurement of right-of-use assets and operating lease liabilities.

For the Company's operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For leases with a term of 12 months or less, any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the Company's balance sheet as an accounting policy election. Leases qualifying for the short-term lease exception were insignificant.

***Revenue recognition***

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. Refer to Note 3, Revenue for further information.

***Deferred Revenue***

Deferred revenue primarily pertains to prepayments received from customers for services that have not yet commenced as of September 30, 2024. Deferred revenues are recognized as revenue recognition criteria have been met.

***Remaining performance obligation***

Remaining performance obligations represent the transaction price of contracts for work that have not yet been performed. The amount represents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation.

***Cost of revenue***

The Company's cost of revenue consists primarily of direct production costs related to our colocation services, including electricity costs, lease costs and other relevant costs.

Cost revenue excludes depreciation expenses, which are separately stated in the Company's statements of operations.

***Foreign currency***

 ****

Accounts expressed in foreign currencies are translated into US dollars. Functional currency assets and liabilities are translated into US dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in total shareholders' equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of an entity are remeasured into that entity's functional currency resulting in exchange gains or losses recorded in other income (expense), net.

***Income taxes***

 

We account for current and deferred income taxes in accordance with the authoritative guidance, which requires that the income tax impact is to be recognized in the period in which the law is enacted. Current income tax expense represents taxes paid or payable for the current period. Deferred tax assets and liabilities are recognized using enacted tax rates for the future tax impact of temporary differences between the financial statement and tax bases of recorded assets and liabilities. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on historical and projected future taxable income over the periods in which the temporary differences are expected to be recovered or settled on each jurisdiction.

In accordance with the authoritative guidance on accounting for uncertainty in income taxes, we recognize liabilities for uncertain tax positions based on the two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained in audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

***Commitments and contingencies***

In the normal course of business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

**3. Revenue from Contracts with Customers**

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers* ("ASC 606").

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will *not* occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.

The Company is currently engaged in HPC data center services known as colocation services.

*Colocation services*

Colocation services generated revenue by providing customers with physical space, power cooling within the data center facility.

Our revenue is primarily derived from recurring revenue streams, mainly (1) colocation, which is the leasing of cabinet space and power and (2) connectivity services, which includes cross-connects. Additionally, the remainder of our revenue is from non-recurring revenue, which primarily includes installation services related to a customer's initial deployment.

Revenues from recurring revenue streams are billed monthly and recognized ratably over the term of the contract, generally 1 to 5 years for data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term.

We guarantee certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within our data center, we would reduce revenue for any credits or cash payments given to the customer.

*<u>Deferred Revenue</u>*

Deferred revenue primarily pertains to prepayments received from customers for services that have not yet commenced as of September 30, 2024:

---

| | |
|:---|:---|
|  | **For the<br> Period<br> Ended<br> September 30,<br> 2024** |
| **Beginning balance** | $**190159** |
| Revenue earned | (937512) |
| Prepayment received | 1452086 |
| **Ending balance** | $**704733** |

---

 

*<u>Remaining performance obligation</u>*

The following table presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation as of September 30, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2025** | **2026** | **2027** | **2028** | **Total** |
| Colocation services | $1424527 | $6254494 | $3523224 | $807386 | $20598 | $12030229 |
| Installation services | 44557 | 175999 | 71124 | 5441 | 983 | 298104 |
| &nbsp;&nbsp;Total contract liabilities | $1469084 | $6430493 | $3594348 | $812827 | $21581 | $12328333 |

---

**4. LEASES**

***Lease as Lessee***

On October 9, 2023, the Company entered into a facility lease agreement for its operations of site MTL1 office in Montreal, Canada. The initial lease term is fifteen years with automatic renewals for successive terms of five years and an additional five years.

As of September 30, 2024, operating right-of-use assets were $3.3 million and operating lease liabilities were $3.6 million. For the period ended September 30, 2024, the Company's amortization on the operating lease right-of-use assets totaled $nil.

They Company has engaged into finance lease agreements for computer equipment and infrastructure equipment. These leases are guaranteed by the shareholders of the Company and by a company owned by shareholders.

Additional information regarding the Company's leasing activities as a lessee is as follows:

---

| | | |
|:---|:---|:---|
| **For the Period Ended September 30, 2024** | **Finance lease** | **Operating<br> lease** |
| Cash outflows | $340403 | $211813 |
| Remaining lease term | 3 to 24 | 260 |
| Discount rate | % 2.69 to 17.13 | %7.5 |

---

The following table represents our future minimum finance and operating lease payments as of September 30, 2024:

---

| | | |
|:---|:---|:---|
| **Year** | **Finance<br> lease<br> amount** | **Operating<br> lease<br> amount** |
| 2024 | $79076 | $71801 |
| 2025 | 227888 | 291393 |
| 2026 | 44197 | 298573 |
| 2027 and thereafter | - | 6971169 |
| Total undiscounted lease payments | 351161 | 7632936 |
| Less present value discount | (10758) | (4001073) |
| Present value of lease liability | $**340403** | $**3631863** |

---

 

**5. PROPERTY, PLANT, AND EQUIPMENT, NET**

Property, plant, and equipment, net was comprised of the following:

---

| | |
|:---|:---|
|  | **September 30,<br> 2024** |
| Leasehold improvements | $2077376 |
| Office equipment | 22956 |
| Computer equipment | 140695 |
| Infrastructure | 9328171 |
| Less: Accumulated depreciation | (751733) |
|  | 10817465 |
| Construction in progress | 1347329 |
| **Property, plant, and equipment, net** | $12164794 |

---

For the period ended September 30, 2024, depreciation expenses were $598,031. Construction in progress represents assets received but not placed into service as of September 30, 2024.

**6. INTANGIBLE ASSETS**

<u>Finite-lived intangible assets</u>

The Company recorded an identified intangible asset, customer relationships, with a definite useful life of 5 years in the amount of $343,370.

The following table presents the Company's finite-lived intangible assets as of September 30, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of September 30, 2024** | **As of September 30, 2024** | **As of September 30, 2024** |
|  | **Cost** | **Accumulated amortization** | **Net** |
| Customer relationships | 343370 | (68674) | 274696 |
| Total | 343370 | (68674) | 274696 |

---

The following table presents the Company's estimated future amortization of finite-lived intangible assets as of September 30, 2024:

---

| | |
|:---|:---|
| 2024 | $17168 |
| 2025 | 68674 |
| 2026 | 68674 |
| 2027 | 68674 |
| 2028 | 51506 |
| **Total** | $274696 |

---

**7. REVOLVING CREDIT FACILITIES**

The Company has a $852,000 revolving line of credit that is reviewed annually with the bank. As at September 30, 2024, $559,373 has been drawn. The balance of this revolving credit will fluctuate during the borrowing period. An amount of $81,000 of the facility is reserved for the landlord of the Company though a standby letter of credit as per the operating lease agreement.

Any unpaid bank advances are repayable on demand, bear interest at the financial institution's base rate plus 1% and are secured by the following:

The revolving credit facility is collateralized as a moveable and immovable hypotec in the amount of $7,316,000.

Personal guarantee by the shareholders

Credit cards authorized in the amount of $111,000. These credit cards are secured by the above-mentioned guarantees.

The Company is required to comply with certain covenants that are starting December 31, 2024. Presently there are no covenants in effect.

**8. OTHER PAYABLES**

Other current payable were comprised of the following:

---

| | |
|:---|:---|
|  | **September 30,<br> 2024** |
| Accrued liabilities | $399281 |
| Accrued interest | 22215 |
| Salaries and vacation payable | 71584 |
| **Total** | $**493080** |

---

**9. LONG-TERM DEBT**

---

| | |
|:---|:---|
|  | **September 30, <br> 2024** |
| Term loan granted up to an amount of $5,775,900, guaranteed by universality of the movable property and by the shareholders' guarantee, repayable in monthly installments of $68,761 including principal and interest at the prime rate plus 3.50%, maturing in May 2027 | $5138990 |
| Repaid during the year | 68761 |
| Current portion | $**5070229** |

---

The long-term debt principal repayments required during the next three years are estimated as follows:

---

| | |
|:---|:---|
| **Year** | **Amount** |
| 2025 | $825127 |
| 2026 | 825127 |
| 2027 | 3419975 |
|  | $**5070229** |

---

**10. SHARE CAPITAL**

<u>Description of Stated Share Capital</u>

An unlimited number of shares with no par value in each of the following classes:

Common shares, participating, voting

Start-up common shares, participating, voting

Class D Shares, 12% non-cumulative dividend calculated on surrender value, redeemable at option of the holder to the amount of the paid-up capital

The articles of incorporation of the Company authorize the issuance of other classes of shares with the characteristics defined therein.

Shares redeemable at option of the holder presented as part as current liability.

---

| | |
|:---|:---|
|  | **September 30,<br> 2024** |
| 1,218,354 class "D" preferred shares | $902191 |

---

---

| | |
|:---|:---|
| **Shares presented as equity** | **Par Value** |
| 9,621,000 common shares | $71 |
| 3,000,000 class E shares | 2179200 |
| 6,621,000 class F shares | 48 |
| 6 class P shares | 18 |
|  | $**2179337** |

---

The Company controlled by shareholders' waived in writing its right to demand the redemption of the class "D" preferred shares until October 1, 2025. As a result, the amount owing has been presented as a long-term liability.

**11. INCOME TAXES**

The components of income before income taxes were as follows:

---

| | |
|:---|:---|
|  | **For the <br> period ended<br> September 30,<br> 2024** |
| Domestic income before income taxes | $(37981) |
| Foreign income before income taxes | $- |
| **Total income before income taxes** | $**(37981)** |

---

The provision for income taxes was comprised of the following:

---

| | |
|:---|:---|
|  | **For the<br> period ended<br> September 30,<br> 2024** |
| Current: |  |
| &nbsp;&nbsp;&nbsp;Federal | $- |
| &nbsp;&nbsp;&nbsp;Provincial | $- |
| Total current income taxes | $- |
| Deferred: |  |
| &nbsp;&nbsp;&nbsp;Federal | $(23050) |
| &nbsp;&nbsp;&nbsp;Provincial | $7200 |
| Total deferred income taxes | $(15850) |
| **Total Income Tax Provision/(Benefit)** | $**(15850)** |

---

The significant components of deferred income tax assets and liabilities were as follows:

---

| | |
|:---|:---|
|  | **For the<br> period ended<br> September 30,<br> 2024** |
| **Deferred tax assets:** | |
| &nbsp;&nbsp;&nbsp;Net operating losses carry forwards | $782157 |
| &nbsp;&nbsp;&nbsp;Basis difference in intangible | 28489 |
| &nbsp;&nbsp;&nbsp;Lease liability | 435823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross deferred tax assets | 1246469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: valuation allowance | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets | 1246469 |
| **Deferred tax liabilities:** |  |
| &nbsp;&nbsp;&nbsp;Right of use asset | $(401018) |
| &nbsp;&nbsp;&nbsp;Basis difference in fixed assets | (829601) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Deferred Tax Liabilities | (1230619) |
| **Total net deferred tax assets/(liabilities)** | $**15850** |

---

As of September 30, 2024, we had Canadian federal, provincial net operating loss ("NOL") carry-forwards of $4 million, $4 million respectively. The NOL carry-forwards does not expire and the state NOL will expire at various dates beginning in 2043.

**12. RELATED PARTIES**

During the year and in the normal course of business, the Company generated sales of $291,541 and incurred recharged operating expenses from Nworks Management Corp. (doing business as GloboTech Communications), a company controlled by shareholders.

**13. CONTINGENCIES**

***Legal Proceedings***

The Company from time to time may become involved in legal proceedings in the ordinary course of our business. The Company may also pursue litigation to assert its legal rights and assets, and such litigation may be costly and divert the efforts and attention of its management and technical personnel which could adversely affect its business. Due to the uncertainty of litigation and depending on the amount and the timing, an unfavorable resolution of some or all of such matters may materially affect our business, results of operations, financial position, or cash flows.

Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, U.S. GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated.

**14. FINANCIAL INSTRUMENTS**

*Credit risk*

Credit risk is the risk that one party to a financial asset will cause a financial loss to the Company by failing to discharge an obligation. The Company's credit risk is mainly related to its trade accounts receivable.

The Company provides credit to its clients in the normal course of its operations. As of September 30, 2024, approximately 85% of trade accounts receivable are receivable from three customers.

*Liquidity risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company is exposed to this risk mainly in respect of its trade accounts payable, due to related parties, long-term debt and shares redeemable at the option of the holder presented as liabilities.

*Interest rate risk*

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates. The Company is mainly exposed to interest rate risk in respect of the cash flows associated with its floating rate long-term debt. Floating rate instruments subject the Company to related cash flow risk.

**15. SUBSEQUENT EVENTS**

On October 11, 2024, the Company sold all its outstanding shares to 16428380 Canada Inc. for a consideration of $43,834,313.

## Exhibit 99.3

**Exhibit 99.3**

**Consent to be Named as a Director Nominee**

In connection with the filing by White Fiber, Inc. of the Registration Statement on Form S-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of WhiteFiber, Inc. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

Dated: May 30, 2025

---

| |
|:---|
| /s/ Pruitt Hall |
| Pruitt Hall |

---

## Ex-Filing

**Exhibit 107** 

**Calculation of Filing Fee Table** 

**Form S-1**

(Form Type)

**WhiteFiber, Inc.** 

(Exact Name of Registrant as Specified in its Charter)

**Table 1: Newly Registered Securities** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security<br> Type** | **Security Class Title** | **Fee<br> Calculation** | **Amount<br> Registered** | **Proposed<br> Maximum<br> Offering<br> Price<br> Per Unit** | **Maximum<br> Aggregate<br> Offering<br> Price(1)(2)** | **Fee<br> Rate** | **Amount of<br> Registration<br> Fee** |
| Fees to Be Paid | Equity | Ordinary Shares, par value $0. 01 per share | 457(o) |  |  | $100000000.00 | 0.00015310 | $15310.00 |
|  | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts |  | $100000000.00 |  | $15310.00 |
|  | 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 |  |  |  |  |
|  | Net Fee Due | Net Fee Due | Net Fee Due | Net Fee Due |  |  |  | $15310.00 |

---

(1) Estimated solely for the purpose
of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

(2) Includes the aggregate offering
price of additional shares that the underwriters have the option to purchase.